The document discusses Organizational Development (OD), which is a systematic process aimed at enhancing an organization's capability to manage change and increase effectiveness through behavioral science techniques. It highlights the characteristics, goals, and methods of OD, emphasizing the importance of planned change, feedback, and the role of change agents in facilitating organizational transformation. The document further addresses the forces driving change, resistance to change, and the steps involved in successful change management.

1. CP – 207
ORGANIZATION
EFFECTIVENESS & CHANGE
A PRESENTATION BY
PRASHANT MISHRA
ASSISTANT PROFESSOR

2. Unit I
● Overview and Concept Of Organizational Change.
● Development Forces of Change.
● Resistance to Change.
● Process and Management of Change.
● Change Agents
● Organizational Effectiveness
I. Concept
II. Approaches
III. Control.
SYLLABUS

3. ★ Organization development (OD) is the study and implementation of practices, systems, and
techniques that affect organizational change.
★ The goal of which is to modify an organization's performance and/or culture. The organizational
changes are typically initiated by the group's stakeholders.
★ Organizational development is a critical and science-based process that helps organizations build their
capacity to change and achieve greater effectiveness by developing, improving, and reinforcing
strategies, structures, and processes.
★ Organization development as a practice involves an ongoing, systematic process of implementing
effective organizational change.
★ OD is both a field of applied science focused on understanding and managing organizational change
and a field of scientific study and inquiry.
★ It is interdisciplinary in nature and draws on sociology, psychology, particularly industrial and
organizational psychology, and theories of motivation, learning, and personality.
INTRODUCTION TO ORGANIZATIONAL DEVELOPMENT

4. CONTD…
 Organization development is an ongoing, systematic process of implementing effective organizational
change.
 OD is known as both a field of science focused on understanding and managing organizational change
and as a field of scientific study and inquiry.
 It is interdisciplinary in nature and draws on sociology, psychology, and theories of motivation,
learning, and personality.
 Experts in systems thinking and organizational learning, structure of intuition in decision making, and
coaching (to name a few) whose perspective is not steeped in just the behavioral sciences, but a much
more multi-disciplinary and inter-disciplinary approach, have emerged as OD catalysts or tools.
 Organization development is a growing field that is responsive to many new approaches

5. ● OD emerged out of human relations studies from the 1930s where psychologists
realized that organizational structures and processes influence worker behaviour and
motivation.
● Lewin's work in the 1940s and 1950s also helped show that feedback was a valuable
tool in addressing social processes.
● More recently, work on OD has expanded to focus on aligning organizations with
their rapidly changing and complex environments through organizational learning,
knowledge management and transformation of organizational norms and values.
HISTORY OF OD

6. CHARACTERISTICS OF OD
● Planned Change: Organizational development (OD) is an educational strategy for bringing about
planned change. Planned change concept makes it different from other approaches for change in
organisations.
● Attention on the Whole Organisation: This change covers the entire organisation. Organizational
Development is the development of the whole organisation so that it can respond to change
effectively. OD tends to ensure that all parts of the organisation are well coordinated in order to
solve the problems and opportunities that are brought by change.
● Long Range Change: OD is a long term process. It may take months or years to implement it. OD is
never intended to be a stopgap arrangement or measure. O.D. is a long term approach (of 3 to 5
years period) and is meant to elevate the organization to a higher level of functioning by improving
the performance and satisfaction of organization members.
● Systems Orientation: OD is concerned with the various groups in the organisation and their
interactions with each other. It is concerned with formal as well as informal or social relationships.
It is concerned with group structures, processes and attitudes. OD emphasizes on the relationships
among the groups not on the groups themselves.

7. CONTD…
● Action research : It entails what its name describes – research and action. Action research is the process of
systematically collecting research data about an ongoing system relative to some objective, goal or need of that
system. Feeling these back into the system, taking actions by altering selected variables within the system based
both on the date and on the date and on hypotheses and evaluating the results of actions by collecting more data.
● Problem Solving: OD emphasizes on problem solving rather than just theoretical discussion of the problems. The
focus on real, ongoing problems rather than the theoretical or artificial ones is called actions research. Action
research is a very important feature of OD. Sometimes, OD is called organisational improvement through action
research.
● Experiential learning: or learning through experience: In the traditional approaches, training was provided to the
people by lecture and discussion method, in which people talk about only abstract ideas. But in OD, particularly learn
by experiencing in the training environment the kind of human problems they face on the job. This approach tends to
produce more changed behaviour than the traditional approach. Theory is also necessary and desirable, but the
ultimate test is how it applies in real practice. These answers are provided by OD.
● Collaborative Management: In contrast to the traditional management structure where orders are issued at upper
levels and simply carried out by low levels, OD stresses collaboration among levels. In OD, organizations are viewed
in a systems perspective

8. CONTD…
● Group Process: In OD, an effort is made to improve interpersonal relations, open communication
channels, build trust and encourage responsiveness to others. For this OD relies on group
processes like group discussions, inter group conflicts, confrontations and procedures for co-
operations.
● Organizational Culture: OD assumes that the culture of every organisation is different from the
culture of the other organizations. The assumption that a particular solution can be applied to the
problems of all the organization is generally not made in OD. Instead the culture of each
organisation must be understood and relations consistent with culture be developed.
● Feedback: In OD, feedback is given to all the participants about themselves, which provides them a
basis for their next activities. They generally base their decisions on this concrete data. With the
help of feedback of information, employees will be encouraged to understand a situation and take
self corrective action before somebody else tells them what to do.
● Situational and Contingency Oriented: OD is flexible and pragmatic, adapting the actions to fit
particular needs. Although some occasional OD change agent may have to impose a single best
way on the group, there is, usually, open discussion of several better alternatives rather than a
single best way.

9. ★ Organization Development (OD) is a planned process of change in an organization’s culture
through the utilization of behavioral science technology, research, and theory.
★ OD refers to a long-range effort to improve an organization’s problem-solving capabilities and
its ability to cope with changes in its external environment with the help of external or internal
behavioral-scientist consultants.
★ OD is an effort:
● (1) planned,
● (2) organization-wide, and
● (3) managed from the top, to
● (4) increase organization effectiveness and health through
● (5) planned interventions in the organization’s “processes,”
using behavioral science knowledge.
DEFINITIONS

10. ● It is a combination of two words:
ORGANIZATIONAL CHANGE
ORGANIZ
ATION
CHANGE
ORGANIZATIONAL
CHANGE
In any organization, we have
people engaged in production,
research, development,
administration, etc.
The organization in order to
change should prepare a stock of
the situation and should effect
change in their attitude and style
of functioning.
Change is a part of life and
provides opportunity for growth. It
is a conscious decision by the
management of organization.

11. MEANING
● It refers to the process of growth, decline and transformation within the
organization.
● Organizations may change their strategy or purpose, introduce new products
or services, change the way they produce and sell, change their technology,
enter new markets, close down departments or plants, hire new employees,
acquire other organizations become acquired by other organizations and
what not.
● In doing so, they may turn larger, smaller or stay the same in terms of size.

12.  According to a paper by Markus Wanner: “Change management is an organized,
systematic application of the knowledge, tools, and resources of change that provides
organizations with a key process to achieve their business strategy.”
Mr. John Bull defines it as “when an organization system is disturbed by some internal as
well as external forces.
DEFINITION

13. TYPES OF ORGANIZATIONAL CHANGE
● Reactive Changes:
● Reactive changes occur when forces compel organization to implement change
without delay. In other words, when demands made by the forces are compiled in a
passive manner, such a change is called reactive change.
● Proactive Changes:
● Proactive changes occur when some factors make realize organization think over and
finally decide that implementation of a particular change is necessary. Then, the
change is introduced in a planned manner.

14. CHARACTERISTICS OF OC
 Organizational development (change) is a planned strategy to bring about
organizational change
 It involves collaborative approach to change
 It relies on a set of humanistic values about people and organizations
 It is a system approach
 It is based on scientific approaches to increase organizational effectiveness
 It is a strategy for change that intervenes in the human and social process in
the organization

15. CHANGE IS THE LAW OF NATURE
CHANGE IS RESISTED BY MAN
CHANGE LEADS TO DEVELOPMENT
CHANGE HAS AN ELEMENT OF
UNCERTAINITY
CHANGE REQUIRES CHANGE
AGENTS
CHANGES TAKE PLACE DUE TO TWO
FORCES
CHANGE IINCLUDES PROACTIVE AND
REACTIVE CHANGE
LAWS OF OC

16. OBJECTIVES OF OD
 To increase the level of trust and mutual emotional support among all
organizations members
 To increase the incidence of confrontation(face to face meeting / an act of
opposing) of organizational problems both within group and among group
 To create an environment in which authority of assigned roles is
augmented(having been made greater in size or value) by authority based on
knowledge and skills
 To increase the openness of communication, laterally, vertically and diagonally
 To find synergetic(a combined effect greater than the sum of their separate
effects.) solutions to problems with greater frequency
 To increase the level of enthusiasm and personal satisfaction in the organization
 To increase the level of group and self responsibility in planning and
implementation

18. MEANING:
● When changes are effected after working out when and how they will be
carried out, planned changes occur.
● For initiating planned change, the manager needs to constantly watch the
changes taking place in the external and internal environment of the business
so that corrective measures are taken accordingly and the changes could be
effected successfully.

19. IMPORTANCE OF PLANNED CHANGE
○ Increased productivity: Planned change help increase productivity and service ability. On the other
hand, change without plan might not help that much to increase productivity.
○ Enhancement of quality: Enhancement of quality deserves planned change in an organization. Quality
of the goods is the condition of success of the organization.
○ Facing competition: If change process starts in a planned way that can help face competition
successfully. Otherwise it may be difficult.
○ Technological change: Planned change can also help in technological change, which type of
technology is to be installed, that decision is supposed to take through a proper plan.
○ Customer satisfaction: Customer satisfaction is one of the prime objectives of the organizations.
That satisfaction can also be increased and retained in a planned way.
○ Expansion of market: Every organization wants to expand its business. This expansion program
should be taken with effective plan.
○ Satisfaction of owners: Owners and managers satisfaction is one of the prime implied objectives of
establishing organization. This objective may be achieved, if it is tried in a planned way.
○ Complying with laws: Some changes take place in compliance with law provisions. In honor of law
provisions, change is initiated.
○ Development of manpower: Manpower training and development is a continuous process. If this
process is undertaken in a planned way that can help the organization to gain long term benefits.

20. CORE VALUES & CONCEPTS
Underlying Organization Development are humanistic values. Margulies and Raia (1972) articulated
the humanistic values of OD as follows:
1) Providing opportunities for people to function as human beings rather than as resources in the
productive process.
2) Providing opportunities for each organization member, as well as for the organization itself, to develop
to his full potential.
3) Seeking to increase the effectiveness of the organization in terms of all of its goals.
4) Attempting to create an environment in which it is possible to find exciting and challenging work.
5) Providing opportunities for people in organizations to influence the way in which they relate to work,
the organization, and the environment.
6) Treating each human being as a person with a complex set of needs, all of which are important in his
work and in his life.

22. FORCES OF CHANGE
NATURE OF THE WORKFORCE
More cultural diversity
Aging population and many new entrants with limited skills
TECHNOLOGY
Faster, cheaper, more mobile computers
Understanding and manipulating the genetic code
ECONOMIC SHOCKS
Stock market fluctuations
Record low interest rates
COMPETITION
Global competitors
Mergers, consolidations, and growth of e-commerce
SOCIAL TRENDS
Internet chat rooms
Retirement of Baby Boomers and more “Singles”
WORLD POLITICS
War on terrorism
Opening of markets in China
PERFORMANCE GAPS
Disappointing results
Stockholder expectations

23. REASON FOR RESISTANCE FOR CHANGE
● Habits, belief, customs & values
● Security
● Destroy public image
● Increase the discipline in workplace
● Through them out of employment
● Reason for change is unclear
● Lack of proper communication about change

24. CONTD…
VESTED INTERESTS THREATENED
ECONOMIC LOSS --- LOSS OF WAGES, LAYOFFS
SOCIAL LOSS --- STATUS AND POWER ERODED
INCONVENIENCE --- HABITS MUST CHANGE
INTERPERSONAL DISRUPTIONS --- IT WILL BREAK UP THE GROUP
LACK OF TRUST
WHAT ARE MANAGEMENT’S TRUE INTENTIONS?
PAST INCIDENTS WHERE THE COMPANY TOOK UNFAIR ADVANTAGE
UNCERTAINTY & AMBIGUITY
MISUNDERSTANDING OF THE PURPOSE FOR CHANGE
A FEAR OF THE UNKNOWN
PEOPLE WITH LOW TOLERANCE FOR CHANGE OR RISK
PREVIOUS COMMITMENT TO THE STATUS QUO
INFORMAL AGREEMENTS AMONG WORKERS
CONTRACTS
PROMISES WERE MADE

25. DEALING WITH RESISTANCE TO CHANGE
EDUCATE & COMMUNICATE
DISCUSSION, DEMONSTRATION & PERSUASION
PARTICIPATION & INVOLVEMENT
INPUT & ADVICE FROM AFFECTED PARTIES
NEGOTIATION & AGREEMENT
OFFERING INCENTIVES FOR COOPERATION
FACILITATION & SUPPORT
PROVIDING TRAINING, HELP & ENCOURAGEMENT WHEN NEEDED
MANIPULATION & COOPTATION
COVERT ATTEMPTS TO INFLUENCE (LITTLE LIES & POWER GAMES)
EXPLICIT & IMPLICIT COERCION
USE OF FORCE, THREATS & PUNISHMENT

26. PROCESS OF CHANGE MANAGEMENT
The change management process is the sequence of steps or activities that a
change management team or project leader would follow to apply change
management to a project or change. Based on Prosci's research of the most
effective and commonly applied change, they have created a change
management process that contains the following three phases:
● Phase 1 - Preparing for change (Preparation, assessment and strategy
development)
● Phase 2 - Managing change (Detailed planning and change management
implementation)
● Phase 3 - Reinforcing change™ (Data gathering, corrective action and
recognition)

27. PROCESS FOR CHANGE
Problem recognition
Identify causes of problem
Planning the change
Implementing the change
Generating motivation for
change
Supporting change
Evaluating change

28. EXPLANATION…
1) Problem recognition
Every change started as a consequence of need for need to be arise problem must be
recognize problem recognition can identify the area of attention for change
2) Identify causes of problem
After identifying the problem the next step will be to identify the causes of problem on
which change can be plan & implement
3) Planning the change
Next step will be to plan how change can be introduce in the organization to remove that
causes it include preparing a framework for the change before implementing it &
providing basic information & communication about change requirement.
 Informing top management about problem & causes
 Discussion with employee
 Providing better compensation system with non- monetary rewards & good incentives

29. CONTD…
 providing necessary system to implement the plan & providing information for it.
 deciding criteria for evaluation of plan
4) Implementing the change
Implement it by the defined system. All related responsibilities must be fulfilled by
concerned person while implementing the change
5) Generating motivation for change
Sometimes employee or management are not aware or they fear of possible charges as a
result of low security, habit, less information perception etc.
6) Supporting change
This include providing suitable system structure processes which can support the change
7) Evaluating the change
It include to find out whether problem for which change is made is removed or not. What
effects does it causes on individual on which change is implemented

30. LEWIN’S PROCESS FOR CHANGE
Old State
Unfreeze
(Awarenes
s of need
for
change)
Change
(
Movement
from old
state to
new state)
Refreeze
(Assurance
of
permanent
change)
New state

31. THE ORGANIZATIONAL DEVELOPMENT
CYCLE
INITIAL
DIAGNOSI
S
DATA
COLLECTIO
N
TEAM
BUILDIN
G
ACTION
PLANNIN
G
INTERGRO
UP
DEVELOPM
ENT
FEEDBACK
&
CONFRONT
ATION
EVALUATION FOLLOW UP

32. CHANGE AGENT
Change Agent: The services of outside experts are obtained, generally, to implement the OD
process. In OD, “Do it yourself” programs are discouraged. When the primary change agent is a
consultant from outside the organisation, he can operate independently without ties to the
organizational hierarchy and politics of the organisation. The personnel director is the internal agent
of the organisation who coordinates the programme with the management and the external agent.
As the external agent also works with the management, there is a three way relationship of the
personnel director, management and the outside consultant as they develop the OD programme.
Very rarely, an internal change agent is used by the organisation, who usually is a specialist on the
personnel staff.

33. SKILLS FOR CHANGE AGENT
1) Analytical & Diagnostic skill
2) Interpersonal skill
3) Technical skill
4) Communication skill
5) Problem-Solving skill
6) Negotiating skill
7) Personality

34. EFFECTIVENESS & EFFICIENCY
Efficiency:
Takes into account the amount of resources used to produce the desired
output.
Effectiveness:
● The degree to which objectives & goals are achieved and the extent to
which targeted problems are solved.
● Effectiveness means "doing the right thing."

35. ORGANIZATIONAL EFFECTIVENESS
● Organizational effectiveness is the concept of how effective an
organization is in achieving the outcomes the organization
intends to produce.
● The idea of organizational effectiveness is especially important
for non-profit organizations as most people who donate money
to non-profit organizations and charities are interested in
knowing whether the organization is effective in accomplishing
its goals.

36. HISTORICAL VIEW
Effectiveness was determined by factors such as:-
○ Production maximization
○ Cost minimization
○ Technological excellence
Frederick Taylor

37. HISTORICAL VIEW
Effectiveness is a function of:-
• Clear authority
• Discipline within an organization
Henri Fayol

38. CONTD…
Effectiveness is a function of:-
• Productivity
• Employee satisfaction
Elton Mayo

39. Low Goal Attainment
Low Use of
Resources
Low Goal Attainment
High Use of
Resources
High Goal Attainment
High Use of
Resources
High Goal Attainment
Low Use of
Resources
Low
High
EFFECTIVENESS
Low
High
EFFICIENCY
EFFECTIVENESS & EFFICIENCY IN ORGANIZATION

40. APPROACHES TO ORGANIZATIONAL EFFECTIVENESS
● Goal Attainment Approach
● Systems Approach
● Strategic Constituencies Approach
● Competing Values Approach

41. GOAL ATTAINMENT APPROACH
● Effectiveness is the ability to excel at one or more output goals.
● The Goal Attainment Approach states that an organization’s effectiveness
must be appraised in terms of the accomplishment of ends rather than
mean.
● It is the bottom line that counts.
○ Based on the identification of goals and the achievement of those
goals
○ Goals must be…
■ Clearly identifiable
■ Consensual (formed by mutual consent, accepted, agreed)
■ Measurable
■ Time-bound

42. SYSTEM APPROACH
• Here end goals are not ignored; but they are only one element in a more
complex set of criteria.
• Systems models emphasize criteria that will increase the long term survival of
the organization such as:
1. Its ability to acquire resources, maintain itself internally as a social organism &
interact successfully with its external environment.
2. So, this approach focuses not so much on specific ends as on the means
needed for the achievement of those ends.

43. STRATEGIC – CONSTITUENCIES APPROACH
● Effectiveness is the ability to satisfy multiple strategic constituencies both within
and outside the organization.
● An effective organization is one that satisfies the demands of those
constituencies in its environment from whom it requires support for its continued
existence.
● It seeks to appease only those in the environment who can threaten the
organization's survival.
For e.g. Private universities and public universities .

44. COMPETING VALUE APPROACH
● The Competing Values Approach is the criteria you value
and use in assessing an organizations effectiveness.