Organization development is the study of successful organizational change and performance. OD emerged from human relations studies in the 1930s, during which psychologists realized that organizational structures and processes influence worker behavior and motivation.

1. Organizational Development
Let’s Start
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2. General Introduction
 This is a course about OD— to help organizations build their
capacity to change.
 Achieve greater effectiveness.
 The focus is on building the organization’s ability to assess its
current functioning and to achieve its goals.
 Moreover, OD is oriented to improving the total system—the
organization and its parts in the context of the larger
environment that affects them.
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3. What is OD?
Organization development is a system wide application and
transfer of behavioral science knowledge to the planned
development, improvement, and reinforcement of the
strategies, structures, and processes that lead to organization
effectiveness.
 It is different from change management and organizational
change.
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4. What is OD?
 OD applies to changes in the strategy, structure, and/or
processes of an entire organization.
 OD is based on the application and transfer of behavioral
science knowledge and practice.
 Two concepts:
Micro concepts (leadership, group dynamics, and work
design).
Macro concepts (strategy, organization design, and
international relations).
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5. What is OD?
 OD is concerned with managing planned change.
 OD involves the design, implementation, and the subsequent
reinforcement of change.
 OD is oriented to improving organizational effectiveness.
 Three dimensions of effectiveness:
• Adaptability
• High financial and technical performance
• Satisfied and loyal customers or other external stakeholders and an engaged,
satisfied, and learning workforce.
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6. OD V/S Change Management
 Both address the effective implementation of planned change.
 Both are concerned with organization’s improvement.
 Difference is in underlying value orientation.
 OD is related to human potential, participation, development,
performance and competitive advantage.
 Change focus on values of cost, quality, and schedule.
• OD’s distinguishing feature is its concern with the transfer of
knowledge and skill so that the system is more able to manage
change in the future. OD involves change management.
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7. Relevance of OD
 Organizations in the midst of unprecedented uncertainty and
chaos.
 A ‘management revolution’ will save them.
 Three major trends: globalization, information technology,
and managerial innovation.
 OD helps organization members go beyond surface changes to
transform.
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8. History of OD
 Five stems of OD Practice
1950 1960 1970 1980 1990 2000 Today
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Laboratory Training
Action Research/Survey Feedback
Normative Approaches
Quality of Work Life
Strategic Management
CURRENTODPRACTICES

9. History of OD
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 Laboratory Training:
• Also known as T-group—a small, unstructured group. (Kurt
Lewin, 1946)
• Feedback about group interaction and process of “group
building” has potential for learning.
• Today, T-group is known by the name of “Team Building”

10. History of OD
 Action Research and Survey Feedback:
• John Collier, Kurt Lewin, and William Whyte (1940s).
• Research needed to be closely linked to action.
• Backbone of many OD applications.
• Likert’s -5 Scale.
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11. History of OD
 Normative Approaches:
• Rensis Likert’s Participative Management style and Blake and
Mouton’s Grid OD program.
• Likert’s 4 systems of management.
• Blake and Mouton’s Grid of 81 possible styles of leadership.
• Both the frameworks are used in organizations today.
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12. History of OD
 Quality of work life:
• Initial focus was on work designs aimed at better integrating
technology and people.
• We got Theory “Z”.
• Work design got supplemented with reward systems, work
flows, management styles, and the physical work environment.
• Emergence of Quality Circles.
• “Employee Involvement” and “Employee Empowerment”.
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13. History of OD
 Strategic Management:
• Alignment among an organization’s environment, strategy, and
organization design.
• Familiarity with competitive strategy, finance, and marketing,
as well as team building, action research, and survey feedback.
• Together, these skills have improved OD’s relevance to
organizations and their managers.
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14. Assumptions and Values
 Assumptions, values and beliefs are integral parts of OD.
 A belief is a proposition about how the world works. (true)
 Values are beliefs about- what is “desirable” and
“undesirable”.
 Assumptions are valuable and correct beliefs taken for granted.
 Values, beliefs and assumptions provide structure and stability
for people.
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15. Assumptions and Values
 OD values tend to be humanistic, optimistic and democratic.
 Humanistic value are about the importance of individuals.
 Optimistic value posit that people are basically good.
 Democratic values assert the sanctity of the individuals.
 Past researches are witness to these values.
 These are formed from zeitgist.
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16. Assumptions and Values
 Early Impetus:
• Warren Bennis- mechanical system v/s organic system.
• Richard Beckhard- emphasis on groups.
• Robert Tannenbaum and Sheldon Davis- shift in values is
continuously occurring.
 Present status:
• With humanistic values- a concern for improving
organizational effectiveness and performance. To optimize both
human benefits and production objectives.
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17. Assumptions and Values
 This is the biggest challenge- a conflict between employees’ needs for
greater meaning and the organization’s need for more effective and
efficient use of its resources.
 Value dilemmas:
• Should efficiency be maximized at the expense of people’s satisfaction?
• Can technology be changed to make it more humanly satisfying while
remaining efficient?
• What compromises are possible?
• How do these trade-offs shift when they are applied in different social
cultures?
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18. Assumptions and Values
Individuals
 Primarily considerations of theory “Y”.
• People have drives towards personal growth and are capable
of making a higher level of contribution.
• Ask, support, challenge, encourage risk taking, permit failure,
remove obstacles, give autonomy and responsibility, set high
standards and reward success.
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19. Assumptions and Values
Groups
 Work group, including peers and boss.
• Let teams flourish.
• Leaders should invest in groups.
• Adopt a team leadership style.
 Help each other.
 Alter mutual relationships.
 View problems and solutions as transactional and embedded
in a system.
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20. Assumptions and Values
Organizational systems
 Traditional hierarchical forms are obsolete.
 “Win-Win” in place of “Win-Lose”.
 Optimistic and developmental set of assumptions about
people.
 “Putting people first”.
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21. Assumptions and Values
Values in client organization
 Increasing efficiency and effectiveness.
 Openness in communication.
 Empowering employees to act.
 Enhancing productivity.
 Promoting organizational participation.
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22. Assumptions and Values
Values of OD Practitioner
 Create change.
 Positively impact people in the organizations.
 Enhance the effectiveness and profitability of
organizations.
 Learn and grow.
 Exercise power and influence.
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23. Assumptions and Values
Values of change agent
 Empowering employees to act.
 Openness in communication.
 Facilitating ownership of process and outcome.
 Promoting a culture of collaboration.
 Promoting inquiry and continuous learning.
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