organizational development

1. Chapter One
TOPICS TO COVERED:
• Introduction to Organizational Development
• Concept of OD
• Key Principles of OD
• Nature Scope of OD
• Historical Perspective of OD
• Assumptions and Values of OD
• Theory and Practice of Change
• Process and Challenges changes in OD
• Nature of Planned Changed
• Nature of Client systems in OD

2. Introduction to Organizational Development
(OD)
Introduction to Organizational Development (OD)
Organizational Development (OD) is a planned, systematic approach aimed at
improving an organization's effectiveness, efficiency, and overall health.
It involves strategies and interventions that enhance structures, culture, and
processes within an organization to achieve sustainable growth and adaptability in
a constantly changing environment.
OD is deeply rooted in behavioral sciences and focuses on improving
interpersonal relationships, communication, leadership, and organizational culture
to foster innovation, employee engagement, and long-term success.

3. Concept of Organizational Development
The concept of OD is based on the idea that organisations are
dynamic systems that must continuously evolve to meet internal and
external challenges. It is a planned and structured process that
applies behavioral science principles to bring about positive
organizational change.
Scenarios:
• If a company is a car, OD is like regular servicing and upgrades to make sure
it runs smoothly.
• If a company is a sports team, OD is like training and strategy changes to
improve teamwork and win more games.
• If a company is a garden, OD is like watering, pruning, and adding fertilizer
so it grows strong and healthy.

4. Key Principles of OD
1.Planned Change – OD is intentional, data-driven, and structured to
improve organizational effectiveness.
2.Systematic Approach – It views organizations as interconnected
systems where changes in one area affect the whole.
3.People-Centered – It focuses on human resources, leadership, and
teamwork to enhance performance.
4.Long-Term Process – OD is not a one-time initiative but a continuous
improvement process.
5.Use of Behavioral Science – OD applies psychology, sociology, and
management theories to improve workplace relationships and efficiency.

5. Nature of Organizational Development
The nature of OD is shaped by its interdisciplinary approach, focus on people and systems, and commitment to
continuous improvement. Below are its key characteristics:
1. Change-Oriented
OD is focused on change, whether it is structural, cultural, technological, or behavioral. It helps organizations adapt to
market trends, technological advancements, and internal challenges.
2. Humanistic Approach
It emphasizes employee development, motivation, and well-being to improve overall organizational effectiveness. OD
fosters a culture of collaboration, trust, and participation.
3. Continuous & Long-Term Process
Unlike short-term change initiatives, OD is an ongoing process aimed at sustaining long-term growth, innovation, and
adaptability.
4. System-Wide Application
OD does not focus on just one department or level of management—it impacts the entire organization, from
leadership to employees and even external stakeholders.
5. Data-Driven & Scientific
• It relies on data collection, feedback mechanisms, and research-based strategies to implement effective
organizational change. Techniques like surveys, interviews, and performance metrics are commonly used.

6. Scope of Organizational Development
• The scope of OD covers a wide range of areas within an organization, including leadership,
culture, performance, and structure. Some key aspects include:
1. Organizational Culture & Climate
• Shaping workplace values, ethics, and norms. Encouraging a positive and inclusive environment
2. Leadership & Management Development
• Training leaders to be more effective and adaptive. Enhancing decision-making and strategic
planning.
3. Employee Training & Development
• Providing skill enhancement programs. Encouraging lifelong learning and career growth.
4. Change Management
• Helping employees adapt to new policies, technologies, and processes. Reducing resistance to
change and fostering innovation.

7. Scope of Organizational Development
cont…
5. Team Building & Employee Engagement
• Encouraging collaboration and teamwork. Boosting morale and motivation through
recognition and rewards.
6. Organizational Structure & Process Improvement
• Optimizing workflows and departmental functions.
• Implementing new technologies for efficiency.
7. Performance Management & Effectiveness
• Setting goals, evaluating progress, and providing feedback.
• Aligning individual and team performance with organizational goals.

8. Historical Perspective of Organizational Development (OD)
Historical Perspective of Organizational Development (OD)
Introduction
• Organizational Development (OD) is a systematic and planned effort to
improve an organization's effectiveness, adaptability, and performance. It
integrates principles from behavioral sciences, management theories, and
change management strategies. The history of OD reflects its evolution
from early scientific management to modern approaches focused on
technology, employee engagement, and continuous learning.

9. Early Foundations (1900s – 1930s): Scientific Management &
Human Relations Movement
Scientific Management (Frederick Taylor, 1911)
Frederick Taylor introduced Scientific Management, which emphasized efficiency
and productivity through standardization and time-motion studies. However, it
largely ignored human factors, leading to dissatisfaction among workers.
Hawthorne Studies (Elton Mayo, 1924-1932)
• Elton Mayo’s research at Western Electric’s Hawthorne plant revealed that
employee productivity is influenced by social relationships, motivation, and
workplace environment. This led to the emergence of the Human Relations
Movement, which emphasized employee well-being and teamwork.

10. Growth of Behavioral Science & OD (1940s – 1960s)
Kurt Lewin & Change Management (1940s - 1950s)
Kurt Lewin, regarded as the father of OD, introduced key concepts such as:
• Action Research – A cycle of problem identification, data collection,
intervention, and evaluation.
• Force Field Analysis – Identifying forces that drive or resist change.
• Three-Step Change Model – Unfreeze → Change → Refreeze, explaining
how organizations undergo transformation.
Group Dynamics & Sensitivity Training (T-Groups) – National Training
Laboratories (NTL, 1947)
• Lewin’s work led to the development of T-Groups (Training Groups), focusing
on interpersonal skills, leadership, and open communication. This laid the
foundation for modern team development and leadership training in OD.

11. Expansion & Systematic OD Approaches (1960s – 1980s)
Emergence of Organizational Development as a Field (1960s)
Scholars like Richard Beckhard, Warren Bennis, and Douglas McGregor developed OD as a
planned, organization-wide effort aimed at improving processes and structures.
• Douglas McGregor (1960) introduced Theory X and Theory Y, emphasizing participative
leadership and employee empowerment.
Sociotechnical Systems (Emery & Trist, 1960s)
The Tavistock Institute (UK) introduced Sociotechnical Systems Theory, which suggests that
organizations should balance technical and social aspects to enhance efficiency and worker
satisfaction.
Learning Organizations & OD Applications (1970s – 1980s)
• Chris Argyris and Donald Schön introduced Organizational Learning, emphasizing
continuous improvement and adaptation. OD interventions like team development,
leadership coaching, and cultural transformation became widely adopted in corporate
settings

12. Modern OD & Contemporary Approaches (1990s – Present)
Systems Thinking (Peter Senge, 1990s)
Peter Senge’s book "The Fifth Discipline" introduced Systems Thinking, advocating that organizations
function as learning systems that continuously improve and adapt.
Technology & Digital Transformation (2000s – Present)
With advancements in digital workplaces, AI, and remote work, OD now focuses on:
• Agile organizational structures (flexibility and adaptability).
• Diversity, Equity & Inclusion (DEI) programs.
• Change management for digital transformation.
Current Trends in OD (2020s & Beyond)
• Employee Experience & Engagement – Emphasis on well-being, mental health, and hybrid work models.
• Sustainability & Corporate Social Responsibility (CSR) – Integrating OD with ethical business practices
and environmental concerns.
• Data-Driven OD – Leveraging AI, HR analytics, and big data for decision-making.

13. Underlying Assumptions and Values of Organizational Development (OD)
• Organizational Development (OD) is built on a foundation of assumptions and values that guide
its approach to change, employee development, and organizational effectiveness. These principles
ensure that OD interventions are people-centered, ethical, and focused on long-term improvement.
• Underlying Assumptions of OD:
• These assumptions represent the core beliefs about how organizations function and how
change should be implemented.
a) Organizations Are Social Systems
• Organizations are not just mechanical structures; they function as interdependent social
systems where people, processes, and environments interact.
• Any change in one part of the system affects the whole organization.
b) People Want Growth and Development
• Employees have an intrinsic motivation to learn, grow, and contribute when given the right
opportunities.
• OD assumes that people perform better when they are engaged and empowered.

14. Underlying Assumptions of OD cont…
c) Change Is Inevitable and Manageable
• Organizations must continuously evolve to stay competitive in a dynamic environment.
• Planned change is more effective than reactive change, and OD provides structured methods
to manage transitions smoothly.
d) Participation Leads to Commitment
• Employees are more likely to support changes when they are actively involved in decision-
making.
• OD promotes participative leadership, teamwork, and open communication.
e) Organizational Culture Shapes Behavior
• The values, norms, and leadership styles within an organization influence employee behavior.
• Sustainable OD efforts require cultural alignment with business goals.

15. Core Values of Organizational Development
OD is guided by humanistic and ethical values that emphasize respect, fairness, and collaboration.
a) Respect for People
• Every individual in the organization is valuable and deserves to be treated with dignity.
• OD promotes an inclusive and supportive work environment.
b) Collaboration & Teamwork
• OD values cooperation over competition, encouraging employees to work together toward shared
goals.
• It promotes trust, transparency, and open dialogue across all levels of the organization.
c) Integrity & Ethical Practice
• OD interventions should be honest, ethical, and aligned with organizational and societal well-being.
• Change efforts should avoid manipulation and be based on mutual trust.

16. Core Values of Organizational Development cont…
d) Continuous Learning & Adaptability
• Organizations should foster a culture of continuous learning, where employees are encouraged to develop
new skills and embrace change.
• OD emphasizes adaptability to new market trends, technologies, and challenges.
e) Employee Empowerment & Participation
• Employees should have a voice in shaping policies and decisions that affect them.
• OD supports decentralized decision-making and leadership development at all levels.
f) Systematic Approach to Change
• OD is not about quick fixes; it involves data-driven, research-based, and well-planned interventions.
• Change should be implemented using structured processes like Action Research (cyclical process of
identifying problems, collecting data, implementing solutions, and evaluating results) and Change Models.

17. Theory and Practice of Change and Changing in Organizational
Development
Introduction
Change is a fundamental aspect of Organizational Development (OD), as
organizations must continuously adapt to internal and external forces.
Theories of change provide a structured approach to understanding how
change occurs, while change practices focus on implementing and
managing change effectively.
• This discussion covers theories of change, the process of change, and
the practical approaches organizations use to facilitate successful
transformation.

18. Theories of Change in Organizational Development
a) Lewin’s Change Management Model (1947)
Kurt Lewin, the father of OD, introduced a three-stage model for managing
change:
1.Unfreeze – Creating awareness for change and preparing the organization.
2.Change (Transition) – Implementing new behaviors, processes, or
technologies.
3.Refreeze – Reinforcing the change so it becomes the new norm.
• Application: Used for culture change, leadership transitions, and process
improvements.

19. Kotter’s 8-Step Change Model (1996)
Developed by John Kotter, this model provides a structured approach to leading change:
1.Establish a Sense of Urgency – Communicate the need for change.
2.Build a Guiding Coalition – Form a team to lead the change.
3.Develop a Vision and Strategy – Create a clear direction for change.
4.Communicate the Change Vision – Engage employees in the transformation.
5.Empower Employees for Action – Remove obstacles and provide resources.
6.Generate Short-Term Wins – Celebrate small successes.
7.Consolidate Gains & Drive More Change – Strengthen momentum.
8.Anchor the Change in Culture – Ensure the change becomes part of the organizational
values.
• Application: Effective in mergers, digital transformation, and employee engagement
initiatives.

20. ADKAR Model for Change (Prosci, 1998)
Developed by Jeff Hiatt, the ADKAR Model focuses on individual
change within organizations:
• Awareness – Understanding the need for change.
• Desire – Creating willingness to support change.
• Knowledge – Providing information on how to change.
• Ability – Developing the necessary skills.
• Reinforcement – Sustaining the change.
• Application: Used for employee behavior change, training programs,
and HR policy shifts.

21. The Process of Change in OD (Planned Change Approach)
Step 1: Diagnosing the Need for Change
• Identify internal/external forces driving change (e.g., competition, technology).
• Use surveys, interviews, SWOT analysis to assess readiness.
Step 2: Planning the Change
• Define objectives and success criteria.
• Develop a change management strategy based on an appropriate theoretical model.
Step 3: Implementing the Change
• Communicate the change clearly to all stakeholders.
• Provide training, support, and resources.
• Use pilot programs before full implementation.
Step 4: Managing Resistance to Change
• Address employee fears through participation, communication, and incentives.
• Use Lewin’s Force Field Analysis to understand driving and restraining forces.
Step 5: Evaluating and Reinforcing Change
• Measure success using KPIs, employee feedback, and performance metrics.
• Adjust strategies based on continuous feedback and evaluation.

22. Nature of Planned Change
e
Planned change in OD is characterized by the following aspects:
a) Intentional and Systematic
• Planned change is a deliberate effort initiated by management or change agents to achieve specific objectives.
• It follows a structured approach rather than occurring randomly or spontaneously.
b) Organization-Wide and Holistic
• It affects the entire organization or key functional areas, such as leadership, processes, culture, or technology.
• It considers both structural (processes, technology) and human (employees, behaviors, culture) aspects.
c) Data-Driven and Research-Based
• Change decisions are based on diagnosis, data collection, and analysis rather than assumptions.
• Action research and employee feedback are often used to shape interventions.
d) Long-Term and Sustainable
• The goal is to create lasting improvements, not just short-term fixes.
• Changes are reinforced through training, leadership alignment, and cultural transformation.
e) Participatory and Collaborative
• Planned change involves employees, managers, and stakeholders in the decision-making process.
• Participation reduces resistance and increases ownership of the change process.
f) Adaptability and Continuous Improvement
• While structured, planned change allows for flexibility and adjustments based on ongoing feedback.
• Learning organizations continuously refine their strategies to stay competitive.

23. The Nature of Client Systems in Organizational Development
In Organizational Development (OD), a client system refers to the
individuals, groups, or entire organizations undergoing change
interventions. Understanding the nature of client systems is essential for
designing effective OD strategies.
This discussion explores three key aspects of client systems:
1.Group Dynamics – Interaction within small work teams.
2.Intergroup Dynamics – Interaction between different groups within the
organization.
3.Organizations as Systems – Viewing the organization as a complex,
interdependent system.

24. Challenges of Change in OD
1.Resistance to Change – Fear of the job loss, increased workload, lack of trust.
Solution: Use participation, communication, and training to address concerns.
2.Poor Communication – Employees may misunderstand the purpose or process
of the change. Solution: Use clear, consistent, and multi-channel communication
3.Lack of Leadership Support – Weak commitment and support from top
management. Solution: Involve leaders early and align incentives with change
objectives.
4.Insufficient Resources – Not properly funded or resourced, Budget, skills, and
infrastructure limitations. Solution: Develop a realistic change plan with necessary
investments
5.Failure to Reinforce Change – No long-term sustainability measures. Solution:
Reinforce new behaviors through rewards, leadership alignment, and performance
tracking.

25. Group Dynamics in Organizational Development
What is Group Dynamics?
Group dynamics refers to the patterns of interaction, relationships, and behaviors among members within
a team or workgroup. These dynamics influence team performance, communication, decision-making,
and problem-solving.
Key Aspects of Group Dynamics
a) Group Structure – The roles, norms, and status hierarchy within the group.
b) Group Cohesion – The level of trust, cooperation, and commitment among members.
c) Group Norms – The shared expectations and behaviors that guide team interactions.
d) Leadership in Groups – How leaders influence group effectiveness and direction.
e) Decision-Making & Conflict Resolution – How groups solve problems and manage disagreements.
Implications for OD
• Strong group dynamics improve team performance, motivation, and job satisfaction.
• Dysfunctional group dynamics (e.g., conflicts, lack of trust) require OD interventions like team-building
activities and conflict resolution training.

26. Intergroup Dynamics in Organizations
What is Intergroup Dynamics?
Intergroup dynamics refer to the interaction, relationships, and potential conflicts between different
groups within an organization. These groups can be departments, functions, or teams, such as:
• HR vs. Operations
• Marketing vs. Sales
• Management vs. Employees
Key Factors Affecting Intergroup Dynamics
• a) Competition for Resources – Departments often compete for budgets, personnel, and
recognition.
b) Stereotypes & Miscommunication – Different groups may develop misconceptions about each
other.
c) Power & Status Differences – Some groups may feel superior or subordinate, leading to tension.
d) Interdependence – Some departments rely on others to complete tasks, affecting workflow
efficiency.

27. Intergroup Dynamics in Organizations cont…
OD Interventions to Improve Intergroup Dynamics
1.Intergroup Training – Facilitates open communication and collaboration.
2.Joint Problem-Solving Workshops – Encourages departments to work together on shared
challenges.
3.Cross-Functional Teams – Mixes employees from different groups to enhance cooperation
and knowledge sharing.
4.Conflict Resolution Strategies – Uses mediation, negotiation, and leadership alignment to
reduce tensions.
Implications for OD
• Poor intergroup dynamics reduce productivity and create resistance to change.
• OD strategies focus on enhancing communication, reducing silos, and fostering collaboration.

28. Organizations as Systems
What is a Systems View of Organizations?
Organizations are complex, open systems made up of interdependent components that
interact with each other and the external environment. A change in one part of the system
affects the entire organization.
Key Characteristics of Organizations as Systems
• a) Open Systems – Organizations interact with external environments (e.g., economy,
competition, customers).
b) Interdependence – Changes in one department affect other parts of the organization.
c) Feedback Mechanisms – Continuous improvement relies on gathering and acting on
feedback.
d) Subsystems – Includes HR, Finance, Operations, Marketing, IT, and Leadership.
e) Adaptability – Organizations must adapt to market changes, technological
advancements, and workforce expectations.

29. Organizations as Systems Cont…
OD Interventions for Organizations as Systems
1.System-Wide Change Programs – Align strategy, structure, culture, and leadership.
2.Organizational Learning & Development – Encourages continuous improvement and innovation.
3.Business Process Reengineering (BPR) – Redesigns workflows to improve efficiency.
4.Leadership Development – Ensures that leaders support and drive systemic change.
Implications for OD
• Organizations that fail to recognize interdependencies risk siloed thinking and inefficiencies.
• OD practitioners take a holistic approach, ensuring that changes in one area align with overall
organizational goals.