Organization development is a planned, organization-wide effort led by top management to increase effectiveness and health through interventions. It responds to change by altering beliefs, attitudes, values, and structure using education strategies. The goal is to help organizations adapt to new technologies, markets, and challenges through changes to culture. Organization development uses action research methods like collecting data on problems and taking action based on analysis. It must address actual needs for change identified by the organization and involve them in planning and implementing changes.

1. Organization Development
It is a planned organization effort initiated and managed by the Top in order to increase the
organizational effectiveness and health through Planned interventions in an Organizations. It is a
response to change and requires complex educational strategy to change the beliefs, attitudes, values,
and structure of an organization so that they can better adapt to new technologies, markets, and
challenges, and the dizzying rate of change itself. The methodological model for OD is action research;
data on the nature of certain problems are systematically collected and then action is taken as a function
of what the analyzed data indicates. To be OD, it must respond to an actual and perceived need for change
on the part of the Organization, involve the Organization in the planning and implementation of the
change, and lead to change in the organization’s culture.
Characteristics of Organization Development
1. OD is an interdisciplinary and primarily behavioral science approach that draws from such
fields as organization behavior, management, business, psychology, sociology, anthropology,
economics, education, counseling, and public administration.
2. A primary, though not exclusive, goal of OD is to improve organizational effectiveness.
3. The target of the change effort is the whole organization, departments, work groups, or
individuals within the organization and, as mentioned earlier, may extend to include a
community, nation, or region.
4. OD recognizes the importance of top management’s commitment, support, and involvement. It
also affirms a bottom-up approach when the culture of the organization supports such efforts to
improve an organization.
5. It is a planned and long-range strategy for managing change, while also recognizing that the
dynamic environment in which we live requires the ability to respond quickly to changing
circumstances.
6. The major focus of OD is on the total system and its interdependent parts.
7. It is an education-based program designed to develop values, attitudes, norms, and management
practices that result in a healthy organization climate that rewards healthy behavior.
8. It is a data-based approach to understanding and diagnosing organizations.
Process of Organization Development
1. Initial Diagnosis/Consultations: The first step in the organizational development process is to
approach the organizational development consultant to determine the types of OD programme to
be developed. The consultant may be a professional consultant from outside or he may internal
service personnel, expert in organization development programmes. At this point, the consultant
may have consultation with person from various levels in the organizations in order to gain the
knowledge of imports. For this purpose, he may interview such persons or he may adopt any
other way to be acquainted with the necessary information.

2. 2. Data collection: The consultant meets various groups away from the work in order to
determine the organizational climate and behavior problems faced by the organization.
They gather information through surveys and develop information through interviews etc.
3. Data Feedback and Confrontations: Data, so collected are made known to work groups
concerned and their viewpoints are taken. After having an initial diagnosis and solution to problems,
data will be again given back to employees for collecting their viewpoints. The situation of
confrontation may arise at the time of discussion on solutions of problems.
4. Action planning and Problem Solving: Data are used by the groups to suggest
specific recommendations for change. They discuss the problems faced by the organizations and
stretch specific plans including who is responsible for problems and at what time.
5. Team Building: Team building through organizing meeting with managers and their immediate
subordinates are encouraged so that they can improve the functioning of the work group with the
guidance of consultant.
6. Inter Group Development: Understanding and co-ordination will be developed among different
groups to achieve the objectives. In other words, with the development of natural team (a manager and
his sub-ordinates), the larger groups comprising several teams may be developed. In this way, it will
include the whole organizations.
7. Appraisal and Follow up: Appraisal of the programmes are made deficiencies are found out if any.
Consultants can develop additional programmes in are where the original programme is felt
ineffective and results are poor and that requires improvement. Thus, the consultants advise follow up
for better understanding.
Benefits of Organizational development
1. Helps to improve the organizational ability to cope with changing environment and
thus helps the organization to stay competitive.
2. Helps to create a work climate that encourages creativity and openness for personal
growth and development which are ultimately tied up with Organizational
Development.
3. Improves organizational effectiveness through better utilization of resources and
increased productivity.
4. Helps to understand the Organizational strength and Weakness.
5. Improved team work and greater commitment and participation.
6. Significant decrease in dysfunctional Behaviour.
7. Ability to aatract and keep healthy and productive employees.
Problems/Limitations of Organizational Development
1. Fails to motivate people with low level of achievement needs.
2. Costly and thus only large size organization can afford.
3. Can be unfit to real world because aasumption made at particular situation keeps
on changing.
4. Resistance to change can be the major problem.

3. Organizational Development (OD) Interventions/ Organization
Development at Group and Inter Group Level
Organizational Development (OD) Interventions are structured program designed to
solve a problem, thus enabling an organization to achieve the goal. These intervention
activities are designed to improve the organization’s functioning and enable managers
and leaders to better manage their team and organization cultures. Numerous
interventions have been developed over the years to address different problems or
create various results.
There are three levels of OD interventions:
1. Intervention at Individual level: It aims to change the attitude perception
belief and values of individual employees of the organization. The tools used
for individual level are:
 Survey feedback: under this researcher collects information of
employees and their attitude towards current wage level, structure,
hours of work and working condition. Such information are then
supplied to Top Level management for deep study and come up with
remedial measures or solutions to correct the problem identified.
 Sensitivity Training: In the course of training unstructured group
interaction is made where participants share their opinion, view idea
and knowledge towards each other assigned subject matter. In the
course they cope up with criricism, accept them, understand other
views,work in group and finally work together and develop problem
solving ability by working together.
 Counseling and coaching: In this tool outside expert encourages
employees to change their attitude,beliefs, values etc. When
employees are counseled and motivated they fully devote their work
for achieving organizational goal.
2. Intervention at Group level: It aims to increase the group level activity. It
basically focuses on developing leadership ability,team work, conflict
management etc. The tools for intervention at Group Level are:
 Process Consultation: Consultant are hired for observing the overall
process such as communication pattern,decision making, ledearship
styles,methods of conflict resolution etc.They finally provide proper
guidance to the management for improving the working Process.
 Team Building: Team members are formed through interpersonal
relationship and in open and Trustworthy environment. All the
conflict are resolved on the basis of Mutual Understanding, interaction
of group members.

4.  Inter-Group development: There can be conflict between two or
more group who are interdependent among themselves. Unhealthy
competition between them must be eliminated and their activities must
be harmonized and coordinated.
3. Intervention at Organizational Level: It aims to improve organizational
level activity through proper rules and regulations, sound working procedures,
technology and whole organizational system. The common tools under it are:
 Goal setting and planning: Goals must be prepared by every
department and presented to top level for modification and approval.
When every people are involved it brings commitment to work and
predetermined goals are achieved faster.
 Organizational restructuring: It involves redefining hierarchy of
authority, division of work, formal relationship and co-ordination
mechanisms which bring changes in performance and supports for
planned development.
 Technological changes: introduce new technology in organizational
activities. IT must be widely used for production and distribution
Functions.
 QWL programs: safe and healthy environment,empowerment of
employees,two way communication,fair reward, feeling of team work
encourages employees to increase their performance.
Changing Organizational Culture/Creating the culture for
change
Recently, some OB scholars have focused on a more proactive approach—how organizations
can embrace(accept) change by transforming their cultures. For this Organization can
Demonstrate three ways of creating a culture for change:
1.Managing Paradox: The true test of leadership is successfully managing paradoxical
opposites faced every day in business. The paradox theory focuses that the key paradox in
management is that there is no final optimal status for an organization. managers who think
holistically and recognize the importance of balancing paradoxical factors can change and
create the culture for Organizational change soon.
2. Simulating an innovative culture: Innovative culture can be defined as the
multidimensional atmosphere which includes the values, assumptions, and beliefs shared of
the members of an organization that cause it to be prone to explore new opportunities and
knowledge and generate innovation, in order to respond to market demands. Managers in
innovative organizations recognize that failures are a natural by-product of venturing into the
unknown. Within the human resources category, innovative organizations actively promote
the training and development of their members so they keep current, offer high job security

5. so employees don’t fear getting fired for making mistakes, and encourage individuals to
become champions of change.
3. Creating a Learning Organization: A learning organization has developed the
continuous capacity to adapt and change. To become a learning organization, managers must
demonstrate by their actions that taking risks and admitting failures are desirable. This means
rewarding people who take chances and make mistakes. And management needs to encourage
functional conflict.