This document outlines lecture notes on organizational development (OD) by Dr. Virgel C. Binghay. It defines OD as a contractual relationship between a change agent and sponsoring organization to use behavioral science and improve organizational performance. It discusses key aspects of OD including the change agent, sponsoring organization, applied behavioral science, systems context, and improved organizational performance. The notes also cover understanding organizations, modern developments in OD, and action research approaches.

1. Dr. Virgel C. Binghay
School of Labor & Industrial Relations,
University of the Philippines, Diliman
Lecture Notes of Dr. V.C.Binghay 1

2. Dr. Virgel C. Binghay
Associate Professor & Director,
Center for Industry Productivity &
Competitiveness, U.P. School of
Labor & Industrial Relations
Tel. #: 661-1488
Mobile Phone: 0917-8487428
E-mail: dr.binghay@yahoo.com
Website: www.virgelcbinghay.com
Lecture Notes of Dr. V.C.Binghay 2

3. Topic Outline
• Nature of OD
• Definition of OD
• Contractual Relationship
• Change Agent
• Sponsoring Organization
• Applied Behavioral Science
• OD Process
• Systems Context
• Improved Organizational
Performance
Lecture Notes of Dr. V.C.Binghay 3

4. • Organizational Self-Renewal
• Understanding Organizations
• Modern Development in OD
• Action Research
• OD Interventions
• Types of Organizational Change
• Reactions to Change
• Resistance to Change
• Methods of Addressing Resistance
to Change
• Process of Planned Change
• Workshop
• Recap & Integration
Lecture Notes of Dr. V.C.Binghay 4

5. Nature of Organization
Development
Is a planned, organization-wide
effort to increase organization’s
effectiveness & viability
A response to change
A complex organizational strategy to
change the beliefs, attitudes,
values, & structure of organization
Lecture Notes of Dr. V.C.Binghay 5

6. A change process designed to
bring about a particular kind of
end result
Can involve interventions in the
organizations processes
Lecture Notes of Dr. V.C.Binghay 6

7. Uses behavioral science as
well as organizational
reflection, system improvement,
planning, and self analysis
Lecture Notes of Dr. V.C.Binghay 7

8. Definition of OD
OD is a contractual relationship
between a change agent & a
sponsoring organization entered
into for the purpose of using
applied behavioral science and/or
other organizational change
perspectives in a systems context
to improve organizational
performance & the capacity of the
organization to improve itself.
Lecture Notes of Dr. V.C.Binghay 8

9. OD is aimed at:
• Enhancing congruence among
organization structure, process,
strategy, people, & culture
• Developing new & creative
organizational solutions
• Developing the organization’s
self-renewing capacity
Lecture Notes of Dr. V.C.Binghay 9

10. Emergence of OD
• The need for organizational
reforms
• The focus on cultural change
• The increase in social
awareness
Lecture Notes of Dr. V.C.Binghay 10

11. Reasons for Undergoing
OD
• Competition
• Survival
• Improved Performance
Lecture Notes of Dr. V.C.Binghay 11

12. OD Values
• Respect for People
• Trust & Support
• Power Equalization
• Confrontation
• Participation
Lecture Notes of Dr. V.C.Binghay 12

13. Contractual Relationship
Neither the sponsoring
organization nor the change
agent can be sure at the outset
of the exact nature of the
problem/s to be dealt with or
how long the change agent’s
help will be needed, it is
essential that some tentative
agreement on these matters be
reached.
Lecture Notes of Dr. V.C.Binghay 13

14. Sponsoring organization needs
to know change agent’s:
preliminary plan
commitments & responsibility
for the program
fees
Lecture Notes of Dr. V.C.Binghay 14

15. Change agent must assure
himself/herself that the
organization’s particularly the top
executives’ commitment to
change is strong enough to
support the kind of self-analysis
and personal involvement
requisite to success of the
program.
Lecture Notes of Dr. V.C.Binghay 15

16. Change Agent
In OD, change agent is not a
technical expert in such
functional areas as accounting,
production or finance
Is a behavioral scientist who
knows how to get people in an
organization involved in solving
their own problems
Lecture Notes of Dr. V.C.Binghay 16

17. Strength is a comprehensive
knowledge of human behavior,
supported by a number of
intervention techniques
Can be either internal or
external to the organization
Lecture Notes of Dr. V.C.Binghay 17

18. Change Agent
• External Change Agent
• Internal Change Agent
• External-Internal Change Agent
Team
Lecture Notes of Dr. V.C.Binghay 18

19. Sponsoring Organization
The initiative for OD programs
comes from an organization
that has a problem.
This means that top
management is aware that a
problem exists and has
decided to seek help in finding
a solution to his/her problems.
Lecture Notes of Dr. V.C.Binghay 19

20. Applied Behavioral
Science
Using theory and methods drawn
from such behavioral sciences
(industrial relations, psychology,
sociology, anthropology, political
science, economics, administrative
theory, organizational behavior), the
change agent’s main function is to
help the organization define and
solve its own problems.
Method used – “Action Research”
Lecture Notes of Dr. V.C.Binghay 20

21. OD PROCESS
2. Preliminary Diagnosis
3. Collecting Data
4. Feedback of the Data to the
Client
5. Data Exploration by the Client
Group
6. Action Planning based on the
Data
7. Taking Action
Lecture Notes of Dr. V.C.Binghay 21

22. Systems Context
OD deals with a total system –
the organization as a whole,
including its relevant
environment – or with a
subsystem or systems –
departments or work groups –
in the total system
Lecture Notes of Dr. V.C.Binghay 22

23. Parts of system (like
individuals, cliques,
structures, norms, values,
and products) are not
considered in isolation
Principle of interdependency
OD interventions focus on
total culture and cultural
processes of organizations
Lecture Notes of Dr. V.C.Binghay 23

24. Improved Organizational
Performance
Improve organization’s capacity to
handle its internal and external
functioning and relationships such
as:
Improved interpersonal & group
processes
More effective communication
Enhanced ability to cope with
organizational problems of all kinds
Lecture Notes of Dr. V.C.Binghay 24

25. More effective decision
processes
More appropriate leadership
style
Improved skill in dealing with
destructive conflict
Higher levels of trust and
cooperation among
organizational members
Lecture Notes of Dr. V.C.Binghay 25

26. These objectives stem from a
value system based on an
optimistic view of the nature of
people – that people in a
supportive environment are
capable of achieving higher
levels of and accomplishment.
Lecture Notes of Dr. V.C.Binghay 26

27. Essential to OD &
effectiveness is the
scientific method – inquiry,
a rigorous search
for causes, experimental
testing of hypotheses, and
review of
results
Lecture Notes of Dr. V.C.Binghay 27

28. Organizational Self-
Renewal
The ultimate aim of OD is to
“work themselves out of a job”
by leaving the client organization
with a set of tools, behaviors,
attitudes, and an action plan with
which to monitor its own state of
health and to take corrective
steps toward its own renewal
and development.
Lecture Notes of Dr. V.C.Binghay 28

29. Understanding
Organizations
Weisbord’s six-box model for
understanding organization:
2. Purposes
3. Structure
4. Relationship
5. Rewards
6. Leadership
7. Helpful Mechanism
Lecture Notes of Dr. V.C.Binghay 29

30. • Purposes: The organization
members are clear about the
organization’s mission and
purpose and goal agreements,
whether people support the
organization’s purpose.
Lecture Notes of Dr. V.C.Binghay 30

31. • Structure: How do we divide
up the work? The question is
whether there is an adequate fit
between the purpose and the
internal structure.
Lecture Notes of Dr. V.C.Binghay 31

32. • Relationship: Between
individual, between units or
department that perform
different tasks, and between
the people and requirements of
their job.
Lecture Notes of Dr. V.C.Binghay 32

33. • Rewards: The change agent
should diagnose the similarities
between what the organization
formally reward or punished for
doing.
Lecture Notes of Dr. V.C.Binghay 33

34. • Leadership: Is to watch for
blips among the other boxes
and maintain balance among
them.
Lecture Notes of Dr. V.C.Binghay 34

35. • Helpful Mechanism:
organization must attend to
order to survive – like:
planning, control, budgeting,
information, and other systems
that help organization member
accomplish.
Lecture Notes of Dr. V.C.Binghay 35

36. Modern Development
Reinventing OD to manage
change in modern
organizations
Emotion-based standpoint –
how emotional trauma can
negatively affect performance
Lecture Notes of Dr. V.C.Binghay 36

37. Downsizing, outsourcing,
mergers, restructuring,
continual changes, invasions
of privacy, harassment, and
abuses of power, many
employees experience the
emotions of aggression,
anxiety, apprehension,
cynicism, and fear, which can
lead to performance
decreases.
Lecture Notes of Dr. V.C.Binghay 37

38. OD practitioners must
acknowledge the existence
of trauma, provide a safe
place for employees to
discuss their feelings,
symbolize the trauma and
put it into perspective, and
then allow for and deal with
the emotional responses.
Lecture Notes of Dr. V.C.Binghay 38

39. Action Research
OD as organization
improvement through
action research
If people are active in
decisions affecting them,
they are more likely to
adopt new ways.
Lecture Notes of Dr. V.C.Binghay 39

40. Rational social
management proceeds in a
spiral of steps, each of
which is composed of a
circle of planning, action,
and fact-finding about the
result of action.
Lecture Notes of Dr. V.C.Binghay 40

41. Process of change involves
three steps:
4. Unfreezing
5. Changing
6. Refreezing
Lecture Notes of Dr. V.C.Binghay 41

42. • Unfreezing: Faced with
dilemma or discomfort, the
individual or group becomes
aware of the need to change.
• Changing: The situation is
diagnosed and new models of
behavior are explored and
tested
Lecture Notes of Dr. V.C.Binghay 42

43. • REFREEZING: Application
of new behavior is evaluated,
and if reinforcing, adopted.
Lecture Notes of Dr. V.C.Binghay 43

44. OD Interventions
“Interventions” are central
learning processes in the
“action” stage of OD
They are structured activities
used individually or in
combination by the members of
the client system to improve
their social or task
performance.
Lecture Notes of Dr. V.C.Binghay 44

45. They may be introduced by a
change agent as part of an
improvement program, or
they may be used by the
client following a program to
check the state of the
organization’s health, or to
effect necessary changes in
its own behavior.
Lecture Notes of Dr. V.C.Binghay 45

46. “Structured Activities” mean
such diverse procedures as
experiential exercises,
questionnaires, attitude
surveys, interviews,
relevant group discussions,
and even a lunch meetings
between the change agent
and a member of the client
organization.
Lecture Notes of Dr. V.C.Binghay 46

47. Every action that
influences an
organization’s
improvement program in
a change agent-client
system relationship can
be said to be an
intervention.
Lecture Notes of Dr. V.C.Binghay 47

48. There are many possible
intervention strategies from
which to choose. Several
assumptions about the
nature and functioning of
organizations are made in
the choice of a particular
strategy.
Lecture Notes of Dr. V.C.Binghay 48

49. SIX ASSUMPTIONS OF
HEALTHY ORGANIZATIONS
1)The basic building blocks of an
organization are groups
(teams). Therefore, the basic
units of change are groups, not
individuals.
Lecture Notes of Dr. V.C.Binghay 49

50. 2) An always relevant change
goal is the reduction of
inappropriate competition
between parts of the
organization and the
development of more
collaborative condition.
Lecture Notes of Dr. V.C.Binghay 50

51. 3) Decision making in a healthy
organization is located where
information sources are,
rather than in a particular role
or level of hierarchy.
Lecture Notes of Dr. V.C.Binghay 51

52. 4) Organizations, subunits of
organizations, and individuals
continuously manage their
affairs against goals. Controls
are interim measurements, not
the basis for managerial
strategy.
Lecture Notes of Dr. V.C.Binghay 52

53. 5)One goal of a healthy
organization is to develop
generally open
communication, mutual trust,
and confidence between and
across levels.
Lecture Notes of Dr. V.C.Binghay 53

54. 6)People support what they help
create. People affected by a
change must be allowed active
participation and a sense of
ownership in the planning and
conduct of change.
Lecture Notes of Dr. V.C.Binghay 54

55. CATEGORIES OF
INTERVENTIONS:
Interventions range from those
designed to improve the
effectiveness of individuals
through those designed to deal
with teams and groups, inter-
group relations, and the total
organization.
Lecture Notes of Dr. V.C.Binghay 55

56. There are interventions that
focus on task issues (what
people do), and those that
focus on process issues (how
people go about doing it).
Lecture Notes of Dr. V.C.Binghay 56

57. Interventions may also be
classified according to which
change mechanism they tend
to emphasize: for example,
feedback, awareness of
changing cultural norms,
interaction and communication,
conflict, and education through
either new knowledge or skill
practice.
Lecture Notes of Dr. V.C.Binghay 57

58. A CHALLENGE OF
CHANGE AGENT:
“To help create in a client
system a climate for
learning and change.”
Lecture Notes of Dr. V.C.Binghay 58

59. Some of the things that will
help Change Agents:
3. A real need in the client
system to change
4. Genuine support from
management
5. Setting a personal
example: listening,
supporting behavior
Lecture Notes of Dr. V.C.Binghay 59

60. 1. A sound background in
behavioral sciences
5. A working knowledge of
systems theory
6. A belief in people as rational,
self-educating being fully
capable of learning better
ways to do things
Lecture Notes of Dr. V.C.Binghay 60

61. Effective intervention
depends on:
• The extent to which it fits the needs
of the organization;
• The degree to which it is based on
causal knowledge of intended
outcomes; and
• The extent to which it transfers
change management competence
to organization members
Lecture Notes of Dr. V.C.Binghay 61

62. Few Examples of
Interventions
Training
Team Building
Coaching
Counseling
Mentoring
Large Group Interventions
Performance Management
Downsizing/Rightsizing
Succession
Leadership Development
Lecture Notes of Dr. V.C.Binghay 62

63. Job Evaluation
Role Analysis
Socio-Tech
Structural
Management Development
Rewards Management
Group Dynamics
Competency-based Selection
Labor-Management Councils
Grievance Handling
Lecture Notes of Dr. V.C.Binghay 63

64. Types of Organizational
Change
Strategic Changes
Technological Changes
Structural Changes
Changing the Attitudes &
Behaviors of People
Lecture Notes of Dr. V.C.Binghay 64

65. Reactions to
Organizational Change
Enthusiasts
Followers
Objectors
Underground
Lecture Notes of Dr. V.C.Binghay 65

66. Top 2 Reasons for
Employee Resistance
2. A lack of awareness
about the change
4. Comfort with the ways
things are and fear of the
unknown
Lecture Notes of Dr. V.C.Binghay 66

67. Top 10 Reasons Employees
Resist Change
1. Individual’s personal predisposition to
change
2. Surprise & fear of the unknown
3. Climate of mistrust
4. Fear of failure
5. Loss of status &/or job security
6. Peer pressure
7. Disruption of cultural traditions &/or
group relationships
8. Personality conflicts
9. Lack of tack &/or poor timing
10. Not seeing the benefits
Lecture Notes of Dr. V.C.Binghay 67

68. Methods of Overcoming
Resistance to Change
Education
Participation
Negotiation
Cooptation
Lecture Notes of Dr. V.C.Binghay 68

69. Process of Planned
Change
Assess external environment
Specify objectives to be
achieved
Assess current organization
and its history
Lecture Notes of Dr. V.C.Binghay 69

70. Articulate & communicate a
vision for the future
Design a strategic plan
Implement targeted change
efforts
Evaluate, revise, and refocus
Lecture Notes of Dr. V.C.Binghay 70

71. Strategies to Change
• Structural Strategy
• Technological Strategy
• Behavioral Strategy
Lecture Notes of Dr. V.C.Binghay 71

72. Structural Strategy
- An attempt to change
organization’s design by
modifying the lines of authority,
span of control, & agreement of
work functons
Lecture Notes of Dr. V.C.Binghay 72

73. Technological Strategy
- The use of new technologies to
bring an organization up to the
state of the art machinery,
methods, automation, & job
design
Lecture Notes of Dr. V.C.Binghay 73

74. Behavioral Strategy
- Focuses on human resources; it
aims to increase the morale,
motivation, & commitment of
members to improve
organization performance.
Lecture Notes of Dr. V.C.Binghay 74

75. Lecture Notes of Dr. V.C.Binghay 75