Chapter 1 Introduction to OD

Chapter 1Introduction to Organisation

Development (OD)

Lecture Outline

1.1. What is OD? 1.2. The Growth and Relevance of OD1.3. A Short History of OD

1.3.1. Laboratory Training Background1.3.2. Action Research and Survey Feedback Background 1.3.3. Participative Management Background1.3.4. Productivity and Quality-of-Work-Life Background1.3.5. Strategic Change Background

1.4. Evolution in OD

1.1. Definitions of OD

OD is a planned process of change in an organization’s culture through the utilization of behavioral science technology, research, and theory. (Warner Burke)

Points to consider: Planned process of change or planned change Organisation culture Behavioral science

1.1. Definitions of OD 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, or change agents, as they are sometimes called. (Wendell French)

Points to consider: Long-range effort Problem-solving capabilities Changes in an organisation’s external environment External and internal behavioral-scientist consultants Change agent

1.1. Definitions of OD

OD is a systemwide process of data collection, diagnosis, action planning, intervention, and evaluation aimed at (1) enhancing congruence among organizational structure, process, strategy, people, and culture; (2) developing new and creative organizational solutions; and (3) developing the organization’s self-renewing capacity. It occurs through the collaboration of organizational members working with a change agent using behavioral science theory, research, and technology. (Michael Beer)

What is OD?

OD is both a professional field of social action and an area of scientific inquiry. The practice of OD covers a wide spectrum of activities, with seemingly endless variations upon them.

OD applies to the strategy, structure, and processes of an entire system, such as an organization, a single plant of multiplant firm, or a department or work group.

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What is OD?

OD is both a professional field of social action and an area of scientific inquiry. The practice of OD covers a wide spectrum of activities, with seemingly endless variations upon them.

OD is based on behavioral science knowledge and practice, including microconcepts such as leadership, group dynamics, and work design; and macroapproaches such as strategy, organisation design, and international relations.

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What is OD?

OD is both a professional field of social action and an area of scientific inquiry. The practice of OD covers a wide spectrum of activities, with seemingly endless variations upon them.

OD is concerned with planned change. It involves planning to diagnose and solve organisational problems, but such plans are flexible and often revised as new information is gathered about the progress of the change programme.

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What is OD?

OD is both a professional field of social action and an area of scientific inquiry. The practice of OD covers a wide spectrum of activities, with seemingly endless variations upon them.

OD involves both the creation and the subsequent reinforcement of change. First First

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What is OD?

OD is both a professional field of social action and an area of scientific inquiry. The practice of OD covers a wide spectrum of activities, with seemingly endless variations upon them.

OD improves organisational effectiveness. An effective organisation is able to solve its

own problems and focus its attention and resources on achieving key goals. OD helps organisation members gain the skills and knowledge necessary to conduct these activities by involving them in the process.

An effective organisation has both high performance (including financial returns, quality products/services, high productivity, & continuous change) & a high quality of work life. OD works on a system approach to deal with all these.

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1.2. The Growth and Relevance of OD

Organisations are changing with a rapid speed and today OD is more relevant than before to help organisations deal with these changes. Three major trends are responsible for bringing change in organisations: globalisation, informationa technology, and managerial change. Globalisation is changing the markets and

environments in which organisations operate.

New governments, new leadership, new markets, and new countries are emerging and creating a new global economy.

Organisations need to respond to these changes in such a way to be able to be successful. OD helps organisation deal with such changes.

Globalisation Globalisation

1.2. The Growth and Relevance of OD

Organisations are changing with a rapid speed and today OD is more relevant than before to help organisations deal with these changes. Three major trends are responsible for bringing change in organisations: globalisation, informationa technology, and managerial change. IT is redefining the traditional business

model by changing how work is performed, how knowledge is used, and how the cost of doing business is calculated.

The use of IT can lower costs and increase the value and quality of products and services.

Many organisations are now selling their products and service online through the internet.

The introduction of telecommuting as a new form of work.

GlobalisationGlobalisation

Information Tech.Information Tech.

1.2. The Growth and Relevance of OD

Organisations are changing with a rapid speed and today OD is more relevant than before to help organisations deal with these changes. Three major trends are responsible for bringing change in organisations: globalisation, informationa technology, and managerial change. Managerial innovation has responded to

the globalisation and IT trends and has accelerated their impact on organisations.

New organisational forms, such as networks, strategic alliances, and virtual corporations, provide organisations with new ways of thinking about how to manufacture goods and deliver services.

GlobalisationGlobalisation

Information Tech. Information Tech.

Managerial Change

Managerial Change

1.3. A Short History of OD

1.3.1. Laboratory Training Background1.3.2. Action Research and Survey Feedback

Background 1.3.3. Participative Management Background1.3.4. Productivity and Quality-of-Work-Life

Background1.3.5. Strategic Change Background

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Laboratory Training

Action Research/Survey Feedback

Participative Management

Quality of Work Life

Strategic Change

1950 1960 1970 1980 1990 2000 Today

1.3.1. Laboratory Training Background

The National Training laboratories (NTL) development of training groups known as sensitivity training or T-groups.

Laboratory Training began in 1946 when Kurt Lewin and his staff at the Research Center for Group Dynamics at MIT were asked by the Connect Interracial Commission and the Committee on Community Interrelations of the American Jewish Congress for help on training community leaders.

A workshop was developed for the leaders to learn about leadership and to discuss problems. At the end of each day, the researchers discussed privately what behaviors and group dynamics they had observed.

The leaders asked permission to sit in on these feedback sessions. Reluctant at first, the researchers finally agreed. Thus the first T-group was formed in which people reacted to information about their own behavior.

1.3.2. Action Research and Survey Feedback Background

Kurt Lewin formed the Research Center for Group Dynamics at MIT in 1945. After he died in 1947, his staff moved to the University of Michigan to join the Survey Research Center as part of the Institute for Social Research. It was headed by Rensis Likert, a pioneer in developing scientific approaches to attitude surveys (five-point Likert scale).

In the 1940s John Collier, Kurt Lewin, and William Whyte discovered that research needed to be closely linked to action if organizational members were to use it to manage change. Action research has two results: 1) organizational members use research on themselves to guide action and change, while 2) researchers were able to study the process to gain new information. Two noted action research studies was the work of Lewin and his students at the Hardwood Manufacturing Company (Marrow, Bowers & Seashore, 1967) and the Lester Coch and John French¹s classic research on overcoming resistance to change (Coch & French, 1948).

1.3.3. Participative Management Background

A belief that human relations approach represents one-best way to manage orgs was exemplified in research that associated Likert’s Participative Management (System 4) style with organizational effectiveness;

Exploitative Authoritative (System 1); Benevolent Authoritative (System 2); Consultative (System 3); Participative (System 4);

Survey conducted asked members for their opinion about present and ideal conditions on 6 organizational features: leadership, motivation, communication, decision, goals, and control;

In 2nd stage, data were fed back to different work groups within org, group members examined discrepancy b/w their present situation and ideal; generally using System 4 as ideal benchmark, and generated action plans to move org toward System 4 conditions;

1.3.4. Productivity and Quality-of-Work-Life Background

This was originally developed in Europe during the 1950s and is based on the work of Eric Trist and his colleagues at the Tavistock Institute of Human Relations in London.

This approach examined both the technical and the human sides of organizations and how they are interrelated.

1.3.5. Strategic Change Background

1.4. Evolution in OD