Organization Development

Organization Organization DevelopmentDevelopment

Dr. Gunjan MathurDr. Gunjan Mathur

Introduction to OD

• What is OD? What is it not?• When is OD needed?• The concept of the action research model

About Organization Development (OD)

Relatively new field of study – 50’s & 60’s

OD is about how organizations and people function and how to get them function better

Start Point – when the leader identifies an undesirable situation and seeks to change it.

Focus - Making organizations function better (total system change).

Orientation - Action (achieving results through planned activities).

No unifying theory – just models of practice

OD is an organization improvement strategyOD is an organization improvement strategy

Poor morale

Unclear goals

Poor quality

Poor t

eam perf

orman

ceIntergroup conflictOrganization

Poorly designed tasks

Inappropriate leadership style

Interpersonal conflicts

Low productivity

Poor alignment to organization’s strategy

Start Point

Inappropriate organiza

tion structu

re

Focus

Change – new state of things, different from old state of things

Can be viewed as an opportunity or as a threat

ChangeFirst order change

Second order change

(making moderate adjustments)

(reinvent, reengineer, rewrite)

OD consultants are experts in organizational change

What needs to be changed and how to go about it

OD Is:• Systematic process• For applying behavioral science principles

& practices in organizations • To increase individual & organizational

effectiveness.

Behavioural scienceBehavioural science (or Behavioral science) involves the systematic analysis and involves the systematic analysis and investigation of investigation of human behaviour through behaviour through controlled and controlled and experimental observations observations

Definition(s) of OD

Organization Development is an effort (1) planned, (2) organization-wide, and (3) managed from top, to (4) increase organization effectiveness and health through (5) planned interventions in organization’s “processes”, using behavioral-science knowledge. …Beckhard, 1969

Organization Development is a process of planned change – change of an organization’s culture from one which avoids an examination of social processes (especially decision making, planning and communication) to one which institutionalizes and legitimizes this examination. …Burke & Hornstein, 1972

Organization Development is a systematic application of behavioral science knowledge to the planned development and reinforcement of organizational strategies, structures, and processes for improving an organization’s effectiveness. …Cummings & Worley, 1993

Organization development is a planned process of change in an organization’s culture through the utilization of behavioral science technologies, research, and theory. …Burke, 1994

What is OD?

• It is a systematic method for gathering data about how organizations function as social systems and an analysis of the meaning of those data.

• The OD practitioners job is to search for causes and consequences of organizational functioning.

• Process: Diagnosis/Discovery, Intervention/Implementation, Evaluation

Purpose of OD

• To design interventions to close the gaps between what is and what ought to be. So, it is the fit between individuals and organization; organizational and environment; among organization’s strategy, structure and processes.

Important Components

• OD must be supported by top management to improve an organization’s visioning (picture of desired future), empowerment, learning process (interactive listening and self-examining process), and problem-solving (diagnose situation, solve problems, make decisions, & take actions) through collaborative management (participation in creating and managing a culture), emphasizing interactive work teams (organization’s building blocks).

2 Main Goals

• Improve individuals, teams, and organization functioning

• Give members the skills and knowledge to continuously improve

Where do the demands for change come from?

• Outside the organization: government, customers, competitors, market, society.

• Within the organization: strategies, profitability, diversity, new personnel, products/services

What does OD focus on?

• Culture: values, assumptions, beliefs, norms• Processes: how things get done; method for

arriving at results• Structure: overall design of the organization; how

individual work tasks are grouped

• **The system is the target of change, individuals are the instruments of change

OD is not…

• Pair of hands/Expert• Doctor prescribing

• IT IS A CONSULTATIVE PROCESS that values…– Humanism– Optimism– Democracy

Organization DevelopmentOrganization Development

O.D is a system wide application and O.D is a system wide application and transfer of behavioural science knowledge transfer of behavioural science knowledge to the planned development, improvement to the planned development, improvement and reinforcement of the strategies, and reinforcement of the strategies, structures and processes that lead to structures and processes that lead to organization effectiveness.organization effectiveness.

The orientation of O.D is action – The orientation of O.D is action – achieving results as a consequence of achieving results as a consequence of planned activities.planned activities.It is an organization improvement strategy.It is an organization improvement strategy.

OD programs are long term planned , OD programs are long term planned , sustained efforts .sustained efforts .

Organization DevelopmentOrganization Development

According to Koontz (1980) O.D. may be According to Koontz (1980) O.D. may be defined as a systematic, integrated and defined as a systematic, integrated and planned approach to improve the planned approach to improve the effectiveness of the enterprise. It is effectiveness of the enterprise. It is designed to solve problems that adversely designed to solve problems that adversely affect the operational efficiency at all affect the operational efficiency at all levels.levels.

It is an organisation wide effort, it is directed It is an organisation wide effort, it is directed towards more participative management and towards more participative management and integration of individual goals with the integration of individual goals with the organisational goals. OD is intended to create organisational goals. OD is intended to create an internal environment of openness, trust, an internal environment of openness, trust, mutual confidence and collaboration and to help mutual confidence and collaboration and to help the members of the organisation to interact more the members of the organisation to interact more effectively in the pursuit of organisational goals. effectively in the pursuit of organisational goals. Thus the organisation is enabled to cope Thus the organisation is enabled to cope effectively with external forces in the effectively with external forces in the environment.environment.

Objectives of ODObjectives of OD

1. Improved organisational performance 1. Improved organisational performance as measured by profitability, market share, as measured by profitability, market share, innovativeness. innovativeness. 2. better adaptability of the organisation to 2. better adaptability of the organisation to its environment its environment 3. willingness of the members to face 3. willingness of the members to face organisational problems and contribute organisational problems and contribute creative solutions to these problems.creative solutions to these problems.

Objectives of ODObjectives of OD

Improvement in internal behaviour Improvement in internal behaviour patterns such as interpersonal relations, patterns such as interpersonal relations, inter-group relations, level of trust and inter-group relations, level of trust and support among the role members, support among the role members, understanding one’s own self and others, understanding one’s own self and others, openness and meaningful communication openness and meaningful communication and involvement in planning for and involvement in planning for organisational development.organisational development.

Characteristic features of O.DCharacteristic features of O.D

OD focuses on culture and processes.OD focuses on culture and processes.OD encourages collaboration between OD encourages collaboration between organization leaders and members in organization leaders and members in managing culture and processesmanaging culture and processesTeams are important for accomplishing Teams are important for accomplishing tasks and are important for OD activitiestasks and are important for OD activities

Characteristic features of O.DCharacteristic features of O.D

OD focuses on the human side of the OD focuses on the human side of the organization and it also supports organization and it also supports technological and structural sides.technological and structural sides.The whole organization must participate The whole organization must participate and involve in problem solving and and involve in problem solving and decision making to make OD effective.decision making to make OD effective.OD focuses on total system change.OD focuses on total system change.

Characteristic features of O.DCharacteristic features of O.D

OD practitioners are facilitators OD practitioners are facilitators collaborators and co learners with the collaborators and co learners with the client system.client system.OD relies on action research model OD relies on action research model OD is for the betterment of both the OD is for the betterment of both the individual and the organization.individual and the organization.

characteristicsThus The characteristics of Organisational Development (OD) can be summed up as as follows:-

1. Organisational Development is an educational strategy that attempts to bring about a planned change.

2. Organisational Development relates to real organisational problems instead of hypothetical cases.

3. Organisational Development uses sensitivity training methods and lay emphasis on the significance of experiment based training.

4. Its change agents are almost external consultants outside of the organisation.

5. The external change agents and internal organisation executives establish a collaborative relationship that involves mutual trust, influence and jointly determined goals.

characteristics6. The external change agents are humanists and seek to establish a social and altruistic philosophy within an organisation.

7. The goals that the change agent seeks to achieve through OD tend to reflect human approach and aims for better conflict resolution, increased understanding and more considerable leadership.

8. The required changes in the organisation are usually the result of some immediate problems but it is a long term approach covering three to five years.

9. It is used to describe variety of change programmes and intends to change the organisational philosophies, attitudes and skills of people.

10. It is a dynamic process that involves considerable investment of money and time

11. It is research based activity and aims at conducting surveys, collection of data and evaluation of the situation

12. It works on open and adaptive system concepts and believes that organisational design and managerial performance are mutually interdependent.

History of OD

Four major stems of OD

(1) T-group (2) Survey Feedback Technology(3) Action research(4) Sociotechnical & Socioclinical approaches

(1) T-Group (Laboratory Training) – participants learn from their own actions and the group’s evolving dynamics

(2) Developing reliable questionnaires, collecting data from personnel, analyzing it for trends, and feeding the results back to everyone for action planning

(3) Diagnosing, taking action, re-diagnosing and taking new action

(4) Integrate social requirements of employees with technical requirements needed to do work in provided environment.

Four Stems of ODFour Stems of OD

LaboratoryTraining

Surveyresearch

and Feedback

ActionResearch

Socio-technical

Approaches

History of O.DHistory of O.D

OD is of relatively recent origin. It started OD is of relatively recent origin. It started in late 1950’s.emerged from four major in late 1950’s.emerged from four major backgrounds or stems. The first was the backgrounds or stems. The first was the growth of the National Training growth of the National Training Laboratories (NTL) and the development Laboratories (NTL) and the development of training groups otherwise known as of training groups otherwise known as sensitivity training or T groups.sensitivity training or T groups.

The second stem of OD was survey The second stem of OD was survey research and survey feedback both stems research and survey feedback both stems are interwined with a third the emergence are interwined with a third the emergence of action research. the classic work on of action research. the classic work on action research conducted by social action research conducted by social scientists interested in applying research scientists interested in applying research to managing change. to managing change.

The laboratory training stem The laboratory training stem

The T groupThe T groupThe idea of laboratory groups or T groups The idea of laboratory groups or T groups came into existence almost by accident came into existence almost by accident during a workshop that focussed on helping during a workshop that focussed on helping community leaders to implement fair community leaders to implement fair employment practices act.employment practices act.The workshop was held in Connecticut The workshop was held in Connecticut in1946 under the direction of the research in1946 under the direction of the research centre for group dynamics at MITcentre for group dynamics at MIT

The concept of T group developed out of the evening meetings planned to discuss the observations the researchers made during the conferenceA useful tool about group processes and one’s impact on others through observing one’s own behaviour in a group session and receiving feedback about that behaviour from others became a great learning experience .

The participants not only produced data but processed and examined the data in an effort to learn about group dynamics from their own experience.

An entirely new way of studying group dynamics was discovered.

Also called laboratory training , a T group Also called laboratory training , a T group is designed to make participants more is designed to make participants more aware of themselves, their capacities and aware of themselves, their capacities and the way they effect others. the group has the way they effect others. the group has no pre-planned task or agenda . An expert no pre-planned task or agenda . An expert often called facilitator is present who often called facilitator is present who intervenes in the process only to help intervenes in the process only to help solve problems which the group is unable solve problems which the group is unable to solve.to solve.

An intergroup relations workshop held at An intergroup relations workshop held at the state teachers college in New Britain the state teachers college in New Britain influenced the emergence of laboratory influenced the emergence of laboratory training.training.Kurt Lewin was one of the important Kurt Lewin was one of the important researcher of the t group training researcher of the t group training experimnets.experimnets.

Laboratory training essentially Laboratory training essentially unstructured small group situations in unstructured small group situations in which participants learn from their own which participants learn from their own actions and the group’s evolving dynamics actions and the group’s evolving dynamics began to develop from various began to develop from various experiments in using discussion groups to experiments in using discussion groups to achieve changes in behaviour in back achieve changes in behaviour in back home situations. home situations.

Typical T groups were composed of strangers- individual members of the groups did not know each other before they arrived for the group session. This led to the problem of skill transfer to “back home situations” . Skills learned during the T groups were not necessarily transferred to organizational settings once the participants returned to their home ground.

This was a major drawback . The idea of stranger group was rejected and shifted to working with ongoing work groups in the organization.Thus the focus of intervention shifted from interpersonal to organizational level.

The experiments contributed two major The experiments contributed two major principles of ODprinciples of ODOne of the primary targets of change in One of the primary targets of change in OD is groups not merely individualsOD is groups not merely individualsThe participants in the group sessions can The participants in the group sessions can learn about group process by examining learn about group process by examining the data of their own experience.the data of their own experience.

T group T group The stated goals of T group experiences The stated goals of T group experiences includedincluded1. self insight1. self insight2. understanding the conditions which 2. understanding the conditions which inhibit or facilitate group functioninginhibit or facilitate group functioning3. understanding interpersonal operations 3. understanding interpersonal operations in groupsin groups4. developing skills for diagnosing 4. developing skills for diagnosing individual, group and organizational individual, group and organizational behaviourbehaviour

Survey FeedbackSurvey Feedback

The second major stem in the history of OD is The second major stem in the history of OD is survey feedback. It refers to attitude surveys survey feedback. It refers to attitude surveys and data feedback in workshops sessions.and data feedback in workshops sessions.The history of this stem revolves around the The history of this stem revolves around the techniques and approach developed over a techniques and approach developed over a period of years by staff members at the period of years by staff members at the survey research centre SRC of the university survey research centre SRC of the university of Michigan.of Michigan.

In one of the earlier experiments Mann In one of the earlier experiments Mann reported success in administering a reported success in administering a company “de survey” of management and company “de survey” of management and employee opinions and attitudes, the study employee opinions and attitudes, the study was conducted at Detroit Edison beginning was conducted at Detroit Edison beginning in 1948. in 1948.

Data regarding the viewpoints of non-Data regarding the viewpoints of non-supervisory employees towards their supervisory employees towards their supervision , promotion opportunities, supervision , promotion opportunities, work satisfaction, and other facets of their work satisfaction, and other facets of their work situation, similar reactions from first work situation, similar reactions from first and second line employees and from and second line employees and from higher levels of management.higher levels of management.

The major findings of the survey were first reported to top management and then progressed down through the organisation. The feedback sessions were conducted in task groups, with each supervisor and his or her immediate subordinates discussing the data together.

Later eight accounting departments asked Later eight accounting departments asked for repeat of the survey. This generated a for repeat of the survey. This generated a new cycle of meetings.new cycle of meetings.

Conclusions drawn wereConclusions drawn were1.An intensive group discussion procedure 1.An intensive group discussion procedure for utilizing the results of the employee for utilizing the results of the employee questionnaire can be a effective tool fopr questionnaire can be a effective tool fopr introducing positive change in the introducing positive change in the organization.organization.

2. the effectiveness partly deals with the system of human relationships as a whole and it deals with each manager supervisor and employee in the context of his own job, his own problems and his own work relationships.

Action Research stem

Action research is the process of systematically collecting research data about an ongoing system relative to some objective goal or need of that system , feeding these data back into the system taking actions by altering selected variables within the system based both on the data and on hypotheses and evaluating the result of actions by collecting more data.

Action Research stem

Action research attempts to meet the dual goals of making action more effective and building a body of scientific knowledge around that action.Action in this context refers to programs and interventions designed to solve problems and improve conditions.

William F. Whyte and Edith L. Hamilton used action research in their work with Chicago’s tremont Hotel in 1945 and 1946. Kurt Lewin and his students conducted numerous action research projects in mid 1940’s and 1950’s. the work of these scholars and practitioners in inventing and utilizing action research was basic in the evolution of OD.

The Sociotechnical and socioclinical stem

The fourth stem of OD is the evolution of socioclinical and sociotechnical approaches to helping groups and organizations. A clear historical and conceptual connection can be made between the group dynamics field and the sociotechnical approaches to assisting organizations.

Tavistock’s sociotechnical approach is particularly significant , it grew out of Eric Trist’s visit to a British coal mine, his insights as to relevance of Lewin’s work on group dynamics and Bion’s work on leaderless groups resulted in a new approach to solving mine problems.

The results of team approach were remarkable in terms of safety and productivity.Trist’s subsequent experiments in work design and the use of simultaneous work teams in coal mining were the forerunners of other work redesign experiments in various industries in Europe, India, Australia and U.S.A.

The sociotechnical approach focused on the nonexecutive ranks of organizations especially the redesign of work. The focus on teams and the use of action research and participation was consistent with evolving OD approaches.

Sociotechnical Systems (STS)

Largely associated with experiments that emerged under the auspices of the Travistock Institute in Great Britain.Efforts generally attempted to create a better “fit” among the technology, structure, and social interaction of a particular production unit in a mine, factory, or office.

Sociotechnical Systems (STSTwo basic premises:

Effective work systems must jointly optimize the relationship between their social and technical parts.

Such systems must effectively managed the boundary separating and relating them to the environment.

Highly participative among stakeholders: Employees, engineers, staff experts, and managers.Feature the formation of autonomous work groups (i.e. self-managed).Theory suggested that effectiveness, efficiency, and morale will be enhanced.

The changing context

The context of OD is changing from 1980’s and 1990s. The environment has started becoming more turbulent.There are mergers, acquisitions, technological innovations, bankruptcies and downsizing.These changes create opportunities for OD applications.

The changing context

In this context second generation OD IS evolving. Many new emerging concepts are given consideration by researchers.

Second-Generation OD

Organization Transformation

Organizational Culture

Learning Organization

Total Quality Management

Visioning and Future Search

Business Process Reengineering

Quality of Work Life

Organization TransformationOrganization Transformation is a multi dimensional. Multi level, qualitative, discontinuous, radical organizational change involving paradigmatic shift.It is considered to be massive and revolutionary in nature.It is seen as requiring more demands on top leadership, more visioning, more experimenting, more time and manage other variables, that occurs because of massive change.

Organizational CultureOrganizational Culture also needs change to make the organisation effective. Schein has devised interventions to help leaders and employees identify those cultural assumptions that will assist the organization in attaining its goals and those that hinder goal attainment.

Organizational CultureOrganization culture is made up of organization’s artifacts, such as office layout and status symbols, the values underlying these artifacts and the assumptions behind those values.Through questionnaires actual and desired norms and what changes are needed are identified.

Learning OrganizationArgyris, Argyris and Schon and Senge have done extensive work on how organizations learnSenge discussed about the learning disabilities that hinder organizations.He has conducted workshops in which he uses games and exercises to create an awareness of these disabilities and to develop different ways of thinking about complex problems.

Total Quality ManagementTotal Quality is typically a companywide effort seeking to install and make permanent a climate where employees continuously improve their ability to provide on demand products and services that customers will find of particular value.TQ efforts encourage employee involvement, demand teamwork, push decision making power to lower levels and reduce barriers between people.

Also called continuous quality improvement.A combination of a number of organization improvement techniques and approaches, including the use of quality circles,statistical quality control, statistical process control, self-managed teams and task forces, and extensive use of employee participation.Features that characterize TQM:

Primary emphasis on customers. Daily operational use of the concept of internal customers. An emphasis on measurement using both statistical quality control and statistical

process control techniques. Competitive benchmarking. Continuous search for sources of defects with a goal of eliminating them entirely. Participative management. An emphasis on teams and teamwork. A major emphasis on continuous learning. Top management support on an ongoing basis

Total Quality Management (TQM)

.

Visioning and Future SearchSenge believes that organizational members develop and share their own personal visions, and he claims that a vision is not truly shared until it connects with the personal visions of people throughout the organization.This type of connection requires OD like processes to get implemented.

large scale Meetings Richard Beckhard wanted to improve the effectiveness of large scale meetings.He introduced the idea of confrontation meetings which was about getting the total management group of an organization together in a one day session to diagnose the state of the system and to make plans for quickly improving conditions.

large scale MeetingsWeisboard advices that conferences should involve all of top management and people from as many functions and as many levels as possible to make action plans.

ReengineeringDefinition – the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed.Reengineering focuses on visualizing and streamlining any or all business processes in the organization.Reengineering seeks to make such processes more efficient by combining, eliminating, or restructuring activities without regard to present hierarchical or control procedures.Reengineering is a top-down process; assumes neither an upward flow of involvement nor that consensus decision making.

Business Process Reengineering

Quality of Work LifeFocus on team workGain sharing plansSkilled based pay plansAppreciative inquiry

Quality of Work Life (QWL)

Organizational improvement efforts. Attempt to restructure multiple dimensions

of the organization. To institute a mechanism which introduces

and sustains changes over time.

An increase in participation by employees and increase in problem solving between the union and management.

General Motors’ QWL: Voluntary involvement on the part of employees. Union agreement with the process and participation in it. Assurance of no less of jobs as a result of the programs. Training of employees in team problem solving. The use of quality circles where employees discuss problems

affecting the performance of the plant and the work environment. Work team participation in forecasting, work planning, and team

leader and team member selection. Regular plant and team meetings to discuss such matters as

quality, safety, customer orders, and schedules. Encouragement of skill development and job rotation within work

teams. Skill training. Responsiveness to employee concerns.