13.10.16

ORGANISATIONAL DEVELOPMENT



CONCEPT OF ORGANISATION DEVLOPMENT

“OD is a response to change, a complex educational strategy intended to change the beliefs, attitudes, values and structure of organizations so that they can better adapt to new technologies, markets, and challenges and the dizzying rate of change itself.”
“Organization development is a planned process of change in an organization culture through the utilization of behavioral science technology, research and theory,.”
Organization development is a long term effort to improve an organization’s problem – solving and renewal processes, particularly through a more effective and collaborative management of organization culture – with special emphasis on the culture of formal work teams – with the assistance of a change agent or catalyst and the use of the theory and technology of applied behavior science including action research.

FEATURES OF ORGANISATION DEVELOPMENT
1.     Planned change: OD is a strategy of planned change for organizational improvement. This ‘Planned’ emphasis separates OD efforts from other kinds of more haphazard changes that are frequently undertaken by organizations.
2.     Comprehensive change: OD efforts focus on comprehensive change in the organization rather than focusing attention on individuals, so that change is easily absorved. The concept of comprehensive change is based on the systems concept open, dynamic and adaptive system. OD efforts take an organization as an interrelated whole and no part of it can be changed meaningfully without making corresponding changes in other parts.
3.     Long range change: OD efforts are not meant for solving short – term, temporary or isolated problems. Rather, OD focuses on the elevation of an organization to a higher level of functioning by improving the performance and satisfaction of organizational members on long term basis. These long – term efforts are time consuming. Therefore, OD experts emphasize that the process takes months or in many cases, years to implement. Although there may be pressure for quick results the OD process is not intended to be stop – gap measure.  
4.     Dynamic Process: OD is a dynamic process and includes the efforts to guide and direct changes as well as to cope with or adapt changes imposed. It recognizes that organizational goals change, so the methods of attaining these goals should also change. Thus, OD efforts are not one – shot actions, rather they are ongoing, interactive and cyclic process.
5.     Participation of change agent: Most OD emphasis the need for an outside, third party change agent, or catalyst. They discourage ‘do it yourself’ approach. There is a close working relationship between the change agent  and the target organizational members to be changed. The relationship involves mutual trust, joint goals and means and mutual influence. The change agent is a humanist seeking to get a humanistic philosophy in the organization. He shares a social philosophy about human values.
6.     Emphasis on intervention and action research: OD approach results in an active intervention in the ongoing activities of the organization. Action research is the basis for such intervention. A change agent in OD process does not just introspect the people and introduce changes, rather, he conducts surveys, collects relevant data evaluates these data, and then takes actions for intervention. He designs intervention strategies based on these data.
7.     Normative educational process: OD is based on the principle that norms form the basis for behavior and change is a re-educative process of replacing old norms by the new ones. This is done to arrive at certain desirable outcomes that may be in the form of increased effectiveness, problem – solving and adaptability for the organization as a whole. At the individual level, OD attempts to provide opportunities to be ‘human’ and to increase awareness, participation and integrate individual and organizational goals.

DIFFERENCE BETWEEN MANAGEMENT DEVELOPMENT AND ORGANIZATION DEVELOPMENT

            Factors
Management development
            Organization Development    
Objective
Increasing manager’s contribution to goal accomplishment.
changing the nature of the organization
Focus
Train and equip employees and Managers to perform better in existing organization
focus on design, not on the managers; focus on achieving improvements in design

Approach Time
Educative and training Short-range
Problem-solving approach. Long-range strategy for organizational innovation and renewal 
Specialist
No special recruitment
Trained specialists required


ROLE OF ORGANISATION DEVELOPMENT:

Organization development, as a long – term strategy for organizational change, plays key role in organizational improvement. The basic problem in a change effort which is not comprehensive is that it does not work properly unless there is a proper change in the internal environment of the organization in which people work. Since OD attempts to being comprehensive change in the organization, it is quite suitable for improving organizational performance on  long – term basis. Thus OD can be utilized for the following results in the organization:

1.     To place emphasis on humanistic values and goals consistent with these values;
2.     To treat each human being a s a complex persons with a complex set of needs important in his work and his life.
3.     To increase the level of trust and mutual emotional support among all organizational members.
4.     To increase the level of enthusiasm and personal satisfaction at all levels of the organization.
5.     To increase the level of self and group responsibility in planning and its implementation.
6.      To increase the openness of communications in all directions – vertically, horizontally and laterally.
7.     To create an environment in which authority in which authority of assigned role is augmented by authority based on knowledge and skills.

PROBLEMS IN ORGANISATION DEVELOPMENT
  
Organization development, however has invited sharp criticism as a strategy to increase organizational viability and effectiveness because many OD programmes have failed. Much of the enthusiasm created at the beginning of OD programmes vanished over the period of time. In early 60’s, OD became quite successful with many professional consultants offering high services and programmes to various organizations. By 70’s however, substantial disenchantment with OD became evident because of many controversial OD techniques like sensitivity training, confrontation techniques etc. research studies have also failed to conclude significant contributions of OD in all organizations, particularly in bottom – line ones. Therefore, OD can not be taken as panacea for curing all organizational problems. In general, OD is criticized on the following lines:

1.     There is discrepancy between ideal and real situations. OD ties to achieve ideal without taking into account real.
2.     OF makes people unit for the real organizational world because no organizations can fully adopt open system concept.
3.     Resistance to change is a natural phenomenon and OD puts undue pressure to change. Hence, it fails even as a long term strategy.
4.     OD fails to motivate people with low level of achievement needs. If an organization is laden with these people, it is useless to try OD.
5.     OD programmes are often quite costly and only large organizations can afford this luxury without any guarantee of positive outcome.

It can be seen that many of these criticisms are based on reality and experience. People realized its dysfunctional aspects only when many OD efforts failed. However it may be emphasized that OD programmes are likely to fail when these are not undertaken properly. In fact, there have been cases of wrong implementation of OD programmes and hence failure. For example, Evans has identified three factors which have been possible for the failure of OD programmes:

1.     Failure of the management consultant group to correctly tailor the programme to actual needs of the organization.
2.     Failure to correctly model appropriate personnel behavior in the programme.
3.     Failure to increase employee motivation through participation and development of personal growth and self – esteem.

Thus it can be visualized that OD itself may not be dysfunctional but application may be. Therefore in order to make best use of OD efforts, some specific efforts are required. Some of these efforts are as follows:

1.     There should be genuine support of OD programme from top management.
2.     Organization must formulate the objectives of OD programme very clearly and specifically.
3.     Enough time should be allowed so that the effects of OD programme are realized.
4.     There should be proper use of OD interventions. These should be based on the specific needs of the organization.
5.     Only fully competent OD consultant should be pressed for the service and he should develop understanding with internal change agents.

PROCESS OF ORGANISATION DEVELOPMENT

OD can be taken as  a process of changing people and other related aspects of an organization. Thus it contains of many subprocesses or steps. However, theorists and practitioners both differ about the various steps and their sequence in OD. This is because most of the ideas in OD have generated from practices and these practices have differed from organization to organization. It is not necessary that each organization may involve all the steps with same results from OD strategy. As such, uniformity in  the steps involved cannot be expected. Blake and Mouton provide six steps in OD programmes: studying the managerial grid as a theoretical framework to understand behavioral dynamics of organizations culture, study of the dynamics of the actual work team, launching similar activities in different units, engaging the top team, implementation tactics for transforming the organization into the above model, and measurement of changes. Beckhard provides five steps: diagnosis, action and process maintenance.

The difference in the various steps as described by various scholars and practitioners is due to the defining scope of a particular step. Moreover, since OD is on ongoing interactive process – a process is an identifiable flow of interrelated events moving over time towards some goal – many of the events overlap, and in real practice, a clear cut demarcation between various events becomes a difficult. In OD programmes, various steps may be problem identification and diagnosis, planning change strategy, intervening in the system, and evaluation. These step are not exclusive to each other and do not follow the same sequence but interact with each other.  

1.     PROBLEM IDENTIFICATION AND DIAGNOSIS: OD programme leads to meet certain objective in the organization because OD is a means and not an end in itself. Thus it attempts to solve some organizational problem. The problem may be a gap between desired path of action and actual path of action, that is the organization fail to meet its objective on a long term basis. OD programme starts with the identification of the help in identifying the problems. Diagnosis gives correct identification of the problem and its causes and determines the scope of future course of action. Diagnosis in OD involves a number of techniques concerned with identifying concerns and issues, establishing priorities and translating them into aims and objectives. At this stage itself, the collection and analysis of data is undertaken. Major consideration is given to techniques and methods used to desirable organization system, the relationships between the element or sub – systems and ways of identifying major problems and issues.

Problem identification flows almost immediately into analysis. Once a problem is identified, the analysis will show why the problem exists. The analysis will identify the variables that can be altered or changed by the organization and its management, such as leadership style, organization structure, organizational objective, etc. In other words, analysis brings the identification of environment that has caused problems.

2.     PLANNING STRATEGY FOR CHANGE: When the problems are diagnosed, the OD practioner – either consultant or management, but preferably consultant – plans the various courses of action in OD. Attempts are made to transform diagnosis of the problem into a proper action plan involving the overall goals for change, determination of the basic approach for attaining these goals, and the sequence of detailed scheme for implementing the approach. Although it is a relatively simple matter to identify changes after they have occurred, it is considerably more difficult to influence the direction thrust of changes while they are under way. Thus, planning and implementation of change while they are under way. Thus, planning and implementation of change are interdependent; the ay in which change is planned has an impact on the way in which it is carried out and conversely the problems of implementing change have an impact on the ay in which it is planned.

3.     INTERVENING IN THE SYSTEM: Intervening in the system refers to the planned programme activities during the course of an OD programme. these planned activities bring certain changes in the system which is the basis objective of OD. There may be various methods through which external consultant intervenes in the system, such as education and laboratory training, process consultation, team development etc. which will be discussed later.


4.     EVALUATION: This step relates to evaluate the results of OD programmes so that suitable actions may be followed up. Since OD is a long process, there is an urgent need for careful monitoring to get precise feedback regarding what is going on as soon as an OD programme starts. In this respect, the use of critique sessions, systematic appraisal of change efforts and pre – post – training behavioral patterns are quite effective. This step again involves data gathering because such data will provide the basis for OD efforts evaluation and suggest suitable modification or continuation of OD efforts in similar direction. All parties concerned in OD programme need to realize that if major organizational improvements are to be made and sustained, managerial practices with respect to many sub – systems will need to be modified if these practices are not congruent with the OD effort because there exists the possibility of slip back and regression to old behavioral pattern if adequate changes in other parts integrating behavioral change are not made.


Chapter II CORPORATE STRATEGY

Our principles: We recognize that we must integrate our business values and operations to meet the expectations of our stakeholders. They ...