Organization Development Concept and Process Tarak Bahadur KC
Organization Development: Concept and Process -Tarak Bahadur KC, Ph. D tarakbkc@gmail. com Shilu Pradhan 1
Presentation Outline OD: Meaning, Characteristics, Objectives, Elements n OD: System Change or Culture Change? n Steps in OD / OD as a Process n 2
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Forethought “It is not the strongest of the species that survive, nor the most intelligent but, the one most responsive to change” Charles Darwin
Organisation n n is an establishment or a workplace where activities are carried out in order to achieve a defined purpose. is an entity with: q q q Specific objectives Structure of authority Division of work Resources System of communication A set of customs (culture) Development q is the notion that an organization may become more effective over time at achieving its goals. 5
Reasons for Difficulties in Organisations n No clear vision / direction n Lack of response to environmental influences n Poor management / organisation structure n Failure to select appropriate technology n Communication n Misfit between organisation and staff goals, etc. 6
Organizational Issues Organizational members do not behave in the way required by the formal structure of their organization, because, n n the formal structure of the organisation is not designed according to the common behavioural pattern of organisational members (organizational culture), and the organizational culture is not compatible with the type of structure that exists in the organization. 7
Reasons for Change in Why organisations need change? Organisations. Survival / Growth Composition of Work force / Diversity Increased Public Consciousness Globalisation Union / Staff ORGANISATION Regulation / Govt. Policies Merger Technology Donors Cost Pressure New Management 8
Exercise: The Organisational Style Index 9
Approaches to change n Lewin’s three step model n Action Research n Organizational Development
Lewin’s three step model 11
Action Research 12
Organisation Development n OD is a complex strategy intended to change the beliefs, attitudes, values, and structure of organizations so that they can better adapt to new technologies, markets, and challenges. - Warren Bennis 13
n n OD is an effort, planned, organisation wide, and managed from the top, to increase organisational effectiveness and health through planned interventions in the organisation’s processes, using behavioural science knowledge. -Richard Beckhard OD is a long term effort, led and supported by top management, to improve an organization's visioning, empowerment, learning and problem solving processes, through an ongoing, collaborative management of the organisation culture. 14
OD is defined as a… Planned activity Effects entire organisat ion Requires support from all levels Aims to improve organisational effectiveness and health Goals flow from deliberate intervention 15
Characteristics n n n Long range in perspective against 'quick fix' – coupled with strategic planning, Supported by top managers, Emphasizes employee participation, Focuses on structure, culture and processes, Initiated in response to need / problem like turnover, 16
Objectives of OD n n n Increase the level of trust and support among organizational members, Increase the incidence of confrontation of organizational problems, both within groups and among groups, in contrast to sweeping problems under the rug, Improve the ability of the organisation to adapt to its environment, contd…. . 17
Objectives … n Increase the openness of communications laterally, vertically and diagonally, n Increase the level of personal enthusiasm and satisfaction in the organization, n Find synergistic solutions to problems with greater frequency, and n Increase the level of self and group responsibility in planning and implementation. 18
Elements of an OD n Technical- work flow, job design, Programme required task roles, etc. n Managerial- organisation’s structure and policies, decision making approach, etc. n Human- informal organisation, behavioural norms, satisfaction of personal needs, motivational level and attitude of employees, etc. 19
Exercise: ABC Department 20
OD: System Change or Culture Change? Most OD focuses on changing organisation’s system, not its culture. System Analysis An organization is a complete functioning unit made up of integrated systems that allow it to operate to accomplish its goals. The subsystems of an organization include: q q q the social system, the technical or operational system, and the administrative system. 21
Culture Analysis Culture is a system of shared values (what is important) and beliefs (how things work) that interact with an organisation’s people, organisational structures and control system to produce behavioural norms (the way people do things). Components of organizational culture: - values, - norms, and - artifacts. 22
System Change vs. Culture Change System Change Problem Oriented More easily controlled Involves making incremental changes in systems Improving organization output / measurable outcomes Criteria Culture Change Orientatio Value oriented n Control Largely uncontrollable Degree Involves transforming basic assumptions Focus On the quality of life in an organization Involves discovering non Diagnosis Involves examining -alignments between dysfunctional effects of subsystems core assumptions Leadership change is 23 not essential p crucial
System Change or Culture Change? The chosen approach should be contingent on the type of problem being considered since the system and culture approaches employ different change strategies and technologies. Those interested in managing change in organisations often need both lenses to diagnose problems in organisations and select appropriate change strategies most effectively. 24
OD Process n The OD Process is based on the action research model which begins with an identified problem or need for change. The process proceeds through q q q n assessment, planning of an intervention, implementing the intervention, gathering data to evaluate the intervention, and determining if satisfactory progress has been made or if there is need for further intervention. The process is cyclical and ends when the desired developmental result is obtained. 25
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Problem Identification The OD process begins when an organization recognizes that a problem exists which impacts the mission or health of the organization and change is desired. It can also begin when leadership has a vision of a better way and wants to improve the organization. An organization does not always have to be in trouble to implement organization development activities. 27
Situation / Needs Assessment n Once the decision is made to change the situation, the next step is to assess the situation to fully understand it. n A Needs Assessment is a systematic exploration of the way things are and the way they should be. These "things" are usually associated with organizational and/or individual 28
Needs Assessment n This assessment can be conducted in many ways including: documentation review, q organizational sensing, q focus groups, q interviewing, or q surveying. n The assessment could be conducted by outside experts or by members of the organization. q 29
Types of Need n Normative q Defined as falling below a standard criterion established by custom, authority, or general consensus n Relative q Measured by the gap between the level of service between similar communities
Types … n Expressed q Defined in terms of the number of people who actually have sought help n Perceived q Defined in terms of what people think their needs are or feel their needs to be
Steps in Assessment Step 1. Perform a "gap" analysis Step 2. Identify priorities and importance Step 3. Identify causes of performance problems and/or opportunities Step 4. Identify possible solutions and development opportunities 32
Needs Assessment Exercise n Work in 4 groups n Share your individual experience in your group about situation that requires improvement in your organization n Build consensus in group the area of problem or need
Needs … n n Frame the problem as to be resolved in the four level as follows: 1. Individual 2. Job/ Task 3. Teams/Departments/Divisions 4. Organizational A group will work in any one level Prepare 3 -5 concrete points of the stated needs for OD Present your work in plenary
Action Planning n After the situation is assessed, defined, and understood, the next step is to plan an intervention. The type of change desired would determine the nature of the intervention. Interventions could include: q q training and development, team interventions, such as n n q q team building for management or employees or the establishment of change teams, structural interventions, or individual interventions. 35
OD Interventions n A set of planned change activities intended to improve organization's effectiveness, including quality of work life and productivity. n In a sense, intervention is any event, directed toward improving organizational effectiveness, that disrupts an organization’s normal way of operating. - Smither, R. et al. n Interventions sometimes involve a consultant from outside the organization, but many times management itself
Conceptual Framework OD Interventions Output Outcome Human Output Perceived Org. Performance Individual Intervention • • • Selection T&D Counseling Promotion QWL Structural Intervention • Org. design • Job design • Right sizing • Individual commitment & Involvement • Improvement in cereal production Process Intervention • • Goal setting Team building Decision making Manuals Based on Beer, 1980
Integrated Approach to Change Integration of these three strategies for successful OD intervention is must.
Implement the Plan Once the intervention is planned, it is implemented. Gather Data During and after the implementation of the intervention, relevant data is gathered. The data gathered would be determined by the change goals. For example, if the intervention were training and development for individual employees or for work groups, data to be gathered would measure changes in knowledge and competencies. 39
Analyse Results and Feedback This data is used to determine the effectiveness of the intervention. It is reported to the organization’s decisionmakers. The decision-makers determine if the intervention met its goals. If the intervention met its goals, the process can end, which is depicted by the raising of the development bar. If it did not, the decision is made whether to continue the cycle and to plan and carry out another intervention or to end it. 40
Conditions for Success of OD Top management must support strongly, n Changes must be made in structures and policies and must be committed with any changes in attitudes which the programme produces, n All portions of the organisation must change in a synchronised manner, and n Sufficient time must be allowed for all those involved to workout their n 41
Conclusion n n OD is concerned with the development of whole organization or improving it’s effectiveness, and It is like a ‘health check’ where one diagnoses how healthy the organisation is and how well it is performing. On this basis, right decision and measures taken to improve the performance of organisation by developing technical skills and leadership, and changing structure and culture for achieving 42
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