Organization Development Concept and Process Tarak Bahadur KC

Organization Development: Concept and Process -Tarak Bahadur KC, Ph. D tarakbkc@nasc. org. np 1

Contents n n n Organisation: Concerns, Reasons for Change OD: Meaning, Characteristics, Orientation, Objectives, Elements OD: System Change or Culture Change? Steps in OD / OD as a Process Conditions for Success 2

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. 3

Emerging Concerns of Organisation n Flat n Flexible n Diverse n Quality based culture n Client orientation n Networked 4

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. 5

Reasons for Change in Survival / Growth Organisations Composition of Work force Increased Public Consciousness Globalisation Increased Diversity ORGANISATION Regulation Competition Technology Mergers and Acquisitions Cost Pressure Changing Markets New Management 6

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 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 7

OD is defined as a… Planned Activity Effects entire Organisation Requires support from all levels Aims to improve organisational effectiveness and health Goals flow from deliberate intervention 8

Characteristics n n n Long range in perspective against 'quick fix' – coupled with strategic planning Supported by top managers Emphasises employee participation Focuses on structure, culture and processes Facilitated by consultant /change agent 9

Characteristics contd…. . n Initiated in response to need / problem like turnover, absenteeism, low job satisfaction n Views organization as a systeminterdependence n Involves extensive planning: deal with resistance, systematic diagnosis, develop change plan 10

OD Orientation n OD is oriented to improving organisational effectiveness by: q helping members of the organisation to gain the skills and knowledge necessary to solve problems by involving them in the change process, and q by promoting high performance including financial returns, high quality products and services, high productivity, continuous improvement and a high quality of working life. 11

Objectives of OD 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. Create an environment in which authority of assigned role is augmented by authority based on knowledge and skill. Solving problems and improving performance. 12 contd…. .

Objectives of OD n contd… 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. n Increase the level of self and group responsibility in planning and implementation. “Improve the overall effectiveness of the organisation. ” 13

Elements of an OD n Technical- work flow, Programme job design, 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. 14

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. 15

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. 16

System Change vs. Culture System Change Criteria Culture Change Problem Oriented Orientation Value oriented More easily controlled Control Largely uncontrollable Involves making incremental changes in systems Degree Involves transforming basic assumptions Focuses on improving organization output / measurable outcomes Focuses on the quality of life in an organization Diagnosis involves discovering non-alignments between subsystems Diagnosis involves examining dysfunctional effects of core assumptions Leadership change is not essential Leadership change is crucial 17

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. 18

OD Process 19

Conditions for Success of OD n Top management must support strongly 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 n Sufficient time must be allowed for all those involved to work out their problems n 20

Conclusion OD is concerned with the development of whole organisation or improving it’s effectiveness. We can compare an OD exercise with 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 objectives. 21

Thank You 22