Chapter 12 Organizational Development

After reading this chapter, you should be able to: Understand organizational development. Understand the process of organizational development. List the various approaches to organizational development.

After reading this chapter, you should be able to (contd.): Explain organizational development interventions. Explain the benefits of organizational development interventions.

Organizational development Organizational development is a deliberate and systematic process adopted to enhance the ability of an organization to identify, understand and accept changes and to benefit from such changes.

Objectives of organizational development To improve the ability of the organization to plan and manage changes. To identify and allocate the precious resources of the organization in the most productive manner.

Objectives of organizational development (contd.) To improve the organizational and individual efficiency for effective accomplishment of organizational goals. To achieve improved efficiency in the team-building process.

Objectives of organizational development (contd.) To develop efficient leadership styles and better decision-making processes. To obtain the employees’ trust, cooperation and commitment. To restructure the organizational missions, objectives and tasks in a judicious and well-timed manner continuously.

Objectives of organizational development (contd.) To identify and resolve the potential conflicts among individuals. To ensure the long-term growth and health of the organization.

Organizational development process

Organizational development process (contd.) Need identification Environment evaluation Action plans based on evaluation Actual intervention Performance analysis Stabilization and disengagement

Need identification First step in the OD process is the identification of the relevant problems caused by changes in the external environment. Usually the presence of a problem is an important trigger for undertaking OD.

Need identification (contd.) Organizations usually nominate internal or external change agents to carry out the OD process. These change agents assess the situation and then design and conduct the necessary OD intervention programmes.

Environment evaluation At this stage, all the necessary information required by the change agents regarding the problem and the existing situation is collected and provided to them. The information required is usually collected through interviews, observation, investigation, task groups or any other committee constituted specifically for this purpose.

Action plans based on evaluation At this stage, the change agents analyse the information available and also consult the stakeholders like the management, employees and trade unions, before framing the actual intervention programme known as action plan.

Action plans based on evaluation (contd.) The action plan may include, among others, orientation programmes, team- building, career planning, change management, training and development, e-learning, coaching, leadership development and talent management.

Actual intervention At this stage, the intervention programmes are implemented carefully, usually in a phased manner. Throughout the implementation process, the change agents continually gather all relevant information about the different aspects of the intervention programme.

Performance analysis A complete performance review is done by the change agents at the end of the intervention programmes to assess the action plan’s effectiveness.

Stabilization and disengagement At this stage, the change agents gradually disengage themselves from the process and permit the organization and the system to continue with the rest of the activities.

Approaches to the study of organizational development The approaches to OD are Data-driven approach System design approach Contingency approach

Data-driven approach In this method, the data collected about the environment largely drive the OD process. The four general forms of data used in this approach are Interview data Focus group data Organizational survey data Multiple survey feedback

System design approach In this approach, the entire organization is viewed as a complex system composed of inter-related and interdependent sub-systems. These sub-systems are unified by appropriate designs to achieve the organizational goals or objectives.

Contingency approach In an uncertain situation, the contingency approach attempts to study the different possible scenarios in the environment and assess their implications for the organization. It identifies the “if–then” relationship and proposes changes in the goals, strategies and direction of the organization, if necessary.

Contingency approach (contd.) It helps the organizations in developing plans and counter-plans continually on the basis of their understanding of the emerging situation.

Types of OD intervention programmes Team-building Survey feedback Training and development Leadership development Process consultation interventions

Types of OD intervention programmes (contd.) Force-field analysis Third-party peacemaking Human resource management Total quality management

Types of OD intervention programmes (contd.)

Benefits of OD intervention programmes Better interaction among the members of the organization. Employees’ skills enhancement in the changing environment. Systematization of the change management process. Employee evaluation and feedback. Prevention rather than correction.