1. Organization Development: Concept and Process -Tarak Bahadur KC, PhD Shilu Pradhan

2. Presentation Outline
OD: Meaning, Characteristics, Objectives, Elements
OD: System Change or Culture Change?
Steps in OD / OD as a Process
Conditions for Success

4. Forethought
“It is not the strongest of the species that survive, nor the most intelligent but, the one most responsive to change”
Charles Darwin

5. Organisation Development
is an establishment or a workplace where activities are carried out in order to achieve a defined purpose.
is an entity with:
Specific objectives
Structure of authority
Division of work
Resources
System of communication
A set of customs (culture)
Development
is the notion that an organization may become more effective over time at achieving its goals.

6. Reasons for Difficulties in Organisations
No clear vision / direction
Lack of response to environmental influences
Poor management / organisation structure
Failure to select appropriate technology
Communication
Misfit between organisation and staff goals, etc.

7. Organizational Issues
Organizational members do not behave in the way required by the formal structure of their organization, because,
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.

8. Reasons for Change in Organisations
Why organisations need change?
Survival / Growth
Composition of Work force / Diversity
Increased Public Consciousness
ORGANISATION
Globalisation
Union / Staff
Regulation / Govt. Policies
Merger
Technology
Cost Pressure
Donors
New Management

9. Exercise: The Organisational Style Index

10. Approaches to change Lewin’s three step model Action Research
Organizational Development

11. Lewin’s three step model

12. Action Research

13. Organisation Development
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

14. 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.

15. 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

16. Characteristics
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, absenteeism, low job satisfaction, etc., and
Facilitated by consultant /change agent.

17. Objectives of OD
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…..

18. Objectives …
Increase the openness of communications laterally, vertically and diagonally,
Increase the level of personal enthusiasm and satisfaction in the organization,
Find synergistic solutions to problems with greater frequency, and
Increase the level of self and group responsibility in planning and implementation.
“Improve the overall effectiveness of the organisation.”

19. Elements of an OD Programme
Technical- work flow, job design, required task roles, etc.
Managerial- organisation’s structure and policies, decision making approach, etc.
Human- informal organisation, behavioural norms, satisfaction of personal needs, motivational level and attitude of employees, etc.

20. Exercise: ABC Department

21. 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:
the social system,
the technical or operational system, and
the administrative system.

22. 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.

23. System Change vs. Culture 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
Improving organization output / measurable outcomes
Focus
On the quality of life in an organization
Involves discovering non-alignments between subsystems
Diagnosis
Involves examining dysfunctional effects of core assumptions
Leadership change is not essential
Leadership
Leadership change is crucial

24. 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.

25. OD Process
The OD Process is based on the action research model which begins with an identified problem or need for change. The process proceeds through
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.

27. 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.

28. Situation / Needs Assessment
Once the decision is made to change the situation, the next step is to assess the situation to fully understand it.
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 performance.

29. This assessment can be conducted in many ways including:
Needs Assessment
This assessment can be conducted in many ways including:
documentation review,
organizational sensing,
focus groups,
interviewing, or
surveying.
The assessment could be conducted by outside experts or by members of the organization.

30. Types of Need Normative Relative
Defined as falling below a standard criterion established by custom, authority, or general consensus
Relative
Measured by the gap between the level of service between similar communities

31. Expressed Perceived Types …
Defined in terms of the number of people who actually have sought help
Perceived
Defined in terms of what people think their needs are or feel their needs to be

32. 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

33. Needs Assessment Exercise
Work in 4 groups
Share your individual experience in your group about situation that requires improvement in your organization
Build consensus in group the area of problem or need

34. Needs …
Frame the problem as to be resolved in the four level as follows:
Individual
Job/ Task
Teams/Departments/Divisions
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
Time:
Group work- 15 Minutes, Presentation- 5 minutes

35. Action Planning
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:
training and development,
team interventions, such as
team building for management or employees or
the establishment of change teams,
structural interventions, or
individual interventions.

36. OD Interventions
A set of planned change activities intended to improve organization's effectiveness, including quality of work life and productivity.
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.
Interventions sometimes involve a consultant from outside the organization, but many times management itself intervenes to make organizational changes.

37. Perceived Org. Performance
Conceptual Framework
OD Interventions Output Outcome
Individual
Intervention
Selection
T&D
Counseling
Promotion
QWL
Structural
Intervention
Org. design
Job design
Right sizing
Human Output
Individual commitment & Involvement
Perceived Org. Performance
Improvement in cereal production
Process
Intervention
Goal setting
Team building
Decision making
Manuals
Based on Beer, 1980

38. Integrated Approach to Change
Integration of these three strategies for successful OD intervention is must.

39. Implement the Plan Gather Data
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.

40. Analyse Results and Feedback
This data is used to determine the effectiveness of the intervention. It is reported to the organization’s decision-makers. 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.

41. Conditions for Success of OD
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,
All portions of the organisation must change in a synchronised manner, and
Sufficient time must be allowed for all those involved to workout their problems.

42. Conclusion
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 objectives.