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

2. Contents 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

3. 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.

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

5. 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.

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

7. 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
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

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

9. Characteristics
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
contd…..

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

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

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

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

14. 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.

15. 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.

16. 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.

17. 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
Focuses on improving organization output / measurable outcomes
Focus
Focuses on the quality of life in an organization
Diagnosis involves discovering non-alignments between subsystems
Diagnosis
Diagnosis involves examining dysfunctional effects of core assumptions
Leadership change is not essential
Leadership
Leadership change is crucial

18. 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.

19. OD Process

20. 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
Sufficient time must be allowed for all those involved to work out their problems

21. 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.

22. Thank You