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Organization development (OD) is defined as a long-term, collaborative effort led by top management to improve an organization's vision, empowerment, learning, and problem-solving processes through managing organizational culture. The key characteristics of OD include a focus on culture and processes, collaboration between leaders and members, the importance of teams, and a focus on the human and social aspects of the organization. OD practitioners act as facilitators and help organizations solve problems on their own through action research and skills development. The assumptions of OD include that individuals want growth, groups are important reference points, and people-centered organizations can be both effective and empowering. Common OD interventions include team building, process consultation, and restructuring formal organizational structures.
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- 1. Management Science-II Dr. Sangamithra MODULE 6 Planned Change Introduction To Od Organization Development (Od) 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 organization’s culture – with special emphasis on the culture of intact work teams and other team configurations – utilizing the consultant – facilitator role and the theory and technology of applied behavioral science, including action research. Primary Distinguishing Characteristics Of OD • Focuses on culture and processes • Encourages collaboration between organizational leaders and members in managing culture and processes • Teams of all kinds are particularly important for task accomplishments • Focuses primarily on the human and social side of the organization. Primary Distinguishing Characteristics Of OD • Participation and involvement in problem solving and decision making by all levels of organization • Focus on systemic change; views organizations as complex social systems • OD practitioners are facilitators, collaborators, and co-learners with the client system - focus on imparting of problem-solving skills and knowledge of continuous learning through self-analytical methods to client to enable it to solve its problems on its own. • Reliance on action research model with extensive participation by client system members • Development view seeking betterment of both individuals and organization. Indian Institute of Technology Madras
- 2. Management Science-II Dr. Sangamithra Assumptions And Values Underlying OD Dealing with individuals • Most individuals want to develop their potential and have drives towards personal growth and development if provided with supportive and challenging environment Most people desire to make, and are capable of making, a higher level of contribution to achieving organizational goals than is normally permitted. Implication for managers • Ask, listen, support, challenge, encourage risk-taking, permit failure, remove obstacles and barriers, give autonomy and responsibility, set high standards, reward success. Assumptions And Values Underlying OD (Contd.) Dealing with groups • One of the most relevant reference group for individuals is the work group, including peers and boss. • Most people desire to be accepted, and interact with one or more small reference groups. • Most people are capable of making greater contributions to the groups’ effectiveness and development Indian Institute of Technology Madras
- 3. Management Science-II Dr. Sangamithra Implication for managers • let teams flourish; leaders should invest in groups/teams; adopt a team- leadership style rather than a one-on-one style; actively engage group members to help leader in decision-making and problem-solving, by training them up suitably; help group members to deal with both positive and negative feelings; solve problems through mutual interactions. Designing and running an organization • Traditional bureaucratic organization structures to give way to newer organizational designs. • Needs and aspirations of employees to be addressed. • Putting people first can result in organizations that are humane, developmental and empowering, as well as high performing in terms of productivity, profitability and quality of output. Implication People are an organization’s most important resource; they are the source of productivity and profits and should be treated with care. OD Interventions Intervention refers to a set of planned change activities intended to help an organization to increase its effectiveness. Based on valid information (accurate organizational diagnosis) Indian Institute of Technology Madras
- 4. Management Science-II Dr. Sangamithra Opportunity for free and informed choice (employees’ active involvement) Gain members’ internal commitment (employees accept ownership of the intervention and its implementation) Human Process interventions T-groups • Provides members with experiential learning about group dynamics, leadership, interpersonal relations Process consultation / third party interventions • Consultant helps group members to diagnose group functioning and to devise solutions to process problems (conflicts, communications, norms) Team building • Goes beyond process consultation, examines group's task, member roles, strategies for performing tasks. Search conference • Clarifying important important values, looking for new ways to address problems, articulating a new vision for the organization. Organization confrontation meeting • Mobilizing employees in problem solving during periods of stress. Normative approaches • Specifies ‘best way’ to manage an organization, through use of standardized instruments for measuring organizational practices. Indian Institute of Technology Madras
- 5. Management Science-II Dr. Sangamithra Techno-Structural Interventions Formal structures • Concerns organization’s division of labour – how to specialize task performances. • Four kinds of structures: • Functional, self-contained units, matrix, and networked Differentiation and Integration • Specialization and coordination mechanisms redesigned as per environmental demands • Techno-structural interventions Parallel learning structures • Creating an informal, flexible collateral organization to supplement existing organization, to solve problems that a regular organization cannot solve. Human Resource Management Interventions Goal setting • Setting clear and challenging goals, improving organizational effectiveness by establishing better fit between personal and organizational objectives. Performance appraisal • Joint assessment of work-related achievements, strengths and weaknesses; providing performance feedback to individuals and work groups Indian Institute of Technology Madras
- 6. Management Science-II Dr. Sangamithra Reward systems • Designing incentive and reward system for improving employee satisfaction and performance Career planning and development • Guiding employees to choose career paths and to attain career objectives; means of improving employees’ quality of work life. Managing workforce diversity • Change in gender ratio, ethnic ratio, physically challenged employees; flexibility in policies to accommodate these changes Employee wellness • Employee assistance programs, stress management, etc. Parallel Learning Structures • Creating an informal, flexible collateral organization to supplement existing organization, to solve problems that a regular organization cannot solve. Person-Focused OD Interventions • Partnerships between individuals (participants) and behavioral science experts (facilitators) Indian Institute of Technology Madras
- 7. Management Science-II Dr. Sangamithra Participant-active Facilitator-active Interventions Interventions Encounter groups Psychodynamic models Role playing Motivation arousal Instrumentation Training Self-study and Reflection Feedback Awareness Expansion Coaching and Mentoring Encounter Groups (EG) • Sensitivity training, laboratory training, T-groups, L-groups (changing individual attitudes and values) • Purpose Role Playing • Techniques / processes • Usefulness: • Perception of others’ feelings • Autonomy • Leadership and group work • Self-assessment • Internalization of learning • Interpersonal orientation Indian Institute of Technology Madras
- 8. Management Science-II Dr. Sangamithra Role Playing Techniques / processes Usefulness: • Perception of others’ feelings • Autonomy • Leadership and group work • Self-assessment • Internalization of learning • Interpersonal orientation Instrumentation SAFI • Completion of instrument, conceptual input, prediction, scoring, interpretation, feedback, action planning, experimentation, follow-up Indian Institute of Technology Madras
- 9. Management Science-II Dr. Sangamithra Using HRD Instruments Disadvantages Advantages Engenders fear of exposure Enables early, easy learning of theory Encourages ‘labeling’ Promotes personal involvement and commitment Fosters dependence on the Supplies personal feedback facilitator sooner than other participants are able to Makes the facilitator an ‘expert’ Facilitates contracting for new behavior Can result in threatening Fosters open reception of situation feedback through low threat. Triggers anger and anxiety Surfaces latent issues Makes distortion of feedback possible through manipulation of scores Indian Institute of Technology Madras