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Organization Development:

Concept and Process

-Tarak Bahadur KC, PhDtarakbkc@nasc.org.np

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Contents 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

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OrganisationOrganisation 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)

DevelopmentDevelopment is the notion that an organization may

become more effective over time at achieving its goals.

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Emerging Concerns of Emerging Concerns of OrganisationOrganisation Flat Flexible Diverse Quality based culture Client orientation Networked

Organizational Issues 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.

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ORGANISATION

Competition

Changing Markets

Regulation

Cost Pressure

New Management

Mergers and AcquisitionsTechnology

Survival / Growth

Reasons for Change in Reasons for Change in OrganisationsOrganisations

Increased Diversity

Composition of Work force

Globalisation

Increased Public Consciousness

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Organisation Organisation DevelopmentDevelopment

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

ODOD is defined as a…

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Characteristics 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

agentcontd…..

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

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OD OrientationOD 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.

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Objectives of ODObjectives 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…..

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.”

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Elements of an OD Elements of an OD ProgrammeProgramme 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.

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OD: System Change or Culture OD: System Change or Culture Change?Change?Most OD focuses on changing organisation’s system, not its culture.

System AnalysisAn 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.

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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.

System Change vs. Culture ChangeSystem 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

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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.

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OD ProcessOD Process

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Conditions for Success Conditions for Success of ODof 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

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Conclusion 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.

Thank You

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