ORGANISATIONAL DEVELOPMENT

Organisation Development (OD)

Characteristics1. Planned Change2. Comprehensive change3. Emphasis upon work group4. Long range planning5. Participation of change agents6. Emphasis on Intervention7. Collaborative management8. Organisational culture9. Action research

It is a collection of planned-change interventions built on humanistic-democratic values that seek to improve organizational effectiveness and employee well-being.

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Underlying values in Organisational Development

1. Respect for People

2. Trust and Support

3. Power Equalization

4. Confrontation

5. Participation

Organization Development Interventions

OrganizationDevelopment

Techno-Structural Techniques,

Relationship Techniques

HUMAN RESOURCE INTERVENTION

T-group Training

Team Building

Process Consultant

Survey Feedback

Intergroup development

TQM

Job Redesign

Management by Objectives

Structural alliance

T group training

Stranger lab:• Intentional lack of

directive leadership, formal agenda and power / status.

• It creates behavioural vaccum.

• It facilitates rich projections from behaviour.

Cousin lab:• Trainer becomes open non

– defensive, empathetic and minimally evaluative way.

• Feed back received about impact of other group members

Stranger lab – people from different organization. Cousin lab- same, but various departmentsFamily lab – “Back home” people in situations and problem

Sensitivity Training is a form of training that claims to make people more aware of their own prejudices, and more sensitive to others. According to its critics, it involves the use of psychological

techniques with groups that its critics.Team building uses high interaction group activities to increase trust & openness among team members, improve coordinative efforts, and increase team performance.

Survey Feedback: The use of questionnaires to identify discrepancies among members perceptions, discussion follows, & remedies are suggested.

Process Consultant :The basic content of p-c is that the consultant works with individuals and groups in the organisation to help them learn about human and social processes and to solve problems that stem from process events.

Grid Organisation : It is a comprehensive and systematic OD programme which aims at individuals groups and the organisation as a whole. It utilises a considerable number of instruments, enabling individuals and groups to assess their own strengths and weaknesses. Blake & Mouton

What is MBO?• Management by objectives (MBO Peter Drucker in

1954) is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources. It aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization. Ideally, employees get strong input to identify their objectives, time lines for completion, etc. MBO includes ongoing tracking and feedback in the process to reach objectives.

• Integrating Individual with Organisation and then Organisation with environment

The Five-Step MBO Process

Strategic Interventions

1. Integrated Strategic Change

2. Mergers and Acquisitions

3. Alliances and Networks

4. Culture Change

5. Self-designing Organizations

6. Organization Learning and Knowledge Management

8 Key Result Areas Where Managers Must Pursue Clear Objectives

1. Marketing2. Innovation3. Human Organisation4. Financial resources 5. Physical resources 6. Productivity7. Social responsibility 8. Profit requirements

MBO Advantages & Disadvantages

Advantages1. MBO programs continually emphasize what should be

done in an organization to achieve organizational goals. 2. MBO process secures employee commitment to

attaining organizational goals.

Disadvantages1. The development of objectives can be time consuming, leaving

both managers and employees less time in which to do their actual work.

2. The elaborate written goals, careful communication of goals, and detailed performance evaluation required in an MBO program increase the volume of paperwork in an organization.

PROCESS OF ORGANISATIONAL DEVELOPMENT

1. Initial Diagnosis

2. Data Collection

3. Feedback and

confrontation

4. Selection and

design of Intervention

5. Implementation of Intervention6. Action plan and problem solving

7. Team Building

8. Intergroup development

9. Evaluation and follow up

Learning Organisation• An organization that has developed the continuous

capacity to adapt and change• Single-loop learning – when errors are detected, the correction process relies

on past routines and present policies• Double-loop learning – when an error is detected, it’s corrected in ways that

involve the modification of the organization’s objectives, policies and standard routines

• How to make a firm / Managing a learning organisation

1. Establish a strategy

2. Redesign the organization’s structure

3. Reshape the organization’s culture

Characteristics of Learning Organization

Managerial implication of Organisation Change and Development

1. A manager must understand the origin and consequences of Change

2. How to handle change

3. Human relation and mutual confidence

4. Emulate change in self

5. Learn to handle resistance

6. Realise and understand the steps of change

7. Organisational Effectiveness