ORGANISATIONAL DEVELOPMENT

SUBMITED BY

VISHRUT RAMESH PATEL

STUDENT ID: HR0119/0007/D19

POST GRADUATION DIPLOMA

IN TRAINING AND DEVELOPMENT (HRC07)

SEMESTER - I YEAR 2019

HR0119/0038/D19
 INDEX

SR NO. CONTENT PAGE NO.

 Executive Summary 3

1 Background 4

2 Definition & Meaning of Organisational Development 5

3 Objectives of Organisational Development 7

4 Advantages of Organisational Development 8

5 Characteristics of Organisational Development 9

6 Prerequisites to Organisational Development 11

7 Process of Organisational Development 12

8 Techniques of Organisational Development 16

9 Organisational Development Interventions 21

10 Conditions for Successful Organisational Development 26

11 Case Study : Organisational Development at Axis Bank 28

12 Organisational Development Intervention at Axis Bank 30

 Objectives of the Study and Findings 33

 Recommendations 34

 Bibliography 35

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 EXECUTIVE SUMMARY

Today in era of constant development and up-gradation of systems and change in

human demands and behaviours, it is very important for the Organisations to have a closer look
in changing possibilities and opportunities available in this VUCA (volatility, uncertainty,
complexity and ambiguity) world. The Organisation’s purpose and objectives needs to be
protected not only for the growth of the Organisation but also for its survival. The survival of
the Organisation also depends on various factors, parties and people involved in its revival
plans and Organisational Development plays very important role in achieving the goals and
objectives of the Organisation.

Today, Organisations are well aware of the facts that in world of constant improvements and
change, their one stop shop solutions will not help them to get their business grow and achieve
their business objectives. The Organisations are more aware of the fact that they have to
implement new ways of its functioning in order to keep up with the pace of VUCA world.

This Project on Organisational Development is an attempt to showcase how Organisational

Development is the need of an hour and how the Organisations which adopted Organisational
Development process and executed it successfully have benefited from the Organisational
Development Intervention. The process of Organisational Development and the Advantages of
the Organisation Development is covered here in detail just to represent the entire importance
of Organisational Development.

The case study of Axis Bank shows that with changing time of Indian Banking Industry, how
the Axis Bank has evolved itself over a period of time from being one of the Traditional
Commercial Bank to a ‘New Generation Fin-Tech Banking Institution’. The examples are
many in Organisational Development including the examples of failure of bringing
Organisational Development it in their Organisation which has affected them tremendously.
The project comprises of theory and practices behind the Organisational Development along
with the case study to highlight how successful Organisational Development Intervention
benefits the Organisation.

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Background

 Organisational Development is a huge concept in itself and it is not possible to implement

the Organisational Development easily by one person as its Organisation wide and its
scope is not limited to an individual or few people within an Organisation. It is both, the
process driven as well as the people driven which makes any Organisational Intervention
successful.

 The Organisational Development is a vast subject in itself and have its own theories and
different people across the globe have different opinions and views about the
Organisational Development but they do not disagree on the Importance and Scope for
Organisational Development in this modern world. The subject needs deep understanding,
in-depth knowledge, analytical skills, guidance, practise and execution as well as training
and guidance from the subject matter expert.

 There is limited source of information available publically on how and which strategies
were implemented at Organisations through Organisational Development intervention
maybe due to its confidentiality, but at the same time there are examples of the
Organisations which has implemented it successfully to achieve their Objectives. The case
study presented here is one of the examples of how an organisation has transformed itself
through Organisational Development intervention.

 The Organisational Development process in not limited to any one scientific procedure
and hence, It varies from an Organisation to Organisation but the main objectives and main
areas which gets focused in implementing any Organisational Development Intervention
is moreover similar. This study highlights the process and areas which gets focused on for
bringing the successful Organisational Development.

 Apart from limitations of the case study, project covers all important & basic aspects of
Organisational Development and how it works, the importance of the Organisational
Development yesterday, today & tomorrow.

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 ORGANISATIONAL DEVELOPMENT

1. Meaning of Organisational Development:

Given the approaches to planned change: structure, technology and people change, a major
approach to people change is Organisational Development (OD). Some Organisational
Development programmes involve structural and technological changes also. It plans for a
comprehensive change where the Organisation moves to higher levels of performance with
improved worker satisfaction.

Organisational Development aims to improve the Organisation’s self-renewal process so that

managers adopt a management style appropriate to the new and changing environmental
variables. It is an approach to introduce change in business Organisations. “Organisational
Development is a planned and systematic attempt to change the Organisation, typically to a
more behavioural environment.”

The need for Organisational Development arises because the Organisations itself needs to
change. Changing people through motivation and incentive programmes alone is not sufficient.
Organisational Development helps Organisations to rapidly adjust to environmental changes.
Not responding to change is not an option. It is necessary for survival of the Organisational in
the dynamic, competitive world.

It is “a change effort that is planned, focused on an entire Organisational or a large sub-system,

managed from the top, aimed at enhancing Organisation’s health and effectiveness, and based
on planned interventions made with the help of a change agent or third party who is well versed
in the behavioural sciences.”

Organisational Development is response to change, a complex educational strategy intended to

change the beliefs, attitudes, and structures of Organisations so that they can better adapt to
new technologies, markets and challenges. Organisational Development programmes equip
people to accept change resulting from external environmental forces like market, technology
etc. It is a long-range programme aimed to change behavioural attitude of people and
performance of the total Organisation thereby creating better coordination between human
beings and the Organisations.

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2. Definition of Organisational Development:

 According to R. Beckhard, "Organisational Development is an effort planned,

Organisation wide, managed from the top, to increase Organisation effectiveness and
health and through planned intervention in the organisations’ processes using
behavioural science knowledge".

 According to French and Bell, "Organisational Development is a long range effort to

improve an Organisation's problem-solving and renewal processes, particularly,
through a more effective and collaborative management of Organisation culture with
special emphasis on the culture of formal work teams with the assistance of a change
agent or catalyst and the use of the theory and technology of applied behaviour science,
including action research".

 According to Burke, "Organisational Development is a planned process of change in

an Organisation's culture through the utilization of behavioural science, technology,
research and theory".

 In simple words, Organisational Development is a technique of planned change. It seeks

to change beliefs, attitudes, values and structures-in fact the entire culture of the
Organisation so that the Organisation may better adapt to technology and live with the
pace of change.

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3. Objectives of Organisational Development:

1. Improvement the performance of the Organisation.

2. Improvement in the ability of the Organisation to adapt to its environment

3. Improvement in inter-personal and inter-group behaviour to secure team work

4. To stimulate people to express freely without fear to change.

5. To increase interpersonal communication within the Organisation.

6. Decision through collective efforts to increase effectiveness.

7. To have self-control for personal visions and focusing on organisational goals.

8. To have self-direction and self-motivation for achieving objectives of the Organisation.

9. To encourage employees’ participation in analysing the problems and decision making.

10. To develop solutions to the problem and build partnerships for effective implantation.

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4. Advantages of Organisational Development:
1. Organisational Development is not a magic to solve all the management problems but it
helps in meeting the challenges thrown by change and making the Organisation effective.

2. Organisational Development processes and methods encourages team work, improve

intergroup relationships.

3. It helps employees to understand each other better and promotes cooperation and mutual
understanding thus reduce the internal conflicts and stress at workplace.

4. It helps in getting job satisfaction. It helps in improving communication skills.

5. Organisational Development helps in boosting up the morale of the employees. High

morale leads to greater productivity.

6. It helps the employees to accept changes in the technology which increase efficiency
ultimately leading to have an edge over the competitors and increase the market share.

7. Employees welcomes change and do not resist it which leads to speedy implementation of
policies and programmes in adopting new technology and concepts without any hesitation.
It changes the atmosphere making it conducive for executing developmental programmes.

8. Organisational Development thus enables the management to implement the changes in the
system, technology, customs, patterns, product, styles etc. to be in tune with the
modernisation to remain in business and face the competition which will help in developing
Organisation, its people and society.

The effectiveness of Organisational Development programmes depends upon many factors. It

is difficult to say whether a particular action is effective. There are several factors internally
and externally that are responsible for effectiveness of Organisational Development
programme. To assess the magnitude of effectiveness of Organisational Development
programme, it is necessary to have the knowledge of the situation prior to the implementation.
Organisational Development programmes are widely adopted by companies by spending heavy
amount to engage external consultants and experts to develop the Organisation. Hence, the
following topic is focusing on merits of such Organisational Development Process.

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5. Characteristics of Organisational Development:

1. Organisational Development is an educational strategy for bringing a planned change.

2. It is related to real problems of the Organisation.

3. Training methods based on experienced behaviour are primarily used to bring change.

4. Organisational Development uses Change agents (or consultant) to guide and affect the
change.

5. The role of change agent is to guide groups towards more effective way of functioning.
Change agents assist in problem solving processes so that employees solve the problems
themselves.

6. Organisational Development seeks to build problem-solving capacity by improving group

dynamics and problem confrontation.

7. Organisational Development reaches into all aspects of the Organisation culture in order
to make it more humanly responsive.

8. Organisational Development is a long term approach and is meant to elevate the

Organisation to a higher level of functioning by improving the employee performance and
satisfaction of members.

9. Organisational Development is broad-based and describes a variety of change

programmes. It is concerned not only with changes in Organisational design but also with
changes in Organisational philosophies, skills of individuals and groups.

10. Organisational Development is a dynamic process. It recognises that the goals of the
Organisation change and hence the methods of attaining them should also change.

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11. Organisational Development utilizes systems thinking. It is based on open, adaptive
systems concept. The Organisation is treated as an interrelated whole and no part of the
Organisation can be changed without affecting other parts.

12. Organisational Development is research based. Change agents conduct surveys, collect
data, evaluate and then decisions are taken.

13. Organisational Development uses group processes rather than individual process. It
makes efforts to improve group performance.

14. Organisational Development is situational and contingency oriented.

15. Organisation Development and Management Development are complementary rather than
con•flicting.

Graphical Representation of Advantage of Organisational Development

OD Advantages

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6. Prerequisites to Organisational Development

1. Top management's commitment

Organisational Development is possible only when there is strong commitment from top level
management for change. During Organisational Development, there can be change in different
areas like techniques, machinery, responsibility-authority relationships, etc. In such changes,
top level management must be ready either in changing responsibility-authority relationship or
in investment for new technology. Thus, Organisational Development requires top
management's commitment as one of the requirement to make it success.

2. Strong and influential managers

Managers plan for change and initiate change to improve quality of goods and services. To
make Organisational Development successful, some strong and influential manager are
required so that they commit for change, change the attitude of other managers, supervisors
and employees for accepting change. Such managers are the change agents.

3. Capable external consultants

External consultants are external change agents. They facilitate to internal change agents by
means of training and consultant advice. Such consultants help to identify the area for change,
diagnose real problems, nature of problem, and probable solution. Competency of such
consultants determines the extent of success of Organisational Development in the
Organisation.

4. Successful past experience

If the Organisation has experienced similar changes at past too and such events were successful,
this increases the chance of being the current Organisational Development processes
successful. Experienced Organisations have maintained technology, techniques, skills and
knowledge from previous experience which will be beneficial.

5. Built in reward system

Reward system should be unbiased. Managers should aware for providing equitable rewards.
Better performer should automatically get the rewards. Rewards and compensation should be
automatically fixed. Thus, to increase the cohesiveness between managers and employees,
Organisational Development aims to develop the reward system.

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7. Process of Organisational Development:

1. Recognition of the Problem:

It is the first step to initiate the Organisational Development process where top
managers or departmental heads feel the need for change. Recognising some problem
in the Organisational calls for change. Problem is the end-result that requires
application of Organisational Development. An outside consultant can also be
appointed to identify problems in the Organisational. The problem could be low sales,
low profits, poor employer-employee relationships etc.

2. Diagnosis of the Situation:

After the need for change is felt, the change agent assesses the problem by diagnosing
the present situation. It enables the Organisational Development practitioners to analyse
the real problem.

The problem can be diagnosed in the following ways:

(i) The practitioners can interview people of the Organisational directly affected by the
problem situation.
(ii) Where Organisational members do not want to disclose their identity in face-to-face
interviews, the practitioners use questionnaires where respondents answer the questions
in a common format.
(iii) The employees’ behaviour can simply be observed and this observation helps
Organisational Development practitioners in diagnosing the situation.
(iv) Internal documents and reports also give information about problem area in the
Organisational.

The Organisational Development practitioner, thus, identifies the reasons for problems and
collects relevant data from the Organisational to diagnose the problem. The reasons for the
problems should be identified because reasons help in going to the root cause of problems.

If sales are low because of lack of publicity, advertising and sales promotion efforts can help
to solve this problem. All relevant data related to the cause of problem is collected and analysed
to arrive at the optimum solution.

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 Graphical Representation of Steps involved in Organisational Development Process:

3. Identification of the Problem:

The problem having been diagnosed, the Organisational Development practitioners want all
Organisational members to identify themselves with the problem. They make people realise
that problem of the Organisational is their problem. When people recognise the problem as
their ‘own’, they actively participate in initiating and implementing the change process to
overcome the problem.

4. Selection and Ownership of Solution:

Members should identify the problem as their own and also accept the solution or ‘own’ the
solution. The Organisational Development practitioners should facilitate both ownership and
solution to the problem by Organisational members so that change can be smoothly
implemented. If managers feel that employees do not ‘own’ the selected solution to the
problem, they should first make them accept the solution and then implement it.

“Ownership occurs when people openly recognise that a problem exists, when they accept their
contribution to the problem or the impact it has on them, or when they commit to the need to
identify the problem and to do something about it.” Action plan is devised which determines
goal of the Organisational Development programme, the approach for attaining these goals and
sequence for implementing the approach.

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5. Implementation:
When all Organisational members agree to the problem and solution to that problem (that is,
they ‘own’ the problem and the solution), changes are implemented. The desired
Organisational structure, its parts and their relationships are determined. The Organisational
Development practitioner changes the Organisation and trains people in the light of proposed
changes.

6. Evaluation:
After the Organisational Development, programme is implemented, it is regularly monitored
(since it involves long-term change process) to study its effectiveness. If changes do not
produce the desired results, the Organisational Development practitioners make adjustments in
the Organisational Development programme. This may involve appraising the change
programmes, change efforts, behavioural patterns of members etc.

Five A’s of Organisational Development Process:

1. Align > 2. Assess > 3. Address > 4. Act > 5. Adjust !

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Graphical Representation of Organisational Development Process

Organisational Framework: Need for Identifying Why? What? & How? &
People, Process and Systems to implement Organisational Development

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8. Techniques of Organisational Development:
The following some of the techniques are used by Organisational Development
practitioners to bring planned change:

I. Diagnostic techniques

II. Interaction-facilitating techniques

I. Diagnostic Techniques:
These techniques are used by practitioners to diagnose the problem of the Organisations:

1. Survey feedback:
In this method, a questionnaire is given to members to collect information about the problem
areas in the Organisational. Since names of employees remain anonymous, they give true and
fair picture of the areas where changes are required. After the data have been collected,
analysed and interpreted, the results are drawn and presented to the concerned department
where they are discussed and change is initiated.

2. Nominal group technique:

This technique of identifying the problem area and finding solution to problems is applied when
members do not want to verbally express their feelings. Group members list the problem areas
on a sheet of paper. The responses of members are consolidated in writing by the group leader
who presents the problems on the board. The members are again asked to identify in writing,
the problems in the order of priority.

The group leader again consolidates the list and arrives at consensus regarding the problems to
be solved in the order of priority. A similar exercise is repeated for finding solutions to the
problems. The problems are finally matched with the solutions and group members interact
with each other

3. Force field analysis:

It identifies the driving forces which promote change and restraining forces which restrain
change in the Organisational. With the strength of each force, change can be introduced if
driving forces are stronger than restraining forces. Attempts are made to reduce the restraining
forces or convert them into driving forces.

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If all the tasks are managed by managers single-handedly without delegating to subordinates,
managers will be overburdened with work and, therefore, not able to achieve the Organisational
goals. In such a situation, the Organisational Development practitioner creates an environment
where superiors understand the need to delegate and subordinates express their desire to be
delegated. The problem and solution are, thus, formulated through force-field analysis.

II. Interaction – Facilitating Techniques:

These techniques enable the group members to interact and discuss the problem areas and
arrive at a solution to effect the change.

1. Team building:
The Organisational Development consultant encourages team members to trust and increase
their level of openness with each other. Members share information known to them. The
information may be related to better pay structure, better working conditions or better
employer-employee relationships. Disclosure of more and better information enables the
Organisational Development practitioner to make better decisions to implement the planned
change.

Team building helps the work groups to identify problems related to their tasks and plan
changes that will improve effectiveness of the tasks. It changes the way work is done and
redirects Organisational resources in a way that results in their optimum utilisation.

It improves inter-personal relationships in the Organisational as people openly communicate

with each other and develop mutual understanding leading to functional excellence. The
Organisational Development consultant also provides feedback to the team members to
increase their tasks roles and maintenance roles.

In task role, he makes the group members conform to Organisational standards and as
maintenance role, he fulfil their social needs of interaction and influence. If formal leader
cannot fulfil these roles, the Organisational Development consultant supplements his functions
and carries out both the roles. This is because he has referent and expert power over group
members. He, thus, has strong influence over group activities to promote Organisational
efficiency far beyond the corrective range of formal leaders.

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2. Process consultation:
In this technique, the Organisational Development consultant examines some Organisational
process; production process or communication process, and develops ideas to improve that
process. He involves group members to participate in the process development and arrives at
consensus regarding the ways to solve problems related to that process.

Process consultation includes “a set of activities on the part of a consultant which helps the
client to perceive, understand and act upon process events which occur in the client
environment.” Managers, thus, seek the help of consultants in knowing the effectiveness of
various Organisational processes like communication, decision-making etc. These processes
are diagnosed, problems are detected and remedies are suggested. Managers seek the help of
Organisational Development consultants in knowing what is wrong in the Organisational and
where. The consultant provides challenging alternative solutions to the client (managers). The
client considers these alternatives and implements the alternative he thinks best for the
Organisational.

3. Grid Organisational Development:

This Organisational Development technique is based on Blake and Mouton’s Managerial Grid,
which identifies management styles based on manager’s concern for people and task. (Different
management styles are 1, 1; 9, 1; 5, 5; 1, 9 and 9, 9). The 9, 9 style characterised by high
concern for people and tasks is the ideal style. An effective Organisational Development
programme aims at 9, 9 management style to solve the Organisational problems.

Graphical Representation of Blake and Mouton’s Managerial Grid

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Grid Organisational Development technique follows the following six steps:

(a) Training:

Key managers assess their management style, compare it with the ideal style and improve their
styles through training to develop the Organisational. They develop skills like communication,
group decision-making etc. to improve from the existing management style to the optimum
style (9, 9).

(b) Team development:

The improved management style is applied to Organisational activities and attempts are made
to improve employer-employee relations and develop team spirit amongst Organisation
members. Whatever managers have learnt in training programmes is applied in actual work
situations so that features of 9, 9 management style are achieved.

(c) Inter-group development:

Different work groups cooperate and together solve the Organisational problems. Groups deal
with the problems which promotes group problem- solving and understanding of
Organisational procedures.

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(d) Organisational goal-setting:

Top managers frame new goals for the Organisational which can be achieved efficiently.

(e) Goal attainment:

Organisation members seek to achieve the goals framed by top managers in Organisational
goal-setting.

(f) Stabilisation:

After accomplishing the above steps, the Organisational Development practitioner analyses the
whole situation, stabilises the positive points of the planned change process and improves the
areas which are not yet fully developed. Areas which need improvement are identified so that
Organisational is equipped to face environmental challenges and exploit environmental
opportunities.

Graphical Representation of Stages involved in Organisational Development

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9. Organisational Development Interventions
Organisational interventions are the techniques or approaches of Organisational Development.
There can be large number of Organisational Development interventions but change agents can
choose the type of intervention on the basis of purpose of intervention. Interventions should
penetrate Organisational culture of resisting change. Types of interventions cannot be mutually
exclusive as they overlap too many extents.

Following different interventions can be used in practice:

1. Individual intervention

In most the cases, Organisational problems are rooted by means of personal shortcomings or
inadequacies in skills, knowledge or motivation to change. In such situation, OD interventions
are required to design at individual level so that ability and motivation of such individual can
be improved. There can be different forms of individual interventions as follows:

a. Counselling and Coaching

Some of the employees may be unaware regarding change. They may have low confidence on
their ability and skills. Some of them may not identify or realize the low level of performance
and hence cannot identify alternative method of doing work. In such situation, they require
counseling and coaching. In counseling and coaching, consultant prepare, guide, facilitate,
cheer and direct to employees.

 They inspire and stimulate self-awareness and develop new behavior patterns on the job.
 They assist in learning the alternative methods for performing.
 Provide support and direction to such employees to adapt change effectively.

b. Sensitivity training (T-Group)

Change becomes complex and almost impossible because of interpersonal conflict or ego. Such
condition hinders the Organisational change as well. Thus, it is required to intervene the
behaviour of individual towards others. Sensitivity training or T-Group is the training to
employees which aims to change behaviour through unstructured group interaction. It helps to
build harmonious relationship with involvement of such persons in training. This helps to
improve communication, develop leadership skills, increase in belongingness, reduction in

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individual gap, increased tolerance of individual differences through extending listening
capacity, etc. Each member becomes aware towards own behaviour regarding how this affects
to others and they perceive on the behaviour. This training helps to integrate individual
objective and Organisation's objectives. Sensitivity training is conducted in the following way:

 Members are brought together in open and free environment in which they can discuss
and interact freely.
 Professional behavioural scientists i.e. facilitators loosely direct the discussion.
 Intervention is carried by facilitators to help to move the group forward.
 Outcomes of such discussion or training session help each member to understand other's
behaviour and strengths. This helps each member to perceive the importance of other
members and aware of their own perception.

c. Survey method

Individual differences or discrepancies can be obtained through the use of questionnaires. In

survey method, questionnaires are prepared to measure the individual differences. Work units
or departments or whole Organisation can be taken as the sample unit to collect information
regarding differences in individual. Survey follows following steps:

 Interview, observation or questionnaire is used to collect information regarding the

discrepancies. Perception, attitude and behaviours are identified after analysing the
data.
 Meeting is conducted to provide feedback on the basis of data collected. Information
are discussed in groups for diagnosing the problems. Participants in meeting develop
remedies to solve the problems.
 Interventions are taken by initiating training and development activities to solve major
problems.

2. Group interventions

Group interventions are the actions designed to improve the interaction process or working
relationships between individual members, among members of work groups or teams, or
between groups or departments in the Organisation. This is done at group level. Group
interaction can be follows:

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a. Team building

Team building is an attempt to assist the work group for making them skilful for accomplishing
job responsibility. Teams are encouraged to learn how to identify, diagnose and solve the
problems in self initiation.

Members are encouraged to:

 Set goals and priorities,

 Analyse the performance of team
 Examine the norms, decision making process and communication process
 Examine the interpersonal relationship in the group

Thus, team building intervention is adapted when the interaction among members in group is
critical for group effectiveness.

There are few necessary conditions to make the teams more effective. Management should be
careful in following basic requirements while intervening through team building:

 There should be task interdependence among the members. If task of members are not
interdependent, team building intervention does not work.
 Goal clarity is important. Each member should be clear in team goals.
 Group members should be agreed and motivated for team objectives.
 The group should be capable of handling some reasonable percentage of problems.
They should be able to initiate some corrective actions.

b. Process Consultation

In this type of intervention, consultant from outside the Organisation assist client i.e. needy
person or unit in the Organisation. They assist in perceiving, understanding and acting upon
process events within the Organisation. Consultation plays a role of guide or coach with advice
in communication, patters, decision making and leadership style. Consultants can be more
useful in setting methods of cooperation and conflict resolution. Process consultation
intervention can be appropriate in solving interpersonal inter group conflicts but it does not

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stress in participation of persons in process consultation because of which the process may be
less effective.

c. Inter-group development

In Organisation different groups need to form which should be interdependent to task

accomplishment. But, many Organisations fail to create significant results from group because
of gap in perception, attitude and stereotypes of groups have of each other. Thus, intervention
is required to overcome such problems and create harmonious relations, mutual trust and
attitude of mutual interdependence. Inter-group development tries to minimize the
dysfunctional conflict between the groups.

For this, problem solving approach is followed which involves following steps:

 Separate meeting of each group are organized in which member prepare the list of their
perception towards self, towards other group, their belief towards other are prepared.
 Groups exchange their lists to identify similarities and dissimilarities. Differences are
focused.
 Groups analyse the nature and causes of differences.
 Groups develop most feasible solution to improve their relations.

This approach tries to solve the misunderstanding by creating trust, goodwill and openness.
Inter-group development intervention is suitable to solve the problems created by overlapping
of responsibility and authority.

3. Organisation intervention

Organisational interventions are made at Organisational level covering whole Organisation.

Following different types of Organisational interventions are used:

a. Organisational restructuring

Organisational restructuring is done by changing or altering the responsibility-authority

relationship. This helps in intervening coordination mechanism, communication channel,
decision making approach and system, job redesigning, etc. In this type of intervention, work
hours are made flexible and reward systems are changed.

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b. Task and technological changes

In this intervention, either task or technology or both are changed. Task can be redesigned with
restructuring or rearranging the responsibilities. Technology is the means to change input into
output. This is the modification in ways of doing things. New equipment, tools or techniques
are used to intervene the transformation process. Information Technology (IT) is widely used
in jobs and jobs are redesigned according to the nature of technology. Technology has greatly
affected the jobs.

c. Goal setting (MBO)

Peter Drucker in 1954 AD first time advocated that each business activity need to be directed
to achieve the Organisational goals. For this, goals should be set in involvement of employees.
This means, if employees are involved in setting goals of whole business, they feel ownership
in goals and their commitment level gets improved. Commitment of employees leads to the
performance. This approach of setting goals of whole business or Organisation in involvement
of employees is commonly termed as 'Management by Objectives (MBO)'. MBO consists of
following steps:

 Educating employees who are to be involved in goal setting process.

 Employees and managers meet regularly and formally and agree upon smart,
measurable, accessible, realistic and time bound objectives (SMART).
 Progress towards the chosen objectives is reviewed after some internal feedback is
provided to employees.
 An overall evaluation is made to assess the current progress for the next cycle of
objective setting and planning.

d. Quality of Work Life (QWL)

This intervention is made with creating favourable working environment in the Organisation.
QWL helps to ensure the wellbeing of employees at job and economic health of Organisation.
QWL includes the following components:

1. Safe and healthy work environment. 2. Proper physical settings in the work place, including
space and layout. 3. Development of human potential and capabilities. 4. Equitable rewards.
5. Social relevance and integration.

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10. Conditions for Successful Organisational Development:

The Organisational Development programmes are long-term programmes and lot of time,
money and materials are tied in these programmes. Many Organisational Development
programmes have not been able to achieve the ideal situation. They have not been able to make
people accept the need for change. They failed as long-term strategy because people with
lower-order needs are not motivated to accept change. There have also been cases of wrong
implementation of the Organisational Development programmes.

The following conditions helps in Organisational Development programme effective:

(i) Recognition by Top or Other Managers that Organisational has Problems:

Unless top managers realise that Organisational has some problem, change process cannot be
initiated. Support of top managers is necessary for other Organisational members to accept the
need for change. If objectives of change are clear, right strategies can be framed to achieve the
objective.

Whether or not change is required can be known through extensive scanning of external
environmental variables and internal control system. Managers should recognise their strengths
and incorporate them in the Organisational Development programme. This will enhance their
morale to implement the change process.

(ii) Clarity about Elements:

There should be clarity regarding elements of Organisational that need to be changed. These
elements could be structure, technology or people.

(iii) Plan the Change:

If change is planned, everyone will know when, how and by whom change will be introduced.
Change should be planned so that everyone accepts the change. Members of the Organisational
should be educated about why change is required. They become aware of the need for change
and become responsive to implement the change. Managers should seek the support of human
resource managers where changes are introduced in employees’ behaviour, attitudes and
development. The entire OD process should be managed properly so that members have faith
in these programmes.

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(iv) Effective Leadership:

Effective leadership ensures that everyone participates in the change process. Managers
promote group dynamics so that Organisationalal members think and work collectively
towards the proposed changes. Involvement of leaders is necessary so that all the work groups
are actively involved in implementation of the Organisational Development programme.

(v) Use of Outside Organisational Development Consultant:

A major change programme can be effectively implemented through an outside consultant who
has the skills and knowledge to solve the major problems.

(vi) Develop Internal Organisational Development Resources:

If Organisational resources are strengthened, internal change agents will cooperate with the
external Organisational Development consultants in implementation of the change process.

(vii) Achieving Early Success with the Organisational Development Effort:

If at early stages, the Organisational Development programme does not achieve the desired
results, workers will not be motivated to implement the change process. Early success,
therefore, motivates them to implement the change process. However, since these are long-
term programmes, enough time should be allowed so that results of OD programme are
achieved.

(viii) Congenial Organisational Climate:

Organisational climate is congenial where people freely communicate with each other and also
have faith in each other. Such a climate is conducive to effective OD programme. People
cooperate with each other in the hope that change will benefit them and the Organisational.

(ix) Measurement of Results:

Results should be measured by regularly obtaining data about the impact of change process on
Organisational goals. This helps the OD practitioners to continue with the existing programme
or make changes in them

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11. Case Study Organisational Development of Axis Bank Ltd.

Background:
Axis Bank is the third largest private sector bank in India. The Bank offers the entire spectrum
of financial services to customer segments covering Large and Mid-Corporates, MSME,
Agriculture and Retail Businesses.

The Bank has a large footprint of 4,050 domestic branches (including extension counters) with
11,801 ATMs & 4,917 cash recyclers spread across the country as on 31st March, 2019.

The overseas operations of the Bank are spread over nine international offices with branches
at Singapore, Hong Kong, Dubai, Colombo and Shanghai; representative offices at Dhaka,
Dubai, Abu Dhabi and an overseas subsidiary at London, UK. The international offices focus
on corporate lending, trade finance, syndication, investment banking and liability businesses.

Axis Bank is one of the first new generation private sector banks to have begun operations in
1994. The Bank was promoted in 1993, jointly by Specified Undertaking of Unit Trust of India
(SUUTI) (then known as Unit Trust of India), Life Insurance Corporation of India (LIC),
General Insurance Corporation of India (GIC), National Insurance Company Ltd., The New
India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India
Insurance Company Ltd. The share holding of Unit Trust of India was subsequently transferred
to SUUTI, an entity established in 2003.

With a balance sheet size of Rs. 8,00,997 crores as on 31st March 2019, Axis Bank has
achieved consistent growth and with a 5 year CAGR (2013-14 to 2018-19) of 16% in Total
Assets, 14% in Total Deposits, 17% in Total Advances.

Vision of the Bank:

To be the preferred financial solutions provider excelling in customer delivery through

insight, empowered employees and ‘smart use of technology’.

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Core Values of Axis Bank:

 Customer Centricity
 Ethics
 Transparency
 Teamwork
 Ownership

Problem Statement of Axis Bank:

 The Axis Bank has identified the need for enhancing and upgrading the technology used
by the Bank in its Banking Operations and Services by adopting the new age software and
digital payments methods in the Banking. This will enabled the Bank to achieve its
‘Customer Centric’ goals by providing them vide variety of Banking services at their
fingertips.

 The Bank has identified the need to expand its Digital Banking services during
Demonetisation period viz. November 2016 due to cash liquidity issues, currency
shortages and for innovating and providing alternate payment channels (Online) to the
customers to meet their huge demands.

 The Bank has also identified the issues and scope for improvement in its existing
Banking Operations to make it much more efficient, quicker and advanced with the use
of Technology.

 The Bank wanted to reduce the cost of operations by reducing manual intervention of
employees at Branch level so that employees can focus on other Important Banking
Services and Sales. Axis Bank had installed ‘Cash Deposit Machines’ with ATMs
outside the Branches to avoid ‘Queue’ during banking hours and operational deficiencies
due to manual intervention of the cashier. The Bank has adopted this steps so that the
individual customers can use their Debit Cards to deposit cash in their accounts and use
ATMs to withdraw the funds. This has reduce the workload of Cashiers at the Branches
and enhanced ‘Customer Experience’ as they can withdraw and deposit cash 24X7 at their
convenience.

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12. Organisation Development Intervention at Axis Bank:

 Being the learning Organisation, which has constantly evolved during the last decade to be
the India’s third largest Commercial Bank, the Bank has adopted and implemented the
strategies for the ‘Organisational Development’ to meet the consumer demands and
expanded the Digital Payment avenues post demonetisation period.

 The Bank has developed its Business Strategy aligning to its ‘Customer Centric’ vision and
goals to provide the best Banking experience and services to its customers and invested in
the Technology to enhance the overall Banking experience.

 The Bank also identified the potential of ‘Digital Banking’ with growing population of
Smartphone users in India which crossed to 300 million in 2016. The Bank hence Planned
its Business Strategies to launch Mobile Banking tools to capture the Digital Payments
market and Mobile Banking customers.

 Based on the experience during Demonetisation, the Senior Management emphasised

‘Automisation’, in order to improve the overall efficiency and output of the employees
with the use of technology and faster delivery of the services with least errors. This was
also made the most important aspect of PMS during the year of 2016.

 The Bank has started its ‘Business Intelligence Unit (BIU)’ during FY 2016-17 which
consist of highly qualified IT professionals and Industry Experts and IIT alumnus. This unit
has used ‘Artificial Intelligence’ for Business Analytics which helped in increasing
business by providing the insights and solutions studied from the database of the banks
existing customers.

 The CEO of Bank Ms. Shikha Sharma has taken personal interest during her tenure with
the Bank till December 2018 in making an Organisation a ‘FinTech Banking Institution’
for rapid growth of the Organisation and fulfil changing needs of the customers.

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Impact of Organisation Development Intervention at Axis Bank:

 After the launch of Digital India campaign by Prime Minister Shri Narendra Modi in 2016,
Axis Bank was the first Bank to launch its Axis Pay UPI (Unified Payment Interface)
application and also tie-up with Samsung Mobiles India as banking partner for providing
platform to Samsung Pay.

 Later, Axis Bank has upgraded its Axis Mobile Application and enabled features of mobile
transfers, online payments of bills and recharges. Axis Mobile Application also have Online
FD/ RD, IMPS, RTGS payments which otherwise required Internet Banking.

 Axis Bank has started one of its kind, ‘Axis OK SMS Banking’ to provide services to the
customer who do not have Smartphones or Internet Connectivity. This services helped
customers to transfers funds by using SMS.

 Axis Bank has adopted the Technology to be the ‘New generation Fintech Banking
Institution’ and in order to expand market share in the Digital Payments Space which is
dominated by PayTM, the Axis Bank has acquired Fintech firm; ‘FreeCharge’ in September
2017 for INR 385 crores.

 Axis Bank has launched one of its kind virtual assistance customer services platform ‘Axis
AHA!’ which uses Artificial Intelligence to answer the queries raised by the customers
related to banking through online chat platform.

 Axis Bank also launched its AXIS ASAP digital Savings Bank Account, which does not
require customers to walk-in to the Branch and customers can avail all services online and
can also make online payments through their virtual Debit and Credit Cards.

 Axis Bank has also started its own Axis Edge Rewards Points which promotes use of
Digital Payments and Card Payments and rewards consumers with points for doing Digital
Transactions. This enables bank to also sell merchandise through its platform with vendors
where customers can redeem their Axis Edge reward points for shopping.

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Few Important figures represents the success of Organisation Development at Axis Bank:

 64% of Bank’s active customers are ‘digitally active’.

 75% of all financial transactions are now digital transactions.

 UPI has scaled up tremendously to become a key channel for customer transactions with
highest ever 635 million transactions seen in Financial Year 2019.

 43% of Mobile Banking customers bank only on Axis Mobile Application.

 Mobile Banking logins stand at 9.2 times of Internet Banking logins in Q3FY19.

 Retail and Transaction Banking now form 79% of the total Fees earned by the Bank.

 Retail fess earned by the Bank during Q3FY19 from Transaction and Retail Banking
reached to INR 2,615 cr. with 16% YOY growth.

Awards and Recognition represents the success of ‘Digitalisation’ at Axis Bank.

 Axis Bank won ‘Banking Technology Excellence Award’ 2016-17 for Digital Banking
among Large Banks.

 Axis Bank won ‘Most Innovative Emerging Technologies Project in India’ and ‘Best
Online Banking Experience, India’ award at the Asset Triple A Digital Awards in 2017.

 Axis Bank wins ‘Best Digital Bank’ for the second consecutive year at the 2017-18 edition
of The Financial Express ‘India’s Best Banks’ awards ceremony, held on 10th January 2019.

 Axis Bank wins for the ‘Best Use of Data & Analytics for Business Outcomes’ amongst
the Largest Banks at the 14th Indian Banking Association Technology Awards in 2019.
Axis Bank has won this award for the second consecutive year.

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 Objectives Of the Study

The main Objectives behind this study are as follows…

 To acquire more knowledge about Organisational Development.

 To study the process of Organisational Development.
 To know the use and importance of Organisational Development.
 To know its relevance in this modern world and how organisations have implemented
Organisational Development interventions for their growth and survival.
 To know how techniques are used to implement the Organisational Development process.

 Conclusion and Findings of the Project

 Organisational Development is a practical approach towards bringing the change in the

Organisation through manual intervention for bringing the positive change in the
Organisation for its growth and survival.

 There are many views and opinions about Organisational Development theories across the
globe but Organisational Development can be defined in simple words as a set of social
science techniques designed to plan and implement change in work setting for purposes of
enhancing the personal development of individuals and improving the effectiveness of
Organisational functioning.

 Organisational Development is the concept regarding strategies approaches for managing

planned change in Organisation. This enables the long term effort of Organisation to
improve its vision, empowerment, learning and problem-solving processes.

 Organisational Development improves conducive climate for implementing change

through ensuring well-being of employees. This helps to improve the Organisational
performance and effectiveness.

 Organisational Development concept comprises process of changes which are intentional

i.e. in the wish of management and support of the employees. This is a method of
facilitating change in Organisation with solving human and social related problems.

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 Recommendations based on the Project

 Organisational Development can be successful only if the vision, action and people
involved are in alignment with the Objectives of the Organisation.

 Organisational Development is not limited to just Top Management Level but it comprises
all the stake-holders of the Organisation who are actively participating in running the
Organisation through management or even operational levels. Hence, Team-building and
Team Work is extremely important in implementation of successful Organisational
Development process.

 Organisational Development takes time and it’s a continuously evolving and long term
process, it requires constant upgradation and correction in the way of functioning of an
Organisation, its people and even the machinery and technology they use. Hence,
Organisational Development can be done only with in-depth analysis and review of various
steps, employees and actions involved in the implementation of the Organisational
Development Process for better outcomes as desired by the Organisation.

 Organisational Development is very important in the modern competitive world to be in

the business and to keep up with the pace of modern businesses. The Organisation now a
days cannot function in traditional way like they have been functioning since its inception,
they need to bring that change which is expected and demanded by the consumers and
people which are involved in the Organisation. The developing and developed countries
also needs dynamic and developing Organisations which can fulfil their needs and provide
them with goods and services as per their demands. Hence, Organisations should have self-
reflective approach and enhance their business modules and the way they function on
constant basis to be a dynamic Organisation.

 As per the above study and various concepts on Organisational Development, it can be
surmised that, the Organisations mow-a days do not have any alternatives to Organisational
Development if they need to survive and flourish in the Modern world. The Organisations
should be always ready to adopt the changes and implement it as per the need arises to
facilitate its stake-holders and achieve their business objectives.

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 Bibliography

There is no primary data collected in this project except the details collected and
observations made for case study from Bank’s corporate communication and investor
presentations. Analysis was done from the retrieve data as there was no information
available about what process was followed by the Axis Bank to bring Organisational
Development but there was sufficient visible steps and implementations of various projects
were made for making Organisational Development through Digitalisation. Hence, the case
study was prepared based on the same and from personal experience while working with
the Axis Bank since October 2016.

Following are the sources of secondary data which was referred, analysed and collected
while making this project.

 www.wikipedia.com

 www.googleimages.com

 www.axisbank.com

 www.businessmanagementideas.com

 www.wisenepali.com

 www.yourarticlelibrary.com

 www.sketchbubble.com

 www.scholar.google.co.in

 www.business.com

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