Organisational Development
Organisational Development
Organisational Development
1.1 INTRODUCTION
For a business entity working in the dynamic environment, change is the only
constant and it has to be accepted in order to maintain existence. So, the
organizations here need to remain flexible in every aspect in order to fix any
change at the minimum cost. Thus, change management is a scientific and
systematic approach to ensure proper implementation of the change for attaining
a desired state in order to achieve organizational objectives. It is exactly like
adopting a proactive approach in dealing with the people and for that openness,
communication and involvement needs to be taken care of.
10. Change can be exciting and bring about the best work of a life-time:
Change always gives hope for the betterment, and this hope brings out the best
of a person..
Change can be classified into various forms according to its characteristics and
the target area it is going to affect. However, the same is briefly explained as
follows:
(i) Directional Change: It is a kind of change the organization usually adopts to
lead itself into new dimension. This change occurs on the condition of severe
competition and regulatory shifts in the Govt. policy. It is just like developing a
new strategy and implementing the developed strategy.
(ii) Incremental Change: This kind of change occurs gradually and slowly
with the passage of time. The rationale behind adopting this kind of change is to
avoid the organization with a sudden shock and therefore, slowly implement the
change so that the organization does not face much resistance from the
employees.
(iii) Operating Change: As the name suggests, it is mainly directed in
improving the quality, quantity, timeliness, operational cost and bringing cost-
effectiveness in the organizational level. The prime focus rests on improving the
prevailing operations and attains the organization goals by effectively utilizing
the resources.
(iv) Fundamental Change: This change may be necessitated by lower
turnover, failure of the expected business prospect, drastic change on the
business environment. In this type of change, organizations redefine the whole
purpose of their existence, their mission and their vision.
(v) Planned Change: It is basically a transformational change which occurs on
planned basis in accordance with the internal and external demand. It is a
change which is systematically organized so as to make fuller utilization of the
available business opportunity.
The destiny of any concern is based on the fact that the policy makers are
having conscious and concerned watch on the different controllable and
uncontrollable forces which can affect the working. Hence, managers need to
first assess the impact and influence of the change and then, accordingly, evolve
appropriate strategies and action plan to maintain a balance. The various factors
which acts as a stimulus to change are:
A. External Forces
These forces are also considered as uncontrollable forces. The only option left
to the organization regarding these factors is to accept it and implement it
accordingly. The forces which come in the sphere of external forces are
particularly the one who are also seen as macro-environmental factors with a
wider scope to affect many working units at a same time. Therefore, the various
external forces that act as a catalyst to bring changes are as follows:
(i) Technological Forces: Technology has evidenced wide range of
transformations. From inventing a computer to landing on the moon, human
beings have travelled a long way through out several years. From the business
perspective, technology has always played an eminent role, say, hundred
workmen task being done by a single machine, replacing the manual work with
computers, using internet and social media networking in place of traditional
advertisement techniques etc. For the business houses, it is necessary that they
adopt the latest technology as soon as possible in order to remain cost effective
and bring profitability. New techniques of production, innovation in new
process and emphasis on research and development are some of the major
technological forces that may bring change in the organization.
(ii) Political and Legal Forces: The stability in the political as well as legal
environment is directly linked with the stability in the policies of business
houses. The forces which act as frequent impetus for change in the
organizations can be political ideology of the Govt. in power, the morality and
values which Govt. supports, their political stability. The other factors can be
Govt. interventions in the business and labour legislation, policies towards
business, trade and other foreign trade matters can also be counted to be
prominent forces for change.
(iii) Economic Forces: These forces affect almost all organization not within a
particular region but to all economic regions, i.e. these forces have no
boundaries and it is not only limited to a country but may have global effects.
For instance, global slowdown can affect many countries at a same time.
Similarly, in a particular single economy, uncertainties about monetary policies
measures, interest rate, fiscal policies and foreign exchange rates can create a
need for the organization to change.
(iv) Socio-cultural Forces: We as a human being are constantly changing and
so is our society and various cultures. This also leads for the organization to
remain dynamic for the simple reason that changing cultural values and norms,
spread of educational level, women empowerment issues, changing population
dynamics, increasing rate of urbanization etc. would be having an impact on the
business firms also.
(v) Market Forces: There are several market forces which affect the entire
working of the business. The reason here is that a business unit is directly and
indirectly linked with many stakeholders having some sort of interest with the
business. They are suppliers, competitors, customers, community and society
which can affect the working of the business unit. For example, we consider
competitors, which have a significant role to play in deciding organizations
tactics and strategies against any competitive move. Thus, organizations need to
change accordingly.
Internal Forces
These can be simply defined as controllable forces which are originated from
the internal operations of the organization or from the impact of external forces.
Say, if we take management is providing crutch facility for the children of
working women then it is management derived change move and if as per the
agreement with the trade union the crutch facility is provided then it is external
derivative force. These forces mainly include the following:
(i) System Dynamics: Organization system is composed of many sub-systems
which are collectively forming organization structure. Every sub-part is
interrelated with one another in one way or the other having a composite impact
on the activities of the organization. Thus, if any sub-system is losing its
efficiency and is not working parallel with the environment there ought to be a
change that is required.
(v) Production and Process Change: If the management feels that in order to
remain in flow of the current environment there is a need to implant new
production methods tools and techniques. It is pertinent that business move in
the direction of technological development. The changes it faces would be
regarding the restructuring of job design, interaction pattern among working
units, training and development programs etc. Thus, a change in any element of
the business unit is bound to have significant change in the entire working also.
(vi) Individual and Group Expectation: The organization is basically
characterized by the people working and every individual giving its services to
the organization have certain needs and aspiration. But it is a universal fact that
that the needs of the organization is never ending. Therefore, there are all new
expectations inside the individual or group from the organization which needs
to be satisfied. This expectation always induce the organization to change its
functioning accordingly and progress so that the organization remain successful
in fulfilling the aspiration of the individual or groups.
The first step towards any change is awareness and then later on comes with it
the acceptance. Management need to understand the very reason for which the
change is required and communicates the positive effects it would be serving in
the future. It is equally essential that any change must be properly planned and
implemented, coping up with the changing environment as well as the
individuals working in the organization. The following steps can be followed in
order to manage the change properly:
Transformation is also about daring to convert the legs of a table into a door
frame without knowing exactly how is going to be or how is going to look like.
The organization needs to replace the current state with something completely
new and in many cases unknown.
The OD process is complicated and it takes long time to complete the process. It
takes minimum of one year and sometimes continues indefinitely. There are
different approaches to OD process but the typical process consists of seven
steps, viz., initial diagnosis, data collection, data feedback and confrontation,
action planning and problem solving, team building, intergroup development
and evaluation and follow-up.
(1) Initial Diagnosis:
If executives recognise that there are inadequacies within organisation which
can be corrected by OD activities, it is necessary to find out the professional and
competent people within the organisation to plan and execute OD activities. If
competent people are not available within the organisation the services of the
outside consultants to help in diagnosing the problem and developing OD
activities are to be taken. The consultants adopt various methods including
interviews, questionnaires, direct observation, analysis of documents and
reports for diagnosing the problem.
(2) Data Collection:
Survey method is used to collect the data and information for determining
organisational climate and identifying the behavioural problems.
(3) Data Feedback and Confrontation:
Data collected are analysed and reviewed by various work groups formed from
this purpose in order to mediate in the areas of disagreement or confrontation of
ideas or opinions and to establish priorities.
(4) Selection and Design of Interventions:
The interventions are the planned activities that are introduced into the system
to accomplish desired changes and improvements. At this stage the suitable
interventions are to be selected and designed.
(5) Implementation of Intervention:
The selected intervention should be implemented. Intervention may take the
form of workshops, feedback of data to the participants, group discussions,
written exercises, on-the-job activities, redesign of control system etc.
Interventions are to be implemented steadily as the process is not a “one-short,
quick cure” for organisational malady. But it achieves real and lasting change in
the attitudes and behaviour of employees.
(6) Action Planning and Problem Solving:
Groups prepare recommendations and specific action planning to solve the
specific and identified problems by using data collected.
(7) Team Building:
The consultants encourage the employees throughout the process to form into
groups and teams by explaining the advantages of the teams in the OD process,
by arranging joint meetings with the managers, subordinates etc.
(8) Inter-Group Development:
The consultants encourage the intergroup meetings, interaction etc., after the
formation of groups/teams.
(9) Evaluation and Follow-Up:
The organisation evaluates the OD programmes, find out their utility, and
develop the programmes further for correcting the deviations and/or improved
results. The consultants help the organisation in this respect.
All the steps in the OD processes should be followed by the organisation in
order to derive full range of OD benefits.
1. Survey Feedback:
The intervention provides data and information to the managers. Information on
Attitudes of employees about wage level, and structure, hours of work, working
conditions and relations are collected and the results are supplied to the top
executive teams.
They analyze the data, find out the problem, evaluate the results and develop the
means to correct the problems identified. The teams are formed with the
employees at all levels in the organization hierarchy i.e. from the rank and file
to the top level.
2. Process Consultation:
The process consultant meets the members of the department and work teams
observes their interaction, problem identification skills, solving procedures etc.
He feeds back the team either the information collected through observations,
coaches and counsels individuals & groups in molding their behavior.
3. Goal Setting and Planning:
Each division in an organization sets the goals or formulates the plans for
profitability. These goals are sent to the top management which in turn sends
them back to the divisions after modification. A set of organization goals thus
emerge thereafter.
4. Managerial Grid:
This identifies a range of management behavior based on the different ways that
how production/service oriented and employee oriented states interact with each
other. Managerial grid is also called as instrumental laboratory training as it is a
structured version of laboratory training. It consists of individual and group
exercises with a view to developing awareness of individual managerial style
interpersonal competence and group effectiveness.
Thus grid training is related to the leadership styles. The managerial grid
focuses on the observations of behaviour in exercises specifically related to
work. Participants in this training are encouraged and helped to appraise their
own managerial style.
5. Management by Objectives (MBO):
MBO is a successful philosophy of management. It replaces the traditional
philosophy of “Management by Domination”. MBO led to a systematic Goal
setting and planning. Peter Drucker the eminent management Guru in 1959 has
first propagated the philosophy since then it has become a movement. MBO is a
process by which managers at different levels and their subordinates work
together in identifying goals and establishing objectives consistent with
Organizational goals and attaining them.
6. Team Building:
It is an application of various techniques of Sensitivity training to the actual
work groups in various departments. These work groups consist of peers and a
supervisor.
7. Sensitivity Training:
It is called a laboratory as it is conducted by creating an experimental laboratory
situation in which employees are brought together. The Team building
technique and training is designed to improve the ability of the employees to
work together as teams.
8. Job Enrichment:
It is currently practiced all over the world. It is based on the assumption in order
to motivate workers; job itself must provide opportunities for achievement,
recognition, responsibility, advancement and growth. The basic idea is to
restore to jobs the elements of interest that were taken away. In a job
enrichment program the worker decides how the job is performed, planned and
controlled and makes more decisions concerning the entire process.
Employees can also feel uncomfortable with the changes introduced and resist,
sometimes unknowingly, through their actions, their language, and in
the Stories and conversations, they share in the workplace.
People who are adamant on maintaining customs instead of taking risks and
doing new things will always resist changes. This can happen either due to
their insecurities or lack of creativity and will.
b) Psychological resistance: Under this category, the resistance occurs purely due
to mental and psychological factors. Individuals often resist changes for reasons
like fear of the unknown, less tolerance to change, dislike towards the
management, etc.
Firstly, managers must be able to convince workers that the changes they are
proposing are necessary. They should show how the workers and the organization
itself will benefit from these changes.
Sufficient prior training of employees can help them accept changes with
confidence.
2. Participation
A lack of belief that the organization can make effective change leads to
resistance to change. Likewise, when people aren’t consulted and change is
forced upon them, there is likely to be more resistance. This is especially the
case if people believe their jobs will be at risk.
It is critical that the stakeholders and those implementing change are involved in
its design. A collaborative effort will engage people in the change, and in the
identification of potential issues and solutions. People are far less likely to resist
change that they have helped to create.
3. Support
Organizational transformation is usually accompanied by a change to routines,
taking people out of (long-established) comfort zones. This may also lead to
exhaustion, especially if the organization is subject to frequent change or
business evolution.
Even if people appear to be accepting of change, it may be that they are simply
resigned to it. They must be given the support needed to enable new skills to be
developed and ensure that change burnout does not become a reality.
Support requires managers to develop their emotional intelligence and connect
with their people. Offering adequate support is also time-consuming, requiring
trained managers and leaders to employ coaching tactics to be most effective
when managing change in an organization.
4. Agreement
Resistance to change is also precipitated when people feel they will be
negatively affected by its consequences. This may be because of a perception
that their earnings or career potential will be harmed or that the rewards of the
change are not worth the effort required.
To combat this type of resistance to change, an organization may consider
offering incentives. Such incentives may include extra pay, improved benefits,
or offering structured career plans. This strategy requires negotiation to reach
agreement. The drawback is that such agreements can be expensive and do not
guarantee engagement with change.
5. Co-opting
People become connected to the way that things have always been done. There
are often strong emotional connections to processes and procedures that
employees may have been at least partly responsible for developing. To bond
with the old may require a Herculean effort.
One strategy is to co-opt those who may be most resistant to change into central
roles in the implementation of change initiatives. This can gain the support of
would-be resistors relatively cheaply, though it does come with a caveat –
placing people who are deemed to be resistant to change in such positions could
give them a position from which to influence greater resistance across a wider
audience.
6. Coercion
Sometimes it is necessary to coerce people into accepting change. This is often
the case where people feel they cannot learn the new skills needed or if they feel
that change is a temporary fad that will be reversed.
Techniques for implementing change include wielding the threat of disciplinary
action while insisting that people fall into line with required behaviours and
actions. If speed of change is critical, coercion may be the only viable option.
Unit 4
4.1 Organisation Development Values:
Organisation development constitutes various people, professionals,
technocrats, researchers, managers and a host of other employees working in the
organisation contributing to the accomplishment of organisational objectives.
They behave differently. Authority and power, conflicts, control takes backseat
during OD process.
1. Respect People:
People are the important part of an organisation and they are responsible for
creating opportunities for growth. They must, therefore, be treated with respect
and dignified manners.
Organisations are made up of people and they are to be believed and supported
in order to have effective organisation. The healthy environment prevails when
people are trusted and taken into confidence and a necessary support is extended
to them as and when needed.
3. Confrontation:
Any conflict on any issue should not be suppressed. It should be dealt with
openness. Suppression leads to dampening of morale. Identifying the problem
and its causes, discussing it openly and finding out feasible solution leads to
boosting up morale of the employees and creating good environment.
4. Employee Participation:
5. Expression:
Human beings differ in experience, maturity, ideas, opinions, and outlook. The
organisation is at the receiving end. It gains from the differences in quality,
ideas, opinions and experiences of its people. Human beings are social animals;
they have feelings, emotions, anger and sentiments etc. They should be allowed
to express their feelings and sentiments. This will result in building up high
morale and the people will be motivated towards hard work ultimately resulting
in increased efficiency.
6. Seeking Cooperation:
Managers should learn to seek cooperation from each of the employees working
under him in his department. This will develop in creating the atmosphere of
cooperation leading to organisational effectiveness and willingness to accept
change in the event of organisation development process.
1. Individuals assumptions
2. Groups assumptions
3. Organizations assumptions
Newstrom and Davis have pointed out some assumptions under each category.
1. Individuals:
2. Groups:
3. Organization: