ORGANISATIONAL DEVELOPMENT

Meaning of Organizational Development (O.D):

Organizational Development or simply O.D. is a technique of planned change. It seeks to change beliefs,
attitudes, values and structures-in fact the entire culture of the organization—so that the organization may
better adapt to technology and live with the pace of change. O.D. is a comprehensive strategy for
organization improvement. O.D. is a long range effort to improve an organization’s problem solving and
renewal processes, particularly through a more effective and collaborative management culture.

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. Laboratory training methods based on experienced behaviour are primarily used to bring change.

4. O.D. uses change agent (or consultant) to guide and affect the change. The role of change agent is to
guide groups towards more effective group processes rather than telling them what to do. Change agents
simply assist the group in problem solving processes and the groups solve the problems themselves.

5. There is a close working relationship between change agents and the people who are being changed. 6.
O.D. seeks to build problem-solving capacity by improving group dynamics and problem confrontation.

7. O.D. reaches into all aspects of the organization culture in order to make it more humanly responsive.
8. O.D. is a long term approach (of 3 to 5 years period) and is meant to elevate the organization to a
higher level of functioning by improving the performance and satisfaction of organization members.

9. O.D. is broad-based and describes a variety of change programmes. It is concerned not only with
changes in organizational design but also with changes in organizational philosophies, skills of
individuals and groups.

10. O.D. is a dynamic process. It recognises that the goals of the organization change and hence the
methods of attaining them should also change.

Process of Organisational Development

1. Problem identification—Diagnosis: O.D. program starts with the identification of the problem in the
organisation. Correct diagnosis of the problem will provide its causes and determine the future action
needed.

2. Planning Strategy for Change: O.D. consultant attempts to transform diagnosis of the problem into a
proper action plan involving the overall goals for change, determination of basic approach for attaining
these goals and the sequence of detailed scheme for implementing the approach.

3. Implementing the Change: O.D. consultants play an important role in implementing change.

4. Evaluation: 0. D. is a long-term process. So there is a great need for careful monitoring to get process
feedback whether the O.D. programme is going on well after its implementation or not. This will help in
making suitable modifications, if necessary. For evaluation of O.D. programme, the use of critic sessions,
appraisal of change efforts and comparison of pre- and post-training behavioural patterns are quite
effective .

Diagnosing

Diagnosing refers to the process of assessing an organization's current state to identify areas needing
improvement and potential problems. It's a structured way to understand an organization's strengths,
weaknesses, and the gaps between its current performance and desired goals. This assessment helps
management plan solutions and make informed decisions about organizational change.

Comprehensive Model for Diagnosing Organizational Systems

The model typically involves the following key areas:
1. Organizational Level:
This level analyzes the organization's overall strategy, structure, culture, human resources, and
technology. It assesses how well these elements align with each other and with the external
environment.
2. Group Level:
This level focuses on the dynamics within teams and work groups. It examines goal clarity, task
structure, group composition, norms, and functioning.
3. Individual Level:
This level investigates individual job characteristics, personal factors, and how they influence
satisfaction and performance. It might look at factors like autonomy, feedback, and skill variety.
4. Intervention and Change:
Based on the diagnosis, the model identifies areas for intervention and change to improve
organizational performance. This may involve implementing new strategies, restructuring, or
enhancing training programs.

Change Management

Change is a phenomenon that pushes us out of our comfort zone. It is for the better or for the worse,
depending on how it is viewed. Change has an adjustment timeline that varies from person to person.
Change has a negative effect on those who do not want to let go. Being flexible is the key. Change is not
related to the mantra ‘just hang in there’, but the mantra ‘you can make it’. It is not associated with
worrying. Change spurs you to achieve your best. It will cause you to learn.

Meaning - Organizational change is both the process in which an organization changes its structure,
strategies, operational methods, technologies, or organizational culture to affect change within the
organization and the effects of these changes on the organization. Organizational change can be
continuous or occur for distinct periods of time.

Nature Of Planned Change

1. Change results from the pressure of both internal and external forces in the organisation. It disturbs the
existing equilibrium or status quo in the organisation.

2. The change in any part of the organisation affects the whole of the organisation.

3.Change will affect the various parts of the organisation in varying rates of speed and degrees of
significance.

4. Changes may affect people, structure, technology and other elements of the organisation.

5. Change may be reactive or proactive. When change is brought about due to the pressure of external
forces, it is called reactive change. Proactive change is initiated by the management on its own to increase
organisational effectiveness.

External factors

1. Technology. Technology is the major external force which calls for change. The adoption of new
technology such as computers, telecommunication systems and flexible manufacturing operations have
profound impact on the organisations that adopt them. The substitution of computer control for direct
supervision, is resulting in wider spans of control for managers and flatter organisations. Sophisticated
information technology is also making organisations more responsive : Both the organisations and their
employees will have to become more adaptable. Many jobs will be reshaped. Individuals who do routine,
specialised and narrow jobs will be replaced by workers who can perform multiple tastes and actively
participate in decision making. Managements will have to increase their investment in training and
education of the employees because employees' skills are becoming obsolete more quickly. Japanese
firms have progressed rapidly because they are very fast in adopting new technological innovations.

2. Marketing Conditions. Marketing conditions are no more static. They are in the process of rapid
change as the needs, desires and expectations of the customers change rapidly and frequently. Moreover,
there is tough competition in the market as the market is flooded with new products and innovations
everyday. New methods of advertising are used to influence the customers. Today the concept of
consumerism has gained considerable importance and thus, the consumers are treated as the kings.

3. Social Changes. Social and cultural environment also suggest some changes that the organisations have
to adjust for. There are a lot of social changes due to spread of education, knowledge and a lot of
government efforts. Social equality e.g. equal opportunities to women, equal pay for equal work, has
posed new challenges for the management. The management has to follow certain social norms in shaping
its employment, marketing and other policies.

4. Political Forces. Political environment within and outside the country have an important impact on
business especially the transnational corporations. The interference of the government in business has
increased tremendously in most of the countries. The corporate sector is regulated by a lot of laws and
regulations. The organisations donot have any control over the political and legal forces, but they have to
adapt to meet the pressure of these forces. In our country, the new economic policy has liberalised the
economy to a large extent. Many of the regulatory laws have been amended to reduce the interference of
the Government in business. An organisation is also affected by the world politics. Some of the changes
in the world politics which have affected business all over the world are e.g. the reunification of
Germany, Iraq's invasion of Kuwait and the break of Soviet Union.
Internal factors

1. Nature of the Work Force. The nature of work force has changed over a passage of time. Different
work values have been expressed by different generations. Workers who are in the age group of 50 plus
value loyalty to their employers. Workers in their mid thirties to mid forties are loyal to themselves only.
The youngest generation of workers is loyal to their careers.

2. Change in Managerial Personnel. Change in managerial personnel is another force which brings about
change in organisation. Old managers are replaced by new managers which is necessitated because of
promotion, retirement, transfer or dismissal. Each manager brings his own ideas and way of working in
the organisation. The informal relationships change because of changes in managerial personnel.
Sometimes, even though there is no change in personnel, but their attitudes change. As a result, the
organisation has to change accordingly.

3. Deficiencies in Existing Management Structure. Sometimes changes are necessary because of some
deficiencies in the existing organisational structure, arrangement and processes. These deficiencies may
be in the form of unmanageable span of management, larger number of managerial levels, lack of
coordination among various departments, obstacles in communication, multiplicity of committees, lack of
uniformity in policy decisions, lack of cooperation between line and staff and so on. However, the need
for change in such cases goes unrecognised until some major crisis occurs.

4. To Avoid Developing Inertia. In many cases, organisational changes take place just to avoid
developing inertia or inflexibility. Conscious managers take into account this view that organisation
should be dynamic because any single method is not the best tool of management every time. Thus,
changes are incorporated so that the personnel develop liking for change and there is no unnecessary
resistance when major changes in the organisation are brought about.