Organization Development: Concept and Process: - Tarak Bahadur KC, PHD

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Organization Development:

Concept and Process

-Tarak Bahadur KC, PhD


[email protected]

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Contents
 Organisation: Concerns, Reasons for
Change
 OD: Meaning, Characteristics,
Orientation, Objectives, Elements
 OD: System Change or Culture
Change?
 Steps in OD / OD as a Process
 Conditions for Success
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Organisation
 is an establishment or a workplace where activities
are carried out in order to achieve a defined purpose.
 is an entity with:
 Specific objectives
 Structure of authority
 Division of work
 Resources
 System of communication
 A set of customs (culture)
Development
 is the notion that an organization may become
more effective over time at achieving its goals.
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Emerging Concerns of Organisation
 Flat
 Flexible
 Diverse
 Quality based culture
 Client orientation
 Networked
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Organizational Issues
Organizational members do not behave in the
way required by the formal structure of their
organization, because:
The formal structure of the organisation is not
designed according to the common behavioural
pattern of organisational members (organizational
culture), and
The organizational culture is not compatible with the

type of structure that exists in the organization.

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Reasons for Change in Organisations
Survival / Growth

Composition of Work force Increased Public Consciousness

Globalisation Increased Diversity


ORGANISATION

Regulation
Competition
Technology
Mergers and Acquisitions

Cost Pressure Changing Markets

New Management

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Organisation Development
 OD is a complex strategy intended to change
the beliefs, attitudes, values, and structure of
organizations so that they can better adapt to
new technologies, markets, and challenges.
-Warren Bennis
 OD is an effort, planned, organisation wide,
and managed from the top, to increase
organisational effectiveness and health
through planned interventions in the
organisation’s processes, using behavioural
science knowledge.
-Richard Beckhard

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OD is defined as a…

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Characteristics
 Long range in perspective against 'quick
fix' – coupled with strategic planning
 Supported by top managers
 Emphasises employee participation
 Focuses on structure, culture and
processes
 Facilitated by consultant /change agent
contd…..

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Characteristics contd…..
 Initiated in response to need /
problem like turnover, absenteeism,
low job satisfaction
 Views organization as a system-

interdependence
 Involves extensive planning: deal

with resistance, systematic diagnosis,


develop change plan
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OD Orientation
 OD is oriented to improving organisational
effectiveness by:
 helping members of the organisation to gain
the skills and knowledge necessary to solve
problems by involving them in the change
process, and
 by promoting high performance including
financial returns, high quality products and
services, high productivity, continuous
improvement and a high quality of working
life.
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Objectives of OD
 Increase the level of trust and support among
organizational members.
 Increase the incidence of confrontation of
organizational problems, both within groups and
among groups, in contrast to sweeping problems
under the rug.
 Create an environment in which authority of
assigned role is augmented by authority based on
knowledge and skill.
 Solving problems and improving performance.
contd…..

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Objectives of OD contd…
 Increase the openness of communications laterally,
vertically and diagonally.
 Increase the level of personal enthusiasm and

satisfaction in the organization.


 Find synergistic solutions to problems with

greater frequency.
 Increase the level of self and group
responsibility in planning and implementation.
“Improve the overall effectiveness of the organisation.”

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Elements of an OD Programme
 Technical- work flow, job design,
required task roles, etc.
 Managerial- organisation’s structure
and policies, decision making approach,
etc.
 Human- informal organisation,
behavioural norms, satisfaction of
personal needs, motivational level and
attitude of employees, etc.
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OD: System Change or Culture Change?
Most OD focuses on changing organisation’s system,
not its culture.
System Analysis
An organization is a complete functioning unit
made up of integrated systems that allow it to
operate to accomplish its goals. The subsystems
of an organization include:
 the social system,
 the technical or operational system, and
 the administrative system.

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Culture Analysis
Culture is a system of shared values (what
is important) and beliefs (how things work)
that interact with an organisation’s people,
organisational structures and control system
to produce behavioural norms (the way
people do things). Components of
organizational culture:
- values,

- norms, and

- artifacts.

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System Change vs. Culture Change
System Change Criteria Culture Change
Problem Oriented Orientation Value oriented
More easily controlled Control Largely uncontrollable
Involves making incremental Degree Involves transforming basic
changes in systems assumptions
Focuses on improving Focus Focuses on the quality of life
organization output / in an organization
measurable outcomes
Diagnosis involves Diagnosis Diagnosis involves examining
discovering non-alignments dysfunctional effects of core
between subsystems assumptions
Leadership change is not Leadership Leadership change is crucial
essential

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System Change or Culture
Change?
The chosen approach should be contingent
on the type of problem being considered
since the system and culture approaches
employ different change strategies and
technologies. Those interested in managing
change in organisations often need both
lenses to diagnose problems in organisations
and select appropriate change strategies most
effectively.
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OD Process

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Conditions for Success of OD
 Top management must support strongly
 Changes must be made in structures and

policies and must be committed with any


changes in attitudes which the programme
produces
 All portions of the organisation must

change in a synchronised manner


 Sufficient time must be allowed for all

those involved to work out their problems


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Conclusion
OD is concerned with the development of whole
organisation or improving it’s effectiveness. We
can compare an OD exercise with a ‘health
check’ where one diagnoses how healthy the
organisation is and how well it is performing.
On this basis, right decision and measures taken
to improve the performance of organisation by
developing technical skills and leadership, and
changing structure and culture for achieving
objectives.
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Thank You

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