ORGANIZATIONAL

DEVELOPMENT
Class 2

ORGANISATION DEVELOPMENT?
We firmly believe that only companies having an internal structure
corresponding to their goals are able to develop successfully.
For us the key term is development. And development is a process, and
this implies the fact that besides analysis and advice, helping to carry out
organizational changes is also a significant part of our work.

WHAT IS ORGANIZATION
DEVELOPMENT?
An organization is a system consisting of four interacting subsystems:
Structure
Structure refers to the formal interactions within the organization
Technology
Technology relates to the level of sophistication determining the workflow and performance of jobs in an organization.
People
People variable refers to the human input in the organization
Task
Task refers to the set of activities to be performed.

WHAT IS ORGANIZATION
DEVELOPMENT?(CONTINUED)
Organization as a system can be changed and developed to achieve its
goals in the best possible way.
The goals of an organization, generally are: survival, stability, profitability,
growth and service to society.
Achievement of Goal is Possible :
If it is able to respond to changes within the external and internal
environment.

External Factors: social, political, economic and cultural factors.

Internal Factors: existing structure, technology, needs and expectations
of its people and the changing scenario of labour force.

WHAT IS ORGANIZATION
DEVELOPMENT?(CONTINUED)
And Finally ,Organization development (OD) is a planned approach to
respond effectively to changes in its external and internal environment.
Organisational development is a collection of change method that try to
improve organisational effectiveness and employee well being.
Organisation development encompasses a collection of planned-changed
interventions built on humanistic democratic value that seek to improve
organisational effectiveness and employee well-being

THOUGHT IN
OD:
Programmed Procedure School
It is an older approach. According to it, OD is the effective implementation of
the organizations policies, procedures and programmers.

System Process School

This school considers organization development in the context of both its
internal and external environment.

CHARACTERISTIC FEATURES OF
OD
Planned Change : It is a planned strategy to bring about organizational
Change. This change effort aims at specific objectives and is based on the
diagnosis of problem areas.
Collaborative: OD typically involves a collaborative approach to change
which includes the involvement and participation of those organization
members most affected by the changes.
Performance: OD programs include an emphasis on ways to improve
and enhance performance and quality (TQM).
Humanistic: OD relies on a set of humanistic values about people and
organizations that aims at gaining more effective organizations by
opening up new opportunities for increased use of human potential
systems.

ROLE OF ORGANIZATIONAL
DEVELOPMENT

To place emphasis on humanistic values

To Treat each human being as a complex person
To increase the level of trust among members
To increase the level of enthusiasm at all levels
To increase the level of self & group responsibility in
planning

PROBLEMS IN ORGANIZATIONAL
DEVELOPMENT

Discrepancy between ideal and real situations

Lack of open system concept
Resistance to change
Lack of motivation among members
Costly programmes

PROCESS OF ORGANISATIONAL
DEVELOPMENT
Problem identification & diagnosis
Planning strategy for change
Intervening in the system
Evaluation

OD INTERVENTIONS
Organization Development (OD) interventions techniques are the
methods created by OD professionals and others. Single organization or
consultant cannot use all the interventions. They use these interventions
depending upon the need or requirement. The most important
interventions are,
1. Survey feedback
2. Process Consultation
3. sensitivity Training
4. The Managerial grid
5. Goal setting and Planning
6. Team Building and management by objectives
7. Job enrichment, changes in organizational structure and participative
management and Quality circles, ISO, TQM

MANAGING THE OD PROCESS

Three basic components of OD programs:
DiagnosisContinuous collection of data about
total system, its subunits, its processes, and its
cultureAction
All activities and interventions designed to
improve the organizations functioningProgram
management
All activities designed to ensure success of the
program

THE EMERGENCE OF OD
Organization development is one of the primary means of creating more
adaptive organizations. Warren Bennis. a leading OD practitioner, has
suggested three factors underlying the emergence of OD.
The need jar new organizational forms. Organizations tend to adopt a
form that is more appropriate to a particular time, and the current rate of
change requires more adaptive forms.
The focus on cultural change. Because each organization forms a culture-a
system of beliefs and values the only way to change is to alter this
organizational culture.
The increase in social awareness. Because. of the changing social climate,
tomorrows employee will no longer accept autocratic styles of management;
therefore, greater social awareness is required in the organization.

WHY CHANGES COME IN AN

ORGANIZATION?
What is Change?
Change can be defined as an alteration in the existing field offorces which
tends to affect the equilibrium.

Change is inevitable in the history of any organisation.

Organisations that do not change or keep pace with the changing
environment suffer from Crisis.

WHY CHANGES COME IN AN

ORGANIZATION?(CONTINUED)
A short list is given below regarding some of the changes which affected
almost all organisations in the past few decades in given below.
Technological innovations have multiplied; products and know how are fast
becoming obsolete.
Basic resources have progressively become more expensive.
Competition has sharply increased.
Communication and computers have reduced the time needed to make
decisions
Environmental and consumer interest- groups have become highly influential.
The drive for social equity has gained momentum
The economic interdependence among countries has become more apparent.

5 KEY BENEFITS OF
ORGANIZATIONAL
DEVELOPMENT

OD is the practice of planned, systemic change in the beliefs, attitudes and

values of employees for individual and company growth.
The purpose of OD

is to enable an organization to better respond and adapt to industry/market changes

and technological advances. In todays post we will focus on five benefits of OD from
continuous improvement to increased profits.

Continuous Improvement Companies that engage in organizational

development commit to continually improving their business and offerings.
Increased Communication One of the key advantages to OD is increased
communication, feedback and interaction within the organization.
Employee Development Organizational development focuses on increased
communication to influence employees to bring about desired changes.

5 KEY BENEFITS OF ORGANIZATIONAL

DEVELOPMENT(CONTINUED)
Product & Service Enhancement A major benefit of OD is innovation,
which leads to product and service enhancement. Innovation is achieved
through employee development, which focuses on rewarding successes
and boosting motivation and morale.
Increased Profit-Organizational development affects the bottom line in
a variety of ways. Through raised innovation and productivity, efficiency
and profits are increased.

TO BE CONTINUED . . .
Thank You