Organization Development (OD)
presented by
Meditha Karunatillaka
MBA, Dip in HRM, Dip in T & D, AMTD, MHRP
Definition-what is an organization
An organization is the planned coordination
of the activities of a number of people for
the achievement of some common explicit
purpose or goal, through division of labor
and function, and through a hierarchy of
authority and responsibility –(Edgar Shein)
Definition
Organization Development (OD)
OD is an effort (1) planned (2)
organization wide (3)managed from
the top (4) increase organization
effectiveness and health through (5)
planned
interventions
in
the
organization’s
processes,
using
behavioral
science
knowledge.
(Richard Beckhard)
Why Study OD ?
 Can improve individual performance
 Create better morale
Increase organizational profitability
Related to OD
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Vision and Mission
Behavior of the Organization
Individual Behavior
Structure of the Organization
Culture of the Organization
WHY DO OD?
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Human resources
Changing nature of the workplace
Global markets
Accelerated rate of change
Distinctive Features of OD
• an OD program is a long range, planned and sustained
effort that is based on an overall strategy.
• consultant establishes a unique relationship with the
client system: the consultant seeks and maintains a
collaborative relationship of relative equality with the
organization members
OD interventions are..........
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Unique in nature
Reflexive
Self-analytical
Self-skill building in nature
Benefits
• It mainly tries to deal with the changes throughout the
organization or in any one of the major units.
• It develops greater motivation.
• It increases productivity.
• A better quality of work.
– It creates higher job satisfaction
– Team work is improved and encouraged
– It finds better solution for conflicts
– Commitment to objectives
– Increases the willingness to change
– Absenteeism is reduced.
– Turnover is lower
Limitations
• Organizational development is long-way process
and requires more time.
• It consists of substantial expense, delayed payoff
periods
• Failures are possible
• Possibility for invasion of privacy
• Possible for psychological harms
• It emphasizes only in group process compared to
performance
• Conceptual ambiguity is possible.
Elements of the OD process
• Entering and contracting
• Diagnosing ( Organization, groups and jobs)
• Planning and implementing change
• Evaluating and institutionalizing
Entering and contracting
• Entering & Contracting are the initial steps in the OD
process
• Entering and Contracting set the initial Para meters for
carrying out the subsequent phases of OD :
–Diagnosing the organization
–Planning & Implementation changes
–Evaluating and Institutionalizing them
• Entering into an OD relationship comprises
of three (3) elements- i.e.
-
Clarifying the Organizational Issue
Determining the relevant Clients
Selecting the appropriate OD Practitioner
Clarifying the Organizational Issues
• An Organization generally starts an OD
programme by presenting the problem. i.e. the
issue that caused them to consider an OD
process. It may be Specific,( e.g. :decrease in
market share, increase in absenteeism, Increase
in industrial disputes or
General (eg:
Organization growing too fast, needs a rapid
change)
• At this stage, presenting the problem is only a
symptom of an underlined problem
Determining the relevant client
• Generally the relevant client includes those organization
members who can directly impact on the change issue.
• Unless these Members are identified and included in the
entering and contracting process, they may with hold
their support for and commitment to the OD process.
• E.g. In trying to improve the productivity of a unionized
plant the relevant client may include union officials as
well as Managers and staff personnel.
• It is not unusual for an OD project to fail because the
relevant client was inappropriately defined.
Diagnosing Organization
• Diagnosis is the process of understanding current
functioning of the organization. It will provides the
information necessary for designing change
interventions. It generally follows from successful entry
and contracting.
• This is a collaborative process between organization
members and OD consultants to collect pertinent
information, analyze it and draw conclusions of action
planning and interventions .
• Diagnosis may be aim uncovering causes for specific
problems or it may be directed at assessing the overall
functioning of the organization / department to discover
the areas for future development.
Organizational Diagnosis
1. Think of visiting your health
care, computer or auto
mechanic professional. What
is a diagnosis?
2. What does s/he do to diagnose
(Dx) your condition?
3. What are the uses/purposes of
a Dx; What does it allow you to
do?
4. What, therefore, are the criteria
for a sound Dx?
5. How is a diagnosis derived?
Planning and implementing change
• In this stage ,organization members and practitioners
jointly plan and implement OD interventions.
• They design interventions to achieve the organization's
vision or goals and make action plans to implement
them.
• There are several criteria for designing interventions
,including the organization's readiness for change ,its
current change capability, its culture and power
distributions and change agent’s kills and abilities .
• Depending on the outcomes of diagnosis, there are four
major types of interventions in OD
Comparison of Planned Change Model
(A)
Lewin’s Planned
Change Model
Unfreezing
(B)
Action Research
Model
Problem identification
(C)
Positive
Model
Initiate the Inquiry
Consultation with
Behavioural Science Expert
Data gathering and
Preliminary Diagnosis
Movement
Inquiry into Best
Practices
Feedback to Key Client of
Group
Discover Themes
Joint Diagnosis of
Problem
Joint Action Plan
Envision a
Preferred Future
Action
Refreezing
Data Gathering after
Action
Design and
Deliver Ways to
Create the Future
Major Types of Interventions in OD .
• Human Process Interventions
• Techno structural Interventions
• Human Resources Management
Interventions
• Strategic Interventions
Human Process Interventions
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Coaching
Training and Development
Process Consultation and Team Building
Third-party Interventions (Conflict Resolution)
Organization Confrontation Meeting
Intergroup Relationships
Large-group Interventions
Techno structural Interventions
• Structural Design
• Downsizing
• Reengineering
• Employee Involvement
• Work Design
Human Resources Management Interventions
• Goal Setting
• Performance Appraisal
• Reward Systems
• Career Planning and Development
• Managing Work Force Diversity
• Employee Stress and Wellness
Strategic Interventions
• ntegrated Strategic Change
• Mergers and Acquisitions
• Alliances and Networks
• Culture Change
• Self-designing Organizations
• Organization Learning and Knowledge Management
Evaluating and Institutionalizing
• The final stage in planned change involves evaluating
the effects of the intervention and managing the
institutionalization of successful change programs .
• Feed back to organization members about the
intervention’s results provide information about whether
the changes should be continued ,modified or
suspended.
• There are several criteria for designing interventions
,including the organization's readiness for change ,its
current change capability, its culture and power
distributions and change agent’s kills and abilities .
• Depending on the outcomes of diagnosis, there are four
major types of interventions in OD
Organizational Development
Techniques
Sensitivity Training
Training groups (T-groups) that
seek to change behavior through
unstructured group interaction
Provides increased awareness of
others and self
Increases empathy with others,
improves listening skills, greater
openness, and increased tolerance
for others
Organizational Development
Techniques (cont’d)
Survey Feedback Approach
The use of questionnaires to identify discrepancies
among member perceptions; discussion follows and
remedies are suggested
Organizational Development
Techniques (cont’d)
Process Consultation (PC)
A consultant gives a client insights into what is going
on around the client, within the client, and between the
client and other people; identifies processes that need
improvement.
Organizational Development
Techniques (cont’d)
Team Building
High interaction among team members to
increase trust and openness
Team Building Activities
• Goal and priority setting
• Developing interpersonal relations
• Role analysis to each member’s role and
responsibilities
• Team process analysis
Organizational Development
Techniques (cont’d)
Intergroup Development
OD efforts to change the attitudes, stereotypes, and
perceptions that groups have of each other
Intergroup Problem Solving:
• Groups independently develop lists of perceptions
• Share and discuss lists
• Look for causes of misperceptions
• Work to develop integrative solutions
Open Systems Model
Environment
Inputs
• Information
• Energy
• People
Transformations
• Social Component
• Technological
Component
Outputs
• Goods
• Services
• Ideas
Feedback

Source Waddell, Cumming and Worley (2007) Organisation Development & Change.
Thomson, South Melbourne Australia
Organisation-Level
Diagnostic Model
Inputs
General
Environment
Uncertainty in social,
technological, economic ,
ecological and political
forces
Industry
Structure
Five forces – suppliers,
buyer, threats of entry,
threats of substitutes and
rivalry among competittors

Design Components
Strategy
The way a company uses its resources human
economic or technical to gain and sustain
competitive advantage
Organisation
design
Outputs
Organisation
performance
Productivity
Stakeholder
satisfaction
Source Waddell, Cumming and Worley (2007) Organisation Development & Change.
Nelson, South Melbourne Australia
Group-Level Diagnostic Model
Inputs
Design Components
Outputs
Goal Clarity
Organisation
Design
Task
Structure
Group
Composition

Team
Functioning
Team
Effectiveness
Group
Norms
Source Waddell, Cumming and Worley (2007) Organisation Development & Change.
Thomson, South Melbourne Australia
Individual-Level Diagnostic Model
Inputs
Design Components
Organisation
Design
Group Design
Personal
Traits

Outputs
skill Variety
Task
Identity
Task
Significance
Autonomy
Individual
Effectiveness
Feedback
about Results
Source Waddell, Cumming and Worley (2007) Organisation Development & Change.
Thomson, South Melbourne Australia
Journey of Life……