1

Organization Development

"Our success has really been based on partnerships from the very beginning."

- Bill Gates

The world we have created today has problems which cannot be solved by thinking the way we thought when we created them

-Albert Einstein

2

What is an Organization ?

1. Organizations are social entities (including HR)

2. Goal-oriented3. Designed as deliberately

structured with coordinated activity systems4. Linked to the external environment

(Daft, 2004).

3

StructureStructure

TechnologyTechnology

PeoplePeople

Structure, Technology, and People as Targets of

Organizational Change

OrganizationalOrganizationalChangeChange

OrganizationalOrganizationalChangeChange

4

External Environment

Laws andpolitics

Economy

Technology

DemographicsSocialvalues

MacroenvironmentCompetitiveEnvironment

OrganizationSuppliers

NewEntrants

SubstitutesRivals

Buyers

5

What is Development ?

''improvement in a organization’s socio-economic condition by leveraging opportunities for growth & competitiveness''. More specifically, it refers to improvements in ways of managing human resources & other factors of production to create value and satisfy people's needs & lives. e.g.

• development of ideas, skills, evolution of technologies, civilization…

6

What is Org Development ?

(There is no single definition of OD)

• Long range planned effort• OD supports vision, mission, values, plan• Managed from the top

• intended to increase organizational effectiveness and health• through planned interventions (change) in the organization's process• using behavioral science knowledge

So OD could be defined as "the practice of changing people and organizations for positive way or alternatively“ It is the field of study and practice that focuses on aspects of organizational life including culture, values, systems and behavior”

You can think of organizational and personal change in the context of the ADKAR model. If you are deploying a major change in your organization, then a critical step in change management is organizational awareness of the reasons for change. Desire to change at the employee level must be addressed as resistance will be a natural reaction to change. As the change moves into implementation, your will need to develop knowledge about the change and the ability to implement new skills and behaviors. Once the change is in place, you will need to reinforce the change to avoid moving backwards to old behaviors.

You can think of organizational and personal change in the context of the ADKAR model. If you are deploying a major change in your organization, then a critical step in change management is organizational awareness of the reasons for change. Desire to change at the employee level must be addressed as resistance will be a natural reaction to change. As the change moves into implementation, your will need to develop knowledge about the change and the ability to implement new skills and behaviors. Once the change is in place, you will need to reinforce the change to avoid moving backwards to old behaviors.

You can think of organizational and personal change in the context of the ADKAR model. If you are deploying a major change in your organization, then a critical step in change management is organizational awareness of the reasons for change. Desire to change at the employee level must be addressed as resistance will be a natural reaction to change. As the change moves into implementation, your will need to develop knowledge about the change and the ability to implement new skills and behaviors. Once the change is in place, you will need to reinforce the change to avoid moving backwards to old behaviors.

7

A Simple Definition - OD

The systematic application of the behavioral sciences to establish and reinforce organizational strategies, structures and processes to change & improve organization’s performance

8

The function of OD is…

To assess the effects and relationships

between people, processes, and

technology

To proactively anticipate and

successfully respond to change.

What is OD’s Function?

9

•World is changing at an accelerating rate, and in multiple dimensions.

•Emerging trends and forces are changing the context in which organizations function.

•Requirements of leaders for teams and change.

•Strategic perspective for the field and the practice of OD.

Purpose of OD

10

Forces ForForces ForChangeChange

WorkforceWorkforce

CompetitionCompetition

WorldWorldPoliticsPolitics

TechnologyTechnology

SocialSocialTrendsTrends

EconomicEconomicShocksShocks

Why Must Organizations Change?

11

Why Organizational Development

• External forces will place continued pressure on enterprises to leverage technology to change public/private sector practices

• Corporate governance and management processes must evolve to meet challenges that transcend short term planning horizons

• Many new information system projects will be either transitional or transformative in nature—culture may shift to accommodate new ways of working

• New skills and incentives will be required at ALL levels. Leadership is needed to direct organizational culture and learning

12

Phases of Organization Development

Entry

Contracting

Diagnosing

Feedback

Planning Change

Interventions

Evaluation

In simple terms OD is:

The systemic application of the behavioral sciences to establish and reinforce organizational strategies, structures and processes to improve the organization’s performance

13

Entry

Organizational Development Process begins when management senses a problem requiring organizational change EstablishEstablish

Client-Client-ExpertsExperts

RelationsRelations

DisengageDisengageTeamsTeams

ServicesServices

Action Research ProcessAction Research Process

DiagnoseDiagnoseNeed forNeed forChangeChange

IntroduceIntroduceChangeChange

Evaluate/Evaluate/StabilizeStabilizeChangeChange

14

DesiredConditions

CurrentConditions

BeforeChange

AfterChange

DrivingForces

RestrainingForces

Force Field Analysis ModelForce Field Analysis Model

DuringChange

DrivingForces

RestrainingForces Driving

Forces

RestrainingForces

15

Contracting

Organizational Development Practitioner or a person having OD training & experience to lead the effort

16

Diagnosis

Organizational Development Consultantgathers information:

Uses questionnaires One to one interviews Meetings Reviews of existing performance data Other techniques

17

Feedback

Organizational Development ConsultantProvides feedback & diagnosis and discusses with organization interpretationof data for possible refinement

18

Planning Change

Management decides what is needed to solve problem/s.Develop plans to implement interventions

19

Major OD Interventions

Career planning & Development, Culture change Goal setting, Intergroup relations, Reengineering,Process consultation, Work design, Reward systems,Strategic change, Stress management, Survey designTeam building, Training, Leadership development….

20

Evaluation

Results are evaluated by the Management to assess

the success of OD efforts. Results provide feedbackfor deciding what to do next.

21

"Change is the window through which the future enters your (Organization’s) life."

22

People & Organizations Resist Change

Employees: powerful anti-change forces Habit Security Economic & status loss

fears Fear of the unknown &

risk Selective information

processing: “ignorance” is bliss

Fear of obsolescence Resentment toward

change agent Notice extent of fear & loss

Organization: powerful anti-change forces Systemic

interdependence within orgs

Disruption of social & power structures

Inertia Resource allocation

threat Perceived lack of

choice by responding to environment

23

Team-building

As we become a more global economy, teams are becoming more "virtual".

Networked teams Parallel teams Project or product-

development teams Work or production

teams Service teams Management teams Action teams

24

Talent Management - Discovery

25

Talent Management

An important area of focus for OD practitioners is building the capabilities of the organization. Capabilities area sometimes divided into different "buckets”:

Talents Skills Knowledge Strengths

26

Training

There are quick training or presentation techniques that help to accomplish one of the following:

Helps people get acquainted. Helps people feel more comfortable with the

training environment. Helps to give people a preview of the training. Teaches a skill. Encourages people to have fun and be

relaxed.

27

Food for thought for HR……

Is my recruitment machinery geared up to recruit 5 times the numbers that I am hiring toady? (Sourcing Strategy)

Am I developing middle managers of tomorrow today? (Middle Management Development)

Am I making a compelling employment promise and delivering it? (Employer Branding)

Are all my associates motivated and aligned to organisations goal? (Employee Engagement)

Do we communicate – effectively and regularly (Employee Communication)

Are our associates living and breathing the same promise and commitment? (Culture & Values)

28

Talent and Training

“Learning is not compulsory –

neither is survival!”W Edward Deming

29

Address the Complete Value Chain

Stu

dent

s School EducationPrimary School

Secondary School

College Education

Stu

dent

s

Em

plo

ymen

t O

pp

ortu

nit

ies

Employers

Parents, Friends, Society

Education would be much more effective if its purpose was to ensure that by the time they leave school

every boy and girl should know how much they do not know, and be imbued with a lifelong desire to

know it.

Sir William Haley