Organisation Development(OD)

What is OD?

• Organisation is a system consists of:-– Structure– Technology– People – Task

• Organisation as a system can be changed and developed to achieve its goals in best possible way.

• Organisation need to respond to changes in external as well as internal.

• The external environment:-– Social, political, economic and cultural factors.– Competition from similar organisation.– Changing needs of public.– Rapid growth of technology etc.

• The internal environment:-– Existing structure– Need and expectation of people.– Changing scenario of labour force.

• OD is planned approach to respond effectively to changes in internal and external environment.

Schools of thoughts in OD• The programme-Procedure School.– According to it, OD is the effective implementation of

organisation’s policies, procedures and programmes.– It is concern with personnel activities like recruitment,

training, career development etc.– Personnel development is primarily concerned with OD

activities.• The system process School.– OD in context of both internal and external environment.– Organisation is viewed as a system which can be changed

and developed to achieve its objectives.– More importance is given to teams and work group than

individuals

Definition of OD• Systematic, integrated and planned approach

to improve effectiveness of the enterprise.• It is based upon scientific awareness of human

behaviour and organisation dynamics.• It is directed towards more participative

management.• OD is intended to create an internal

environment of openness, trust, confidence and collaboration.

Objectives of OD• Improve organisational performance.• Better adaptability of organisation.• Willingness of members to face and solve

problems.• Improvement in internal behaviour pattern:-– Interpersonal relation– Intergroup relation– Level of trust and support– Openness and meaningful communication etc.

Characteristic features of OD

• Totality of the organisation is taken into account.

• The indented changes in OD programmes may be carried out in:– Organisation structure– Task accomplishment– Work climate– Methods of decision making and problem solving– Technology.

Changes in Organisational Structure

• Study existing structure.– The formal relationship– Span of control– Functions performed by each individual

• The planned change may be on the basis what an ideal structure should.

• The employees may be involved in identifying problems in existing system.

OD at Micro Level• It is at job level.• Designing of job for better performance.• Job related aspects such as authority, responsibility,

activities performed, overlapping of roles etc.• These are considered for modification in keeping

with the attitude expectations of the role incumbent.

• Job satisfaction influences the performance.• Job enlargement and job enrichment are the OD

technique.

OD at Interpersonal Climate

• The climate of openness, trust and

collaboration has positive influence on

performance.

• The climate of suspicion, distrust and hostility

results in low performance.

• The climate should be supportive, proactive

and creative.

OD in Communication System• Effective communication is basic to internal

work climate.• Identify gaps in formal communication

network and improve the process. Network may be analysed in terms of :-– Residential analysis (Analyst observes).– Participant analysis (data collected by interviewing

individuals).– Duty Study (like a cop observing traffic).

• OD effort may improve any of the element of communication process

OD Intervention in Decision Making

• Involvement of people concern in decision making leads to acceptable solutions and implementation.

• Decision should be based on objective analysis that include identification of problem, collection of relevant data and selection of an appropriate solution.

OD Strategy• It is intended change at relevant system or

sub-system level.• If the intended change is with reference to

people, then methods are:-– Training and development– Confrontation

• If intended change is at technological level:-– Adopt new technology– Create environment for accepting it

• If intended at task level:-– Deals with job design parameters such as job enlargement, job

enrichment, authority and responsibility consideration etc.• If intended at structure level:-

– Data feed back– Problem solving and decision making– Process consultation– OD task force establishment

• The success of intervention depends upon willingness of employees.

• Organisational change is not a one shot affair but a complicated and lengthy process.

Change Agent• He/She could be internal member trained in OD

technique or external consultant.• A change agent chooses appropriate methodology to

help client.• Having full time consultant or part time is choice,

depending upon size of organisation.• A change agent must have and necessary information

about the client system.• He should be free to determine the appropriate

interventions.• He should have expertise ands kills in group processes.