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Management and Organisational Development Unit 4 Sikkim Manipal University Page No. 72 Unit 4 Process of OD Structure: 4.1 Introduction Objectives 4.2 Process of OD Components of OD program OD program phases 4.3 Making an Entry 4.4 Developing Contract 4.5 Launch Assessment Action planning Implementation Follow-up 4.6 Situational Evaluation 4.7 Closure 4.8 Summary 4.9 Glossary 4.10 Terminal Questions 4.11 Answers 4.12 Case Study 4.1 Introduction In the previous unit, you studied about OD Practitioner and various related aspects such as role, competencies, strengths and career prospects of an OD practitioner. In this unit, we will introduce you to OD process. Organisations need to continuously introduce positive changes with the help of the organisation development process for their survival in today’s competitive environment. You should know that any organisational development process begins with the understanding of problems in the organisation that have to be solved. This process includes different stages and phases. The process is cyclic and ends only when required result is achieved. It is how you manage an OD program that makes the difference between success and failure.

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Page 1: Mu0011 Slm Unit04

Management and Organisational Development Unit 4

Sikkim Manipal University Page No. 72

Unit 4 Process of OD

Structure:

4.1 Introduction

Objectives

4.2 Process of OD

Components of OD program

OD program phases

4.3 Making an Entry

4.4 Developing Contract

4.5 Launch

Assessment

Action planning

Implementation

Follow-up

4.6 Situational Evaluation

4.7 Closure

4.8 Summary

4.9 Glossary

4.10 Terminal Questions

4.11 Answers

4.12 Case Study

4.1 Introduction

In the previous unit, you studied about OD Practitioner and various related

aspects such as role, competencies, strengths and career prospects of an

OD practitioner. In this unit, we will introduce you to OD process.

Organisations need to continuously introduce positive changes with the help

of the organisation development process for their survival in today’s

competitive environment. You should know that any organisational

development process begins with the understanding of problems in the

organisation that have to be solved. This process includes different stages

and phases. The process is cyclic and ends only when required result is

achieved. It is how you manage an OD program that makes the difference

between success and failure.

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Therefore, in this unit you will able to provide guidelines which helps the

organisation to ensure success in managing OD Program.

In this unit, you will study many of the common techniques and approaches

associated with OD process. Our goal in this unit is to provide you a basic

framework for understanding OD process. We focus primarily on process of

OD, making an entry, developing contract and launching. We will conclude

this unit with a discussion of situational evaluation and finally closure.

Objectives:

After studying this unit, you should be able to:

describe the OD process

identify and give examples of different components of OD process

discuss the phases in the OD Program

4.2 Process of OD

Nowadays, one of the most challenging tasks for the organisation is to bring

out change by selecting and implementing the appropriate methods. The

process of OD is very complex and it takes around a year or more for its

completion.

4.2.1 Components of OD Programs

All OD Programs have three basic components as you can see in figure

4.1.These are – Diagnosis, Action and Programming.

(Source: http://www.authorstream.com/Presentation/Bharathisunagar-347048-5-

managing-od-process-entertainment-ppt-powerpoint/)

Figure 4.1: Components of OD Program

DIAGNOSIS

ACTION

PROGRAMMING

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1. The diagnosis component: An OD program starts with the diagnosis,

collection and analysing the data throughout. It represents the collection

of data about its processes, total system, its subunits and its culture.

You can collect data via Questionnaires, Interviews, Observations and

Unobtrusive method (Unobtrusive methods means observing the people

in their lifelike settings and avoiding being obvious about observing them

because this can impact the conditions and thus the data being

collected).

For any planned change, continuous diagnosis is compulsory for any

organisation and is therefore basic to all goal seeking activities. The

diagnostic activities are designed to provide an accurate account of

things as they are needed for two reasons:

first is to know the state of things, i.e. “what is”

second to know the effects or consequence of the actions

Diagnosis is basically concerned with an organisation’s –

strengths

opportunities

problem areas

discrepancy between current situation and vision of desired future

With the help of following example, you are going to get better

understanding of the diagnostic component.

Example: If program is to be implemented in a manufacturing

organization, it needs to be started from the assembly line and then

move on to other staff and supporting activities.

2. The action component: These plans are designed in such a way that it

helps the organisation to:-

correct the problems

seize new and better opportunities

build and maintain areas of strength

OD components and interventions are sets of structured activities in

which selected organisational units engage in a sequence of tasks that

will lead to organisational improvement. Planning action, executing the

action and evaluating the consequences are part to OD. Thus, the

desired changes are produced by the actions of OD interventions.

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The strategies of the intervention are based on the result of the

diagnostic process and the client system goals. It basically solves the

real problems instead of hypothetical problems. With the help of

following example, you will understand the action component.

Example: In human relations class, if a manager is having trouble

understanding and working with minority employees then he or she

would perhaps role play the situation with the instructor or fellow

students. In OD, the manager would probably interact with the minority

employees with whom he or she was having the difficulties but would do

so in carefully structured activities that have a high profitability of

learning for both parties of being a “success experience” for both parties.

3. The programming component: This component helps to improve the

functioning of the organisations which is executed with the help of

behavioural science principles and practices by the OD practitioners

which are then applied to manage the OD Programs.

Effectively managing the OD program reflects the success and failure of

the organisation. With the help of following example, you are going to

get a better understanding of the programming component.

Example: The Chrysler Group Company is an American automobile

producer based in Auburn Hills, Michigan. In the year 1925, it was first

formed as Chrysler Corporation. From years 1998 until 2007, the

company and its subordinates were among the Daimler Chrysler AG,

which is now called Daimler AG.

Before 1998, the Chrysler Corporation marketed under the symbol “C”

on New York Stock Exchange. In the early 1990s, Chrysler had terrible

customer service and press relations, with a history of innovation but

current reputation for out dated products. Its market share was falling,

and its fixed costs and losses were high.

Bob Lutz, the president, proposed a programme, Customer One. The

result was impressive as overhead was cut by $4.2 billion in less than 4

years. The company reversed its slide into bankruptcy and became

profitable.

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4.2.2 OD Program phases

A logical progression of events is observed by OD Programs. Good

execution is an important part of the OD program. You can better

understand the various phases of OD program with the help of following

figure 4.2:

(Source: http://mcleanglobal.com/public/MGC/ODP%20Figure%20

Revision%201.pdf)

Figure 4.2: OD Process Model

You can see in the figure various stages of the OD process. All these

phases can be summarised as:

1. Making an entry (Entry)

2. Developing the contract (Start up)

3. Launch

Assessment(Assessment and feedback)

Action Plans(Action planning)

Implementation

4. Situational Evaluation (Evaluation, Adoption, Separation)

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Case-Let :

JetBlue Airways & Organisational Development-Partners for Change

In JetBlue Airways Flight, the System Operations Centre (SOC) is the

heart of the airline – the epicentre where effective decision making,

communication, teamwork, and leadership are critical to ensure that

crewmembers are able to meet and exceed customer needs.

The 150 crewmembers of the SOC were at the forefront of these

organisational changes, which included turnover in leadership, expansion

into international markets, increased number of departures, and the

introduction of a new fleet type. Compounding the stress of these internal

changes were the external pressures of competing carriers emerging

from bankruptcy, increased fuel prices, as well as an increasing number

of low-fare carriers entering the marketplace.

JetBlue basically focused on the development of leaders with the

expectation that they will in turn treat their crewmembers right and lead

the company to prosperity. This model was appealing and easy to

interpret; more importantly, it linked to bottom-line business performance,

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including market share, sales growth, and employee and customer

satisfaction.

40 interviews and focus groups from all departments and all levels within

the SOC were conducted to gain insight into the perceived strengths and

weaknesses of the department. After synthesizing the data, the OD

consultant met with SOC leadership to interpret the data during a one-

day working session.

The leadership team spent time anticipating and discussing what their

results may look like before seeing them. Once some initial hypotheses

were presented, the results were reviewed and the group was able to

focus their attention on two things that were working well (high scores on

the survey) and two things that were not working well (low scores on the

survey). The group then reviewed specific information about the gap in

scores between directors and managers. This gap illustrated important

perception differences between these leadership levels, about the SOC

department as a whole, as well as their respective team results.

The OD consultant stressed to the leadership team that focusing on a

few relevant areas was much more effective than creating a laundry list

of opportunities. Collecting and analysing the data was only the first step

in the change process. The OD consultant met regularly with each

member of the SOC leadership team individually to educate them about

the role of leadership during the change process, reasons why people

resist change, and how to develop strategies to overcome that

resistance.

The organisational development and culture change work in the SOC

continues today. The SOC leadership team owns the process and the

culture of the department, making the OD team’s involvement very low

and leadership’s involvement very high. No longer is the kind of work that

resulted from this project considered additional duties that leadership

“must” perform.

Because the OD consultant set the foundation from the beginning by

delegating key tasks to stakeholders, having clear sponsorship and

having accountable leaders, a mindset shift has occurred – the idea that

creating a high performing culture is part of every leader’s job. The action

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plan that resulted from the Culture Change Monitor Survey is underway

and bi-weekly working sessions are held to execute the plan. JetBlue

plans to continue their work with the Denison Organisational Culture

Survey, administering the survey annually to assess strengths and

weaknesses.

The crew is upbeat as they know exactly where and when they are

supposed to report for their flight. The possible disruption to the flight due

to the late-arriving aircraft is avoided as the leaders of each team within

the SOC communicate to each other in an efficient, effective manner.

The customers, unaware of the activity behind the scenes now driven by

improved processes, tools, and more satisfied crewmembers, sit back

and enjoy JetBlue’s leather seats, DIRECTV® programming and award-

winning service.

(Source: http://www.denisonconsulting.com/Libraries/Resources/CS-2007-

JetBlue-System-Operations.sflb.ashx)

Self Assessment Questions

1. Collection of data about its processes, total systems, subunits and

culture is Diagnostic component. (True/False)

2. Which is not the component of OD Program?

(a) Diagnosis

(b) Situational evaluation

(c) Programming

(d) Action

3. Desired changes in the organisations are produced by the actions of

____________________.

4.3 Making an Entry

OD Program represents the following components:

initial contact between consultant and client

exploring the situation which help the client to seek a consultant

determining good match between the problem or the opportunity and

consultant and the client

The first phase of consulting is generally also called the “contact and

contract phase” in which the establishing of a consulting relationship is the

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main objective. In this phase, the most important aim and also the question

is “Is it possible to accomplish the kind of cooperative relationship that is

required for consulting to start?”

This phase usually starts out when a key decision-maker in the organisation

or someone with influence and power feels that the organisation has various

problems that could be resolved with the assistance of an OD practitioner.

Contact between the client and the OD consultant is what starts the entry

phase. After the initial contact, the OD consultant and the client start the

procedure of exploring the possibilities of a functioning relationship.

During this process, the OD consultant evaluates:

the prospect of associating with the client

the inspiration and values of the client

the client’s preparation for change

the level of resources available

possible leverage points of change

During this initial contact, OD consultant and the client carefully appraise

each other. The specialist has his own prescriptive developmental theory

and reference frame and must be mindful of these values and assumptions.

Sharing these values and assumptions with client from the root launches a

collaborative, open and productive atmosphere.

After completion of the necessary initial activities, the first step both

consultant and client take is to meet together to discuss the various issues

such as – whether they will work together or not, evaluate the willingness of

the organisation to change and be in the agreement on the same conditions

under which they will going to work together.

Identifying the basic needs for change is the first phase in the organisation

that reflects the nature of organisation, identifying the appropriate decision

maker and building up trust and maintaining the smooth and cordial

relationship which help the organisation to achieve its goals. The final

outcome of this step is joint decision made by the client and practitioner

about whether the relationship is worth pursuing or not. In table 4.1 given

below, you can study various entry tasks and actions for client/consultant

meeting.

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Table 4.1: Entry Tasks and Actions for Client/Consultant Meeting

Tasks Actions

1. Introductions Share and acknowledge personal and professional information for building client/practitioner relationship. Engage client with genuine interest and curiosity. Track what is being said and how information is being shared; attend to process and content; observe information about the culture, morale, and relationships.

2. Clarify meeting boundaries

Model effective meeting management: time, pace, outcomes, who needs to be present, roles.

3. Identify client(s) Identify contracting client(s), the client making use of the consultation, and the client with the authority to control the process and implement outcomes.

4. Invite client to “tell their story”

Ask questions and seek examples to understand concerns and issues, what the client system wants to change, the need behind the request to meet, other change efforts, current and previous strategies, successes and failures. Actively listen and reflect back to the client understanding of issues and concerns. Learn, adapt to, and appropriately use the language of the organisation.

5. Inquire about client wants, expectations, hopes

Engage in dialogue about wants, expectations, hopes, fears, and risks for the work and client/practitioner relationship. Attend to feelings in client and in self -- warmth, excitement, hostility, and disinterest.

6. Explore diversity issues

Explore client/practitioner differences and how they might impact the work and relationship. Inquire and share about organisational patterns and impacts for different groups; what is being tracked, heard, seen, and felt; and the meaning being made of it so far.

7. Explore values and ethics

Share values and ethical boundaries and inquire about those for the client. Foresee potential value conflicts or ethical dilemmas embedded in the consultation and explore them with the client

8. Surface resistance Explore the forces that will help and hinder success. Identify, name, and explore resistance in self and the client. Inquire about what is not being discussed.

9. Assess client/ practitioner “fit” and decide to proceed, recycle, or tell the client no

Assess fit between the client/practitioner needs, values, interests, time requirements, credibility, confidence, trust, readiness, and commitment to the work.

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Self Assessment Questions

4. ______________ is the first phase of the OD process.

5. Which of the following are the components of the entry phase of the

OD program?

(a) contact between client and consultant

(b) exploring the situation

(c) determining the good match between the problem or the

opportunity and consultant and the client constitute

(d) all of the above

6. Making an entry determines the cordial relationship and contact

between client and consultant. (True/False)

4.4 Developing Contract

When the entry stage has been successfully accomplished by the client and

consultant about their needs, values, interests, time required, credibility,

confidence, trust readiness and commitment to work, the next step is to

develop the contract.

The contract involves:

a general agreement having first description preferably keeping open as

many options as possible for future changes

a mutual commitment by consultant and client to work towards

betterment

conditions necessary to start a successful collaboration, particularly in

terms of mutual roles and responsibilities.

Contracting basically involves – establishing mutual expectations reaching

agreement on expenditures of time, money, resources and energy and

clarifying what each party expects to get from the other and give to the

other.

In those cases where the manager of a work group or department serves as

his or her own OD practitioner, entering and contracting typically involve the

manager and group members meeting to discuss what issues to work on

and how they will jointly accomplish that. Here, entering and contracting are

relatively simple and informal. They involve all relevant members directly in

the process without a great number of formal procedures. In situations

where manager and administrators are considering the use of professional

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OD practitioners, either from inside or from outside the organisation,

entering and contracting tend to be more complex and formal.

Thus, there should be clarity in the agreement regarding the work related

issues i.e. who will going to address it, how it will going to achieve it , the

other stages of the OD process are likely to be confusing and create the

complexity in the organisation.

The basic objective of Contracting is to make good decisions so as it will

help the organisation to carry out the OD process successfully. The three

key areas in OD process are:

the expectations that each party gain from OD Process

time and resources spent on it

ground rules of working together

Example: Internal practitioners are often asked by one manager to “go fix”

another manager. This is clearly a set-up for a very difficult first meeting.

The practitioner’s role must still be to work through the stages of entry and

contracting and find those places where the manager is determined,

committed, involved, and feels ownership. Mutuality must be achieved or

there is no contract. And if there is no contract, there is no client.

In table 4.2, you can see various contracting tasks and actions between a

client and the consultant.

Table 4.2: Contracting Tasks and Actions for Client/Consultant Meeting

Tasks Actions

1. Clarify client goals and outcomes

Collaboratively develop clear statement of consultation goals and outcomes.

2. Describe consultation and requirements for success

Collaboratively develop description of the consultation/change process, possibilities and dilemmas embedded in it, implications for individual, interpersonal, group, and organisation levels of the system, and what is needed from the client, organisation, and practitioner for a successful consultation.

3. Clarify wants, needs, wishes

Explore and share client/practitioner wants, needs, wishes..... for contact, control, information, and involvement in the consultation. Make affirming statements and demonstrate understanding and empathy. Provide reassurance.

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4. Clarify roles, responsibilities, commitment

Clarify and define client/practitioner roles, responsibilities, and levels of commitment. Agree about joint client/practitioner responsibility for consultation outcomes.

5. Define project/consultation scope

Collaboratively define the scope of the project, including initial strategies, objectives, steps, critical success factors, stakeholders, participants, products (if any) and delivery time lines, external factors that can impact the consultation, and who else needs to be involved in defining the details of the project.

6. Negotiate consultation resources

Negotiate time, money, support services, and involvement of personnel required for successful project completion. Discuss costs openly, including practitioner fee structure, expenses, and payment schedule.

7. Establish process for feedback, evaluation, and termination

Establish ongoing process for evaluating all aspects of the consultation, including outcomes, deliverables, client/practitioner relationship, time lines. Provide for re-contracting at appropriate intervals. Establish ground rules for terminating the consultation.

8. Summarise contract and put it in written form

Collaboratively develop a written agreement summarising the consultation, including: client/practitioner expectations, process and scope, outcomes, deliverables, client/practitioner relationship, time lines, nature and frequency of client/practitioner communication, practitioner fee structure, expenses, and payment schedule. Determine next steps – who, what, when, where, how, how much, how long.

Self Assessment Questions

7. While developing a contract there should be clarity in ______________

related issues.

8. Select the important key areas in OD Process?

(a) the expectations that each party gain from OD Process

(b) time and resources spent on it

(c) ground rules of working together

(d) All of the above

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9. The basic objective of OD is to make good and appropriate decisions.

(True/False)

Activity 1

With the help of diagnostic framework, analyse the culture of a major

retailer by consulting (1) the company/organisation’s website; (2)

company publications/ documentation/ advertisement; (3) the retail outlet

(customer face): and (4) observing the behaviour of staff.

4.5 Launch

After entering and developing the contract, the next step in the OD process

is to Launch which involves Assessment, Action plans, Implementation and

Follow-up of those plans (See figure 4.3).

Figure 4.3: Steps in Launch of OD Process

4.5.1 Assessment

It is a fact finding phase which is also known as diagnostic or analysis

phase. In this phase both the consultant and the client work together which

determine the norms and culture which reflects the strength and weakness

of the organisation and finally deliver the appropriate information to the other

members of the organisation.

This picture of organisation is shown with the help of the data gathered

through interviews, questionnaires, observations, examination of

organisation documents and information.

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With the help of following example, you can better understand why

consultant applies the assessment approach in the organisation.

Example: a consultant can use a business assessment approach that looks

at what is working/not working from customer, employee and financial

perspectives. From there, a consultant makes choices on how to conduct

the assessment. Some consultants choose an appreciative inquiry approach

that boils down to what is working instead of asking questions about what is

not working.

Thus, it helps the consultant to diagnose the problems and troubles that

arise in the organisation and accordingly recommend the appropriate

interventions and looking out for better opportunities that helps the

organisation to be successful in achieving its objectives.

4.5.2 Action planning

It refers to the activities that help the organisation to know:

what requirements are to be needed

when this requirement is to be needed

by whom this requirement is to be done

with the help of which resources or inputs these requirements are to be

carried out

Planning is made in order to build the strength and opportunities for the

following purposes in the organisation:

enhancement

challenges

cultural norms

concerns

Developing and adopting the best strategies and to manage the transition

between present and future states are the important key areas of action

planning. The guidelines needed for action plan are as follows:

There should be linkages between goals and activities

There should be clear identification of activities

Activities should be time sequenced

Top management must support the change plan

Plan must be cost effective

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Thus, it guides the organisation to move ahead so as to achieve its goals

and objectives for its success. Therefore, making the advance planning

helps the organisation in achieving long term results with the help of loading

the process of deliberate success.

4.5.3. Implementation

This is also known as Intervention which helps the organisation to develop

and adopt the plans that were made in the above phase. Thus, with the help

of implementation of plans, the organisation will able to find out correct and

accurate problems and seize out better opportunities.

If the implementation is not adopted properly then the whole process will

again start. Various forms of Implementations are shown with the help of

following table 4.3.

Table 4.3: Different Types of Implementation

Organisational Development

values, mission and values must be specified and clarified

clarification in the strategic direction

unity of purpose

strategy identification

implementation of plans

While working through resistance, mutual understanding, cooperation and commitment is necessary for strategic change

Team

Development

build up the committed, trusted and empowered teams

facilitate decision making and solving the problems of the team

finding out the requirement of the talented people for the present and future and prepare them to close the gap

For the new direction, team synergy, creativity and commitment must be structured.

Individual

Development

balancing career and matter related to life

develop personal and professional development plans

4.5.4 Follow-up

It provides the opportunity for the members of the organisation to become

the part of the change process, to learn about how one part of the

organisation affects the other and to become the participant in the selection

of appropriate change intervention.

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Self Assessment Questions

10. Which of the following are the categories of Launching?

(a) Assessment

(b) Action planning

(c) Implementation

(d) All of the above

11. Implementation is a fact finding phase. (True/False)

12. _____________ guides the organisation to move forward for achieving

its goals and objectives.

4.6 Situational Evaluation

After the implementation of the plan, the next step in the OD process is to

evaluate the situation which represents the assessing effects of the plans.

This phase answers the following questions:

Was it successful?

What changes occurred?

What were the techniques used?

Are we satisfied with the results?

Thus, it reflects whether the developed plan has helped the organisation in

achieving its goals and objectives or not.

To evaluate the situation the following things need to be identified:

success of the organisation

appropriate and meaningful changes in the efficiency and performance

of the organisation

identify needs for new OD activities

bring out changes in the process of OD which helps to make future

interventions more successful

Thus, situational evaluation helps to identify the effectiveness and the

efficiency of the proper utilisation of all its resources in achieving the

organisational goals. Therefore, organisational effectiveness is influenced

by the evaluation based on the series of situations.

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Self Assessment Questions

13. After implementation, the next important stage in the OD Process is

_________.

14. What analysis the organisation needs to do after evaluation:

(a) Is it successful?

(b) Occurrence of any changes

(c) Techniques used

(d) All of the above

15. Evaluation represents the assessing effects of the plans adopted by the

organisation. (True/False)

4.7 Closure

After the implementation and evaluation is done, the last and the final stage

in the OD Process is to find out whether the goals of the intervention that

have been evaluated in the above stage has been achieved or not.

If yes then the change that was implemented becomes the part of the

business of the organisation and will be institutionalised.

Self Assessment Questions

16. The last stage of the OD Process is __________________.

17. Implementation of plan that has been institutionalised in the

organisation has been done while developing the contract. (True/False)

18. Which of the following are included in the OD Process?

(a) Developing the contract

(b) Implementation

(c) Closure

(d) All of the above

Activity 2

Select an organisation of which you would you like to work and become

OD Practitioner. Give your opinion whether you want to work with it as an

Internal Consultant or External Consultant. Why?

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4.8 Summary

Effectively managing the OD Program decides the success or the failure

of the organisation.

To bring out change with the help of selection and implementation is the

most challenging task for any organisation.

The three basic components of OD Program are: Diagnosis, Action and

Programming.

The various steps that are the part of the OD phase are: Making an

entry, Developing a contract, Assessment, Action Planning,

Implementation, Situational Evaluation and finally Closure.

The way through which OD is to be carried out in the organisation is the

most important and essential factor of the Organisational change.

4.9 Glossary

Action plan: It is series of steps that must be taken for achieving the goal.

Change: Change means the new state of things and is different from the old

state of things.

Consultant: He is an advisor or a mentor or guide.

Contract: It is an agreement between two or more parties which must be

written and enforceable by law.

Diagnosis: It is a mutual effort done by the consultant and the organisation

members by gathering and organising the data and finally feed the data

back to the client system.

Organisational Development: OD is a planned approach to improve

employee and organisational effectiveness by conscious interventions in

those processes and structures that have immediate bearing on the human

aspects of the organisation.

4.10 Terminal Questions

1. Explain various components of OD Programs?

2. Why maintaining contract is essential for the organisational change?

3. What is diagnosis in OD?

4. Describe the steps in OD Process. Explain with the help of diagram.

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4.11 Answers

Self Assessment Questions

1. True

2. (b)

3. OD Intervention

4. Making an entry

5. (d)

6. True

7. Work

8. (d) All of the above

9. True

10. (d)

11. False

12. Action Planning

13. Situation Evaluation

14. (d)

15. True

16. Closure

17. False

18. (d)

Terminal Questions

1. The various components of OD Programs are: Diagnosis, Action and

Programming. For more details refer to section 4.2.

2. Developing the contract between the consultant and the client is the

important phase in the OD Program. For more details refer to section

4.4.

3. Diagnosis in OD is a mutual effort done by the consultant and the

organisation members by gathering and organising the data and finally

feed the data back to the client system. For more details refer to section

4.2.

4. The various steps that are the part of the OD phase are: Making an

Entry, Developing a Contract, Assessment, Action Planning,

Implementation, Situational Evaluation and finally Closure. For more

details refer to sections 4.3- 4.7.

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4.12 Case Study

Case: The Old Family Bank

The Old Family Bank is a large bank in the south-eastern city of California.

As a part of a comprehensive internal management study, H. Day, the data

processing vice president, examined the turnover, absenteeism, and

productivity figures of all work groups in the organisation. The results Day

obtained contained no real surprises except in the case of the check-sorting

and data processing departments.

The Study

The study revealed that in general the department displaying high turnover

and absenteeism rates had low production figures, and those with low

turnover and absenteeism were highly productive. When analysis began not

he check sorting and data processing figures, Day discovered that both

departments were tied for the lead for the lowest turnover and absenteeism

figures. What was surprising was that the check-sorting department ranked

first as the most productive unit, whereas the electronic data-processing

department ranked last.

The inconsistency was further complicated by the fact that the working

conditions for check-sorting employees are extremely undesirable. They

work in a large open room that is hot in the summer and cold in the winter.

They work alone and operate high-speed check-sorting machines requiring

a high degree of accuracy and concentration. There is little chance for

interaction because they all take rotating coffee breaks. The computer room

is air-conditioned, with a stable temperature the year round; it has perfect

lighting and is extremely quiet and convertible. It was known that both

groups are highly cohesive and that the workers function well with others in

their department. This observation was reinforced by the study’s finding of

the low levels of turnover and absenteeism.

The Interview Data

In an effort to understand this phenomenon, vice president Day decided to

interview the members of both departments. Day hoped to gain some insight

into the dynamics of each group’s behavior. It was discovered that the

check-sorting department displayed a great deal of loyalty to the company.

Most of the groups are unskilled or semiskilled workers, although they have

no organised union, and each person felt that the company had made

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special efforts to keep their wages and benefits in line with organised

operations. They knew that their work required team effort and were

committed to high performance.

A quite different situation existed in the data-processing department.

Although the workers liked their fellow employees, there was a uniform

feeling among this highly skilled group that management placed more

emphasis on production than on staff units. It was their contention that pay

increases had been better for operating department and that the gap

between the wage earners and salaried employees did not reflect the skill

differences. Because of that, a large percentage of the group displayed little

loyalty toward the company, even though they were very close among

themselves.

Questions:

1. Discuss the role of OD consultant. Identify the possible modes through

which consultant and client relate to each other.

2. What are the possible assumptions in the initial relationship between the

consultant and client?

3. What are the implications of these assumptions on the consultants

behaviour?

4. Identify the issues that need to be considered while developing the

effective client – consultant relationship.

Source: http://www.papercamp.com/group/old-family-bank-southeastern-city/page-

1200

References:

Lenny T Ralphs. (2004). Organization Development (A Practicioner’s

Tool Kit). New Delhi, India: Viva Books Private Limited.

Kavita Singh. (2010). Organisation Change and Development. New

Delhi, India: Excel Books Pvt. Ltd.

Carter McNamara. (2005). Consulting and Organizational Development

– A Collaborative and Systems Approach Performance, Change, and

Learning. Minnesota, USA: Authenticity Consulting, LLC.

Wendell L French, Jr. Cecil H Bell. (1998). Organization Development,

1/E. New Delhi, India: Pearson Education

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E-References:

http://mcleanglobal.com/public/MGC/ODP%20Figure%20Revision%201.

pdf/ Retrieved 13 June 2012, Time: 10:25 AM

http://www.authorstream.com/Presentation/Bharathisunagar-347048-5-

managing-od-process-entertainment-ppt-powerpoint/ Retrieved 13 June

2012, Time: 12:50 PM

http://my.safaribooksonline.com/book/hr-organizational

management/9780749460945/04-the-diagnostic-

phase/what_is_diagnosis_in_od_what_a/ Retrieved 14 June 2012,

Time: 11:25 AM

http://www.bkconnection.com/static/mcleanexcerpt.pdf/ Retrieved 14

June 2012, Time: 02:10 PM