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Unit 3 Organization Development

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Page 1: OD Handout

Unit 3

Organization Development

Page 2: OD Handout

OD : Concept

• Organization Development is a systematic application and transfer of behavioral science knowledge to the Planned development , improvement , and reinforcement of the strategies, structures ,and processes that lead to organization effectiveness

Page 3: OD Handout

Organization Development

• OD is a planned ,systematic, organized and collaborative effort where behavioral science and organization theory principles and practices are continuously applied ,in order to increase the quality of life which is reflected in increased organizational health and vitality, enhanced individual and group member’s competence and self worth , and the general overall well being of the society

Page 4: OD Handout

OD

• OD refers to a long range effort to improve an organization’s problem solving capabilities and its ability to cope with changes in its external environment with the help of external or internal behavioral scientist consultants,or change agents ,as they are sometimes called

Wendell French

• OD is an effort (1) planned,(2)organization wide ,and (3)managed from the top ,to(4)increase organization effectiveness and health through (5) planned interventions in the organization’s “processes”,using behavioural science knowledge .

Richard Bechard

Page 5: OD Handout

OD comprises…..Examples.• Does the organization meet the needs of its employees? • Do the employees work effectively to make the organization a success? • How can the symbiotic relationship between employee satisfaction and

organizational success be optimized?

Organizational development places emphasis on the human factors and data

inherent in the organization-employee relationship. Organizational development strategies can be used to help employees become more committed and more adaptable, which ultimately improves the organization as a whole.

Page 6: OD Handout

Growth and Relevance of OD

• Globalization • New markets …New Govt….new global economy with

opportunities and threats …..

• Information Technology• How work is performed….how to use knowledge …how to

evaluate cost of doing business….e-commerce etc.

• Managerial innovation• Strategic alliances …New thought process….downsizing …

more efficient and effective ways

Page 7: OD Handout

Evolution

• Influence of globalization and Information Technology on OD

• Growth of Professional societies , educational programme , researchers , practitioners….

• OD work is also being done in Schools , communities ,armed services etc .

Page 8: OD Handout

OD Practitioner

Specialize OD as profession….they may be internal or external consultants who offer professional services to organization clients ,including top managers ,functional department heads and staff groups

Applies to people specializing in field relating to OD ,such

as reward systems ,organization design , total quality , Information technology , business strategy

Applies to increasing no. of managers and administrators who have gained competence in OD and who apply it to their own work areas

Page 9: OD Handout

OD History: 5 Stems

Laboratory Training

Action Research /Survey Feedback

Normative Approach

Quality of Work Life

Strategic change

Current OD

Practice

Page 10: OD Handout

Laboratory Training

• Also known as T- group ( training groups )– A small unstructured group in which participants

learn from their own interactions and evolving dynamics about such issues as

– Interpersonal skills – Personal growth – Leadership– Group dynamics

Page 11: OD Handout

Action Research and Survey Feedback

• A collaborative effort initiated between the Organization members and social scientists ……1. Problem identification2. Consultation with Behavioral science expert 3. Data Gathering and preliminary diagnosis 4. Feedback to Key client or Group5. Joint diagnosis of the Problem 6. Joint Action Planning 7. Action8. Data Gathering after Action9. Further Feedback to Key Client

Page 12: OD Handout

Normative Background

“One best way “ to manage Likert’s participative Management

• Exploitive authoritative systems - 1• Benevolent authoritative systems- 2• Consultative systems -3• Participative group systems-4

Survey feedback process on “ Profile of the Organization characteristics”Benchmark setting as per systems 4 Opinions about the Leadership , motivation, communication, decisions , goals and

controlDiscrepancy found between the present and Systems 4Generated Action Plan

Page 13: OD Handout

Managerial Grid

Page 14: OD Handout

Managerial Grid

• Concern for Production:– Range of behaviors like :

• Accomplishing productive tasks • Developing creative ideas• Work load measurements • High quality staff services

• Concern for People :– Individual’s personal growth– Good working conditions – Fair salary structure

Page 15: OD Handout

Managerial Grid • Here's a snapshot of the five different leadership styles resulting from the grid:

(1,1) 'Impoverished' The leader exerts (and expects) minimal effort and has little concern for either staff satisfaction or work targets. This is a leader who is going through the motions is indifferent, non-committal, resigned and apathetic. S/he is doing just enough to keep their job

(1,9) 'Country Club' The leader is attentive to his/her people's needs and has developed satisfying relationships and work culture - but at the expense of achieving results. The leader is defined as agreeable, eager to help, non-confrontational, comforting and uncontroversial.

(5,5) 'Middle of the Road' (Politician) This leader is a compromiser who wants to maintain the status quo and avoid any problems. Is aware of and wants a focus on productivity but not at the expense of the morale of his/her team.

Page 16: OD Handout

Managerial Grid • (9,1) 'Authoritarian' The leader concentrates almost exclusively on

achieving results. People are viewed as a commodity to be used to get the job done. Communication is de-emphasized and conflict is resolved by suppressing it. Leadership is controlling, demanding and over-powering.

(9,9) 'Team' The leader achieves high work performance through 'leading' his/her people to become dedicated to the organizational goals. There is a high degree of participation and teamwork, which satisfies the basic need of people to be involved and committed to their work. The leader may be characterised as open-minded, flexible and one who inspires involvement.

Cautionary note: This model could lead you to think there is one best style. Please avoid that mistake. Certain styles work extremely well in different circumstances.

Page 17: OD Handout

Quality of Work Life • Specific techniques and approaches used for

improving work …

• Work design …job enrichment ..reward systems…work flows …management styles ….

• Focus shifted from individual programs to work groups ….human dimension for organizational efficiency

• Employee involvement …employee empowerment …TQM…Six sigma programs ….

Page 18: OD Handout

Strategic Change Background

• Involves improving the alignment among an organization’s environment ,strategy and organization design

• Need for strategic change is due to external or internal force

• Implementing strategic change requires practitioners to be familiar with competitive strategy, finance and marketing as well as team building , survey feedback etc .

Page 19: OD Handout

OD in Practice ♦ Leveraging Technology and Worldwide Integration

■ Leveraging and aligning technology with business strategies ■ Speed, flexibility and innovation ■ Learning and Knowledge Management

♦ Implications ■ OD Profession ► Marry capabilities of technology with individual and organizational needs ► Understand best practices in technology integration and implementation ► Model virtual training and learning in professional activities ► Recognize and address challenges of technology from a people perspective

(e.g., virtual teams and meetings) ■ OD Practitioner ► Support business leaders in implementing new technologies ► Build resiliency into organizations as they integrate new technologies ► Foster continuous learning and knowledge sharing in organizations ► Stay current with technology advances and incorporate them in our practice

♦ Value to Business Leaders and Businesses Leveraging and alignment of technology with business and people ■ strategies ■ Exploit technology and readily adapt to the latest technological advances for competitive advantage ■ Use technology to support learning and innovation for better results

Page 20: OD Handout

Thank you

Page 21: OD Handout

Assignment

Q1.What do you understand by OD ? What are the important characteristics of OD

Q2 : What is the future of OD in India ?

Q3 : Elaborate the Action Research Model .

Page 22: OD Handout

Process of OD

Page 23: OD Handout

Process of OD

• Entering and Contracting • Diagnosing Organizations • Diagnosing groups and jobs • Collecting and Analyzing diagnostic information• Feeding back diagnostic information• Designing interventions • Leading and Managing change • Evaluating and institutionalizing interventions

Page 24: OD Handout

Entering and Contracting

Entering into an OD

relationship

•Clarifying the Organizational issue •Determining the relevant client•Selecting an OD practitioner

Develop a Contract

•Mutual Expectations •Time and Resources •Ground rules

Page 25: OD Handout

Contd …..

• Clarifying the Organizational issue – Clarity on the issue/problem is of prime

importance • ….preliminary data collection…examine company

records …interviews…

– Duration of collection of this data may be few hours or 1-2 days

Page 26: OD Handout

Determining the Relevant Client

• Defining /identifying the relevant client – Active involvement of the client is critical– Who has the direct impact on the organizational

issue ?– Simple process if problem is in a specific unit

…..complex in case of multiple units /different hierarchical levels /outside the organization…inter-departmental conflicts

– Client may change in later stages of the OD process…

Page 27: OD Handout

Selecting an OD practitioner

• Has the expertise and experience to work on the organizational issue

• How to select a practitioner – Proposals to be submitted• Goals , recommended action, specification, strategy,

fees , terms and conditions etc .

Page 28: OD Handout

Developing a contract

• Contracting clarifies how the OD process will proceed..mutual understanding and agreement of the OD process

• Establishes expectations of the parties…Eg decreased turnover, high job satisfaction

• Time and resources that will be expended • Ground rules under which the parties will operate .• May be a verbal or written agreement b/w the

client and OD practitioner

Page 29: OD Handout

Diagnosing Organizations

• Process of understanding a system’s current functioning

• Provides the information necessary to design the change intervention

• Determines organizational issues to focus on , how to collect and analyze data to understand them

• Assesses current functioning to discover areas for future development

Page 30: OD Handout

Diagnosing OrganizationOrganization Level

Inputs Design Components Output

General environment

Organization effectiveness,

Performance productivity,

customer satisfaction

Technology, Structure ,Measurement Systems ,

Human Resource Systems , Culture , Strategy

Page 31: OD Handout

Diagnosing Groups and Jobs Group Level

Organization design

Goal Clarity , Team functioning , Group norms ,

Group composition, task structure

Team Effectiveness, performance

Organization design

Group DesignPersonal

Characteristics

Task identity , skill Variety, Autonomy , Task

significance , Feedback about results

Individual Effectiveness, job

satisfaction, personal

development etc

Individual Level

Page 32: OD Handout

The Steinway Organization

• What is the company’s general environment ?• What is the Company’s industry structure ?• What is the Company’s strategy?• What are the company’s technology ,structure

,measurement systems and HR systems ?• What is Steinway’s Culture ?• What are the Concerns?

Page 33: OD Handout

MSOD Program

• What is the design of larger organization within which individual jobs are embedded ?

• What is the design of the group containing individual jobs ?

• What are personal characteristics of job holders ?• How much is the task significance and task identity in

PA’s job ?• How much autonomy is included in the job ?• How much feedback about results does the job contain ?• Comment about the proposed change .