Introduction to Organization Development

Dr. Anuraag Awasthi

Learning ObjectivesChanging Environment.Define OD and recognize need for change.Describe five stages of OD.

Text Books : French, W., Cecil, H. Bell Jr. (2004) Organizational Development, PHIJones, G. R. (2nd Edition, 2004). Organizational Theory, Addison Wesley Publishing Company

Ref. Books :Burnes B. (1996), managing Change: A Strategic Approach to Organizationa Dynamics, London, PitmanCummings, T.G. & Warley, C.G. (7th Edition, 2001), Organizational Development & Change. Cincinnati, Ohio:South Western

Challenges for OrganizationsChange avalanching down on us.Todays world is different from yesterdays.Organizations need to adapt to change.Organizations in continuous interaction with external forces.

The Organizational Environment

Changing Organization of Twenty-First Century

The Only Constant Is ChangeToday's managers need new mind-set. Flexibility.Speed.Innovation.Constantly changing conditions.

Successful FirmsShare These TraitsFaster.Quality conscious.Employee involvement.Customer oriented.Smaller.

*Change: Organizational PerspectivesTypes of Organizational ChangeAnticipatory changes: planned changes based on expected situations.Reactive changes: changes made in response to unexpected situations.Incremental changes: subsystem adjustments required to keep the organization on course.Strategic changes: altering the overall shape or direction of the organization.

*Change: Organizational Perspectives (contd)TuningThe most common, least intense, and least risky type of change - basic routines are unchanged.Also known as preventive maintenance and kaizen (continuous improvement).Key is to actively anticipate and avoid problems rather than waiting for something to go wrong.

*Change: Organizational Perspectives (contd)

AdaptationIncremental changes that are in reaction to external problems, events, or pressures.

*Change: Organizational Perspectives (contd)ReorientationChange that is anticipatory and strategic in scope and causes the organization to be significantly redirected.Also called frame bending (Nadler and Tushman).

*Change: Organizational Perspectives (contd)Re-CreationIntense and risky decisive change that reinvents the organization.Also called frame breaking (Nadler and Tushman).

*Individual Reactions to ChangeHow People Respond to Changes They LikeThree-stage processUnrealistic optimismReality shockConstructive direction

*Individual Reactions to Change (contd)How People Respond to Changes They Fear and DislikeStagesGetting off on the wrong trackLaughing it offGrowing self-doubtBuying inConstructive direction

*Why Do Employees Resist Change?SurpriseUnannounced significant changes threaten employees sense of balance in the workplace.InertiaEmployees have a desire to maintain a safe, secure, and predictable status quo.

*Why Do Employees Resist Change?Misunderstanding and lack of skillsWithout introductory or remedial training, change may be perceived negatively.Emotional Side EffectsForced acceptance of change can create a sense of powerlessness, anger, and passive resistance to change.

*Why Do Employees Resist Change? (contd)

Lack of TrustPromises of improvement mean nothing if employees do not trust management.Fear of FailureEmployees are intimidated by change and doubt their abilities to meet new challenges.

*Personality ConflictsManagers who are disliked by their managers are poor conduits for change.Poor TimingOther events can conspire to create resentment about a particular change.Lack of TactNot showing sensitivity to feelings can create resistance to change.Why Do Employees Resist Change? (contd)

*Threat to Job Status/SecurityEmployees worry that any change may threaten their job or security.Breakup of Work GroupChanges can tear apart established on-the-job social relationships.Competing CommitmentsChange can disrupt employees in their pursuit of other goals.Why Do Employees Resist Change? (contd)

*Overcoming Resistance to ChangeStrategies for Overcoming Resistance to ChangeEducation and communicationParticipation and involvementFacilitation and supportNegotiation and agreementManipulation and co-optationExplicit and implicit coercion

*Making Change HappenTwo Approaches to Organization ChangeOrganization Development (OD)Formal top-down approachGrassroots ChangeAn unofficial and informal bottom-up approach

*Planned Change Through Organization Development (OD)Organization development (OD) Planned change programs intended to help people and organizations function more effectively.Applying behavioral science principles, methods, and theories to create and cope with change.

What Is OD? Long-term, planned, sustained efforts aimed at improving an organizations ability to survive by changing problem-solving and renewal processes.

OD techniques apply behavioral science principles and practices in organizations to increase individual and organizational effectiveness.

What Is OD? OD is a process for teaching people how to solve problems, take advantage of opportunities, and learn how to do that better and better over time.

OD is about developing both organizations and individuals.

OD Is:Planned.Organization wide.Managed from top.Increases organization effectiveness.Planned interventions.Uses behavioral science knowledge.

Goals of OD Two major goals of OD are :To improve the functioning of individuals, teams and the total organizationto teach organization members how to continuously improve their own functioning

OD is about developing both organizations and individuals.

Goals of OD OD deals with people and work systems problems :

poor morale, low productivity, poor quality, interpersonal conflict, intergroup conflict, unclear or inappropriate goals, inappropriate leadership styles, poor team performance, inappropriate organization structure, poorly designed tasks, inadequate response to environmental demands, poor customer relations, inadequate alignment among the organizations strategy, structure, culture and processes, and the like.

The Characteristics of OD Planned change.Collaborative approach.Improves performance.Humanistic values.Systems approach.Scientific approaches.

Major Characteristics of the Field of OD

Why OD?Most cited reasons for beginning change program:The level of competition.Survival.Improved performance.

Primary Goals of Change ProgramsIncrease productivity.Increase responsiveness.Improve competitive position.Increase employee involvement.Increase employee morale.Develop new managerial skills.

Table 1.2Major Goals of Large-Scale Change Programs

Factors Leading to Emergence of ODNeed for new organizational forms.Focus on cultural change.Increase in social awareness.

Who Does OD? OD practitioners consist of specialists and those applying OD in daily work:Professionals and specialists trained in OD.Managers and leaders applying OD.

Who Does OD? OD specialists: Internal practitioners from within organization.External practitioners from outside organization.

Who Does OD? ( Activities include:Team leaders developing teams.Building learning organizations.Implementing total quality management.Creating boundaryless organizations.