ORGANIZATION DEVELOPMENT

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ORGANIZATION DEVELOPMENT

• The New Approach to change

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What is OD

• A series of planned processes by which human
  resources are identified, utilized, and developed
  in ways that strengthen organizational
  effectiveness by increasing problem-solving
  capabilities and planning

OD IMPLIES

• planning

• identification and use of human resources

• strengthening of organizational effectiveness

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How does OD affect top management?

• It is long-range in perspective
• Requests support from the top managers, because
  they control resources and rewards
• Expands their ideas, beliefs, and behavior

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How does OD affectemployees?

• diagnosing problems
• considering solutions
• selecting a solution
• identifying change objectives
• implementing planned change
• evaluating results

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• OD brings
• MANAGERS
• and
• EMPLOYEES together

• holding them all responsible for the success and
  failure of a change effort.

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Key terms in OD

• CHANGE a departure from the status quo
• Alpha change constant progress
• Beta change variable progress
• Gamma change variable progress combined with a
  radical change transformational change
• CHANGE AGENT the person responsible for
  beginning and maintaining a change effort
• CLIENT organization, group, individual whose
  interests the change agent primarily servers
• CULTURE basic assumption and beliefs shared by
  the members of an organization
• INTERVENTION a change effort
• ORGANIZATIONAL DEVELOPMENT (different from OD)
  any effort to improve an organization
• SPONSOR one who underwrites, legitimizes and
  champions a change effort or OD intervention
• STAKEHOLDER one who has an interest in an OD
  intervention
• SUBSYSTEM part of a system (e.g. work units,
  department, divisions, activities, processes,
  structures)
• SYSTEM inputs, transformation processes,
  outputs

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Philosophical Influence on the OD Schools of
Management Thought

• THE CLASSICAL SCHOOL
• Assumptions
• Work is inherently distasteful to most people
• What workers do is less important than what they
  earn for doing it
• Policies
• The managers basic task is to supervise and
  closely control subordinates.
• The manager must break down tasks into simple,
  repetitive, easily-learned operations.

• THE HUMAN RESOURCES SCHOOL
• Assumptions
• Work is not inherently distasteful. People want
  to contribute to meaningful goals which they have
  helped establish.
• Most people can exercise far more creative,
  responsible self-direction and self-control than
  their present jobs demand.
• Policies
• The managers basic task is to coach and to make
  use of untapped human resources.
• The manager must create an environment in which
  all members may contribute to the limits of their
  abilities.

• THE HUMAN RELATIONS SCHOOL
• Assumptions
• People want to feel useful and important.
• People desire to belong and to be recognized as
  individuals.
• Policies
• The managers basic task is to make each worker
  feel useful and important.
• The manager should keep subordinates informed and
  listen to their objections to the managers plans.

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• THE CLASSICAL SCHOOL
• The manager must establish detailed work routines
  and procedures and enforce these firmly and
  fairly.
• Expectations
• People can tolerate work if the pay is decent ant
  the boss is fair.
• If tasks are simple enough and people are closely
  controlled, they will produce up to standards.

• THE HUMAN RELATIONS SCHOOL
• The manager should allow subordinates to exercise
  some self-directions and self-control on routine
  matters.
• Expectations
• Sharing information with subordinates and
  involving them in routing decisions will satisfy
  their basic needs to belong and feel important.
• Satisfying these needs will improve morale and
  reduce resistance to formal authority
  subordinates will willingly cooperate.

• THE HUMAN RESOURCES SCHOOL
• The manager must encourage full participation on
  important matters, continually broadening
  subordinate self-direction and control.
• Expectations
• Expanding subordinate influence, self-direction,
  and self-control will lead to direct improvements
  in operating efficiency.
• Work satisfaction may improve as a by-product
  of subordinates making full use of their
  resources.

Source Miles, R.E.(1975), Theories of
Management Implications for Organizational
Behavior and Development, New York McGraw-Hill,
p. 35.
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Methodological Influences to OD

• Laboratory training
• Survey Research and Feedback Rensis Likert

Likerts Four Types of Organizations

• System 1 Exploitive-Authoritarian
• Dogmatic leadership
• Manipulative use of rewards
• Top-down communication

• System 2 Benevolent-Authoritative
• Parental approach o management

• System 3 Consultative
• Management listens to employees, but reserves
  the right to male decisions
• Some reliance on intrinsic rewards most rewards
  are based on extrinsic (money rewards)

• System 4 Participative
• Leadership based in influence
• Intrinsic rewards predominate
• Two-way communication

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Newer contributions to the development of OD

• TQM Total Quality Management drives attention
  on the creative human potential and on peoples
  ability to improve their work

• BPR Business Process Reengineering brings
  interest to the radical organizational change and
  restructuring

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Human Relations Fields
1. HR Development
2. HR Management
3. HR Environment

• Training
• Education
• Development

• Recruitment
• Selection
• Placement
• Compensation
• Benefits
• Appraisal
• HR information systems

• Organization Development
• Job redesigning

Common Goal to bring about the possibility of
performance improvement and/of personal growth
Common Goal to increase organizational
productivity by using the talents of its current
employee
Common Goal to improve the work environment
through planned, long-term, and group-oriented
change in organizational structures or
interpersonal relations
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The Human Relations Wheel (McLagan, 1989)
HR Development represents the integrated use of
a) TRAINING AND DEVELOPMENT
b) ORGANIZATION DEVELOPMENT
c) CAREER DEVELOPMENT
to improve individual, group, and organizational
effectiveness.
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Knowledge Requirements for OD specialists

• Organization Development
• HR planning
• Training and development
• Employment and personnel practices
• Compensation and benefits
• Personnel research
• Collective bargaining
• HR information system
• Health and safety

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OD can can only intervene in situations of

• Need for change felt at the top of the management
• Problems in the work environment
• Managers committed to long-term improvement
• Managers and employees are all willing to listen
  to the ODs key assumptions formulated by
  internal or external consultants
• Trust and cooperation
• Top managers are willing to provide all necessary
  resources for expertise

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Alternatives to OD

• 4. THE PERSUASIVE APPROACH convincing people
  that change is needed
• 5. THE COERCITIVE APPROACH imposing change by
  force it is generally counterproductive and it
  is considered as a last alternative

• THE LEGALISTIC APPROACH intervenes when there
  are differences between the legal standards and
  the organizations practices
• THE DIALECTIC APPROACH public debate between
  two persons or groups analyzing the same problem
  from two different perspectives
• THE LEADERSHIP CHANGE APPROACH the temporary
  change of the leader

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THE END