Organizational Development (OD)

History of OD
Psychological Foundations of OD
OD-Growth & Relevance
OD Interventions
Evaluating OD Interventions
Bhilai Steel Plant (BSP) OD Interventions

1. 1

Organizational Development (OD)

Over the years, Organizational Development (OD) has continued its
growth and its orientation towards solving organizational problems. It is
certainly an important way of changing and improving organizations.
Schien (1992), mentions that

Organizational Development as a

planned change process, managed from the top, taking into account
both the technical and the human sides of the organization. OD has its
roots in psychology and sociology, and an extensive work by various
academic

researchers,

with

primary

focus

to

understand

organizations and the individuals within them.

Organizational Development is a professional field of social and also an
area of scientific inquiry. Organizational Development covers a wide
range of activities, it covers various topics, including the effects of
planned change, the methods of organizational change, and the factors
influencing Organizational Developments success.
Different authors understand Organizational Development with slightly
different

emphasis.

Warner

Burke

(1982)

states

Organizational

Development as a planned process of change in an organizations

culture through the utilization of behavioural science technology,
research and theory.

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1. 2
Organizational Development as per Richard Beckhard (1969) is an effort
which is

Planned, Organization-wide, and Managed from the top, to

Increase

organization

effectiveness

&

health

through

Planned

programmes in the organizations process, using behavioural science

knowledge.
Micheal Beer (1980) stated that Organizational Development is system
wide process of data collection, diagnosis, action planning, intervention,
and evaluation aimed at
(1)

Enhancing congruence among organizational structure, process,

strategy, people, and culture;

(2)

Developing new & creative organizational solutions; &

(3)

Developing the organizations self-renewing capacity. It occurs

through the collaboration of organizational members working with a

change

agent

using

behavioural

science

theory,

research,

and

technology.
The foresaid views therefore incorporates most of these views that
Organizational
behavioural

Development

science

is

knowledge

a
to

system
the

wide

planned

application

of

development,

improvement, and reinforcement of the strategies, structures, and

processes that lead to organizational effectiveness.

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1. 3
The notion of development in organizations has attracted considerable
research over the years. Robbins (2003) views OD as a collection of
planned-change interventions built on humanistic-democratic values
that seeks to improve Organizational effectiveness and employees wellbeing. According to Ogundele (2005); growth implies change and change
also implies development. Thus, growth and change could be used
interchangeably. Development refers to deliberate, planned, conscious
and proactive change implemented to achieve effectiveness in the
overall components of the organization. Luthans (1998) quoting Bennis
(1966) sees "development as a response to change, a complex
educational strategy intended to change the beliefs, attitudes, values
and structure of organizations so that they can better adapt to new
technologies, markets and challenges" Burke (1982) as cited in Luthans
(1998) views "development as a planned process of change in an
organizations culture through the utilization of behavioural science
technology, research and theory. French and Bell (1990) maintain that
development is a planned systematic process in which applied
behavioural science principles and practices are introduced into an
ongoing organization towards the goals of effecting organizational
improvement and greater organizational effectiveness.
The focus is on organizations and their improvement or, to put it
another way, total systems change. The orientation is on actionachieving desired results as a result of planned activities. Armstrong
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1. 4
(2006) views development as concerned with the planning and
implementation of programmes designed to enhance the effectiveness
with which an organization functions and responds to change. The aim
is

to

adopt

planned

and

coherent

approach

to

improving

organizational effectiveness. According to Armstrong (2006), an effective

organization can be viewed broadly as one that achieves its purpose by
meeting the wants and needs of its stakeholders, matching its resources
to opportunities, adapting flexibly to environmental changes and
creating a culture that promotes commitment, creativity, shared values
and mutual trust. To him, development is an all-embracing term
involving.

Change management

Team building,

Culture management

TQM (total quality management)

Business process reengineering

Performance management

French and Bell (1990) views development as a long-range effort to

improve an organizations problem-solving and renewal processes
through a more effective and collaborative diagnosis and management

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1. 5
of organization culture along with the assistance of a consultant or
facilitator and the use of theory and technology of applied behavioural
science, including action research. Action research here refers to an
approach to change in which an external person, often an academic
works with a team from within the organization, to analyze a specific
problem, suggest possible solutions, test them out and evaluate them.
Action research thus follows a systematic problem-solving sequence or
process such as (i) the problem plaguing the organization is identified
(ii) data is gathered, collated and analyzed (iii) feedback on progress is
shared by the group on a regular basis (iv) action is taken to test, revise
and then implement approved solutions, against with the aid of an
external consultant (v) both achievements and the process itself are
evaluated by group members.
Leavitt (1962) suggests that organizations could be developed or
changed by altering one or more of three major variables-- people,
structure and technology. Peters and Waterman (1982) widened the
range of variables in their adoption of a seven-item framework in their
analysis of excellence in major American companies contained in their
book In Search of Excellence. This so-called Mckinsey 7-s framework
is comprised of the following elements of organizations.
System: According to Koontz et al. (1980) almost all life is a system.
But to Peters and Waterman(1982), it means procedures/processes.

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1. 6
This means that all successful organizations must have procedures of
doing things in place.
Strategy: This is a broad statement of intent, which shows the types of
action required to achieve set objectives. Strategy is defined as the
direction and scope of an organization over the long term, in terms of its
goals, vision and mission. Strategies could be integrative, intensive, and
defensive or diversified (diversification strategy).
Staff: The people, their background, competences, how managers are
developed, how new entrants are trained, career management, who fits
what job, who should exit and what job should be outsourced etc.
Structure: How tasks are divided, grouped and integrated, roles,
responsibilities and reporting relationship and communication.
Style: This refers to both managerial and supervisory styles prevalent in
organizations and what is broadly referred to as leadership behaviour.
Shared Values: Values, beliefs and behaviour to which they give rise,
focusing attention, giving meaning and character to the organization.
This also refers to corporate culture.
Skills:

Distinctive

technical,

human

relations,

conceptual

and

leadership skills as well as peoples talents and competences.

McKinsey 7-s model of Organizational variables are elements of
organization design and strategic alignment. It could be adopted to
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1. 7
analyze the change requirements of an organization to enhance its
effectiveness and efficiency. Thus, any development or planned change
programme should be targeted at the above variables in order to achieve
effectiveness, innovation; reduced labour turnover, ensure greater job
satisfaction, motivation and acceptance of new techniques.
Development in organizations is a continuous process. There is no end
to it. The process of organizational effectiveness entails research,
knowledge, creativity, innovation and development.

HISTORY OF OD
In a little over five decades, OD has evolved a complex and diverse body
of knowledge and practice. Because this expertise derives mainly from
helping organizations change and improve themselves, the history of
OD can be understood in terms of the kinds of changes that
organizations have implemented over this time period. These include
changes aimed at: (1) social processes; (2)work designs; (3) human
resources; and (4) organization structures. Although these changes are
interrelated, each represents a distinct background in the growth of OD.

SOCIAL PROCESSES
The earliest applications of OD involved helping organizations improve
social

processes

including

relationships

among

members,

communication, group decision-making, and leadership. These process

changes started in the early 1950s and were largely in response to
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1. 8
emerging social problems that organizations experienced as they
became larger and more bureaucratic. During the first half of the
twentieth century, organizations grew increasingly large with numerous
departments, levels of management, and rules and procedures.
Management was largely responsible for commanding and controlling
the enterprise typically in an authoritarian or paternalistic manner.
Over time, these organizational conditions generated a host of
unintended social problems as members found it increasingly difficult
to communicate both laterally and vertically, to resolve problems within
and across groups, and to respond energetically to managerial
directives. ODs response to these social problems started in the late
1940s with the work of Kurt Lewin and his colleagues in laboratory
training. Bradford (1967) began with a training program for community
leaders which included both cognitive learning about leadership as well
as informal feedback about participant behaviour. Unexpectedly, the
feedback aspect of the training was found to be a rich source of
leadership expertise. This led to the development of laboratory training,
commonly called a T-group, where a small, unstructured group of
participants learn from their own interactions about group dynamics,
leadership, interpersonal relations, and personal growth.
Early OD applications were also guided by work on action research and
survey feedback. Action research started in the 1940s with applied
studies showed that research could be used in the service of
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1. 9
organization improvement if it was closely tied to action. Action
research is highly collaborative, involving both OD practitioners and
organization members; it is cyclical with initial research guiding action,
and further research directing additional action, and so on. Action
research has become a key process in applying OD to organizations.
Survey feedback also started in the 1940s and has become a major
component of most company-wide OD interventions. It involves
systematically collecting survey data about the organization and feeding
them back to members so they can discover sources of problems and
devise relevant solutions. On survey feedback a variety of instruments
resulted for assessing the attitudes of members towards organizations.
It showed how feeding back that information to members can motivate
and guide them to create meaningful change. This initial work in survey
feedback also directed attention to how organizations were managed. It
provided evidence that participative systems of management were more
effective than traditional authoritative or benevolent systems and
encouraged the growth of participative management in organizations,
which even today is evolving into popular interventions for enhancing
employee involvement or empowerment at the workplace

WORK DESIGNS
This branch of OD history involves designing work to make it more
motivating and fulfilling. Traditionally, work was designed to promote

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1. 10
technical rationality, resulting in jobs that were highly specified,
fragmented, and repetitive. In the 1960s, the benefits of such work
designs came more and more under question. Employees complained
that work was boring and meaningless; they felt alienated from their
jobs

and

the

organizations

that

employed

them.

Organizations

experienced growing problems with absenteeism, turnover, quality, and

productivity. These problems spawned widespread calls for government,
labor, and business to work jointly to improve the quality of the work
life of the employees.
OD sought remedies for these problems in new work designs that were
more geared to employee needs and aspirations than to traditional
designs. These interventions were based on the work of Eric Trist and
his colleagues in socio-technical systems and of Frederick Herzberg and
his colleagues in job enrichment. The socio-technical approach, which
originated in Europe and Scandinavia in the 1950s, structured work to
better integrate technology and people. It resulted in work designs that
enhance both productivity and employee satisfaction. Socio-technical
systems also showed that when tasks are highly interdependent and
require significant decision-making, teams comprised of multi-skilled
members who can make relevant decisions are the most effective work
design. Today, such self-managed work teams are the cornerstone of
work design in many organizations. Like socio-technical systems, job
enrichment aimed to make work more productive and humanly
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1. 11
rewarding.

It

approached

work

redesign

from

motivational

perspective, showing how traditional jobs could be enriched to make

them more motivating and satisfying. This required expanding jobs both
horizontally and vertically by providing a greater variety of tasks to
perform and greater amounts of discretion and decision-making. It also
involved giving more direct feedback of results to job holders.
Early success with job enrichment at such prominent companies as
AT&T led to rapid diffusion of this OD intervention to work redesign in
business, government, and the military (Ford, 1969).

HUMAN RESOURCES
This background of OD involves integrating people into organizations so
they join, remain, and produce at high levels. Concern for human
resources has traditionally been associated with the personnel function
in organizations. ODs interest in human resource practices grew
rapidly, many organizations faced serious global competition for the
first time. They needed to produce at higher levels at lower costs. This
placed heavy demands on human resources to achieve exceptional
performance; however, organizations increasingly questioned whether
their traditional human resource practices were up to the task. Answers
to this question showed that many practices were not performance
driven, particularly the way organizations rewarded employees. Because
people generally do those things for which they are rewarded, rewards

INTRODUCTION

1. 12
can play a powerful role in promoting performance. Unfortunately,
many of the reward systems in use at the time were not linked closely to
performance; employees were typically paid for a particular job level,
time at work, or seniority.
Based on the work of Lawler (1981) , OD examined how rewards affect
organization performance , this led to interventions aimed at making
rewards more contingent on performance. One method that has grown
in popularity over the past two decades is called gain sharing. It
involves paying organization members a bonus based on measurable
gains in performance over some baseline standard. Gain sharing
typically covers all members of a particular business unit and includes
only performance measures that members can control. To achieve gains
in performance, members are given the freedom to innovate and to
discover more effective ways of working. They are encouraged to work
together because their personal rewards are based on the performance
of the total business unit. Another reward system intervention that has
achieved widespread application is skill-based pay. Traditionally,
organizations pay members for the jobs they perform. Skill-based pay
rewards members for the number of different jobs they can perform.
This encourages members to learn new skills and to broaden their
expertise. It creates a highly skilled, flexible workforce that is essential
to high performance in todays rapidly changing environments.

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1. 13

ORGANIZATION STRUCTURES
The most recent applications of OD involve structuring organizations so
they are better aligned with their strategy and environment. Such largescale change has become more prevalent in the past two decades as
organizations have increasingly faced complex, rapidly changing
environments that often demand radical changes in how they compete
and design themselves (Mohrman et al., 1989). To help organizations
make these transformations, OD has expanded its focus to the total
organization and its competitive environment. Drawing on a variety of
perspectives in corporate strategy (Miles & Snow, 1978; Porter, 1980;
Hamel & Prahalad, 1994; Grant, 1998), OD has created interventions
for assessing an organizations competitive situation and making
relevant changes in strategy if necessary. This typically includes a socalled SWOT analysis where the organizations strengths and weakness
are

compared

to

opportunities

and

threats

in

its

competitive

environment. Then, a strategy is created to build on the strengths and

to take advantage of the opportunities, while accounting for the
weaknesses and threats.
OD has also generated applications for designing the various features of
an organization so they promote and reinforce strategy. Based on a
growing literature in organization design (Galbraith, 1977; Nadler et al.,
1992; Galbraith & Lawler, 1993), OD has created new structures that fit
better to todays situations than traditional bureaucratic designs. These
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1. 14
include: high-involvement organizations that push decision-making,
information and knowledge, and rewards downward to the lowest levels
of the organization (Lawler, 1986); boundary less organizations that
seek to eliminate unnecessary borders between hierarchical levels,
functional departments, and suppliers and customers (Ashkenas et al.,
1995); and virtual organizations that focus on the organizations core
competence

while

outsourcing

most

other

functions

to

other

organizations who do them better (Davidow & Malone, 1992). All these
structures are extremely lean and flexible; they enable organizations to
respond rapidly to changing conditions. Consistent with these new
structures, OD has applied recent work on organization learning and
knowledge management to organization change (Senge, 1990; Argyris &
Schon, 1996; Davenport & Prusak, 1998). These interventions help
organizations gain the capacity to continually learn from their actions
and to make effective use of such knowledge. Teece, (1998) studied that
learning capability is essential if organizations are to continually change
and renew themselves. It can provide strong competitive advantage in
complex, changing environments.

PSYCHOLOGICAL FOUNDATIONS OF OD
OD is an evolving field that draws on a diversity of theories. Its focus
has expanded beyond social processes that occur mainly among
individuals and within groups to include strategies and design
components for the total organization. This evolution has added
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1. 15
theoretical complexity to OD and made it increasingly difficult to define
its conceptual boundaries and to develop a unified theory of changing
and developing organizations. Despite this proliferation of knowledge,
OD rests on a core set of psychological concepts that guide how it is
conceptualized and applied. These psychological foundations have to do
with: (1) the nature of human beings in organizations; (2) motivation
that drives their behaviour; (3) resistance of such behaviour to change;
and (4) groups as the focus of organization change.

APPLICATION OF OD
How OD is applied in organizations closely follows its historical roots
and psychological foundations. The processes and activities used to
initiate and carry out organization change are deeply embedded in
values of openness, trust, and collaboration among organization
members; they are grounded in beliefs that members should be treated
maturely

and

actively

involved

in

change.

Based

on

these

fundamentals, applications of OD have evolved to meet the emerging

demands of organizations and their environments. As shown in the
history section of this chapter, OD interventions have grown larger and
more complex; they have become more strategic, involving a greater
array of stakeholders and organization design components. These
changes are reflected in how OD is carried out and practiced in
organizations today. To understand this evolution of OD practice

INTRODUCTION

1. 16
requires knowledge of three general approaches to change: (1) Lewins
three steps; (2) action research; and (3) action learning.

OD- GROWTH & RELEVANCE

The major factors that are making the organizations to change are,
Globalization, Information Technology, and Managerial Innovation.
The impact of Globalization is felt on the markets and environments in
which organization operates as well as the way they function. Every
component has a direct or indirect impact, like Government policies,
new leadership, new market, and new competitors are emerging and
creating a new global markets and economy.
The second factor is pertaining to Information Technology, as nearly all
the organization is switching on to this revolution of Information
Technology, the traditional approach is being replaced. Information
technology is changing how knowledge is used. Information that is
widely shared reduces the concentration of power at the top of the
organization.

Organization

members

now

share

the

same

key

information technology will generate new business models in which

communication and information sharing is nearly free.
The third major factor is Managerial Innovation, and this has resulted
in, new organizational forms, such as networks, strategic alliances, and
virtual corporations, provide organizations with new ways of thinking

INTRODUCTION

1. 17
about how to manufacture goods and deliver services. In addition, new
methods of change, such as downsizing and reengineering, have
radically reduced the size of organizations and increased their flexibility,
and new large-group programmes.
Large number of organizations are adopting the organizational changes
needed to survive and excel in todays highly competitive environment.
These organizations are making themselves more organized and more
responsive to external demands. In these types of organizations
employees are involved in key decisions and they are paid for
performance rather than for time. The employees of these organizations
are taking the initiative in innovating and managing change, rather
than simply responding to what has happened in the past.
Organization Development is playing

significant role in helping

organizations change themselves. It is helping organizations assess

themselves and their environments, to know exactly where they are
lacking, and revitalize and rebuild their strategies, structures, and
processes. OD is helping organization members go beyond surface
changes to transform the underlying assumptions and values governing
their behaviours. Perhaps at no other time has OD been more
responsive and practically relevant to organizations need to operate
effectively in the era of Globalization.

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1. 18
Today, the practice of OD comprises unifying concepts and practices
based on divergent philosophical orientations; one discusses learning
prior to change and the other discusses learning after change. Experts
like Bennis (1969), whose orientation was human process and human
relations, shared the philosophy that "one must understand an
organization in order to successfully change or improve it." The practice
that evolves from this philosophical basis is a collaborative process
among OD consultants and members of the organization. The practice
that evolves is one of analysis, problem solving, action planning, and
evaluation. Differing philosophical orientations provide practitioners
with opportunities to develop unique approaches to the practice of OD.

Organizational Development Interventions

OD interventions are sets of structured activities in which selected
organizational units engage in a sequence of tasks that will lead to
organizational improvement. Interventions are actions taken to produce
desired changes.
One of the four conditions gives rise to the need for OD interventions.
First, the organization has a problem; something is broken Corrective
actions interventions are implemented to fix the problem. Second,
the organization sees an unrealized opportunity; something it wants is
beyond its reach. Enabling actions interventions are developed to
seize the opportunity. Third, features of the organization are out of

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alignments; parts of the organization are working at cross-purposes.
Alignment activities interventions are developed to get things back
in sync. Fourth, the vision guiding the organizations changes;
yesterdays vision is no longer good enough. Actions to build the
necessary structures, processes, and culture to support the new vision.
Interventions are developed to make the new vision a reality.
Development activities are usually described as interventions, since
they are deliberate and planned efforts to bring about change. An
organization can be altered or changed by effecting dramatic changes in
its structure, its technology, its people or some combinations of these
aspects.

The

people

approach

means

changing

workers

and

management behaviour by focusing on their skills, knowledge, attitudes

and expectations. The structural approach means focusing on span of
management, delayering, altering lines of communication, combining
departmental responsibilities or a shift from one form of structure to
another based on the exigencies of the moment. The technological
approach

focuses

on

automation

and

computerization

of

office

procedures, work and changes in research techniques, the engineering

process as well as reengineering. The basic approaches to research and
organizational development are given fuller explanations below:

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1. 20

Structural Strategies
This represents planned structural and tasks interventions with the
objectives of increasing individual satisfaction and organizational
effectiveness. This includes delayering (removing vertical layers), job
rotation, job enrichment, job enlargement, autonomous work teams,
quality circles, shorter workweek, flexible time, and downsizing.

Humanistic Strategies
This is directed towards changing the attitude and behaviour of
individuals and groups through the process of communication,
decision-making and problem-solving. Popular techniques include
sensitivity training, survey feedback, performance counseling, quality of
work-life (enhancing overall satisfaction and well-being at work), term
process review, intergroup interaction, training and development.

Technological Strategies
Technology refers to a process, methods or techniques used in solving
organizational problems. Technology could be material, knowledge or
process in nature. The use of a particular solution for a particular
problem is called knowledge; the repeated use of knowledge for solution
is called technology. In essence, solution knowledge technology. Thus,
technology includes automation, computerization, ICT (Information and
Communication Technology) and reengineering. Hammer and Champy

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1. 21
(1993) in their best-selling book Reengineering the Corporation opine
that reengineering is the fundamental rethinking and radical redesign of
business processes to achieve dramatic improvements in critical,
contemporary measures of performance, such as cost, quality, service
and speed. Thus, rather than modifying current processes which are
within the realm of TQM, reengineering begins with a clear slate (the socalled clean piece of paper) and analyses the process from beginning to
end. It should be noted that merely throwing computers at an existing
business problem does not cause it to be reengineered. Reengineering is
about business reinvention, not business improvement, business
enhancement or business modifications which are within the realm of
total quality management.
The strategic change background is a recent influence on ODs
evolution. As organizations and their technological, political, and social
environments have become more complex and more uncertain, the scale
and intricacies of organizational change have increased. This trend has
produced the need for a strategic perspective from OD and encouraged
planned change processes at the organization level.
Strategic

change

involves

improving

the

alignment

among

an

organizations environment, strategy, and organization design (Worley et

al.1996). Strategic change programmes include efforts to improve both
the organizations relationship to its environment and the fit between its

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technical, political, and cultural system. The need for strategic change
is usually triggered by some major disruption to the organization, such
as the lifting of regulatory requirements, a technological breakthrough,
or a new Chief Executive Officer coming in from outside the
organization.
One of the first applications of strategic change was Richard Bechards
(1987) use of open system planning. He proposed that an organizations
environment and its strategy could be described and analyzed. Based
on the organizations core mission, the differences between what the
environment demanded and how the organization responded could be
reduced and performance can be improved. Since then, change agents
have proposed a variety of large-scale or strategic change models, each
of which recognizes that strategic change involves multiple levels of the
organization and a change in its culture, is often driven from the top by
powerful Executives, and has important effects on performance.

Evaluating Organizational Development Interventions

Burke, (1982) has stressed on measurement and evaluation of OD
programmes effectiveness has also been given due importance by
various practitioners. Often programmes are used because it 'feels' good
instead

of

using

programmes

with

measured

effectiveness.

An

evaluation forces clarification of objectives and expected outcomes, and

it provides specificity on how procedures and activities will be

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implemented. Such an evaluation helps signal potential problems and
obstacles in the OD effort, and it facilitates planning next steps for
organizational improvement and development.
Hence study of an important Public Sector Organization, BHILAI STEEL
PLANT situated at Bhilai (C.G.), a leading steel industry of India and a
Maharatna Company, operational since last 55 years was chosen with
a view that the study of selected OD intervention effectiveness and
outcomes will be very useful in designing OD programmes. The
Organizational Development Interventions are called Organizational
Development Programmes in Bhilai Steel Plant.
OD programmes conducted in large scale organizations clarifies various
details like its real outcome and by what means the employees,
organization and the society is benefited from these programmes.
In order, to analyze this following steps are required:
1.

Integration of research conducted with theory and practice.

2.

Linking evaluation of programmes with the organizations desired

expected outcome.

3.

Adoption

of

computerization/network-based

systems

by

Organization in order to evaluate how the workforce is geared up.

4.

Determination of wellbeing of the organizational goals and

objectives achieved by enhancing personal effectiveness.

5.

Analyzing the organizational profile towards learning

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SELECTION OF BHILAI STEEL PLANT (BSP)

BHILAI STEEL PLANT, Bhilai is a Maharatna Company under the
Steel Authority of India Limited (SAIL). Bhilai Steel Plant is a public
sector undertaking which was conceived under the aegis of Indo-USSR
Treaty in the 2nd Five year plan. This was in accordance with the
erstwhile government policy for strengthening economy and self reliance
through development of the core sector.
The plant is located at the central position of India, which is one of the
major iron belts of India, and it is about 40 kilometers from Raipur,
capital of newly born state Chhattisgarh. The captive mines of the plant
located at Dalli Rajahara supplies iron ore and lime stone, used to be
available from Nandini captive mines. At the present, lime stone is
procured from outside. The other major raw material, coal is purchased
from outside either through import or from indigenous market.
Bhilai Steel Plant, an integrated steel works, was commissioned in 1959
with a production capacity of 1.0 million tonne of steel. In successive
phases, the capacity was enhanced to 2.5 and 4.0 million tonne in the
year 1962 and 1984 respectively. As of now this is the largest steel
plant in India with present capacity utilisation more than 100%.Living
up to the demand of the growing economy of the country, the plant
produces wide range of products. This includes Rails, Wire Rods, Plates
and Merchant products.

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Bhilai Steel Plant is one of the leading Public Sector Unit which claims
that

it

practices

Organizational

Development

for

achieving

its

effectiveness through varied intervention mechanisms. The HRD

Department had named the interventions conducted as Organizational
Development Programmes. There are many Organizational Development
programmes Bhilai Steel Plant is implementing, out of which these are
the four programmes which were studied they are:

A.

COMPETENCY MAPPING INTERVENTION

B.

MULTISKILLING INTERVENTION

C.

CUSTOMERS

DELIGHT

IN-SERVICES

REMOTE

&

PERSONAL
D.

MICROPLANNING INTERVENTION

Each of the above stated programmes is unique in its design,

implementation and outcome.

A. COMPETENCY MAPPING INTERVENTION

Bhilai Steel Plant is entering its 52nd year of existence and is achieving
great results with immense contributions from its skilled manpower.
Unfortunately there exists no mechanism to maintain a data base of the
skills, knowledge, attitudes and other competencies of the workforce.
Historically the trade test system was designed to keep a track of the

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1. 26
knowledge and skills but over the years this has been diluted into a
ritual. Then the Steel Authority of India Limited Training Advisory
Board (TAB) directed the steel plants under it banner to initiate
competency mapping

B. MULTISKILLING INTERVENTION
Bhilai Steel Plant had administered this intervention to equip employees
with other related skills to ensure flexible working and facilitating
rightsizing of manpower. The guiding factor for this programme is a
proactive identification of the organizational need.
The employee growth related issues also present a need for this
intervention. Large pools of the workmen collective become stagnant or
quite for some time. Now to give growth, it needs to be linked
to Learning of new skills,

Job enlargement by way of Additional

responsibility and use.

C.

CUSTOMER DELIGHT IN-SERVICES REMOTE AND

PERSONAL INTERVENTION

The Telecommunication Department in Bhilai Steel Plant, plays a vital

role for efficient communication inside the shop floor and with other
administrative Departments and allied services. It also facilitates
communication facilities from the plant to the township and in the

INTRODUCTION

1. 27
township itself. Besides that, it also helps all the individuals in the
Bhilai Steel Plant to be in contact with the outside world.
Thinking on these lines the Telephones Department had interacted with
the Human Resources Department personnel and then the team came
up

with

this

Organizational

Development

programme

named

CUSTOMER DELIGHT IN SERVICES remote and personal to help

the front line services personnel and operators in presenting a pleasant
and pro-active face of the organization enhancing their professional
effectiveness.
Operators/Telephone attendants on telephone service portals, field
staff, domestic repairmen and supervisors who deal directly with the
customers either over telephone or directly in person are the people who
were considered for this intervention.

D. MICROPLANNING INTERVENTION
In 1998, Steel Authority of India Ltd. (SAIL) took the decision to appoint
British Steel Consultants Limited to carry out a review of its training
procedures associated with Human Resources Development Systems, to
suggest ways in which these should be developed with a view to
upgrading the quality of the output, and to assist SAIL in the early
application of the upgrading process.

INTRODUCTION

1. 28
During the review the study team identified a major weakness in terms
of Micro planning amongst all levels of SAIL executives. This weakness
was, at that time, significantly affecting work efficiency in terms of out
put, quality, costs and the effective utilization of materials, machines,
men, money and time. Then micro planning was reintroduced.

INTRODUCTION