Unit 4 & 5
Unit 4 & 5
In today’s volatile, uncertain, complex, and ambiguous (VUCA) world, businesses undergo
regular change, creating a need for continuous organizational development (OD). The main
goal of OD is to increase the efficiency and effectiveness of an organization.
An example of this is tech giant Amazon, which has gained a competitive edge by investing
in organizational development. It plans to invest $700 million in OD and retrain a third of its
workforce by 2025, helping its workers transition into new, advanced roles by adapting to
new technologies, working conditions, business procedures, and overall digital
transformation.
Definitions of OD
4. Human and social sides: Organization development focuses on both human and social
sides. By doing so, it intervenes in the technological and structural sides also.
7. Facilitation: There are three parties to the organization’s development process. They are
facilitators, collaborators, and co-learners in the client system. The cooperation of all these
parties can help the organization to develop.
8. Overarching goals: An overarching goal of the organization is to make the client system
able to solve its problems. It is done by teaching the skills and knowledge of continuous
learning through self-analytical methods.
Increasing productivity and efficiency comes with many benefits. One of the best ways to
encourage positive results in these metrics is by using a well-thought-out organizational
development structure. Organizational development is used to equip an organization with the
right tools so that it can adapt and respond positively to changes in the market. The benefits
of organizational development include the following:
1. Continuous development
In essence, the process builds a favorable environment in which a company can embrace
change, both internally and externally. The change is leveraged to encourage periodic
renewal.
3. Employee growth
Organizational development influences the bottom line in many different ways. As a result of
increased productivity and innovation, profits and efficiency increase. Costs come down
because the organization can better manage employee turnover and absenteeism. After the
alignment of an entity’s objectives, it can focus entirely on development and product and
service quality, leading to improvements in customer satisfaction.
An organization brings together individuals from different backgrounds, varied passions and
knowledge on a common platform, to work as a team and achieve certain prearranged goals.
It is necessary for the employees to deliver their level best and eventually increase the
productivity of the organization. Over the years organizational development models have
been used to guide the organization development (OD) consulting process for enhanced
organizational effectiveness.
Today many major companies are going through significant changes and most people are not
prepared to cope with it. In future organizations will need to be accommodating to these
changed market conditions and at the same time coping with the need for a recurring rather
than unresponsive workforce. It is going to discuss the three OD models, and the extent to
which they can be used to create learning organizations.
The term was first suggested by Kurt Lewin. He described action research as ‘a comparative
research on the conditions and effects of various forms of social action and research leading
to social action’ that uses ‘a spiral of steps, each of which is composed of a circle of planning,
action and fact-finding about the result of the action’.
Action research is a spiral of steps, each of which is composed of a circle of planning, action,
and fact-finding about the result of the action. In guiding planned change within
organizations, eight main steps are involved: problem identification, consulting with a
behavioural science expert, data gathering and preliminary diagnosis, feedback to client, joint
diagnosis of the problem, joint action planning, action, and data gathering after action.
1. The first of these steps is problem identification. This involves sensing a change situation
or problem within the organization. Usually, this is done by an executive or a powerful and
influential person within the organization who realises one or more problems that might be
solved with the help of an OD practitioner.
2.The second step involves the organization consulting with a behavioural science expert
such as an OD practitioner. During this stage, the expert may share his framework for
implementing planned change with the organization in order to establish an open and
collaborative relationship.
3. The third step concerns data gathering and preliminary diagnosis. Here, the OD
practitioner may use process observation, interviews, questionnaires and/or organizational
performance data to gather appropriate and pertinent information about the organization’s
structures and/or operations. This information is then analysed to understand precisely, how
the organization is currently functioning, and to determine the underlying causes and
consequences of the problems within the organization.
4. Feedback to key client/group follows the data gathering stage and involves the OD
practitioner feeding back findings of the diagnostic exercise to members of the organization
(e.g. employees, managers, and executives). A balance between openness about relevant and
useful information and confidentiality about sensitive or private data sources is critical at this
stage of the change process. Likewise, the readiness of the organization for the diagnostic
information is crucial to the preceding stages of the change process.
5. Joint diagnosis of the problem follows feedback to the client. At this stage, the OD
practitioner and organization members jointly agree on what the problem and its causes are, as
gaps in communication during the data gathering stage could result in misdiagnosis. This is a
critical stage within the action research model as misdiagnosis or misunderstanding of the
diagnosed problems could bring the change process to a halt or create resistance to change.
6. The joint action planning step precedes the actual action phase and involves the OD
practitioner and the organization members jointly agreeing on the actions or interventions
needed to bring about the desired change. The specific action agreed upon at this stage usually
depends on a host of factors including the diagnosis of the problem, the culture of the
organization and the nature of the intervention/actions.
7. At the action phase, the planned actions are undertaken to bring about desired changes to
the overall organization (e.g. changes in strategic mission and goals, structure, processes and
human resources); at the group level (e.g. changes in culture or behaviour of departments or
teams); or at the individual level (e.g. changes in job descriptions and tasks).
8. The data gathering after action has been taken, is the last step in the model. Here, the OD
practitioner gathers data on the effects of the action and feeds this information back to the
client. This may result in re-diagnosis and new actions, giving this model its cyclical nature.
Based on the three model, Cummings and Worley (2009) have proposed a general framework
for guiding the OD consulting process: the general model of planned change. This general
OD model focuses on planned change from a problem solving perspective, as well as from
the perspective of identifying and leveraging best practices within organizations.
According to the general OD model, planned change within organizations can be achieved in
four main stages through four sets of activities: entering and contracting, diagnosis and
feedback, planning and implementation, evaluation and institutionalization.
1. The first stage, the entering and contracting stage, describes the initial set of activities that
the change agent and the organization must engage in, in order to better understand what
needs to be improved or facilitated and whether to engage further in the planned change
programme. The activities include data gathering to identify the problems or opportunities for
change; joint discussion of the data gathered; agreement to engage in planned change; and
setting expectations around the role (e.g. consultant or expert), time, and pay of the change
agent as well as the resources that the organization would need to commit to the process.
2. The diagnosis and feedback stage is the second stage of the OD consulting process. It
involves a set of activities aimed at understanding the current state of the organization
(including the causes and consequences of organizational problems or best practices), in
order to clearly identify the set of intervention activities necessary to improve organizational
effectiveness. This phase, according to Cummings and Worley (2009), is one of the most
important stages in the change process. Key change activities at this stage are; choosing an
appropriate diagnostic model (e.g. the whole systems model) for understanding the
organization; collecting pertinent data about current operations and culture at the
organizational, group and/or individual level; analysing the data; and feeding back the
conclusions drawn to the organizational members.
3.The planning and implementation stage follows the diagnosis and feedback stage and
precedes the last phase of the change process. At this stage, organization members and the
change agent mutually design action plans or interventions based on the diagnostic results.
Depending on the outcomes of the diagnosis, interventions may focus on modifying
organizational strategy, structure, technology, human processes, and/or human resources. The
nature and scope of the interventions developed may also depend on organizational factors
such as readiness for change, change capability, organizational culture, and power
distributions, as well as on factors that relate to the change agent such as motivation,
commitment, skills and abilities. This stage also involves the change agent engaging in
implementation activities, i.e. leading and managing the application of the action plans or
interventions such that all members of the organization at least, perceive the impact of the
change.
4. The last stage of the change process concerns evaluating and institutionalizing
change. Here, the change agent gathers data on the current state of the organization
following the implementation of the intervention in order to ascertain how well the
intervention accomplished the objectives that were planned. Feedback to
organizational members about the impact of the intervention is also a significant
activity at this stage. It allows organizational members (particularly the
management) to decide whether the changes should be continued, modified or
abolished. When found to be successful, the intervention becomes institutionalized,
i.e., a usual way in which business is done in the organization through methods such
feedback, rewards and training
What is OD Interventions?
OD interventions are the building blocks which are the planned activities designed to
improve the organisation’s functioning through the participation of the organisational
members.
OD interventions include team development, laboratory training, managerial grid training,
brainstorming and intergroup team building. The intervention should take place at all three
levels, namely, individual, group and organisation.
Definitions of OD
OD intervention refers to the range of planned, programmatic activities client and consultant
participate in during the course of OD program. - French & Bell
Types of OD Interventions
The sensitivity training is known by varying names such as T-Groups, laboratory training,
and encounter groups. In a meeting, there is a passive leader, who tries to maintain a safe
psychological atmosphere, where each member feels free to share whatever is in his mind.
Three Steps essential for a sensitivity training program
1. Unfreezing the old values: The group members should keep their old beliefs or perceptions
about the other members aside and motivate them to speak freely, whatever is in their minds.
By doing so, there is a chance that each member will be heard carefully, and new relations
can be formed by eliminating the misconceptions, that were created in the past.
2. Development of New Values: Once the member is allowed to speak freely, the behavior of
each other can be determined easily, through the interactions in the form of feedback. Thus,
at this stage, the members start developing the values or beliefs about each other.
3. Re-Freezing the new ones: The beliefs formed through the interactions with each group
member, individual tries to freeze the perception or behavior in his mind. The success of
sensitivity training depends on how the trainees get an opportunity to practice their new
behaviors at their workplace.
Under the sensitivity training, each member is allowed to speak freely, whatever he feels
about the other member or the working conditions. The objective of sensitivity training is to
enable each member to know what is his behaviour and how others perceive him.
2. Role Playing
Role playing may be described as a technique of creating a life situation, usually one
involving conflict between people, and then having persons in group play the parts or roles of
specific personalities. In industry, it is used primarily as a technique of modifying attitudes
and interpersonal skills.
For instance, two trainees may play the roles of a superior and a subordinate to discuss the
latter’s grievances.
The purpose of role playing is to aid trainees to understand certain business problems and
to enable observers to evaluate reactions to them.
Role-playing is generally used for human relations and sales training. This technique makes
trainees self-conscious and imaginative and analytical of their own behaviour.
An important step in the MBO approach is the monitoring and evaluation of the performance
and progress of each employee against the established objectives. Ideally, if the employees
themselves are involved in setting goals and deciding their course of action, they are more
likely to fulfill their obligations.
Setting objectives is not only critical to the success of any company, but it also serves a
variety of purposes. It needs to include several different types of managers in setting goals.
The objectives set by the supervisors are provisional, based on an interpretation and
evaluation of what the company can and should achieve within a specified time.
Once the employees are briefed about the general objectives, plan, and the strategies to
follow, the managers can start working with their subordinates on establishing their personal
objectives. This will be a one-on-one discussion where the subordinates will let the managers
know about their targets and which goals they can accomplish within a specific time and with
what resources. They can then share some tentative thoughts about which goals the
organization or department can find feasible.
Though the management by objectives approach is necessary for increasing the effectiveness
of managers, it is equally essential for monitoring the performance and progress of each
employee in the organization.
4. Performance evaluation
Within the MBO framework, the performance review is achieved by the participation of the
managers concerned.
5. Providing feedback
6. Performance appraisal
Performance reviews are a routine review of the success of employees within MBO
organizations.
Phases of GRID OD
1. Managerial Grid: This aspect of Grid training programme lay emphasis on identifying the
managerial styles, teamwork and communication skills prevailing within the organization.
2. Teamwork Development: Here, the focus is on developing the teamwork by analyzing the
tradition and culture existing within the organization. Also, the planning skills, objective-
setting skills, and problem-solving skills are developed in this phase.
3. Intergroup Development: This aspect deals with maintaining the cordial intergroup
relationships. The focus is on increasing the cooperation among the group members and
ruling out the conflicts, if any.
4. Developing Ideal Strategic Corporate Model: Here the focus shifts towards the
organization as a whole, where the skills necessary for the organizational excellence are
inculcated into the members through training.
5. Implementing the Ideal Strategic Model: This aspect of the programme focuses on
building the organization on the grounds of an ideal organization as perceived in the previous
phase. Here, each group is assigned a task to evolve a strategy that helps in making an ideal
organization, with the help of consultants. Once the strategies are evolved the best one gets
implemented.
6. Systematic Critique: Here, organization development programme is critically evaluated on
the grounds of efforts made and the shortcomings encountered while running the programme.
In case, the shortcomings are severe; the programme may be redesigned.
Thus, the major objective behind the grid training is to consider the entire organization as an
interactive system where the analysis techniques could be applied to diagnose the problems
and understand the reasons behind the changes in the organization. Also, it helps in
determining the leadership styles and techniques of participation to help in producing the
desirable results.
Non-Behavioural Techniques
1. Organizational Redesign
The organisation’s structure may be changed to make it more efficient by redefining the flow
of authority. It can be changes in functional responsibility, such as a move from product to
matrix organisational structure.
Organisational structure often reflects the personal desires, needs, and values of the chief
executive. Changing structure, therefore, may create resistance and concern because people
are worried about their power or status, or how the change will affect their work groups.
2. Job Enrichment
Job enrichment implies the deliberate upgrading of the responsibility, scope and challenge in work.
Job enrichment is a motivational technique which emphasises the need for challenging and
interesting work. It suggests that jobs be redesigned, so that intrinsic satisfaction is derived
from doing the job.
In its best application, it leads to a vertically enhanced job by adding functions from other
organisational levels, making it contain more variety and challenge and offer autonomy and
pride to employee.
The job holder is given a measure of discretion in making operational decisions concerning
his job. In this sense, he gains a feeling of higher status influence and power.
3. Work Design
Work design is a broad term meaning the process of defining tasks and jobs to achieve both
organisational and employee goals, it must, therefore, take into account the nature of the
business (organisational interest), the organisational structure, the information flow and
decision process, the differences among employees, and the reward system.
Work design concerns the "content and organization of one’s work tasks, activities,
relationships, and responsibilities" (Parker, 2014).
Imagine designing the role of a police officer. Illustrative work design decisions include:
Which activities should be grouped together to form a meaningful police officer job?
Which decisions should be made by officers and which by their supervisors?
Should individual jobs be grouped together into a team?
Can one build in routine tasks amidst complex ones to ensure officers are not overwhelmed?
These decisions - about the content and organization of one’s work tasks, activities,
relationships, and responsibilities - will affect outcomes at multiple levels including whether
individual officers feel engaged or stressed at work, and whether the wider police service
achieves its targets, such as how effectively crime is detected and prevented.
Often work design is described in terms of "job characteristics", or features of work that
affect how people feel about their jobs. Research has identified many job characteristics that
are positive, that result in work being more motivating or less stressful. Examples of positive
job characteristics include:
4. Job Redesign
Restructuring the elements including tasks, duties and responsibilities of a specific job in order
to make it more encouraging and inspiring for the employees or workers is known as job
redesigning. The process includes revising, analyzing, altering, reforming and reshuffling the
job-related content and dimensions to increase the variety of assignments and functions to
motivate employees and make them feel as an important asset of the organization. The main
objective of conducting job redesigning is to place the right person at the right job and get the
maximum output while increasing their level of satisfaction.
Job Redesign Process
Therefore, the purpose of job redesigning is to identify the task significance and skill variety
available in the organization and reallocating the job-related tasks and responsibilities
according to the specific skills possessed by an employee.
5. Job analysis
Job analysis is the process of identifying and determining in detail contents of a particular
job, thereby, clearly defining duties, responsibilities, accountabilities, and skills associated
with the job. An important aspect of job analysis is that the analysis is conducted of the job,
and not of the person. The process of job analysis results in two sets of data:
Job evaluation, on the other hand, specifies the relative value or worth of each job in an
organization.
An organization undertakes the task of job analysis and evaluation for one or many of the
following purposes:
The systematic process of job analysis and evaluation followed by the firm includes:
The various methods by which an HR Consultant can obtain the information for job
description and job specification are:
Points rating - Different levels are accorded to the various elements of jobs and then
the points allocated to different levels are totaled to get point score of the jobs which
forms the basis of pay structure.
Factor comparison - A comparison of various independent factors of jobs is done
and points are given to each factor rank of individual job. These points are then
totaled to rank the jobs.
Job ranking - Job is not broken into factors or elements, rather it is evaluated as a
whole and is compared with other jobs to be ranked accordingly.
Paired comparison - Jobs are compared with each other and allocated points
depending on being ‘greater, lesser or equal’. These points are added to create rank
order of jobs.
The outputs of job analysis and evaluation are then aligned to the purpose of the project. This
requires the HR Consultants to interpret the changes required in the existing job/pay and
suggesting the improvements, as required. HR Consultants also advice on smooth
incorporation of these changes to enhance efficiency and effectiveness of the organization.
Miscellaneous Techniques
1. Survey Feedback
Survey feedback is one of the most popular and widely used intervention techniques, in the
field of OD.
It involves two basic activities:
collecting data about the organisation through the use of surveys of questionnaires, and
conducting feedback meetings and workshops in which the data are presented to
organisational members.
Survey feedback is useful in as much as it helps bring about changes in attitudes and
perceptions of participants. Used along with team building the impact of the survey feedback
is much more positive.
2. Process Consultation
Process consultation includes “a set of activities on the part of a consultant which help the
client to perceive, understand, and act upon process events which occur in the client’s
environment”.
Process consultation assumes that an organisation’s effectiveness depends on how well its
people relate to one another. An organisation’s problems, therefore, often can be traced to the
breakdown of critical human processes at key places.
3. Team Building
Team building is a process of diagnosing and improving the effectiveness of a work
group with particular attention to work procedures and inter-personal relationship with in it,
especially the role of the leader in relation to other group members.
Both the group’s task procedures and its human interactions are the subjects of study in team
building.