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Organization Development

                      The world we have created
                      today has problems which
                      cannot be solved by thinking
                      the way we thought when
                      we created them
                                         -Albert Einstein




"Our success has really been based on partnerships from
                                    the very beginning."
                                            - Bill Gates1
What is an Organization ?
1. Organizations are social entities
   (including HR)
2. Goal-oriented
3. Designed as deliberately structured with
coordinated activity systems
4. Linked to the external environment
                                 (Daft, 2004).




                                          2
Structure, Technology, and People
as Targets of Organizational Change
      Structure
       Structure




    Technology
     Technology
                       Organizational
                       Organizational
                          Change
                          Change


  People
   People




                              3
External Environment

                                            Laws and
                                             politics
              New                                         Economy
            Entrants        Buyers


Suppliers
             Organization Competitive Macroenvironment Technology
                              Environment


        Rivals         Substitutes                      Demographics
                                        Social
                                        values


                                                                       4
What is Development ?
''improvement in a organization’s socio-economic
condition by leveraging opportunities for growth &
competitiveness''. More specifically, it refers to
improvements in ways of managing human
resources & other factors of production to create
value and satisfy people's needs & lives. e.g.


• development of ideas, skills,           evolution
of technologies, civilization…

                                                     5
What is Org Development ?
               (There is no single definition of OD)

     So OD could be defined as "the practice of changing people
     and organizations for positive way or alternatively“ It is the
     field of study and practice that focuses on aspects of
     organizational life including culture, values, systems and
     behavior”

    • Long range planned effort
    • OD supports vision, mission, values, plan
    • Managed from the top
       • intended to increase organizational effectiveness
       and health
       • through planned interventions (change) in the
D
       organization's process
       • using behavioral science knowledge
                                                                      6
A Simple Definition - OD


 The systematic application of
 the behavioral sciences to
 establish and reinforce
 organizational strategies,
 structures and processes to
 change & improve
 organization’s performance



                           7
What is OD’s Function?

The function of OD is…

    To assess the effects and relationships

    between people, processes, and

    technology

    To proactively anticipate and

   successfully respond to change.
                                    8
Purpose of OD

•World is changing at an accelerating rate, and
in multiple dimensions.

•Emerging trends and forces are changing the
context in which organizations function.

•Requirements of leaders for teams and
change.

•Strategic perspective for the field and the
practice of OD.
                                      9
Why Must Organizations Change?

              Workforce
   World
                            Technology
  Politics
             Forces For
              Change
  Social                    Economic
  Trends                     Shocks
              Competition

                               10
Why Organizational Development
 •   External forces will place continued pressure on
     enterprises to leverage technology to change
     public/private sector practices

 •   Corporate governance and management processes
     must evolve to meet challenges that transcend short
     term planning horizons

 •   Many new information system projects will be either
     transitional or transformative in nature—culture may
     shift to accommodate new ways of working


 •   New skills and incentives will be required at ALL
     levels. Leadership is needed to direct organizational
     culture and learning
                                               11
Phases of Organization Development
                             In simple terms OD is:
  Entry                        The systemic application of
                                the behavioral sciences to
   Contracting                 establish and reinforce
                               organizational strategies,
                               structures and processes to
          Diagnosing           improve the organization’s
                               performance
                 Feedback

                  Planning Change

                            Interventions

                                     Evaluatio
                                     n
                                            12
Entry
Organizational Development Process
 begins when management senses a
 problem requiring organizational
 change Establish
          Client-
          Experts          Action Research Process
         Relations



         Diagnose                            Evaluate/
                       Introduce
         Need for                            Stabilize
                        Change
          Change                              Change

                                            Disengage
                                              Teams
                                             Services

                                          13
Force Field Analysis Model
                                         Restraining
 Desired                                   Forces
Conditions

                           Restraining
                             Forces       Driving
                                          Forces
             Restraining
               Forces

 Current                   Driving
Conditions                 Forces
              Driving
              Forces



                  Before    During          After
                  Change    Change         Change
                                           14
Contracting
Organizational Development Practitioner
 or a person having OD training &
 experience to lead the effort




                                15
Diagnosis

Organizational Development Consultant
gathers information:
    Uses questionnaires

    One to one interviews

    Meetings

    Reviews of existing performance data

    Other techniques




                                    16
Feedback

Organizational Development Consultant
Provides feedback & diagnosis and
discusses with organization interpretation
of data for possible refinement




                                    17
Planning Change

Management decides what is needed to
solve problem/s.
Develop plans to implement interventions




                                   18
Major OD Interventions
Career planning & Development, Culture change
Goal setting, Intergroup relations, Reengineering,
Process consultation, Work design, Reward systems,
Strategic change, Stress management, Survey design
Team building, Training, Leadership development….




                                       19
Evaluation
Results are evaluated by the Management to assess
the success of OD efforts. Results provide feedback
for deciding what to do next.




                                        20
"Change is the window through which the future
      enters your (Organization’s) life."
                                       21
People & Organizations Resist Change
Employees: powerful anti-        Organization: powerful
  change forces                    anti-change forces
      Habit                          Systemic
      Security
                                       interdependence
      Economic & status loss          within orgs
       fears
      Fear of the unknown &
                                      Disruption of social &
       risk                            power structures
      Selective information          Inertia
       processing: “ignorance”        Resource allocation
       is bliss                        threat
      Fear of obsolescence           Perceived lack of
      Resentment toward               choice by responding
       change agent
                                       to environment
 Notice extent of fear
  & loss

                                                22
Team-building
As we become a more
  global economy, teams
  are becoming more
    "virtual".
   Networked teams
   Parallel teams
   Project or product-
    development teams
   Work or production
    teams
   Service teams
   Management teams
   Action teams
                                 23
Talent Management - Discovery




                      24
Talent Management
An important area of
  focus for OD
  practitioners is
  building the
  capabilities of the
  organization.
  Capabilities area
  sometimes divided
  into different
  "buckets”:

   Talents
   Skills
   Knowledge
   Strengths
                         25
Training

There are quick training or presentation
  techniques that help to accomplish one of the
  following:

   Helps people get acquainted.
   Helps people feel more comfortable with the
    training environment.
   Helps to give people a preview of the training.
   Teaches a skill.
   Encourages people to have fun and be relaxed.


                                          26
Food for thought for HR……

   Is my recruitment machinery geared up to recruit 5 times
    the numbers that I am hiring toady? (Sourcing Strategy)
   Am I developing middle managers of tomorrow today?
    (Middle Management Development)
   Am I making a compelling employment promise and
    delivering it? (Employer Branding)
   Are all my associates motivated and aligned to
    organisations goal? (Employee Engagement)
   Do we communicate – effectively and regularly
    (Employee Communication)
   Are our associates living and breathing the same promise
    and commitment? (Culture & Values)
                                               27
Talent and Training
“Learning is not compulsory –
           neither is survival!”
                  W Edward Deming




                                    28
Address the Complete Value Chain
                                 Parents, Friends, Society



           School Education




                                                               Opportunities
Students




                                                    Students


                                                               Employment
                                        College
           Primary   Secondary                                                 Employers
                                       Education
           School    School




  Education would be much more effective if its purpose was to
   ensure that by the time they leave school every boy and girl
  should know how much they do not know, and be imbued
                 with a lifelong desire to know it.
                                                                       Sir William Haley
                                                                           29

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Organization Development in Focus

  • 1. Organization Development The world we have created today has problems which cannot be solved by thinking the way we thought when we created them -Albert Einstein "Our success has really been based on partnerships from the very beginning." - Bill Gates1
  • 2. What is an Organization ? 1. Organizations are social entities (including HR) 2. Goal-oriented 3. Designed as deliberately structured with coordinated activity systems 4. Linked to the external environment (Daft, 2004). 2
  • 3. Structure, Technology, and People as Targets of Organizational Change Structure Structure Technology Technology Organizational Organizational Change Change People People 3
  • 4. External Environment Laws and politics New Economy Entrants Buyers Suppliers Organization Competitive Macroenvironment Technology Environment Rivals Substitutes Demographics Social values 4
  • 5. What is Development ? ''improvement in a organization’s socio-economic condition by leveraging opportunities for growth & competitiveness''. More specifically, it refers to improvements in ways of managing human resources & other factors of production to create value and satisfy people's needs & lives. e.g. • development of ideas, skills, evolution of technologies, civilization… 5
  • 6. What is Org Development ? (There is no single definition of OD) So OD could be defined as "the practice of changing people and organizations for positive way or alternatively“ It is the field of study and practice that focuses on aspects of organizational life including culture, values, systems and behavior” • Long range planned effort • OD supports vision, mission, values, plan • Managed from the top • intended to increase organizational effectiveness and health • through planned interventions (change) in the D organization's process • using behavioral science knowledge 6
  • 7. A Simple Definition - OD The systematic application of the behavioral sciences to establish and reinforce organizational strategies, structures and processes to change & improve organization’s performance 7
  • 8. What is OD’s Function? The function of OD is… To assess the effects and relationships between people, processes, and technology To proactively anticipate and  successfully respond to change. 8
  • 9. Purpose of OD •World is changing at an accelerating rate, and in multiple dimensions. •Emerging trends and forces are changing the context in which organizations function. •Requirements of leaders for teams and change. •Strategic perspective for the field and the practice of OD. 9
  • 10. Why Must Organizations Change? Workforce World Technology Politics Forces For Change Social Economic Trends Shocks Competition 10
  • 11. Why Organizational Development • External forces will place continued pressure on enterprises to leverage technology to change public/private sector practices • Corporate governance and management processes must evolve to meet challenges that transcend short term planning horizons • Many new information system projects will be either transitional or transformative in nature—culture may shift to accommodate new ways of working • New skills and incentives will be required at ALL levels. Leadership is needed to direct organizational culture and learning 11
  • 12. Phases of Organization Development In simple terms OD is: Entry The systemic application of the behavioral sciences to Contracting establish and reinforce organizational strategies, structures and processes to Diagnosing improve the organization’s performance Feedback Planning Change Interventions Evaluatio n 12
  • 13. Entry Organizational Development Process begins when management senses a problem requiring organizational change Establish Client- Experts Action Research Process Relations Diagnose Evaluate/ Introduce Need for Stabilize Change Change Change Disengage Teams Services 13
  • 14. Force Field Analysis Model Restraining Desired Forces Conditions Restraining Forces Driving Forces Restraining Forces Current Driving Conditions Forces Driving Forces Before During After Change Change Change 14
  • 15. Contracting Organizational Development Practitioner or a person having OD training & experience to lead the effort 15
  • 16. Diagnosis Organizational Development Consultant gathers information:  Uses questionnaires  One to one interviews  Meetings  Reviews of existing performance data  Other techniques 16
  • 17. Feedback Organizational Development Consultant Provides feedback & diagnosis and discusses with organization interpretation of data for possible refinement 17
  • 18. Planning Change Management decides what is needed to solve problem/s. Develop plans to implement interventions 18
  • 19. Major OD Interventions Career planning & Development, Culture change Goal setting, Intergroup relations, Reengineering, Process consultation, Work design, Reward systems, Strategic change, Stress management, Survey design Team building, Training, Leadership development…. 19
  • 20. Evaluation Results are evaluated by the Management to assess the success of OD efforts. Results provide feedback for deciding what to do next. 20
  • 21. "Change is the window through which the future enters your (Organization’s) life." 21
  • 22. People & Organizations Resist Change Employees: powerful anti- Organization: powerful change forces anti-change forces  Habit  Systemic  Security interdependence  Economic & status loss within orgs fears  Fear of the unknown &  Disruption of social & risk power structures  Selective information  Inertia processing: “ignorance”  Resource allocation is bliss threat  Fear of obsolescence  Perceived lack of  Resentment toward choice by responding change agent to environment Notice extent of fear & loss 22
  • 23. Team-building As we become a more global economy, teams are becoming more "virtual".  Networked teams  Parallel teams  Project or product- development teams  Work or production teams  Service teams  Management teams  Action teams 23
  • 24. Talent Management - Discovery 24
  • 25. Talent Management An important area of focus for OD practitioners is building the capabilities of the organization. Capabilities area sometimes divided into different "buckets”:  Talents  Skills  Knowledge  Strengths 25
  • 26. Training There are quick training or presentation techniques that help to accomplish one of the following:  Helps people get acquainted.  Helps people feel more comfortable with the training environment.  Helps to give people a preview of the training.  Teaches a skill.  Encourages people to have fun and be relaxed. 26
  • 27. Food for thought for HR……  Is my recruitment machinery geared up to recruit 5 times the numbers that I am hiring toady? (Sourcing Strategy)  Am I developing middle managers of tomorrow today? (Middle Management Development)  Am I making a compelling employment promise and delivering it? (Employer Branding)  Are all my associates motivated and aligned to organisations goal? (Employee Engagement)  Do we communicate – effectively and regularly (Employee Communication)  Are our associates living and breathing the same promise and commitment? (Culture & Values) 27
  • 28. Talent and Training “Learning is not compulsory – neither is survival!” W Edward Deming 28
  • 29. Address the Complete Value Chain Parents, Friends, Society School Education Opportunities Students Students Employment College Primary Secondary Employers Education School School Education would be much more effective if its purpose was to ensure that by the time they leave school every boy and girl should know how much they do not know, and be imbued with a lifelong desire to know it. Sir William Haley 29