1. Organizational Development
Let’s Start
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2. General Introduction
 This is a course about OD— to help organizations build their
capacity to change.
 Achieve greater effectiveness.
 The focus is on building the organization’s ability to assess its
current functioning and to achieve its goals.
 Moreover, OD is oriented to improving the total system—the
organization and its parts in the context of the larger
environment that affects them.
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3. What is OD?
Organization development is a system wide application and
transfer of behavioral science knowledge to the planned
development, improvement, and reinforcement of the
strategies, structures, and processes that lead to organization
effectiveness.
 It is different from change management and organizational
change.
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4. What is OD?
 OD applies to changes in the strategy, structure, and/or
processes of an entire organization.
 OD is based on the application and transfer of behavioral
science knowledge and practice.
 Two concepts:
Micro concepts (leadership, group dynamics, and work
design).
Macro concepts (strategy, organization design, and
international relations).
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5. What is OD?
 OD is concerned with managing planned change.
 OD involves the design, implementation, and the subsequent
reinforcement of change.
 OD is oriented to improving organizational effectiveness.
 Three dimensions of effectiveness:
• Adaptability
• High financial and technical performance
• Satisfied and loyal customers or other external stakeholders and an engaged,
satisfied, and learning workforce.
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6. OD V/S Change Management
 Both address the effective implementation of planned change.
 Both are concerned with organization’s improvement.
 Difference is in underlying value orientation.
 OD is related to human potential, participation, development,
performance and competitive advantage.
 Change focus on values of cost, quality, and schedule.
• OD’s distinguishing feature is its concern with the transfer of
knowledge and skill so that the system is more able to manage
change in the future. OD involves change management.
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7. Relevance of OD
 Organizations in the midst of unprecedented uncertainty and
chaos.
 A ‘management revolution’ will save them.
 Three major trends: globalization, information technology,
and managerial innovation.
 OD helps organization members go beyond surface changes to
transform.
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8. History of OD
 Five stems of OD Practice
1950 1960 1970 1980 1990 2000 Today
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Laboratory Training
Action Research/Survey Feedback
Normative Approaches
Quality of Work Life
Strategic Management
CURRENTODPRACTICES

9. History of OD
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 Laboratory Training:
• Also known as T-group—a small, unstructured group. (Kurt
Lewin, 1946)
• Feedback about group interaction and process of “group
building” has potential for learning.
• Today, T-group is known by the name of “Team Building”

10. History of OD
 Action Research and Survey Feedback:
• John Collier, Kurt Lewin, and William Whyte (1940s).
• Research needed to be closely linked to action.
• Backbone of many OD applications.
• Likert’s -5 Scale.
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11. History of OD
 Normative Approaches:
• Rensis Likert’s Participative Management style and Blake and
Mouton’s Grid OD program.
• Likert’s 4 systems of management.
• Blake and Mouton’s Grid of 81 possible styles of leadership.
• Both the frameworks are used in organizations today.
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12. History of OD
 Quality of work life:
• Initial focus was on work designs aimed at better integrating
technology and people.
• We got Theory “Z”.
• Work design got supplemented with reward systems, work
flows, management styles, and the physical work environment.
• Emergence of Quality Circles.
• “Employee Involvement” and “Employee Empowerment”.
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13. History of OD
 Strategic Management:
• Alignment among an organization’s environment, strategy, and
organization design.
• Familiarity with competitive strategy, finance, and marketing,
as well as team building, action research, and survey feedback.
• Together, these skills have improved OD’s relevance to
organizations and their managers.
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14. Assumptions and Values
 Assumptions, values and beliefs are integral parts of OD.
 A belief is a proposition about how the world works. (true)
 Values are beliefs about- what is “desirable” and
“undesirable”.
 Assumptions are valuable and correct beliefs taken for granted.
 Values, beliefs and assumptions provide structure and stability
for people.
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15. Assumptions and Values
 OD values tend to be humanistic, optimistic and democratic.
 Humanistic value are about the importance of individuals.
 Optimistic value posit that people are basically good.
 Democratic values assert the sanctity of the individuals.
 Past researches are witness to these values.
 These are formed from zeitgist.
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16. Assumptions and Values
 Early Impetus:
• Warren Bennis- mechanical system v/s organic system.
• Richard Beckhard- emphasis on groups.
• Robert Tannenbaum and Sheldon Davis- shift in values is
continuously occurring.
 Present status:
• With humanistic values- a concern for improving
organizational effectiveness and performance. To optimize both
human benefits and production objectives.
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17. Assumptions and Values
 This is the biggest challenge- a conflict between employees’ needs for
greater meaning and the organization’s need for more effective and
efficient use of its resources.
 Value dilemmas:
• Should efficiency be maximized at the expense of people’s satisfaction?
• Can technology be changed to make it more humanly satisfying while
remaining efficient?
• What compromises are possible?
• How do these trade-offs shift when they are applied in different social
cultures?
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18. Assumptions and Values
Individuals
 Primarily considerations of theory “Y”.
• People have drives towards personal growth and are capable
of making a higher level of contribution.
• Ask, support, challenge, encourage risk taking, permit failure,
remove obstacles, give autonomy and responsibility, set high
standards and reward success.
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19. Assumptions and Values
Groups
 Work group, including peers and boss.
• Let teams flourish.
• Leaders should invest in groups.
• Adopt a team leadership style.
 Help each other.
 Alter mutual relationships.
 View problems and solutions as transactional and embedded
in a system.
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20. Assumptions and Values
Organizational systems
 Traditional hierarchical forms are obsolete.
 “Win-Win” in place of “Win-Lose”.
 Optimistic and developmental set of assumptions about
people.
 “Putting people first”.
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21. Assumptions and Values
Values in client organization
 Increasing efficiency and effectiveness.
 Openness in communication.
 Empowering employees to act.
 Enhancing productivity.
 Promoting organizational participation.
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22. Assumptions and Values
Values of OD Practitioner
 Create change.
 Positively impact people in the organizations.
 Enhance the effectiveness and profitability of
organizations.
 Learn and grow.
 Exercise power and influence.
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23. Assumptions and Values
Values of change agent
 Empowering employees to act.
 Openness in communication.
 Facilitating ownership of process and outcome.
 Promoting a culture of collaboration.
 Promoting inquiry and continuous learning.
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