PA 208 ORGANIZATION AND DEVELOPMENT

MODULE 1: ORGANIZATION DEVELOPMENT AND CHANGE

ORGANIZATION DEVELOPMENT DEFINED
Organization development (OD)
 Both a professional field of social action and an area of scientific inquiry.
 It covers a wide spectrum of activities with endless variations.
 Ex. Team building, structural change and job enrichment,
 Its study addresses a broad range of topics
o effects of change
o methods of organizational change
o factors influencing OD success

An Old Standard Definition of OD

 The nature and needs of organizations are changing dramatically, as well as the
profession of organization development has been changing to meet the changing
needs of organizations.
 For many years, the following definitions were perhaps the standard definition for
OD, & were developed in 1969 at a time when an organization was considered to
be much like stable machine comprised of interlocking parts
Definitions of Organization Development
 A planned process of change in an organization’s culture through the utilization
of behavioral science technology, research, and theory. (Warner Burke)
 Refers to a long-range effort to improve an organization’s problemsolving
capabilities and its ability to cope with changes in its external environment with
the help of external or internal behavioral-scientist consultants, or change agents,
as they are sometimes called. (Wendell French)
 is an effort (1) planned,  (2) organization-wide, and  (3) managed from the top,
to  (4) increase organization effectiveness and health through  (5) planned
interventions in the organization’s “processes,” using behavioral science
knowledge. (Richard Beckhard)
 a systemwide process of data collection, diagnosis, action planning, intervention,
and evaluation aimed at:
o enhancing congruence among organizational structure, process, strategy,
people, and culture;
o developing new and creative organizational solutions; and
o developing the organization’s self-renewing capacity.
  It occurs through the collaboration of organizational members working with a
change agent using behavioral science theory, research, and technology.
(Michael Beer
 Based on (1) a set of values, largely humanistic; (2) application of the behavioral
sciences; and (3) open systems theory.
 OD a systemwide process of planned change aimed toward improving overall
organization effectiveness by way of enhanced congruence of such key
organization dimensions as external environment, mission, strategy, leadership,
culture, structure, information and reward systems, and work policies and
procedures. (Warner Burke and David Bradford).
New Definitions of Organization Development (OD)
 Today’s organization operate in a rapidly changing environment.
 Consequently, one of the most important assets for an organization is the ability
to manage change and for people to remain healthy and authentic.
 OD is the attempt to influence the members of an organization to expand their
candidness with each other about their views of the organization and their
experience in it, and to take greater responsibility for their own actions as
organization members
 The assumption - when people pursue both of these objectives simultaneously,
they are likely to discover new ways of working together that they experience as
more effective for achieving their own and their shared (organizational) goals.
 And that when this does not happen, such activity helps them to understand why
and to make meaningful choices about what to do in the light of understanding
Experts might agree that the following definitions of OD represent the major focus and
thrust of many of today’s OD practitioners.
Organization development is a systemwide 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.
(Cummings and Worley, 1997)
Organization Development (OD) is a body of knowledge and practice that enhances
organizational performance and individual development, viewing the organization as a
complex system of systems that exist within a larger system, each of which has its own
attributes and degrees of alignment.
OD interventions in these systems are inclusive methodologies and approaches to
strategic planning, organization design, leadership development, change management,
performance management, coaching, diversity, and work/life and balance
THE GROWTH AND RELEVANCE OF ORGANIZATION DEVELOPMENT
 According to several observers, organizations are in the midst of unprecedented
uncertainty and chaos, and nothing short of a management revolution will save
them.
 Three major trends are shaping change in organizations:
o Globalization
o Information technology
o Managerial innovation

GLOBALIZATION
 New governments, new leadership, new markets, and new countries are
emerging and creating a new global economy with both opportunities and
threats.
 The toppling of the Berlin Wall symbolized and energized the reunification
of Germany; the European Union created a cohesive economic block that
alters the face of global markets; entrepreneurs appeared in Russia, the
Balkans, and Siberia to transform the former Soviet Union; terrorism has
reached into every corner of economic and social life; and China is
emerging as an open market and global economic influence
 The rapid spread of Severe Acute Respiratory Syndrome (SARS) and its
economic impact clearly demonstrated the interconnectedness among the
social environment, organizations, and the global economy
INFORMATION TECHNOLOGY
 is redefining the traditional business model by changing how work is
performed, how knowledge is used, and how the cost of doing business is
calculated.
 The way an organization collects, stores, manipulates, uses, and transmits
information can lower costs or increase the value and quality of products
and services.
 Information technology, for example, is at the heart of emerging e-
commerce strategies and organizations.
 Electronic data interchange—a state-of-the-art technology application a
few years ago—is now considered routine business practice.
 The ability to move information easily and inexpensively throughout and
among organizations has fueled the downsizing, delayering, and
restructuring of firms.
  The Internet has enabled a new form of work known as telecommuting;
organization members can work from their homes without ever going to
the office.
 Finally, 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 that senior managers once used to control decision
making.
MANAGERIAL INNOVATION
 New organizational forms, such as networks, strategic alliances, and
virtual corporations, provide organizations with new ways of thinking about
how to manufacture goods and deliver services.
 The strategic alliance, for example, has emerged as one of the
indispensable tools in strategy implementation
 No single organization, not even IBM, Mitsubishi, or General Electric, can
control the environmental and market uncertainty it faces.
 In addition, change innovations, such as downsizing or reengineering,
have radically reduced the size of organizations and increased their
flexibility
 New large-group interventions, such as the search conference and open
space, have increased the speed with which organizational change can
take place; and
 New large-group interventions, such as the search conference and open
space, have increased the speed with which organizational change can
take place; and
 Organization learning interventions have acknowledged and leveraged
knowledge as a critical organizational resource.

 Managers, OD practitioners, and researchers argue that these forces not only
are powerful in their own right but are interrelated.
 Their interaction makes for a highly uncertain and chaotic environment for all
kinds of organizations, including manufacturing and service firms and those in
the public and private sectors.
 There is no question that these forces are profoundly affecting organizations
 Fortunately, a growing number of organizations are undertaking the kinds of
organizational changes needed to survive and prosper in today’s environment
 They are making themselves more streamline and nimble, more responsive to
external demands, and more ecologically sustainable
 They are involving employees in key decisions and paying for performance rather
than for time
 They are taking the initiative in innovating and managing change, rather than
simply responding to what has already happened
 Organization development plays a key role in helping organizations change
themselves
 It helps organizations assess themselves and their environments and revitalize
and rebuild their strategies, structures, and processes.
 OD helps organization members go beyond surface changes to transform the
underlying assumptions and values governing their behaviors.
 The different concepts and methods discussed increasingly are finding their way
into government agencies, manufacturing firms, multinational corporations,
service industries, educational institutions, and not-for-profit organizations.
 OD is obviously important to those who plan a professional career in the field,
either as an internal consultant or as an external consultant.
 A career in OD can be highly rewarding, providing challenging and interesting
assignments working with managers and employees to improve their
organizations and their work lives.
 In today’s environment, the demand for OD professionals is rising rapidly. For
example, large professional services firms must have effective “change
management” practices to be competitive.
 All managers and administrators are responsible for supervising and developing
subordinates and for improving their departments’ performance.
 Similarly, all staff specialists, such as financial analysts, engineers, information
technologists, or market researchers, are responsible for offering advice and
counsel to managers and for introducing new methods and practices.
 Finally, OD is important to general managers and other senior executives
because OD can help the whole organization be more flexible, adaptable, and
effective.
ORGANIZATION DEVELOPMENT
- Help managers and staff personnel perform their tasks more effectively
- provide the skills and knowledge necessary for establishing effective
interpersonal relationships.
- show personnel how to work effectively with others in diagnosing complex
problems and in devising appropriate solutions.
- can help others become committed to the solutions, thereby increasing chances
for their successful implementation.
In short, OD is highly relevant to anyone having to work with and through others in
organizations.
A. OD Practitioners: “Organizational Physicians”
- The system of organization is very similar, if not the same as, the system of
human beings – after all, organizations are made up of humans
- Therefore, when trying to understand the field of organization development, it
might be useful to compare aspects of the field of organization development to
aspects of the field of medicine
- For example, the study of the theories & structures of the organizations (often in
courses called “organizational theory”) is similar to the study of anatomy &
physiology of human systems
- Similarly, the study of organizational behavior is similar to the study of
psychology & sociology in human systems.
- Finally, the study & field of the organization development compares to the study
& field of medicine regarding human systems.

- In OD, practitioners might work in a manner similar to “organizational physicians”

intending to improve the effectiveness of people & organization by:
o Establishing relationships with key personnel in the organization
(“entering” & “contracting” with the organization)
o Researching & evaluating systems in the organization to understand
dysfunctions &/or goals of the systems in the organization (“diagnosing”).
o Identifying approaches (or “interventions”) to improve effectiveness of the
organization & its people.
o Applying approaches to improve effectiveness (methods of “planned
change” in the organization).
o Evaluating the on-going effectiveness of the approaches & their results.
B. Maturation
 OD has a rich field of research, theory, models & practice, with roots in
community & management development.
 The topic of organizational change has received a great deal of attention
over the past several decades; correspondingly, OD is receiving a great
deal of attention now, too.
 OD does not have a standard code of ethics or universal accrediting body, thus many
assert that OD is a field rather than a profession
 They suggest that a more apt description of OD is that it is a field that
works from a systems perspective & according to humanistic values to
enhance the performance of organizations
 Another area of diversity about perspectives ---- how people view
organizations.
 Some focus on the structures, operations, positions, procedures, etc.,
while others focus on the human relations & interactions.
 Still others focus on the politics & power, while others focus on the
cultures & values of the organization.
 Concurrently, there seems to be strong focus on “soft” skills in OD, for
example, coaching, leadership development, facilitation, conflict
management, process consulting, etc.
 However, many would assert that the “hard” skills, such as Balanced
Scorecard, quality management initiatives (TQM, Six Sigma, etc.),
strategic analysis, etc., should also be a focus in OD.
C. Organizational Development Theory
 OD is a field of research, theory, & practice dedicated to expanding the
knowledge & effectiveness of people to accomplish more successful
organizational change & performance.
 OD is a process of continuous diagnosis, action planning, implementation
& evaluation, with the goal of transferring knowledge & skills to
organizations to improve their capacity for solving problems & managing
future change.
D. History & Application of OD Theory
 OD emerged out of human relations studies from the 1930s where
psychologists realized that organizational structures & processes influence
worker behavior & motivation
 Lewin’s work in the 1940s & 1950s also helped show that feedback was a
valuable tool in addressing social processes.
 More recently, work on OD has expanded to focus on aligning
organizations with their rapidly changing & complex environments through
organizational learning, knowledge management & transformation of
organizational norms & values
E. Key Concepts of OD Theory
 Organizational Climate
- The mood or unique “personality” of an organization
- Attitudes & beliefs about organizational practices create
organizational climate & influence members’ collective behavior
- Climate features & characteristics may be associated with
employee satisfaction, stress, service quality & outcomes &
successful implementation of new programs, it includes
o Leadership, openness of communication, participative
management, role clarity, & conflict resolution, leader
support & leader control.
 Organizational Culture
- Deeply seated norms, values & behaviors that members share
- 5 basic elements of culture in organization include:
o Assumptions
o Values
o Behavioral norms
o Behavioral patterns
o Artifacts
- The subjective features (assumptions, values & norms) reflect
members’ unconscious thoughts & interpretations of their
organizations.
- The subjective features shape the behaviors & artifacts take on
within organizations.
  Organizational Strategies
- Diagnosis
o Helps organization identify problems that may interfere with
its effectiveness & assess the underlying causes.
o Usually done by an outside specialist to help identify
problems by examining its mission, goals, policies, structures
& technologies, climate & culture; environmental factors;
desired outcomes & readiness to take an action.
o Usually done through key informant interviews or formal
surveys of all members
- Action Planning
o Strategic interventions for addressing diagnosed problems
are developed
o The organization is engaged in an action planning process to
assess the feasibility of implementing different change
strategies that lead to action
- Intervention
o Change steps are specified & sequenced, progress
monitored & stakeholder commitment is cultivated
- Evaluation
o Assess the planned change efforts by tracking the
organization’s progress in implementing the change & by
documenting its impact on the organization
F. A Short History of Organization Development
 The 1st was growth of the National Training Laboratories (NTL) & the
development of training groups, sensitivity training or T-groups.
 The 2nd stem of OD was classic work on action research conducted by
social scientists interested in applying research to managing change.
 An important feature of action research was a technique known as survey
feedback
 Kurt Lewin, a prolific theorist, researcher, & practitioner in group dynamics
& social change, was instrumental in the development of T-groups, survey
feedback, & action research
- His work led to the creation of OD & still serves as a major source
of its concepts & methods.
 The 3rd stem reflects a normative view of OD.
 The 4th background is the approach focusing on productivity & the quality
of work of life.
 The 5th stem of OD & the most recent influence on current practice,
involves strategic change & organization transformation.
 Laboratory Training Background
 - This stem pioneered laboratory training (summer of 1946) or the T-group,
a small unstructured group in which participants learn from their own
interactions & evolving group process about such issues as interpersonal
relations, personal growth, leadership, & group dynamics.
- A workshop was developed, & community leaders were brought together
to learn about leadership & to discuss problems.
- At the end of the day, the researchers discussed privately what behaviors
& group dynamics they had observed, & the community leaders asked to
sit in on these feedback sessions
 Thus, the 1st T-group was formed in which people reacted to data about their
own behavior.
 The researchers drew 2 conclusions:
- Feedback about group interaction was a rich learning experience
- The process of “group building” had potential for learning that could be
transferred to “back-home” situation
 The 1st Basic Skill Groups were offered in the summer of 1947.
- The program was so successful that the Carnegie Foundation provided support
for programs in 1948 & 1949, which led to permanent program for NTL within
the National Education Association
 In 1950s, 3 trends emerged:
- Emergence of regional laboratories
- Expansion of summer program sessions to year-round sessions
- Expansion of the T-group into business & industry, with NTL members becoming
increasingly involved with industry programs.
 The practical aspects of T-group techniques for organizations gradually became known
as team building – a process for helping work groups become more effective in
accomplishing tasks & satisfying member needs.
 Team building is one of the most common & institutionalized forms of OD today.
 OD is being carried out in many more countries & in many more
organizations operating on a worldwide basis.
 This is generating a whole new set of interventions as well as adaptations
to traditional OD practice.
 OD must adapt its methods to the technologies being used in
organizations as information technology continues to influence
organization environments, strategies, & structures
 OD now is being taught at the graduate & undergraduate levels in a large
number of universities
 Several reviews of OD projects were directed primarily at OD in public
administration.
 Extensive OD work was done in the armed services (army, navy, air force,
& coast guard)
  Public schools began using both group training & survey feedback
relatively early in the history of OD
 Usually, the projects took place in suburban middle-class schools where
stresses & strains of an urban environment were not prominent, & ethnic &
socioeconomic differences between consultants & clients were not high.
 In more recent years, OD methods have been extended to urban schools,
& to colleges & universities.
 OD is increasingly international, & has been applied in nearly every
country in the world.
G. Degree of Organization
 Planned change efforts can vary depending on the degree to which the
organization or client system is organized.
 In overly organized situations such as highly mechanistic, bureaucratic
organizations, various dimensions such as leadership styles, job designs,
organization structure, & policies & procedures are too rigid & overly
defined for effective task performance.
- Communication between management & employees is typically
suppressed, conflicts are avoided, & employees are apathetic.
- Planned change is generally aimed at loosening constraints on
behavior.
 In under organized organizations, there is too little constraint or regulation
for effective task performance.
- Leadership, structure, job design & policy are poorly defined & fail
to direct task behaviors effectively.
- Communication is fragmented, job responsibilities are ambiguous,
& employees’ energies are dissipated because they lack direction.
- Typically found in such areas as product development, project
development, & community development, where relationships
among diverse groups & participants must be coordinated around
complex, uncertain tasks
 Changes in leadership, job design, structure & other features are designed
to liberate suppressed energy, to increase the flow of relevant information
between employees & managers, & to promote effective conflict
resolution.
 Typical steps of planned change (entry, diagnosis, intervention, &
evaluation) are intended to penetrate a relatively closed organization or
department & make it increasingly open to self-diagnosis & revitalization
 The consultants share leadership to change process with management,
encourages open communications & confrontation conflict, & maintains
flexibility in relating to the organization.
 When applied to organizations facing problems in being under organized,
planned change is aimed at increasing organization by clarifying
 leadership roles, structuring communication between managers &
employees, & specifying job & departmental responsibilities.
 These activities require a modification of the traditional phases of planned
change which include:
o Identification
 identifies the relevant people or groups who need to be
involved in the change program.
 When managers of different departments have only limited
interaction with each other, they may disagree or be
confused about which departments should be involved in
developing a new product or service.
o Convention
 The relevant people or departments in the company are
brought together to begin organizing for task performance.
 Department managers might be asked to attend a series of
organizing meetings to discuss the division of labor & the
coordination required to introduce a new product.
o Organization
 Different organizing mechanisms are created to structure the
newly required interactions among people & departments.
 These might include creating new leadership positions,
establishing communication channels, & specifying
appropriate plans & policies.
o Evaluation
 Outcomes of the organization step are assessed.
 The evaluation might signal the need for adjustments in the
organizing process or for further identification, convention, &
organization activities.

H. Domestic vs International Settings

 Planned change efforts have traditionally been applied in North American
& European settings, but increasingly used outside of these cultures.
 Developed in Western societies, OD reflects the underlying values &
assumptions of these cultural settings, including equality, involvement, &
short-term time horizons – works quite well.
 In contrast to Western societies, the cultures of most Asians countries are
more hierarchical & status conscious, less open to discussing personal
issues, more concerned with “saving face”, & have a longer horizon for
results.
 In other societies, a different set of cultural values & assumptions can be
operating & make the application of OD problematic, & more difficult to
implement.
  The cultural values that guide OD practice (U.S.) include a tolerance for
ambiguity, equality among people, individuality, & achievement motives.
 An OD process that encourages openness among individuals, high levels
of participation, & actions that promote increased effectiveness is viewed
favorably.
I. Conceptualization of Planned Change
 Planned change has typically been characterized as involving a series of
activities for carrying out effective organization development.
 Porras & Robertson argues that planned change activities should be
guided by:
- The organization features that can be changed
- The intended outcomes from making those changes
- The casual mechanisms by which those outcomes are achieved
- The contingencies upon which successful change depends
 They noted that the key to organizational change is change in the
behavior of each member & that the information available about the
causal mechanisms that produce individual change is lacking.
J. Practice of Planned Change
 A growing number of OD practitioners have acquired skills in a specific
technique, such as team building, total quality management, AI, large-
group interventions, or gain sharing, & have chosen to specialize in that
method
 Some OD practitioners favor particular techniques & ignore other
strategies that might be more appropriate.
 It is not unusual to see consultants pushing such methods as diversity
training, reengineering, & organization learning, or self-managing work
teams as solutions to most organizational problems.
 Effective change depends on a careful diagnosis of how the organization
is functioning.
 Diagnosis identifies the underlying causes of organizational problems,
such as poor product quality & employee dissatisfaction, or determines
the positive opportunities that need to be promoted
 It requires both time & money, & some organizations are not willing to
make the necessary investment, rather they rely on preconceptions about
what the problem is & hire consultants with skills appropriate to solve the
problem
 Managers may think that work design is the problem, so they hire an
expert in job enrichment to implement a chance program
 Problem may be caused by other factors such as poor reward practice –
job enrichment would be inappropriate.
 Careful diagnosis can help avoid such mistakes.
  Some OD consultants are more willing to provide quick solutions, they
sell pre-packaged programs for organizations to adopt.
- Those programs appeal to managers because they typically include
an explicit recipe to be followed, standard training materials, & clear
time & cost boundaries. --- have trouble gaining wide organizational
support & commitment & seldom produce positive results
WHO IS THE ORGANIZATION DEVELOPMENT PRACTITIONER?
 Organization development practitioner refers to at least 3 sets of people
 The most obvious group are those people specializing in OD as profession.
o Internal or external consultants
 In recent years, OD professionals have included more concern for
organizational effectiveness, competitiveness & bottom-line results, & greater
attention to the technical, structural, & strategic parts of organizations, in
response to highly competitive demands facing modern organizations.
 The 2nd set of people applies to those specializing in fields related to OD,
such as reward systems, organization design, total quality, information
technology, & business strategy.
 These content-oriented fields increasingly are becoming integrated with OD’s
process oriented, particularly as OD projects have become more
comprehensive, involving multiple features& varying parts of organizations.
 Ex. Most of the large accounting firms diversified into management consulting
& change management.
 The 3rd set of people is the increasing number of managers & administrators
who have gained competence in OD & who apply it to their work areas.
 Managers tend to gain competence in OD through interacting with OD
professionals in actual change programs (on-the-job training).
 In practice, the distinctions among the 3 sets of OD practitioners are blurring.
 It is increasingly common to find managers using their experience in OD to
become external consultants.
A. Competencies of an Effective Organization Development Practitioner
 Although these skills are laudable, there has been relatively little
consensus about their importance to effective OD practice.
1. Intrapersonal Skills or “Self-Management”
Competence - As the primary instrument of diagnosis
& change, practitioners often must process complex,
ambiguous information & make informed judgements
about its relevance to organizational issues.
2. Interpersonal Skills
 Practitioners must create & maintain effective
relationships with individuals & groups within
the organization & help them gain the
 competence necessary to solve their own
problems.
 Identifies group dynamics, comparative cultural
perspectives, & business functions as
foundation knowledge, & managing the
consulting process & facilitation core skills –
promotes effective helping effective
relationship.
 Such relationship starts with a grasp of the
organization’s perspective & require listening to
members’ perceptions & feelings to understand
how they see themselves & the organization.
 Practitioners must establish trust & rapport with
organization members so that they can share
pertinent information & work effectively
together.
 Requires being able to converse in members’
own language & to give & receive feedback
about how the relationship is progressing
3. General Consultation Skills
o Identifies the ability to manage the consulting process
& the ability to design interventions as core
competencies that all OD practitioners should
possess.
o OD starts with diagnosing an organization or
department to understand its current functioning & to
discover areas for further development.
o OD practitioners need to know how to carry out an
effective diagnosis, at least at a rudimentary level.
o They should know how to engage organization
members in diagnosis, how to help them ask right
questions, & how to collect & analyze information
4. Organization Development Theory
 The last basic tool OD practitioners should
have is a general knowledge of organization
development.
 They should have some appreciation for
planned change, the action research model, &
the positive approaches to managing change.
 They should be familiar with the range of
available interventions & the need for
evaluating change programs.
  Most important is OD practitioners should
understand their own role in the emerging field
of organization development, whether it is an
OD professional, a manager, or a specialist in
a related area.
B. Role of Organization Development Professionals
 Position Organization development professionals have positions that
either internal or external to the organization.
 Internal consultants are members of the organization & may be located
in the human resources department or report directly to a line
manager.
 They perform the OD role exclusively or they may combine it with other
tasks such as compensation practices, training, or employee relations.
 They have typically a variety of clients within the organization, serving
both line & staff departments.
 Internal Consultants
o They already know most organization members & enjoy a
basic level of rapport & trust.
o They have ready access to & relationships with clients, know
the language of the organization, & have insights about the
root cause of many of its problems.
o They have access to a variety of information, including
rumors, company reports, & direct observations.
o They allow to save time in identifying the organization’s
culture, informal practices, & sources of power.
o They allow to save time in identifying the organization’s
culture, informal practices, & sources of power.
o Contracting is less formal, & less worry about expenses.
 External Consultants
o They typically work for a consulting firm, a university or
themselves
o Organization hire them to provide particular expertise that is
unavailable internally, to bring a different & potentially more
objective perspective into the organization development
process, or to signal shifts in power.
o They have the advantage to select clients they want to work
with according to their own criteria.
o They often have higher status which allows them to probe
difficult issues & assess the organization more objectively.
 Both types of consultants must address issues of confidentiality, risk
project termination (& other negative consequences) by the client, & fill
a third-party role.
  In the intervention phase, both types of consultants must rely on valid
information, free & informed choice & internal commitment for their
success.
 However, an internal consultant’s strong ties to the organization may
make him or her overly cautious; particularly when powerful others can
affect a career.
 Internal consultants also may lack certain skills & experience in
facilitating organizational change.
 Insiders may have some small advantages in being able to move
around the system & cross key organizational boundaries.
 Finally, the measures of success & reward differ from those of external
practitioner on the evaluation process.

Internal Consultants External Consultants

- Are members of organization Are not members of
- They already know most organization, typically works for
organization members/ basic a consulting firm, university or
level of rapport & trust themselves.
- They access a variety of To provide particular expertise
information (rumors, reports, that is unavailable internally
direct observations Advantage to select clients they
- Save time in identifying want
organization’s culture Often have higher status
- Entry is more efficient &
congenial, pay is not at risk
- Contracting is less formal &
worry-less expenses
- Strong ties to the organization
may make him or her overly
cautious

MODULE 2: ORGANIZATION AND DEVELOPMENT

MAPPING THE TERRITORY
Mapping the territory in organizational development involves a systematic approach to
understanding and analyzing various aspects of an organization's Mapping the territory
in organizational development involves a systematic approach to understanding and
analyzing various aspects of an organization's, Mapping the territory in organizational
development involves a systematic approach to understanding and analyzing various
aspects of an organization's, culture and relationships.
Activities in the Mapping Process
1. Data Collection
 Gathering relevant data and information about the organization
 Reviewing existing documentation, conducting interviews with key
stakeholders, and administering surveys or questionnaires
2. Stakeholder Analysis
 Identifying and mapping the key stakeholders within the organization.
 Involves understanding their roles, interests, and influence on the
organization's dynamics.
3. Organizational Structure Analysis
 Examining the formal structure of the organization, including reporting
lines departments, teams, and • hierarchical levels.
 Examining the formal structure of the organization, including reporting
lines departments, teams, and • hierarchical levels.
4. Process Mapping
 Analyzing Organization’s key processes, workflows and
interdependencies
5. Cultural Assessment
 Assessing organization's culture, values, norms, and beliefs
 Examining the shared assumptions, communication patterns, and
behaviors that shape the organization's work environment
6. Power and Influence Analysis
 Identifying sources of power and influence within the organization’s formal
and informal power structures, decision-making processes and how
authority is distributed
7. Relationship Mapping
 identifying key individuals or groups
 understanding the nature of their relationships, collaborations, and
communication channels.
8. Gap Analysis
 Comparing the current state of the organization to the desired future state
9. SWOT Analysis
 To identify internal and external factors that can impact the organization's
development
10. Reporting and Recommendations
 Summarizing the findings from the mapping process and providing
recommendations for organizational development
 This may include suggesting changes to structures, processes, culture, or
strategies to enhance organizational effectiveness
These activities provide a foundation for understanding the organization's current state
and identifying areas for improvement. The insights gained from mapping the territory
can inform strategic decision-making, change management initiatives, and the design of
interventions to drive organizational development
Importance and Benefits of Mapping the Territory
 Clear Understanding: Mapping a territory helps organizations gain a clear
understanding of their current state. It provides a visual representation of the
organization's structure, processes, functions, and relationships, allowing
stakeholders to see how different components fit together.
 Identification of Gaps: By mapping a territory, organizations can identify gaps or
inefficiencies in their current organizational structure or processes.
 Improved Decision Making: Territory mapping provides a holistic view of the
organization, enabling leaders and decision-makers to make informed and
strategic decisions.
 Enhanced Collaboration: Mapping a territory promotes collaboration and
communication within the organization. It creates a shared understanding among
employees, departments, and teams, fostering better coordination and
cooperation.
 Change Management: Territory mapping is a valuable tool during periods of
organizational change. It helps manage transitions by providing a visual
representation of the desired future state and identifying the steps required to
get there.
 Alignment of Goals and Objectives: Mapping a territory helps align individual,
team, and departmental goals with the overall organizational goals.
 Talent Management: Territory mapping can aid in talent management strategies.
By understanding the organizational structure, skill requirements, and career
paths, organizations can identify skill gaps, develop succession plans, and
design targeted training and development programs to nurture talent.
 Performance Measurement: Mapping a territory provides a framework for
measuring and evaluating performance.
 Continuous Improvement: Territory mapping supports a culture of continuous
improvement. By visualizing the current state and identifying areas for
improvement, organizations can implement iterative changes, monitor their
impact, and refine processes over time.
 Organizational Alignment: Mapping a territory promotes organizational alignment
by ensuring that all components, such as structure, processes, roles, and
responsibilities, are synchronized and support the organization's strategic
direction. It helps create a shared understanding of how different parts of the
organization contribute to the overall mission and vision. Overall, mapping a
territory in organizational development provides a structured approach to
understand, analyze, and improve various aspects of an organization, leading to
increased efficiency, effectiveness, and alignment.

Common Challenges faced during the mapping of a territory

 Lack of Data - Gathering accurate and comprehensive data about the territory
can be a significant challenge. The availability of data may vary, and it can be
difficult to find reliable sources to collect information about the territory's
demographics, market conditions, competition, and other relevant factors.
 Lack of Internal Alignment - Mapping a territory requires the involvement and
cooperation of various stakeholders within the organization. However, conflicting
priorities, lack of communication, or resistance to change can hinder the
alignment of different teams or departments, making it challenging to develop a
cohesive understanding of the territory. Changing
 Market Dynamics - Markets are dynamic and subject to constant change.
Organizations may face challenges in keeping up with evolving trends, consumer
preferences, economic conditions, and regulatory factors. Failure to adapt to
these changes can lead to inaccurate mapping and ineffective strategies.
 Complex Stakeholder Landscape - Mapping a territory involves identifying and
engaging with various stakeholders such as customers, suppliers, partners, and
regulatory bodies. Dealing with a diverse range of stakeholders, each with
different needs, interests, and power dynamics, can be complex and time-
consuming.
 Limited Resources - Mapping a territory requires significant resources, including
financial, human, and technological capabilities. Small or resource-constrained
organizations may face challenges in allocating the necessary resources to
conduct thorough research, analysis, and implementation of effective mapping
strategies.
 Resistance to Change - Mapping a territory often involves making changes to
existing processes, structures, or strategies based on the insights gained.
Resistance to change from employees or other stakeholders can pose a
challenge and hinder the successful implementation of the mapping initiatives.
 Uncertain External Factors - External factors such as political instability,
economic downturns, or natural disasters can significantly impact the accuracy
and effectiveness of territory mapping efforts. Organizations need to consider
and adapt to these external factors, which may be beyond their control.
 Balancing Standardization and Localization - Organizations often need to strike a
balance between implementing standardized approaches across multiple
territories for consistency, efficiency, and cost-effectiveness, while allowing for
customization and localization to address the unique characteristics and needs of
each territory.
 Lack of Expertise - Mapping a territory requires expertise in various areas such
as market research, data analysis, strategy development, and change
management. Organizations may face challenges if they lack the necessary in-
house expertise or have limited access to external resources or consultants with
relevant domain knowledge.
 Continuous Monitoring - Mapping a territory is an ongoing process that requires
continuous monitoring and evaluation. Organizations may face challenges in
 establishing appropriate mechanisms to track progress, assess the effectiveness
of mapping initiatives, and make necessary adjustments to the strategies over
time.
WHAT IS ORGANIZATION DEVELOPMENT?
ORGANIZATION - A social unit of people that is structured and managed to meet a
need or to pursue collective goals
DEVELOPMENT - The systematic use of scientific and technical knowledge to meet
specific objectives or requirements
Organizational development
 A deliberately planned effort to increase an organization’s relevance and viability.
 It is a frame work for change, and often times a manager help us to lead this
change
Definition of organizational development
 ‘’A systematic mean for planned change that involves the entire organization and
is intented to increase organization effectiveness’’. – MIDDLEMIST & PERRY
HITT
 A system wide application of behavioral science knowledge to the planned
development and reinforcement of organizational strategies, structure and
processes for improving an organization’s effectiveness’’. – LEO CUMMINGS &
HUSE
 A response to change a complex educational strategy intended to change
beliefs, attitudes, values, and structure of organization that they can better adapt
to new technologies, markets, and challenges and the dizzying rate of change
itself’’ – WARREN G. BENNIS
Stages of Organizational development
 Problem Identification
 Data Collection
 Diagnosis
 Planning and Implementation
 Evaluation and feedback

 Problem Identification -possible knowledge of possible organizational problem of

growth, human satisfaction, the usage of human resource and organizational
effectiveness.
 Data Collection - understood the exact problem by using Questionnaires,
Personal Interviews and Observations. PROCESS OF OD
 Diagnosis – by using available resources and management practice.
o STEPS IN DIAGNOSIS:
 Structure analysis - different parts of the organization
functioning in terms of laid down goals.
 Process analysis - pattern or decision making,
communication, group dynamics and conflict
management patterns.
 Function analysis - strategical variables, performance
variables, results achievement and final outcomes.
 Domain analysis - area of organization for organization
diagnosis
 Planning and Implementation - organization’s mission and vision
  Evaluation and feedback - process of relaying evolutions to the client group by
means of specific report or interaction
Characteristics of organization development
 OD focuses on culture and processes
 OD encourages collaboration between organization leaders and members, particularly
important for accomplishing tasks and are targets for OD activities,
 OD focuses on the human and social side of the organization in so doing also intervenes in the
technological and structural sides.
 Participation and involvement in problem solving and decision making by all levels of the
organization are hallmarks of OD.
 OD focuses on total system change and views organizations as complex social systems.
 OD practitioners are facilitators, collaborators and co -learners with the client system.
 OD relies on an action research model with extensive participation by client system members.
 OD takes a developmental view that seeks the betterment of both individuals and the
organization.

MODULE 3: BASIC ORGANIZATION DEVELOPMENT

INTERVENTIONS
DEFINITION ON INTERVENTION

ORGANIZATIONAL DEVELOPMENT PROCESS

1. Entering and Contracting
2. Diagnosing
3. Collecting, Analyzing, and Feeding Back
4. Designing Interventions
5. Managing Change
6. Evaluating and Institutionalizing Organization Development Interventions

ENTERING AND CONTRACTING

Entering into an OD Relationship
 An OD process generally starts when a member of an organization or unit
contacts an OD practitioner about potential help in addressing an organizational
issue.
 Determining whether the two parties should enter into an OD relationship
typically involves:
 o Clarifying the nature of the organization’s current functioning and the
issue(s) to be addressed,
o Relevant client system for that issue
o Appropriateness of the particular OD practitioner
 ACTIVITIES INVOLVED IN ENTERING AN OD RELATIONSHIP
o Clarifying the Organizational Issue - When seeking help from OD
practitioners, organizations typically start with a presenting problem—the
issue that has caused them to consider an OD process
o Determining the Relevant Client - The relevant client includes those
organization members who can directly impact the change issue, whether
it is solving a particular problem or improving an already successful
organization or department
o Selecting an OD Practitioner - The last activity involved in entering an OD
relationship is selecting an OD practitioner who has the expertise and
experience to work with members on the organizational issue

Developing a Contract
 An OD contract defines the major focus for contracting, including the relevant
parties. Contracting is a natural extension of the entering process and clarifies
how the OD process will proceed.
 The goal of contracting is to make a good decision about how to carry out the OD
process
3 KEY AREAS ADDRESSED BY THE CONTRACT
 Mutual Expectations - This focuses on the expectations of the client and the OD.
 Time and Resources - Each must be clear about how much energy and how
many resources will be dedicated to the change process
 Ground Rules - This involves specifying how the client and the OD practitioner
will work together
DIAGNOSIS
The process of understanding how the organization is currently functioning, and it
provides the information necessary to design change interventions.
Diagnostic models
 Conceptual frameworks that OD practitioners use to understand organizations
 Describe the relationships among different features of the organization, as well
as its environment and its effectiveness.
 Point out what areas to examine and what questions to ask in assessing how an
organization is functioning
LEVELS OF DIAGNOSING ORGANIZATIONAL SYSTEMS
 Overall Organization Level - includes the company’s strategy, structure, and
processes
 Group or Department Level - includes group design and methods for structuring
interactions among members, such as norms and work schedules.
 Individual Position or Job Level - includes ways in which jobs are designed to
elicit required task behavior

COLLECTING, ANALYZING, AND FEEDING BACK

Diagnostic Relationship - Establishing the diagnostic relationship between the OD
practitioner and relevant organization members is similar to forming a contract. It is
meant to clarify expectations and to specify the conditions of the relationship
Careful attention to establishing the diagnostic relationship helps to promote the three
goals of data collection:
o to obtain valid information about organizational functioning
o helps organization members start thinking about issues that concern them, and it
creates expectations that change is possible
o helps to develop the collaborative relationship necessary for effecting
organizational change
Collecting Data
 Four major techniques for gathering diagnostic data:
1. Questionnaires
2. Interviews
3. Observations
4. Unobtrusive measures
o Questionnaires - One of the most efficient ways to collect data, contain fixed-
response queries about various features of an organization, can be
administered to large numbers of people simultaneously
 o Interviews - Most widely used technique for collecting data in OD. They permit
the interviewer to ask the respondent direct questions, further probing and
clarification is, therefore, possible as the interview proceeds, gaining private
views and feelings about the organization and for exploring new issues that
emerge during the interview
o Observations - More direct ways of collecting data is simply to observe
organizational behaviors in their functional settings and observations provide
insightful data about organization and group functioning, intervention success,
and performance. For example, observations are particularly helpful in
diagnosing the interpersonal relations of members of work groups
o Unobtrusive measures - Are not collected directly from respondents but from
secondary sources, such as company records and archives and these data are
generally available in organizations and include records of absenteeism or tardiness;
grievances; quantity and quality of production or service; financial performance;
meeting minutes; and correspondence with key customers, suppliers, or
governmental agencies.
Analyzing Data
o Organizes and examines the information to make clear the underlying causes of
an organizational problem or to identify areas for future development
o Data analysis techniques fall into two broad classes: qualitative and quantitative

Feeding back data

o Perhaps the most important step in the diagnostic process is feeding back
diagnostic information to the client organization. Properly analyzed and
meaningful data can have an impact on organizational change only if
organization members can use the information to devise appropriate action plans
o A key objective of the feedback process is to be sure that the client has
ownership of the data
o A key objective of the feedback process is to be sure that the client has
ownership of the data

DESIGNING INTERVENTIONS
Overview of Interventions - The OD interventions described here represent the major
organization change methods used in OD today. They include four major types of
planned change: human process interventions, technostructural interventions, human
resource management interventions, and strategic change interventions
A. Human Process Interventions
 derive mainly from the disciplines of psychology and social psychology and
the applied fields of group dynamics and human relations
 Oldest and Most applied Interventions in Organization Development (OD)
 o Process Consultation
o Third-party Intervention
o Team building
 Human Process Interventions that are more system-wide. They typically
focus on the total organization or an entire department, as well as on
relations between groups
o Organization Confrontation Meeting
o Intergroup Relations
o Large Group Interventions
B. Technostructural Interventions
 are rooted in the disciplines of engineering, sociology, and psychology and
in the applied fields of sociotechnical systems and organization design
o Structural Design- This change process concerns the organization’s
division of labor how tasks are subdivided into work units and how
those units are coordinated for task completion
o Downsizing - This intervention reduces costs and bureaucracy by
decreasing the size of the organization through personnel layoffs,
organization redesign, and outsourcing
o Reengineering - This intervention radically redesigns the organization’s
core work processes to create tighter linkage and coordination among the
different tasks.
 Methods for involving Employees in Decision Making - These generally attempt to
move knowledge, power, information, and rewards downward in the organization
o Parallel Structures - This intervention involves organization members in
resolving ill-defined, complex problems.
o Total Quality Management - This intervention involves organization
members in continuously improving quality as part of normal work
operations
o High-involvement Organizations - This comprehensive intervention
designs almost all features of the organization to promote high levels of
employee involvement

 Designing Work for individual Jobs and Interactive Groups - These change programs
involve engineering, motivational, and sociotechnical systems approaches to work
design.
o Job Enrichment - This intervention creates jobs that employees are likely to
experience as meaningful with high levels of autonomy and feedback from
performing the work.
o Self-managed Work Teams - This intervention designs work for teams
performing highly interrelated tasks that require real-time decision making

C. Human Resources Management Interventions

  are rooted in labor relations and in the applied practices of compensation and
benefits, employee selection and placement, performance appraisal, career
development, and employee diversity and wellness
o Goal Setting - This change program involves setting clear and challenging
goals. It attempts to improve organization effectiveness by establishing a
better fit between personal and organizational objectives.
o Performance Appraisal - This intervention is a systematic process of jointly
assessing work-related achievements, strengths, and weaknesses
o Reward systems - This intervention involves the design of organizational
rewards to improve employee satisfaction and performance
 Change Methods for Managing, Developing, and Retaining organizational talent
o Coaching and Mentoring - This intervention helps executives and employees
to clarify their goals, deal with potential stumbling blocks, and improve their
performance
o Management and Leadership Development - The oldest strategies for
organizational change, training and development interventions increase
organization members’ skills and knowledge
o Career Planning and Development - This intervention helps people choose
organizations and career paths and attain career objectives
 Interventions for Supporting Organization Members
o Managing Workforce Diversity - This change program makes human
resources practices more responsive to a variety of individual needs
o Employee Stress and Wellness - These interventions include employee
assistance programs (EAPs) and stress management. EAPs are counseling
programs that help employees deal with substance abuse and mental health,
marital, and financial problems that often are associated with poor work
performance
D. Strategic Change Interventions
 that link the internal functioning of the organization to the larger environment
and transform the organization to keep pace with changing conditions
o Organization Design - address the different elements that comprise the
“architecture” of the organization, including structure, work design,
human resources practices, and management processes
o Integrated Strategic Change - This comprehensive OD intervention
describes how planned change can make a value-added contribution
to strategic management
o Culture change - helps an organization develop a culture (behaviors,
values, beliefs, and norms) appropriate to its strategy and competitive
environment
 The increasing need for organizations to change continuously in response to
rapidly changing environments
o Dynamic Strategy Making - helps organizations build a strategic
system that can adapt continually to changing conditions
 o Self-designing Organizations - change program helps organizations
gain the capacity to alter themselves fundamentally
o Learning Organizations – involves increasing the organization’s
capability to acquire and develop new knowledge, including how that
knowledge can be organized and used to improve organization
performance
o Built-to-change Organizations - this approach to continuous change
challenges the traditional assumption that stability is the key to organizational
success.
o assume that the source of effectiveness is the ability to change
continuously.
 Strategic Interventions that Shape how organizations collaborate with each
other
o Mergers and Acquisitions - intervention describes how OD practitioners
can assist two or more organizations to form a new entity.
o Alliances - collaborative intervention helps two organizations pursue
common goals through the sharing of resources, including intellectual
property, people, capital, technology, capabilities, or physical assets
o Networks - helps to develop relationships among three or more
o organizations to perform tasks or solve problems that are too complex
for single organizations to resolve
What Are Effective Interventions?
• Valid information is the result of an accurate diagnosis of the
organization’s functioning
• Free and informed choice suggests that members are actively involved in
making decisions about the changes that will affect them
• Internal commitment means that organization members accept ownership
of the intervention and take responsibility for implementing it.
Three major criteria define an effective OD Intervention
 The extent to which it fits the needs of the organization
 The degree to which it is based on causal knowledge of intended
outcomes
 The extent to which it transfers change management competence to
organization members
How to Design Effective Interventions
Designing OD interventions requires paying careful attention to the needs and dynamics
of the change situation and crafting a change program that will be consistent with the
previously described criteria of effective interventions. Current knowledge of OD
interventions provides only general prescriptions for change
 Two major sets of contingencies that can affect intervention success have
been discussed in the OD literature
o Contingencies Related to the Change Situation
o Contingencies Related to the Target of Change

MANAGING CHANGE
 Managing organizational change is the process of planning and implementing
change in organizations in such a way as to minimize employee resistance
and cost to the organization while simultaneously maximizing the effectiveness
of the change effort.
What causes organizational change?
 Many factors make organizational change necessary. Some of the most common
faced by managers include:
o New leadership at the helm of the company or within its departments
o Shifts in the organizational team structure
o The implementation of new technology
o The adoption of new business models
o To ensure a smooth transition, it’s important to have a set
organizational change management process that can be applied
across various types of change
Why is organizational change management important?
 Organizational change is necessary for companies to succeed and grow. Change
management drives the successful adoption and usage of change within the
business. It allows employees to understand and commit to the shift and work
effectively during it
 Without effective organizational change management, company transitions can
be unpredictable and expensive in terms of both time and resources. They can
also result in lower employee morale and skill development
Types of Organizational Change
1. Strategic Change
 Organizations implement strategic changes to their business to achieve
goals, boost competitive advantage in the market, or respond to market
opportunities or threats
o Updating your mission as you grow
 o Innovation
o Restructuring
2. People-Centric Organizational Change
 While all changes affect people, people-centric types of organizational
change include instituting new parental leave policies or bringing in new
hires. When implementing a people-centric change, the leadership must
bear in mind that employees will naturally resist change
o New hire on boarding
o Responsibilities
o Layoffs
3. Structural change
 Structural changes are changes made to the organization’s structure that
might stem from internal or external factors and typically affect how the
company is run
o Mergers and acquisitions
o The creation of new teams or departments
o Changes to the company organizational chart
4. Technological change
 The increasing market competition and constantly evolving technology
lead to technological change within organizations
o Digital transformation
o Introduction of a new technology
5. Unplanned change
 Unplanned change is defined as a necessary action following unexpected
events
o examples of unplanned change
- Shift to remote work
- Loss of critical personnel
-
6. Remedial change
 Remedial changes are reactionary. This type of change occurs when a
problem is identified, and a solution needs to be implemented
o 2 examples of remedial change
- Addressing customer communication issues
- Providing more training for new hires

EVALUATING AND INSTITUTIONALIZING ORGANIZATION DEVELOPMENT

INTERVENTIONS
Issues in Evaluating OD Interventions
 Implementation and Evaluation Feedback
 Measurement
 o Select the right variables to measure
o Design good measurements
- Operational
- Reliable
- Valid
 Research Design
Implementation Feedback
 Feedback aimed at guiding implementation efforts
 Milestones, intermediate targets
 Measures of the intervention’s progress
Evaluation Feedback
 Evaluation Feedback - Feedback aimed at determining impact of intervention
 Goals, outcomes, performance
 Measures of the intervention’s effect
Sources of Reliability
 Rigorous Operational Definitions
o Provide precise guidelines for measurement
o How high does a team have to score on a five-point scale to say that is
effective?
 Multiple Measures
o Multiple items on a survey
o Multiple measures of the same variable (survey, observation, unobtrusive
measure)
o Standardized Instruments

Institutionalization Processes
Socialization
• Communication information about change across organization
Commitment
• Members freely select change behaviors
Reward Allocation
• Link rewards to new behaviors
Diffusion
• Transmission of change across organization systems
Sensing and Calibration
• Implementation feedback

• MODULE 4: ORGANIZATION DESIGN

CONTINGENCY APPROACHES TO ORGANIZATION DESIGN
Organization Design is a process for structuring and running organization to achieve its
goals efficiently and effectively. It involves determining the appropriate hierarchy, roles
and responsibilities, and organizational communication channels. It aims to create a
structure that facilitates the achievement of the organization’s objectives and maximizes
the use of its resources
TYPE OF ORGANIZATION DESIGN
 Hierarchal Structure
 Network Structure
 Team-Based Structure
 Matrix Structure
 Functional Structure
 Horizontal or Flat Structure
 Divisional Structure
CONTINGENCY APPROACHES TO ORGANIZATION DESIGN
What is Contingency?
An event that might occur and must be planned for

Contingency also means that one thing depends on other things, and for organizations
to be effective there must be a “goodness of fit” between their design and various
contingency factors
What works in one setting may not work in another setting. There is no “one best way.”
If you are an organization manager, keep these guidelines in mind:
 Be cautious when applying something that works in one situation to another
situation
 All organizational systems are not the same. Use organization design
concepts to identify the correct structure and management systems for each
organization
  The effective organization design means understanding various
contingencies.
 The organization is designed to “fit” the contingency factors
What is the Purpose of Contingency Approach?
The contingency approach is based on the idea that there is no single best way to
manage. Effective organizations must tailor their planning, organizing, leading, and
controlling to their particular circumstances

Contingency Factors affecting Organization Design

1. Strategy
 The organization’s goals and strategy define the purpose and competitive
techniques that set it apart from other organization
 Goals are often written down as an enduring statement of company intent
 A strategy is the plan of action that describes resource allocation and
activities for dealing with the environment and for reaching the
organization’s goals.
2. Environment
 The environment includes all elements outside the boundary of the
organization
 Key elements include the industry, government, customers, suppliers, and
the financial community
 The environmental elements that affect an organization the most are often
other organizations
3. Technology
 Refers to the tools, techniques, and actions used to transform inputs into
outputs
 It concerns how the organization actually produces the products and
services it provides for customers and includes such things as flexible
manufacturing, digital information systems, and the Internet.
 An automobile assembly line, a social media platform, a college
classroom, a ride-hailing app, and an overnight package delivery system
are technologies, although they differ from one another
4. Size
 Typically measured by the number of employees
 In terms of size, small organizations are generally informal and have little
division of labor, few rules and regulations, and ad hoc budgeting and
performance systems
 Large organizations such as Coca-Cola & Samsung on the other hand,
have an extensive division of labor, numerous rules and regulations, and
 standard procedures and systems for budgeting, control, rewards, and
innovation.

5. Culture
 The underlying set of key values, beliefs, understandings, and norms
shared by employees
 These underlying values and norms may pertain to ethical behavior,
commitment to employees, efficiency, or customer service, and they
provide the glue to hold organization members together
 At General Electric (GE), for example, Jack Welch implemented Work-Out
sessions to create a culture of open and direct conversation among
employees and managers

STRATEGY, STRUCTURAL IMPERATIVES AND STRATEGIC STRUCTURES

STRATEGY
ORGANIZATIONAL STRUCTURE
Organizational structure (OS) is the systematic arrangement of human resources in
an organization so as to achieve common business objectives. It outlines the roles and
responsibilities of every member of the organization so that work and information flow
seamlessly, ensuring the smooth functioning of an organization
Determinants of Organizational Structure
 STRATEGY
 STRUCTURAL IMPERATIVES
 STRUCTURAL IMPERATIVES
 STRATEGY
 The plans and actions necessary to achieve organization goals
 “Structure follows strategy” (Alfred Chandler) states that organizational
structure of corporation (the divisions, departments, teams, processes and
technology) are designed to achieve a firm's strategy
 STRUCTURAL IMPERATIVES
 The following are the identified imperatives, (Bolman and Deal, 2013):
Size and Age, Core Process, Environment, Strategy and Goals,
Information Technology and Nature of the Workforce
 STRATEGIC CHOICE
 The plans and actions necessary to achieve organization goals
 “Structure follows strategy” (Alfred Chandler) states that organizational
structure of corporation (the divisions, departments, teams, processes and
technology) are designed to achieve a firm's strategy.
 Strategic Structure Strategy - Strategic structure would be the
relationships between the different elements of strategy. The role of
structure in strategy is to facilitate delegation, authorization, review and
 adjustment of the strategy. The structure allows the strategy to be
cascaded into the organization

MODULE 5: ACTION PLAN AND CHANGE TOOLS FOR

ORGANIZATIONAL DEVELOPMENT
WHAT IS ORGANIZATIONAL DEVELOPMENT?
 A critical and science-based process that helps organizations build their
capacity to change and achieve greater effectiveness by developing,
improving, and reinforcing strategies, structures, and processes
 The study and implementation of practices, systems, and techniques that
affect organizational change. The goal of which is to modify a
group's/organization's performance and/or culture

Brief History of Organizational Development

 1930s - Organizational development evolved in roughly in the world
of Psychology.
 Kurt Lewin (1898-1947) – founding father, an MIT professor who
worked across a wide range of areas including organizational
psychology and change as well as group dynamics
 Richard Beckhard - who coined the term in the 1950s while working
at Bell Labs. He published “Organization Development: Strategies
and Models”.
Importance of Organizational Development
 Identifies Areas That Need Change - identifies areas in your company
operations where change is needed. Senior decision makers and
managers can analyze each need, and project the potential effects of
change into a management plan
 Promotes and Manages Growth - Another role of organizational
development is as an important tool in managing and planning corporate
growth.
 Helps Product Innovation - One of the additional functions of
organizational development is product innovation, which requires the
analysis of several kinds of information to be successful.
 Analyzes Work Processes - Analyzing your company’s work processes is
another role of organizational development
 Define Job Roles and Responsibilities - Workforce planning must identify
and define job roles in all departments in the company. Defining the job
roles in the business is a step toward identifying the staffing needs of each
department in the organization
 Identify Staffing Levels - One of the objectives of a workforce planning
strategy is to identify appropriate staffing levels for all departments in a
business during all shifts
 Increase Efficiency in Human Resources - An effective planning strategy
must also plan to use workers effectively in the business. The strategy can
 include training workers to move into higher skilled positions and
promoting from within the business
 Improve Resource Allocation - When a business determines the staffing
levels and skills required for specific departments in the company, the
business owner can allocate resources in the budget to fund recruitment,
hiring and training costs as well as finance salaries for new employees

FACTORS INFLUENCING ORGANIZATIONAL DEVELOPMENT

 Leadership and Organizational Development Leadership - is a
critical factor for organizational development. Organization is made
up of people with different roles and responsibilities, functioning in
departments and work units.
 Innovation and Organizational Development In the world of work -
is the ability of an organization to innovate by creating new things;
new products and services, new production techniques and new
processes that helps in enhancing firm development at work
 Inter-functional Coordination, Communication, Knowledge Sharing
and Organizational Development - A major factor that influences
organizational development is interfunctional coordination,
communication and knowledge sharing across the organization
between departments and work units.
 Strategic Management and Organizational Development Strategic
management - is an organizational factor that managed the
organization and its environment for the firm to attain sustainable
competitive advantages in the market.
 Information and Communication Technology and Organizational
Development - Today business operations cannot be effective
without the incorporation of information and communication
technologies

COMMON CHALLENGES THAT COME WITH ORGANIZATIONAL

DEVELOPMENT PROCESSES
 Fear of the unknown- Some employees are afraid to implement
new plans because they’re afraid of failure or reluctant to enter
uncharted territory. They may be cynical about change if past
initiatives failed, or they may think the organization is fine as it is
 Conflicting goals - Sometimes, leaders disagree about a company’s
ultimate goals. This conflict often pertains to finances and allocation
of resources, sometimes stemming from poor communication
between management branches
 Burnout - employees may experience burnout if proper supports
are lacking
 Lack of leadership - leaders may leave an organization, forcing the
remaining employees to scramble to fill the gaps
 Lack of leadership - leaders may leave an organization, forcing the
remaining employees to scramble to fill the gaps
  Lack of understanding of planned changes - Employees expect
well-planned and predictable changes, so when surprises or
missteps occur, they can lose faith in the process
 Difficulty changing the mission or values - During periods of
change, some employees may feel that the company’s mission
doesn’t align with the new initiatives. This may cause resistance to
change
7 KEYS TO SUCCESSFUL ORGANIZATIONAL DEVELOPMENT

1. Involve all employees in decision making - Involving employees in the

entirety of the planning process serves the singlemost important
purpose of giving them input into the company plan
2. Change should focus on groups and departments - Each specific
department should be analyzed to see where it is highly functional and
where it can be improved. The change should be department wide, not
necessarily put on the shoulders of certain individuals
3. Build trust throughout the organization - Employees simply will not give
their full effort and attention to a company that they do not trust.
Building trust with the employee is paramount to getting the
employee’s buy-in to the company’s strategic plan.
4. Invest in education, benefits and incentives - Helping your employees
become masters of their own personal universe empowers them to
excel at their activities. Investing in education to help them learn the
necessary skills to do their jobs to the best of their ability.
5. Encourage collaboration over competition - It used to be common to
create internal competitions to spur action. But for every competition,
there needs to be a loser. When someone loses repetitively, they may
eventually decide to stop competing. A better alternative is to create an
environment of collaboration over competition
6. Create the opportunity for employee feedback - Having open channels
of communication is key for an organization to ensure it’s strategic plan
gets carried out. Not only should employees have an unrestricted
ability to give meaningful feedback, including constructive criticism,
during the planning stages, they should have the ability to openly
communicate all along the way should unforeseen problems arise.
7. Involve all members of the organization - It’s important to showcase
the importance of diversity of thought, and the need for every member
of the organization to participate in strategic planning sessions. The
greatest ideas may not always come from the person with the most
prestigious title.

ACTION RESEARCH IN ORGANIZATIONAL DEVELOPMENT

Organizational Development
  Organization development is a planned process of change in an
organization’s culture through the utilization of behavioral science
technologies, research, and theory. (Burke, 1994).
 Change is best achieved when the researcher and the client cooperate
together to identify needs and implement solutions

Action Research
 is a research method in which the researcher intervenes in and during the
research
 This serves two purposes:
o it will bring about positive change
o knowledge and theory will be generated
Types of Action Research
 Participatory action research - emphasizes that participants should be
members of the community being studied, empowering those directly
affected by outcomes of said research. In this method, participants are
effectively co-researchers, with their lived experiences considered
formative to the research process
 Practical action research - focuses more on how research is conducted
and is designed to address and solve specific issues
Action Research Model (ARM)
 The ARM process encourages collaboration and cooperation among
leaders and employees to improve their relationships and communication
 Through Action Research, the OD Practitioner gains a deeper
understanding of the system at hand, while the client group takes
ownership of their living system
Process of Action Research consists of Five Steps
 DIAGNOSIS - In the first step, the change agent gathers information about
problems, anxieties and required changes from members of the
organization
 ANALYSIS - The information gathered in the first step is analyzed in this
step
 FEEDBACK - In this step, the change agent will share will the employees
what has been found in steps one and two
 ACTION - Action plans decided in the previous step are set in motion in
this step
 EVALUATION - As action research provides a scientific methodology for
managing the planned change, in the final step, the change agent
evaluates the effectiveness of the action plans

In summary, participatory action research is a good method for agencies to identify

issues and take informed action to correct them. It is a deliberate process which allows
for input from many different sources. By using this process, more informed decisions
about change can be made and implemented
 MODULE 6: ACTION PLAN AND CHANGE TOOLS FOR
ORGANIZATIONAL DEVELOPMENT
MANAGING CHANGE

What is CHANGE MANAGEMENT?

Change refers to any alteration that occurs in total work environment

Change management is the process that businesses and organizations use to

implement changes through building and delivering effective change strategies. It
includes reviewing reasons for change, implementing changes, and helping people
adapt to these changes. This could be staff structure, introducing new technology,
reducing costs, increasing profits, or a combination of these to reach a desired goal.

CHANGE MANAGEMENT PROCESS

1. Prepare for change - This step involves understanding the necessary
changes and preparing staff members and stakeholders for what’s to
come. It’s an important part of the process, ensuring the change manager
supports staff through any concerns and manages resistance by
communicating the process and getting buy-in from employees
2. Create a vision for change - This stage is about creating the strategy to
reach transformation once stakeholders have agreed for a change. Those
involved set goals, delegating key performance indicators (KPIs) and
tasks to the relevant parties. The change management team makes plans
to account for possible problems and helps everyone understand their role
in managing processes at each level
3. Implement changes - This step puts the change plans into action.
Excellent management and communication are key here, and change
managers need to make sure everyone is doing their duties and that
employees are still happy and empowered, to ensure everything runs
smoothly
4. Embed and solidify changes - Once the changes have been made, it’s
vital to make sure the transformation is in place so that staff members
don’t slip back into old ways. This step ensures systems are in place to
train staff and clarify new structures, workflows, and rewards.
5. Review and analyze - The final stage of the process is important to make
sure that changes continue and are beneficial. Change managers review
what worked and what didn’t work to make adjustment accordingly
Types of Change Management
Anticipatory- Anticipatory change is when an organization makes changes in response
to something expected to happen. For example, environmental concerns or new trends
the organization wants to capitalize on can cause stakeholders to anticipate the need
for change
Reactive - Reactive change happens in response to an event that impacts the business.
This could be new industry regulations or changes to deal with a pandemic like Covid-
19
Incremental - Incremental change is a series of changes, usually at a micro level, that
adds up to wider overall changes. Examples include implementing a reward system,
introducing new flexible working policies, or changing office hours.
Strategic - Strategic changes are made and filtered down from a higher level and impact
the whole organization. An example of this would be a change in leadership or
organizational structure.

The Basics of Managing Change

What kinds of change benefit from using change management?
The first level of change management is generic enough to apply to any type of change,
whether it's the creation of a new department or the implementation of a new
technology. At this generic level, change management methods are mostly targeted at
understanding the human response to change and creating effective strategies for
engaging people to achieve change. The second level of change management includes
methods that are specific to a particular change. For example, in technology
implementations, specific actions include establishing and communicating the business
case for change, ongoing relationship building, communication and training for affected
staff, redesigning business processes, and creating and sustaining groups to manage
the project.
What kinds of change benefit from using change management?
The first level of change management is generic enough to apply to any type of change,
whether it's the creation of a new department or the implementation of a new
technology. At this generic level, change management methods are mostly targeted at
understanding the human response to change and creating effective strategies for
engaging people to achieve change. The second level of change management includes
methods that are specific to a particular change. For example, in technology
implementations, specific actions include establishing and communicating the business
case for change, ongoing relationship building, communication and training for affected
staff, redesigning business processes, and creating and sustaining groups to manage
the project.

Effective Organizational Change Management

A change management plan can support a smooth transition and ensure your
employees are guided through the change journey. Change initiatives fail due to
negative employee attitudes and unproductive management behavior.
Forces of Organizational Change
External Forces
External environment affects the organizations both directly and indirectly. The
organizations do not have any control over the variables in such an environment.
Accordingly, the organization cannot change the environment but must change them to
align with the environment. A few of these factors are:
 Technology
 Marketing Conditions
 Social Changes
 Political Forces
Internal Forces
Internal forces are too many and it is very difficult to list them comprehensively.
However, major internal causes are explained as follows:
 Nature of the Work Force
 Change in Managerial Personnel
 Deficiencies in Existing Management Structure
 To Avoid Developing Inertia
What Is Resistance to Change?
Resistance to change is the reluctance of people to adapt to change. Employees can be
overt or covert about their unwillingness to adapt to organizational changes. This
opposition can range from expressing their resistance publicly, to unknowingly resisting
change through micro-resistance, language, or general actions.