CHAPTER 10 - Introduction To Organization Development
CHAPTER 10 - Introduction To Organization Development
Objectives
What do you consider and think about change? Why should you care and be
concerned about organization development or planning the change (OD)? What do
change management and what is organization development mean? What special terms
and of significance and importance are used in business organization change and
development? What are structure, strategy and systems thinking, and why is it
important to OD practitioners and consultants? What are the rational and philosophical
foundations of OD, and why are they so essential and important? How is OD linked and
interrelated to other HR fields?
One of the most frequently cited definitions of OD comes from Richard Beckhard
(1969), an early leader in the field of OD:
Organization development is an effort (1) planned, (2) organizationwide, 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. (p. 9)
Beckhard’s definition has many points that have survived the test of time, including his
emphasis on organizational effectiveness, the use of behavioral science knowledge,
and the inclusion of planned interventions in the organization’s functions. Some critique
this definition, however, for its emphasis on planned change (many organizational
changes, and thus OD efforts, are in response to envi- ronmental threats that are not so
neatly planned) and its emphasis on the need to drive organizational change through
top management. Many contemporary OD activities do not necessarily happen at the
top management level, as increasingly organizations are developing less hierarchical
structures.
Based on (1) a set of values, largely humanistic; (2) application of the behavioral
sciences; and (3) open systems theory, organization development is a systemwide
process of planned change aimed toward improving overall organization effec- tiveness
by way of enhanced congruence of such key organizational dimensions as external
environment, mission, strategy, leadership, culture, structure, infor- mation and reward
systems, and work policies and procedures.
6. Increasing rate and magnitude of change refers to the increasing speed and
scope of changes that occur. In short, change itself is changing—and posing ever-more-
daunting challenges for business leaders to respond in real time to breaking events
(William J. Rothwell, Roland L. Sullivan,2005).
Time has become a key strategic resource. The challenge of the future is to help
people adapt to change, often in real time and as events unfold. Time has become
important precisely because changing technology provides many possible strategic
advantages to organizations. Today the organization that makes it to market first by
commercializing basic research results seizes market share— and is likely to keep it.
And organizations that miss technological innovations to increase production speed or
improve quality lose out to global competitors who function in a world where differences
in labor costs can easily be taken advantage of because of the relative ease of
international travel and communication. Changing technology is also a driver for the
information explosion—and vice versa. Consider the sheer magnitude and pace of the
information explosion. According to William J. Rothwell, Roland L. Sullivan,2005 and
cited in Heylighen, 1999, People have different ways of responding to information
overload and to change. One approach is to give up. Another approach, widely used, is
to try to master clever ways to do more than one thing at a time—that is, multi-tasking.
And yet, according to University of Michigan researcher David E. Meyer, efforts to cope
with the effects of change by trying to do more than one thing at a time are causing their
own problems. Multi-tasking can actually reduce productivity because it may take as
much as 50 percent longer to process two tasks performed simultaneously than it takes
to do two tasks one after the other, according to Richtel (William J. Rothwell, Roland L.
Sullivan,2005).
Current practice in organization development is strongly influenced by these five
backgrounds as well as by the trends shaping change in organizations. The laboratory
training, action research and survey feedback, normative, and QWL roots of OD are
evident in the strong value focus that underlies its practice. The more recent influence of
the strategic change background has greatly improved the relevance and rigor of OD
practice. They have added financial and economic indicators of effectiveness to OD’s
traditional measures of work satisfaction and personal growth. All of the backgrounds
support the transfer of knowledge and skill to the client system and the building of
capacity to better manage change in the future. Today, the field is being influenced by
the globalization and information technology trends described earlier. OD is being
carried out in many more countries and 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.42 In addition, OD must adapt its methods to the
technologies being used in organizations. As information technology continues to
influence organization environments, strategies, and structures, OD will need to
manage change processes in cyberspace as well as face-to-face. The diversity of this
evolving discipline has led to tremendous growth in the number of professional OD
practitioners, in the kinds of organizations involved with OD, and in the range of
countries within which OD is practiced (Organization Development & Change, 9th
Edition Thomas G. Cummings & Christopher G. Worley 2009, 2005).
And OD practitioners raise best to the challenge when they expand their horizons
and welcome new insights and possibilities, regardless of source, that help all do their
work better. OD, for example, has an increasingly important role to play in a world
where individuals have morphed into human capital, where “lean and mean” too often
replaces an emphasis on quality of work life, where an unrelenting focus on bottom-line
profits trumps loyalty and learning, and where ethical decision making across sectors
seems akin to standing on shifting sands. No other field is better prepared or set to
address these kinds of challenges or to understand their long-term impact on
organizational innovation, productivity, and survival. To do that well, OD needs to keep
its values straight, its resolve strong, and its eye on the prize: improved organizational
health and effectiveness (John Wiley & Sons, Inc.,2006).
Perhaps the point on which most definitions agree is that the backdrop and purpose of
organization development is change. As you have no doubt personally experienced,
large-scale organizational change is rarely simple and met without skepticism. As Peter
Senge writes, “Most of us know firsthand that change programs fail. We’ve seen enough
‘flavor of the month’ programs ‘rolled out’ from top man- agement to last a lifetime”
(Senge et al., 1999, p. 6). Because of its impact on the organizational culture and
potential importance to the organization’s success, orga- nizational change has been a
frequent topic of interest to both academic and pop- ular management thinkers. With
change as the overriding context for OD work, OD practitioners develop interventions so
that change can be developed and integrated into the organization’s functioning.
Whether or not we agree with the values behind “change as a constant,” it is likely to
continue for the foreseeable future. Whereas some decry an overabundance of change
in organizations (Zorn, Christensen, & Cheney, 1999), others note that it is the defining
characteristic of the current era in organizations and that becoming competent at
organizational change is a necessary and distinguishing characteristic of successful
organizations (Lawler & Worley, 2006). There are, however, more- and less-effective
ways to manage change. Creating and managing change in order to create higher
performing organizations in which individuals can grow and develop is a central theme
of the field of OD. When we speak of organization development, we are referring to the
management of certain kinds of these changes, especially how people implement and
are affected by them.
Management Consulting
While individual and organization learning is a part of OD and a key value we will
discuss in a later chapter, OD work is not confined to training activities. OD is not
generally the context in situations in which learning is the sole objective, such as
learning a new skill, system, or procedure. OD deals with organizational change efforts
that may or may not involve members of the organization needing to learn specific new
skills or systems. Many training and development professionals are gravitating toward
OD to enhance their skills in identifying the structural elements of organizations that
need to be changed or enhanced for training and new skills to be effective. Other
aspects of the training and development profession, however, such as needs
assessment, course development, the use of technology, or on-the-job training, are not
central to the job of the OD practitioner.
In addition, most training programs are developed for a large audience, often
independent of how the program would be applied in any given organization. While
some OD interventions do incorporate training programs and skill building, OD is more
centrally concerned with the context that would make a training program successful,
such as management support, job role clarification, process design, and more. As Burke
(2008) writes, “Individual development cannot be sep- arated from OD, but to be OD,
individual development must be in the service of or leverage for system-wide change,
an integral aspect of OD’s definition” (p. 23).
Short Term
OD is intended to address long-term change. Even in cases in which the inter- vention
is carried out over a short period (such as the several-day workshops conducted at the
cancer center described earlier), the change is intended to be a long-term or permanent
one. OD efforts are intended to develop systemic changes that are long lasting. In the
contemporary environment in which changes are constantly being made, this can be
particularly challenging.
Characteristics of OD
The American Society for Training and Development’s OD Professional Practice Area
attempted to provide a synthesis of the various definitions by providing the key points
that it saw in the range of definitions available:
5. is based on collaboration;
6. is a systems orientation.
The following conclusions can be drawn about the core characteristics of OD:
10. It is guided by a change agent, change team, or line manage- ment whose
primary role is that of facilitator, teacher, and coach rather than subject matter
expert.
Summary
In an effort to simplify an explanation of what OD is, some have suggested that OD and
change management are the same. I disagree. There are times in the life of an
organization where dramatic change is needed change that does not and cannot rely on
the use of OD. The marketplace sometimes requires that an organization take swift and
unplanned actions in order to survive. It may require outsourcing domestically or to
another country, downsizing, reductions in salaries, and increasing health care costs.
Although all of these changes may be absolutely necessary for the survival of the
organization, they do not necessarily follow the OD processes, principles, or values. An
excellent distinction between OD change and change that does not follow OD principles
is discussed in Beer and Nohria (2000). In essence, they argued that there is E change
(economic value) and O change (organization’s human capability), one of which is
planned and follows OD principles (O), while the other (E) is market driven and does not
follow OD principles; both can be included in what many people call change
management. So, it is a mistake to equate OD with change management. The business
benefits when both types of change are affirmed within an organization. While long-
term, system wide planning that results in change (the OD model) can be very beneficial
for an organization and its bottom line, failure to act quickly and to make immediate
decisions, even when those processes violate OD principles, may well result in the
demise of the organization.
QUESTIONS FOR DISCUSSION OR SELF-REFLECTION
1. Is the list you made of positive experiences in your selected organization while
reading this chapter longer than the negative experiences, or vice versa? What is
there about that organization that leads to this outcome?
2. Which definition of OD do you prefer? Why?
3. Do you think it makes a difference if OD is viewed as a stand- alone field or as a
subset of another field? Why?
4. Describe an example of change in an organization that does not follow OD
principles. What is it about that example that is not consistent with OD principles?
5. Pick an organization of which you are a member. Would you rather work with an
internal or an external OD consultant? Why?
6. From your perspective, is it important to have recognized credentials for OD
consultants? Why?
7. Why do you think there are so few credentialing organizations? Why is the
existing credentialing process not more rigorous?
8. Why do you think that appreciative inquiry consultants might have a difficult time
in selling the concept to clients? What arguments might be used to make the
concept acceptable?
9. How do you think the OD Principles of Practice would influence how an OD
consultant does his or her job? Discuss whether you believe that following the
OD Principles of Practice statement will add business value to an organization.