UNIT 2

Conceptual
Framework of
Organizational
Development
Definition of OD
• The term organization development is used to capture the
developmental efforts or the planned changes that are made in
organizations on an on-going basis to improve the vitality of the
organization and its members.
• OD is a planned, systematic, organized, and collaborative effort
where behavioral science and organization theory principles and
practices are continuously applied in order to increase the quality of
life which is reflected in increased organizational health and vitality,
enhanced individual and group members’ competence and self-worth,
and the general overall well-being of society.
• According to Beckhard, “Organization development 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”.
Elements and Nature of OD
1. Planned change: OD is Planned evolution and improvement. This planning includes
examining the present and systematically diagnosing the organization’s needs, formulating
specific plan for improvement, and mobilizing the organizational resources needed to carry out
the change.
2. Organization wide: The goal of OD is to improve the effectiveness of the total organization,
although specific aspects may focus on subsystems. The underlying view is that an organization
is a system of inter-related parts.
3. Managed from the top: In an OD effort, the manger is a key element to success. Of the
change to work well, commitment from top management is crucial because it serves as a
standard for the rest of the organization’s members.
4. Organizational effectiveness: The object of OD is to increase the health and effectiveness
of the organization. According to Beckhard, the healthy organization manages in terms of
established goals; the organization is properly designed; decisions are made at the appropriate
level; communications are relatively undistorted; win/lose activities are minimized; there is high
‘conflict’ regarding projects and the tasks (clash of ideas), but relatively little clash over
interpersonal difficulties; there is emphasis on helping each person grow and develop; and the
organization is open and adaptive in an ‘action-research’ way.
5. Planned interventions: These are the strategies an organization develops for using
behavioral science knowledge to help it better understand its current methods of work, its norms
and values and to help it examine alternative methods of relating and rewarding its members.
 Characteristics of OD
1. System Orientation: Organization development is system oriented. It is concerned
with the interactions of the various parts of the organization which affect each other. It
lays stress on intergroup and interpersonal relationship. It is concerned with structure
and process a well as attitudes.
2. Use of Change Agent: Organization development is generally implemented with the
help one or more change agents, whose role is to stimulate, facilitate, and coordinate
change. The change agent usually acts as a catalyst, sparking change within the
system while remaining somewhat independent of it. Although change agents may be
either external or internal, they are usually consultants from outside the company.
Advantages of using external change agents are that they are more objective and have
diverse experiences. They are also able to operate independently without ties to the
hierarchy and politics of the firm.
3. Problem Solving: Organization development is concerned with the problem solving. It
seeks to solve the problems through practical experiences gained on the work and not
merely through theoretical discussion as in a class room. These problems mainly occur
at the time when working on the job. This focus on improving problem-solving skills by
discussing data-based system problems is called action research. In other words,
employees are “learning how to learn” from their experiences, so they can solve new
problems in the future.
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4. Experimental Learning: Organization development provides
experimental learning to help the participants learn new behavior patterns
through experience. They can discuss and analyze their own immediate
experience and learn from it. This approach tends to produce more
changed behavior than the traditional lecture and discussion, in which
people talk about abstract ideas. Theory is necessary and desirable, but
the ultimate test is how it applies in a real situation.
5. Human Values: OD programs are often based on humanistic values.
The values are positive beliefs about the potential and desire for growth
among employees. To be effective and self-reviewing, an organization
needs employees who want to increase their skills and contributions. The
best climate for this to happen is one that creates opportunities for growth
by stressing collaboration, open communications, interpersonal trust,
shared power, and constructive conformation. They all provide a value
base for OD efforts and help ensure that the organization will be
responsive to human needs.
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6. Contingency Orientation: Organization development is situational and
contingency oriented. As people learn to develop their behavioral concepts through
experience, they can suggest various ways to solve a particular problem and to
adapt any of them most suited in the present circumstances. Thus, OD is flexible
and pragmatic, adapting actions to fit particular needs.
7. Levels of interventions: OD programs are aimed at solving problems that may
occur at the individual, interpersonal group, inter-group and total organizational
level. OD interventions are designed for each level as for instance career planning
at the individual level, team building at the group level.
8. Feedback: Organization development supports feedback to participants so that
they may be able to collect the data on which decisions are based. For this purpose
participants may be divided into several groups according to the functions. Each
such group takes its own decision on the subjects referred to it, and then, the
decisions foreword to the other group for feedback. Each group comes to know the
impression of other groups about it and then groups meet together to thrash out any
misunderstanding developed among them. In this way, decisions of each group are
checked by other groups and the final decision is reached.
Objectives of OD
• To apply behavioral science theories: The first objective of organization
development is to apply some behavioral science theories in the organization.
By applying these theories organization development practices hope for
development.
• To improve organizational performance: Another objective of organization
development is to improve the overall performance of organization. Thus
organization can be established as one of the important institutions in human
history.
• To ensure proper use of individual efforts: Individual performance should be
improved. This is possible by using individual efforts properly. Organization
development ensures proper use of human efforts and commitment.
• To create awareness: Organization development crates awareness among the
people working in the enterprise. They feel the need for change in comparison
with other organizations.
• To encourage people to solve problems: Every organization has many
problems and challenges. Organization development encourages people to
solve these problems and face challenges at present and future.
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• To minimize resistance to change: In most of the cases, every change is
resisted, it hampers goal achievement. Organization development helps
minimize the resistance to change in a positive mood so that management
becomes more alert.
• To create job satisfaction: Job satisfaction encourages the people to work
hard with joy. Organization development creates job satisfaction of employees
who are involved in organization development activities.
• To increase motivation level: Motivation creates interest for work among the
employees. Therefore another important objective of organization development
is to increase motivation.
• To create supportive values: Every organization and employee has some
values and norms. The values and norms can help the organization to uphold
its own culture. Organization development creates supportive suitable values
and norms.
• To increase knowledge & skills: Knowledge on latest methods and skills can
streamline the growth of any organization. Organization development intends to
increase the knowledge and skill levels through training.
Interdisciplinary
nature of OD
 Explanation
• Organization development as a practice involves an ongoing, systematic
process of implementing effective organizational change. OD is both a field of
applied science focused on understanding and managing organizational change
and a field of scientific study and inquiry.
• It is interdisciplinary in nature and draws on sociology, psychology,
particularly industrial and organizational psychology, and theories of motivation,
learning, and personality.
• Although behavioral science has provided the basic foundation for the study and
practice of OD, new and emerging fields of study have made their presence felt.
Experts in systems thinking, in organizational learning, in the structure of
intuition in decision-making, and in coaching whose perspective is not steeped
in just the behavioral sciences, but in a much more multi-disciplinary and inter-
disciplinary approach, have emerged as OD catalysts or tools.
• Behavioral sciences as industrial/organizational psychology, industrial sociology,
communication,  cultural anthropology, administrative theory, organizational
behavior, economics, and political science, are main disciplines to help the
organization define and solve its own problems.
Managing the OD
process
Explanation
1. Initial Diagnosis of the Problem: In the first step, the management
should try to find out an overall view of the situation to find the real
problem. Top management should meet the consultants and the experts
to determine the type of program that is needed. In the first stage only,
the consultants will meet various persons in the organization and
interview them to collect some information.
2. Data Collection: In this stage, the consultant will make the surveys to
determine the climate of the organization and the behavioral problems of
the employees.
The consultant will meet groups of people away from their work
environment to get some answers to the questions such as:
(i) What specific job conditions contribute most to their job effectiveness?
(ii) What kind of conditions interferes with their job effectiveness?
(iii) What changes would they like to make in the working of the
organization?
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3.  Data Feedback and Confrontation: The data which has been
collected in the second step will be given to the work groups, who will be
assigned the job of reviewing the data. Any areas of disagreement will be
mediated among themselves only and priorities will be established for
change.
4. Planning Strategy for Change: In this stage, the consultant will
suggest the strategy for change. He will attempt to transform diagnosis of
the problem into a proper action plan involving the overall goals for
change, determination of basic approach for attaining these goals and the
sequence of detailed scheme for implementing the approach.
5. Intervening in the System: Intervening in the system refers to the
planned programmed activities during the course of an OD program.
These planned activities bring certain changes in the system, which is the
basic objective of OD. There may be various methods through which
external consultant intervene in the system such as education and
laboratory training, process consultation, team development etc.
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6. Team Building: During the entire process, the consultant
encourages the groups to examine how they work together. The
consultant will educate them about the value of free communication
and trust as essentials for group functioning. The consultant can
have team managers and their subordinates to work together as a
team in OD sessions to further encourage team building. Following
the development of small groups, there may be development among
larger groups comprising several teams.
7. Evaluation: OD is a very long process. So there is a great need
for careful monitoring to get precise feedback regarding what is going
on after the OD program starts. This will help in making suitable
modifications whenever necessary. For evaluation of OD program,
the use of critique sessions, appraisal of change efforts and
comparison of pre and post training behavioral patterns are quite
effective.
 Values and
assumptions of OD
Values of OD
1. Respect People: People are the raison d’etre of organization and they are responsible for creating
opportunities for growth. They must, therefore, be treated with respect and dignified manners.
2. Confidence and Support: Organizations are made up of people and they are to be believed and
supported in order to have effective organization. The healthy environment prevails when people are
trusted and taken into confidence and a necessary support is extended to them as and when needed.
3. Confrontation: Any conflict on any issue should not be suppressed. It should be dealt with
openness. Suppression leads to dampening of morale. Identifying the problem and its causes,
discussing it openly and finding out feasible solution leads to boosting up morale of the employees
and creating good environment.
4. Employee Participation: The participation of employees who will be affected by the OD should be
sought in decision-making.
5. Expression: Human beings differ in experience, maturity, ideas, opinions, and outlook. The
organization is at the receiving end. It gains from the differences in quality, ideas, opinions and
experiences of its people. Human beings are social animals; they have feelings, emotions, anger and
sentiments etc. They should be allowed to express their feelings and sentiments. This will result in
building up high morale and the people will be motivated towards hard work ultimately resulting in
increased efficiency.
6. Seeking Cooperation: Managers should learn to seek cooperation from each of the employees
working under him in his department. This will develop in creating the atmosphere of cooperation
leading to organizational effectiveness and willingness to accept change in the event of organization
development process.
Assumptions of OD
• The Organization development has a number of
underlying assumptions which can be examined so as to
determine how the OD program can be utilized to the
fullest potential.
• These assumptions are based upon French and Bell.
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1. Most individuals have drives towards personal growth and
development-
• The work habits are a response to work environment rather than
personality traits.
• Accordingly, efforts to change work habits should be directed towards
changing how the person is treated rather
2. Highest productivity can be achieved when the individual goals are
integrated with organizational goals than towards attempting to
change the person-
• Also with such integration, the quality of the product is highly improved.
3. Cooperation is more effective than competition-
• Conflict and competition tend to erode trust, prohibit collaboration and
eventually limit the effectiveness of the organization.
• In healthy organizations, “efforts are made at all levels to treat conflict as
a problem subject to problem solving methods”.
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4. The suppression of feelings adversely affects problem solving, personal
growth and satisfaction with one’s work-
• Accordingly, free expression of feelings is an important ingredient for commitment
to work.
5. The growth of individual members is facilitated by relationships, which are
open, supportive and trusting-
• Accordingly, the level of interpersonal trust, support and cooperation should be as
high as possible.
6. The difference between commitment and agreement must be fully
understood-
• Agreeing to do something is totally different from being committed to do
something.
• Sense of commitment makes it easy to accept change and the implementation of
change for the purpose of organizational development is even easier when such
a commitment is based upon participation in the process.
7. Organization development must be reinforced by the organisation’s total
human-resources system.
 Role and
Competencies of the
OD practitioner
Role of OD Practitioner
1. POSITION - Organization development professionals have positions that are either
internal or external to the organization. Internal consultants are members of the organization
and may be located in the human resources department or report directly to a line manager.
They may perform the OD role exclusively, or they may combine it with other tasks, such as
compensation practices, training, or employee relations. Many large organizations, such as
Boeing, Raytheon, Disney, Microsoft, Philip Morris, Procter & Gamble, Weyerhaeuser,
Kimberly Clark, and Citigroup, have created specialized OD consulting groups. These
internal consultants typically have a variety of clients within the organization, serving both
line and staff departments.
• External consultants are not members of the client organization; they typically work for a
consulting firm, a university, or themselves. Organizations generally hire external
consultants to provide a particular expertise that is unavailable internally, to bring a
different and potentially more objective perspective into the organization development
process, or to signal shifts in power.
2. MARGINALITY -The marginal person is one who successfully includes the boundary
between two or more groups with differing goals, value systems, and behavior patterns.
Whereas in the past, the marginal role always was seen as dysfunctional, marginality now is
seen in a more positive light. There are many examples of marginal roles in organizations:
the salesperson, the buyer, the first-line supervisor, the integrator, and the project manager.
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3. EMOTIONAL DEMAND - The OD practitioner role is
emotionally demanding. The research on emotional intelligence
in organizations suggests a set of abilities that can aid OD
practitioners in conducting successful change efforts. Emotional
intelligence refers to the ability to recognize and express
emotions appropriately, to use emotions in thought and
decisions, and to regulate emotion in one’s self and in others. It
is, therefore, a different kind of intelligence from problem solving
ability, engineering aptitude, or the knowledge of concepts.
4. USE OF KNOWLEDGE AND EXPERIENCE - The
professional OD role has been described in terms of a
continuum ranging from client centered (using the client’s
knowledge and experience) to consultant centered (using the
consultant’s knowledge and experience).
Competencies of OD Practitioners
1. Managing the consulting process
2. Analysis/diagnosis
3. Designing/choosing appropriate, relevant interventions
4. Facilitation and process consultation
5. Developing Client capability
6. Evaluating Organization Change

Core Competencies required to manage all the above

practices are as follows -
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1. Expertise in human dynamics - OD’s primary goal is to help an Organization become more
healthy and effective, especially during change. The key custodians of Organization health are
not the internal or external HR or OD specialist; they are the Organization’s leaders and
managers. Therefore, an OD consultant has to be committed to encouraging ownership and the
growth of Organization capability among the primary practitioners of OD, that is, leader’s. The
commitment is to design processes to facilitate an Organization’s ability to help itself through the
skillful engagement of its key leaders. Our goal is to help an Organization to secure from its own
internal members the acceptance, energy, competence and commitment to make things work.
2. Relationship-building- OD practitioners cannot rely on just a formal role, rank or power to
influence; instead, to earn the right to help by focusing on increasing our interpersonal influence to
make things happen, which in turn makes managing the relationship arena a key focus. Managing
relationships and using one’s self to shift mindsets and behavior requires an in-depth understanding
of how the human system works.
3. The self as instrument- Unlike the expert technical consultant, it is not just thinking skills (head)
that will enable us to do the job; but bring head, heart and all of one’s being to make real-time
intervention effective. It is the ability to stay acutely aware of our own inner processes moment by
moment, ability to get in touch with the complexity of what’s lurking below the waterline of human
dynamics, that will stand in good stead in this work. Therefore the development of OD practitioners is
not about academic study alone but about spending more and more development time getting to
know this instrument we own and learning to do more fine-tuning of that instrument through the
integration of our learning and experience.
Conclusion
• With the development of new and varied intervention
approaches, the OD professional’s role needs to be seen
as falling along the entire continuum from client centered
to consultant centered. At times, the consultant will rely
mainly on organization members’ knowledge and
experiences to identify and solve problems. At other
times, it will be more appropriate to take on the role of an
expert, withdrawing from that role as managers gain more
knowledge and experience.
Action Research
Model of OD
Introduction of Action Research Model
• The classic action research model focuses on planned change as a
cyclical process in which initial research about the organization
provides information to guide subsequent action. Then the results of
the action are assessed to provide further information to guide
further action, and so on. This iterative cycle of research and action
involves considerable collaboration among organization members
and OD practitioners. It places heavy emphasis on data gathering
and diagnosis prior to action planning and implementation, as well
as careful evaluation of results after action is taken.
• Action research is traditionally aimed both at helping specific
organizations implement planned change and at developing more
general knowledge that can be applied to other settings. Although
action research was originally developed to have this dual focus on
change and knowledge generation, it has been adapted to OD
efforts in which the major emphasis is on planned change.
8 Steps of Action Research Model
1. Problem Identification- This stage usually begins when an executive in the
organization or someone with power and influence senses that the organization
has one or more problems that might be solved with the help of an OD
practitioner.
2. Consultation with a Behavioral Science Expert- During the initial contact,
the OD practitioner and the client carefully assess each other. The practitioner
has his or her own normative, developmental theory or frame of reference and
must be conscious of those assumptions and values. Sharing them with the
client from the beginning establishes an open and collaborative atmosphere.
3. Data Gathering and Preliminary Diagnosis- This step is usually completed
by the OD practitioner, often in conjunction with organization members. It
involves gathering appropriate information and analyzing it to determine the
underlying causes of organizational problems. The four basic methods of
gathering data are interviews, process observation, questionnaires, and
organizational performance data (unfortunately, often overlooked).
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4. Feedback to a Key Client or Group- Because action research is a
collaborative activity, the diagnostic data are fed back to the client, usually in a
group or work team meeting. The feedback step, in which members are given the
information gathered by the OD practitioner, helps them determine the strengths
and weaknesses of the organization or unit under study.
5. Joint Diagnosis of the Problem- At this point, members discuss the feedback
and explore with the OD practitioner whether they want to work on identified
problems. A close interrelationship exists among data gathering, feedback, and
diagnosis because the consultant summarizes the basic data from the client
members and presents the data to them for validation and further diagnosis.
6. Joint Action Planning- Next, the OD practitioner and the client members
jointly agree on further actions to be taken. This is the beginning of the moving
process (described in Lewin’s change model), as the organization decides how
best to reach a different quasi-stationary equilibrium. At this stage, the specific
action to be taken depends on the culture, technology, and environment of the
organization; the diagnosis of the problem; and the time and expense of the
intervention.
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7. Action- This stage involves the actual change from one
organizational state to another. It may include installing new
methods and procedures, reorganizing structures and work
designs, and reinforcing new behaviors. Such actions
typically cannot be implemented immediately but require a
transition period as the organization moves from the present
to a desired future state.
8. Data Gathering After Action- Because action research
is a cyclical process, data must also be gathered after the
action has been taken to measure and determine the effects
of the action and to feed the results back to the
organization. This, in turn, may lead to re-diagnosis and
new action.
OD in global context
Introduction
• OD is now practiced in every region of the world as the
global expansion of many organizations has generated
complex and rapid growth.
• Hofstede first developed his framework when his research
on IBM employees in 40 different countries showed how
differences in national cultures impact management
practices. He and his son have continued to expand this
research and other researchers have replicated and
expanded Hofstede’s work and found support for his
dimensions of national culture.
Growth of OD in Global Settings
• The rapid development of foreign economies
• The increasing worldwide availability of technical and
financial resources
• The emergence of a global economy
Cultural Values or Dimensions
• Power Distance - Extent to which members of a society accept that status and
power are distributed unequally in an organization. Organizations in these
cultures tend to be autocratic, possess clear status differences, and have little
employee participation.
• Uncertainty Avoidance - The extent to which members of a society tolerate
the unfamiliar and unpredictable. It is the extent to which organizational
members do not tolerate unpredictability and ambiguity. Organizations in these
cultures tend to value experts, prefer clear roles, avoid conflict, and resist
change.
• Individualism -
• Masculinity/Feminity and OD - This was the only one of the original
dimensions where Hofstede (1991) found a systematic difference in the
answers between women and men. He explains that, “a society is called
masculine when emotional gender roles are clearly distinct. Men are supposed
to be tough and women are supposed to be tender. A society is called feminine
when emotional gender roles overlap: both men and women are supposed to
be modest, tender, and concerned with quality of life”.
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• Long-term and short-term orientation and OD - Long-
Term Orientation (LTO), “stands for the fostering of virtues
oriented toward future rewards – in particular,
perseverance and thrift”
• Example: China, Hong Kong, Taiwan, Japan, Vietnam and
South Korea. The Short-Term Orientation (STO) is defined
by Hofstede and Hofstede (2005) as, “the fostering of
virtues related to the past and present”
• Example: European countries fall in the mid range, and
the U.S., Britain, and other Anglo countries score on the
short-term side.
World Wide Organizations
•  Offer products or services worldwide
• Balance product and functional concerns with geographic
issues
• Coordination must address complex personnel and cross-
cultural issues
• Its competitive position in one national market is affected
by its global integration and local responsiveness.
World Wide Strategic Orientation
•  Offer products/services in more than one country
• Balance product and functional concerns with geographic
issues of distance, time, and culture
• Carry out coordinated activities across cultural boundaries
using a wide variety of personnel
Types of World Wide Strategic Orientation
1. The International – Characteristics
• Sell existing products/services to nondomestic markets
• Goals of increased foreign revenues
Implementing the International Orientation
• OD facilitates extending the existing strategy into the new market
• Cross-cultural training and strategic planning.
2. The Global Strategic Orientation – Characteristics
• Centralized with a global product structure
• Goals of efficiency through volume.
Implementing the Global Orientation
• OD supports career planning, role clarification, employee involvement,
conflict management and senior management team building to help achieve
improved operational efficiency
• OD helps the organization transition to global integration from local
responsiveness
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3. The Multinational Strategic Orientation –
Characteristics of the Multinational Design
• Operate a decentralized organization
• Goals of local responsiveness through specialization
Implementing the Multinational Orientation
• OD helps with intergroup relations, local management selection and team building
• OD facilitates management development, reward systems, and strategic
alliances.
4. Transnational Strategic Orientation –
Characteristics of the Transnational Strategic Orientation
• Tailored products
• Goals of learning and responsiveness through integrations.
Implementing the Transnational Orientation
• Extensive selection and rotation
• Acquire cultural knowledge and develop intergroup relations
• Build corporate vision
Future Trends in OD
Team working in Future
Implications of OD in Future