human resources management unit 30

7/30/2019 Human Resources Management UNIT 30

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UNIT25

Organisational Development

The concept of change has already been dealt with in detail in a

separate Chapter. Organisational Development (OD) is a contemporary

approach to management of change. It seeks to change the values, beliefs,

attitudes, strategies, structures and practices to enable the organisation to

better adapt to changes in the environment.

Meaning of Organisational Development (OD)

Organisational Development is the systematic application of the

knowledge gained from behavioural science to bring about planned change.

The basic objective of ODD is to prepare the organisation to meet the

challenges of changes.

Definition of OD

A couple of definitions of OD are given below:

1. OD is a complex educational strategy to increase organisationaleffectiveness and wealth through planned intervention by a consultant

using theory and techniques of applied behavioural science Dale S.

Beach.

2. It is a complex educational strategy intended to change the beliefs,attitudes, values and structure of organisations so that they can better

adapt to new technologies , markets and challenges and the dizzying

rate of change itself Warren G. Bennis.


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It is clear from these definitions that OD aims at changing the entire

organisation so that it can face any kind of further challenges.

Characteristics of OD

The salient features of OD are given below:

1. Its primary objective is to change the nature of the entireorganisation OD brings about changes throughout the organisation

so that it can adapt itself better to meet further challenges.

2. It applies the knowledge of the behavioural sciences OD seeksto apply the knowledge of behavioural sciences like psychology,

sociology etc., to change the values, beliefs, attitudes, practices and so

on.

3. It is systems oriented It makes use of the systems approach. Theentire organisation is considered as a system and its various parts as

sub-systems. OD is a comprehensive programme that is concerned

with the interactions of the various parts of the organisation. It is

concerned with the behavioural of employees in different departments

and groups.

4. It uses Change Agents OD makes use of one or more change agentswho stimulate and co-ordinate the change within a group. Some

organisations have their own change agents while others employ

consultants from outside. Employing change agents from outside has

its own advantages. Such outside consultants will be able to work

independently and without consultants will be able to wok


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independently and without the influence of the politics in the

organisation.

5. It aims at Problem Solving OD seeks to solve the problems ratherjust discussing these. It trains the individuals to identify and solve

organisational problems. This enables the employees to learn from

their experiences. In further when such problems arise, they will be

able to solve on their own.

6. It emphasises on learning by experience When participants learnby experience, it is sure to produce better results than the

conventional lecture approach in which the individuals only hear and

talk about abstract theories and concepts. Theory, in doubt, is

important. But what is even more important is its application in a real

situation.

7. OD strategy is developed with one or more interventions ODrecognises the fact that problems may arise at the individual, group or

total organisation level. The overall OD strategy is developed with one

or more innervations, which are structured activities, deigned to help

individuals or groups improve their work effectiveness.

8. It is contingency oriented OD practitioners, usually, do notconfine to one option. They consider all the viable alternatives.

Objectives of ODThe objectives of OD may be stated as follows:

1. To increase openness of communication among the members.2. To increase the level of trust and support among employees.3. To enhance the personal enthusiasm and satisfaction levels.


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4. To increase the level of individual and group responsibility inplanning and implementation.

5. To increase commitment, self-direction and self-control.6. To encourage the confrontation regarding organisational problems

with a view to arriving at effective decisions.

7. To develop strategic solutions to problems with higher frequency.8. To improve the organisations capability to cope with change.9. To ensure proper resolution of organisational conflicts.

Assumptions in OD

The OD programme is subject to the following assumptions:

1. The employees are ambitious.2. They have greater capabilities.3. Most employees await the right opportunity to prove their mettle.4. The groups in the organisational have powerful influence on individual

behaviour.

5. Groups are vital to organisational success.6. The complex roles to be played in groups require skill development.7. The individual and organisational goals can be compatible.8. Use of excessive controls can be detrimental to the interests of the

organisation.

The OD Process

(Steps in OD)

The process of OD involves the following stages:

1. Initial diagnosis


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Data Analysis and Review

After the relevant data have been collected, the next step is to analyse

and review the same. This task will be entrusted to various work groups

formed for this purpose. During review the work groups mediate the areas of

disagreement and establish priorities for change.

Preparation of Action Plans

At this stage, the work groups prepare the necessary action to solve the

specific problems identified. Such plans also fix responsibilities on

individuals and groups.

Use of Interventions

Interventions are the structure activates designed to help individuals

and groups improve their work effectiveness. These interventions may take

different forms as stated below:

(i) Workshops(ii) Group discussions(iii) Brainstorming sessions(iv) Role-plays(v) Written exercises and so on.

Evaluation and Fellow-up

This is the last phase of the OD process. At this stage, the results of

OD programme are evaluated. Additional programmes may also be

developed to improve results in areas where the progress is not satisfactory.

The OD consultants may help the organisation in this regard.


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Managerial Grid

OD programme is all about changes. It does not contemplate change

in the attitudes, beliefs and perceptions of the employee alone. The

managers too need to have a balanced outlook towards their employees and

their work. A manager who thinks that alone is important may be poor in

human relations and on the other hand a manner who has greater concern

for his employees may not achieve much by way of work performance.

In this context, it is relevant to mention what is called Managerial

Grid an idea conceived by Robert R. Blake and Jane S. Mouton. The grid

shows on a 9-point scale the relationship between two dimensions

concern for people and concern for production.

The 1.9 managers have a greater concern for people but a lesser

concern for production. The output, as a result, is bound to be low. But

human relations are sure to be very good with such a managerial approach.

The 1.1 managers neither give importance for production nor for

employees.

The 9.1 managers attach much importance to production but ignore

employees. They are authoritative in their approach.

A more desirable balance of the two dimensions is from 5.5 to 9.9.

9.9level, of course, is the most effective approach.


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Evaluation of OD

Merits

The plus point if OD are given below:

1. OD focuses attention on the whole organisation. It prepares theorganisation to face any kind of change in further.

2. The employees are able to work with greater motivation, as the workenvironment has become conducive for work.

3.When employees work with greater motivation and commitment,there ais bound to be an increase in both production and productivity.

4.As the employees are exposed to better and newer methods of work,the quality of work is sure to improve.

5. Better work environment, better motivation and higher quality of workshould result in greater job satisfaction among employees.

6. The overall change brought about by the OD interpersonal also pavesway for improves teamwork.

7.With improvement in superior-subordinate and interpersonalrelationships, it is also possible to resolve organisational conflicts

easily.

8.As the employees have access to everything they wanted they are ableto work with their attention focused on the enterprise objective.

9. OD prepares the employees to accept change. Thus, the problem ofresistance is overcome.

10. In view of the various benefits of OD mentioned above, the rate ofabsenteeism turnover and labour turnover is bound to be low.


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Demerits

Some of the limitations of OD are:

1. OD is an elaborate process. It is, therefore, a time consuming affair.2. OD contemplates change at the entire organisational level. This it does

with the help of consultants employed fromoutside. Such a mammoth

exercise involves heavy financial commitment.

3. The changebrought about by OD may not pay rich dividends at once.The benefits of OD will become available to the organisation over a

period of time.

4. There is no guarantee that the OD programme will be a cent percentsuccess. There is also a possibility of failure.

5. It may not be possible to measure the benefits of OD programmeobjectively.

6. Even with a programmed like OD, it may not be possible to change thebeliefs, values, sentiments and attitudes of certain individuals and

groups .

human resources management unit 30

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