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This essay will investigate the potential benefits and limits of Organizational Development

(OD), in addition to discussing the important topics arising during the OD diagnostic

process and OD intervention. The essay will explore the field of OD generally without

concentrating on any particular organisation.

WHAT ARE THE POTENTIAL BENEFITS AND LIMITS OF OD?

During this section the potential benefits and limitations within the field of OD will be

examined. Cummings and Worley (1999) defined OD is the application of behavioural

science knowledge to improve organisation performance and organisation functioning.

This is only one example amidst the many ever-changing definitions of OD. In 1969,

Beckhard defined OD as planned change effort involving systematic diagnosis of the total

organisation that is managed from the top to increase the organisational effectiveness and

health of the overall system. One the earliest and perhaps the most ambitious definitions

was written by Bennis in 1960, OD is a response to change, a complex educational

strategy intended to change the beliefs, attitudes, values and structure of organisations so

that they adapt to new technologies, markets and challenges and the dizzying rate of

change. There are so many diverse definitions of OD that in 2002 Egan 2002 wrote a

paper exploring over twenty-five different definitions from 1969 until 2001. These variations

of meaning of even the most fundamental aspect of OD, it’s definition, highlights one of

most important limiting factors, that OD can pose various meanings to different people,

and where there area any language differences, misunderstandings can result. In addition

by looking back at definitions of OD over the last twenty years it seems apparent that OD

is evolving, Searching the internet now for OD and the enquirer will get a blur of OD, Total

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Quality Management (TQM) and Business Process Re-Engineering (BPR), As OD is

growing it’s taking on board more new tools and techniques. Grieves (2000) states that OD

is a discipline that first emerged from the urgent requirements of the production processed

during World War II, when times needed urgent change and development. By 1974 Khan

wrote about OD, It is not a concept, at least not in the scientific sense of the word, it is not

precisely defined, it is not reducible to specific uniform, observable behaviour. So how can

an organisation make full use of OD when no one is really sure what OD is? OD is

orientated to improving organizational effectiveness, which takes two assumptions, firstly it

assumes that the organisation can solve its own problems, and secondly that the

organisation is capable of focusing its resources and attention on its key goals (Cummings

and Worley 1999). French and Bell (1999) state slightly different assumptions, which apply

more to individuals than the organisation, that most individuals want to develop to their full

potential, and that most people desire and are capable of making a greater contribution to

attaining organizational goals than most environments permit. This positive thinking about

problem solving is a key aspect of OD.

According to ASTD (2001) a successful OD process can result in effective strategic and

operational plans, team development and effectiveness, leadership development and

added value, quality, competitive products and services. Though Farrokh (1996) argues

that OD tends to emphasize the work life experience of the employee and not the

customer's experience of the product, as such it may more readily lead to happier workers

than to better products and larger market shares.

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Though diverse in nature, all OD programs have three basic components; diagnosis,

action and program management (French and Bell 1999). According to Cummings and

Worley (1999) a general framework of panned change can be seen in fig 1, which shows

the components of diagnosis, Planning and implementing change (action) and Evaluating

and Institutionalising change (program management).

FIG 1 - MODEL OF PLANNED CHANGE

The utilization of a formalised framework for the implementation of OD helps in

communication, and therefore encourages employee participation in the entire process

from diagnosing problems to selecting a solution to planning for change, and evaluating

results (DuBrow et al 1999), as well as providing a good starting point for the OD process.

OD Models have been criticized because of their generality (Huse and Cummings 1985).

Rees and Sharifi (2002) note that such generalist models highlight a rationalistic and

universal stance, which in essence undermines the human side of the organisation.

Luthans and Thompson (1987) criticise the stages of OD as excluding cognitive

processes, targeting simplistic behaviours, too mechanistic and cannot be applied to

dynamic macros issues of dynamic organizational environments. Cummings and Worley

(1999) state that OD is based on behavioural science knowledge and practice which tend

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Enteringand

ContractingDiagnosing

Planning and Implementing

Change

Evaluating and Institutionalising

Change

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to neglect the personal and social characteristics of a system, which conflicts with the

humanistic foundation of OD.

A more operational factor of OD that could limit the process from being fully effective is

that by using a predetermined process, OD consultants can easily make the mistake of

applying approaches that have worked well in the past without looking at the clients

system. This is helped further by clients asking for consultants with a successful track

record, which limits innovation (Neumann et al 1999).

OD models have also been criticized because of the lack of strong theoretical foundation

(Woodman 1989), Skinner (1974) however argued that the theoretical foundation for these

models can be found in reinforcement theory. Alternatively Neumann et al. (1999) argues

that OD was developed from the humanistic theories of the 1950s – 1970’s.

While OD efforts can be undertaken at any level within the organisation, successful OD

intervention needs to be supported by top managers (DuBrow et al 1999). Without this top-

level managerial commitment the OD process cannot be fully effective. Beckhard (1969)

states that long with the support from top-level management, problems need to be

identified by someone in a strategic position who really feels the need for change. Much of

the existing OD methodology was developed specifically for, and in response to this top-

down, autocratic, rigid rule-based organisations working in a somewhat predictable and

controlled environment. With newer organisational types emerging from chaotic and hyper-

turbulent environments with flatter hierarchical structures, an issue for OD involves the

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future viability of its core values, assumptions and ethical sensitivity (Wooten and White

1999).

Rothwell et al. (19995) emphasised that OD is long-range in perspective and not a "quick-

fix" strategy for solving short-term performance problems, Cummings and Worley (1999)

estimate that most OD processes last between one to five years from entering to

evaluating and institutionalising change. ASTD (2001) continues to say that while OD is

not an universal remedy, OD does function well as an enabler, establishing systems or

removing obstacles to increase the organisation’s potential for effectiveness and success

in achieving it’s desired outcomes. OD expands worker’s perspectives so that they can

apply new approaches to old problems, by concentrating on the work group or

organization in which these new approaches will be applied (DuBrow et al. 1999). Though

the benefits of OD are impressive, data reporting the effectiveness of OD interventions are

primarily based on published studies. Since studies of no impact are usually not published

this data may be misleading and biased (Farrokh 1996). Rothwell et al. (1995) states that

a consultant who is either external or internal to the organisation most effectively facilitates

the organisational development. The efficiency of the consultant role in aiding OD and

transformation has been an important and recurring theme within the literature (Kantler et

al, 1992). But the role of the consultant is itself changing. Evidence suggests that

discontinuous and radical organizational change is extending our notion of the consultant

role beyond the singular, full-time, mandated individual to encompass a more diverse,

multi-functional, mixed status ``cast of characters’’ who are now accommodating change

responsibilities within their existing operational, professional or technical roles. Most

organizations that employ consultants do so because they are concerned with the cultural

and structural implications of technological and strategic change wither anticipated,

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underway or completed (Neumann et al 1999). Neumann continues to state that

contemporary organizational changes can present consultants with demands for which

theory, tools and products may not have caught up. The future of OD will largely rest upon

its generative abilities to develop change technologies that work well in emerging

environments (French and Bell 1999).

WHAT ARE SOME OF THE ISSUES, WHICH YOU MIGHT ANTICIPATE EMERGING IN

AN OD DIAGNOSTIC PROCESS?

Diagnosis is the process of accessing the functioning of the organisation, department or

group, or job to discover the sources of problems and areas for improvement (Cummings

and Worley 1999). This is the second stage of the model of planned change as discussed

in part one of this essay. This diagnosis identifies strengths, opportunities and problem

areas (French and Bell 1999). Organizational Development believes organisations are

open systems (Farrokh 1996). An open system defined by Carter et al. (1998) is a system,

which interacts with an environment, where there is an exchange of energy, information or

materials across the boundary. Which mean that organisations are not stand alone they

cannot control all their own behaviour, they are affected by external influences. Fig 2 is a

diagram of the organisation as an open system taken from Cummings and Worley (1999).

When viewed as an open system, organisations can be diagnosed at three levels:

organizational level, group level and individual level. These levels can be studied

concurrently or individually.

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FIG 2 - THE ORGANISATION AS AN OPEN SYSTEM

Environment

Feedback

According to Cummings and Worley (1999) this model can be broken down as Fig 3,

which shows the inputs, outputs and transforming factors at all levels. Diagnosis need not

be for all three levels, in fact it is simply unfeasible for an individual or group of individuals

to gather and interpret data that relate to all aspects and every factor of organizational life

(Rees and Sharifi 2002). Though French and Bell (1999), argue that diagnosis represents

a continuous collection of data about the total system, its sub systems; it’s processes and

its culture.

Fig 3 also shows how the individual components of the model interacts and affects one

another and how each sub systems is dependent on others (Cummings and Worley 1999).

Beeby and Simpson (1998), suggest that while models offer a guide for diagnosis they

should be distrusted, as they may stop the diagnosis being as thorough as it needs to be.

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Inputs-Information-Energy-People

Transformations-Social Component-Technological Component

Outputs-Finished Goods-Services-Ideas

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FIG 3 - COMPREHENSIVE MODEL FOR DIAGNOSING ORGANIZATIONAL SYSTEMS

A. Organizational LevelInputs Design Components Outputs

General Environment

Industry Structure

TechnologyStructure

Measurement SystemsHR Systems

Strategy

Organizational Effectiveness

E.g. performance productivity, stakeholder satisfaction

B. Groups LevelInputs Design Components Outputs

Organisation Design

Goal ClarityTask StructureTeam BuildingGroup Norms

Group Composition

Team Effectiveness E.g. quality of work life,

performance

C. Individual LevelInputs Design Components Outputs

Organisation Design

Group DesignPersonal

characteristics

Skill varietyAutonomy

Feedback about resultsTask Significance

Task Identity

Individual Effectiveness E.g. job satisfaction, absenteeism,

personal development

This is a vital consideration as diagnostic activities are designed to provide an accurate

account of things as they really are. This accurate account is needed for two reasons,

firstly to know the state of things or “what is” within the organisation, and secondly to know

and understand the consequences of actions (French and Bell 1999). It should be noted

that according to Cummings and Worley (1999), diagnostic models may be used, but all

models represent simplifications of reality and therefore can result in a biased diagnosis.

Unlike many other diagnostic processes (e.g. medicine), there are no absolute standards

against which an organisation structure can be judged (Armstrong 1999). This human

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philosophy of OD is a defining feature, which is one of the reasons why OD takes its

principles from many different sources (Rees and Sharifi 2002). OD values tend to be very

humanistic, optimistic and democratic (French and Bell 1999). These values and ethical

beliefs that underlie OD suggest that both organisation members and change agents

should be involved in the diagnosis process (Cummings and Worley 1999). Armstrong

(1999) took this concept a stage further by stating organisations can be more effective if

they learn to diagnose their own strengths and weaknesses. One potential issue at the

diagnosis stage is that many managers involved with the OD process may not be

experiencing specific problems (Cummings and Worley 1999). So the diagnostic stage is

not only to diagnose the root for the problems, but sometimes the actual problem itself.

Managers often do not know what is wrong and need special help in diagnosing problems.

This is the job of the consultant. But the client in OD unlike many other management

consultants’ transactions owns the problems, and therefore the client should make all the

necessary decisions (Armstrong 1999). One question posed by French and Bell (1999), is

diagnosis systematically planned and structured in advance, so it follows a category

system and structured question format or is it the diagnosis more emergent – following the

data where it may lead. But what the do state is the continual diagnosis is necessary in

any planned change effort.

The operational aspect of diagnosis involves collecting data, analysing data, and feeding

back this information back to the client organisation. Cummings and Worley (1999) show

this process in fig 4.

There are many methods of collecting data including interviews, questionnaires,

observations and past history. The consultant will need to draw a balance between

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adaptive techniques and a rich source of data from such techniques as interviews, with the

convenience and large amount of data that can be collected from less personal methods

such as questionnaires

FIG 4 - THE DATA COLLECTION AND FEEDBACK CYCLE

OD consults play an active role in gathering information from members of the organisation

(Cummings and Worley 1999). So part of data collection is introducing the consultant to

the members of the organisation, to promote confidence. The main difficulty in using

employee surveys is in the situation where the employee does not trust the survey (Hartley

2001), in this case the employee may enter misleading responses, so that the survey can

be misinterpreted. The consultant using a large enough sample size can compensate this.

Cumming and Worley (1999) conclude by stating that the quality of data collected is a

critical part of the OD process. Survey research whether in OD or other disciplines does

create some problems (Kotler et al. 1999), Respondents may not know the answer to the

questions or may be unwilling to tell the consultant who they may not know.

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Planning to Collect

DataCollecting

DataAnalysing

DataFeeding

Back DataFollowing

Up

Core Activities

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One this data has been collected it needs to be analysed. Beeby and Simpson (1998)

suggest that assumptions should never be made while diagnosing as it can cause

conflicts, processes and control methodology needs to be in place to prevent this. Data

falls into two broad categories, which are quantitative (countable data) and qualitative

(subjective data). All the data collection methods mentioned earlier, both need to be

analysed differently, can obtain both sets of data. Quantitative data can easily be

analysed using statistical techniques. Qualitative data needs techniques such as force

field analysis and techniques to group the data such as content analysis into easier to

analyse formats to give a clear overall picture of the organisation. Kotler (1999) states that

the consultant should not just carry out analysing, but the organisation needs to be

involved and their expertise used as a valuable resource.

Once the data has been gathered and analysed it needs to be fed back to members within

the organisation. This data needs to be in a form that is understandable by the recipients.

This is especially critical with the feedback from quantitative data, which may be in a

statistical form. Kotler (1999) states the consultant should not overwhelm the organisation

with numbers and statistical techniques; rather the important findings should be presented

in a way that the organisation can use to make decisions. Cummings and Worley (1999)

state it in more simplistic terms simply that feedback needs to be relevant, understandable,

descriptive, verifiable, timely, limited, significant, comparative and unfinalised. Unfinalised

as this data collection model is a cycle and the information is only a pointer as to where to

go next. Effective diagnosis provides the systematic understanding of the organisation

needed to design appropriate interventions (Cummings and Worley 1999). Action plans

are developed to correct problems and seize opportunities, and maintain areas of strength

(French and Bell 1999).

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What process (i.e. implementation issues) might you anticipate emerging when

conducting an OD intervention?

The term intervention refers to a set of sequenced planned actions or events intended to

help an organisation increase its effectiveness (Cummings and Worley 1999).

Interventions can be made at any of the three levels previously discussed, organizational

level, group level and individual level, and can be generally described as being one of four

types, Human Process such as team building and conflict interventions, Techno structural

such as work deign and organizational design interventions, Human Resource

Management such as interventions concerning the management of stress and career

development, or strategic these interventions deal with how the organisation is going to

keep pace with a changing environment (Cummings and Worley 1999).

Rees and Sharifi (2002) argue that intervention techniques are embedded and stem from

the assumptions that underpin OD philosophy. According to Cummings and Worley there

are three criteria for effective interventions, the extent to which the intervention meets the

needs of the organisation, and the extent to which the intervention is based on knowledge

of intended outcomes and the extent to which it transfers change management

competence to members of the organisation. The depth of involvement in the change

process is essential to the type of intervention made in the change process (Grieves

2000). A major aspect of selecting appropriate interventions is the matter of depth of

intervention (French and Bell 1999). This depth comes from selecting sectors and domains

of issues to pay attention to (Neumann et al. 1999). Effective interventions are based on

valid information concerning the organisations functioning (Cummings and Worley 1999). If

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this is not the case there is the potential for the consultant to fall into the mistake of

applying an intervention technique that the consultant particularly likes and that has

produced good results in the past, but may not square with careful diagnosis of the

immediate situation (French and Bell 1999). Applying a ready-made product can seem

easier and more cost effective than developing a responsive and innovative style

(Neumann et al. 1999). There is very little research on the best ways of designing

interventions (Warrick 1995), but the design of the intervention will depend on the

expertise of the consultant. Being a professional consultant means moving away from

consultancy as solely an application of known methods towards active self study and the

development of new methods to address new organizational changes (Miller 1993). The

greater the consultants expertise and experience the less agonising is likely to be required

in selecting or designing appropriate intervention (French and Bell 1999). If a scientific

basis for the intervention is to be valid, the intervention must meet specific results, and

hence the second criteria of the need for knowledge. Cummings and Worley (1999) write

that few attempts have been made to examine the different OD interventions, with so little

information available, it is difficult for an OD consultant to know which methods to use.

Cummings and Worley’s (1999) third criteria involve the extent to which the intervention

helps the organisation to manage change, so that the invention is to facilitate change

rather than actually change. Which reminds the author of the old proverb “Give a man a

fish and he won't starve for a day. Teach a man how to fish and he won't starve for his

entire life”.

Intervention success depends heavily on the organisation being ready for planned change.

But change and resistance go together hand in glove. Resistance is feedback and

feedback is information (Dym 1999). Paradoxically the one constant in life is change

(ASTD 2001). Try to fundamentally change person or organisation and resistance will be

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encountered (Dym 1999). Traditionally participation is an important feature of OD,

primarily to encourage co-operation in the change process (Chapman 2002).

OD consultants must remember that any intervention at any level may affect other levels,

Organizational development can be focused at different levels, such as organizational,

tasks within the organisation and individual and groups (McKenna 2001). Due to the inter-

relationships within organisations the issues being addressed with have an affect on other

issues (Cummings and Worley 1999). There are many different tools that can be used as

part of the OD consultant’s intervention. Tools that could be used at organizational level

could be Total Quality Management (TQM) or Business Process Re-engineering (BPR).

(McKenna 2001). Zairi et al (1994) argues that there is a high failure rate of TQM

implementation in Europe, while Wastel et al (1994) suggests that likewise BPR has

achieved much less than expected. Cummings and Worley (1999) summarise that the

effectiveness of any interventions at any lever depend on four key factors which are the

organisations readiness for change, the capability of the organisation to change, the

cultural context to change and finally the capabilities of the change agent.

During this essay the benefits and limits of OD have been discussed and it was found that

a found that a fundamental limitation of OD is that there is not a single clarified definition of

OD, which can lead to confusion. In addition the related lack of clarity of OD is also

apparent by the fact it is constantly changing. There is also some disagreement between

experts as to whether OD can improve an organisations process of just equip the

organisation to improve it’s own processes. Consultants prefer to use established models

that they have used previously, to plan their OD processes, but the use of these models

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themselves can interfere with the OD process. Despite these limitations OD acts, as an

enabler to establish systems, removing obstacles and allowing the organisation to meet it’s

potential. It is assumed that to instigate an OD programme the organisation will need a

consultant, but not necessarily and external consultant. The second part of this essay

concerned the diagnostic process of OD. To diagnose a organisation it is assumed that the

organisation is an open system (there is no such thing in reality as a closed system). For

an open system there needs to be inputs, outputs and some transforming function.

Organisations can be diagnosed at organizational, group and individual levels. Not

necessarily at the same time. Diagnostic activities discover what is actually happening

within the organisation, not necessarily problems. Diagnosis entails collecting data from

within the organisation, analysing this data and feeding back this information in a format,

which is understood by all. The third and final part of this essay concerned the intervention

stage of the OD process. These are the implementation of the action plan outputted by the

diagnostic stage. Again intervention can take place at organizational, group and individual

levels. And can take the form of four categories of intervention, human process, techno

structural, human resource management and strategic. There are many tools that can be

used by the OD consultant during intervention, but for any intervention to work , the

organisation need to be ready and capable for change, and the consult needs to have the

competences to instigate that change.

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