Chapter 1 General introduction to Organization Development
Organization development defined
− OD covers a wide spectrum of activities
- Team building to structural change in municipality, etc
− OD covers a broad range of topics
- Effect of change, methods of change, etc
− Organizational development: a system-wide 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
− How is organization development different from other approaches?
1. OD applies to changes in the strategy, structure and/or processes of
an entire system
a. This contrasts with approaches focusing on a few aspects of a
system
2. OD is based on the application and transfer of behavioral science
knowledge and practice, such as leadership, group dynamics,
organization design, etc.
a. This contrasts with approaches neglecting the personal and
social characteristics of the system
b. This contrast with other approaches by its focus on
transferring behavioral science knowledge and skill so that it
is capable of carrying out planned change in the future
3. OD is concerned with managing planned change, not by comprising
a programmatic and expert-driven approach but as an adaptive
process for planning and implementing change instead of a
blueprint for how things should be done.
a. OD involves planning to diagnose and solve organizational
problems, but such plans are flexible and often revised as new
information is gathered as the change process progresses
4. OD involves the design, implementation and subsequent
reinforcement of change
a. It contrasts other approaches by also addressing how a
change is sustained over time
5. OD is oriented to improve organization effectiveness
a. Effectiveness in..
1. Being able to solve its own problems and to continually
improve itself
− By involving members in the change process
2. Excel in financial and technical performance
, − By leveraging social science practices to lower
costs, improve products and services and increase
productivity
3. Having an attracting an engaged, satisfied and learning
workforce and satisfied customers/stakeholders
- Organization development is different from change management and organization
change
- Similarities OD and change management
- Address effective implementation of change
- Concerned with the sequence of activities, the processes and
leadership that produce organization improvement
- Differences OD and change management
- OD focuses also on value of human potential, participation,
development in addition to performance and competitive advantage,
thereby contributing to change in the future
- Differences OD and organization change
- Organization change is more broadly focused and can apply to any
kind of change, including technical and managerial innovations, etc,
whereas OD is primarily concerned with managing change in such a way
that knowledge and skills are transferred to build the organization’s
capability to achieve goals and solve problems by building on problem
solving, responsiveness and effectiveness
The growth and relevance of organization development
− Three major trends are shaping change in organizations:
1. Globalization,
2. Information technology
3. Managerial innovation
− Globalization
- Is about becoming more interconnected economically, socially,
ecologically
- Changes markets and environments in which organizations operate and
it changes how they function
- Increased possibilities (more sources) and increased risks (economic
recession, varying oil prices, higher contribution to climate change)
− Information technology
- Is about changes in how the work is performed, how knowledge is used,
how the cost of doing business is calculated, how power is divided
− Managerial innovation
- Responds to globalization and information technology and accelerate
their impact on organizations
, - For example new organizational forms, such as networks, strategic
alliances, virtual corporations → delivers new ways of thinking about
how to manufacture goods and deliver services
- 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 streamlined and agile,
more responsive to external demands, and more ecologically and
socially sustainable.
- Organizations 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.
− OD: important for who?
- Those who plan a professional career in the field
- Those who have no aspirations to become professional practitioners
- For managers and staff personnel to perform their tasks more
effectively
A short history of organization development
Labaratory background
− Pioneered laboratory training, or the T-group—a small, unstructured group in
which participants learn from their own interactions and evolving group
processes about such issues as interpersonal relations, personal growth,
leadership, and group dynamics
− 2 conclusions about the first T-group experiment
1. Feedback about group interaction was a rich learning experience
, 2. Process of “group building” had potential for learning that could be
transferred to “back-home” situations
− Applications of T-group methods at companies spawned (= droeg bij aan) the
term “organization development” and led corporate personnel and industrial
relations specialists to expand their roles to offer internal consulting services to
managers
− 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 and satisfying member needs
- Team building is one of the most common OD interventions today
Action research and survey-feedback background
− A collaborative effort was initiated between organization members and social
scientists to collect research data about an organization’s functioning, to
analyze it for causes of problems, and to devise and implement solutions. After
implementation, further data were collected to assess the results, and the cycle
of data collection and action often continued.
− The results of action research were twofold: Members of organizations were
able to use research on themselves to guide action and change, and social
scientists were able to study that process to derive new knowledge that could
be used elsewhere
− To overcome resistance of change, participative management was developed
as a means of getting employees involved in planning and managing change
− Introduction of the use of surveys for feedback
Normative background
− The belief that a human relations approach represented a “one best way” to
manage organizations
- Normative approach as exemplified in
▪ Likert’s Participative Management Program
▪ Blake and Mouton’s Grid Organization Development
approaches to organization improvement
− Likert’s participative management program includes four types of
management systems:
1. Exploitive authoritative systems (System 1)
a. Autocratic, top-down approach to leadership
b. Employee motivation is based on punishment and occasional
rewards
c. Communication is primarily downward, and there is little
lateral interaction or teamwork
d. Decision making and control reside primarily at the top of the
organization
e. Results in mediocre performance
