CIPD Organisation Development Factsheet

Revised April 2014

In this factsheet

What is organisation development?

The history of organisation development

Putting organisation development into practice

The relationship between OD and HR

CIPD viewpoint

References

Further reading

What is organisation development?

In the context of this factsheet, we define organisation development (OD) as planned and systematic
approach to enabling sustained organisation performance through the involvement of its people. Behind
this definition lies a depth of research and practice, but also confusion.
Others have described OD in the following ways1:

A planned process of change in an organisations culture through the utilisation of behavioural

science technology, research and theory. (Warner Burke)

A long-range effort to improve an organisations problem-solving capabilities and its ability to cope
with changes in its external environment with the help of external or internal behavioural-scientist
consultants, or change agents as they are sometimes called. (Wendell French)

An effort (1) planned, (2) organisation-wide, and (3) managed from the top, to (4) increase
organisation effectiveness and health through (5) planned interventions in the organisations
processes, using behavioural science knowledge. (Richard Beckhard)

A system-wide process of data collection, diagnosis, action planning, intervention, and evaluation
aimed at (1) enhancing congruence among organisational structure, process, strategy, people
and culture; (2) developing new and creative organisational solutions; and (3) developing the
organisations self-renewing capacity. It occurs through the collaboration of organisational
members working with a change agent using behavioural science theory, research and
technology. (Michael Beer)

These definitions may vary in emphasis, but there are common features:

1. OD applies to changes in the strategy, structure, and/or processes of an entire system, such as
an organisation, a single plant of a multi-plant firm, a department or work group, or individual role
or job.
2. OD is based on the application and transfer of behavioural science knowledge and practice
(such as leadership, group dynamics and work design), and is distinguished by its ability to
transfer such knowledge and skill so that the system is capable of carrying out more planned
change in the future.
3. OD is concerned with managing planned change, in a flexible manner that can be revised as
new information is gathered.
4. OD involves both the creation and the subsequent reinforcement of change by institutionalising
change.
5. OD is orientated to improving organisational effectiveness by:
o

helping members of the organisation to gain the skills and knowledge necessary to solve
problems by involving them in the change process, and

by promoting high performance including financial returns, high quality products and
services, high productivity, continuous improvement and a high quality of working life.

The challenge with many of the definitions of OD is that they may be technically correct, but do they
actually help people to understand and practice in the field of OD? This factsheet explores the history of
OD and looks at the characteristics and examples of OD in practice.

The history of organisation development

OD developed primarily in the USA out of a number of different schools of thought and practice that have
included applied behavioural sciences, sociology, systems thinking, and psychotherapy. Kurt Lewins work
on group dynamics, action research and the consultant-client dynamic form the early foundations of OD.
More recently, this has also included newer developments and catalysts such as business process reengineering, coaching, story-telling and large group interventions like team development.
This, in part, explains some of the confusion about OD. The term OD is sometimes used interchangeably
with other disciplines, such as organisational design, learning and development, and organisation
effectiveness. The job title OD consultant can therefore reference different disciplines and very different
ways of working.

Academic beginnings
American psychologists and behaviourists working in the late 1940s and 1950s found that the application
of participative methods to small groups led to attitude change, higher performance and greater
commitment. Abraham Maslow argued for the inherent potential of individuals to pursue self
actualisation, which was more likely to be achieved under conditions of openness and personal
recognition. Organisation theorists like Chris Argyris and Rensis Likert advocated organisation-wide
participation as a means of motivating individuals and hence achieving greater performance. New
theories of leadership and change also developed: for example, Douglas McGregor proposed that
different styles of leadership would result in different reactions more positive under Theory Y, which
was participatory and democratic, and more negative under Theory X, which was oppressive and
authoritarian.

Some of the early founders were heavily involved in the T-group movement, a movement resembling
group therapy and focusing on group dynamics (although the T was said to stand for training rather than
therapy). T-groups operated on the underlying premise that causality for behavioural problems lay in an
individuals perceptions, assumptions and feelings concerning events and people around the individual.
The solution could be found by altering these elements with feedback in a sensitivity group led by a
nondirective trainer.

Organisation development spreads

In the 1960s, the term organisation development came into being as an overarching umbrella to include
and embrace all of the previous thinking about the behavioural aspects of people involved in changing
and developing organisations2. OD then spread rapidly within American organisations, which were
looking for help in changing the styles of their managers to improve organisational performance. T-group
exercises, run by consultants, often on a large scale and designed to move managers towards more open
and trusting behaviour, were frequently the vehicle for this. In the UK, group-based methods of learning
and change were being used in coalmines with the involvement of the Tavistock Institute.
OD at this stage could be categorised as primarily focusing on individuals and interpersonal relations. [It]
was established as a social philosophy that emphasised a long-term orientation, the applied behavioural
sciences, external and process-oriented consultation, change managed from the top, a strong emphasis
on action research and a focus on creating change in collaboration with managers 3.
However, like the growth of many management techniques, OD gradually took on characteristics of a
fad2 and then began to be criticised for not achieving the desired outcomes. It was seen to be too
touchy-feely, and in particular to put the individual before the organisation and the informal organisation
before the formal organisation. Not all consultants practising OD were well trained, and ODs emphasis on
openness and change was seen as threatening by managers. It was questioned whether ODs emphasis
on training programmes was in itself sufficient to produce lasting changes.

Putting organisation development into practice

One of the challenges in delivering OD work is that it not just what you do, but also the mindset that is
brought to bear on the work. So what does this mean in practice? Anything that an OD practitioner does in
the organisation can be described as an intervention. Two examples of OD interventions are:

The HR team working with the Business Planning team to develop a performance management
system that properly aligns individual and organisational goals

HR Business Partners working with their IT and Finance colleagues to provide a consistent
approach to support management teams in delivering strategy.

So what makes these distinctively OD? An HR practitioner may design and implement a new performance
management system without it being an OD intervention. What is distinctive is the creating of alignment
with the work of other parts of the organisation in a planned way what can be described as a systemic
and systematic mindset. The aim of an OD intervention is to build the reflexivity and capability in the
organisation to monitor its own health and to address these without constant intervention by an OD
specialist. There is not merely a change in the way things are done but a change in behaviour and
sometimes attitude as a result of a successful OD intervention. There is a greater ability to reflect on and
respond to shifts in strategy. Successful OD practitioners are often very effective at working with
colleagues across different departments or organisational disciplines.

The relationship between OD and HR

It is the underlying characteristics of OD work that help us to see the commonality across the different
areas of OD and the link to HR.

OD work contributes to the sustained health and effectiveness of the organisation

OD work is based upon robust diagnosis that uses real data from organisational, behavioural and
psychological sources

OD work is planned and systemic in its focus, that is taking account of the whole organisation

OD practitioners help to create alignment between different activities, projects and initiatives

OD work involves groups of people in the organisation to maximise engagement, ownership and
contribution.

At CIPD, we place considerable importance on OD, seeing it as one of the ten professional areas within
our Profession Map which emphasises its importance as a HR skill.

Find out more on the Profession Map

In defining OD, and the associated skills required by an HR professional, emphasis is placed on the need
to see OD as a continuous review process and not just as a one off change intervention. HR need to
develop skills of collecting, analysing and acting on data and information and using this to provide insight
across the business.
OD activities are usually managed from board level to ensure they reach across all areas of the business
and take the organisation forward in a systematic way. There are many ways of delivering OD. HR might
take the lead or it could be a multi-disciplinary approach. It is, however, important that HR and OD work
together to develop a long term strategic view for the business where OD activities are supported and
underpinned by people management practice.
Find out more in our discussion paper HRs role in developing OD solutions to manage change.

Go to the discussion paper

CIPD viewpoint
OD is not a new discipline and has always had a focus on people but has only relatively recently become
considered as a mainstream discipline of HR. Supporters of OD argue that its strength is its ability to
transcend functional boundaries within organisations and as such it may be counter-productive to anchor
it in the HR function. However, given the increasing need for the HR profession to act as a business
partner and its role in guiding behaviours and reinforcing values, OD and its methods have a part to play
in developing HRs strategic role and its involvement in organisational change, organisational culture and
employee engagement.
OD does not replace HR but it does draw heavily on many of the processes of HR. As a people and
problem-centred activity, it draws on the people data the organisation collects to support the diagnosis of
potential issues linked to realigning to the desired change and the design of the OD intervention. To be
successful in that role, an OD practitioner needs to also have a strong grasp of strategic planning and a
good estimation of the potential of the organisations human capital and social capital to deliver value.
The distinct contribution of OD is that it aims to align to strategy within the espoused values of the
organisation. Where OD is deployed as a key organisational function, there is often the need to challenge
assumptions about the organisations various communities and the norms and values of these groups.

The practice of OD requires sophisticated people management skills and can enable HR to develop the
deep organisational insight that is required if they are to fulfill their potential in terms of ensuring the
people asset (sometimes referred as human capital) of the business are used fully and most effectively.
Effective OD requires the sponsorship and the active involvement of senior executives. Where HR and
the OD function is not operating at the strategic level, it will be more difficult for them to implement OD
interventions successfully.

References
1. CUMMINGS, T.G, and WORLEY, C.G. (2005) Organization development and change. 8th ed.
Mason, OH: South-Western Publishing.
2. GREINER, L.E. and CUMMINGS, T.G. (2005) OD: wanted more alive than dead. In:
BRADFORD, D.L. and BURKE, W.W. (eds) (2005) Reinventing organizational development. San
Francisco: Pfeiffer.
3. RUONA, W.E.A and GIBSON, S.K. (2004) The making of twenty-first century HR: an analysis of
the convergence of HRM, HRD and OD. Human Resource Management. Vol 43, No 1, Spring.
pp49-66.

Further reading
Books and reports
CANNON, J.A. and MCGEE, R. (2008) Organisational development and change. CIPD toolkit. London:
Chartered Institute of Personnel and Development.
CHEUNG-JUDGE, M-Y. and HOLBECHE, L. (2011) Organization development: a practitioner's guide for
OD and HR. London: Kogan Page.
FRANCIS, H., HOLBECHE, L. and REDDINGTON, M. (2012) People and organisational development: a
new agenda for organisational effectiveness. London: Chartered Institute of Personnel and Development.
GARROW, V. and VARNEY, S. (2011) Learning to swim, learning to fly? A career in organisational
development. Brighton: Institute for Employment Studies.
INCOMES DATA SERVICES. (2011) Organisational development. HR studies. London: IDS.
STEWART, J. and ROGERS, P. (2012) Developing people and organisations. London: Chartered Institute
of Personnel and Development.
Visit the CIPD Store to see all our priced publications currently in print.

Journal articles
DESS, G.G. and SAUERWALD, S. (2013). Creating value in organizations: the vital role of social capital.
Organizational Dynamics. Vol 43. pp1-8.
ELLIS, F. (2007) The benefits of partnership for OD and HR. Strategic HR Review. Vol 6, No 4, May/June.
pp32-35.

GARROW, V. and VARNEY, S. (2009) What does OD do? People Management. 4 June, pp28-30.
VAN NISTELROOIJ, A. and SMINIA, H. (2010) Organization development : what's actually happening?
Journal of Change Management. Vol 10, No 4, December. pp407-420.
CIPD members can use our online journals to find articles from over 300 journal titles relevant to HR.
Members and People Management subscribers can see articles on the People Management website.

This factsheet was last updated by CIPD staff.