OD Notes

Basic aim of OD: Improve functioning of individuals, teams and affect overall improvement in the organization. To impart necessary skills and knowledge so that the organization efficiency is achieved. Consultants assist in incorporating required changes.

OD: Strategy to develop people in the organization. It aims at improving the people side of the organization by planned change. It focuses on people, relationship, policies, procedures, processes, norms, organizational structure and improving the culture of the organization. Planned change intervention can be: (1) OD and (2) Organizational transformation o OT: can occur in response to or in anticipation of major changes in the organizations environment or technology. In addition these changes are often associated with significant alterations in the firms business strategy, which, in turn, may require modifying corporate culture as well as internal structures and processes to support the new direction. Such fundamental change entails new paradigm for organizing and managing organizations. It involves qualitatively different ways of perceiving, thinking, and behaving in the organizations. It involves culture change, strategic theories, models, practices, and interventions to facilitate organizational change. It is a long term strategy intended to change beliefs, attitudes, values, and organizational structures. It is carried out to achieve organizational effectiveness and meet the challenges of changed environmental factors. Relates to organizational processes to affect planned change by establishing cultural framework based on vision, empowerment and employee well being leading to attainment of quality of work life and organizational effectiveness thus creating a learned organization. Whenever any program fails, it is generally because of the lack of management commitment. Achieving change in various organizational processes is a serious affair and it should be treated throughout. Vision is a process of visualizing in advance as to how a product or service will look and what would go into making it happen. It is related to sustained efforts on the part of all members of the organization to put in the best foot forward. It is possible by empowerment process. All the members should have self-confidence and an ability to

build a vision, develop a suitable strategy and implement the same so that the organization is transformed. OD takes place by evolving various processes. Organizational culture: Culture as (a) a pattern of basis assumptions, (b) discovered or developed by a given group, (c) as it learns to cope with its problems of external adaptation and internal integration, (d) that has worked well enough to be considered valid and, therefore (e) is to be taught t new members as the (f) correct way to perceive, think, and feel in relation to those problems. Basic assumptions relate to values, and norms of behavior, which organizations can invent, discover or develop over a period of time. These values and norms are considered to be valid overtime and therefore practiced by the members of the organization. Teams are basic bricks of an organization over which an organization is built. In the present scenario, it is necessary to scan the environment, benchmark the organization, and re-engineer various processes and systems. This is required to be undertaken on a continuous basis so that organization growth is achieved and maintained.

Profile of organization culture: Octapace is a term indicating the eight (octa) steps (pace) needed to create a functional ethos. The eight important values relevant to any organization are: (1) openness, (2) confrontation, (3) trust, (4) authenticity, (5) proactivity, (6) autonomy, (7) collaboration, and (8) experimentation. o 1. Openness: a spontaneous expression of feelings and thoughts and the sharing of these without defensiveness. Individuals should be open to criticism, aim being to correct oneself. o 2. Confrontation: confrontation can be defined as facing rather than shying away from problems. It also implies a deeper analysis of interpersonal problems. It involves taking challenge to do the work. The outcome of the confrontation can be better role clarity, improved problem solving and willingness to work under adverse conditions. o 3. Trust: maintaining confidentiality and mutual understanding. It is also reflected in a sense of assurance and that others will help when the need arises. Trust is required for smooth functioning of the organization with reduced stress and negligible conflict environment.

o 4. Authenticity: congruence between what one feels, says and does. It is reflected in owning to ones mistakes and sharing of feelings without any reservations. It reduces dissonance between members of the organization. o 5. Proactivity: taking initiative, preplanning, taking preventive actions and calculating payoffs of an alternative course of action. A person showing proactivity functions at the following three levels: Feeling: the person transcends logic and reasoning and reaches to the feeling of the other person. In the process he crosses role boundary and ensure things happen leading to empathy. Thinking: a person may transcend his immediate feelings, emotions and reasoning. He may think of future plans and visualize the things to happen, he may even give suitable directions and evolve his own concepts/theory. Action: looking at the problem, searching various alternatives and initiating a new process are the gist of action part of proactivity. Proactive individual does not fall in the trap but makes a move of his own in critical situation and puts opponent in the defensive situation. He shows a high level of maturity and displays adult-adult transactions. o 6. Autonomy: relates to wider degree of delegation. It refers to releasing power that the employees already possess. Individual enjoys freedom of action in his area of responsibility. He sets for himself the way a particular work to be undertaken and lays down priority. Autonomy promotes initiative, greater degree of acceptance of responsibility and derives greater level of job satisfaction. o 7. Collaboration: refers to working together for mutual benefits. It develops team spirit. Collaboration promotes mutual trust, timely help in terms of sharing resources, experiences, leading to higher productivity and better interpersonal/group communication and behavior in the organizations/groups. o 8. Experimentation: promoting creativity and innovation in the organizations. It uses feedback and reports to initiate corrective actions. It is a way of doing things differently away from the routine processes that springs added energy among the workers. In experimentation, the leader should promote mistakes of employees and should not snub them. He should initiate rewards liberally. nd 2 generation OD: o (a) Change is a continuous phenomenon: organizations are required to study external and internal environmental factors, identification of drawbacks, obsolescence and carryout change. The change may take place in organizational structure, work design, process and various operational systems. Change is

required to be undertaken for organizational growth. There are two basic strategies of change namely (1) fundamental change strategy and (2) incremental change strategy. o (b) organizational transformation: it refers to carrying out fundamental change in the organization. It is a commitment made by high level managerial staff to carry out modification to existing systems. It is a systems approach. Organizational culture is required to be changed to adjust to the external environment. o learning organization; an all out effort is required on the part of managers to keep its employees educated on the latest technology, systems, knowhow and processes. It is part and parcel of the OD requirement. o (d) total quality management: involves employee involvement, teamwork, decision-making, problem solving, high level involvement, adopting a work culture aimed at growth and quality of product and services. Requires total commitment, removing fear psychosis caused due to failure at lower levels, development of successful work culture and continuous improvement. o Visioning: envisages as to what the organization would look like in the future. It is related to the shape in terms of HR facilities, the growth and the needs of people it is likely to fulfill. Based on the vision, database is required to be built, leading to interpretation of information, arriving at suitable decisions and setting a course of action leading to growth. Visioning refers to looking at the organization in totality. o (f) virtual organziations: getting whole system in one room, evolving action plan and implementation. Structural changes: initiated to carry out organizational development. This includes research, use of change agent for implementation. The process involves identification of problem; courses open, selecting the best course of action and implementation. Services of OD consultant are central to implement change. Objectives of OD program: o Individual and group development. o Development of organization culture and process by constant interaction between members irrespective of levels of hierarchy. o Inculcating team spirit. o Empowerment of social side of employees. o Focus on value development. o Employee participation, problem solving and decision making at various levels. o Evaluate present systems and introduction of new systems thereby achieving total system change if required. o Transformation and achievement of competitive edge of the organization.

o Achieve organization growth by total human inputs by way of research and development, innovations, creativity and exploiting human talent. o Behavior modification and self managed team as the basic unit of an organization. OD Characteristics/Competencies: o Relies on action research o Focuses on total system change and views organization as complex social system o Hallmark of OD program- delegation of authority, empowerment, autonomy, and quality of life o OD practitioners are facilitators and collaborators. Their assistance in identification of problem areas, arriving at a solution, implementation and feedback is necessary o OD is characterized by study and development of multiethnic culture that is supportive of work ethics. People with diverse value system, culture, and interests should be able to work effectively and achieve cordial relationship with fellow employees Action Research: a spectrum of activities that focus on research, planning, theorizing, learning, and development. It describes a continuous process of research and learning in the researchers long-term relationship with a problem action researcher is a person with scientific attitude, an understanding of qualitative research principles, an understanding of the dynamics of change, and a commitment to studying problems that are relevant in real settings. It involves theorizing, experimenting, and implementing, being extremely rigorous with some steps, and very flexible with others 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 subsequent results of the action are assessed to provide further information to guide further action. 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 the action is taken. Entry (Problem Identification): During this process, the consultant assesses: a) the probability of relating with the client, b) the

motivation and values of the client, c) the clients readiness for change, d) the extent of resources available, e) potential leverage points of change. Contracting (Consultation with a behavioral science expert): the OD practitioner and the client carefully assess each other. The practitioner has his own normative, development 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. Diagnosis (data gathering and preliminary diagnosis): involves gathering appropriate information and analyzing it to determine the underlying causes of organizational problems. The four basic methods of data gathering are interviews, process observation, questionnaires, and organizational performance data. One approach to diagnosis begins with observation, proceeds to a semi structured interview, and concludes with a questionnaire to measure precisely the problems identified by the earlier steps. Feedback (feedback to a key client or group): the diagnostic data are fed to the client 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 the department under study. Defining what is relevant and useful involves consideration of privacy and ethics as well as judgment about whether the group is ready for the information or if the information would make the client overly defensive. The members discuss the feedback and explore with the OD practitioner whether they want to work on the 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. o Feedback session steps: 1. The consultant provides a summary of the data collected and some preliminary analysis. 2. There is a general discussion in which questions of clarification are raised and answered.

3. Time is devoted to interpretation. Some changes may be made in the consultants analysis and interpretation. Thus, the consultant works collaboratively with the client to arrive at a final diagnosis that accurately describes the current state of the system. Planning Change (joint action planning): joint agreement on further actions to be taken. This is the beginning of the moving process 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. Intervention (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. Examples of interventions at the individual level are: job redesign and enrichment, training and management development, changes in the quality of working life, management by objectives, and career development. Examples of interventions at the group level are: team building, the installation of autonomous work groups or quality control circles. Evaluation (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 may lead to re-diagnosis and new action. o Termination of the OD Effort: An organization has a constant need for periodic, objective diagnostic check-ups by external consultants a need that exists, incidentally, whether or not the organizations managers see it. Termination is not an applicable phase for internal OD practitioners. Although they may conclude specific programs and projects with their clients, they should not terminate the relationship. A primary role of internal

practitioners is to serve as guardians of the new culture. A primary role of internal practitioners is to serve as guardians of the new culture. They may help to regulate the social change that has become a new routine in organizational life. When OD practitioners follow the action research model, they generate new data for further diagnosis and action. The process is cyclical, and since an organization is both dynamic and naturally follows the entropic process, there is always a great deal of consultative work to be done. Phases not Steps: phases are a more appropriate term than steps for describing the flow of events in OD work. Steps imply discrete actions, while phases connote a cycle of change. Diagnosis, for example, comes early in the OD process and intervention later, but when one is collecting information from the organization for diagnostic purposes, an intervention is occurring simultaneously; when the OD practitioner begins to ask questions about the organization and its members, he is intervening. Phases are an appropriate term also because of the cyclical nature of the OD process. As the process continues, new or undisclosed data are discovered. These data affect organization members, and the members react, creating additional information for diagnosis. Further action is then planned as a consequence of the new, perhaps more refined diagnosis. OD must go beyond solving particular problems to helping members the competence needed to change and improve the organization continually. Organization members learn how to change their organization and how to refine and improve it. OD consultants learn how to facilitate complex organizational change and learning. Appreciative inquiry proposes that words and conversations determine what is important and meaningful in organizational life. This approach to change involves starting new conversations that drive new shared meanings of key goals, processes, and achievements.

Proponents of appreciative inquiry point out that most organizational conversation are focused on poor financial results or on how the organization could be better, on the gap between where the organization is and where it wants to be, and the problem it faces. It suggests that the most important change an organization can make is to begin conversations about what the organization is doing right. Appreciative inquiry helps organization members to understand and describe their organization when it is working at its best. The knowledge is then applied to creating a powerful and guiding image of what the organization could be. Considerable research on expectation effects supports this positive approach to planned change. It suggests that people tend to act in ways that make their expectations occur: a positive vision of the organizations future energizes and directs behavior to make that expectation come about. Planned change emphasizes member involvement and starts with which organization features to examine. If the focus of inquiry is real and vital to organization members, the change process itself will take on these positive attributes. The second step involves gathering data about the best of what is in the organization. A broad array of organization members is involved in developing data-gathering instruments, collecting information, and analyzing it. In the third step, members examine the data to find stories, however small, that presents a truly exciting and possible picture of the future. From those stories, members develop possibility propositions statements that bridge the organizations current best practices with ideal possibilities for future organizing. That effort redirects attention from what is to what might be. In step four, relevant stakeholders are brought together to construct a vision of the future and to devise action plans for moving in that direction. The vision becomes a statement of what should be. Finally, implementation of those plans proceeds similarly to the action and assessment phases of action research described. Members make changes, assess

the results, and make necessary adjustments, and so on as they move the organization toward the vision. MARKETING An effective organization development (OD) practitioner can . . . 1. 2. 3. 4. 5. 6. 7. Be aware of systems wanting to change Be known to those needing you Match skills with potential client profile Convey qualifications in a credible manner Quickly grasp the nature of the system Determine appropriate decision makers Determine appropriate processes

ENROLLING An effective organization development (OD) practitioner can . . . 8. Build trusting relationships 9. Present the theoretical foundations of change 10. Deal effectively with resistance 11. Help the client trust the process 12. Help the client manage emotionally charged feelings 13. Collaboratively design the change process CONTRACTING An effective organization development (OD) practitioner can . . . 14. Contract psychologically for collaboration 15. Help the client reflect on motivation 16. Clarify outcomes 17. Build realistic expectations 18. Conduct a mini-assessment 19. Identify the boundary of systems to be changed 20. Articulate an initial change process to use 21. Explicate ethical boundaries 22. Confirm commitment of resources 23. Identify critical success factors for the intervention 24. Clarify the role of consultant 25. Clarify the role of client 26. Begin to lay out an evaluation model

MINI-ASSESSMENT An effective organization development (OD) practitioner can . . . 27. Further clarify real issues 28. Be aware of how ones biases influence interaction 29. Link change effort into ongoing organizational processes 30. Identify formal power 31. Identify informal power DATA GATHERING An effective organization development (OD) practitioner can . . . 32. Determine an appropriate data collection process 33. Determine the type of data needed 34. Determine the amount of data needed 35. Utilize appropriate mix of methods to ensure efficiency 36. Utilize appropriate mix of methods to ensure objectivity 37. Utilize appropriate mix of methods to ensure validity 38. Utilize appropriate mix of data collection technology 39. Clarify boundaries for confidentiality 40. Select a process that will facilitate openness 41. Gather data to identify future states DIAGNOSIS An effective organization development (OD) practitioner can . . . 42. Gather data to identify initial first steps of transition 43. Watch for deeper issues as data is gathered 44. Suspend judgment while gather data 45. Know when enough data has been gathered 46. Suppress judgment while gathering data 47. Use statistical methods when appropriate 48. Recognize what is relevant 49. Know how data from different parts of the system impact each other 50. Communicate implications of systems theory 51. Continuously assess the issues as they surface 52. Stay focused on the purpose of the consultancy 53. Utilize a solid conceptual framework based on research FEEDBACK

An effective organization development (OD) practitioner can . . . 54. Prepare leadership for the truth 55. Involve participants so they begin to own the process 56. Synthesize the data gathered into themes 57. Create a non-threatening atmosphere 58. Facilitate complex emotional patterns PLANNING An effective organization development (OD) practitioner can . . . 59. Distill recommendations from the data 60. Focus action that generates high impact at lowest cost 61. Consider creative alternatives 62. Mentally rehearse adverse consequences 63. Mentally rehearse potential gains PARTICIPATION An effective organization development (OD) practitioner can . . . 64. Facilitate a participative decision-making process 65. Obtain direction from leadership 66. Obtain commitment from leadership 67. Co-create an implementation plan that is rooted in the data 68. Co-create an implementation plan that is concrete 69. Co-create implementation plan that is simple 70. Co-create implementation plan that is clear 71. Co-create implementation plan that logically sequences activities 72. Co-create implementation plan that is results-oriented 73. Co-create implementation plan that is measurable 74. Co-create implementation plan that is rewarded INTERVENTION An effective organization development (OD) practitioner can . . . 75. Reduce dependency upon consultant 76. Instill responsibility for follow through 77. Intervene at the right depth 78. Pay attention to the timing of activities 79. Facilitate concurrent interventions 80. Help manage impact to related systems

81. Re-design intervention or mindfully respond to new dynamics EVALUATION An effective organization development (OD) practitioner can . . . 82. Integrate research with theory and practice 83. Initiate ongoing feedback in client-consultant relationship 84. Choose appropriate evaluation methods - - that is, interviews, instruments, financial sheets - - to collect evaluation information 85. Determine level of evaluation - - such as reaction, learning, behavioral change, organizational impact, societal impact 86. Ensure evaluation method is valid 87. Ensure evaluation is reliable 88. Ensure evaluation method is practical FOLLOW-UP: An effective organization development (OD) practitioner can . . . 89. Establish method to monitor change during the intervention 90. Establish method to monitor change after the intervention 91. Use information to reinforce positive change 92. Use information to correct negative change 93. Use information to take next steps 94. Link evaluation with expected outcomes ADOPTION An effective organization development (OD) practitioner can . . . 95. Transfer change skills to internal consultant so learning is continuous 96. Maintain/increase change momentum 97. Link change process to daily life of system 98. Mobilize additional internal resources to support continued change 99. Determine the parts of the organization that warrant a special focus of attention 100. Pay attention to movement back to old behaviors 101. Move more away from project-driven change to strategy-driven change 102. Be sure customers and stakeholders are satisfied with interventions results 103. Plan renewal/reunion events SEPARATION An effective organization development (OD) practitioner can . . .

104. 105. 106. 107. 108.

Recognize when separation is desirable Process any left over relationship issues between consultant(s) and client Ensure that learning will continue Leave the client satisfied Plan for post-consultation contact

SELF-AWARENESS An effective organization development (OD) practitioner can . . . 109. Clarify personal values 110. Clarify personal boundaries 111. Manage personal biases 112. Manage personal defensiveness 113. Recognize when personal feelings have been aroused 114. Remain physically healthy while under stress 115. Resolve ethical issues with integrity 116. Avoid getting personal needs met at the expense of the client (i.e., financial, emotional, sexual, etc.) 117. Work within the limits of your capabilities 118. Perform effectively in an atmosphere of ambiguity 119. Perform effectively in the midst of chaos INTERPERSONAL An effective organization development (OD) practitioner can . . . 120. 121. 122. 123. 124. 125. 126. 127. 128. 129. OTHER An effective organization development (OD) practitioner can . . . 130. 131. Interpret cross-cultural influences in a helpful manner Handle diversity and diverse situations skillfully Develop mutually trusting relationships with others Solicit feedback from others about your impact on them Energize others Collaborate with internal/external OD professional Balance the needs of multiple relationships Listens to others Pay attention to the spontaneous and informal Consistently maintain confidentiality Interpersonally relate to others Use humor effectively

132. 133. 134. 135. 136. 137. 138. 139. 140. 141.

Communicate directions clearly to large groups Use the latest technology effectively Use the internet effectively Facilitate small group interventions (up to 70) Facilitate large group interventions (70-2,000) Apply the skills of international OD effectively Function effectively as an internal consultant Demonstrate ability to conduct transorganizational development Demonstrate ability to conduct community development Be aware of the influences of cultural dynamics on interactions with others

Prescription of Improving the Fit: o Between the individuals and the organization o Between the organization and the environment o Among organizational components such as strategy, structure and process Values, Assumptions and Beliefs in Organization Development

Definition: o Belief a proposition about how the world works that the individual accepts as true (cognitive fact for the person o Values belief about what is desirable or a good and what is undesirable or bad o Assumptions are beliefs that re regarded as so valuable as obviously correct that they are taken for granted and rarely questioned or examined Values assumptions and beliefs are all cognitive facts or propositions, with values being beliefs about good and bad, and assumptions being beliefs about good and bad, and assumptions being strongly held, relatively unexamined beliefs accepted as the truth. It provides basic foundation for behavior of the people around the world o Humanistic Values proclaims the importance of individual (respect for person, dignity, intrinsic worth, potential for growth and development) o Optimistic Values people are basically good, progress is possible for individuals, rationality, reasoning and goodwill are tools for growth o Democratic Values asserts sanctity of individuals (fair treatment of individuals, right to be heard, prevention from misuse of powers and authority by superiors as it relates to the subordinates, justice for all, fair and equitable treatment) Professional Values

o Spirit of Inquiry the hypothetical spirit being tentative checking on the validity of assumptions, and allowing for errors; and experimentation putting ideas or assumptions to the test. o Democratic Value has two elements: collaboration and conflict resolution through rational means. The learning process in sensitivity training is collaborative between participant and trainer, not a traditional authoritarian student-teacher relationship. By conflict resolution through rational means, it is meant that irrational behavior or emotion was off limits, but that there is a problem solving orientation to conflict rather than the more traditional approaches based on bargains, power plays, suppression, or compromise. It is painfully obvious that most organizations treat their most valued resources employees as if they were expendable. The all-too-frequent attitude among managers is, if our employees dont like the jobs we provide, they can find employment elsewhere, we pay them a fair wage and they receive excellent fringe benefits. In the name of efficiency and economic or top management pressure, some people in organizations may be bored, some may be discriminated against, and many may be treated unfairly or inequitably regarding their talent and performance. Optimize both human benefits and organizational effectiveness. Practitioners must have not only social skills but also political skills. They must understand the distribution of power, conflicts of interest, and value dilemmas inherent in managing external relationships and be able to manage their own role and values with respect to those dynamics. Behavior change inevitably involves some degree of manipulation and control, and at least an implicit imposition of the change agents values on the client or the person he is influencing. This places the practitioner on two horns of a dilemma: 1) any attempt to change is in itself a change and thereby a manipulation, no matter how slight, and 2) there exists no formula or method to structure a change situation so that such manipulation can be totally absent. Technical ineptness: critical to the success of any OD program is the selection of an appropriate intervention, which depends, in turn, on careful diagnosis of the organization. Selecting an intervention is closely related to the practitioners own values, skills, and abilities. Technical ineptness dilemmas also can occur when interventions do not align with the ability of the organization to implement them. Assumptions about the nature and functioning of the organizations:

o The basic building blocks of an organization are groups (teams), therefore the basic group of change are groups and not individuals. o An always relevant change goal is the reduction of inappropriate competition between parts of the organization and the development of more collaborative conditions. o Decision making in a healthy organization is located where the information sources are, rather than in a particular role or level of hierarchy. o Organizations, sub-units or organizations, and individuals continuously manage their affairs against their goals. Controls are interim measurements, not the basis of managerial strategy. o One goal of a healthy organization is to develop generally open communication, mutual trust, and confidence between and across levels. o people support what they create, people affected by a change must be allowed active participation and a sense of ownership in the planning and conduct of the change. Implications o For Individuals Most individuals believe in their personal growth. Even today, training and development, promotion to the next higher position dominates the organization philosophy. Majority of the people are desirous of making greater contributions to the organizations they are serving. Achievements of organizational goals are however, subject to limitations or environment constraints. It is for the organizations to tap the skills that are available in abundance. This leads to adopt the following organization strategy for development: Ask questions to resolve doubts Listen to superiors advice Support employees in their venture Accept challenge Leaders to encourage creativity and promote risk taking Give additional responsibility to subordinates Set high standards of quality Empower employees Initiate suitable reward system that should be compatible, if not more than the industry norms o For Groups Importance of work groups (peer group and leader)

Most people are capable of making higher contributions to the groups effectiveness Group development based on the assumptions: Invest in training and development of the group. Money and time spent on this is an investment for the organization. Leaders should also invest in development of skills and thus help create a position organizational climate. Let the team flourish, they have emotional and job satisfaction when they work in groups. Leaders should adopt team leadership style and not autocratic leadership style. Jobs should be allotted to the team and not the individual. It is not possible for one individual (leader) to perform both, the leadership and maintenance functions. It is therefore necessary for team members to assist the leader in performance of his duties. Groups should be trained in conflict management, stress management, group decision making, collaboration, and effective interpersonal communication. This will improve organizational effectiveness. Empowerment is the cornerstone of the successful organizations. Leaders should pay particular attention to the feelings of the employees. It should be understood that suppressed feeling and attitudes adversely affect problem-solving, personal growth and job satisfaction. Development of group cohesiveness. o For Organizations Create learning organization culture Adopt win-win strategy for sustained growth Create cooperative dynamics rather than competitive organizational dynamics in the organization Needs and aspirations of the employees in the organization must be met. This leads to greater participation of the employees. Organizations should adopt developmental outlook and seek opportunities in which people can experience personal and professional growth. People must be treated with due respect and considered important. Promote organizational citizenship.

Diagnosing Organizations

Task/Process Relationship o Task is something concrete, observable, and thing oriented. It can be converted into criteria, measurements, targets, and deadlines o Process refers to how. It reflects perceptions, attitudes, reasoning. Process diagnosticians ask, why arent we making progress? they dont ask when, where, and how many but why, how, and whether Diagnosis o Diagnosis is the process of understanding how the organization is currently functioning,
and it provides the information necessary to design change interventions. It generally follows from successful entry and contracting, which set the stage for successful diagnosis. They help OD practitioners and client members jointly determine organizational issues to focus on, how to collect and analyze data to understand them, and how to work together to develop action steps from the diagnosis. o Diagnosis in organization development, however, is much more collaborative than such a medical perspective implies and does not accept the implicit assumption that something is wrong with the organization. First, the values and ethical beliefs that underlie OD suggest that both organization members and change agents should be involved in discovering the determinants of current organizational effectiveness. Similarly, both should be involved actively in developing appropriate interventions and implementing them. o Diagnosis may be aimed at uncovering the causes of specific problems; be focused on understanding effective processes; or be directed at assessing the overall functioning of the organization or department to discover areas for future development. Diagnosis provides a systematic understanding of organizations so that appropriate interventions may be developed for solving problems and enhancing effectiveness. The first area comprises the various interacting sub-elements that make up the organization. These include the divisions, departments, products, and the relationships between them. The diagnosis may also include a comparison of the top middle, and lower levels of management in the organization. The second area of diagnosis concerns the organizational processes. These include communication networks, team problem-solving, decision-making, leadership and authority styles, goal-setting and planning methods, and the management of conflict and competition.

Process o Diagnosis is a cyclical process that involves data gathering, interpretations, and identification of problem areas and possible action programs. The first step is the preliminary identification of possible problem areas. These preliminary attempts often bring out symptoms as well as possible problem areas. o The second step involves gathering data based on the preliminary problem identified in the preceding step. These data are categorized, analyzed and presented to the client in a feedback session (steps 3 and 4). If it is determined that enough data are available (step 5), the client and practitioner jointly diagnose and identify likely problem areas (step 6). At this point, the clients level of motivation to work on the problems is determined (step 7). Based upon the diagnosis, the target systems are identified and the change strategy is designed (step 8). Finally (step 9), the results are monitored to determine the degree of change that has been attained versus the desired change goals. o Diagnostic Process (Performance Gap) The difference between what the organizations could do by virtue of its opportunity in its environment and what it actually does. This leads to an approach that may be termed gap analysis. In this method, data are collected on the actual state of the organization on a varying set of dimensions and also on the ideal or desired state, that is, where the organization should be. The gap, or discrepancy, between the actual state and the ideal form a basis for diagnosis and the design of interventions. The gap may be the result of ineffective performance by internal units or may emerge because of competitive changes or new innovations. A performance gap may also occur when the organization fails to adapt to changes in its external environment. Competent organizational diagnosis does not simply provide information about the system; it is also helpful in designing and introducing action alternatives for correcting possible problems. The diagnosis affirms the need for change and the benefits of possible changes in the client system. Important problems are very often hidden or obscure, whereas the more conspicuous and obvious problems are relatively unimportant. In such situations, dealing with the obvious may not be a very effective way to manage change; this underscores the importance of the diagnostic stage. A performance gap may continue for some time before it is recognized, in fact, it may never be recognized. On the other hand, the awareness of a performance gap may unfreeze the functions within the organization that are most in need of change. When

this happens, conditions are present for altering the structure and function of the organization by introducing OD interventions. A self-assessment version of gap analysis using questionnaires to gather information in four key areas: 1. The organizations strengths. 2. What can be done to take advantage of the strengths? 3. The organizations weaknesses. 4. What can be done to alleviate the weaknesses? In organizational diagnosis, the practitioner is looking for causality that is, an implication that changes in one factor (such as compensation) will cause change in another factor (productivity): a cause-effect relationship. The client is often aware of the evidence of the problem, such as declining sales, high turnover, or loss of market share the symptom of a problem. In the diagnosis phase, the practitioner tries to identify what factors are causing the problem, and therefore what needs to be changed to fix it. The process of identifying the organizations strengths and weaknesses often leads to recognition of performance gaps and to change programs. o Need for Diagnostic Models To diagnose an organization, OD practitioners and organization members need to have an idea about what information to collect and analyze. Choices about what to look for invariably depend on how organizations are perceived. Such perceptions can vary from intuitive hunches to scientific explanations of how organizations function. Conceptual frameworks that people use to understand organizations are referred to as diagnostic models. They describe the relationships among different features of the organization, its context, and its effectiveness. As a result, diagnostic models point out what areas to examine and what questions to ask in assessing how an organization is functioning. However all models represent simplifications of reality and therefore choose certain features as critical. Focusing attention on those features, often to the exclusion of others, can result in a biased diagnosis. For example, a diagnostic model that relates team effectiveness to the handling of interpersonal conflict would lead an OD parishioner to ask questions about relationships among members, decision-making processes, and conflict resolution methods. Although relevant, those questions ignore other group issues such as the composition of skills and knowledge, the complexity of the tasks performed by the group, and member interdependencies. Thus, diagnostic models must be chosen carefully to address the organizations presenting problems as well as to ensure

comprehensiveness. Potential diagnostic models are everywhere. Any collection of concepts and relationships that attempts to represent a system or explain its effectiveness can potentially qualify as a diagnostic model. Major sources of diagnostic models in OD are the thousands of articles and books that discuss, describe, and analyze how organizations function. They provide information about how and why certain organizational systems, processes, or functions are effective. The studies often concern a specific facet of organizational behavior, such as employee stress, leadership, motivation, problem solving, group dynamics, job design, and career development they also can involve the larger organization and its con text, including the environment, strategy, structure, and culture. Diagnostic models can be derived from that information by noting the dimensions or variables that are associated with organizational effectiveness. Open-Systems Model: This section introduces systems theory, a set of concepts and relationships describing the properties and behaviors of things called systems - organizations, groups, and people, for example. Systems are viewed as unitary wholes composed of parts or subsystems; the system serves to integrate the parts into a functioning unit. For example, organization systems are composed of departments such as sales, operations, and finance. The organization serves to coordinate behaviors of its departments so that they function together in service of a goal or strategy. The general diagnostic model based on systems theory that underlies most of OD is called the open -systems model. Organization as Open Systems: Systems can vary in how open they are to their outside environments. Open systems, such as organizations and people, exchange information and resources with their environments. They cannot completely control their own behavior and are influenced in part by external forces. Organizations, for example, are affected by such environmental conditions as the availability of raw material, customer demands, and government regulations. Understanding how these external forces affect the organization

can help explain some of its internal behavior. Open systems display a hierarchical ordering. Each higher level of system comprises lower-level systems: systems at the level of society comprise organizations; organizations comprise groups (departments); and groups comprise individuals. Although systems at different levels vary in many waysin size and complexity, for examplethey have a number of common characteristics by virtue of being open systems, and those properties can be applied to systems at any level. The following key properties of open systems are described below: inputs, transformations, and outputs; boundaries; feedback; equifinality; and alignment. Case Analysis Form Name: ____________________________________________ I. Problems A. Macro 1. ____________________________________________________ 2. ____________________________________________________ B. Micro 1. _____________________________________________________ 2. _____________________________________________________ II. Causes 1. _____________________________________________________ 2. _____________________________________________________ 3. _____________________________________________________ III. Systems affected 1. Structural ____________________________________________ 2. Psychosocial __________________________________________. 3. Technical ______________________________________________ 4. Managerial _____________________________________________ 5. Goals and values __________________________________________ IV. Alternatives 1. ______________________________________________________

___ 2. ______________________________________________________ ___ 3. ______________________________________________________ __ V. Recommendations 1. ______________________________________________________ ___ 2. ______________________________________________________ ____ 3. ______________________________________________________ ____ Case Solution: The Old Family Bank I. Problems A. Macro 1. The lack of loyalty to the entire bank could affect the effectiveness (and profitability) of the bank. 2. The bank may have a poor process for setting pay policies. B. Micro 1. Though the personnel in the data-processing department have a strong team, they are not loyal to the larger organization. 2. Data-processing personnel believe that management does not appreciate them, their skills, and contributions. 3. Data-processing personnel may be underpaid when compared to similar workers in other companies. II. Causes 1. The skilled workers in the data-processing department do not recognize all of the factors that may affect pay and rewards. 2. The data-processing personnel possibly has access to more company-wide information by virtue of the type of work their department does than do personnel in other departments. Consequently, they get a portion of the data without understanding how managers make decisions based upon that data. III. Systems affected

The attitude of the data-processing personnel to the bank likely affects the entire banks operations. IV. Alternatives 1. H. Day gathers more data to confirm/disprove initial diagnosis. 2. Use a diagnosis model such as force-field analysis to better understand the problem. Working through the model may bring to light ways to change the situation in the data-processing department. 3. Day checks on regional employment data to determine if data-processing personnel are being paid competitively with similar workers in other companies. Adjust pay if warranted by the data. 4. Meet with the department and explain the banks procedures and rationale for how pay levels are set. V. Recommendations All of the alternatives listed above can be undertaken by Day.

Diagnosis o Step 1: The diagnostic component represents a continuous collection of data about the organization, system, or the process. The focus of the total exercise is to diagnose the state of the system. It aims at identifying its strengths, problem areas and unrealized opportunities. Vision statements are evaluated in depth in this stage and the discrepancies between the vision, the desired future and the current situation are identified. o Step 2: Step 2 relates to correcting problems that have been identified in step 1, seize opportunities and encash on the strengths of the organization. These are called organizational development interventions. OD interventions specifically tailored to address issues that are at the individual, group,

inter-group and organizational levels. These interventions are also applied to various organizational processes or the systems so that optimum benefits are derived from them. o Step 3: Step 3 consists of fact finding. Once the OD interventions are applied to individual, group, or the department, it aims at its effectiveness. Has the problem solved? Have the opportunities resulted in desired output. If the answer is yes, then the expert moves on to apply interventions to the other problem. If the answer is no the modified interventions are applied again and the problem is resolved or the opportunities have been realized. o Step 4: As explained in step 3, once the problem is solved the diagnosis stage is over. But if the problem remains, or if the opportunities have not been properly utilized to achieve the desired results, or the strength of the organization is not fully exploited, then stage 4 continues. There may be situations when various OD interventions may not bring the desired results, then the intervention will have to be changed and the whole process will have to be repeated. In such situations step 4, 5 and even 6 may have to be implemented. The diagnosis stage appears to be simple phenomenon, but it is not so. It is very complicated exercise especially when behaviour modification is aimed at.

Analysis The objective of the diagnosis programme is to study the whole system, identify various strengths of the organization and also the weak points/areas. It is the responsibility of the change agent or the expert who has been assigned the duty of implementing the change by way of application of OD interventions so that weak areas are improved in a phased manner. OD interventions are applied in

a graduated manner taking one issue at a time and dealing with it threadbare. Improvement strategy calls for concentrating on different organizational targets in a planned sequence. For example, the programme may start at an important sub-system, move to another subsystem, and then extend to the entire organization. It may even take a reverse approach namely to take on the entire organization first and then move on to the selected sub-systems in a graduated manner. The Six-Box Model of Diagnosis o Explanation: It is the responsibility of the OD practitioners to examine each of the box in detail. There are two ways of looking at the issue. One, the formal way and the other the informal waythe things actually happen. For example, the formal reporting relationship and organization of tasks and people prescribed in the structure box may not reflect the real structural arrangements found in formal system. The practitioner needs answer to two questions: First, are the arrangements and the process called for by the formal system correct for each box? Second, are the arrangements and the processes developed by the informal system correct for each box? On examination it will be noticed, that though the correct systems and processes may have been formed by the formal system, but the employees may not strictly follow these. On the contrary, there may be informal systems and processes that may be followed by the employees, which might not have been formalized. These are the indicators that the OD practitioners are supposed to look for, for the organizational development. The formal/informal distinction, that is, whats supposed to happen versus what is really happening, is a powerful OD diagnostic tool. Purposes what business are we in?

Structure how do we divide up the work? Rewards do all needed tasks have incentives? Relationship how do we manage conflict among people with technologies? Helpful Mechanism have we adequate coordinating technologies? Leadership does someone keep the boxes in balance? Action Component of OD Interventions o OD interventions are set of structured activities in which selected organizational units engage in a sequence of tasks that will lead to organizational improvement. Interventions are planned set of actions to change situations; the organization members want to change. o The following four conditions are required to be examined for action component of OD interventions. These are as under: 1. The organization has a problem. Therefore interventions are required to fix the problem. 2. The organization feels an unrealized opportunity; something it wants to achieve beyond. These are called enabling actions that the organization wants to achieve. Therefore interventions is developed to seize the opportunity. 3. Features of the organizations are working at cross-purposes. Alignment activities interventions are developed to bring back the organization in the synchronization stage, so that all departments, systems and processes work in tune with over all organizational objectives. 4. Environment is changing very fast. The vision that was fixed may not be in line with the changed environment. New action to build the necessary structures, processes, and culture to support the new vision-interventions are developed to make the new vision a reality.

Nature of OD Interventions

o 1. Intervening in the client system refers to interposing activities so that intervention activities are done in addition to or are done instead of the normal activities. For example, carrying out brainstorming session before a meeting to find a solution to the existing problem. This is generally not done as matter of routine. o 2. OD programme unfolds according to the game plan or may emerge as the event moves on. OD programme may be applied to production department as per the game plan, but the department may not be ready to accept the change. While on the other hand, research and development department may welcome the change (emerge). Planning, executing and evaluating an OD programme is integral to organizational development. It is a powerful tool of OD practitioners hence detailed planning and action taken are powerful features of OD programme. Most of the OD interventions have two goals. One to learn and the second action aspects. For example, top managers may evolve a two-day seminar to identify problem of command and control mechanism in the organization as a matter of learning or updating skills at higher-level managerial levels. The model may later be applied to the real problems in the organization as a action plan. OD interventions focus on the real problems faced by the organization. The group as a smallest entity generally applies the interventions. Organizational development programmes depend heavily on various learning models like classical learning or social learning, etc. Action programmes in OD are closely linked with explicit goals and objectives of the

organization. It is therefore necessary, to pay attention to translating goals into observable, explicit, and measurable actions.

o Organization development is about diagnosis, action taking, goal setting, collection of data, planning and taking actions and evaluating results are important steps of OD programme. Each step in itself is an independent OD programme. Phases of OD Program Management o Warner Burke described the following phases of OD programme: 1. Entry: Entry represents the initial contact between consultant and client. It also examines the reasons that led to client selection. It further determines smooth amalgam of the client, the problem the consultant is hired to resolve, the extent opportunities have been aimed to be enchased and the smooth working relationship that should prevail. 2. Contracting: Establishing mutual expectations; reaching agreements on expenditure of time, money, resources, and energy; and generally clarifying mutual expectations. 3. Diagnosis: Identification of slot where the problem arises by way of carrying out data collection and interpreting the same. It may be related to department, system processes, and culture modification. 4. Feedback: Represents returning the analyzed information to the client system; exploration of information for understanding in relation to the problem; its application; trust between

the client and the specialist, extent the problem is being resolved and opportunities realized. 5. Planning change: Client deciding what actions to be taken; alternatives available; critical analysis of the possibilities available; action plan devised/selected from among the available alternatives and implemented. 6. Intervention: Implementation of sets of actions designed to correct the problem or seizing the opportunities. 7. Evaluation: Assessing the results of the OD programme; its success, changes in the organization structure, processes, systems, job design, and analyzing the total difference made to the organization. It also relates to the effective of the OD programme.

Managing Change o Cummings and Worley have suggested the following five areas where change is required: 1. Motivating change 2. Creating a vision 3. Developing political support 4. Managing the transition 5. Sustaining momentum. o 1. Motivating Change It is important that the leader of the organization must create readiness to change. The motivation is achieved by adopting following guidelines: Sensitise people about the pressure of change. Show deficiency between the present situation and the future. Highlight advantage of change.

 Create pains in the minds of the people in the organization that things are not working as desired by them. Involve members right from the beginning of change efforts planning and implementing change. o 2. Creating a Vision Creating vision is visualizing how the future will look. Vision must have the following ingredients: It must be realistic. It should be beneficial to the majority of people in the organization. It should be attainable. Suitable mission statement backed up by organization values and making available the inputs required for achieving change is the essence of achieving the desired vision. o 3. Developing Political Support Cumming and Worley suggest that the practitioner assess his own power. He should identify the key players whose support is required for success of implementing change. He must persuade those key players to explain to the employees that it is for their benefit. Individuals who wedge power in the organization should be associated with the change efforts. o 4. Managing the Transition This stage is most important as we are leaving behind the old ways of doing things/processes or the systems and evolving a new set. It relates to maintaining momentum of various activities till the end is achieved. Unfreezing of the present state, the transition to the new future, attainment of desired goals and refreezing the outcome. Activity Planning achieves this. It involves preparation of checklist

of various activities, sequence of events and people responsible for various activities. The total plan must serve as a road map for the change to be implemented. Commitment Planning is also important. It involves getting the support and commitment of the key players in the organization whose leadership, resources, and energy is so crucial to the success of transition. o 5. Sustaining Momentum Following actions are recommended for sustaining momentum: Regular meetings to review progress of the work done. Problem-solving. Ensuring that the resources are made available. Close interaction with the specialist/change agent/practitioner. Instituting reward system in the organization. Highlighting the gains. Reminding the employees that the change is for them and management is only an instrument to implement it. It must always be group/team effort.

8 Steps for Successful Organization Transformation: Kotters Model of Change o 1. Establish a sense of urgency. Examining market and competitive realities. Identifying and discussing crisis, potential crisis, or major opportunities. o 2. Forming a powerful guiding coalition. Assembling a group with enough power to lead the change efforts. Encouraging the group to work together as a team. o 3. Creating a vision. Create a vision to help direct the change efforts. Developing strategies for achieving the vision.

o 4. Communicating the vision. Using every vehicle possible to communicate the new vision and strategies. Teaching new behaviours by the example of the guiding coalition. o 5. Empowering others to act on the vision. Getting rid of obstacle to change. Changing systems or structures that seriously undermine the vision. Encouraging risk taking and non-traditional ideas, activities and actions. o 6. Planning for and creating short-terms wins. Planning for visible performance improvements. Creating those improvements. Recognising and rewarding employees involved in the improvements. o 7. Consolidating improvements and producing still more change. Using increased credibility to change systems, structures and policies that do not fit the vision. Hiring, prompting and developing employees who can implement the vision. Reinvigorating the process with new projects, themes, and change agents. o 8. Institutionalizing new approaches. Articulating the connections between the new behaviours and corporate success. Developing the means to ensure leadership development and succession.