Organizational Development

10 Key excerpts on "Organizational Development"

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  Armstrong's Handbook of Human Resource Management Practice

  A Guide to the Theory and Practice of People Management

  • Michael Armstrong, Stephen Taylor(Authors)
  • 2023(Publication Date)
  • Kogan Page

    (Publisher)

  21

  Organization development

  Introduction

  The purpose of organization development is to improve the ways in which an organization functions.

  In this chapter, organization development is defined and its somewhat chequered history is described, from its origins as ‘OD’ to the more focused and business-like approaches adopted today. This leads to a discussion of organization development strategy and a description of organization development programmes.

  Organization development defined

  Organization development (OD as it is often known) is an approach to improving organizational capability which is concerned with process – how things get done. As expressed by Beer (1980: 10), OD operates as ‘A system wide process of data collection, diagnosis, action planning, intervention and evaluation.’ Organization development in its traditional form was later defined by Rowlandson (1984: 90) as ‘an intervention strategy that uses group processes to focus on the whole culture of an organization in order to bring about planned change.’ More recently, the CIPD (2020: 1) defined it as a ‘planned and systematic approach to enabling sustained organization performance through the involvement of its people.’

  The nature of organization development

  Organization development in its original version was based on behavioural science concepts. It used to be the province of specialized consultants who tended to practise it as a mystery, with HR playing a supporting role if it played any role at all. But this is how the close relationship between HR and organization development was spelt out in HR Magazine (2007: 1):

  To remain competitive in today’s global marketplace, organizations must change. One of the most effective tools to promote successful change is organization development (OD). As HR increasingly focuses on building organizational learning, skills and workforce productivity, the effective use of OD to help achieve company business goals and strategies is becoming a broad HR competency as well as a key strategic HR tool. While there are variations regarding the definition of OD, the basic purpose of organization development is to increase an organization’s effectiveness through planned interventions related to the organization’s processes (often company-wide), resulting in improvements in productivity, return on investment and employee satisfaction.

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  Introduction to Industrial Psychology: Working in diverse organizations

  • Aparna Raghvan(Author)
  • 2020(Publication Date)
  • Society Publishing

    (Publisher)

  4.7.1. Factors Involved in Organizational Development (OD) Development within a company is an ongoing process that doesn’t cease. It covers various aspects of the business, some of which include the following: • Establishing key relationships with staff in the company, which leads to a dynamic and captivating workplace. • Researching and assessing systems within the business to better comprehend dysfunctions, or objectives of different structures that make up the company. • Identifying techniques for improving the efficacy of the business and its staff. • Applying strategies to improve productivity, and assessing the ongoing achievements of the approaches used and their results. 4.7.2. Advantages of Organizational Development (OD) It facilitates leaders and staff members, by creating a system of continuous improvement and configuration around certain common goals. OD allows for companies to change and acclimatize with market trends more quickly and effortlessly. Similarly, apart from providing workmates a goal to focus on, OD further improves the quality and overall speed of decision-making. In such an arrangement, any company conflicts become constructive rather than destructive. Plus leaders usually gain more control, by giving the workforce direction over the way they should do certain jobs (Cummings and Worley, 2009). 4.7.3. Action Driven Initiatives in Organizational Development (OD) By its very nature, OD is action-driven. It begins with a careful investigation of the entire organization, laying focus on its present situation and futuristic requirements, plus considers behavioral-science methods such as transactional inquiry, sensitivity coaching, and behavior modelling in achieving the necessary outcome.

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  Introduction to human resource management

  • Meyer M, Krüger-Pretorius(Authors)
  • 2018(Publication Date)
  • Van Schaik Publishers

    (Publisher)

  OD helps an organisation to change effectively so that business performance can be improved (Van Tonder & Roodt, 2008). Think of all the changes taking place in organisations today – new products, different markets, globalisation, new and amended legislation, improved methods and procedures. No matter what the nature of the change, the challenge is first of all to adapt to these changes, and second to implement change effectively. In addition, disruptive business models such as Uber pose significant demands on adapting to change in the external environment (Krige & Silber, 2016).

  When you implement a new system or procedure, you want the change to work to the benefit of the organisation and its customers. The speed and complexity of change as we get closer to a totally different 2020 workplace environment requires knowledge of change management (Bellerby, 2017; Viljoen, 2015).

  Organisation development is a planned systemic change process to improve an organisation’s efficiency and effectiveness continually by utilising diagnostic data, and designing and implementing appropriate solutions and interventions to enable the organisation to optimise its purpose and strategy in a measurable way (SABPP, 2014).

  10.2 Different levels of OD

  The rationale for the OD perspective is very simple – if an individual does not focus on the goals of the organisation, he or she will not be a good team member and his or her contribution to the achievement of the overall business objectives will be limited.

  The opposite perspective represents the ideal of OD – to ensure that individuals are satisfied and focused, and that teams function well internally and externally with other teams inside and outside the organisation. If individuals are focused, and teams are focused, the systems and culture of the organisation should support them to achieve optimum performance.

  The science and practice of OD revolve around three levels:

  1. Individual. The individual level refers to OD issues applicable to a particular person. For example, an employee’s unsafe work habits may be causing accidents in the company. Training this person in safety procedures will help the organisation to bring the accident rate down. 181
  2. Group.

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  Human Resource Management in the Sport and Leisure Industry

  • Chris Wolsey, Sue Minten, Jeffrey Abrams(Authors)
  • 2011(Publication Date)
  • Routledge

    (Publisher)

  There have been a number of studies which have examined the effectiveness of change management approaches within sport and leisure organisations but few have explicitly applied the concept of OD to sport. A key aim of this chapter will be to discuss how OD could be beneficial to sport organisations, and how this can be juxtaposed with related concepts of organisational change.

  OD is not a new concept in itself and its popularity has waxed and waned over the last half century. However, in the last decade it has flourished within UK organisations, particularly in the public and third sector; including related sport and leisure provision.

  Concept check

  Organisational development

  Organisational development relates to improving the overall efficiency, effectiveness and performance of an organisation through the involvement of people.

  A key issue with OD is its eclectic nature, which is illustrated by the range of, at times, conflicting definitions, some of which are listed below:

  a system-wide process of planned change aimed at improving overall effectiveness by way of enhanced congruence of such organisational dimensions as external environment, mission, strategy, leadership, culture, structure, information and reward system, and work policies and procedures.

  (Bradford and Burke, 2005:12)

  Organisational development is a long-term effort, led and supported by top management, to improve an organisation's visioning, empowerment, learning and problem solving processes through an ongoing, collaborative management of organisational culture – with special emphasis on the culture of intact work teams and other configu-rations – utilising the consultant-facilitator role and the theory and technology of applied behavioural science, including action research.

  (French and Bell, 1999:25–26)

  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 organisation's self-renewing capacity. It occurs through the collaboration of organisational members working with a change agent using behavioural science theory, research and technology.

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  Organizational Psychology and Organizational Behavior

  Evidence-based Lessons for Creating Sustainable Organizations

  • Steve M. Jex, Thomas W. Britt, Cynthia A. Thompson, Cynthia A Thompson(Authors)
  • 2024(Publication Date)
  • Wiley

    (Publisher)

  Porras and Robertson’s definition, though it was put forth many years ago, captures what we feel is the essence of Organizational Development, and that has received wide acceptance withing the field. Specifically, they stated that: “Organizational Development is a set of behavioral science– based theories, values, strategies, and tech- nologies aimed at planned change of the organizational work setting for the purpose of enhancing individual development and improving organizational performance, through the alteration of organizational members’ on-the-job behaviors” (p. 722). Several aspects of this definition are worth noting. First, the focus of Organizational Development is facilitating organizational changes that enhance both organizational performance and individual employee devel- opment. This distinguishes Organizational Development from organizational interven- tions that focus exclusively on enhancing either organizational performance or individual employee development. Second, Organizational Development is rooted in theories and methodologies from the behav- ioral sciences. Therefore, Organizational Development is different from approaches to organizational change, which are based solely on changes in manufacturing pro- cesses or, perhaps, information systems. Organizational Development, of course, can be used to assist in the implementation of changes in manufacturing processes or information technol since these changes may require changes in management prac- tices or the culture of an organization (e.g., Barrett et al., 2005). Finally, this definition makes it very clear that the key to organiza- tional change is changing the behavior of employees; without behavior change, there can be no organizational change.

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  21st Century Management: A Reference Handbook

  • Charles Wankel, Charles B. Wankel(Authors)
  • 2007(Publication Date)
  • SAGE Publications, Inc

    (Publisher)

  435 92 O RGANIZATION D EVELOPMENT IN THE 21 ST C ENTURY C HRISTOPHER J. R EES University of Manchester O rganization development (OD) features prominently in organizational change management theory and practice. Early forms of OD emanated from the United States approximately 50 years ago and since then OD has been widely applied in organizational settings across the world including in Asia (Rao & Vijayalakshmi, 2000), Africa (James, 2004) and Eastern Europe (Perlaki, 1994). The content of the chapter is structured as follows. The introductory sections examine the nature of OD and the philosophy that has traditionally underpinned it. Later sec-tions of the chapter pursue these themes in more depth by exploring (a) a variety of techniques that have traditionally been closely associated with OD, (b) ways in which OD has evolved over recent years, and (c) challenges that currently face those working in the field. WHAT IS OD? “Organization development” (OD) is an ambiguous phrase associated with the theory and practice of change manage-ment in organizations. For reasons explained in this chapter, OD is difficult to define. The phrase OD certainly means different things to different people. This lack of a standard definition can be particularly confusing to those who are new to the subject. However, early in this introduction, it may be helpful to highlight that, in recent years, the practice of OD has become more closely associated with disciplines such as human resource management (HRM) and human resource development (HRD). One indication of these links between OD, HRM, and HRD is that in countries such as the United States and the United Kingdom organizations regularly advertise for full-time OD practitioners in HR professional journals. At the outset, it should be noted that the origins of the phrase OD are difficult to isolate. French and Bell (1999) suggested that the term OD probably emerged simultane-ously in two or three places.

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  Leading Organizational Development and Change

  Principles and Contextual Perspectives

  • Riann Singh, Shalini Ramdeo(Authors)
  • 2020(Publication Date)
  • Palgrave Macmillan

    (Publisher)

  As organizations grow and adapt to new practices, increasing reliance on technologies, the growth of cross-generational workforces, and an increasing use of cross-functional teams, it is necessary that modern-day organizations acquire the adaptive capacity and response to meet these emerging trends. Pressures for organizational change may be external, internal, or both, which cannot be ignored. Through OD, organizations are equipped with the right tools necessary to facilitate the change process. However, the pace at which change initiatives are developed and implemented can determine success, as failure rates of planned change initiatives are relatively high. On the one hand, if an organization remains static, it will become obsolete and go out of business. However, if the planned change initiative is implemented too rapidly, then there is a greater risk of failure. Should organizations continue to engage in OD initiatives?

  OD is important for various reasons. These include:

  • Continuous development for economic gain : Organizations have an obligation to their shareholders/investors to maintain and increase profitability and share prices. For this goal to be achieved, productivity must be at a maximum. Hence, through change initiatives, organizations seek to improve internal functioning for tangible outcomes.
  • Improving organizational efficiency and effectiveness: Organizations increase shareholder value; in addition, they are complex systems with a strategic direction. There are goals and objectives at the organizational, departmental, and individual levels within the organization which should all align and evolve with the demands of the internal and external environment. Therefore, OD interventions are an integral part of this process for improving efficiency and effectiveness at the organizational level, the group level, and the individual level. Through OD, organizational operations that require change are identified. Each gap or opportunity is analysed, and an action plan is developed.
  • Assess the current state and devise interventions to promote positive change

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  Reinventing Organization Development

  New Approaches to Change in Organizations

  • David L. Bradford, W. Warner Burke, David L. Bradford, W. Warner Burke(Authors)
  • 2005(Publication Date)
  • Pfeiffer

    (Publisher)

  When OD consultants talk about where they find personal satisfaction, it is rarely about how they increased ROI, cut cycle time, or reengineered the work flow. Instead, it tends to be around personal transformation on the part The Future of OD? 211 212 REINVENTING ORGANIZATION DEVELOPMENT of the client or incidents of high self-disclosure and vulnerability in a team interaction. Developing the organization might actually be a secondary goal for most OD practitioners! • The hold of humanistic values. A common lament when OD practitioners assemble is, “Have we lost our values?” (There is no corresponding worry of “Have we lost our relevance?”) Will they be willing to objectively assess the situation and, when necessary, embrace downsizing, cost-cutting, reengineering, and the like? • Changes required in supporting systems. For the changes that we (and the other authors in this volume) have suggested, there has to be change in the role of the supporting systems. Books and arti- cles on OD must become cross-disciplinary and deal with issues of technology, strategy, and the like. OD master’s programs should modify their curriculum to be more concerned with organization change (as contrasted with the more limited organization develop- ment) and bring in other business functions now typically covered in a standard MBA program. The OD Network presently appears to be primarily concerned at its annual meeting with giving mem- bers what they want (tools, reassurance they are doing the right thing, and a chance for socioemotional bonding). Instead, will it be willing to build those sessions around what the members need (which may include confronting present complacency and lack of relevant competencies)? • The leadership void. Most fundamental change requires a strong leader who is willing to wrench the organization in a new direction. The decision to change is rarely or ever produced by a committee. Yet this is where OD gets hoisted on its own petard.

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  People and Organisational Development

  A New Agenda for Organisational Effectiveness

  • Helen Francis, Linda Holbeche, Martin Reddington(Authors)
  • 2012(Publication Date)
  • CIPD - Kogan Page

    (Publisher)

  many elements of OD have evolved into organisational routines that are nowadays taken for granted: better communications, team-building, management of inter-group relationships, change management, survey research, meeting designs, feedback and learning loops, organisational design, effective group processes, conflict resolution . . . to name but a few.

  Additionally, we can highlight the following features of OD that are critical to its role in shaping and implementing strategy:

  • OD takes a whole-system view and is therefore multi-layered, diagnosing and intervening at organisational, inter-group, group and individual levels

  • OD is concerned with understanding the present reality (both positive and negative forces, known and emergent circumstances) faced by each organisation as the starting point to explore future possibilities

  • OD brings tools, methods and approaches which enable organisations to deal with its particular issues in order to shape and implement strategy effectively

  • OD addresses the perennial organisational dilemma – how to meet individual needs and aspirations while simultaneously meeting the performance, survival and growth needs of the organisation

  • OD is not bound by formal organisational structures but works with whatever parts of the system are relevant in achieving the target outcomes.

  Figure 4.1 considers the three facets of strategic thinking mentioned at the end of the previous section on business strategy, and shows how OD plays a part in each.

  An OD approach is also founded on a specific set of values and beliefs about organisations and the people who work in them. Robbins and Judge (2009: 663) outline the values underpinning most OD efforts:

  • Respect – Individuals are perceived as being responsible, conscientious and caring. They should be treated with dignity and respect.

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  Dynamics of Organizational Change and Learning

  • Jaap Boonstra(Author)
  • 2008(Publication Date)
  • Wiley

    (Publisher)

  Nevertheless, defining success or effectiveness of change strategies is a cumbersome task. ‘Success can be realistically addressed only against self-proclaimed targets’ (Pettigrew, 2000: 248). However, the question remains: whose targets? Different stakeholders might pursue different goals, might start from different value systems, and might give different interpretations to the same facts. In practice, most Organizational Development (OD) consultants prefer cooperation to conflict, self-control over institutional control, and democratic and participative management to autocratic manage-ment (McKendall, 1993). Organization development could be seen as a value-driven approach where the changes and developments are successful when these values are realized. Organizational Behaviour (OB) bestsellers emphasize that those higher benefits will not be sustain-able if they are not grounded in respect for and development of the employees. Implicitly the OB approach starts from almost perfect goal congruence (‘the best minute I invest is the minute I invest in people . . . ’) between organization and individual and bluntly ignores the political nature of change, and the diverse or even opposed interests of the parties involved. Most economic ‘bestseller’ approaches, such as ‘e-business’, business process re-engineering, or six sigma, emphasize two stakeholders: shareholders (who will benefit from cost reduction, productivity improvement, and higher profitability) and clients (who will benefit from greater customer orientation, innovative products, and better service). Economic approaches also seem to imply a goal congruence, which is most clearly formulated in agency theory; when economically successful, the ‘principal’ will have more incentives at his/her disposal to successfully influence the agent (Jensen & Meckling, 1976; Eisenhardt, 1989; Spreitzer & Mishra, 1999). Dynamics of Organizational Change and Learning. Edited by J.J.

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