Organization Development

& Analysis
(OD & A)

Various Meanings of
Organization
1

The
act
of
designing
administrative structure

an

The process of organizing or

arranging
resources
(like
man,
material, capital, etc.) to do some
tasks and accomplish objectives.

What is an Organization?
Basically, an organization is a
group of people intentionally
working together to accomplish an
overall, common goal or set of
goals. An organization can range in
size from two people to tens of
thousands.

Types of Organizations

- Formal and informal organizations

- Public and private organizations

Entrepreneur
An entrepreneur is a person who
recognizes opportunities to satisfy
needs, takes risks in anticipation of
returns, collects and organizes
resources to meet those needs.

Bases of Organization

People
Functions
Processes
Clientele or persons served
Products
Overall environment

Organizations Input
Organization obtains inputs
from its environment like:
Raw materials
Money and capital
Human resources
Information and knowledge

Organizations
Environment
Sales of outputs allow
organization to obtain new
supplies of inputs from:

Organizations
Conversion Process
Organization transforms inputs
and adds value to them
through:
Machinery
Computers
Human skills and abilities

Organizations Output
Organization releases outputs to
its environment including:
Finished goods

Customers

Services

Shareholders

Dividends

Suppliers

Salaries

Distributors
Government
Competitors

Taxes
Value for stakeholders

Increase specialization and

the division of labor
(for enhanced quality & productivity)

Invent, innovate, & use

large-scale technology
The use of an
organization allows
people jointly to
accomplish various
objectives and:

Manage the external

environment

Economize on
transaction costs

Exert power and

control (through reward
& punishment system)

Which increases
the value that an
Organization
can create

Economies of Scale & Scope

Economies of Scale. Cost savings that
result when goods and services are
produced in large volumes on automated
production lines.
Economies of Scope. Cost savings that
result when a product line is extended

What is Organization
Theory?

Organizational Theory
The study of how organizations function and how they affect and
are affected by people and by the society in which they operate.

Organizational
Structure
The formal system of
rules, tasks, and
authority relationships
that control how people
are to cooperate and use
resources to achieve the
organizations goals.

Organizational
Design
The process by which
managers select and
manage various
dimensions and components of organizational
structure and culture so
that an organization can
control the activities
necessary to achieve its
goals.

Organizational
Culture
The set of shared
values that control
organizational members
interactions with each
other and with people
outside the organization.

Organizational Life Cycle

Development

What is development?

Development is a process of
positive
change.

Development in its simplest form

suggests change and growth.

Then What is OD?

Definition
OD is "the practice of changing people and organizations for
positive growth.

Organization Development is a system wide application of

behavioral science knowledge to the planned development
and reinforcement of organizational strategies, structures and
processes for improving an organizations effectiveness.

Cummings and Worley, 1996

Why to manage OD?

- To meet the demand of organizational
change, and
- to make the organization productive,
efficient, and effective in the short run as
well as long run.

What OD Does?

What OD Does?

OD focuses on organization structure, culture, and

processes.

OD encourages collaboration between organization

leaders and members in managing culture and
processes.

Employee participation and involvement in problem

solving and decision making at all levels of the
organization are its hallmarks.

OD focuses on the human and social side of the

organization and intervenes in the structural,
technological, environmental, strategic, and change
management systems.

Functions of OD

OD focuses on total system change and views

organizations as complex social systems.

OD practitioners are facilitators, collaborators,

and co-learners within an organization.

ODs goal is overarching to make the organization

able to solve its problems on its own by teaching
self-analytical methods.

OD relies on an action research model with

extreme participation by organizational members.

OD takes a development view that seeks the

betterment
of
both
individuals
and
the
organization.

Why OD is important?

Why OD is important?

The change stays for nothing, means an

organization keeps changing anyway, whether
negatively or positively.

Ideally, no body likes negative changes in their

organization.
Therefore Organizational Development is a must

because it ensures positive change in organizations.

INDUCEMENT & CONTRIBUTION OF

ORGANIZATIONAL STAKEHOLDERS
Contribution to the
Organization

Inducement to Contribute

Shareholders

Money and capital

Dividends and stock appreciation

Managers

Skills and expertise

Salaries, bonuses, status, and power

Work force

Skills and expertise

Wages, bonuses, stable employment and

promotion

Customers

Revenue from purchase of goods and

services

Quality and price of goods and services

Suppliers

High-quality inputs

Revenue from purchase of inputs

Government

Rules governing good business practice

Fair and free competition, and taxes

Unions

Free and fair collective bargaining

Equitable share of inducements

Community

Social and economic infrastructure

Employment and revenue

General
Public

Customer loyalty and reputation

National pride

Stakeholder
INSIDE

OUTSIDE