Chapter 1

Introduction to Organisation Development

(OD)
 Lecture Outline
 1.1. What is OD?
 1.2. The Growth and Relevance of OD
 1.3. A Short History of OD
 1.3.1. Laboratory Training Background
 1.3.2. Action Research and Survey Feedback Background
 1.3.3. Participative Management Background
 1.3.4. Productivity and Quality-of-Work-Life Background
 1.3.5. Strategic Change Background
 1.4. Evolution in OD
•
 1.1. Definitions of OD
n OD is a planned process of change in an
organization’s culture through the utilization of
behavioral science technology, research, and
theory. (Warner Burke)


n Points to consider:
n Planned process of change or planned change
n Organisation culture
n Behavioral science



 1.1. Definitions of OD
n OD refers to a long-range effort to improve an
organization’s problem-solving capabilities and its ability
to cope with changes in its external environment with the
help of external or internal behavioral-scientist
consultants, or change agents, as they are sometimes
called. (Wendell French)

n Points to consider:
n Long-range effort
n Problem-solving capabilities
n Changes in an organisation’s external environment
n External and internal behavioral-scientist consultants
n Change agent
 1.1. Definitions of OD
n OD is a systemwide process of data collection,
diagnosis, action planning, intervention, and
evaluation aimed at (1) enhancing congruence among
organizational structure, process, strategy, people, and
culture; (2) developing new and creative
organizational solutions; and (3) developing the
organization’s self-renewing capacity. It occurs
through the collaboration of organizational members
working with a change agent using behavioral science
theory, research, and technology. (Michael Beer)
 What is OD?
OD is both a professional field of social action and an area of scientific inquiry. The
practice of OD covers a wide spectrum of activities, with seemingly endless variations
upon them.
nOD applies to the strategy, structure, and processes of an
First
First entire system, such as an organization, a single plant
of multiplant firm, or a department or work group.
 Wh a t is OD?
OD is both a professional field of social action and an area of scientific inquiry. The
practice of OD covers a wide spectrum of activities, with seemingly endless variations
upon them.
nOD is based on behavioral science knowledge and
First
First practice, including microconcepts such as leadership,
group dynamics, and work design; and
Second
Second macroapproaches such as strategy, organisation
design, and international relations.
 Wh a t is OD?
OD is both a professional field of social action and an area of scientific inquiry. The
practice of OD covers a wide spectrum of activities, with seemingly endless variations
upon them.
nOD is concerned with planned change. It involves
First
First planning to diagnose and solve organisational
problems, but such plans are flexible and often revised
Second
Second as new information is gathered about the progress of
the change programme.

Third
Third
 Wh a t is OD?
OD is both a professional field of social action and an area of scientific inquiry. The
practice of OD covers a wide spectrum of activities, with seemingly endless variations
upon them.
nOD involves both the creation and the subsequent
First
First reinforcement of change.

Second
Second
Third
Third
Fourth
Fourth
 Wh a t is OD?
OD is both a professional field of social action and an area of scientific inquiry. The
practice of OD covers a wide spectrum of activities, with seemingly endless variations
upon them.
nOD improves organisational effectiveness.
First
First nAn effective organisation is able to solve its own
problems and focus its attention and resources on
Second
Second achieving key goals. OD helps organisation members
gain the skills and knowledge necessary to conduct
these activities by involving them in the process.
Third
Third nAn effective organisation has both high performance
(including financial returns, quality products/services,
high productivity, & continuous change) & a high
Fourth
Fourth quality of work life. OD works on a system approach
to deal with all these.

Fifth
Fifth
 1.2. The Growth and Relevance
of OD
Organisations are changing with a rapid speed and today


OD is more relevant than before to help organisations deal

with these changes. Three major trends are responsible for
bringing change in organisations: globalisation, informationa
technology, and managerial change.
nGlobalisation is changing the markets and environments
Globalisation
Globalisation in which organisations operate.
 nNew governments, new leadership, new markets, and
new countries are emerging and creating a new global
economy.
nOrganisations need to respond to these changes in such
a way to be able to be successful. OD helps
organisation deal with such changes.
 1.2. The Growth and Relevance
of OD
Organisations are changing with a rapid speed and today


OD is more relevant than before to help organisations deal

with these changes. Three major trends are responsible for
bringing change in organisations: globalisation, informationa
technology, and managerial
nIT is change.
redefining the traditional business model by
Globalisation
Globalisation changing how work is performed, how knowledge is
 used, and how the cost of doing business is calculated.
nThe use of IT can lower costs and increase the value and
Information
Information Tech.
Tech. quality of products and services.
nMany organisations are now selling their products and
service online through the internet.
nThe introduction of telecommuting as a new form of
work.
 1.2. The Growth and Relevance
of OD
Organisations are changing with a rapid speed and today


OD is more relevant than before to help organisations deal

with these changes. Three major trends are responsible for
bringing change in organisations: globalisation, informationa
technology, and managerial change.
nManagerial innovation has responded to the
Globalisation
Globalisation globalisation and IT trends and has accelerated their
 impact on organisations.
nNew organisational forms, such as networks, strategic
Information
Information Tech.
Tech. alliances, and virtual corporations, provide
organisationswith new ways of thinking about how to
manufacture goods and deliver services.
Managerial
Managerial Change
Change
 1.3. A Short History of OD
 1.3.1. Laboratory Training Background
 1.3.2. Action Research and Survey Feedback
Background
 1.3.3. Participative Management Background
 1.3.4. Productivity and Quality-of-Work-Life
Background
 1.3.5. Strategic Change Background
•
 Current Practice
Laboratory Training

Action Research/Survey Feedback

Participative Management

Quality of Work Life

Strategic Change

1950 1960 1970 1980 1990 2000 Today

 1.3.1. Laboratory Training Background

n The National Training laboratories (NTL) development of training

groups known as sensitivity training or T-groups.
n Laboratory Training began in 1946 when Kurt Lewin and
his staff at the Research Center for Group Dynamics at
MIT were asked by the Connect Interracial Commission
and the Committee on Community Interrelations of the
American Jewish Congress for help on training
community leaders.
n A workshop was developed for the leaders to learn about
leadership and to discuss problems. At the end of each
day, the researchers discussed privately what
behaviors and group dynamics they had observed.
n The leaders asked permission to sit in on these feedback
sessions. Reluctant at first, the researchers finally
agreed. Thus the first T-group was formed in which
people reacted to information about their own
behavior.
1.3.2. Action Research and Survey Feedback
Background
n Kurt Lewin formed the Research Center for Group
Dynamics at MIT in 1945. After he died in 1947, his
staff moved to the University of Michigan to join the
Survey Research Center as part of the Institute for
Social Research. It was headed by Rensis Likert, a
pioneer in developing scientific approaches to attitude
surveys (five-point Likert scale).
n In the 1940s John Collier, Kurt Lewin, and William Whyte
discovered that research needed to be closely linked to
action if organizational members were to use it to
manage change. Action research has two results: 1)
organizational members use research on themselves to
guide action and change, while 2) researchers were
able to study the process to gain new information. Two
noted action research studies was the work of Lewin
and his students at the Hardwood Manufacturing
Company (Marrow, Bowers & Seashore, 1967) and the
1.3.3. Participative Management Background

n A belief that human relations approach represents one-

best way to manage orgs was exemplified in research
that associated Likert’s Participative Management
(System 4) style with organizational effectiveness;
n Exploitative Authoritative (System 1); Benevolent
Authoritative (System 2); Consultative (System 3);
Participative (System 4);
n Survey conducted asked members for their opinion
about present and ideal conditions on 6 organizational
features: leadership, motivation, communication,
decision, goals, and control;
n In 2nd stage, data were fed back to different work
groups within org, group members examined
discrepancy b/w their present situation and ideal;
generally using System 4 as ideal benchmark, and
 1.3.4. Productivity and Quality-of-Work-Life
Background
n This was originally developed in Europe during the 1950s
and is based on the work of Eric Trist and his
colleagues at the Tavistock Institute of Human
Relations in London.
n This approach examined both the technical and the
human sides of organizations and how they are
interrelated.
1.3.5. Strategic Change Background
1.4. Evolution in OD