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CHAPTER 1

Prof. Shirufi Daruwala

CHALLENGE FOR ORGANIZATION

Tomorrow's world will be different from today.


Everyday managers confront massive and accelerating change.

Prof. Shirufi Daruwala

Problems in today's organization

Global competition Economic downturns Overstaffed Cost cutting Increase productivity Competition

Prof. Shirufi Daruwala

THE ORGANIZATION ENVIRONMENT

GOVERNMENT

CUSTORMER ORGANIZAITON

STOCKHOLDERS

SUPPLIERS

UNIONS

COMPETITIORS

Prof. Shirufi Daruwala

WHAT IS ORGANIZATION DEVELOPMENT?

1. 2. 3. 4. 5.

RICHARD BECKHARD: Organization development is


an effort planned

organization wide
Managed from top To increase effectiveness and health, through

Planned interventions in the organizations processes


using behavioral science knowledge.

Prof. Shirufi Daruwala

OD DOES NOT INCLUDES



OD is not a micro approach to change OD is more than any single technique. I.e TQM, job enrichment, etc OD does not include random changes. OD is aimed at more than raising morale or attitudes.

Prof. Shirufi Daruwala

Chester Barnard and Chris Argyris : organization is one in which both the organization an the individual can grow and develop.

There is need of systematic approach in order to accomplish their


primary goals also.

Prof. Shirufi Daruwala

Major characteristics of the field of OD


Characteristics Focal Areas

1. 2. 3.
4. 5. 6.

Change Collaborative approach Performance orientation Humanistic approach Systems approach Scientific method

1.
2. 3. 4. 5. 6.

Change is planned by managers to achieve goals. Involves collaborative approach and involvement. Enhance performance. Increase human potential Relationship among division, dept., groups and individuals. Scientific approach and practical experience.
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Prof. Shirufi Daruwala

Change Leader

Is a person in an organization responsible for changing existing patterns to obtain more effective organization performance.

Prof. Shirufi Daruwala

Why OD?

1. 2. 3.

Level of competition Survival Improved performance

Prof. Shirufi Daruwala

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Major goals of large scale change programs

1. 2. 3. 4. 5. 6.

Increase productivity Increase responsiveness to clients Improve competitive positioning Increase employee involvement and participation Increase employee morale Develop new managerial skills and strategies

Prof. Shirufi Daruwala

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Who does the OD?

OD specialist / OD consultant/ OD Practitioner: They are the professionals that have specialized and trained in OD.

2 types 1. Internal practitioners 2. external practitioners Manager or leader

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The organization culture

Culture refers to a specific civilization, society, or group and its distinguishing characteristics B.F. Skinner : a culture is not the behavior of the people living in it but it is the it in which they live.

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Norms

Are organized and shared ideas regarding what members should do and feel.

Helps in understanding organization culture 2 types 1. Pivot norms: norms essential to accomplish organizations
objective.

2.

Peripheral norms: norms which are non essential and support pivot norms.

Prof. Shirufi Daruwala

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The socialization Process

It can be define as a process that adapts employees to the organizations culture.

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The socialization Process

New employee expectation

Encounters org. culture

Adjustment to cultural norms

Results 1. Performance 2. Commitment 3. Obtion goals

Prof. Shirufi Daruwala

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Basic Responses to Socialization

Rebellion

Creative individualism

Conformity

Rejection of All values and norms

Acceptance of all values And norms

Acceptance only of Pivot values Rejection of all others

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Psychological Contracts

Defined by unwritten agreement between individual and


organization. Each has its own expectation. Both should understand each other expectation and psychology. Individual needs work experience, security, advancement and monetary gain. If not satisfied than friction and difficulty may

develop.
Same applies to organization expectation.

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Organization Developments Five Stages


Stage 1 Anticipate need for change

Stage 5 Self renewal, monitor, and stabilize

Stage 2 Develop the Practitioner client relationship

Stage 4 Action plans, Strategies And Techniques


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Stage 3 The Diagnostic Phase


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