What Is Organization Development (OD)?

Part I:

Introduction

Purpose
Organization development (OD) has recently become one of the hot topics of the HR field. Why is that? Decisionmakers are recognizing the critical importance of leaders who can energize change, involving people and unleashing their potential. This session defines OD.

Objectives
Upon completion of the session, participants will be able to:

Define organization development (OD) and explain the unique approach to managing change that it represents. Describe one important model that can help drive organization change efforts.

Organization of the Session

Part I:

Introduction

Part II:

What Is OD?

Part III:

What Model Can Help to Drive Change Efforts?

Part IV:

Conclusion

Your Experiences with Change

Lets spend a moment to frame this topic. Could I have some of you share with us some examples of change? What are some examples of changes that your organizations are experiencing? What are some examples of changes that you (personally) are facing in your job?

Part II:

What I r anizati n l m nt ( )

What Are Six Ways to Manage Change?

Coercive Persuasive Leadership change Legalistic/policy Dialectic Education/changed norms (OD)

The Coercive Approach

People will change if they are threatened with punishment--such as discipline or dismissal. That is called a coercive approach to change. However, coercion is usually a counterproductive change strategy because it creates anxiety, fear, and stress.

The Persuasive Approach

People will change when they are convinced that change is in their best interests. Advocates of persuasion as a change strategy advise managers to examine who is affected by proposed changes and then make a concerted effort to explain how those affected will benefit from the change.

The Leadership Change Approach

Another way to initiate and implement change is to appoint a new leader. Each person, of course, brings to a leadership role his or her own attitudes, values, and beliefs that undergird subsequent action. By selecting a leader whose beliefs are in line with an intended direction for change, an organization's strategic direction may be changed.

The Legalistic/ Policy Approach

Another way to initiate and implement change is to enact a law or policy and then punish people who break the law or do not comply with the policy.

The Dialectic Approach

Another way to initiate and implement change is to debate the point. Two coequal sides are formed and argue the point in front of decision-makers. The group that provides the most compelling argument is the winner.

The Education/ Changed Norms Approach (OD)

Another way to initiate and implement change is to discover a new approach through innovation, creativity, participation, and education. Norms are informal rules, and OD seeks to unfreeze old norms and create new norms. It changes culture.

Advantages and Disadvantages of the Six Approaches to Change What do you believe are the advantages and disadvantages of the six approaches to change? Recall that the approaches are: Coercive Persuasive Leadership change Legalistic/policy Dialectic Education/changed norms (OD)

How Change happens:

1. Progress. Change happens because humans want to improve their condition, and apply ingenuity and good problem-solving to create progress. The people with the best handle on the future are the optimists, though individuals have a lot of control over what will happen. Over the next 20 years, the social and economic conditions of the world will consistently get better, just as they have improved on a ever-rising linear path throughout history.

How Change happens:

2. Development. Change happens because people want to build a decent life, which naturally leads societies toward increased specialization and complexity. Individuals don't have much control over this process. The real change masters are social engineers -- mostly experts, academics and political leaders of various sorts -- who direct the pace of development. Improvement occurs when people build relationships; over the next 20 years, we will continue to see networks of expert change agents emerge to manage increasing complexity.

How Change happens:

3. Technology. Change happens because humans are motivated to solve problems, which requires the creation of new technologies, which in turn drive progress and social change. The real masters of the future are the scientists and technologists who will solve our current problems; and people participate in this change to the extent that they adopt and apply these solutions. Progress depends utterly on the amount of support we give to research and development efforts. Over the next 20 years, biotechnology and new sustainable "green" technologies will create the biggest changes in how we live.

How Change happens:

5. Markets. Change happens because people seek to acquire creature comforts -desires which push entrepreneurs and industries to innovate. Industry leaders and economists are the leading experts here, but consumers and their choices are the main change drivers. Progress depends on encouraging people to produce, trade, and consume freely. Over the next 20 years, the world will generally continue to become more consumer-driven as standards rise in less-developed countries (though there may be bumps along the way).

How Change happens:

6. Cycles. Change happens according to predictable patterns, which can be discerned by studying history. These patterns are usually seen as cycles or waves, with periods of great change alternating with periods of rest and recovery. ("History doesn't repeat itself -- but it rhymes," said Twain.) In this view, change is viewed as a natural process, with a lifecyle that includes birth, maturity, and death; and people have limited influence on how this cycle plays out. The greatest insight into these patterns belongs to historians and theorists who have studied them. Progress depends on our ability to learn from the past, and use that knowledge to surf the change waves as they come. Over the next 20 years, long-wave theories call for very large energy, technology, and political shifts.

How Change happens:

7. Conflict. Change happens when groups of people engage in a struggle to improve their lot. Those who understand change best are Marxists, union leaders, political organizers and activists, and social justice advocates. People succeed in creating change only if they're willing to fight for it, and progress occurs when we pursue our own interests to the fullest. The next 20 years will be dominated by conflicts over resources, and by smaller countries who will try to assert growing independence from the USled order.

How Change happens:

8. Power. Change happens when powerful people and groups decide to alter the status quo to further increase their power. Nobody really understands the future unless they're part of this elite; and the majority of us will have no say in their machinations. (Some Power theories argue that it's better just to let these well-connected people make the decisions anyway.) Over the next 20 years, they will continue to consolidate their control over nations and industries.

How Change happens:

9. Evolution. Change happens when the physical environment changes, and organisms adapt in response to those changes. Ecologists have the deepest understanding of change; the rest of us are co-participants, but nobody really knows what will ultimately come of our efforts. Our best chance of progress lies with our ability to understand the world around us, and find the most appropriate ways of responding to emerging issues. Over the next 20 years, we will either come to terms with our responsibility to nature, or risk extinction. Global warming, mass extinction, and the rise of virulent, drugresistant organisms are among the biggest concerns.

How Change happens:

10. Chaos, Complexity, and Criticality. These are three different theories that have all arisen in the past 40 years as our understanding of systems theory has grown. What they have in common is that they describe system behavior that appears to be non-rational and random; but becomes somewhat comprehensible when you understand the larger system at work. Nobody can really understand all the variables at work; but those who take the time to study a system and its interactions may get an upper hand -- or, at least, be prepared for the extreme behavior the system can deliver.

What Is OD?
Organization development (OD) focuses on helping groups to change. It uses an educational approach to help unleash group energy and creativity.

Key Points About OD

OD is long-range in perspective. OD should be supported by top managers. OD effects change chiefly, though not exclusively, through education. OD expands people's ideas, beliefs, and behaviors so they can apply new approaches to old problems.

Key Points About OD

OD emphasizes participation in diagnosing problems, considering possible solutions, selecting a solution, identifying change objectives for solving problems, implementing planned change, and evaluating results.

Why Is OD Useful? How do you think OD could be useful? Why do you think so?

Part III:

What ri

l an l t hange ff rt

What Is One Model That Drives OD? Introducing the Action Research Model
16. Have consultant depart 15. Ensure acceptance 1. Recognize an organizational problem

14. Evaluate results 13. Implement the action plan

2. Hire a consultant

3. Investigate the organization 12. Get agreement on an action plan 4. Collect information about the problem 11. Feed back information 10. Collect information on an action plan 5. Feed back information about the problem

9. Get agreement on a solution 8. Feed back information about the solution

6. Get agreement on the problem

7. Collect information about the solution

What Does the Action Research Model Mean in Practice?

People must know that they need to change. The model is problem-driven. The model assumes that there is a need for a change champion. The model assumes that a consultant is needed to facilitate change. What other assumptions do you feel are implied by the model?

Part IV:

Conclusion