Process of Organisational Development

Need for Organisational Development Process, Objectives

Table of Contents:-

Organisational Development Process

The organisational development process is a systematic, research-based series of steps that helps organisations improve their performance by changing their structures, systems, and processes.

There are different approaches to the Organisational Development process but the typical process consists of phases as shown in the figure:

Phases of Organisational Development

Step 1: Entry and Contracting

Entry and contracting begin with the initial contact between client and practitioner. They are completed when there is a contract, i.e., an agreement about the desired results for the consultation, the work that will be done to accomplish the outcomes, and the role each party will play in completing the work, the financial and other business terms of the consulting association.

Step 2: Diagnosis

Suppose executives recognise inadequacies within the organisation that OD activities can correct. In that case, it is necessary to find professional and competent people within the organisation to plan and implement organisational development – OD activities. If capable people are not available within the organisation, outside consultants’ services to help diagnose the problem and develop organisational development – OD activities are to be taken.

Step 3: Collecting and Analysing Data

Several methods, such as interviews, questionnaires, and direct observation, are used to collect the data and information for determining organisational climate and identifying behavioural problems. Data collected are analysed and reviewed by various workgroups formed to mediate disagreement or confrontation of ideas or opinions and establish priorities.

Step 4: Feedback on the Diagnosed Information

Feedback is the sparkplug for the OD change engine. It catalyzed collaborative change. The OD practitioner attempts to provide a non-defensive, non-reactive environment in which participants can take in the data, hear each other’s views about them, and move toward understanding and action.

Step 5: Designing OD Interventions

At this stage, suitable interventions are to be selected and designed. The interventions are planned activities introduced into the system to accomplish desired improvements and changes.

Step 6: Leading and Managing Change

Managing the OD programme means maximising the difference between success and failure and converting failures into success. OD programmes include principles and practices that OD practitioners apply.

In other words, it refers to all activities designed to ensure that OD interventions achieve their task/ goals. The process of maintenance is designed to achieve self-correction and self-reflection.

Hence, it becomes important to ask the following questions and find answers to them: 

1) Are the interventions timely and relevant? 

2) Are they producing the desired results? If not, what mid-course correction may be necessary?

3) Is there a continuous commitment of all concerned? 

4) What are the ramifications to the total system and what should be done about them?

Continuous feedback on these issues assists in maintaining the OD intervention.

Step 7: Evaluating and Institutionalising Organisational Development OD Interventions

Evaluation intervention provides feedback to the practitioners and organisational members about the progress and impact of an important aspect of an OD of the intervention process. Such information may suggest the need for further diagnosis and modification of the change programme or show that the intervention is successful. Evaluation processes consider both the execution success of the intended intervention and the long-term consequences it produces.

Assessing organisation development interventions involves judgments about whether an intervention has been implemented as intended and, if so, whether it has the desired results. Managers investing resources in organisational development OD efforts are increasingly held accountable for outcomes being asked to justify the expenditures regarding hard, bottom-line outcomes.

More and more, managers are asking for a strict assessment of OD interventions. They are using the results to make important resource allocation decisions about organisation development OD, such as whether to continue to support the change programme, modify or alter it, or terminate it and try something else.

Traditionally, organisational development evaluation has been discussed as occurring after the intervention. That view can be misleading, however. Decisions about the measurement of pertinent variables and the design of the evaluation process should be made early in the organisational development cycle so that evaluation choices can be integrated with intervention decisions.

Related Article:- Importance of Organisational Behaviour

Finally, successful OD interventions must be institutionalised to sustain the change and elicit similar results. It is natural that if the processes are not repeated and followed for a longer period, the impact will decrease. To avoid these problems, the organisation should undertake the institutionalisation process. The institutionalisation of OD intervention refers to intervening in a permanent process of organisational functioning.

Need for Organisational Development

It is possible to directly or indirectly identify the need for an OD study by observing one or more of the following symptoms, each of which may be an indication of an organisational problem: 

1) Lack of key organisation documents such as organisational charts, and position descriptions. 

2) Organisation resistance to change and new ideas.

3) High turnover of personnel.

4) Lack of clearly defined position duties, responsibilities, & reporting relationships.

5) Lack of a succession plan or shortage of leadership skills.

6) Requests for review by regulatory authorities/agencies. 

7) Confusion regarding management roles and accountability.

8) Lack of clearly defined organizational goals and objectives.

9) Difficulty in managing the growth of the business.

10) Addition of new product, services, or locations, or acquisition of other entities, and 

11) Low organisation performance or profitability.

Objectives of Organisational Development 

Important objectives of Organisational development OD are as follows:

1. To improve the ability of the organisation to plan and manage changes through a transparent, effective and honest process

2. To identify and allocate the organisation’s precious resources most productively. 

3. To effectively improve organisational and individual efficiency to accomplish organisational goals through planned interventions.

Related Article:- Management Development

4. To improve efficiency in the team-building process through group dynamics and better communication.

5. To develop efficient leadership styles and better decision-making processes that best suit the organisation’s changing environment.

6. To obtain the employees’ trust, cooperation and commitment by helping them effectively in skill acquisition and career development activities through the training and development process. 

7. Restructure the organisational goals, missions, and tasks judiciously and well-timed by continuously observing the developments in the external environment. 

8. Identify and resolve individual conflicts through effective conflict management. 

9. To ensure the long-term growth and health of the organisation by ensuring a better alignment between the organisational objectives and requirements, on the one hand, the employee’s career goals and aspirations and the societal requirements on the other. 

10. To achieve increased collaboration among the different units and divisions in the organisation by reducing competition among these interdependent units. 

11. To improve the job satisfaction of the employees.

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