Development Planning and Administration MPA – 403 Lecture 20

2. Development Planning and Administration MPA – 403 Lecture 20 • FACILITATOR • Prof. Dr. Mohammad Majid Mahmood Bagram

3. Reflections

4. Organization Development

5. History Kurt Lewin (1898 - 1947) is widely recognized as the founding father of OD, although he died before the concept became current in the mid-1950s. From Lewin came the ideas of group dynamics, and action research which strengthen the basic OD process

6. Currently • Nowadays the Journal of Applied Behavioral Sciences is seen as the leading OD journal. • OD is taught in many institutions worldwide, with no one legitimately able to claim to be the center of OD training. • Leading OD training institutions include: • University of Southern California, USA • Sheffield Hallam University, UK • University of Monterrey, Mexico & • Assumption University of Thailand.

7. At the core of OD is the concept of an organization, defined as two or more people working together toward one or more shared goals.

8. Why Do Organizations Exist? • To satisfy human needs and wants • Economies of scale: cost savings that result when goods and services are produced in large volume • Economies of scope: cost savings that result when an organization is able to use underutilized resources more effectively

9. How Does an Organization Create Value? • Human Resources • Financial Resources • Physical Resources • Information Resources • Planning • Organizing • Leading • Controlling • Finished Goods • Services • Salaries • Value for Stakeholders • Customers • Shareholders • Suppliers • Distributors • Government

10. OD is a long range effort to: • improve organization's problem solving, • particularly through more effective and collaborative management of organization culture with specific emphasis on the culture of formal work teams • with the assistance of a change agent and the use of “Action Research”

11. Warren Bennis Definition of OD Organization development is a complex strategy intended to change the beliefs, attitudes, values, and structure of organizations so that they can better adapt to new technologies, markets, and challenges.

12. Warner Burke’s Definition of OD OD is not just "anything done to better an organization"; it is a particular kind of change process designed to bring about a particular kind of end result.

13. Beckhard’s Definition of OD OD is an effort: planned, organization-wide, and managed from the top, to increase organization effectiveness through planned interventions in the organization.

14. OD as a Change Strategy • OD is any strategy, method, or technique for making organizations more effective by bringing about constructive, planned change. • In its ideal form, OD attempts to change the culture toward being more democratic and humanistic.

15. OD Process Model According to this generic OD model, the OD professional and staff members are involved in bringing about constructive change. The model comprises eight steps:

16. OD Process Model Step 1: Broad problem identification. Step 2: Managerial commitment to change. Step 3: Data collection and analysis. Step 4: Data feedback. (The data collected in Step 3 are shared with the manager.)

17. OD Process Model Step 5: Identification of specific problem area(s). Step 6: Development of change strategies. (Identify root problems and develop action steps.) Step 7: Initiation of behavior. (An action step is implemented.) Step 8: Evaluation. (Have behavior and work results improved?)

18. The Organization Development Practitioner

19. The Organization Development Practitioner • External Change Agents • Internal Change Agents (e.g. TQM managers, IT managers, Compensation & Benefits managers)

20. Competencies of an OD Practitioner • Intrapersonal skills • Self-awareness • Interpersonal skills • Ability to work with others and groups • General consultation skills • Ability to apply skills and knowledge • Organization development theory • Knowledge of change processes

21. Client vs. Change Agent Knowledge Plans Implementation Recommendations Feedback data Data collection Data interpretation Listens and reflects Use of Change Agent’s Knowledge & Experience Use of Change Agent’s Knowledge & Experience

22. The term "Organization Development" is often used interchangeably with “Organizational Effectiveness”

23. Approaches to Measuring Effectiveness Goals

24. Six Sigma as Organizational Development • Six Sigma • Is a data-driven statistically-based method for achieving near-perfect quality with an emphasis on preventing problems from occurring in the process . • Features: • Emphasizes motivating people to work together to achieve higher levels of productivity. • Is a fusion of technical and social systems for creating a culture of quality.

25. Action Research • A strategy for generating and acquiring knowledge that managers can use to define an organization’s desired future state • Techniques of action research help managers un­freeze, make changes to, and refreeze the organization.

26. Steps in Action Research

27. Steps in Action Research - Continued • Step # 1:Diagnosis of the Organization • A problem is recognized because of a gap between desired and actual performance. • Step # 2:Determining the Desired Future State • Managers identifies where should the organization be. • Step # 3:Implementing Action • A strategy is selected that effectively unfreezes, changes, and refreezes the organization. Strategies involve: top-down change or bottom-up change. • External change agents • Internal change agents

28. Lewin’s Change Model Unfreezing Movement Refreezing Many OD techniques help managers unfreeze, change, and refreeze attitudes and behaviors

29. Steps in Action Research Step # 4:Evaluating the Action Whether job satisfaction increased or production time decreased. Step # 5: Institutionalizing Action Research Members at all levels must be rewarded for their efforts. Tangible rewards refreeze the organization in its new state.

30. Thank you for your kind attention! • FACILITATOR • Prof. Dr. Mohammad Majid Mahmood Bagram