Lecture 1 Introduction to Organization Development
Organizations will need to adapt to changing market conditions and at the same time cope with the
need for a renewing rather than reactive workforce.
Example Nokia: People couldn’t really work with the Symbian operating system. Nokia was the first
in the market, because of the changes in the environment and the bad managerial decisions they took
→ they go out. Automotive industry: need to switch to electric cars.
Example America: Global competition and economic downturns exposed weakness in American
organizations: overstaffed, slow and inefficient. To increase productivity, enhance competitiveness,
contain costs → continue change.
Organizations are never completely static and do not exist in isolation of other entities. There is
interaction with external forces (competitors, customers, suppliers etc.). The society within which an
organization operates influences the modes, values and norms that are developed within the
organization. Organizations are using OD techniques to increase their effectiveness and their
adaptability to changing conditions.
What is organizational development?
The LONG-RANGE EFFORT to improve:
1) an organization’s/system’s problem-solving capabilities and
2) its abilities to cope with changes in the external environment with the help of external or internal
behavioral-scientist consultants or change agents, as they are sometimes called (Wendell French,
1969)
Comprises the long-range efforts and programs aimed at improving an organization’s ability to survive
by changing its problem-solving and renewal processes. OD involves moving toward an adaptive
organization and achieving corporate excellence by integrating the desires of individuals for growth
and development with organizational goals.
OD efforts are planned, systematic approaches to change. Purpose is to increase the effectiveness of
the system and to develop the potential of all the individual members. It includes a series of planned
behavioral science intervention activities carried out in collaboration with organization members to
help find improved ways of working together toward individual and organizational goals.
Characteristics of od:
• Planned. Does not come spontaneously. There is a need for change (managers are signaling),
based on that developing plans and actions. Aims at specific objectives and is based on a
diagnosis of problem areas → planned by managers to achieve goals.
• Effectiveness. One of them is for example the well-being of employees next to financial
outcomes. So they are connected with effectiveness. How to improve the competitiveness
(different levels). Emphasis on ways to improve and enhance performance
• Scientific approach (e.g. team dynamics, work design). Not going to develop interventions
which are based on our beliefs (e.g. team dynamics, work design). Interventions that are based
on knowledge. To increase organization effectiveness →scientific approaches supplement
practical experience.
• Systemic approach. Different elements in a system (organization), they are all
interconnected, and they are unified by one particular design. One way in which we can
understand the organization in a holistic way. Concerned with the interrelationship of
, divisions, departments, groups, and individuals as interdependent subsystems of the total
organization → relationship among elements and excellence.
Research process for an OD consultant
What is going on in an organization? How can I tackle this?
1. Anticipate a need for change. It has to come from within the organization (something has to go not
very good). Organization signals that something is not going well. Manager’s perception that
organization needs improvement →there must be felt a need to change.
2. Develop the practitioner-Client relationship. During the first meeting. Not just a meeting. Really
important to set up the expectations and to get a sense of what is going on in the organization. If a
manager says that employees are not happy with implementing technological changes. They also have
restrictions and requirements. During this meeting you are going to look what is really needed. Draw
an intervention (I can choose this myself), a lot of things are connected with ethics as well. Many
things that are becoming clear here. when organization recognizes need for change and OD
practitioner enters the system, a relationship begins to develop between the practitioner and the client
system. The exchange of expectations and obligations depends to a great degree upon a good first
impression or match between the practitioner and the client system. The practitioner attempts to
establish a pattern of open communication, a relationship of trust, and an atmosphere of shared
responsibility.
3. The diagnostic process. Actually going to the organization, identify what the problem is using
theories. Has to be more informed and relied on the data. You have to argue why (not because you
think so), but if you have data (numbers), you can make a better case. Practitioner and client begin to
gather data about the system → practitioner must question the client’s diagnosis of the problem
(maybe biased). After acquiring data, analyze the data to identify problem areas and causal
relationships. The diagnostic phase is used to determine the exact problem that needs solution, to
identify the forces causing the situation and to provide a basis for selecting effective change strategies
and techniques.
4. Action plans, strategies and techniques. Develop action and techniques you propose, if they are
going to use them, there problems will be solved. Issue with communicating, you probably use a team
building program. Most of the time a combination of interventions that are tackle the problem will be
used. Diagnostic phase leads to a series of interventions, activities, or programs aimed at resolving
problems and increasing organization effectiveness → TQM, job design, goal setting, team building
etc.
5. Self-renewal, Monitor and Stabilize. Often times they have diagnostics and interventions and then
they leave. The effect may disappear in time. How the management can reinforce the sustainment of
the intervention is important. When action program is implemented, the final step is to monitor the
results and stabilize the desired changes. Stage assesses the effectiveness of change strategies in
attaining stated objectives. The ideal OD program will create a client system that has a self-renewal
capability that can maintain innovation without outside support.
Approach for the research report (AI: Appreciative Inquiry)
• Positive approach. Comes from the idea that we have to focus on what is going well in the
organization (positive). Come to the management and try to see what are the strengths of the
company. Build on that.
• Based on expectation research: We behave according to our expectations! Team will start
behaving according to their expectations.
This approach has 4 phases.
1. Discovering (appreciating). Only very rich people would have a car. If they develop cars for
everybody. We have the infrastructure and the expertise. Just relying on the strengths we have. Is the
,discovering part: what are the resources of the company, where can they rely on.
2. Dream (imagining). Than we should come up with a plan. Car that can drive in the heat in the cold.
What we wanted to achieve.
3. Design (innovating). How are we going to actually do it. Define some plans, innovations, so that
we can make our dream to.
4. Destiny (delivering). Making the car, the car was successful.
Appreciative inquiry approach: what are the strengths of the organizations, make goals and dreams
about it, after that you design it and finally the implementation part. This is the philosophy of the
course.
What is going well on your organization and based on that deciding on what we can improve.
Why Organization Development?
Organizations are designed to accomplish some purpose or function and to continue doing so for as
long as possible → not necessarily intended to change. Typical factors for an organization to initiate a
large-scale change program include a very high level of competition, concern for survivability and
declining performance. Goals for change include changing the corporate culture, becoming more
adaptive, and increasing competitiveness. Change in the external environment will occur so rapidly
that organizations will need OD techniques just to keep pace with the accelerating rate of innovation.
Virus. Has implication from an economical perspective: traffic is now flowing properly. Affect
airports (extra people); extra policies.
Policies are focused on sustainability. A lot more emphasis than a couple of years ago.
Organization environment: requires changes. For example protest: employees do not accept an
autocratic style of management.
Organization environment: changing…
Back to the example of Nokia. Nowadays a lot of trends that are shaping the change.
Major trends shaping change:
, 1. Globalization & environment protection, we are not isolated, everything is connected (Brexit has
consequences for other parts of the world). Environment protection: becomes more visible in policies.
Nokia could not deal with competitors (Iphone), better able to tackle the needs of the customers.
Customers: not able to get in touch with: could not met the demands.
Governments: impose rules and regulations. Reduce the speed on the high way.
Stockholders + Suppliers: Nokia led to a Microsoft operating system: was not a success.
Society: get employees from abroad, little chance for people in their own country.
Employees + Unions: putting pressure on companies to change.
2. Information technology
3. Managerial innovation
New forms of organizing (changing by make us of new organizational forms)… (New
organizational forms are needed). Organizations tend to adopt forms appropriate to a particular time;
current rate of change requires more adaptive forms (a reaction to the need of change).
• “travail a la chaine” in a VW factory; control & command;
• Multiple teams, multiple tasks; virtuality; connecting multiple organizations; serving multiple
purposes
• Boundaryless, fluent forms of organizing; e.g. wikipedia; uber; airbnb;
Air BnB, Uber. People start working within project teams. Boundaries between organizations are more
shady.
Systemic approach:
All of them are interconnected. Any change that happens in one part of the organization, will happen
in others parts in the organization. If you change part a, you will indirectly change part b. in solving a
given problem, managers must analyze the organization, departmental subsystem interrelationships,
and possible effects on the internal environment. This approach provides a way of observing,
analyzing and solving problems in organizations. In an organization engaged in downsizing, managers
may use a systems approach to determine how to cut costs.
Organizations will need to adapt to changing market conditions and at the same time cope with the
need for a renewing rather than reactive workforce.
Example Nokia: People couldn’t really work with the Symbian operating system. Nokia was the first
in the market, because of the changes in the environment and the bad managerial decisions they took
→ they go out. Automotive industry: need to switch to electric cars.
Example America: Global competition and economic downturns exposed weakness in American
organizations: overstaffed, slow and inefficient. To increase productivity, enhance competitiveness,
contain costs → continue change.
Organizations are never completely static and do not exist in isolation of other entities. There is
interaction with external forces (competitors, customers, suppliers etc.). The society within which an
organization operates influences the modes, values and norms that are developed within the
organization. Organizations are using OD techniques to increase their effectiveness and their
adaptability to changing conditions.
What is organizational development?
The LONG-RANGE EFFORT to improve:
1) an organization’s/system’s problem-solving capabilities and
2) its abilities to cope with changes in the external environment with the help of external or internal
behavioral-scientist consultants or change agents, as they are sometimes called (Wendell French,
1969)
Comprises the long-range efforts and programs aimed at improving an organization’s ability to survive
by changing its problem-solving and renewal processes. OD involves moving toward an adaptive
organization and achieving corporate excellence by integrating the desires of individuals for growth
and development with organizational goals.
OD efforts are planned, systematic approaches to change. Purpose is to increase the effectiveness of
the system and to develop the potential of all the individual members. It includes a series of planned
behavioral science intervention activities carried out in collaboration with organization members to
help find improved ways of working together toward individual and organizational goals.
Characteristics of od:
• Planned. Does not come spontaneously. There is a need for change (managers are signaling),
based on that developing plans and actions. Aims at specific objectives and is based on a
diagnosis of problem areas → planned by managers to achieve goals.
• Effectiveness. One of them is for example the well-being of employees next to financial
outcomes. So they are connected with effectiveness. How to improve the competitiveness
(different levels). Emphasis on ways to improve and enhance performance
• Scientific approach (e.g. team dynamics, work design). Not going to develop interventions
which are based on our beliefs (e.g. team dynamics, work design). Interventions that are based
on knowledge. To increase organization effectiveness →scientific approaches supplement
practical experience.
• Systemic approach. Different elements in a system (organization), they are all
interconnected, and they are unified by one particular design. One way in which we can
understand the organization in a holistic way. Concerned with the interrelationship of
, divisions, departments, groups, and individuals as interdependent subsystems of the total
organization → relationship among elements and excellence.
Research process for an OD consultant
What is going on in an organization? How can I tackle this?
1. Anticipate a need for change. It has to come from within the organization (something has to go not
very good). Organization signals that something is not going well. Manager’s perception that
organization needs improvement →there must be felt a need to change.
2. Develop the practitioner-Client relationship. During the first meeting. Not just a meeting. Really
important to set up the expectations and to get a sense of what is going on in the organization. If a
manager says that employees are not happy with implementing technological changes. They also have
restrictions and requirements. During this meeting you are going to look what is really needed. Draw
an intervention (I can choose this myself), a lot of things are connected with ethics as well. Many
things that are becoming clear here. when organization recognizes need for change and OD
practitioner enters the system, a relationship begins to develop between the practitioner and the client
system. The exchange of expectations and obligations depends to a great degree upon a good first
impression or match between the practitioner and the client system. The practitioner attempts to
establish a pattern of open communication, a relationship of trust, and an atmosphere of shared
responsibility.
3. The diagnostic process. Actually going to the organization, identify what the problem is using
theories. Has to be more informed and relied on the data. You have to argue why (not because you
think so), but if you have data (numbers), you can make a better case. Practitioner and client begin to
gather data about the system → practitioner must question the client’s diagnosis of the problem
(maybe biased). After acquiring data, analyze the data to identify problem areas and causal
relationships. The diagnostic phase is used to determine the exact problem that needs solution, to
identify the forces causing the situation and to provide a basis for selecting effective change strategies
and techniques.
4. Action plans, strategies and techniques. Develop action and techniques you propose, if they are
going to use them, there problems will be solved. Issue with communicating, you probably use a team
building program. Most of the time a combination of interventions that are tackle the problem will be
used. Diagnostic phase leads to a series of interventions, activities, or programs aimed at resolving
problems and increasing organization effectiveness → TQM, job design, goal setting, team building
etc.
5. Self-renewal, Monitor and Stabilize. Often times they have diagnostics and interventions and then
they leave. The effect may disappear in time. How the management can reinforce the sustainment of
the intervention is important. When action program is implemented, the final step is to monitor the
results and stabilize the desired changes. Stage assesses the effectiveness of change strategies in
attaining stated objectives. The ideal OD program will create a client system that has a self-renewal
capability that can maintain innovation without outside support.
Approach for the research report (AI: Appreciative Inquiry)
• Positive approach. Comes from the idea that we have to focus on what is going well in the
organization (positive). Come to the management and try to see what are the strengths of the
company. Build on that.
• Based on expectation research: We behave according to our expectations! Team will start
behaving according to their expectations.
This approach has 4 phases.
1. Discovering (appreciating). Only very rich people would have a car. If they develop cars for
everybody. We have the infrastructure and the expertise. Just relying on the strengths we have. Is the
,discovering part: what are the resources of the company, where can they rely on.
2. Dream (imagining). Than we should come up with a plan. Car that can drive in the heat in the cold.
What we wanted to achieve.
3. Design (innovating). How are we going to actually do it. Define some plans, innovations, so that
we can make our dream to.
4. Destiny (delivering). Making the car, the car was successful.
Appreciative inquiry approach: what are the strengths of the organizations, make goals and dreams
about it, after that you design it and finally the implementation part. This is the philosophy of the
course.
What is going well on your organization and based on that deciding on what we can improve.
Why Organization Development?
Organizations are designed to accomplish some purpose or function and to continue doing so for as
long as possible → not necessarily intended to change. Typical factors for an organization to initiate a
large-scale change program include a very high level of competition, concern for survivability and
declining performance. Goals for change include changing the corporate culture, becoming more
adaptive, and increasing competitiveness. Change in the external environment will occur so rapidly
that organizations will need OD techniques just to keep pace with the accelerating rate of innovation.
Virus. Has implication from an economical perspective: traffic is now flowing properly. Affect
airports (extra people); extra policies.
Policies are focused on sustainability. A lot more emphasis than a couple of years ago.
Organization environment: requires changes. For example protest: employees do not accept an
autocratic style of management.
Organization environment: changing…
Back to the example of Nokia. Nowadays a lot of trends that are shaping the change.
Major trends shaping change:
, 1. Globalization & environment protection, we are not isolated, everything is connected (Brexit has
consequences for other parts of the world). Environment protection: becomes more visible in policies.
Nokia could not deal with competitors (Iphone), better able to tackle the needs of the customers.
Customers: not able to get in touch with: could not met the demands.
Governments: impose rules and regulations. Reduce the speed on the high way.
Stockholders + Suppliers: Nokia led to a Microsoft operating system: was not a success.
Society: get employees from abroad, little chance for people in their own country.
Employees + Unions: putting pressure on companies to change.
2. Information technology
3. Managerial innovation
New forms of organizing (changing by make us of new organizational forms)… (New
organizational forms are needed). Organizations tend to adopt forms appropriate to a particular time;
current rate of change requires more adaptive forms (a reaction to the need of change).
• “travail a la chaine” in a VW factory; control & command;
• Multiple teams, multiple tasks; virtuality; connecting multiple organizations; serving multiple
purposes
• Boundaryless, fluent forms of organizing; e.g. wikipedia; uber; airbnb;
Air BnB, Uber. People start working within project teams. Boundaries between organizations are more
shady.
Systemic approach:
All of them are interconnected. Any change that happens in one part of the organization, will happen
in others parts in the organization. If you change part a, you will indirectly change part b. in solving a
given problem, managers must analyze the organization, departmental subsystem interrelationships,
and possible effects on the internal environment. This approach provides a way of observing,
analyzing and solving problems in organizations. In an organization engaged in downsizing, managers
may use a systems approach to determine how to cut costs.
