Organizational Theory Design and Development

 

ANS 1 What is organizational development? A definition

Organizational development is a critical and science-based process that helps organizations build their capacity to change and achieve greater effectiveness by developing, improving, and reinforcing strategies, structures, and processes.

There are a few elements in this definition (adapted from Cummings & Worley, 2009) that stand out.

• Critical and science-based process. OD is an evidence-based and structured process. It is not about trying something out and seeing what happens. It is about using scientific findings as input and creating a structured and controlled process in which assumptions are tested. Lastly, it is about testing if the outcomes reflect the intention of the intervention.

• Build capacity to change and achieve greater effectiveness. Organizational development is aimed at organizational effectiveness. It, therefore, has a number of (business) outcomes. These can differ between organizations, but usually, they do include financial performance, customer satisfaction, organizational member engagement, and an increased capacity to adapt and renew the organization. These are not always clear-cut. Sometimes it is about building a competitive advantage, in whichever way we define that. We will explore these outcomes later in this article

• Developing, improving, and reinforcing strategies, structures, and processes. The last part of our definition states that organizational development applies to changes in strategy, structure, and/or processes. This implies a system-approach, where we focus on an entire organizational system. This can include the full organization, one or more locations, or a single department.

Advantages of Organization Development (OD)

Organization development has some advantages. An organization can enjoy these advantages by resorting to all steps of OD systematically and scientifically. These advantages are as follows:

1. Change throughout the organization:  Development activates are undertaken throughout the whole organization.

2. Greater motivation:  After undertaking and completing the OD program, managers and employees feel motivated to work with joy.

3. Increased productivity: OD increases productivity. Because employees can work with new methods and machines.

4. Better quality of work: Quality work, goods & services through successful OD programs can be ensured.

5. Higher job satisfaction:  Managers and employees became satisfied with changed things and more facilities.

6. Improved Teamwork:  Employees get team spirit and teamwork may be encouraged as they become satisfied and motivated by top management.

7. Better resolution of conflict: After getting the organization developed, managers and employee’s mentalities also get developed and broadened. Thus they can resolve conflict easily.

8. Commitment to objectives: Goal orientation and commitment is created among the employees. After getting everything developed they don’t get any scope of showing negligence.

9. Increased willingness to change: OD program creates the awareness to accept change without resistance. If the managers and employees are convinced they become willing to any change to be executed later.

10. Reduced absences: Absenteeism is reduced and employees attend the office and work in time which leads to high productivity.

11. Lower Turnover: Turnover is one of the problems of an organization through the OD program employee turnover rate becomes lower.

12. Creation of learning individuals and groups: With a number of development programs taken very often, individuals and groups learn many things. They become equipped to manage development programs in the future.

Disadvantages of Organization Development

Organization Development program suffers some limitations also. The degree of these limitations may vary from one organization to another. However, some limitations are discussed below:

1. Major time requirements: OD programs take a long time. Not only that for taking any action plan for OD, but planners also take much time.

2. Substantial expenditure: It costs many. A lot of funds are required to execute to OD program. Sometimes an organization cannot manage funds.

3. Delayed pay off period: In some cases, the OD program is affected by delayed pay off period. That is why some organizations become reluctant.

4. Possible failure: OD program may be failed due to some reasons. These failures are both human-related and non-human related.

5. Possible envision of privacy: The privacy of the organization may be leaked out through the OD program. Due to the involvement of irresponsible people, it happens so.

6. Possible psychological harm: Some psychological harm is experienced while taking the OD program. Employees with strong psychology can protect it.

7. Potential conformity:  Due to potential conformity with and results of different actions, OD programs might create misunderstanding and confusion.

8. Emphasis on group process: Very often the emphasis is laid on the group process. If the group does not mean so or take it seriously, and the OD program is affected.

9. Conceptual ambiguity: OD program concept, its operational possibility potential output, etc. may not be clearly understood by some people who are involved with OD.

10. Difficulty in evaluation: The evaluation of the OD program does not take place properly. This can raise many objectives from some corners.

11. Cultural incompatibility: If the OD program does adjust with the existing culture, it can bring desired results.

These are some important limitations or disadvantages of the OD program. Despite that, the organization will have to undertake a development program by avoiding possible limitations.

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