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Management Concepts & Organisational Behaviour - Organisational Development (OD)

Process, Benefits and Costs of OD

   Posted On :  19.05.2018 10:40 pm

OD program is decided after the consultant meets the top management.

Process, Benefits and Costs of OD

OD process: 

A typical complete OD program includes the following steps.
Initial diagnosis: OD program is decided after the consultant meets the top management. By means of interviews with various persons the consultant seeks necessary inputs.Data collections and surveys may be made to know the organizational climate and organizational behavioral problems. By meeting the groups away from work, the consultant develops information, from issues pertaining to conditions that contribute most to job effectiveness, conditions that interfere with job effectiveness and the changes in the way the organization operates at present.
Action planning and problem solving: groups use the data to develop specific recommendations for change. Their discussion focuses on problems in the organization. Plans made are specific pinpointing who is responsible and by what time the action shall have been completed.

Team building: during the group meetings the consultant encourages groups to examine how they work as a team. He also helps them to see the value of open communication and trust as pre-requisites for improved group functioning.
Intergroup Development: first small group teams are developed followed by development of large groups comprises several teams.
Evaluation and follow - up: the consultant helps the organization evaluate results of OD efforts and develops additional programs in areas where additional results are needed.
If the organization expects to gain the full benefits of OD, all the steps in the process are to be applied.

Benefits of OD: 

Primary advantage of OD as a useful method of organizational intervention is that it tries to deal with change in the whole organization or major unit of it. Hence, it ensures widely dispersed improvement. Other benefits include high motivation, productivity, quality of work, job satisfaction and conflict resolution. OD also reduces negative factors such as absenteeism and labour turnover.

Limitations (or problems) of OD

It is time consuming and expensive. Since benefits of OD require long pay-off periods, organizations may not prefer waiting that long. There are problems of invasion of privacy and psychological harm in some of the OD techniques. Criticism against OD is that participants in OD programs are coerced to group attitudes and thereby to conformity. Yet another criticism is that OD emphasizes too much on behavioral processes rather than on job performance. Group processes are given priority over needs of the organization.


Tags : Management Concepts & Organisational Behaviour - Organisational Development (OD)
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