1. Dr. Virgel C. Binghay
School of Labor & Industrial Relations,
University of the Philippines, Diliman
Lecture Notes of Dr. V.C.Binghay 1

2. Dr. Virgel C. Binghay
Associate Professor & Director,
Center for Industry Productivity &
Competitiveness, U.P. School of
Labor & Industrial Relations
Tel. #: 661-1488
Mobile Phone: 0917-8487428
E-mail: dr.binghay@yahoo.com
Website: www.virgelcbinghay.com
Lecture Notes of Dr. V.C.Binghay 2

3. Topic Outline
• Nature of OD
• Definition of OD
• Contractual Relationship
• Change Agent
• Sponsoring Organization
• Applied Behavioral Science
• OD Process
• Systems Context
• Improved Organizational
Performance
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4. • Organizational Self-Renewal
• Understanding Organizations
• Modern Development in OD
• Action Research
• OD Interventions
• Types of Organizational Change
• Reactions to Change
• Resistance to Change
• Methods of Addressing Resistance
to Change
• Process of Planned Change
• Workshop
• Recap & Integration
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5. Nature of Organization
Development
Is a planned, organization-wide
effort to increase organization’s
effectiveness & viability
A response to change
A complex organizational strategy to
change the beliefs, attitudes,
values, & structure of organization
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6. A change process designed to
bring about a particular kind of
end result
Can involve interventions in the
organizations processes
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7. Uses behavioral science as
well as organizational
reflection, system improvement,
planning, and self analysis
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8. Definition of OD
OD is a contractual relationship
between a change agent & a
sponsoring organization entered
into for the purpose of using
applied behavioral science and/or
other organizational change
perspectives in a systems context
to improve organizational
performance & the capacity of the
organization to improve itself.
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9. OD is aimed at:
• Enhancing congruence among
organization structure, process,
strategy, people, & culture
• Developing new & creative
organizational solutions
• Developing the organization’s
self-renewing capacity
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10. Emergence of OD
• The need for organizational
reforms
• The focus on cultural change
• The increase in social
awareness
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11. Reasons for Undergoing
OD
• Competition
• Survival
• Improved Performance
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12. OD Values
• Respect for People
• Trust & Support
• Power Equalization
• Confrontation
• Participation
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13. Contractual Relationship
Neither the sponsoring
organization nor the change
agent can be sure at the outset
of the exact nature of the
problem/s to be dealt with or
how long the change agent’s
help will be needed, it is
essential that some tentative
agreement on these matters be
reached.
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14. Sponsoring organization needs
to know change agent’s:
preliminary plan
commitments & responsibility
for the program
fees
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15. Change agent must assure
himself/herself that the
organization’s particularly the top
executives’ commitment to
change is strong enough to
support the kind of self-analysis
and personal involvement
requisite to success of the
program.
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16. Change Agent
In OD, change agent is not a
technical expert in such
functional areas as accounting,
production or finance
Is a behavioral scientist who
knows how to get people in an
organization involved in solving
their own problems
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17. Strength is a comprehensive
knowledge of human behavior,
supported by a number of
intervention techniques
Can be either internal or
external to the organization
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18. Change Agent
• External Change Agent
• Internal Change Agent
• External-Internal Change Agent
Team
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19. Sponsoring Organization
The initiative for OD programs
comes from an organization
that has a problem.
This means that top
management is aware that a
problem exists and has
decided to seek help in finding
a solution to his/her problems.
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20. Applied Behavioral
Science
Using theory and methods drawn
from such behavioral sciences
(industrial relations, psychology,
sociology, anthropology, political
science, economics, administrative
theory, organizational behavior), the
change agent’s main function is to
help the organization define and
solve its own problems.
Method used – “Action Research”
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21. OD PROCESS
2. Preliminary Diagnosis
3. Collecting Data
4. Feedback of the Data to the
Client
5. Data Exploration by the Client
Group
6. Action Planning based on the
Data
7. Taking Action
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22. Systems Context
OD deals with a total system –
the organization as a whole,
including its relevant
environment – or with a
subsystem or systems –
departments or work groups –
in the total system
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23. Parts of system (like
individuals, cliques,
structures, norms, values,
and products) are not
considered in isolation
Principle of interdependency
OD interventions focus on
total culture and cultural
processes of organizations
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24. Improved Organizational
Performance
Improve organization’s capacity to
handle its internal and external
functioning and relationships such
as:
Improved interpersonal & group
processes
More effective communication
Enhanced ability to cope with
organizational problems of all kinds
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25. More effective decision
processes
More appropriate leadership
style
Improved skill in dealing with
destructive conflict
Higher levels of trust and
cooperation among
organizational members
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26. These objectives stem from a
value system based on an
optimistic view of the nature of
people – that people in a
supportive environment are
capable of achieving higher
levels of and accomplishment.
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27. Essential to OD &
effectiveness is the
scientific method – inquiry,
a rigorous search
for causes, experimental
testing of hypotheses, and
review of
results
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28. Organizational Self-
Renewal
The ultimate aim of OD is to
“work themselves out of a job”
by leaving the client organization
with a set of tools, behaviors,
attitudes, and an action plan with
which to monitor its own state of
health and to take corrective
steps toward its own renewal
and development.
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29. Understanding
Organizations
Weisbord’s six-box model for
understanding organization:
2. Purposes
3. Structure
4. Relationship
5. Rewards
6. Leadership
7. Helpful Mechanism
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30. • Purposes: The organization
members are clear about the
organization’s mission and
purpose and goal agreements,
whether people support the
organization’s purpose.
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31. • Structure: How do we divide
up the work? The question is
whether there is an adequate fit
between the purpose and the
internal structure.
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32. • Relationship: Between
individual, between units or
department that perform
different tasks, and between
the people and requirements of
their job.
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33. • Rewards: The change agent
should diagnose the similarities
between what the organization
formally reward or punished for
doing.
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34. • Leadership: Is to watch for
blips among the other boxes
and maintain balance among
them.
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35. • Helpful Mechanism:
organization must attend to
order to survive – like:
planning, control, budgeting,
information, and other systems
that help organization member
accomplish.
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36. Modern Development
Reinventing OD to manage
change in modern
organizations
Emotion-based standpoint –
how emotional trauma can
negatively affect performance
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37. Downsizing, outsourcing,
mergers, restructuring,
continual changes, invasions
of privacy, harassment, and
abuses of power, many
employees experience the
emotions of aggression,
anxiety, apprehension,
cynicism, and fear, which can
lead to performance
decreases.
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38. OD practitioners must
acknowledge the existence
of trauma, provide a safe
place for employees to
discuss their feelings,
symbolize the trauma and
put it into perspective, and
then allow for and deal with
the emotional responses.
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39. Action Research
OD as organization
improvement through
action research
If people are active in
decisions affecting them,
they are more likely to
adopt new ways.
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40. Rational social
management proceeds in a
spiral of steps, each of
which is composed of a
circle of planning, action,
and fact-finding about the
result of action.
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41. Process of change involves
three steps:
4. Unfreezing
5. Changing
6. Refreezing
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42. • Unfreezing: Faced with
dilemma or discomfort, the
individual or group becomes
aware of the need to change.
• Changing: The situation is
diagnosed and new models of
behavior are explored and
tested
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43. • REFREEZING: Application
of new behavior is evaluated,
and if reinforcing, adopted.
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44. OD Interventions
“Interventions” are central
learning processes in the
“action” stage of OD
They are structured activities
used individually or in
combination by the members of
the client system to improve
their social or task
performance.
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45. They may be introduced by a
change agent as part of an
improvement program, or
they may be used by the
client following a program to
check the state of the
organization’s health, or to
effect necessary changes in
its own behavior.
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46. “Structured Activities” mean
such diverse procedures as
experiential exercises,
questionnaires, attitude
surveys, interviews,
relevant group discussions,
and even a lunch meetings
between the change agent
and a member of the client
organization.
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47. Every action that
influences an
organization’s
improvement program in
a change agent-client
system relationship can
be said to be an
intervention.
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48. There are many possible
intervention strategies from
which to choose. Several
assumptions about the
nature and functioning of
organizations are made in
the choice of a particular
strategy.
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49. SIX ASSUMPTIONS OF
HEALTHY ORGANIZATIONS
1)The basic building blocks of an
organization are groups
(teams). Therefore, the basic
units of change are groups, not
individuals.
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50. 2) An always relevant change
goal is the reduction of
inappropriate competition
between parts of the
organization and the
development of more
collaborative condition.
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51. 3) Decision making in a healthy
organization is located where
information sources are,
rather than in a particular role
or level of hierarchy.
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52. 4) Organizations, subunits of
organizations, and individuals
continuously manage their
affairs against goals. Controls
are interim measurements, not
the basis for managerial
strategy.
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53. 5)One goal of a healthy
organization is to develop
generally open
communication, mutual trust,
and confidence between and
across levels.
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54. 6)People support what they help
create. People affected by a
change must be allowed active
participation and a sense of
ownership in the planning and
conduct of change.
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55. CATEGORIES OF
INTERVENTIONS:
Interventions range from those
designed to improve the
effectiveness of individuals
through those designed to deal
with teams and groups, inter-
group relations, and the total
organization.
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56. There are interventions that
focus on task issues (what
people do), and those that
focus on process issues (how
people go about doing it).
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57. Interventions may also be
classified according to which
change mechanism they tend
to emphasize: for example,
feedback, awareness of
changing cultural norms,
interaction and communication,
conflict, and education through
either new knowledge or skill
practice.
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58. A CHALLENGE OF
CHANGE AGENT:
“To help create in a client
system a climate for
learning and change.”
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59. Some of the things that will
help Change Agents:
3. A real need in the client
system to change
4. Genuine support from
management
5. Setting a personal
example: listening,
supporting behavior
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60. 1. A sound background in
behavioral sciences
5. A working knowledge of
systems theory
6. A belief in people as rational,
self-educating being fully
capable of learning better
ways to do things
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61. Effective intervention
depends on:
• The extent to which it fits the needs
of the organization;
• The degree to which it is based on
causal knowledge of intended
outcomes; and
• The extent to which it transfers
change management competence
to organization members
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62. Few Examples of
Interventions
Training
Team Building
Coaching
Counseling
Mentoring
Large Group Interventions
Performance Management
Downsizing/Rightsizing
Succession
Leadership Development
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63. Job Evaluation
Role Analysis
Socio-Tech
Structural
Management Development
Rewards Management
Group Dynamics
Competency-based Selection
Labor-Management Councils
Grievance Handling
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64. Types of Organizational
Change
Strategic Changes
Technological Changes
Structural Changes
Changing the Attitudes &
Behaviors of People
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65. Reactions to
Organizational Change
Enthusiasts
Followers
Objectors
Underground
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66. Top 2 Reasons for
Employee Resistance
2. A lack of awareness
about the change
4. Comfort with the ways
things are and fear of the
unknown
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67. Top 10 Reasons Employees
Resist Change
1. Individual’s personal predisposition to
change
2. Surprise & fear of the unknown
3. Climate of mistrust
4. Fear of failure
5. Loss of status &/or job security
6. Peer pressure
7. Disruption of cultural traditions &/or
group relationships
8. Personality conflicts
9. Lack of tack &/or poor timing
10. Not seeing the benefits
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68. Methods of Overcoming
Resistance to Change
Education
Participation
Negotiation
Cooptation
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69. Process of Planned
Change
Assess external environment
Specify objectives to be
achieved
Assess current organization
and its history
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70. Articulate & communicate a
vision for the future
Design a strategic plan
Implement targeted change
efforts
Evaluate, revise, and refocus
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71. Strategies to Change
• Structural Strategy
• Technological Strategy
• Behavioral Strategy
Lecture Notes of Dr. V.C.Binghay 71

72. Structural Strategy
- An attempt to change
organization’s design by
modifying the lines of authority,
span of control, & agreement of
work functons
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73. Technological Strategy
- The use of new technologies to
bring an organization up to the
state of the art machinery,
methods, automation, & job
design
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74. Behavioral Strategy
- Focuses on human resources; it
aims to increase the morale,
motivation, & commitment of
members to improve
organization performance.
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