Organizational Development & Structure, Objectives, Process, Techniques in OD, Types of Structures

1. Organizational Development
&
Organizational Structure
RAHUL BABAR

2. Organizational Development
Organization development (OD) is a deliberately
planned, organization-wide effort to increase
an organization's effectiveness and/or
efficiency and/or to enable the organization to
achieve its strategic goals.

3. Characteristics of OD
Planned Change
Comprehensive Change
Emphasis upon workgroups
Long-range change
Participation of change agent
Emphasis on intervention
Collaborative management
Organizational culture
Action research

4. Objectives of OD
1. To increase the level of inter-personal trust among
employees.
2. To increase employees level of satisfaction and
commitment.
3. To confront problems instead of neglecting them.
4. To effectively manage conflict.
5. To increase cooperation and collaboration among the
employees.
6. To increase the organization's problem solving.
7. To put in place processes that will help improve the
ongoing operation of the organization on a
continuous basis.

5. Process of OD
Problem Identification & diagnosis
Planning strategy for Change
Intervening in the system
Evaluation

6. OD Intervention Techniques
A Set of sequenced, planned actions or events
intended to help an organization to increase
its effectiveness.
Grid TrainingSensitivity Training

7. Factors that impact the success of OD
interventions
 Readiness to change
 Capability to change
 Cultural context
 Capability of OD Consultant

9. Sensitivity Training or T-Group training
It provides the employees with increased
awareness of their own behaviour and how
others perceive them, greater sensitivity to the
behaviour of others, and increased
understanding of group awareness.

10. Grid Training
A multistep process designed to cultivate
concern for people and concern for task
completion
Based on Blake & Mouton managerial grid
concept.

11. Grid Training

12. Organizational Structure
It is a framework within which an organization
arranges it’s lines of authorities and
communications and allocates rights and
duties

13. Why do we need Organizational
Structure?
All organizations have a management structure
that determines the relationships b/w
functions and positions and subdivides and
delegates roles, responsibilities and authority
to carry out defined tasks.

14. Line Organisational Structure
A line organisation has only direct, vertical
relationships between different levels in the
firm.

15. Advantages:
1. Tends to simplify and clarify authority,
responsibility and accountability relationships
2. Promotes fast decision making
3. Simple to understand
Disadvantages:
1. Neglects specialists in planning
2. Overloads key persons.

16. Line & Staff Structure
Most large organisations belong to this type of
organisational structure. These organisations
have direct, vertical relationships between
different levels and also specialists responsible
for advising and assisting line managers. Such
organisations have both line and staff
departments.

18. Advantages:
1. Committee decisions are better than individual
decisions
2. Better interaction between committee members leads
to better co-ordination of activities
3. Committee members can be motivated to participate
in group decision making.
4. Group discussion may lead to creative thinking.
Disadvantages:
1. Committees may delay decisions, consume more time
and hence more expensive.
2. Group action may lead to compromise and indecision.
3. ‘Buck passing’ may result.

19. Functional Organizational Structure
An organisation where staff departments have authority
over line personnel in narrow areas of specialization is
known as functional authority organisation

20. Divisional Organisational Structure
In this type of structure, the organisation can
have different basis on which departments are
formed.
(i) Function,
(ii) Product,
(iii) Geographic territory,
(iv) Project and
(iv) Combination approach.

22. Matrix Organisational Structure
It is a permanent organisation designed to achieve
specific results by using teams of specialists from
different functional areas in the organisation.

23. Advantages:
1. Decentralised decision making.
2. Strong product/project co-ordination.
3. Improved environmental monitoring.
4. Fast response to change.
5. Flexible use of resources.
6. Efficient use of support systems.
Disadvantages:
1. High administration cost.
2. Potential confusion over authority and responsibility.
3. High prospects of conflict.
4. Overemphasis on group decision making.
5. Excessive focus on internal relations.

24. Hybrid Organisational Structure
Advantages
1. Alignment of corporate and
divisional goals.
2. Functional expertise and
efficiency.
3. Adaptability and flexibility in
divisions.
Disadvantages
1. Conflicts between corporate
departments and units.
2. Excessive administration
overhead.
3. Slow response to
exceptional situations.

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