Human Resource Management

HUMAN RESOURCE HRM-442
MANAGEMENT
COURSE INFORMATION
Course name Human Resource Management

Course code HRM 442
Credit hours 3
Email iqra.asghar@seecs.edu.pk
Visiting hours 3-5 pm (Wednesday & Thursday)
Location SEECS (office 207)
LECTURE – 20
Organizational development
1. What is organizational development strategy?
2. What Are Some Organization Development Initiatives?
3. Benefits of Organization Development?
ORGANIZATIONAL
DEVELOPMENT
 Organizational development can be defined as an objective-based methodology used to initiate a change of
systems in an entity. Organizational development is achieved through a shift in communication processes or
their supporting structure.
 Organization development (OD) is an effort that focuses on improving an organization’s capability through
the alignment of strategy, structure, people, rewards, metrics, and management processes. It is a science-
backed, interdisciplinary field rooted in psychology, culture, innovation, social sciences, adult education,
human resource management, change management, organization behavior, and research analysis and design,
among others.
 Organization development involves an ongoing, systematic, long-range process of driving organizational
effectiveness, solving problems, and improving organizational performance. It is also one of the capabilities
identified in the Talent Development Capability Model.
OD is more
holistic and
strategic
whereas HR is
operational.
Like talent
development,
sometimes OD
functions are
under the HR
umbrella.
OD Strategy: Five Phases
Organizational development strategies is structured in five phases:
1) Entry represents the initial contact between consultant and client in which they present,
explore, and identify the problem, opportunities, or situation. The output of this phase is
an engagement contract or project plan that establishes mutual expectations and
preliminary agreements about project scope (such as time, money, and resources).
2) Diagnosis (assessment) represents the fact-finding phase. It is a collaborative data
gathering process between organizational stakeholders and the consultant in which
relevant information about the presenting problem is gathered, analyzed, and reviewed.
3) Feedback represents the return of analyzed information to the client or client system;
exploration of the information for understanding, clarity, and accuracy; review of
preliminary agreements about scope and resource requirements; and the beginning of
ownership of data by the client. The output of this phase is typically an action plan that
outlines the change solutions to be developed, along with defined success indicators
based on the information and data analysis.
4) Solution represents the design, development, and implementation of the solution or set of
solutions meant to correct the problems, close gaps, improve or enhance organizational
performance and effectiveness, or seize opportunities. Outputs may include a
communication plan, a role-and-responsibility matrix, a training plan, a training curriculum,
an implementation plan, a risk management plan, an evaluation plan, or a change
management plan.
5) Evaluation represents the continuous process of collecting formative and summative
evaluation data to determine whether the initiative is meeting the intended goals and
achieving defined success indicators. Outputs generally include an evaluation report with
recommendations for continuous improvement.
What Are Some Organization Development Initiatives?
Benefits of Organizational Development
1. Continuous development
• Entities that participate in organizational development continually develop

their business models. Organizational development creates a constant
pattern of improvement in which strategies are developed, evaluated,
implemented, and assessed for results and quality.
• In essence, the process builds a favorable environment in which a company
can embrace change, both internally and externally. The change is leveraged
to encourage periodic renewal.
2. Increased horizontal and vertical communication
• Of considerable merit to organizational development is effective

communication, interaction, and feedback in an organization. An efficient
communication system aligns employees with the company’s goals, values,
and objectives.
• An open communication system enables employees to understand the
importance of change in an organization. Active organizational development
increases communication in an organization, with feedback shared
continuously to encourage improvement.


3. Employee growth
• Organizational development places significant emphasis on effective

communication, which is used to encourage employees to effect necessary
changes. Many industry changes require employee development programs.
• As a result, many organizations are working toward improving the skills of

their employees to equip them with more market-relevant skills.

4. Enhancement of products and services
• Innovation is one of the main benefits of organizational development and is

a key contributing factor to the improvement of products and services. One
approach to change is employee development – a critical focal point is a
reward for motivation and success.
• Successful engagement of employees leads to increased innovation and
productivity. Through competitive analysis, consumer expectations, and
market research, organizational development promotes change.


5. Increased profit margins
• Organizational development influences the bottom line in many different

ways. As a result of increased productivity and innovation, profits and
efficiency increase. Costs come down because the organization can better
manage employee turnover and absenteeism.
• After the alignment of an entity’s objectives, it can focus entirely on
development and product and service quality, leading to improvements in
customer satisfaction.


5. Increased profit margins
• Organizational development influences the bottom line in many different

ways. As a result of increased productivity and innovation, profits and
efficiency increase. Costs come down because the organization can better
manage employee turnover and absenteeism.
• After the alignment of an entity’s objectives, it can focus entirely on
development and product and service quality, leading to improvements in
customer satisfaction.

Organizational Development models

• It’s important to remember there is no one-size-fits-all model for implementing change.
A model can help people see things anew, reinvigorate a team and improve
organizational practice for one business but be a complete failure for another.
• Plus, models are not static and will change over time – by solving one set of problems
you create another down the line, you’ll rely on rules until they no longer become
workable and efficient relationships will eventually become inefficient.
• With OD it’s vital to remember it’s not about finding the Holy Grail. There is no one
finite answer but rather a series of small wins over a period of time. However, there are
three defined models that are useful to look at:
Organizational Development models: Lewin’s Model

• This model is based on the idea that before you introduce a change your organization
must be prepared for change and motivated to change. Lewin has defined it as
unfreezing, changing and refreezing.
Unfreezing - In order to change, old behaviors must be unlearned and individuals within
your organization should be encouraged to shake things up. Lewin calls this unfreezing –
motivating and preparing people for change while at the same time minimizing resistance
to change.
Changing – Having unlearned old behaviors and becoming receptive to new behaviors
individuals are now ready to substitute new attitudes and methods of working for old ones.
Refreezing - New attitudes and behaviors are established as the new status quo. Those new
ways of operating are stabilized and reinforced.
Organizational Development models:
Larry Griener’s Model
• In this model change occurs when management is stimulated by outside pressures.
• This motivates management to introduce change and then it follows a sequential course
of action: pressure on top management, diagnosis of the problem, invention of a solution
and reinforcement of new habits through positive results.
Organizational Development models:
Leavitt’s Model
• Leavitt’s model is based on the premise that all systems – structure, people, technology
and tasks - interact with one another so if there is pressure or change in one system it
will have an effect on all the others.
• In essence, it means you can’t introduce change in one area without considering what the
implications are for all other areas.
Organizational Development for small business
Even with all that explanation, OD might still seem like an abstract concept for a small
business, particularly when you have a million other things to deal with every single day,
but it’s not as difficult as you think to implement. It is ultimately about preparing a
strategic plan for your business.
Rather than working on your business, take time out from it to consider the following:
•Where are you now?
•Where do you want to be? And in what time frame?
•How will you get there?
•How will you measure your progress?
Once you’ve answered those questions you can start to develop an OD plan. In it, you can
include your objectives, activities or changes that need to occur in order to achieve them,
staffing and resource requirements, timetables for implementation, methods for monitoring
progress and outcomes and standards to be achieved.
Thank you

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HUMAN RESOURCE HRM-442

Course name Human Resource Management

• Entities that participate in organizational development continually develop

2. Increased horizontal and vertical communication

• Of considerable merit to organizational development is effective

• Organizational development places significant emphasis on effective

• As a result, many organizations are working toward improving the skills of

• Innovation is one of the main benefits of organizational development and is

• Organizational development influences the bottom line in many different

• Organizational development influences the bottom line in many different

• In this model change occurs when management is stimulated by outside pressures.

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