Organisational development and its techniques

It includes what is organizational development and various techniques. Its also includes a case study on organizational development in TCS organisation.

1. ORGANISATIONAL DEVELOPMENT AND ITS TECHNIQUES - Prarthana Joshi MBA II 809

2. What is Organizational development? One classic definition of organization development comes from Richard Beckhard's 1969  Organization Development: Strategies and Models   : Organization Development is an effort that is: Planned Organization-wide Managed from the top Increase organization effectiveness and health Through planned interventions in the organization's "processes,” using behavioral-science knowledge.

3. Similarly OD is also defined as a systematic process for applying behavioral science principles and practices in organizations to increase individual and organizational effectiveness (French, 2008). So OD is improvement of the organization by developing its human resource through planned change efforts/interventions at all levels using human behavior approach. The tools and techniques of OD can improve an organization's problem-solving ability, increase its ability to adapt to rapid societal change, and provide managers an updated set of concepts and methods for managing their organizations. It also includes formal organizational restructuring which is frequently initiated, facilitated and reinforced by the normative and behavioral changes. The three sub objectives of OD are “changing attitudes or values, modifying behavior, and inducing change in structure and policy.”

4. THE EVOLUTION OF ORGANIZATION DEVELOPMENT In the late 1940s and early 1950s laboratory training methods were developed and applied by groups of behavioural scientists at Bethel, Maine. Douglas McGregor (Theory X and Theory Y), working with Richard Backhard , began applying laboratory training methods to industry at General Mills in 1956 and at Union Carbide in 1957. At Union Carbide, McGragor and Johan Paul Jones (an internal consultant) formed the first internal OD consulting group.

5. Techniques of Organisation Development Major techniques of organization development:-

6. 1. Survey Feedback: Information is collected through survey method. This is the most popular and widely used method of data collection. The managers use this information collected through survey for making decisions. The wide range of data is collected regarding working conditions, quality of work, working hours, wages and salaries, attitude of employees relating to above. 2. Team Building: Team Building is another method of organisation development. This method is specifically designed to make improvement in the ability of employees and motivating them to work together. It is the organisation development technique which emphasizes on team building or forming work groups in order to improve organisational effectiveness.

7. 3. Sensitivity Training: It is quite popular OD intervention. It is also known as laboratory training. Under this technique the employees in groups are asked to interact. The aim of sensitivity training is to help people understand each other and gain insight so that they feel free and become fearless. 4. Managerial Grid: This technique is developed by industrial psychologists duo Robert Blake and Jane Mouton. The concept of managerial grid identifies two major dimensions of management behaviour. They are people oriented and production oriented behaviours. Attempts are made to pay increased attention to both the variables.

8. 5. Management by Objectives (MBO): MBO is a technique of management development which was put forward for the first time by Peter Drucker in 1954. It is a method of achieving organisational objectives and a technique of evaluation and review of performance. Under this method objectives of the organisation are fixed and responsibility to achieve them lie on the managers and results are expected from them. Achievement of organisational objectives is considered as the joint and individual responsibility of all managers. It also provides a perfect appraisal system. Performance of the managers is measured against the specific objectives. It is result oriented technique. George Odiorne observed that MBO is, “a system wherein superior and subordinate managers of an organisation jointly identify its common aims, define each individual’s major areas of responsibility in terms of the results expected of him and use these measures as guides for operating the unit, assessing the contribution benefits of its members.”

9. 6. Brain Storming: It is a technique where a group of five to eight managers come together and find a solution to a problem. As the name suggests it involves storming of the brain to develop creativity in thinking. It gives rise to new ideas. The principle involves in it is that any idea, thought or plan put forward in a meeting must be critically evaluated. The participants are asked to come forward with novel ideas generated in their mind. It works on a premise that everyone has a creative mind and capability to generate new ideas. 7. Process Consultation: The technique of process consultation is an improvement over the method of sensitivity training or T Group in the sense that both are based on the similar premise of improving organisational effectiveness through dealing with interpersonal problems but process consultation is more tasks oriented than sensitivity training. In process consultation the consultant or expert provides the trainee feedback and tell him what is going around him as pointed out by E H Schein that the consultant, “gives the client ‘insight’ into what is going on around him, within him, and between him and other people.”

10. 8. Quality Circles: Under this system a group of 5 to 12 come together at their own free will during working hours once in a week and discuss out the problems and suggests solution to the management for implementation. The supervisors remain present during the meeting. Quality Circles have their origin in Japan in nineteen sixties which improved the quality, reduced cost and heightened the morale of the workers. The success was due to workers’ participation. Total quality management or TQM is the recent development. This concept was adopted by the USA in 1980. 9. Transactional Analysis: Transactional analysis helps people to understand each other better. It is a useful tool for organisational development but it has diverse applications in training, counselling, interpersonal communication and making analysis of group dynamics. Nowadays, it is widely used as OD technique. It helps in developing more adult ego states among people of the organisation. It is also used in process consultation and team building.

11. TATA CONSULTANCY SERVICES - Case Study

12. About Tata Consultancy Services Ltd (TCS) Tata Consultancy Services is an IT services, consulting, and business solutions organization that delivers real results to global business, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of IT and IT-enabled infrastructure, engineering, and assurance services. This is delivered through its unique Global Network Delivery Model™, recognized as the benchmark of excellence in software development. A part of the Tata Group, India’s largest industrial conglomerate, TCS has a global footprint and is listed on the National Stock Exchange and Bombay Stock Exchange in India.

13. Pre-OD Scenario Mounting Revenue Pressures Selectivity in Projects Focus on Specialization Efforts on Experimentation & Innovation Rewards & Recognition Intergroup Co-ordination & Knowledge Sharing Branding & PR

14. Alignment & Structure at TCS

15. Scenario Building Workshops

16. PROPEL The Intervention: Culture Building at TCS In consonance with the TCS belief of “Let us make it a joy for all our stakeholders”.

17. Initiatives Deployed

18. Account Excellence Program Meeting all customer requirements Minimizing processes variances Reduction in Cost Of Quality Elimination of waste Enhanced Customer Support Efficient Product Service Flexibility to meet Customer demands & Market changes Rework Reduction Continuous Process Improvements On-time delivery of major programs

19. Darpan Reflect & Improve There was a distinct increase in the Associate Satisfaction Index (ASI) in Darpan 06, which, interestingly, corresponded to an increase in Customer Satisfaction Index (CSI) as well.

20. Paradigm Shift: Post OD Scenario The earlier tendency of self-sacrificing hard work was replaced by a shift of focus to teamwork and valuing of the employee. In a nutshell, the OD interventions at TCS have helped build a culture of fostering systems thinking & creating forums for dialogue, while encouraging leadership at all levels. For the organization at large, OD helped to reiterate the merits of valuing enquiry, expressing differences, and constantly generating new knowledge.

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