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Organizational Development

Organizational development (OD) is a process of planned change in an organization that is (a) systemwide, (b) based on open system theory and the application of behavioral science knowledge, (c) involving organizational members in the process, (d) long-range (months if not years), (e) grounded in humanistic values, (f) aimed toward modification of the organization’s culture, and (g) intended to improve an organization’s capacity for managing change and development in the future. Even though this definition of OD is rather elaborate, it does not capture the essence of what this field is all about. What follows in the next section, Fundamentals, therefore, is coverage of the theory, conceptual frameworks, and practice that compose the field of OD. Fundamentals is then followed by a section on education and professional development; in other words, how does one learn about OD? In the next section, on the evolution of OD, the entry answers the question, Where did OD come from? And then in the final section, the question of OD’s importance is addressed. References that are primary to this coverage of OD are provided at the end.

Fundamentals

The content and substance of OD may be considered in three categories: theory, conceptual frameworks, and practice.

Theory

There is no all-encompassing, singular theory of OD. Although not a theory of OD or organizational change as such, most OD practitioners think nevertheless in terms of open system theory, that is, an organization has input from its external environment and translates that input into throughput within the organization; thus, throughput is producing a service and/or product, which in turn becomes output to the consumer, and the output—performance, sales, profit, consumer satisfaction, and so on—becomes feedback for the organization in the form of input and the cycle continues. For most OD practitioners, the metaphor of choice is an organism. An organization can be considered as a living, breathing organism that for survival is dependent on its external environment. Thus, astute practitioners start with external forces in the organization’s environment— for example, the marketplace, competitors, changing technology, or workforce talent. This metaphor, organism, goes hand-in-hand with open systems theory, which comes from cell biology. Comparisons between a living cell and an organization help to explain and understand certain concepts associated with change—chaos, disequilibrium, self-organizing, and the like.

Although there is no all-encompassing theory of OD, there are a number of minitheories that underlie the field. Mini in this case means that the theory relates to some aspect of OD but not to its entirety. Together and across three organizational levels, these minitheories provide a foundation. From an individual perspective, theories of motivation are relevant as is research on job satisfaction and reward systems. From a group perspective, Kurt Lewin’s work on norms and values, the work of Chris Argyris on interpersonal competence and organizational learning, and Wilfrid Bion’s theory on the collective unconscious undergird OD practice. And from a total system perspective, Rensis Likert’s focus on consensus and participative management, the work of Paul Lawrence and Jay Lorsch on contingency theory regarding organizational structure, and Edgar Schein’s contribution on organizational culture provide additional theoretical foundation for the field of OD.

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