System Ramifications

 An extensive ripple effect occurs as OD

interventions begin to occur in an
organization.
 These effects or implications arising from the

occurrence of the OD interventions are known

as system ramifications.
1.HUMAN RESOURCE LEADERSHIP &
INVOLVEMENT

 OD efforts and HR policies are inevitably

interdependent.
 OD efforts have implications for staffing, rewards,
training & development, labor relations and so on.
 Also OD practitioners typically report to senior HR
executive.
 Furthermore, in some organizations, HR
professionals are expected to have or develop
expertise in OD.
2. Resistance to change efforts
 Whenever employees perceive possibility of loss of
position or status, or loss of use of present competencies,
or they have experienced duplicity or futile extra work in
past change efforts, resistance is likely to emerge.
 Obvious implication is that management should reassure
people as clearly as possible about those areas that
present no need for concern and those areas that are
likely to see benefits, along with establishing realistic
expectations about the pains and challenges that will
occur.
Contd…
 OD practitioners have a major role in:
 recommending participative processes that will
minimize resistance,
 in urging top mgmt to pay attention to issues of
fairness and communication.
 3.LEADERSHIP AND LEADERSHIP STYLE

 Kotter says that OD efforts require a kind of leadership

that’s different from management.
 Leadership acc to Kotter involves establishing direction,
aligning people, motivating and inspiring which requires
appealing to basic, often untapped human needs,
emotions and values.
 Many times, OD efforts that appear to be highly
successful under a division head, may fail under another.
 This implies that for continuity of effort, top mgmt
should be prepared to select replacement executives who
can carry the process forward.
Contd…
 The leadership style in organizations undergoing a
large scale OD effort must be highly interactive,
shared process(employee involvement), with
members of all teams developing skills in this shared
process.
4. TRAINING & DEVELOPMENT OF
CONSULTATION SKILLS

 Training is extremely important to develop competencies

for new assignments arising out of organizational change.
 OD process itself suggests the need for some additional
kinds of training.e.g. managers and teams at all levels
need training in group problem solving, effective group
participation, management of team meetings.
 In addition, development of facilitator & consultation
skills by organizational members can be valuable adjunct
to OD process and to organization’s functioning.
5. Rewards
 Both theory & experience suggest that organization
processes that depend on cooperation, teamwork, and effort
of organizational members must pay attention to the
allocation of rewards if the process has to sustain.
 Vice-versa, when OD efforts are supported by recognition
of individual and team efforts, and by financial rewards
consistent with goal attainment, OD efforts are likely to be
sustained.
 Scanlon plan involving organization wide gain sharing,
profit sharing and individual incentive plans are useful in
this direction.
6. Constructive Feedback
 Because extensive data gathering is an integral
part of OD effort, people will have to learn how
to give and manage feedback in such a way that
it is constructive and not destructive.
 Encouraging constructive feedback means
training people in giving & receiving feedback
and paying attention to various feedback
systems– from interpersonal exchanges to
subunit production or cost data and to the result
of organization wide surveys.
Contd…
 At the interpersonal level feedback is most constructive
when:
 Immediate after the event

 Specific

 Nonjudgmental

 When basic motive is to improve rather than punish

 Given in private or supportive atmosphere

 Given in the spirit of mutual give and take

 Given in context of sharing appreciations as well as

concerns
Contd…
 At the subunit level or cost data, feedback is
most useful when it is reported:
 Directly to the manager or team who can take
action rather than to the top mgmt.
 Frequently enough so that remedial action can be
planned
 Specifically, so that the team can easily identify the
problem
Contd…
 In case of attitude surveys, feedback is most
constructive:
 When it is sought by the leader & unit involved
 When unit data and aggregate organizational data are
reported to the respective manager
 When managers and subordinate discuss the data and
make action plan(may be with the help of 3rd party
Acc to Nadler, greater the participation by
members of the organization in the collection-
feedback process, the more changes come
form data.
7. Staffing and career development
 Various aspects of staffing & career development can be affected
by OD effort & vice versa:
 Selection
 Increasing degree of participation by peers in evaluation & selection
of candidates is necessary
 Training of present employees in effective interviewing
 Team member involvement in selection of both team leader and new
team members
 Orientation and Assimilation(“joining up process”)
 Group methods in orientation & assimilation are useful
 Sessions under the guidance of a facilitator having skills in group
processes can do much to alleviate anxieties
Contd…
 Career Development & Progression
 If OD process aims to shift the org culture towards more
openness, more mutual support and improved personal
development, then career and growth aspirations of org
members must be an area of concern
 If resources are committed to “career planning”, another shift
that will occur is: climate could move away suppressing the
dialogue about leaving the organization towards openly
facing issue of internal vs. external career opportunities
 Another outcome might be more attention to development of
“career ladders”
Contd…
 Career Development & Progression
 “Assessment center”- companies using assessment centers
typically give candidate, an extensive set of tests and
involve the candidate in interviews and group discussions
& other group situations. Trained managers then making
ranking of the performances of candidates.
Contd…
 Layoffs and other crises
 OD efforts play an important role in managing the effect of
layoffs by assisting those being laid off to enable them to
overcome their disappointments and make plans for a job search
 OD techniques are also used to help the group face realities of
situation and cope with cutback.
 OD interventions can also assist the organization in dealing with
other crises such as flood or earthquake, death of top executive,
fire explosion, plant closure wherein OD facilitators along with
medical counselors can assist individuals deal with shock.
8.Organizational Justice

 A shift in org culture towards more openness, does

facilitate the airing of felt injustices
 But this does not imply, doing away with
formalized appeal procedures
 Its important for a system that values openness to
retain mechanisms that protect openness
 9. Labor Relations
 Joint efforts on part of mgmt and union leadership to
move towards a problem solving, mutual reward kind of
bargaining would be congruent with the philosophy of
OD.
 Practices such as “integrative bargaining”, “Relations by
Objective” encompass this approach
 Guidelines for labor-mgmt relations in OD effort are:
 Participation in groups such as QCs should be voluntary
 Committees should focus on improving productivity,
customer/supplier relations
 Meetings should not be held that appear to be negotiations
between mgmt and labor over terms of employment
10.Monetary costs & skill demands
 The use of external and internal third parties in the
role of facilitators, use of workshops, additional
training programs are obviously going to cost money.
 In addition, the costs in terms of efforts, time and
skill demands should also be considered.
 While the new culture, towards which the org moves
through OD efforts, may be more rewarding, it is at
the same time likely to be more difficult and
challenging as well.