Organizational Development

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CASE STUDY MODULE 17
ORGANIZATIONAL DEVELOPMENT

PQHRM/53-025
H E B MARASINGHE

Contents
Acknowledgement3
Introduction to the case study4
Literature Review5
What is OD intervention ?5
Factors That Impact the Success of OD Interventions can be listed under two main headings,5
Intervention Categories7
The process of Organizational Development9
Change management11
Report to be given to CEO of Nuran food products12
Implementing an effective and successful OD process12
Impact of Closing down of plant in Kandy15
Recommendations16

Acknowledgement
I would like to thank all the lecturers at the Institute of Personnel Management, specially to all the tutors who guided and helped me to complete the 17th module case study successfully. And all my friends who helped me in numerous ways to complete the case study and to understand the subject matter.

Introduction to the case study

Nuran food products (NFP) is supplier of processed bottle food products to leading super market chain. Presently two factories are operating one in Kandy and the other plant in Colombo. Both of the plants uses traditional simple techniques in the production process, and these plants are operated by extremely loyal employees to the organization but not very educated and with very limited English knowledge. Presently the company is enjoying a good market share and the management has considered renovating the factories with state of the art equipment with the view of enhancing the production capacity. If new machinery is bought in the Colombo plant itself alone can meet the current market demand, and the Kandy plant could be closed down to minimize the overhead cost and to maximize the revenues. The new processing machinery equipment requires sophisticated skills from production operators including reading technical manuals, operating computerized equipment and performing a wide variety of other tasks. The vendor suggests that the new equipment is most effective when the employees are organized in to self managed teams. Presently the workforce is 65, and with the new modernized plant it will only require 55 employees. A manager who is supporting the modernization process has said that only 10 jobs are affected, and the HR implications are minimal. Under the case study a detail study will be carried out on all implications of the plant modernization in Colombo and Closure of plant in Kandy.

Literature Review
Considering the above scenario the organization is planning to do a development to the current organization. What is organization development?
Organizational development is concerned with the planning and implementation of programmes designed to enhance the effectiveness with which an organization functions and responds to change. Overall, the aim is to adopt a planned and coherent approach to improving organizational effectiveness. An effective organization can be defined broadly as one that achieves its purpose by meeting the wants and needs of its stakeholders, matching its resources to opportunities, adapting flexibly to environmental changes and creating a culture that promotes commitment, creativity, shared values and mutual trust. An organization is the planned coordination of the activities of a number of people for the achievement of some common explicit purpose or goal, through division of labor and function, and through a hierarchy of authority and responsibility - (Edgar Shein) An organization development is done through planned organization interventions. What is OD intervention ?

The term Intervention refers to a set of sequenced, planned actions or events intended to help an organization to increase its effectiveness. Interventions purposely disrupt the status quo; they are deliberate attempts to change an organization or sub-unit toward a different and more effective state Criteria for Effective Interventions

In OD three major criteria define the effectiveness of...
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