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Unit 7: OD Intervention

Departmentalisation by Process or Equipment Notes

It in refers to jobs and activities’ which require a specific type of technology, machine or
production process. Other common bases for Departmentalisation can be time of duty, number
of employees market, distribution channel or services.

7.6 Decentralisation and Centralisation

Decentralisation refers to decision making at lower levels in the hierarchy of authority. In
contrast, decision making in a centralised of organisational structure at higher levels. The degree
of centralisation and de-centralisation depend on the number of levels of hierarchy, degree of
coordination, Specialisation and span of control. According to Luthans (1986), centralisation and
de-centralisation could be according to:
 Geographical or territorial concentration or dispersion of operations;

 Functions; or
 Extent of concentration or delegation of decision-making powers.

7.7 Strategic Interventions

Strategic Planning

A dynamic process which defines the organisation’s mission and vision sets goals and develops
action steps to help an organisation focus its present and future resources toward fulfilling its
vision. Many organisations today were facing external threats to their survival, whether it be
from takeovers “technological obsolescence or global competition. In its infancy, OD would
have responded to such challenges by preaching participative management, a not so subtle way
of challenging top management to redistribute power to lower levels. During the later years,
OD reversed fields to serve the power structure through confining its techniques to lower levels
and the bottom line, such as Quality of Work Life (QWL) programs. This subservient role for OD
had continued up to recent times where the power structure tolerates and even encourages OD
so long as it fine-tunes the existing situation without threatening the essence of the power
system. Now, however, that essence is threatened by outside forces. A “new” OD is emerging to
deal more directly with helping the power structure to change not only itself but also the
strategic alignment of the firm with its environment. OD can, if properly devised, provide a
more effective process than political bargaining for assisting the dominant coalition to address
pressing strategic issues that have so far eluded formal approaches to strategic planning. OD
must engage the most cherished agenda of the power elite- the strategy of the company, its top
management structure for delivering on strategy and the manner in which they will lead.

Technology and OD Solutions

Element of OD may include finding ways to adapt to the changing context while maintaining
and enhancing the organisation’s integrity and internal integration. OD involves establishing
structures, processes and a climate that allow it to effectively manage its important and pressing
business (e.g. projects, problems, crises, etc.) while giving adequate attention to strategic issues
(e.g., long-term development and renewal, planning and envisioning, engaging new
opportunities, crisis prevention, etc.). Technologies are also used to enable OD intervention
sand improve human connectivity better team work.

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