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What Is Organisational Development (OD) ?

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What is Organisational Development (OD)?

Organization development (OD) is a field of research, theory and practice dedicated


to expanding the knowledge and effectiveness of people to accomplish more
successful organizational change and performance. OD emerged out of human
relations studies in the 1930s, during which psychologists realized that organizational
structures and processes influence worker behaviour and motivation. More recently,
work on OD has expanded to focus on aligning organizations with their rapidly
changing and complex environments through organizational learning, knowledge
management and transformation of organizational norms and values. Key concepts of
OD theory include: organizational climate (the mood or unique personality of an
organization, which includes attitudes and beliefs that influence members collective
behaviour), organizational culture (the deeply-seated norms, values and behaviours
that members share) and organizational strategies (how an organization identifies
problems, plans action, negotiates change and evaluates progress).

Core values of Organisational Development.


Underlying Organization Development are humanistic values. Margulies and Raia
(1972) articulated the humanistic values of OD as follows:
1. Providing opportunities for people to function as human beings rather than as
resources in the productive process.
2. Providing opportunities for each organization member, as well as for the
organization itself, to develop to their full potential.
3. Seeking to increase the effectiveness of the organization in terms of all of its
goals.
4. Attempting to create an environment in which it is possible to find exciting
and challenging work.
5. Providing opportunities for people in organizations to influence the way in
which they relate to work, the organization, and the environment.
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6. Treating each human being as a person with a complex set of needs, all of
which are important to their work and their life.

Objectives
The objectives of OD are:
1. To increase the level of inter-personal trust among employees.
2. To increase employees' level of satisfaction and commitment.
3. To confront problems instead of neglecting them.
4. To effectively manage conflict.
5. To increase cooperation and collaboration among the employees.
6. To increase the organization's problem solving.
7. To put in place processes that will help improve the ongoing operation of the
organization on a continuous basis.
As objectives of organizational development are framed keeping in view specific
situations, they vary from one situation to another. In other words, these programs are
tailored to meet the requirements of a particular situation. But broadly speaking, all
organizational development programs try to achieve the following objectives:
1. Making individuals in the organization aware of the vision of the
organization. Organizational development helps in making employees align
with the vision of the organization.
2. Encouraging employees to solve problems instead of avoiding them.
3. Strengthening inter-personnel trust, cooperation, and communication for the
successful achievement of organizational goals.

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4. Encouraging every individual to participate in the process of planning, thus


making them feel responsible for the implementation of the plan.
5. Creating a work atmosphere in which employees are encouraged to work and
participate enthusiastically.
6. Replacing formal lines of authority with personal knowledge and skill.
7. Creating an environment of trust so that employees willingly accept change.

According to organizational development thinking, organization development


provides managers with a vehicle for introducing change systematically by applying a
broad selection of management techniques. This, in turn, leads to greater personal,
group, and organizational effectiveness.

ORGANISATIONAL DEVELOPMENT INTERVENTION


What is Organisational Development Intervention?
"Interventions" are principal learning processes in the "action" stage
of organization development. Interventions are structured activities used individually
or in combination by the members of a client system to improve their social or
task performance. They may be introduced by a change agent as part of an
improvement program, or they may be used by the client following a program to
check on the state of the organization's health, or to effect necessary changes in its
own behaviour. "Structured activities" mean such diverse procedures as experiential
exercises, questionnaires, attitude surveys, interviews, relevant group discussions,
and even lunchtime meetings between the change agent and a member of the
client organization. Every action that influences an organization's improvement
program in a change agent-client system relationship can be said to be an
intervention.
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Criteria for Effective Interventions


In OD three major criteria define the effectiveness of an intervention:
1. The Extent to which it (the Intervention) fits the needs of the organization.
This criterion concerns the extent to which the intervention is relevant to the
organization and its members. Effective interventions are based on valid information
about the organizations functioning; they provide organization members with
opportunities to make free and informed choices; and they gain members internal
commitment to those choices.
Valid information is the result of an accurate diagnosis of the organizations
functioning. It must reflect fairly what organization members perceive and feel about
their primary concerns and issues. Free and informed choice suggests that members
are actively involved in making decisions about changes that will affect them. It also
means that interventions will not be imposed on them. Internal commitment means
that organization members accept ownership of the intervention and take
responsibility for implementing it. If interventions are to result in meaningful
changes, management, staff, and other relevant members must be committed to
carrying them out.
2. The degree to which it is based on causal knowledge of intended outcomes
Because interventions are intended to produce specific results, they must be based
on valid knowledge that those outcomes actually can be produced. Otherwise, there
is no scientific basis for designing an effective OD intervention. Unlike other exact
sciences (like medicine or engineering) knowledge of the effect of OD interventions
is in a rudimentary stage of development. Moreover, few attempts have been made
to examine the comparative effects of different OD techniques. All of these factors
make it difficult to know whether one method is more effective than another.

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Despite these difficulties, attempts are being made to evaluate different OD


intervention methods, so that we can gain the ability to predict outcomes of various
interventions and thus be able to use the most appropriate interventions for specific
problems.

3. The extent to which the OD intervention transfers changemanagement competence to organization members.
OD interventions can be said to be effective, only if they make the organization
members competent to initiate, implement and monitor change on their own. The
values underlying OD suggest that organization members should be better able to
carry out planned change activities on their own, following the intervention.
They should gain knowledge and skill in managing change from active participation
in designing and implementing the intervention. Competence in change management
is essential in todays environment, where technological, social, economic, and
political changes are rapid and persistent.

Factors That Impact the Success of OD Interventions


I. Factors relating to Change Situation: These relate to the environment of
the organization and include the physical and human environment.
1

Readiness for Change: Intervention success depends heavily on the


organization being ready for planned change. Indicators for readiness
for change include sensitivity to pressures for change (higher
sensitivity means greater readiness to change); dissatisfaction with
the status quo; availability of resources to support change; and,
commitment of significant management time.

Capability to Change: Managing planned change requires


particular knowledge and skills including the ability to motivate

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change, to lead change, to develop political support, to manage


transition, and to sustain momentum. If organization members do not
have these capabilities, then a preliminary training intervention may
be needed to prepare the members for the major change.
3

Cultural Context: The national culture within which an organization is


embedded can exert a powerful influence on members reactions to change,
and so intervention design must account for the cultural values and
assumptions held by organization members. This makes it important for OD
interventions to be adapted to different cultures.
4

Capabilities of the Change Agent (OD Consultant): The success


of OD interventions depend to a great extent on the expertise,
experience and talents of the consultant. No consultant should
undertake to implement

Interventions that are beyond their level of competence or their area of


expertise. The ethical guidelines under which OD practitioners operate
require
Full disclosure of the applicability of their knowledge and expertise to the
clients situation.
AI Factors Related to the Target of Change: These relate to the specific
targets at which OD interventions are targeted. The targets of change can be
different issues of the organization and at different levels.

A Organizational Issues
Strategic Issues: Strategic issues refer to major decisions of organizations such as
what products or services to offer, which markets to serve, mergers, acquisitions,
expansions, etc. OD Interventions aimed at these strategic issues are

called

strategic interventions and are among the most recent OD interventions and include,
integrated strategic change, mergers and acquisitions, trans-organizational
development, organizational learning, etc.
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Technology and Structure Issues: These refer to issues relating to


how organizations divide their work amongst departments and how
they coordinate between departments. They also must make
decisions about how to deliver products or services and how to link
people to tasks. OD interventions aimed at these issues are called
techno-structural interventions and include OD activities relating to
organizational design, employee involvement and work design.

Human Resource Issues: These issues are concerned with attracting


competent people to the organization, setting goals for them,
appraising and rewarding their performance, and ensuring that they
develop their careers and manage stress. OD techniques aimed at
these issues are called human resource management interventions.

Human Process Issues: These issues have to do with social


processes occurring among organization members, such as
communication, decision-making, leadership, and group dynamics.
OD methods focusing on these kinds of issues are called human
process interventions; included among them are some of the most
common OD techniques, such as conflict resolution and team
building.

Overview Of OD Interventions
Human Process Interventions
A. The following interventions deal with interpersonal relationships and
group dynamics.
1. T Groups: This traditional change method provides members with
experiential learning about group dynamics, leadership, and interpersonal
relations. The basic T Group brings ten to fifteen strangers together with a
professional trainer to examine the social dynamics that emerge from their
interactions. Members gain feedback about the impact of their own
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behaviours on each other and learn about group dynamics.


2. Process Consultation: This intervention focuses on interpersonal relations
and social dynamics occurring in work groups. Typically, a process
consultant helps group members diagnose group functioning and devise
appropriate solutions to process problems, such as dysfunctional conflict.
Poor communications, and ineffective norms. The aim is to help members
gain the skills and understanding necessary to identify and solve problems
themselves.
3. Third Party Interventions: This change method is a form of process
consultation aimed at dysfunctional interpersonal relations in organizations.
Interpersonal conflict may derive from substantive issues, such as disputes
over work methods, or from interpersonal issues, such as miscommunication.
The third party intervener helps people resolve conflicts through such
methods as problem solving, bargaining, and conciliation.
4. Team Building: This intervention helps work groups become more effective
in accomplishing tasks. Like process consultation, team building helps
members diagnose group processes and devise solutions to problems. It goes
beyond group processes, however, to include examination of the groups
task, member roles, and strategies for performing tasks. The consultant also
may function as a resource person offering expertise related to the groups
tasks.

B The following Interventions deal with human processes


that are more system wide than individualistic or smallgroup oriented.
1

Organization Confrontation Meeting: This change method mobilizes


organization members to identify problems, set action targets, and begin
working on problems. It is usually applied when organizations are
experiencing stress and when management needs to organize resources for
immediate problem solving. The intervention generally includes various

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groupings of employees in identifying and solving problems.


2

Intergroup Relations: These interventions are designed to improve


interactions among different groups or departments in organizations. The
microcosm group intervention involves a small group of people whose
backgrounds closely match the organizational problems being addressed. This
group addresses the problem and develops means to solve it. The Intergroup
conflict model typically involves a consultant helping two groups understand
the causes of their conflict and choose appropriate solutions.

Large-group Interventions: These interventions involve getting abroad


variety of stakeholders into a large meeting to clarify important values, to
develop new ways of working, to articulate a new vision for the organization,
or to solve pressing organizational problems. Such meetings are powerful
tools for creating awareness of organizational problems and opportunities and
for specifying valued directions for future action.

Grid Organization Development: This normative intervention specifies a


particular way to manage an organization. It is packaged OD program that
includes standardized instruments for measuring organizational practices
and specific procedures for helping organizations to achieve the prescribed
approach.

Techno-Structural Interventions
These interventions deal with an organizations technology (for examples its task
methods and job design) and structure (for example, division of labor and
hierarchy). These methods are becoming popular in OD because of the growing
problems relating to productivity and organizational effectiveness.
These interventions are rooted in the disciplines of engineering, sociology, and
psychology and in the applied fields of socio-technical systems and organization
design. Consultants place emphasis both on productivity and human fulfillment.
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Structural Design: This change process concerns the organizations division


of labor how to specialize task performances. Interventions aimed at
structural design include moving from more traditional ways of dividing the
organizations overall work (such as functional, self-contained-unit, and
matrix structures) to more integrative and flexible forms (such as processbased and network-based structures). Diagnostic guidelines exist to determine
which structure is appropriate for particular organizational environments,
technologies, and conditions.

Downsizing: This intervention reduces costs and bureaucracy by


decreasing the size of the organization through personnel layoffs,
organization redesign, and outsourcing. Each of these downsizing methods
must be planned with a clear understanding of the organizations strategy.

3 Re-engineering: This recent intervention radically redesigns the organizations core


work processes to create tighter linkage and coordination among the different tasks.
This workflow integration results in faster, more responsive task performance.
Reengineering is often accomplished with a new information technology that permits
employees to control and coordinate work processes more effectively. Reengineering
often fails if it ignores basic principles and processes of OD.
The next three interventions: Parallel Structures, High-involvement organizations
and Total Quality Management (TQM), fall under the broad category of
interventions called Employee Involvement (EI) interventions. These interventions
are aimed at improving employee well-being and organizational effectiveness.

Parallel Structures: This intervention involves members in resolving ill-defined,


complex problems and build adaptability into bureaucratic organizations. Also
known as collateral structures, Dualistic structures or shadow structures,
parallel structures operate in conjunction with the formal organization. They
provide members with an alternative setting in which to address problems and to

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propose innovative solutions free from the formal organization structure and
culture. For example, members may attend periodic off-site meetings to explore
ways to improve quality in their work area or they may be temporarily assigned to
a special project of facility to devise new products or solutions to organizational
problems. Parallel structures facilitate problem solving and change by providing
time and resources for members to think, talk, and act in completely new ways.
Consequently, norms and procedures for working in parallel structures are
entirely different from those of the formal organization.
5

High-involvement Organizations (HIOs): These interventions are aimed at


creating organizations with high involvement of employees.
They create organizational conditions that support high levels of employee
participation. What makes HIOs unique is the comprehensive nature of their
design process. Unlike parallel structures that do not alter the formal organization,
in HIOs almost all organization features are designed jointly by management and
workers to promote high levels of involvement and performance, including
structure, work design, information and control systems, physical layout,
personnel policies, and reward systems. Some of the features of HIOs are:
a

Employees have considerable influence over decisions


bMembers receive extensive training in problem-solving techniques,
plant operation, and organizational policies.
cInformation is shared widely within the organization and employees
have easy access to operational and issue-oriented information.

d
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Rewards are tied closely to unit performance.

Total Quality Management: TQM is the most recent and, along with highinvolvement organizations, the most comprehensive approach to employee
involvement. Also known as continuous process improvement and continuous
quality, TQM grew out of a manufacturing emphasis on quality control and
represents a long-term effort to orient all of an organizations activities around the
concept of quality. Quality is achieved when organizational processes reliably

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produce products and services that meet or exceed customer expectations.


Although it is possible to implement TQM without employee involvement,
member participation in the change process increases the likelihood that it will
become part of the organizations culture. Today, continuous quality improvement
is essential for global competitiveness.
7

Work design: This refers to OD interventions aimed at creating jobs, and


work groups that generate high levels of employee fulfillment and
productivity. This techno-structural intervention can be part of a larger
employee involvement application, or it can be an independent change
program. Work design has been researched and applied extensively in
organizations. Recently, organizations have tended to combine work design
with formal structure and supporting changes in goal setting, reward systems,
work environment,

and other performance management practices.


There are three approaches to work design. The Engineering approach focuses
on efficiency and simplification, and results in traditional job and work group
designs. Telephone operators and data-entry positions are examples of this job
design. A second approach is work enrichment and rests on motivational theories
and attempts to enrich the work experience. Job enrichment involves designing
jobs with high levels of meaning, discretion, and knowledge of results. A wellresearched model focusing on job attributes has helped clear up methodological
problems with this important intervention. The third approach is socio-technical
approach and seeks to optimize both social and technical aspects of work systems.
This method has led to a popular form of work design called self managed
teams which are composed of multi-skilled members performing interrelated
tasks. Members are given the knowledge, information, and power necessary to
control their own task behaviors with relatively little external control.

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Human Resource Management Interventions


1

Goal Setting: This change program involves setting clear and challenging
goals. It attempts to improve organization effectiveness by establishing a better
fit between personal and organizational objectives. Managers and subordinates
periodically meet to plan work, review accomplishments, and solve problems in
achieving goals.

Performance Appraisal: This intervention is a systematic process of jointly


assessing work-related achievements, strengths and weaknesses, It is the
primary human resources management intervention for providing performance
feed-back to individuals and work groups. Performance appraisal represents an
important link between goal setting and reward systems.

3 Reward Systems: This intervention involves the design of organizational rewards to


improve employee satisfaction and performance. It includes innovative approaches to
pay, promotions, and fringe benefits.
4

Career Planning and development: This intervention helps people choose


organizations and career paths and attain career objectives. It generally focuses
on managers and professional staff and is seen as a way of improving the quality
of their work life.

Managing workforce diversity: This change program makes human resources


practices more responsive to a variety of individual needs. Important trends,
such as the increasing number of women, ethnic minorities, and physically and
mentally challenged people in the workforce, require a more flexible set of
policies and practices.

Employee Wellness: These interventions include employee assistance programs


(EAPs) and stress management. EAPs are counselling programs that help
employees deal with substance abuse and mental health, marital, and financial
problems that often are associated with poor work performance.

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Stress management programs help workers cope with the negative


consequences of stress at work. They help managers reduce specific sources of
stress, such as role conflict and ambiguity, and provide methods for reducing
such stress symptoms as hypertension and anxiety.

Strategic Interventions
These interventions link the internal functioning of the organization to the larger
environment and transform the organization to keep pace with changing conditions.
These interventions are amongst the newest additions to OD interventions. They are
implemented organization-wide and bring about a fit between business strategy,
structure, culture and the larger environment.
1

Integrated Strategic Change: This comprehensive OD intervention describes


how planned change can make a value-added contribution to strategic
management. It argues that business strategies and organizational systems must
be changed together in response to external and internal disruptions. A strategic
change plan helps members manage the transition between a current strategy and
organization design and the desired future strategic orientation.

Trans organization development: This intervention helps organizations to


enter into alliances, partnerships and joint ventures to perform tasks or solve
problems that are too complex for single organizations to resolve. It helps
organizations recognize the need for partnerships and develop appropriate
structures for implementing them.

Merger and Acquisition Integration: This intervention describes how


OD practitioners can assist two or more organizations to form a new entity.
Addressing key strategic leadership and cultural issues prior to the legal
and financial transaction helps to smooth operational integration.

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Culture Change: This intervention helps organizations to develop cultures


(behaviors, values, beliefs and norms) appropriate to their strategies and
environments. It focuses on developing a strong organization culture to
keep organization members pulling in the same direction.

Self-designing organizations: This change program helps organizations gain


the capacity to alter themselves fundamentally. It is a highly participative
process, involving multiple stakeholders in setting strategic directions and
designing and implementing appropriate structures and processes. Organizations
learn how to design and implement their own strategic changes.

6 Organization learning and knowledge management: This intervention describes two


interrelated change processes: organization learning (OL), which seeks to enhance an
organizations capability to acquire and develop new knowledge; and knowledge
management (KM), which focuses on how that knowledge can be organized and used to
improve organization performance. These interventions move the organization beyond
solving existing problems so as to become capable of continuous improvement.

The following a few of most common OD Interventions, that most of the


companies practice:
1. Applying criteria to goals
2. Establishing inter-unit task forces
3. Experimentation with alternative arrangements
4. Identifying Key Communicators
5. Identifying Fireable Offenses
6. In-Visioning
7. Team Building
8. Inter-group Problem Solving
9. Management / Leadership Training
10. Setting up measurements

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A BRIEF ON EACH OF THE ABOVE, WITH EXAMPLES


OD practitioners choose the most appropriate OD Intervention, to create "Planned
Change."
1. Applying criteria to goals
Here the leadership establishes objective criteria for the outputs of the organization's
goal-setting processes. Then they hold people accountable not only for stating goals
against those criteria but also for producing the desired results.
Example:
Organizations are implementing the concept of Balanced Scorecard, X-Matrix etc., to
capture the goals of the employees, which in turn is helpful in their assessment and midterm correction of their performance.

2. Establishing inter-unit task forces


These groups can cross both functional parts of the organization (the "silos") as well as
employee levels. They are ideally accountable to one person and are appropriately
rewarded for completing their assigned task effectively. Then they disband.
Example:
Organizations have introduced various schemes for rewarding their employees for their
performance, like:
- Introducing the concept of Variable pay in as a part of CTC
- Spot Recognition Award
- Project bonus, performance bonus etc.,

3. Experimentation with alternative arrangements


Today organizations are subject to "management by best-seller." The goal in these
interventions is to create what is being called a "learning organization," one that
performs experiments on organizational structure and processes, analyzes the results, and
builds on them.

Example:
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Organizations today are targeting at streamlining the process of Learning and


Development and encouraging the culture of Learning in the organizations.
- Targeting achieving mandatory man-days of training for their employees
- Introducing the Competency based practices

4. Identifying "key communicators"


This is to carefully determine who seems to be "in the know" within the organization.
These people often do not know that they are, in fact, key communicators. This
collection of individuals is then fed honest information during critical times, one-on-one
and confidentially.
Example:
Defining the process of Organizational Communication policy
- Introducing Top down and Bottom up Communication approach
- Introducing Employee Forums and Suggestion Box options for employee interaction
- Identifying Critical employees in the organization and making them the Brand
Ambassadors of their company

5. Identifying "Fireable Offenses"


This intervention deepens the understanding of and commitment to the stated values of
the organization. This facilitates the work of the Top Management to answer the critical
question, "If we're serious about these values, then what might an employee do that
would be so affronted to them that he/she would be fired?"
Example:
- Publishing and Instilling Values and Beliefs among all employees
- Introducing Policies like Whistle Blowing, Sexual Harassment etc.,

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In-visioning
This is actually a set of interventions that help to "acculturate" everyone in the
organization into an agreed-upon vision, mission, purpose, and values. The
interventions might include training, goal setting, organizational survey-feedback,
communications planning, etc.

7. Team Building
This intervention can take many forms.
Example:
The most common is interviews and other pre-work, followed by a one- to threeday offsite session. During the meeting the group diagnoses its function as a unit
and plans improvements in its operating procedures.

8. Inter-group Problem Solving


This intervention usually involves working with the two groups separately before
bringing them together. They establish common goals and negotiate changes in
how the groups interface.
Example:
This is practiced in Product Development Companies and most of the IT and
ITES Companies.
- Focused group discussion are encouraged by the management, for generating
better ideas and concepts

9. Management/leadership training
Many OD professionals come from a training background. They understand that
organizations cannot succeed long term without well-trained leaders. The OD
contribution there can be to ensure that the development curriculum emphasizes
practical, current situations that need attention within the organization and to
monitor the degree to which training delivery is sufficiently participative as to

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promise adequate transfer of learnings to the job.


Example:
Most of the organizations today are focusing at Leadership Management for their
employees. Earlier, this was targeted to the Top Management alone, but now,
organizations are seeing its relevance to inculcate the leadership skills in their
middle management and junior management as well.
- Business Organization Retreat (BOD) is being the most common practice, is a
part of this initiative.

10. Setting up measurement systems


The total-quality movement emphasizes that all work is a part of a process and
that measurement is essential for process improvement. The OD professional is
equipped with tools and techniques to assist leaders and others to create
measurement methods and systems to monitor key success indicators.
Example:
- The concepts like Six Sigma, TQM etc act as Measurements tools for the
process followed in the organization.

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COMPANY PROFILE
Bharat Heavy Electricals Limited (BHEL) owned by the Government of India, is a
power plant equipment manufacturer and operates as
an engineering and manufacturing company based in New Delhi, India. Established in
1964, BHEL is India's largest engineering and manufacturing company of its kind. The
company has been earning profits continuously since 1971-72 and paying dividends
uninterruptedly since 1976-77.
It has been granted the prestigious Maharatna status in 2013 by Govt of India for its
outstanding performance. The elite list of maharatna contains another 6 behemoth PSU
companies of India.

History
BHEL was established in 1964. Heavy Electricals (India) Limited was merged with
BHEL in 1974.[2] In 1982, it entered into power equipment, to reduce its dependence on
the power sector. It developed the capability to produce a variety of electrical, electronic
and mechanical equipments for all sectors, including transmission, transportation, oil
and gas and other allied industries.[2] In 1991, it was converted into a public limited
company. By the end of 1996, the company had handed over 100 Electric Locomotives
to Indian Railway and installed 250 Hydro-sets across India.[2]

Operations
BHEL is engaged in the design, engineering, manufacturing, construction, testing,
commissioning and servicing of a wide range of products, systems and services for the
core sectors of the economy, viz. power, transmission, industry, transportation, renewable
energy, oil & gas and defiance.
It has a network of 17 manufacturing units, 2 repair units, 4 regional offices, 8 service
centers, 8 overseas offices, 15 regional centers, 7 joint ventures, and infrastructure
allowing it to execute more than 150 projects at sites across India and abroad. The
company has established the capability to deliver 20,000 MW p.a. of power equipment to
address the growing demand for power generation equipment.
BHEL has retained its market leadership position during 2013-14 with 72% market share
in the Power Sector. An improved focus on project execution enabled BHEL record its
highest ever commissioning/synchronization of 13,452 MW of power plants in domestic
and international markets in 2013-14, marking a 30% increase over 2012-13. The

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Company has added more than 1, 24,000 MW to the country's installed power generating
capacity so far.
It also has been exporting its power and industry segment products and services for over
40 years. BHEL's global references are spread across over 76 countries across all the six
continents of the world. The cumulative overseas installed capacity of BHEL
manufactured power plants exceeds 9,000 MW across 21 countries
including Malaysia, Oman, Iraq, UAE, Bhutan, Egypt and New Zealand. Their physical
exports range from turnkey projects to after sales services.[4]

Main manufacturing facilities

Centralized Stamping Unit & Fabrication Plant (CSU & FP), Jagdishpur

Insulator Plant (IP), Jagdishpur

Electronics Division (EDN), Bangalore

Industrial Systems Group (ISG), Bangalore

Electro-Porcelains Division (EPD), Bangalore

Heavy Electrical Plant (HEP), Bhopal

Industrial Valves Plant (IVP), Goindwal

Heavy Electrical Equipment Plant (HEEP), Ranipur (Haridwar)

Central Foundry Forge Plant (CFFP), Ranipur (Haridwar)

Heavy Power Equipment Plant (HPEP), Hyderabad

Transformer Plant (TP), Jhansi

Boiler Auxiliaries Plant (BAP), Ranipet

Component Fabrication Plant (CFP), Rudrapur

High Pressure Boiler Plant (HPBP), Tiruchirappalli

Seamless Steel Tube Plant (SSTP), Tiruchirappalli

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Power Plant Piping Unit (PPPU), Thirumayam

Heavy Plates & Vessels Plant (HPVP), Visakhapatnam

The company is also setting up a new Greenfield Power Equipment Fabrication Plant
(GPEFP) at Bhandara, Maharashtra, the foundation stone for which was laid on 14 May
2013. Further, BHEL is planning to enter solar manufacturing in a big scale, as it has
announced its plans for a 600 MW Solar Module Factory.[5]

Products and services

Thermal power Plants

Nuclear power Plants

Gas based power Plants

Hydro power Plants

DG power Plants

Boilers (steam generator)

Boiler Auxiliaries

Gas generator

Hydro generator

Steam turbine

Gas turbine

Hydro turbine

Transformer

Switchgear

Oil field equipment

Boiler drum

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Piping System

Soot Blowers

Valves

Seamless Steel Tubes

Condenser s and Heat exchangers

Pumps

Desalination and Water treatment plants

Automation and Control systems

Power electronics

Transmission system control

Semiconductor devices

Solar photo voltaics

Software system solutions

Bus ducts

Insulators

Control panels

Capacitors

Bushings

Electrical machines

DC, AC heavy duty Motors

Compressors

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Control gears

Traction motors

Research and development products

Awards and recognitions

It is the 7th largest power equipment manufacturer in the world.

BHEL was adjudged the Best Power Equipment Manufacturing Organization by


CBIP

The company bagged PSE Excellence Award 2014 for R&D & Technology
Development

BHEL received the National Intellectual Property Award 2014 and WIPO Award
for Innovative Enterprises

In 2014, BHEL won ICAI National Award for Excellence in Cost Management
for the ninth consecutive year.

BHEL received two awards in CII-ITC Sustainability Awards 2012 from the
President of India.

In the year 2011, it was ranked ninth most innovative company in the world by
US business magazine Forbes.

The company won the prestigious Golden Peacock Award for Occupational
Health & Safety 2011 for significant achievements in the field of Occupational
Health & Safety.

It is also placed at 4th place in Forbes Asia's Fabulous 50 List of 2010.

Research and development


BHEL's investment in R&D is amongst the largest in the corporate sector in India.
During the year 2012-13, the company invested about Rs. 1,252 Crore on R&D efforts,
which corresponds to nearly 2.50% of the turnover of the company, focusing on new
product and system developments and improvements in existing products for cost
competitiveness, higher reliability, efficiency, availability and quality etc. To meet
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customer expectations, the company has upgraded its products to contemporary levels
through continuous in-house efforts as well as through acquisition of new technologies
from leading engineering organizations of the world. The IPR (Intellectual Property
Rights) capital of BHEL grew by 21.5% in the year, taking the total to 2170.

The Corporate R&D division at Hyderabad leads BHELs research efforts in a number of
areas of importance to BHELs product range. Research & product development (RPD)
Groups for each product group at the manufacturing divisions play a complementary
role. BHEL has established Centers of Excellence for Simulators, Computational Fluid
Dynamics, Permanent Magnet Machines, Surface Engineering, Machine Dynamics,
Centre for Intelligent Machines and Robotics, Compressors & Pumps, Centre for Nano
Technology, Ultra High Voltage Laboratory at Corporate R&D; Centre of Excellence for
Hydro Machines at Bhopal; Power Electronics and IGBT & Controller Technology at
Electronics Division, Bengaluru, and Advanced Fabrication Technology and Coal
Research Centre at Tiruchirappalli.
BHEL has established four specialized institutes, viz., Welding Research Institute (WRI)
at Tiruchirappalli, Ceramic Technological Institute (CTI) at Bangalore, Centre for
Electric Traction (CET) at Bhopal and Pollution Control Research Institute (PCRI) at
Haridwar. Amorphous Silicon Solar Cell plant at Gurgaon pursues R&D in Photo Voltaic
applications.
Significantly, BHEL is one of the only four Indian companies and the only Indian Public
Sector Enterprise figuring in 'The Global Innovation 1000' of Booz & Co., a list of 1,000
publicly traded companies which are the biggest spenders on R&D in the world.

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Organizational Development Intervention in BHEL

In order to develop & improve the effectiveness of the human resources in the
Organisation, a committee called Human Resources Committee was first constituted by
BHEL in Bhopal in 1976. The committee is the central body and plays the central role in
implementation of all OD efforts. With the help of external and internal resource persons,
a number of programmes/workshops have been organised for the development of the
members of this committee improving their problem solving capabilities and decision
making. The range of OD interventions are described below.
Job Redesign and Work commitment as an OD intervention
In one of the BHEL units (Hardwar) Job redesign was taken up and as an OD
intervention in 1975. This experiment was pursued for around 4 years and very
encouraging results were obtained.
i) A more satisfying job, due to increased variety and relief from boredom and monotony
ii) Personal growth for all, by learning additional skills of other trends and acquiring
leadership Qualities
iii) Reduction in health/safety hazards
iv) An atmosphere with less tension and jealousy
v) An improved team spirit and morale resulting in improved communication and human
relationship
vi) Increased self-esteem and pride among the workers.
Workshops were conducted and it was found to be very useful and threw up more
questions for wider debate and discussions. By using survey method, a list of
programmes or subjects or themes is sent to various. H. O. Ds who respond by ticking
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the appropriate ones for their executives. As a result of various diagnostic exercises some
critical needs of training and development are identified. The workshops on various
themes also give valuable idea of the areas requiring more thrust by way of training and
development and specific training and development needs are thus identified.
Based on role analysis a draft system with the following objectives has been circulated
by the Corporate Personnel for the comments of Personnel/Training (HRD)/Divisional
Heads.
. Helping the executives to become more effective in their present and future jobs.
. Enabling the executives to perform at optimum level by determining and meeting their
growth needs.
. Helping the executives to visualise their roles more clearly.
. Preventing the obsolescence of their technical and managerial skills.
. Optimising the utilization of training resources by providing appropriate inputs.
. Facilitating the design of need based programmes and identify the training and
development needs.
. Preparing data bank of capabilities required for various positions.
. Facilitating job rotation, career and succession planning.
Once implemented, it will provide a valuable data base for planning, training and
development activities and identifying appropriate candidates for programms.

Performance Appraisal and Potential Appraisal


In BHEL it has remained so far that the role of superior was limited to evaluator or judge
and the role of the appraise was passive. Now the superiors role is being conceived as
helper and counsellor and the appraise is encouraged to become more involved and
committed in achieving the objectives.

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Performance feedback and Counselling


The need and importance of performance feedback and counselling has been realized.
Attempts are being made to cover maximum number of executives in various
programme/workshops on performance feedback and counselling to enable them to
practice it as an important tool for Human Resource Development. The supervisors also
will be covered in such efforts.

Career Planning and Development


Time-cum-merit based promotion was practiced which is able to satisfy the individuals
and organizational needs to a great extent. The employees are encouraged and helped to
plan a career path. They are liberally sponsored to higher educational programmes in
IIMS/IITs

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