OD and Privatization Programs in the Third World

Paper Summary:

Considering the failure of many developing countries to conduct successful market liberalization and privatization programs that would integrate them into the global market economy and global financial systems, this paper asks how organizational development strategies could prove useful and increase opportunities for success. Beginning with the argument that privatization was a revolutionary transition, requiring the implementation of radical changes at all of the organization, group, and individual levels, based upon diagnosis of problems and definition of change forms and procedures, the research argues that success was contingent upon the translation of organizational development theory into practice and that failure was the logical outcome of overlooking this. The paper includes a table.

From the Paper:

"Conversely, private sector organizations, while having a downward flow of command hierarchy, does encourage employee feedback, further deploying motivation strategies designed to positively impact both input and output. Employees know that the harder they work, the better quality goods they produce and the more innovative they are, will positively influence the organization's financial standing and that they, themselves, will be individually rewarded for their efforts. Data revealed that such a reward system is absent in the public sector. Therefore, the attitudes of these organizations are different, the one giving rise to a work force that is almost entirely distanced from the organization and the other to a workforce that does feel an affinity, loyalty and identification with the organization."

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