organization development and reinventing the organization

An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

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Chapter 1

Organization Development and Reinventing the Organization


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Learning Objectives

• Define OD and recognize need for change.

• Describe culture and understand its

impact.

• Understand the psychological contract.

• Describe five stages of OD.


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Challenges for Organizations

• Change avalanching down on us.

• Tomorrow’s world different from today’s.

• Organizations need to adapt to change.

• Organizations in continuous interaction with external forces.


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Figure 1.1The Organizational Environment


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What Is OD?

• Long-range efforts and programs.

• Aimed at improving organization’s ability to survive.

• OD changes problem-solving and renewal processes.


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OD Is:

• Planned.

• Organization wide.

• Managed from top.

• Increases organization effectiveness.

• Planned interventions.

• Uses behavioral science knowledge.


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The Characteristics of OD

• Planned change.

• Collaborative approach.

• Improve performance.

• Humanistic values.

• Systems approach.

• Scientific approaches.


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Table 1.1Major Characteristics of the Field of OD


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Why OD?

Most cited reasons for beginning change program:

• The level of competition.

• Survival.

• Improved performance.


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Primary Goals of Change Programs

• Change the corporate culture.

• Become more adaptive.

• Increase competitiveness.


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Factors Leading to Emergence of OD

• Need for new organizational forms.

• Focus on cultural change.

• Increase in social awareness.


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The Only Constant Is Change

• Change is a moving target.

• Today's managers need new mind-set.

• Flexibility.

• Speed.

• Innovation.

• Constantly changing conditions.


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Successful FirmsShare These Traits

• Faster.

• Quality conscious.

• Employee involvement.

• Customer oriented.

• Smaller.


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Figure 1.2Changing Organization of Twenty-First Century


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Evolution of OD

• Evolved since the late 1940s.

• NTL Laboratory-Training methods.

• Survey research and feedback.


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Who Does OD? (part 1 of 3)

• OD practitioners consist of:

– Specialists.

– Those applying OD in daily work.


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• OD specialists are: – Internal practitioners – from within the

organization.– External practitioners – from outside the

organization.

• Managers apply OD principles and concepts.


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Activities include:

• Team leaders developing teams.

• Building learning organizations.

• Implementing total quality management.

• Creating boundaryless organizations.


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Organization Culture

• Language.

• Dress.

• Patterns of behavior.

• Value system.

• Feelings.

• Attitudes.

• Interactions.

• Group norms.

A system of shared meanings including::


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Norms

• Organized and shared ideas.

• What members should do and feel.

• How behavior is regulated.


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Types of Norms

• Pivotal norms.– Essential to accomplishing organization’s

objectives.

• Peripheral norms.– Support and contribute to pivotal norms.– Not essential to organization’s objectives.


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Socialization Process

• Process that adapts employees to culture.

• New employees become aware of norms.

• Employees encounter culture.

• Individuals understand power, status, rewards, sanctions.


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Figure 1.4The Socialization Process


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Adjustment to Cultural Norms

• Rebellion.– Rejection of all values and norms.

• Conformity.– Acceptance of all values and norms.

• Creative individualism.– Acceptance of pivotal values.– Rejection of others.


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Figure 1.5Basic Responses to Socialization


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Psychological Contract

• Unwritten agreement between individuals and organization.

• Open-ended so issues may be renegotiated.


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A Model for Change

• OD is continuing process.

• Emphasis on viewing organization as total system.

• System consists of interacting and interrelated elements.


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Figure 1.6Organization Development’s Five Stages


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Five-stage Model for OD Process (part 1 of 5)

Stage One

Anticipating Need for Change.

• Someone recognizes need for change.

• Must be felt need for change.


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Stage Two

Develop Practitioner-Client Relationship.

• Practitioner enters system.

• Good first impressions important.

• Practitioner establishes trust and open communication.


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Stage Three

The Diagnostic Phase.

• Practitioner and client gather data.

• Objective to:– Understand client’s problems.– Identify causes.– Select change strategies.


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Stage Four

Action Plans, Strategies, and Techniques

• Series of interventions, activities, or programs.

• Aimed at increasing effectiveness.

• Programs apply OD techniques.


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Stage Five

Self-Renewal, Monitor, and Stabilize.

• As program stabilizes, need for practitioner decreases.

• Monitor results.

• Stabilize change.

• Gradual disengagement of practitioner.


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OD ApplicationGE’s Epicenter of Change

• Leadership Center is tool to spread change.

• OD, leadership, and innovation are applied to real-world.

• Participants include entry-level to highest positions.

• Customers invited to help solve mutual problems.


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• Subjects include leadership and management skills.

• Executive courses are in leadership and strategy.

• Participants are 50% non-U.S.

• New centers have opened outside of U.S.

• GE believes strong leaders are imperative.


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OD ApplicationLeave No One Behind At

Starbucks • Starbucks’ unique culture instrumental

in success.

• Challenge is maintaining “formula” that made them successful.

• CEO communicates strong vision to employees.


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• “Leave no one behind” shows up in training and salaries.

• Starbucks wants self-motivated team players.

• Major objective is maintaining entrepreneurial spirit.


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Key Words and Concepts

• Action research model.– Collecting and feeding back information.– Implementing action programs.

• Change agent.– Person attempting to bring change.

• Client System.– Person or organization that is being

assisted.


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• Creative individualism.– Questioning of peripheral norms.– Accepting of pivotal norms.

• External practitioner.– Person from outside who is resource for

change.

• Internal practitioner.– Internal resource for change.– Could be manager.


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• Norms.– Organized and shared ideas.– What members should do and feel.– How behavior should be regulated.

• Organization culture.– System of shared meanings.– Includes language, dress, values, norms.

• Organization development (OD).– Planned strategy to bring about change.


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• OD practitioner.– People using and assisting others to

implement OD.

• OD specialist.– Professional specialized and trained in OD.

• Peripheral norms.– Support and contribute to pivotal norms.– Not essential to organization's objectives.

• Pivotal norms.– Essential to organization's objectives.


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• Psychological contract.– Expectations between individual and

organization.

• Socialization.– Process of individual adjusting to

organization's culture.


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OD Skills Simulation 1.1Auditioning For The Saturday Night Live Guest Host Spot

• Purpose.– Share expectations between students and

instructor.– Instructor can find out what students

expect.– Students can learn what instructor expects.


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OD Skills Simulation 1.2The Psychological Contract

• Purpose.– Goal is to build trust within class.– Share information about yourself.– Explore values and norms.– Experience interviewing another person.


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Preparations for Next Chapter

• Read Chapter 2.

• Read instructions for Simulation 2.1.– Complete Part A, Steps 1 and 2.– Read “Instructions for Developing OD

Practitioner Roles and Skills.”

• Read and prepare Case: The NoGo Railroad.


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Documents

organization development and reinventing the organization