24083-Brown7 01 Updated

Chapter 1

An Experiential Approach to Organization Development 7th edition

Chapter 1

Organization Development and Reinventing

the Organization

Unit 1 – Session 1


Chapter 1

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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The Workout: Organization

Changes at GE (part 1 of 2)

GE has training center for managers.

Participants said GE was slow to make

changes.

Workout is program that came from sessions.


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The Workout: Organization

Changes at GE (part 2 of 2)

In workout employees take the leadership in

bringing about changes.

GE continues to use workout so it can reinvent

itself.


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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 1.1

The Organizational Environment


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Course Outline

Copyright © 2005 Prentice Hall, Inc. All rights reserved.

3–8 Exhibit 3.11

Organizational Stakeholders


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What Is OD?

Long-range efforts and programs aimed at

improving an organization’s ability to survive

by changing 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 1.1

Major Characteristics of the Field of OD


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Our Changing World:

Germany in Slow-mo (part 1 of 2)

Germany entering 2nd decade of stagnation.

A model of world in ‘70s and ‘80s.

Reputation as Europe’s unchanging core.

History of blaming others for problems.


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Our Changing World:

Germany in Slow-mo (part 2 of 2)

Some looking inward for causes.

Problem traced to job-protection law of ‘50s.

Unions block proposals to reform labor laws.


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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

Increase productivity.

Increase responsiveness.

Improve competitive position.

Increase employee involvement.

Increase employee morale.

Develop new managerial skills.


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Table 1.2

Major Goals of Large-Scale Change Programs


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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

Today's managers need new mind-set.

Flexibility.

Speed.

Innovation.

Constantly changing conditions.


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Successful Firms

Share These Traits

Faster.

Quality conscious.

Employee involvement.

Customer oriented.

Smaller.


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Figure 1.2

Changing Organization of Twenty-First Century


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OD in Practice:

Trilogy Software (part 1 of 2)

Trilogy Software example of shifting

organizational structures.

Workers are shareholders, managers, and

partners.

Biggest worry is not facing down other

businesses.


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OD in Practice:

Trilogy Software (part 2 of 2)

Depends on talented people.

Economy fostering new kinds of practices.

This case shows major element in planned

change is planning for organizational culture.


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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 and those

applying OD in daily work:

Professionals and specialists trained in OD.

Managers and leaders applying OD.


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OD specialists:

• Internal practitioners – from within

organization.

• External practitioners – from outside

organization.


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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

Dress.

Patterns of behavior.

Language.

Value system.

Feelings.

Attitudes.

Interactions.

Group norms.

A system of shared meanings including:


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Norms (part 1 of 2)

Organized and shared ideas of what members

should do and feel.

How behavior is regulated.


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Norms (part 2 of 2)

Pivotal norms - essential to accomplishing

organization’s objectives.

Peripheral norms - support and contribute to

pivotal norms but 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,

and sanctions.


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Figure 1.3

The Socialization Process


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Adjustment to Cultural Norms and

Socialization Occurs in 3 Ways

1. Rebellion - rejection of all values and norms.

2. Conformity - acceptance of all values and

norms.

3. Creative individualism - acceptance only of

pivotal values; rejection of others.


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Figure 1.4

Basic 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 with emphasis on

viewing organization as total system of

interacting and interrelated elements.


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Figure 1.5

Organization 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.

• There must be felt need for change.


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Stage two: Developing practitioner-client

relationship.

• OD practitioner enters system.

• Good first impressions and match

important.

• Practitioner establishes trust, open

communication, shared responsibility.


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Stage three: The diagnostic phase.

• Practitioner and client gather data about

system.

• Objective is to understand client’s

problems, identify forces causing situation,

and 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 OD program stabilizes, need for

practitioner decreases.

• Monitor results.

• Stabilize change.

• Gradual disengagement of OD practitioner.


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Key Words and Concepts

Action research model - collecting

information, feeding back to client, developing

and implementing action programs.

Change leader - person responsible for

change.


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Client - person or organization that is being

assisted.

Creative individualism - questioning of

peripheral norms, accepting of pivotal norms.

External practitioner - person from outside

organization who serves as resource for

change.


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Internal practitioner - internal resource for

change.

Norms - organized and shared ideas

regarding what members should do and feel,

how behavior should be regulated, and what

sanctions should be applied.


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Organization culture - system of shared

meanings, including language, dress, values,

norms of organization.

Organization development - planned strategy

to bring about change.

OD practitioner - people using, advocating,

and assisting others to implement OD.


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OD specialist - professional who has

specialized and trained in OD and related

areas.

Peripheral norms - support and contribute to

pivotal norms but not essential to

organization's objectives.


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Pivotal norms - essential to organization's

objectives.

Psychological contract - expectations

between individual and organization.

Socialization - process of individual adjusting

to organization's culture.


Chapter 1

Preparations for Next Chapter

Read Chapter 2.

Read instructions for Simulation 2.1.

Read and prepare analysis for Case: The

NoGo Railroad.

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organization development

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