Intro

Organization Development

and Reinventing the

Organization

Learning Objectives

Define OD and recognize need for change.

Describe culture and understand its impact.

Understand the psychological contract.

Describe five stages of OD.

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.

An Experiential Approach to Organization Development 7 th edition Chapter 1Slide 4

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.


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.


Figure 1.1The Organizational Environment


What Is OD?

Long-range efforts and programs aimed at

improving an organization’s ability to survive

by changing problem-solving and renewal

processes.


OD Is:

Planned.

Organization wide.

Managed from top.

Increases organization effectiveness.

Planned interventions.

Uses behavioral science knowledge.


The Characteristics of OD

Planned change.

Collaborative approach.

Improve performance.

Humanistic values.

Systems approach.

Scientific approaches.


Table 1.1Major Characteristics of the Field of OD


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.


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.


Why OD?

Most cited reasons for beginning change

program:

The level of competition.

Survival.

Improved performance.


Primary Goals of Change Programs

Increase productivity.

Increase responsiveness.

Improve competitive position.

Increase employee involvement.

Increase employee morale.

Develop new managerial skills.


Table 1.2Major Goals of Large-Scale Change Programs


Factors Leading to Emergence of OD

Need for new organizational forms.

Focus on cultural change.

Increase in social awareness.


The Only Constant Is Change

Today's managers need new mind-set.

Flexibility.

Speed.

Innovation.

Constantly changing conditions.


Successful FirmsShare These Traits

Faster.

Quality conscious.

Employee involvement.

Customer oriented.

Smaller.


Figure 1.2Changing Organization of Twenty-First Century


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.


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.


Evolution of OD

Evolved since the late 1940s.

NTL Laboratory-Training methods.

Survey research and feedback.


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.



OD specialists:

• Internal practitioners – from within

organization.

• External practitioners – from outside

organization.



Activities include:

Team leaders developing teams.

Building learning organizations.

Implementing total quality management.

Creating boundaryless organizations.


Organization Culture

Dress.

Patterns of behavior.

Language.

Value system.

Feelings.

Attitudes.

Interactions.

Group norms.

A system of shared meanings including:


Norms (part 1 of 2)

Organized and shared ideas of what members

should do and feel.

How behavior is regulated.


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.


Socialization Process

Process that adapts employees to culture.

New employees become aware of norms.

Employees encounter culture.

Individuals understand power, status, rewards,

and sanctions.


Figure 1.3The Socialization Process


Adjustment to Cultural Norms and Socialization Occurs in 3

Ways1. 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.


Figure 1.4Basic Responses to Socialization


Psychological Contract

Unwritten agreement between individuals and

organization.

Open-ended so issues may be renegotiated.


A Model for Change

OD is continuing process with emphasis on

viewing organization as total system of

interacting and interrelated elements.


Figure 1.5Organization Development’s Five Stages


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.



Stage two: Developing practitioner-client

relationship.

• OD practitioner enters system.

• Good first impressions and match

important.

• Practitioner establishes trust, open

communication, shared responsibility.



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.



Stage four: Action plans, strategies, and

techniques.

• Series of interventions, activities, or

programs aimed at increasing

effectiveness.

• Programs apply OD techniques.



Stage five: Self-renewal, monitor, and stabilize.

• As OD program stabilizes, need for

practitioner decreases.

• Monitor results.

• Stabilize change.

• Gradual disengagement of OD practitioner.

Intro

Documents

organization development

organization changes

systems approach

collaborative approach

characteristics of od

stages of od

changing world

change program