Lecture 9

Organization Development and Change

Chapter Nine:Designing Interventions

9-2

Learning Objectivesfor Chapter Nine

To discuss criteria for effective interventions To discuss issues, considerations, constraints,

ingredients, and processes associated with intervention design

To give an overview of the various interventions used in the book

9-3

Definition of Interventions

An intervention is a set of sequenced and planned actions or events intended

to help the organization increase its effectiveness.

Interventions purposely disrupt the status quo.

9-4

Characteristics of Effective Interventions Is it relevant to the needs of the organization?

Valid information Free and Informed Choice Internal Commitment

Is it based on causal knowledge of intended outcomes?

Does it transfer competence to manage change to organization members?

Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning 9-5

The Design of Effective Interventions

Contingencies Related to the Change Situation

• Readiness for Change• Capability to Change• Cultural Context• Capabilities of the Change Agent


The Design of Effective Interventions

Contingencies Related to the Target of Change

• Strategic Issues• Technology and structure issues• Human resources issues• Human process issues


Intervention Overview

Human Process Interventions Technostructural Interventions Human Resources Management

Interventions Strategic Interventions

9-9

1. Human Process Interventions A set of activities on the part of the consultant that helps group

members understand, diagnose, and improve their behaviors. Interventions are aimed at helping the group become

better able to use its own resources to identify and solve interpersonal problems and devise more effective ways of working.

a. Individual and group process approach• Process Consultation and Team Building• Third-party Interventions (Conflict Resolution) b. Organizational process approach• Organization Confrontation Meeting• Intergroup Relationships• Large-group Interventions (resolving intergroup

conflict)

12–10

Human process interventions

9-11

2. Human Resources Management Interventions

Goal Setting Performance Appraisal Reward Systems Coaching and Mentoring Career Planning and Development Management and Leadership Managing Work Force Diversity Employee Wellness Programs


A Performance Management ModelW

ork p

lace

Te c

hno l

ogy

Business StrategyEm

ployee Involvement

GoalSetting

RewardSystems

PerformanceAppraisal

Individualand Group

Performance


Performance Appraisal Elements

Elements Traditional High Involvement

Purpose Organizational, legal Fragmented

Developmental Integrative

Appraiser Supervisor or manager Appraisee, co-

workers, and others

Role of Appraisee

Passive recipient Active participant

Measurement

Subjective Concerned with validity

Objective and subjective

Timing Period, fixed,

administratively driven Dynamic, timely,

employee- or work-driven


Reward System Design FeaturesDesign Feature Definition

Person/Job Based vs.Performance Based

The extent to which rewards are based on the person, the job or the outcomes of the work

Market Position(External Equity)

The relationship between what an organization pays and what other organizations pay

Internal Equity The extent to which people doing similar work within and organization are rewarded the same

Hierarchy The extent to which people in higher positions get more and varied rewards

Centralization The extent to which reward system design, decisions and administration are standardized

Rewards Mix The extent to which different types of rewards are available and offered to people

Security The extent to which work is guaranteed

Seniority The extent to which rewards are based on length of service


Types of Rewards

PaySkill-based pay plansPerformance-based pay systems link pay to

performanceGain sharing involves paying bonuses based

on improvements in the operating results Promotions Benefits


Individual Plan Productivity 4 1 1 4 Cost effectiveness 3 1 1 4 Superiors’ rating 3 1 1 3

Group Productivity 3 1 2 4 Cost effectiveness 3 1 2 4 Superiors’ rating 2 1 2 3

Organization- Productivity 2 1 3 4wide Cost effectiveness 2 1 2 4

Salary-Based Pay for Performance Ratings

Ties p

ay to

perf

orm

ance

Neg

ativ

esid

e ef

fect

sE

ncou

rage

coop

erat

ion

Em

ploy

eeA

ccep

tanc

e

3. Techno-structural Intervention for transformational change

Downsizing

Re-engineering

Quality circle

TQM


Downsizing TacticsTactic Characteristics Examples

Workforce Reduction

Reduces headcount Short-term focus Fosters transition

Attrition Retirement/buyout Layoffs

Organization

Redesign

Changes organization

Medium-term focus Fosters transition &

transformation

Eliminate functions, layers, products

Merge units Redesign tasks

Systemic

Changes culture Long-term focus Fosters

transformation

Change responsibilities

Foster continuous improvement

Downsizing is normal

Cummings & Worley,9e (c) 2008 South-Western/ Cengage Learning 15-19

Employee Involvement

Extent to which employees have access to: Power Information Knowledge and Skills RewardsApplications of employee involvement are:a. Parallel structures b. TQM


EI and Productivity

EmployeeInvolvementIntervention

ImprovedCommunication

and Coordination

ImprovedMotivation

ImprovedCapabilities

ImprovedProductivity


Secondary Effects of EI on Productivity

EmployeeInvolvementIntervention

Productivity

ProductivityEmployee

Well-being andSatisfaction

Attraction andRetention


Work Design Approaches Engineering: Traditional Jobs & Groups

High specification and routinizationLow task variety and autonomy

Motivational: Enriched JobsHigh task variety and autonomyFeedback of results

Sociotechnical: Self-Managing TeamsControl over total taskMulti-skilled, flexible, and self-regulating


Enriched Jobs

Core JobCharacteristics

CriticalPsychological

StatesOutcomes

Skill varietyTask identityTask significance

Autonomy

Feedback from work

ExperiencedMeaningfulnessof the Work

ExperiencedResponsibility

Knowledge ofActual Results

• Hi internal work motivation• Hi growth satisfaction• Hi job satisfaction• Hi work effectiveness

Moderators

16-24

Sociotechnical Systems Design

Sociotechnical systems is based on whether:An organization or work unit is a combined, social-

plus-technical system. Can work system be designed to better fit with the

environment? Can work system be designed to better operate conversion

process and control variances? Can work system be designed to better satisfy members’

needs?


Designing Work forTechnical and Personal

Technical Factors Technical interdependence: the extent to which

cooperation among workers is required Technical Uncertainty: the amount of information

processing and decision making among workers necessary to do the work

Personal Need Factors Social Needs: the desire for significant social relationships Growth Needs: the desire for personal accomplishment,

learning, and development.


Work Designs That Optimize Technology

Low Technical Interdependence High

Hig

h

Te

chn

ica

l Un

ce

rta

inty

Lo

w

Self-RegulatingWork Groups

TraditionalWork Groups

TraditionalJob Design

Enriched Jobs


Work Designs that Optimize Personal Needs

Low Social Needs High

Hig

h

G

row

th N

eed

s

Low

Self-RegulatingWork Groups

Enriched Jobs

TraditionalJob Design

TraditionalWork Groups

9-28

Strategic Interventions

Integrated strategic change Organization design Culture change Self designing organizations Organizational learning and knowledge management Built to change Merger and acquisition integration Strategic alliance integration Network intervention



Transformational Change Integrated Strategic ChangeOrganization DesignCulture Change

Continuous ChangeMergers and Acquisitions Alliances and Networks



Transorganizational ChangeSelf-designing OrganizationsOrganization Learning and Knowledge

ManagementBuilt to Change Organizations

Cummings & Worley, 9e (c) 2008 South-Western/Cengage Publishing 21-31

Laying the Foundation

The Self-Design Strategy

AcquiringKnowledge

Diagnosing

DesigningImplementing

andAssessing

Valuing

Cummings & Worley, 9e (c) 2008 South-Western/Cengage Publishing 21-32

Organization Learning: An Integrative Framework

OrganizationCharacteristics

StructureInformation SystemsHR PracticesCultureLeadership

OrganizationLearning Processes

DiscoveryInventionProductionGeneralization

OrganizationKnowledge

TacitExplicit

CompetitiveStrategy

OrganizationPerformance

Knowledge ManagementOrganization Learning

Lecture 9

Documents

southwesterncengage

change agentcummings

human process interventions9

human process interventionsa

effective interventionsto

change capability

group members

various interventions