OD

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

Chapter 1Chapter 1

Organization Development and Reinventing the

Organization

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 2

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 1.1The Organizational Environment


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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 1.1Major 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 1.2Major 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 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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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 1.3The Socialization Process


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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.


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Figure 1.4Basic 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 1.5Organization 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 1Slide 47

Preparations for Next Chapter

Read Chapter 2. Read instructions for Simulation 2.1. Read and prepare analysis for Case: The

NoGo Railroad.

OD

Documents

psychological

od practitioner

od process

creative individualism

trilogy software

experiential

shared ideas

changing world