Organization Development and Reinventing The Organization

Chapter 1
Organization Development and Reinventing the Organization
An Experiential Approach to Organization Development 8th edition Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1 Slide 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.
An Experiential Approach to Organization Development 8th edition Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall Chapter 1 Slide 2
Challenges for Organizations

Change avalanching down on us. Tomorrows world different from todays. Organizations need to adapt to change. Organizations in continuous interaction with external forces.
Chapter 1 Slide 3
Figure 1.1 The Organizational Environment
Chapter 1 Slide 4
What Is OD?
Long-range efforts and programs. Aimed at improving organizations ability to survive. OD changes problem-solving and renewal processes.
Chapter 1 Slide 5
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 1.1 Major Characteristics of the Field of OD
Chapter 1 Slide 8
Why OD?
Most cited reasons for beginning change program: The level of competition. Survival. Improved performance.
Chapter 1 Slide 9
Primary Goals of Change Programs

Change the corporate culture. Become more adaptive. Increase competitiveness.
Chapter 1 Slide 10
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.
Successful Firms Share These Traits

Faster. Quality conscious. Employee involvement. Customer oriented. Smaller.
Chapter 1 Slide 13
Figure 1.2 Changing Organization of Twenty-First Century
Chapter 1 Slide 14
Evolution of OD
Evolved since the late 1940s. NTL Laboratory-Training methods. Survey research and feedback.
Chapter 1 Slide 15
Who Does OD? (part 1 of 3)

OD practitioners consist of:
Specialists. Those applying OD in daily work.
Chapter 1 Slide 16

OD specialists are:
Internal practitioners from within the organization. External practitioners from outside the organization.
Managers apply OD principles and concepts.


Activities include: Team leaders developing teams. Building learning organizations. Implementing total quality management. Creating boundaryless organizations.
Chapter 1 Slide 18
Organization Culture
A system of shared meanings including:: Language. Dress. Patterns of behavior. Value system. Feelings. Attitudes. Interactions. Group norms.
Chapter 1 Slide 19
Norms
Organized and shared ideas. What members should do and feel. How behavior is regulated.
Chapter 1 Slide 20
Types of Norms
Pivotal norms.
Essential to accomplishing organizations objectives.
Peripheral norms.
Support and contribute to pivotal norms. Not essential to organizations objectives.
Chapter 1 Slide 21
Socialization Process
Process that adapts employees to culture. New employees become aware of norms. Employees encounter culture. Individuals understand power, status, rewards, sanctions.
Figure 1.4 The Socialization Process
Chapter 1 Slide 23
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.
Figure 1.5 Basic Responses to Socialization
Chapter 1 Slide 25
Psychological Contract
Unwritten agreement between individuals and organization. Open-ended so issues may be renegotiated.
Chapter 1 Slide 26
A Model for Change

OD is continuing process. Emphasis on viewing organization as total system. System consists of interacting and interrelated elements.
Chapter 1 Slide 27
Figure 1.6 Organization Developments Five Stages
Chapter 1 Slide 28
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.
Chapter 1 Slide 29

Stage Two Develop Practitioner-Client Relationship. Practitioner enters system. Good first impressions important. Practitioner establishes trust and open communication.

Stage Three The Diagnostic Phase. Practitioner and client gather data. Objective to:
Understand clients problems. Identify causes. 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 program stabilizes, need for practitioner decreases. Monitor results. Stabilize change. Gradual disengagement of practitioner.
OD Application GEs 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.
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.
OD Application Leave 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.
Leave no one behind shows up in training and salaries. Starbucks wants self-motivated team players. Major objective is maintaining entrepreneurial spirit.
Chapter 1 Slide 37
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.
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.
Chapter 1 Slide 39
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.
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.
Psychological contract.
Expectations between individual and organization.
Socialization.
Process of individual adjusting to organization's culture.
Chapter 1 Slide 42
OD Skills Simulation 1.1 Auditioning 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.
OD Skills Simulation 1.2 The Psychological Contract

Purpose.
Goal is to build trust within class. Share information about yourself. Explore values and norms. Experience interviewing another person.
Chapter 1 Slide 44
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.

Chapter 1 Slide 46

Organization Development and Reinventing The Organization

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Chapter 1

Organization Development and Reinventing the Organization

Challenges for Organizations

Figure 1.1 The Organizational Environment

Table 1.1 Major Characteristics of the Field of OD

Primary Goals of Change Programs

Factors Leading to Emergence of OD

The Only Constant Is Change

Successful Firms Share These Traits

Figure 1.2 Changing Organization of Twenty-First Century

Who Does OD? (part 1 of 3)

Who Does OD? (part 2 of 3)

Managers apply OD principles and concepts.

Who Does OD? (part 3 of 3)

Figure 1.4 The Socialization Process

Adjustment to Cultural Norms

Figure 1.5 Basic Responses to Socialization

A Model for Change

Figure 1.6 Organization Developments Five Stages

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

Five-stage Model for OD Process (part 2 of 5)

Five-stage Model for OD Process (part 3 of 5)

Five-stage Model for OD Process (part 4 of 5)

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

OD Application GEs Epicenter of Change

OD Application Leave No One Behind At Starbucks

Key Words and Concepts

Organization development (OD).

OD Skills Simulation 1.2 The Psychological Contract

Preparations for Next Chapter

Read and prepare Case: The NoGo Railroad.

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