CHAPTER

1 Organization Development &

Change
11 edition Thomas G. Cummings • Christopher G.
Worley

General Introduction to
Organization Development

©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Chapter 1 : General Introduction to organization development

1- 1
Organisation development defined

-
both professional field of social action S an area of scientific inquiry .

EXP of Ob district S self

strategic planning with top corporate management team service firm
:
,
team building in a school -
managed in a .

-
OD include a no . of common attributes having to do with the targets process of planned change the values S knowledge underlying it Sinteded
,

organizational outcomes .

whether organisational culture is the target of change

vary slightly in

term of emphasis ◦D 's long -

term focus Suse of consultant

the process or stages of OD

the range of human , economics ecological outcomes .

the transfer of OD skills S knowledge to organization

•
Organization development is
system-wide application S transfer of behavioural science
knowledge to the planned development , improvement

S reinforcement of strategies , structures s processes that lead to organization effectiveness _

a) management
Ob emphasize consulting

b) project management
several feature

c) operation management

How are change management are different from organization ?

1) OD applies to / processes
changes in the strategy ,
structure S of an entire system .

-
Exp : a single plant of a multi -
plant firm , a department / work gp or individual role or job .

-
a
change program → modify org strategy . → focus on how the org relates to wider environment show those relationship can be improved .

C structure) ( process )
-
might include changes both in the grouping of people to perform task S in methods of communicating S solving problems to support changes in
strategy .
2) & transfer of behavioural knowledge s practice
OD is based on the application science s .

Include micro concept → leadership _ group dynamic ,

work design S macro approaches [ Strategy , org design ,
strategic alliances )

3) Ob is concerned with but not

managing planned change ,
in the formal sense typically associated with management consulting / project management

which tend to comprise programmatic s expert -

drive approaches to change .

- Ob is more adaptive process for planning S implementing change than a blueprint for how things should be done .

-
involve planning to diagnose S solve org problem .

EXP i
concern abt performance of set of international subsidiaries → with plan to asses current
a
reorganization process might begin relationship btw int division S
-
-
.

corporate hq

←
plan will be modified if the assessment discovered redesign if necessary

that most of the senior management team in the subsidiaries

to their international
were not given adequate cross -
cultural
training prior assignment .

4) OD involves the design , implementation S subsequent reinforcement of changes .

-
It moves beyond the initial effort to implement a change program to a longer term concern for making sure the new activities are reinforced within the org .

Exp :

Focus on
ways in which SV can
After worker had control attention reward SV for
implementing employee more
, managing

involvement Give more control over work

shift to ensuring that participative style
-

would su continue in

to provide that freedom -

5) 0 Disoriented to improve organisational effectiveness .

1) OD affirms that effective org

an is able to solve its own problems S to continually improve S change itself .

Effectiveness has -
OD help org member develop skills s
knowledge to conduct activities by involving them in the change process -

3 dimensions

2)
Org has high financial S technical
performance .

-
include sales growth , acceptable profit , quality products services S
high productivity .

Cmcmantaatkerh )
- Ob help org achieve these ends by leveraging social science practice to lower costs , improve products services S

There as productivity

3) Org satisfied S learning workforce

engaged , as well as satisfied s loyal customer or other external stakeholder .

to the needs of ext

performance respond gp
. .
-

org

-
able to attract S motivator effective employee .
 OD and change management

• Both used interchangeably

• Both address the effective implementation of planned change .

• Both concerned with the sequence of activities ,

the process S that leadership that produce
organization development
_

Different between ODs chage management

- Both differ in value orientation s goals

OD has 1) Personal level

2 level •
Development is deeply rooted in humanistic psychology → promotes value self -
determination , potential s growth .

•
OD help org create condition where member enact these value at work S develop to their full potential .

2) organization level

•
development concern an
org capability
to be self
regulating → solve its own problems to adapt to its environment -
-

help org develop the knowledge S Skills to solve their problems S to change S improve themselves
-
•
own

Change management

focus helping
on
org implement specific changes → new org structure technology / work practice
- .

- its value S practice → highly pragmatic S aimed at making change process more effectives efficient .

how well implemented S at what cost S speed → not whether the org sits members have learned
-

change is .

• OD address change from a developmental perspective while change management focus on implementing org change S effectively

s
efficiently .
1- 2) The growth S relevance of org development

org must adapt to increasingly complex s uncertain technological , economic , political S cultural changes

-
OD could help an
org to create effective responses to these changes .

-
to proactively influence the strategic direction of the firm .

I ✗ per nah b' lakh )

midst of unprecedented Sperform
change causing major disruption how
'

org are in the in

they function

"
"
-

change → not for success but for survival

.

3 major areas 1) globalization

2) info tech
shape change

in 3) managerial innovation
org
.

9) Globalization

•
Changing the markets environment in which organization operate as well as the way the function -

interconnected economically S ecologically

◦ world tightly , socially .

•
( good / services , tech , hrs capital ) → across int border → ada kaitant Iceberg antung an economi among nation song
• EXP :
ppl shopped cross-border e- comme rence → open new markets sources of innovation S capital for org .

-
Social diff along cultural , poetical S religious line → global market ↑ uncertain ,
complex s conflictive → tended an Kpd terrorist attacks ,

escalating diplomatic S military conflicts distnupting energy supplies .

- Globalization also affect org ecologically → expand access to natural resources → tcrdedah Kpd abuse

attention → climate change → firm more responsible S Sustainable org practices underscore the ecological consequences of globalization
.
b) Information technology

how work is performed how knowledge used Show business is organized S transacted
revolutionizing is
- .
,

cgabungan)
'd
-
4 Industrial revolution → the unprecedented fusion of emerging digital technologies such as AI .

Cust S
combi effect of digital tech are distrusting most industries s transforming the way org create Suse knowledge produce g Is S connect with suppliers , env .
-

-
EXP :
E- com giant Amazon S Alibaba are rapidly replacing bricks mortar retailers .

org analyzing enormous data sets → big data to discover underlying trends S pattern that can inform strategic decision making S innovation
-

are - .

Digital publishing son 9 courses are

transforming how we deliver knowledge s education
-

challenges :

org may not have capability to adapt to the changes .

-
Gov can fail to regulate new tech S fully utilize their benefits .

Cyber security privacy s prob can have enormous disruptive consequences

-
inequality may grow S societies
may fragment
.

C) innovation
managerial

-
MI respond to the globalization S into tech trends S has accelerated their impact on org .

cmendorong )

ability to move into easily s ihexpensily throughout S among org has fueled the downsizing de layering s restructuring of firms
- -

Exp : the Internet has enabled new form of work S C virtual team ]
-

org

enable to outsource customer service f- ✗ to global region where labor relatively inexpensive
many companies
- -
is .

change innovation → downsizing /

reengineering → reduce size of org S ↑ flexibility .

-
new large gp intervention [ conference 1- open space ) → ↑ speed org change take place .

org learning intervention have leveraged knowledge → critical org resource .

for highly uncertain S complex environment

- a
growing no of org changes need to survive S prosper .

they are making themselves more streamlined S agile , more responsive to external demand S more
ecologically S
socially sustainable .

S paying for performance

involve employee in
key decision
- .

taking the initiative in innovating s

managing change
-
• OD help org assess themselves s their environment as well as revitalizes rebuild their strategies ,
structures s processes -

o OD help org member gain skill S

knowledge needed to continually improve S change the org . → help member go beyond surfaces changes to transform

underlying assumption s values

governing their behaviour
.

Importance for Ob practitioner

-
need to broaden their knowledge S skills to operate effectively in this highly globalized S digitized env .

need to supplement their current expertise in social strategic change → with understanding s competence global dynamic
-

system thinking , processes s in

,

digital tech S big data analytics .

Who is important for Ob

9) Those who plan a professional career .

- internal consultant s external consultant

high rewarding providing challenging Sint cresting assignment working with managers S employees to improve their orgs their work lives
-
- -

b) Those who have professional

no aspiration to become practice hers

-
staff specialist → offer advice S counsel to managers s for introducing new methods S practices .

c) General managers bother executives → help org adaptable

senior more strategic ,
innovative s .

d) managers s staff personnel perform their task effectively .

OD provide S knowledge → establish effective interpersonal 8 helping relationship A building productive team -
-
skill

Ob show personnel how to work effectively with others →

diagnosing complex problem S devise solution
-
_

-
Ob help others become committed to the solution → ↑ chances for successful implementation .
I -3 A short
history of organisation development

The 5 stems of OD practices

a) Laboratory training

of the National training S of

-
The growth Laboratories development training gp
.

sensitivity training IT
groups
- -
.

b) Action research / survey feedback

classic work on action research conducted by social scientists interested in applying research to managing change .

-
technique :
survey feedback .

-
Kurt Lewin → creation of OD

c) Normative approaches .

-
Likert S blake S Mouton → one best way to design S operate org

d) Quality of work - life

focus on
productivity SQWL

e) strategic change

-
SCS org transformation

current OD Practices
I -3 a Laboratory Training background CT Group )
-

• Small , unstructured group → participants learn from their own interactions evolving group processes -
abt such issue as interpersonal relation , personal

growth ,
leadership s group dynamics .

A workshop the brought together to learn abt leadership S to discuss problem

• was developed S community leaders were .

e end → the researchers discuss privately what behaviour Sgp dynamic they had observed .

• feedback session

◦ T -

Group was formed in which ppl reacted to data abt their own behaviour .

1) Feedback abt
gp interaction was a rich learning experience

2 conclusion abt

"
"
T -
Group the process transferred to back home situation
group building had potential for learning that could be .

9) the laboratories
emergence of regional

1950 1 3 trends b) the expansion of summer program session to

year round session .

the expansion of T
'

C) Group becoming increasingly involved

emerged into business S Industry with NTL members with industry
-

program

•
led corporate
T Group - OD personnel S Industrial

specialists to expand their roles to offer

internal consulting services -

to managers .

Team
building

process for helping task

-
a work
gp become more effective in accomplishing S
satisfying member needs
I -3 b Action Research S
Survey feedback background

- research needed to be closely linked to action if org member were to use it to manage change .

-
collect research data abt org fining → analyze problem → devise S Implement solution .
→ Assess result → continue cycle .

Result of action research

a) members of able to use research themselves to actions

org were on guide change -

b) Ss able to study that process to derive new knowledge that could be use elsewhere .

① ② ③ ④ ⑤
Data feedback Action Planning Implementation Follow up data
Data collection

→ overcoming resistance to buat action research

change → -

→ The
development of participative management →
getting employee involved in
planning is managing change .

① systematic collection of Survey data

"

② The feedback process that evolved chain of conferences

!
_ was an interlocking

- the -

survey were reported first to the top management → transmit throughout the org .

③ The feedback session were conducted in task g. P ,

SU ,
8 Surbodinates discussing data together
.

④ 21 dept → 2ja dpt feedback

⑤ Follow up study indicate more

Sig St change → Job satisfaction had occur in dcpt receive feedback '
1- 3C Normative background

" "
•
training Sars feedback t relate with the belief that a human relations approach represented a one best way to manage org .

Normative belief → Likert 's Participative 's

management org improvement
program S blake 8 Mouton Grid Ob approaches to
-

Likert 's participative Management program characterised org as having 4 types of management system

a) Exploitive authoritative systems [ system 1)

• autocratic , top down approach to leadership

• Employee motivation is based on punishment S occasional reward .

Com downward → little lateral interaction s teamwork

is
primary
.
•

• Decision making s control → only top of org

• result in mediocre
performance .

b) Benevolent authoritative system C system 2)

• the management is more paternalistic .

C same like system 1)

•
employees are allowed a little more interaction . communications decision making but within boundaries defined by management

c) Consultative
systems C Systems 3)

Increase interaction communication

•

S decision
•
employee , making

•
management still makes final decision .

•
Productivity is good S employees are moderately satisfied with org .

d) Participative group system C. System 4)

• opposite of system 1

•
group methods of decision making S
supervision

•
foster high degree of member involvement S participation .

• work group are

highly involved in setting goals , making decision , improving method S appraising results -

communication occur both 8 vertically

◦
laterally .

•
Decision are linked throughout the org by overlapping group membership -

quality satisfaction
•
system 4 achieves high levels of productivity s member -

✓
-
Likert applied system 4 management to
org using a survey - feedback process -

asked opinion abt Data fed back to diff → benchmarks

org member completing the were system 4 Cid cat

profile of org characteristics both present s ideal condition work group within the org → generate action plan to move org

toward system 4 condition

Barriers to excellence

Planning normative model of leadership [ the managerial Grid )

-
.

-
communication

The managerial Grid

- an individual style can be described according to his / her concern for production s concern for ppl -

A concern for production accomplishing productive task

covers a range of behaviours

Developing creative ideas

making quality policy decision

establishing thorough S high -

quality staff services .

Creating efficient workload measurement

-
not limited to things but also may involve human accomplishment within the org .

Individual personal worth

Concern for people

good working condition

A degree of involvement / commitment to completing the job

security

a fair salary structure s

fringe benefits

Good social S other relationship

 possible leadership
.

Concern for ppl

119 9,9

1 , I 9,1
Concern for production

A) 1,1 Impoverished management

Exertion of minimum effort to get required

org membership
work done is
appropriate
-
to sustain

b) 1,9 Country club management

Thoughtful attention to needs of ppl for satisfying comfortable

-
relationship leads to a friendly org atmosphere S work tempo -

manager has low concern for production S high concern for ppl
-
.

they view ppl

feelings attitude S needs as value able in their right
.
-
own

-
provide surbodinate with work condition that provide ease , security S comfort .

C) 911 Authority obedience

efficiency in operation result from arranging condition of such way that human element interfere to a min degree
-

work in a .

-
high concern for production but low concern for ppl

they min the attitudes S feelings of surbodinatcs S give little attention to individual creativity ,
conflict S commitment

focus on the work org .

d) Team management

from commitCd through org purpose lead to relationship of trust S respect

- work accomplishment is ppl , interdependent a common stake in

most effective in barrier to corporate excellence

overcoming the com
-

↑ for both ppl S production employee to thinks influence the org → promoting active support for
- concern →
manager allow org plan .

Employee participation → better com is critical

shared by relevant parties

necessary info is all
-

- better com means self - direction S self control

-
 2
key objectives

a) improve for org excellence

planning by developing logic S
to a clear Strategy

b) to help manager gain necessary knowledge S skills to supervise effective 1) '

6 phases designed to analyze an entire business S to overcome planning S communication banner to corporate excellence

1) Grid Seminar → 1 week program where participants analyze personal style S learn method of problem solving

2) team development

3)
intergroup development

4) of org excellence
ideal model

model implemented

6)
evaluation

1- 3d Productivity is Quality -
Of - Work -
life background .

can be described in 2 phases -

a) Original project developed in Europe 1950s S emergence in the us during 1960s -

Developed work aimed at better tech S ppl

design inter grating
-
.

"
"

socio technical
system QWL involve participation by S management the design of work → level
-
→ program joint union in
give employee high

of discretion task variety S feedback abt result -

Characteristic QWL Program → self → form of

managed work gp work design
.
- - .

composed multiple skilled workers who were

given the neccesary autonomy S info to design s manage their own task performance
- - .

1) People reaction to work , → individual outcomes related to job satisfaction is mental health .

2 definitions of -
FOCUS on the personal consequences of the work experience S how to improve work to satisfy personal needs .

QWL emerged

in initial
2) An approach / method
development
used for improving work .

specific techniques approaches

-
job enrichment isnt - managed team S labor
management comme
-
b) major factor contributing to the resurgence of QWL was growing international competition

)
- Exp : ↓ costs ↑ quality of foreign good → result from management practice -

Japan Cbest .

-
focus on work design to includes others features of the workplace that can affect employee productivity s satisfaction → reward system ,
work flow,

S physical
management style work env .

-
focus result in
larger scale S
longer term project

-
ideological movement → spread quality circles within
many companies

-
Quality circle → group of employees trained in problem solving method to resolve work environment , productivity s quality control

concern is to develop more efficient work methods r

Employee involvement ,
total quality management S six Sigma program .

• El → how employees can contribute more to

running the
org so it can be more flexible , productive s competitive .

• El → EE C employee empowerment) → to restrictive

↳
broader s < restrictive

1- 3e change background
strategic

-
the scale S intricacies of Ob have increased

-
strategic change → improve alignment among org design , strategy s environment

-
Improve both org relationship to its environment s the fit among its technical , structural informational ,
Hk s cultural components

major disruption → strategic planning

"
"

- open system planning → focus on org environment s strategy

- reduce the diff between what the environment demand Show the org responded → performance improved

strategic change model C drive by top ]

-
involve multiple level of org s change in its culture → effect on performance

→ with competitive strategy finances marketing team building

-
SC influence Ob Implementing SC require Obpractioncb to be familiar , , ,

action research S survey feedback

 Learning Objectives

• Define and describe the practice and study

of organization development (OD).
• Describe the history and relevance of OD.
• Distinguish OD and planned change from
other forms of organization change.

‹#›
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Organization Development Defined

Organization development is a system-wide

application and transfer of behavioral science
knowledge to the planned development,
improvement, and reinforcement of the
strategies, structures, and processes that lead
to organization effectiveness.

‹#›
©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
How are Change Management and
Organization Development Different
(1)
• Organization Development
• Enables “development” of individuals and the
organization
• Promotes values of human self-determination,
potential, and growth
• Concerns an organization’s capability to solve
its own problems and adapt to its environment
• Helps organizations develop knowledge to
change and improve
‹#›
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How are Change Management and
Organization Development Different
(2)
• Change Management
• Helps organizations implement specific changes
(e.g., new technologies or a new organization
structure) applicable
.

hand on

practical on - the - nob

• Values and practices are highly pragmatic aimed to

make change processes effective and efficient
• Places importance on how well change is
implemented and at what cost and speed, not
whether the organization or its members have
learned
‹#›
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 Relevance of Organization
Development
• OD helps organizations create effective
responses and change capabilities in uncertain
and changing conditions
• Globalization of markets, environments and
functions
• Introduction of new technologies and
digitalization
• Managerial innovation through restructuring
and new forms of work and organization
‹#›
©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Five Stems of OD Practice

‹#›
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Action Research/Survey Feedback

‹#›
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 Likert’s Participative
Management Program
• Exploitive authoritative systems
• Benevolent authoritative systems
• Consultative systems
• Participative group systems

‹#›
©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Likert’s Participative
Management Program
Exploitive authoritative systems
● The decision-making authority is
centralized, and decisions are made at the
top levels of the hierarchy.
● Employees have little to no involvement in
the decision-making process.
● The communication tends to be one-way,
where instructions and orders are given
from the top down, and feedback or
©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
‹#›
 suggestions from employees are usually not
Likert’s Participative
Management Program
Benevolent authoritative systems
● The leadership is still authoritative, but it's more benevolent and
paternalistic compared to the exploitative authoritative system.

● The management may consult with employees on some decisions but

still retains the ultimate decision-making power.

● The organization may show concern for employees' well-being and

may provide some benefits or rewards to maintain employee loyalty.

● However, the decision-making power remains concentrated at the top

levels of the hierarchy. Communication is generally top-down, and
there might be limited upward communication.

● Employee satisfaction might be slightly better compared to an

exploitative system, but it may still be suboptimal.
‹#›
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 Likert’s Participative
Management Program
Consultative systems
● Management actively seeks input and feedback from employees, but the
ultimate decision-making authority still resides with the leadership.

● Employees are encouraged to share their ideas, concerns, and opinions, and
their input is considered in the decision-making process.

● However, the final decisions are made by the management. Communication

is two-way, allowing for upward and downward flow of information.

● Employee morale and job satisfaction tend to be higher than in the previous
systems due to the increased involvement of employees.

‹#›
©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Likert’s Participative
Management Program
Participative group systems
● High level of employee involvement and empowerment in decision-making.

● Management collaborates with employees and involves them in the

decision-making process, encouraging them to take an active role in shaping
the organization's policies and procedures.

● Decision-making is decentralized, allowing teams or groups to make

decisions related to their work.

● Communication is open, transparent, and occurs in all directions within the

organization.

● Employees feel a strong sense of ownership and are highly motivated,

leading to better productivity and job satisfaction.
‹#›
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 Quality of Work Life
→ angostura
• Early QWL Work Design Approaches
• Worker job satisfaction and mental health
t hems → more charters
-

add tone

• Job enrichment, self-managed teams Efficient( Consistent ]

eltcehne Caecinate )

• Expanded QWL Approaches

• Employee productivity and satisfaction
• Larger scale, organization work groups, Quality
Circles
• Employee Involvement (EI) and Six Sigma too I → achieve effectiveness
-
.

‹#›
©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Blake and Mouton’s Grid
Organization
The Managerial Grid
Assessing an Individual’s Style of Management
Concern for Production vs Concern for People
Two Key Objectives
1. Improve planning by developing a clear logic
and strategy for organizational excellence
2. Help managers gain the necessary knowledge
and skills to supervise effectively

‹#›
©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Blake and Mouton’s Grid
Organization

→ thimble /demo
-

v more enpuyel
will
that employee
gun IJhappen → sour W
- '

I.÷ 0h output

WHA to entice

target

‹#›
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 Blake and Mouton’s Grid
Organization

‹#›
©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Overview of the Book

‹#›
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