Chapter 14
Organizational Development
● ORGANIZATION
DEVELOPMENT : the process of
improving organizational performance
by making organization -wide rather
than individual changes
● MANAGING CHANGE : change
occurs for many reasons and takes
on many forms; some changes are
due to such organization
development efforts as downsizing ,
reorganization or the introduction of
teams
KRIEGEL AND BRANDT: SACRED
COW HUNT
● ORGANIZATION SCARED COW
o are practices that have been around
for a long time and invisibly reduce
productivity
o an organization-wide attempt to
get rid of practices that serve no
useful purpose
● THE MEETING COW
o number and length of
meetings
● THE PAPER COW
o are unnecessary paperwork
o usually forms and reports that
cost organizations money to
prepare, distribute , and read
o consider the extent to which
the paperwork increases
efficiency, productivity or
quality
● THE SPEED COW
o unnecessary deadlines are
another source for potential
change
o cause employees to work at a
faster than optimal pace,
resulting in decreased quality,
increased stress, and increased
health problems
EMPLOYEE ACCEPTANCE OF
CHANGE
● organizations go through three stages
 o UNFREEZING STAGE : the
organization must convince
employees and other
stakeholders (shareholders, the
community) that the current
state of affairs is unacceptable
and that change is necessary
o MOVING STAGE :
organization takes step
(training, new work processes) to
move the organization to the
desired state
o REFREEZING STAGE :
organization develops ways to
keep the new changes in place
such as formalizing new policy
and rewarding employees for
behaving in manner in
consistent with the new change
FIVE STAGES DURING MAJOR
ORGANIZATIONAL CHANGES
(CARNALL)
1. DENIAL: employees deny that any
changes will actually take place, try to
convince themselves that the old way is
working
2. DEFENSE : when employees begin to
believe that change will actually occur they
become defensive and try to justify their
positions and ways of doing things
3. DISCARDING : it is the best interest
of the employee to discard the old ways
and start to accept the change as the new
reality
4. ADAPTATION: employees test the new
system, learn how it functions and begin to
make adjustments in the way they perform
5. INTERNALIZATION : employees
have become immersed in the new
culture become more comfortable with
the new system and accept their new
coworkers and work environment
IMPORTANT FACTORS
TYPE OF CHANGE
1. EVOLUTIONARY : that is the
continual process of upgrading or
improving processes (Ex: windows
XP to Vista)
2. REVOLUTIONARY : change as a
"real jolt to the system " that is
drastically changes the way things are
done
● THE REASON BEHIND THE
CHANGE: employee acceptance of
change is often a function of the
reason behind the change
Ex: Employee understand change
that is due to financial problems,
external mandates or attempts to
improve the organization
Employees are least likely to accept
change if they don't understand or
were not told the reasons behind the
change

● THE PERSON MAKING THE
CHANGE : changes proposed by
leaders who are well liked and
respected and who have a history of
success are more likely to be accepted
than changes proposed by leaders
whose motives are suspect
● THE PERSON BEING
CHANGED: variability in the way
in which people instigate or react to
change
IMPORTANT FACTORS
TYPE OF CHANGE
1. CHANGE AGENTS: are
people who enjoy change and
often make changes just for the
sake of it; change for the sake of
change is disruptive (Ex: If it ain't
broke, break it.)
2. CHANGE ANALYST : are not
afraid to change or make changes
but want to make changes only
if the changes will improve the
organization; constantly questions
if there are better ways of doing
things within an organization (Ex:
If it isn't broke, leave it alone; If
it's broken, fix itt
3. RECEPTIVE CHANGERS: are
people who probably will not instigate
change but are willing to change;
have high self-esteem and optimistic
personalities (Ex: If it's broke I'll help
4. RELUCTANT CHANGERS: will
certainly not instigate or welcome
change but they will change if
necessary (Ex: Are you sure it's
broken?)
5. CHANGE RESISTERS: hate
change and are scared by it and will
do anything they can to keep change
from occurring (Ex: It may be
broken, but it's still better than the
unknown)
ORGANIZATIONAL
CULTURE/CORPORATE CLIMATE
● comprises the shared values, belief,
and traditions, that exist among
individuals in organizations
● Promotes longer tenure and
increased job satisfaction if employees
can blend well with the
organizational culture
● POSITIVE ORGANIZATIONAL
CULTURE: leaders who are actively
involved, how the company "feels"
like to the employee ; clear and
explicit policies
● POWER CULTURE: control is
enforced from the center of the
organization outward
 ● ORGANIZATIONAL CITIZENSHIP
● PERSON CULTURE: very selfish BEHAVIORS (OCBS): are motivated
kind where everyone believes that he to help the organization and their
or she is above the organization itself coworkers by doing the 'little things'
● TASK CULTURE : Teams in an
that they are not required to do
(Ex: staying late to get a project done)
organization are formed to address
specific problems or progress projects.
The task is the important thing, so Decision Making Strategies Using the
power within the team will often
VROOM-YETTON MODEL
shift depending on the mix of the
team members and the status of the
problem or project.

● ROLE CULTURE: based on rules; ● AUTOCRATIC I STRATEGY

they are highly controlled, with
everyone in the organization knowing
o leader use the available
what their roles and responsibilities are. information to make the
POWER in a role culture is determined decision without consulting their
by a person's position in the subordinates
organizational structure.
o leader has the necessary
information and when
acceptance by the group either
ORGANIZATIONAL
is not important or is likely to
SOCIALIZATION
occur regardless of the decision
● the process whereby new employees
learn the behaviors and attitudes they ● AUTOCRATIC II STRATEGY
need to be successful in the
organization; helps any newcomer to the
organization define his role and what is
o leaders obtain the necessary
information from their
expected of him in his position subordinates and then make

● RITUALS: procedures in which

their own decisions

employees participate to become "one o leader may or may not tell the
of the gang" (Ex: staff picnics) subordinates about the nature
of the problem
● SYMBOLS : are communication tools
that convey certain messages to
employees

● CONSULTATIVE I STRATEGY
o share the problem on an
individual basis with some or
all of their subordinates
o leader makes a decision that
may or may not be consistent
with the thinking of the group
● CONSULTATIVE II STRATEGY
o share the problems with their
subordinates as a group
o leader makes a decision that
may or may not be acceptable
to the group
● GROUP I STRATEGY
o leader shares the problem
with the group and lets the
group reach a solution
o leader is merely to assist in
the decision-making process
REDUCING THE IMPACT OF
DOWNSIZING TEMPORARY
EMPLOYEES (TEMPS)
● are hired through temporary
employment agencies
● not considered employees of the
company and thus have no
expectation of a future with the
company
● OUTSOURCING: using outside
vendors to provide services previously
performed internally (Ex: employee
assistance/wellness programs)
● SURVIVORS : Employees who
retain their jobs following a
downsizing
● VICTIMS : Employees who lose their
jobs due to a layoff.
EMOTIONAL REACTION TO
DOWN SIZING
● DENIAL STAGE: employees deny
that a layoff will actually occur
● ANGER STAGE : employees realize
that they will be losing their jobs
and they become angry at the
organization , their supervisors, and
even their coworkers especially those
who will not be losing their jobs
● FEAR STAGE : employees start to
worry about how they are going to
pay bills, feed their families and find
new jobs
● ACCEPTANCE STAGE : victims
accept that the layoff will occur and
are now ready to take steps to secure
their future
WORK SCHEDULES

● FLEXIBLE WORK
MANAGEMENT: alternate
arrangements or schedules from the
traditional working day and week.
Employees may choose a different
work schedule to meet personal or
family needs . Alternatively,
employers may initiate various
schedules to meet their customer
needs.
● COMPRESSED WORKWEEKS:
working fewer days a
week but more hours per day ,
usually involve either ten hours a
day for four days or 12 hours a day
for three days ●
MOONLIGHTING : employees
working more than one job
(Ex : day shift machine operator,
night shift store clerk)
● FLEXTIME: a work schedule in
which employees have some
flexibility in the hours they work
● BANDWIDTH : the total number of
potential hours available for work
each day (Ex: 10 hour bandwidth; 6:30
am to 3:30 pm)
● CORE HOURS : those that everyone
must work and typically consist of the
hours during which an organization is
busiest with its outside contract
● FLEXIBLE HOURS : those that
remain in the bandwidth and in
which employee has a choice of
working
● GLIDING TIME : most flexible of
these schedules; an employee can
chose her own hours without advance
notice or scheduling: employees can
come and go as they please as long as
they work 8 hours each day and 40
hours each week
● FLEXITOUR : employee must
submit a schedule on a weekly,
biweekly, or monthly basis depending
on the organization
● MODIFIED FLEX ITOUR :
employee must schedule her hours in
advance but can change these hours
on a daily
basis with some advance notice
● PEAK-TIME PAY : certain
employees are encouraged to work
only part time but are paid at a
higher hourly rate for those hours
than employees who work full time
● JOB SHARING : involves two
employees who share their work hours
(Ex : one person working 40 hours
each week, two employees combine
their hours so that they total 40)
● PHASED RETIREMENT : when
an employee is about to retire, the
company allows him to gradually cut
his hours
WORK AT HOME
● Alternative to having employees
come to an organization's building
● TELECOMMUTING/
TELEWORK/ MOBILE WORKING
:
employee uses a computer to
electronically interact with a central
office (Ex: computer programming,
data entry , and telemarketing)

● SWING : working in evening

● GRAVEYARD : late-night/overnight

● CIRCADIAN RHYTHMS : the 24

hour cycles of physiological functions
maintained by every person

● FIXED SHIFTS : separate groups

of employees permanently work the
day shift, swing shift and night shift

● ROTATING SHIFTS : those in

which an employee rotates through
all three shifts (Ex: working the day
shift for a while, then switching the
swing shift then working the night
shift)