Organization Development and Change

Chapter Nine: Designing Interventions

Learning Objectives for 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

9-2

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.
9-3

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?
9-4

The Design of Effective Interventions
 Contingencies Related to

the

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

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

9-5

The Design of Effective Interventions
 Contingencies Related to

the

Target of Change
• • • • Strategic Issues Technology and structure issues Human resources issues Human process issues

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

9-6

Intervention Overview
 Human Process

Interventions Management

 Technostructural Interventions

 Human Resources

Interventions
 Strategic

Interventions
9-7

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

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)
9-9

Human process interventions

12–10

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
9-11

A Performance Management Model
Business Strategy Reward Systems Individual and Group Performance Goal Setting Employee Involvement

Performance Appraisal

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

17-12

Performance Appraisal Elements
Elements
Purpose Appraiser Role of Appraisee

Traditional
 Organizational, legal  Fragmented  Supervisor or manager  Passive recipient

High Involvement
 Developmental  Integrative  Appraisee, co-

workers, and others  Active participant

 Subjective  Objective and Measurement  Concerned with validity subjective  Period, fixed,  Dynamic, timely,

Timing

administratively driven

employee- or workdriven
17-13

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

Reward System Design Features
Design Feature Person/Job Based vs. Performance Based Market Position (External Equity) Internal Equity Hierarchy Centralization Rewards Mix Security Definition The extent to which rewards are based on the person, the job or the outcomes of the work The relationship between what an organization pays and what other organizations pay The extent to which people doing similar work within and organization are rewarded the same The extent to which people in higher positions get more and varied rewards The extent to which reward system design, decisions and administration are standardized The extent to which different types of rewards are available and offered to people The extent to which work is guaranteed

Seniority

The extent to which rewards are based on length of service
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

17-14

Types of Rewards

Pay
 Skill-based

pay plans  Performance-based pay systems link pay to performance  Gain sharing involves paying bonuses based on improvements in the operating results

Promotions  Benefits

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

17-15

Salary-Based Pay for Performance Ratings

Individual Plan Productivity Cost effectiveness Superiors’ rating Group Productivity Cost effectiveness Superiors’ rating

4 3 3 3 3 2 2 2

1 1 1 1 1 1 1 1

1 1 1 2 2 2 3 2

4 4 3 4 4 3 4 4
17-16

Organization- Productivity wide Cost effectiveness

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

3. Techno-structural Intervention for transformational change
1
• Restructuring
Downsizing Re-engineering

2

• Work Design

3

• Employee Involvement

Quality circle

TQM

Downsizing Tactics
Tactic
Workforce Reduction

Characteristics
 Reduces headcount  Short-term focus  Fosters transition  Changes

Examples
 Attrition  Retirement/buyout  Layoffs  Eliminate functions,

Organization organization Redesign  Medium-term focus  Fosters transition & transformation
 Changes culture  Long-term focus  Fosters

layers, products  Merge units  Redesign tasks
 Change

Systemic

transformation

responsibilities  Foster continuous improvement  Downsizing is normal
14-18

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

Employee Involvement
Extent to which employees have access to:  Power  Information  Knowledge and Skills  Rewards Applications of employee involvement are: a. Parallel structures b. TQM

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

15-19

EI and Productivity
Improved Communication and Coordination
Employee Involvement Intervention Improved Motivation Improved Productivity

Improved Capabilities

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

15-20

Secondary Effects of EI on Productivity
Employee Well-being and Satisfaction
Attraction and Retention Productivity

Employee Involvement Intervention

Productivity

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

15-21

Work Design Approaches

Engineering: Traditional Jobs & Groups
 High specification and routinization  Low task variety and autonomy

Motivational: Enriched Jobs
 High task variety and autonomy  Feedback of results

Sociotechnical: Self-Managing Teams
 Control over total task  Multi-skilled,

flexible, and self-regulating
16-22

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

Enriched Jobs
Core Job Characteristics
Skill variety Task identity Task significance

Critical Psychological States
Experienced Meaningfulness of the Work

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

Autonomy
Feedback from work

Experienced Responsibility
Knowledge of Actual Results

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

16-23

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?

16-24

Designing Work for Technical 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.
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

16-25

Work Designs That Optimize Technology
High Technical Uncertainty Low Traditional Job Design Traditional Work Groups

Enriched Jobs

Self-Regulating Work Groups

Low

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

16-26

Work Designs that Optimize Personal Needs
Growth Needs Low Traditional Job Design Traditional Work Groups

Enriched Jobs

Self-Regulating Work Groups

High

Low

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

High
16-27

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

9-28

Strategic Interventions

Transformational Change
 Integrated Strategic Change  Organization Design

 Culture Change

Continuous Change
 Mergers and Acquisitions  Alliances and Networks

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

9-29

Strategic Interventions

Transorganizational Change
 Self-designing Organizations  Organization Learning and Knowledge

Management
 Built to Change Organizations

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

9-30

The Self-Design Strategy
Laying the Foundation

Acquiring Knowledge

Designing

Implementing and Assessing

Diagnosing

Valuing

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

21-31

Organization Learning: An Integrative Framework
Organization Learning Knowledge Management

Competitive Strategy

Organization Characteristics Structure Information Systems HR Practices Culture Leadership

Organization Learning Processes Discovery Invention Production Generalization

Organization Knowledge Tacit Explicit

Organization Performance

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

21-32