Organization Development and Change Chapter Twenty Four: Organization Development in Nonindustrial Settings: Health Care, School Systems, the Public Sector, and Family-Owned Businesses Thomas G. Cummings Christopher G. Worley

Learning Objectives for Chapter Twenty Four To understand how OD in nonindustrial settings health care, school systems, the public sector and family-owned businesses differs from traditional practice contexts To examine how OD is practiced in four non-traditional settings Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning Trends in Health Care Erosion of comprehensive health insurance and access to care Movement to the electronic record Stabilization of physician-hospital relationships Growing reliance on philanthropy Employer support of consumer-directed health care Loss of baby-boomer caregivers and managers Increased need to manage new clinical technology Quality as a strategic and regulatory imperative Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

Organization Development in Health Care Consumers are insulated from economics of health care by insurance providers Key providers of care are often not exclusively employed by one hospital or care setting Hospitals are primarily “not for profit” and heavily regulated by government Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

Opportunities for OD Practice in Health Care Settings Creating effective Cultures High quality, cost effective human resource systems Effective job and work design Restoring trust in and among stakeholders Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

Success Principles for OD in Health Care Demonstrate the relevance of the subject to strategic performance Demonstrate the importance of depth for sustainability Demonstrate Competence Facilitate integration among and between the diverse parts of the system Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

Organization Development in School Systems Education with industrial-age roots Changing Conditions Cause Stress Disappointing Reform Efforts New Metaphor for Schools Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

Future Opportunities for OD Practice in School Systems Building Trust Setting strategy Learning Design Collaboration Action Research Community Engagement Leadership Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

Technology’s Unique Role in School OD Online learning communities Media-based learning Gaming environments Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

Trends affecting Public-Sector Organizations Federal, state, and local governments operate in an environment of competing political, social and economic forces Public-sector organizations are called to become more citizen focused and to operate as an efficient business Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

Values and Structures of Public-Sector Organizations Values focus on governing toward greater public good and to demonstrating responsiveness to public wants and needs Structures are political-administrative creating an inherent tension within the organization Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

Characteristics of Public-Sector Organizations Multiplicity of decision makers Creates difficulty in identifying who is responsible for different steps in the governmental process Stakeholder Access Open to the public, diverse groups of people with different and competing interests Intergovernmental relations Federal, state, and local governments share power, responsibility and resources Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

OD in Public-Sector Organizations Focus on technostructural interventions Work flow design and structure Tailor interventions to fit highly diverse, politicized situations Continuous improvement, customer focus Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

Three Systems in Family-Owned Businesses Ownership Family Statement Values, Mission, Vision (Values) Shareholder’s Agreement (Laws)) Family Business Family Business Protocol Policies (Rules) Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

The Parallel Planning Processes Management Philosophy Core Values Values Strategic Thinking Strategic Commitment Family Commitment Business Family Shared Future Vision Business Vision Family Vision Formulating Plans Business Strategy Plan Family Enterprise Plan Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

Critical Issues in Family Business Entering or leaving the business as a family member Conflicts and rivalry Ownership transfer and estate planning Selecting a new leader Business growth and family wealth Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

OD Interventions in Family Business Systems Entering and contracting Create a safe emotional environment—trust Diagnosing the organization Confidential interviews of stakeholders Feedback and planning Build good communication practices Implementing and evaluating change Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning