Organization Development and Reinventing the Organization Chapter 1 Organization Development and Reinventing the Organization An Experiential Approach to Organization Development 7th edition

An Experiential Approach to Organization Development 7th edition 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 7th edition

The Workout: Organization Changes at GE (part 1 of 2) GE has training center for managers. Participants said GE was slow to make changes. Workout is program that came from sessions. An Experiential Approach to Organization Development 7th edition

The Workout: Organization Changes at GE (part 2 of 2) In workout employees take the leadership in bringing about changes. GE continues to use workout so it can reinvent itself. An Experiential Approach to Organization Development 7th edition

Challenges for Organizations Change avalanching down on us. Tomorrow’s world different from today’s. Organizations need to adapt to change. Organizations in continuous interaction with external forces. An Experiential Approach to Organization Development 7th edition

Figure 1.1 The Organizational Environment An Experiential Approach to Organization Development 7th edition

An Experiential Approach to Organization Development 7th edition What Is OD? Long-range efforts and programs aimed at improving an organization’s ability to survive by changing problem-solving and renewal processes. An Experiential Approach to Organization Development 7th edition

An Experiential Approach to Organization Development 7th edition OD Is: Planned. Organization wide. Managed from top. Increases organization effectiveness. Planned interventions. Uses behavioral science knowledge. An Experiential Approach to Organization Development 7th edition

The Characteristics of OD Planned change. Collaborative approach. Improve performance. Humanistic values. Systems approach. Scientific approaches. An Experiential Approach to Organization Development 7th edition

Table 1.1 Major Characteristics of the Field of OD An Experiential Approach to Organization Development 7th edition

Our Changing World: Germany in Slow-mo (part 1 of 2) Germany entering 2nd decade of stagnation. A model of world in ‘70s and ‘80s. Reputation as Europe’s unchanging core. History of blaming others for problems. An Experiential Approach to Organization Development 7th edition

Our Changing World: Germany in Slow-mo (part 2 of 2) Some looking inward for causes. Problem traced to job-protection law of ‘50s. Unions block proposals to reform labor laws. An Experiential Approach to Organization Development 7th edition

An Experiential Approach to Organization Development 7th edition Why OD? Most cited reasons for beginning change program: The level of competition. Survival. Improved performance. An Experiential Approach to Organization Development 7th edition

Primary Goals of Change Programs Increase productivity. Increase responsiveness. Improve competitive position. Increase employee involvement. Increase employee morale. Develop new managerial skills. An Experiential Approach to Organization Development 7th edition

Table 1.2 Major Goals of Large-Scale Change Programs An Experiential Approach to Organization Development 7th edition

Factors Leading to Emergence of OD Need for new organizational forms. Focus on cultural change. Increase in social awareness. An Experiential Approach to Organization Development 7th edition

The Only Constant Is Change Today's managers need new mind-set. Flexibility. Speed. Innovation. Constantly changing conditions. An Experiential Approach to Organization Development 7th edition

Successful Firms Share These Traits Faster. Quality conscious. Employee involvement. Customer oriented. Smaller. An Experiential Approach to Organization Development 7th edition

Figure 1.2 Changing Organization of Twenty-First Century An Experiential Approach to Organization Development 7th edition

OD in Practice: Trilogy Software (part 1 of 2) Trilogy Software example of shifting organizational structures. Workers are shareholders, managers, and partners. Biggest worry is not facing down other businesses. An Experiential Approach to Organization Development 7th edition

OD in Practice: Trilogy Software (part 2 of 2) Depends on talented people. Economy fostering new kinds of practices. This case shows major element in planned change is planning for organizational culture. An Experiential Approach to Organization Development 7th edition

An Experiential Approach to Organization Development 7th edition Evolution of OD Evolved since the late 1940s. NTL Laboratory-Training methods. Survey research and feedback. An Experiential Approach to Organization Development 7th edition

An Experiential Approach to Organization Development 7th edition Who Does OD? (part 1 of 3) OD practitioners consist of specialists and those applying OD in daily work: Professionals and specialists trained in OD. Managers and leaders applying OD. An Experiential Approach to Organization Development 7th edition

An Experiential Approach to Organization Development 7th edition Who Does OD? (part 2 of 3) OD specialists: Internal practitioners – from within organization. External practitioners – from outside organization. An Experiential Approach to Organization Development 7th edition

An Experiential Approach to Organization Development 7th edition Who Does OD? (part 3 of 3) Activities include: Team leaders developing teams. Building learning organizations. Implementing total quality management. Creating boundaryless organizations. An Experiential Approach to Organization Development 7th edition

An Experiential Approach to Organization Development 7th edition Organization Culture A system of shared meanings including: Dress. Patterns of behavior. Language. Value system. Feelings. Attitudes. Interactions. Group norms. An Experiential Approach to Organization Development 7th edition

An Experiential Approach to Organization Development 7th edition Norms (part 1 of 2) Organized and shared ideas of what members should do and feel. How behavior is regulated. An Experiential Approach to Organization Development 7th edition

An Experiential Approach to Organization Development 7th edition Norms (part 2 of 2) Pivotal norms - essential to accomplishing organization’s objectives. Peripheral norms - support and contribute to pivotal norms but not essential to organization’s objectives. An Experiential Approach to Organization Development 7th edition

Socialization Process Process that adapts employees to culture. New employees become aware of norms. Employees encounter culture. Individuals understand power, status, rewards, and sanctions. An Experiential Approach to Organization Development 7th edition

Figure 1.3 The Socialization Process An Experiential Approach to Organization Development 7th edition

Adjustment to Cultural Norms and Socialization Occurs in 3 Ways Rebellion - rejection of all values and norms. Conformity - acceptance of all values and norms. Creative individualism - acceptance only of pivotal values; rejection of others. An Experiential Approach to Organization Development 7th edition

Figure 1.4 Basic Responses to Socialization An Experiential Approach to Organization Development 7th edition

Psychological Contract Unwritten agreement between individuals and organization. Open-ended so issues may be renegotiated. An Experiential Approach to Organization Development 7th edition

An Experiential Approach to Organization Development 7th edition A Model for Change OD is continuing process with emphasis on viewing organization as total system of interacting and interrelated elements. An Experiential Approach to Organization Development 7th edition

Figure 1.5 Organization Development’s Five Stages An Experiential Approach to Organization Development 7th edition

Five-stage Model for OD Process (part 1 of 5) Stage one: Anticipating need for change. Someone recognizes need for change. There must be felt need for change. An Experiential Approach to Organization Development 7th edition

Five-stage Model for OD Process (part 2 of 5) Stage two: Developing practitioner-client relationship. OD practitioner enters system. Good first impressions and match important. Practitioner establishes trust, open communication, shared responsibility. An Experiential Approach to Organization Development 7th edition

Five-stage Model for OD Process (part 3 of 5) Stage three: The diagnostic phase. Practitioner and client gather data about system. Objective is to understand client’s problems, identify forces causing situation, and select change strategies. An Experiential Approach to Organization Development 7th edition

Five-stage Model for OD Process (part 4 of 5) Stage four: Action plans, strategies, and techniques. Series of interventions, activities, or programs aimed at increasing effectiveness. Programs apply OD techniques. An Experiential Approach to Organization Development 7th edition

Five-stage Model for OD Process (part 5 of 5) Stage five: Self-renewal, monitor, and stabilize. As OD program stabilizes, need for practitioner decreases. Monitor results. Stabilize change. Gradual disengagement of OD practitioner. An Experiential Approach to Organization Development 7th edition

An Experiential Approach to Organization Development 7th edition Key Words and Concepts Action research model - collecting information, feeding back to client, developing and implementing action programs. Change leader - person responsible for change. An Experiential Approach to Organization Development 7th edition

An Experiential Approach to Organization Development 7th edition Client - person or organization that is being assisted. Creative individualism - questioning of peripheral norms, accepting of pivotal norms. External practitioner - person from outside organization who serves as resource for change. An Experiential Approach to Organization Development 7th edition

An Experiential Approach to Organization Development 7th edition Internal practitioner - internal resource for change. Norms - organized and shared ideas regarding what members should do and feel, how behavior should be regulated, and what sanctions should be applied. An Experiential Approach to Organization Development 7th edition

An Experiential Approach to Organization Development 7th edition Organization culture - system of shared meanings, including language, dress, values, norms of organization. Organization development - planned strategy to bring about change. OD practitioner - people using, advocating, and assisting others to implement OD. An Experiential Approach to Organization Development 7th edition

An Experiential Approach to Organization Development 7th edition OD specialist - professional who has specialized and trained in OD and related areas. Peripheral norms - support and contribute to pivotal norms but not essential to organization's objectives. An Experiential Approach to Organization Development 7th edition

An Experiential Approach to Organization Development 7th edition Pivotal norms - essential to organization's objectives. Psychological contract - expectations between individual and organization. Socialization - process of individual adjusting to organization's culture. An Experiential Approach to Organization Development 7th edition

Preparations for Next Chapter Read Chapter 2. Read instructions for Simulation 2.1. Read and prepare analysis for Case: The NoGo Railroad. An Experiential Approach to Organization Development 7th edition