Organization Development and Reinventing the Organization Chapter 1 Organization Development and Reinventing the Organization An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

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 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

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 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Figure 1.1 The Organizational Environment An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

What Is OD? Long-range efforts and programs. Aimed at improving organization’s ability to survive. OD changes problem-solving and renewal processes. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

OD Is: Planned. Organization wide. Managed from top. Increases organization effectiveness. Planned interventions. Uses behavioral science knowledge. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

The Characteristics of OD Planned change. Collaborative approach. Improve performance. Humanistic values. Systems approach. Scientific approaches. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Table 1.1 Major Characteristics of the Field of OD An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Why OD? Most cited reasons for beginning change program: The level of competition. Survival. Improved performance. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Primary Goals of Change Programs Change the corporate culture. Become more adaptive. Increase competitiveness. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

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 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

The Only Constant Is Change Change is a moving target. Today's managers need new mind-set. Flexibility. Speed. Innovation. Constantly changing conditions. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Successful Firms Share These Traits Faster. Quality conscious. Employee involvement. Customer oriented. Smaller. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Figure 1.2 Changing Organization of Twenty-First Century An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Evolution of OD Evolved since the late 1940s. NTL Laboratory-Training methods. Survey research and feedback. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Who Does OD? (part 1 of 3) OD practitioners consist of: Specialists. Those applying OD in daily work. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Who Does OD? (part 2 of 3) OD specialists are: Internal practitioners – from within the organization. External practitioners – from outside the organization. Managers apply OD principles and concepts. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

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 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Organization Culture A system of shared meanings including:: Language. Dress. Patterns of behavior. Value system. Feelings. Attitudes. Interactions. Group norms. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Norms Organized and shared ideas. What members should do and feel. How behavior is regulated. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Types of Norms Pivotal norms. Peripheral norms. Essential to accomplishing organization’s objectives. Peripheral norms. Support and contribute to pivotal norms. Not essential to organization’s objectives. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Socialization Process Process that adapts employees to culture. New employees become aware of norms. Employees encounter culture. Individuals understand power, status, rewards, sanctions. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Figure 1.4 The Socialization Process An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Adjustment to Cultural Norms Rebellion. Rejection of all values and norms. Conformity. Acceptance of all values and norms. Creative individualism. Acceptance of pivotal values. Rejection of others. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Figure 1.5 Basic Responses to Socialization An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Psychological Contract Unwritten agreement between individuals and organization. Open-ended so issues may be renegotiated. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

A Model for Change OD is continuing process. Emphasis on viewing organization as total system. System consists of interacting and interrelated elements. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Figure 1.6 Organization Development’s Five Stages An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Five-stage Model for OD Process (part 1 of 5) Stage One Anticipating Need for Change. Someone recognizes need for change. Must be felt need for change. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Five-stage Model for OD Process (part 2 of 5) Stage Two Develop Practitioner-Client Relationship. Practitioner enters system. Good first impressions important. Practitioner establishes trust and open communication. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Five-stage Model for OD Process (part 3 of 5) Stage Three The Diagnostic Phase. Practitioner and client gather data. Objective to: Understand client’s problems. Identify causes. Select change strategies. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

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 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Five-stage Model for OD Process (part 5 of 5) Stage Five Self-Renewal, Monitor, and Stabilize. As program stabilizes, need for practitioner decreases. Monitor results. Stabilize change. Gradual disengagement of practitioner. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

OD Application GE’s Epicenter of Change Leadership Center is tool to spread change. OD, leadership, and innovation are applied to real-world. Participants include entry-level to highest positions. Customers invited to help solve mutual problems. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Subjects include leadership and management skills. Executive courses are in leadership and strategy. Participants are 50% non-U.S. New centers have opened outside of U.S. GE believes strong leaders are imperative. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

OD Application Leave No One Behind At Starbucks Starbucks’ unique culture instrumental in success. Challenge is maintaining “formula” that made them successful. CEO communicates strong vision to employees. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

“Leave no one behind” shows up in training and salaries. Starbucks wants self-motivated team players. Major objective is maintaining entrepreneurial spirit. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Key Words and Concepts Action research model. Change agent. Collecting and feeding back information. Implementing action programs. Change agent. Person attempting to bring change. Client System. Person or organization that is being assisted. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Creative individualism. Questioning of peripheral norms. Accepting of pivotal norms. External practitioner. Person from outside who is resource for change. Internal practitioner. Internal resource for change. Could be manager. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Organization development (OD). Norms. Organized and shared ideas. What members should do and feel. How behavior should be regulated. Organization culture. System of shared meanings. Includes language, dress, values, norms. Organization development (OD). Planned strategy to bring about change. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

OD practitioner. OD specialist. Peripheral norms. Pivotal norms. People using and assisting others to implement OD. OD specialist. Professional specialized and trained in OD. Peripheral norms. Support and contribute to pivotal norms. Not essential to organization's objectives. Pivotal norms. Essential to organization's objectives. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Psychological contract. Expectations between individual and organization. Socialization. Process of individual adjusting to organization's culture. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

OD Skills Simulation 1.1 Auditioning For The Saturday Night Live Guest Host Spot Purpose. Share expectations between students and instructor. Instructor can find out what students expect. Students can learn what instructor expects. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

OD Skills Simulation 1.2 The Psychological Contract Purpose. Goal is to build trust within class. Share information about yourself. Explore values and norms. Experience interviewing another person. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Preparations for Next Chapter Read Chapter 2. Read instructions for Simulation 2.1. Complete Part A, Steps 1 and 2. Read “Instructions for Developing OD Practitioner Roles and Skills.” Read and prepare Case: The NoGo Railroad. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall