©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Organization The skeletal structure that helps create predictable relationships among people, technology, jobs, and resources.

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Teamwork Where work is interdependent, employees act as a task team and seek to develop a cooperative state called teamwork.

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Teamwork Just calling a group a team does not change its basic character or effectiveness Contributors to teamwork: Supportive environment Skills matched to role requirements Superordinate goals Team rewards

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Life Cycle of a Team FormingSharing of personal information, aura of courtesy; cautious interactions Storming Members compete for status and control, argue about direction for the group NormingGroup begins moving in a cooperative fashion, tentative balance among competing forces, norms emerge and guide behavior PerformingGroup matures and learns to handle complex challenges, functional roles performed fluidly, tasks accomplished efficiently AdjourningEven the most successful teams disband sooner or later

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Ingredients of Effective Teams Supportive environment Skills and role clarity Superordinate goals Team rewards Empowered teams Potency Meaningfulness Autonomy Impact

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Ingredients of Effective Teams James Surowiecki concludes that good group decision making requires: Diversity of opinion, information, or perspective Independent choices not influenced by others Access to decentralized knowledge and the empowerment to make decisions based on that knowledge An aggressive mechanism for producing collective decisions from private judgments

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Potential Team Problems Changing Composition Anticipate and accept that turnover will happen Develop a plan for managing turnover Decide how to best integrate new members Recognize a new member as an opportunity for group improvement

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Potential Team Problems Social Loafing Perception of unfair division of labor Belief that coworkers are lazy Feeling that one cannot be singled out for blame Sucker effect Impacts Colleagues feel anger or empathy Colleagues may complain to management Coworkers may offer pep talks, training, threats, or expectations for improvement

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Team Building Encourages team members to: Examine how they work together Identify their weaknesses Develop more effective ways of cooperating

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Team Coaching Vital to team success Team leader helps team members make good use of collective resources Is most effective when it is: Task-focused Timely Recognized as necessary by the team Oriented toward motivation of members or performance method improvements, or knowledge/skill deficiencies

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Facilitating Behaviors Encouraging open communication Observing team meetings Probing and questioning Confronting individuals Stimulating problem solving Attending to nonverbal cues Encouraging learning

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Characteristics of Mature Teams Regularly achieves and even surpasses goals Exhibits valued attitudes and behaviors Improved performance/productivity Lower absenteeism Diminished turnover Improved safety record Increased acts of organizational citizenship Individual satisfaction Interpersonal trust Organizational commitment Team cohesiveness Sets progressively higher standards for itself

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Change at Work The nature of change: Effects are widespread Human and technical problems Managers have proactive and reactive roles Responses to change: Experiments relating lighting to productivity Individual attitudes affect response Feelings are nonlogical The Hawthorne effect Observation affects behavior

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Group Response to Change

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Change at Work Homeostatis A group tends to return to its perceived best way of life when any change occurs People establish a steady state of need fulfillment and protect themselves from disturbance of that balance

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Change at Work Costs and Benefits Psychic costs Repetitive change syndrome No clear-cut, 100 percent benefit for all parties

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Resistance to Change Any behavior designed to discredit, delay, or prevent a work change Change threatens employee needs for: Security Social interaction Status Competence Self-esteem

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Resistance to Change Other Causes of Resistance Culture over-values criticism of new ideas Employees support ideas in public but undercut changes behind the scenes Managers who suffer from “analysis paralysis” Emphasis on flashy proposals, not follow- through A “bunker” mentality

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Resistance to Change Nature and Effects Perceived threats can be real or imagined, intended or unintended, direct or indirect, large or small Resistance doesn’t respect type of dress or job Some changes are actively sought by employees Change can be a success or a problem, depending on how skillfully it is managed Chain-reaction effect may develop

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Resistance to Change Reasons for Resistance Nature of the change itself Method by which change is introduced Someone else appears to gain the benefits From Resistance to Acceptance Denial Anger Depression Search for alternative Acceptance

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Resistance to Change Types of Resistance Logical, rational Psychological, emotional Social factors, group interests

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Resistance to Change Possible Benefits of Resistance Discourages careless management decisions Identifies problem areas where change may cause difficulties Encourages better communication Helps management gauge intensity of employee emotions on an issue Provides emotional release for pent-up employee feelings Thinking and talking about the change encourages employees to better understand it

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Implementing Change Successfully Transformational Leadership and Change Management needs a master strategy Learning organizations are needed Transformational Leaders Creating vision Communicating charisma Stimulating learning  Double-loop learners challenge their own thinking

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Implementing Change Successfully Manipulating the Forces Equilibrium between supporting and restraining forces Introducing Change Add new supporting forces Remove restraining forces Increase the strength of a supporting force Decrease the strength of a restraining force Convert restraining force into a supporting force

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Implementing Change Successfully Building Support for Change Use group forces Provide a rationale for change Expectations are important Encourage participation Ensure economic and psychic rewards Ensure employee security Communicate and educate Stimulate employee readiness Work with the total system

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Understanding Organization Development Organizational Development (OD) Systematic application of behavior science knowledge at various organizational levels to bring about planned change Helps managers recognize that organizations are systems with dynamic interpersonal relationships holding them together

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Understanding Organization Development Variables in the OD Approach

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Understanding Organization Development Foundations of OD Systems organization Understanding causality Assumptions underlying organization development

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Organization Development Assumptions Individuals Want to grow and mature Have much to offer that is not now being used Desire the opportunity to contribute Groups Critical to organizational success Powerful influences on individual behavior Complex roles require skill development

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Organization Development Assumptions Organization Excessive controls, policies, and rules are detrimental Conflict can be functional if properly channeled Individual and organizational goals can be compatible

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Characteristics of Organizational Development Humanistic values Use of a change agent Problem solving Interventions at many levels Appreciative inquiry Contingency orientation Summary and application Integrates people, structure, technology, and environment

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved The Organizational Development Process

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Benefits of OD More widely dispersed improvement Greater motivation Increased productivity Better quality of work Higher job satisfaction Improved teamwork Better resolution of conflict Commitment to objectives Increased willingness to change Reduced absences Lower turnover Creation of learning individuals and groups

©2007 The McGraw-Hill Companies, Inc., All Rights Reserved Limitations of OD Major time requirements Substantial expense Delayed payoff period Possible failure Possible invasion of privacy Possible psychological harm Potential conformity Emphasis on group processes, not performance Possible conceptual ambiguity Difficulty in evaluation Cultural incompatibility