1. Organization Development Chapter 14

2. Overview of Organizations  Organizations are  ‘Alive’  Under constant pressure to change  Able to shape the behavior of their members  Major activity of I/O psychologists is to help with change  Must look at how organizations are structured to understand change

3. Organizational Development  Organizational Development  System wide application of behavioral science to the planned development, improvement, and reinforcement of the strategies, structures, and processes that lead to organizational effectiveness (Cummings & Worley, 2008)  The process of improving organizational performance by making organization-wide, rather than individual, changes

4. Organizational Development  Many aspects to OD  Book focuses on:  Managing change  Empowering employees  Downsizing  Implementing innovative work schedules

5. Sacred Cow Hunts  Organizational Sacred cows are useless practices that have been a around for a while  Sacred Cow Hunts are attempts to find these practices and remove them  3 common types of sacred cows 1. Paper cow 2. The meeting cow 3. The speed cow

6. The Paper Cow  Unnecessary paperwork, typically forms and reports that cost organizations money to prepare, distribute, and read  Determining a Paper Cow  Ask if employees actually read the paperwork  Extent to which the paper work increases: efficiency, productivity, or quality

7. The Meeting Cow  Unnecessary length/ number of meetings  Ways organizations combat this?  Organizations requiring person calling the meeting to run a cost analysis, deciding if the cost of the meeting will exceed benefits of the meeting

8. The Speed Cow  Unnecessary deadlines  These can lead to:  Decreased quality of work  Increased stress  Increased health problems

9. Managing Change  Change can occur for many reasons  Downsizing  Reorganization  Introduction of teams  New government regulations  New leadership  New personnel  Can you think of any others?

10. Employee Acceptance of Change  Employees are often reluctant to change  Fear that change will result in less favorable working conditions or economic outcomes

11. Change Acceptance & Resistance  Employee Stages  Denial (old way better)  Defense (justify old positions)  Discarding (old ways)  Adaptation (adjustments to learn new systems)  Internalization (immersed)

12. Change Acceptance & Resistance  Important Factors  Type of change  Evolutionary  Revolutionary  Reason for change  Understand- financial, external mandates, improvement  Do not accept when change in philosophy  Person making change (trustworthy)  Acceptance when the change is within  Leaders being respected and well liked  Person Being Changed  Change Agents, Change Analyst, Receptive Changers, reluctant changers

13. Change Acceptance & Resistance  Individual characteristics  Change agents  Change analysts  Receptive changers  Reluctant changers  Change resisters

14. Theories of Planned Change:  Lewin’s Model  General Model

15. Lewin’s Change Model UnfreezingChangingRefreezing

16. General Process of Planned Change  Entering  Contracting  Diagnosing  Intervening (Planning and Interventions)  Evaluating  Institutionalizing

17. Implementing Change  Create an atmosphere for change  Communicate details  Time frame (2 years max)  Training to adjust to changes

18. Organization Development  Focus on 4 major issues regarding organization development 1. Empowering Employees 2. Flexible Work Arrangements 3. Downsizing 4. Cultural Changes

19. Empowerment  Employees feeling that they have some control over what they do  Helps increase employee’s job satisfaction  Can increase levels of employee’s input

20. Empowerment  Levels of employee input  Following  Ownership of own product  Advisory  Shared/Participative/Team  Absolute

21. Flexible Work Schedules  Full-Time Work, Flexible Hours  Bandwidth  Core hours  Flexible hours  Schedules  Gliding time (no advance notice)  Flexitor (set schedule in advance)  Modified flexitor (change set schedule with little notice)

22. Flexible Work Schedules  Compressed workweek  E.g., Four 10 hour days instead of five 8 hour days  Reducing Work Hours  Peak-time pay (more by the hour but fewer hours)  Casual work (as-needed)  Job sharing (2 employees working 40 hours)  Telecommuting

23. Downsizing  When organizations downsize, the result is often a decrease in the size of their workforce  Reductions in workforce can be due in part to:  Economic difficulties  Mergers  New technology replacing humans  Employee empowerment programs (reducing need for managers)

24. Reducing the Impact of Downsizing Signs of Problems  Organizations usually have some warning that there may be an impending need to downsize  Some companies hire temporary employees as a way to avoid having to downsize permanent employees. Outsourcing is used by more than 80% of organizations  Other ways include: encouraging employees to change careers, offering early retirement packages, ask employees to take pay cuts, adjust work schedules

25. Reducing the Impact of Downsizing Selecting the Employees to be Laid off Usable Criteria  Seniority  Performance  Salary Level  Organizational Need Criteria to Avoid  Race  Sex  Age

26. Class Activity Answer the following questions: 1. Why are some employees reluctant to change? 2. What do organizations mean by “empowering employees”? 3. Is downsizing a good idea? Why or why not?