1. Welcome Back to Organizational Development & Change!
Agenda
Organic Design
Bottom Up Change
Case Analysis
Cummings & Worley, 9e (c) South-Western/Cengage Learning

2. Cummings & Worley,9e (c) 2008 South-Western/ Cengage Learning
Employee Involvement
Employee involvement seeks to increase members’ input into decisions that affect organization performance and employee well-being.
Employee involvement (EI) is the broad term for diverse approaches to gain greater participation in relevant workplace decisions.
Cummings & Worley,9e (c) 2008 South-Western/ Cengage Learning

3. Cummings & Worley,9e (c) 2008 South-Western/ Cengage Learning
Employee Involvement
Power
Extent to which influence and authority are pushed down into the organization
Information
Extent to which relevant information is shared with members
Knowledge and Skills
Extent to which members have relevant skills and knowledge and opportunities to gain them
Rewards
Extent to which opportunities for internal and external rewards are tied to effectiveness
Cummings & Worley,9e (c) 2008 South-Western/ Cengage Learning

4. Cummings & Worley,9e (c) 2008 South-Western/ Cengage Learning
EI and Productivity
Improved
Communication
and Coordination
Employee
Involvement
Intervention
Improved
Productivity
Improved
Motivation
Improved
Capabilities
Cummings & Worley,9e (c) 2008 South-Western/ Cengage Learning

5. Secondary Effects of EI on Productivity
Employee
Well-being and
Satisfaction
Attraction and
Retention
Productivity
Employee
Involvement
Intervention
Productivity
Cummings & Worley,9e (c) 2008 South-Western/ Cengage Learning

6. High Involvement Organization Features
Flat, lean organization structures
Enriched work designs
Open information systems
Sophisticated selection and career systems
Extensive training programs
Advanced reward systems
Participatively designed personnel practices
Conducive physical layouts
Cummings & Worley,9e (c) 2008 South-Western/ Cengage Learning

7. Work Design Approaches
Engineering: Traditional Jobs & Groups
High specification and routinization
Low task variety and autonomy
Motivational: Enriched Jobs
High task variety and autonomy
Feedback of results
Sociotechnical: Self-Managing Teams
Control over total task
Multi-skilled, flexible, and self-regulating
Cummings & Worley, 9e (c) South-Western/Cengage Learning

8. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Enriched Jobs
Critical
Psychological
States
Core Job
Characteristics
Outcomes
Skill variety
Task identity
Task significance
Experienced
Meaningfulness
of the Work
Hi internal
work motivation
Hi growth
satisfaction
Hi job
Hi work
effectiveness
Autonomy
Experienced
Responsibility
Feedback from
work
Knowledge of
Actual Results
Moderators
Cummings & Worley, 9e (c) South-Western/Cengage Learning

9. Designing Work for Technical and Personal
Technical Factors
Technical interdependence: the extent to which cooperation among workers is required
Technical Uncertainty: the amount of information processing and decision making among workers necessary to do the work
Personal Need Factors
Social Needs: the desire for significant social relationships
Growth Needs: the desire for personal accomplishment, learning, and development.
Cummings & Worley, 9e (c) South-Western/Cengage Learning

10. Self-Regulating Work Groups
What’s the Purpose?
Who belongs?
What holds it together?
How long does it last?
Community of Practice
To develop members’ capabilities; to build and exchange knowledge
Members who select themselves
Passion, commitment, and identification with the group’s expertise
As long as there is interest in maintaining the group
Formal Work Group
To deliver a product or service
Everyone reports to the group’s manager
Job requirements and common goals
Until the next reorganization
Project Team
To accomplish a specified task
Employees assigned by a senior manager
The project’s milestones and goals
Until the project is completed
Informal Network
To collect or pass on business information
Friends and business acquaintances
Mutual Needs
As long as people have a reason to connect
Cummings & Worley, 9e (c) South-Western/Cengage Learning

11. How to start and sustain a community of practice:
Identify potential communities of practice that will enhance the company’s strategic abilities.
Identify domain of expertise
Provide the infrastructure that will support such communities and enable them to apply their expertise effectively.
IT systems, official sponsors or support teams, rewards
Use non-traditional ways to assess the value of the company’s communities of practice.
Collect stories
Cummings & Worley, 9e (c) South-Western/Cengage Learning

12. Top-down vs. Bottom-up Tennis Ball Exercise
Get into your groups and select a timer and a ball feeder for this exercise…
Cummings & Worley, 9e (c) South-Western/Cengage Learning

13. IDEO: What they do
IDEO helps companies innovate. They design products, services, environments, and interactions.
“Head in the sky...” IDEO’s teams, culture, and methods are the special ingredients that fuel our approach to innovation and design.
“...feet on the ground.” What’s a good idea worth if it can’t be realized? IDEO’s world-class designers and engineers ensure that the power of the vision is preserved in the journey from concept to final production.

14. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
IDEO TEAMS
Cummings & Worley, 9e (c) South-Western/Cengage Learning

15. Conditions that Support Change from the Bottom
When the task is complex and requires insight from organizational members
When the environment is dynamic and changes to products and services are needed
When quality and innovation is at a premium
When organizational members are mindful and engage in constant adaptation.

16. Some weaknesses of approaching change from the bottom up
When human capital is lost, performance can decline.
Participation by uninformed, unskilled and umotivated workers does not enhance organizational change.
It requires an investment of money and time to encourage participation and empowerment.
Rhetoric about empowered participation, without action breed cynicism and conformity.
Change depends on top management’s willingness to build the skills and knowledge of organizational members.

17. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Johnsonville Sausage
The story of one organization’s dramatic transformation
CEO Ralph Stayer has been very directive, involved in most day-to-day decision making
But Stayer is not satisfied with the current organization and seeks to initiate a change
Employees were bored, made dumb mistakes, and didn’t care
Cummings & Worley, 9e (c) South-Western/Cengage Learning

18. Lincoln Electric vs. Johnsonville Sausage
What are some of the similarities and differences in terms of work environment, work force, leadership, compensation?
How does this affect organizational change at Johnsonville Sausage?
Cummings & Worley, 9e (c) South-Western/Cengage Learning

19. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Johnsonville Sausage
How does change occur at JF?
What is the process for the change?
Who is involved?
Why is this change successful?
Any concerns?
Cummings & Worley, 9e (c) South-Western/Cengage Learning

20. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Cummings & Worley, 9e (c) South-Western/Cengage Learning

21. Ralph Strayer’s Guide to Improving Performance
People want to be great. If they aren’t, it’s because management won’t let them be.
Performance begins with each individual’s expectation. Influence what people expect and you influence how people perform.
Expectations are driven partly by goals, vision, symbols, semantics, and partly by the context in which people work, that is, by things as compensation systems, production practices, and decision-making structures.
The actions of managers shape expectations.
Learning is a process, not a goal. Each new insight creates a new layer of potential insights.
The organization’s results reflect me and my performance.
Cummings & Worley, 9e (c) South-Western/Cengage Learning

22. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Johnsonville Sausage
The structure and decision-making ability of Johnsonville Sausages was tested when the organization faced the opportunity for growth
Palmer Sausages offered Johnsonville a private label opportunity to produce sausages which would amount to a 25% profit increase.
However the commitment would require another production shift added to the work force which would me rapid hiring of people who may not fit into organization, or significant overtime from the current employees.
Cummings & Worley, 9e (c) South-Western/Cengage Learning

23. In groups, answer the following question:
How should Ralph Stayer react to Palmer Sausage’s request?
What decision needs to be made and what is the best process for making this decision?
He should ask employees if they can and want to handle extra responsibility, reminding them that it is there decision.
He should agree to the production; it’s an opportunity to hire more people who can develop their leadership skills. According to his philosophy, as a leader, he should enable those potential employees to learn and grow.
He should not do it. The commitment is not his to make since it require too much overtime, which will inhibit his workers to be empowered. Also rapidly hiring could erode the phenomenal culture that they have built.
Cummings & Worley, 9e (c) South-Western/Cengage Learning

24. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Final Outcome
Stayer made his opinion known: that he thought the production would stretch the organization beyond its capacity, but announced that he had faith in the decision-making ability of his people.
The members of Johnsonville Sausages, after weighing the pros and cons, elected to accept the offer and worked overtime consistently for 2 years so that they were not required to hire and then fire new people.
Cummings & Worley, 9e (c) South-Western/Cengage Learning

25. Comparing the Values and Vision of Lincoln & Johnsonville
Management system must meet the needs of all stakeholders
Strayer’s philosophy is much less completely worked out. Focus on the production system.
System is congruent with strategies and all policies
System is congruent, but future issues have not been thought out.
Conception, maintenance, and adaptation to change of the system is a management intensive task for the senior, general management teams.
System is conceived as freeing the general manager from any of the key tasks of maintenance and adaptation.
Cummings & Worley, 9e (c) South-Western/Cengage Learning

26. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Looking forward:
Can Ralph’s personal vision continue to serve Johnsonville in the future as the company gets bigger, goes public or he leaves?
What factors may limit the success of the vision in the future?
Cummings & Worley, 9e (c) South-Western/Cengage Learning

27. To make this degree of delegation work, there needs to be:
Clear objectives.
A willingness of the boss to give up authority and direct exercise of power.
Willingness of the people in the organization to buy0in.
Very good information and control systems so that individuals and activities can be measured.
Staff and managers that see themselves in supportive roles.
Great clarity in procedures.
Congruent incentives.
Skill, expertise down the line.
Trust in the leader!
Cummings & Worley, 9e (c) South-Western/Cengage Learning

28. As an organizational change agent:
You want to have a toolbox at your disposal for different approaches to change with a clear understanding of which approaches to change work best under what conditions
Cummings & Worley, 9e (c) South-Western/Cengage Learning