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

2. 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

3. 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

4. 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

5. 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

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

7. 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

8. 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

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

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

11. 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

12. 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

13. 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

14. 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

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

16. 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

17. 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

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

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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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

29. 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

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

31. 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

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

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

34. 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

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

36. 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

37. 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

38. 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

39. 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

40. 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

41. 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

42. 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

43. 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

44. 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

45. 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

46. 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

47. 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