1. Organization Development and Change
Chapter Twenty Four:
Organization Development in
Nonindustrial Settings: Health Care, School Systems, the Public Sector, and Family-Owned Businesses
Thomas G. Cummings
Christopher G. Worley

2. Learning Objectives for Chapter Twenty Four
To understand how OD in nonindustrial settings health care, school systems, the public sector and family-owned businesses differs from traditional practice contexts
To examine how OD is practiced in four non-traditional settings
Cummings & Worley, 9e (c) South-Western/Cengage Learning

3. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Trends in Health Care
Erosion of comprehensive health insurance and access to care
Movement to the electronic record
Stabilization of physician-hospital relationships
Growing reliance on philanthropy
Employer support of consumer-directed health care
Loss of baby-boomer caregivers and managers
Increased need to manage new clinical technology
Quality as a strategic and regulatory imperative
Cummings & Worley, 9e (c) South-Western/Cengage Learning

4. Organization Development in Health Care
Consumers are insulated from economics of health care by insurance providers
Key providers of care are often not exclusively employed by one hospital or care setting
Hospitals are primarily “not for profit” and heavily regulated by government
Cummings & Worley, 9e (c) South-Western/Cengage Learning

5. Opportunities for OD Practice in Health Care Settings
Creating effective Cultures
High quality, cost effective human resource systems
Effective job and work design
Restoring trust in and among stakeholders
Cummings & Worley, 9e (c) South-Western/Cengage Learning

6. Success Principles for OD in Health Care
Demonstrate the relevance of the subject to strategic performance
Demonstrate the importance of depth for sustainability
Demonstrate Competence
Facilitate integration among and between the diverse parts of the system
Cummings & Worley, 9e (c) South-Western/Cengage Learning

7. Organization Development in School Systems
Education with industrial-age roots
Changing Conditions Cause Stress
Disappointing Reform Efforts
New Metaphor for Schools
Cummings & Worley, 9e (c) South-Western/Cengage Learning

8. Future Opportunities for OD Practice in School Systems
Building Trust
Setting strategy
Learning Design
Collaboration
Action Research
Community Engagement
Leadership
Cummings & Worley, 9e (c) South-Western/Cengage Learning

9. Technology’s Unique Role in School OD
Online learning communities
Media-based learning
Gaming environments
Cummings & Worley, 9e (c) South-Western/Cengage Learning

10. Trends affecting Public-Sector Organizations
Federal, state, and local governments operate in an environment of competing political, social and economic forces
Public-sector organizations are called to become more citizen focused and to operate as an efficient business
Cummings & Worley, 9e (c) South-Western/Cengage Learning

11. Values and Structures of Public-Sector Organizations
Values focus on governing toward greater public good and to demonstrating responsiveness to public wants and needs
Structures are political-administrative creating an inherent tension within the organization
Cummings & Worley, 9e (c) South-Western/Cengage Learning

12. Characteristics of Public-Sector Organizations
Multiplicity of decision makers
Creates difficulty in identifying who is responsible for different steps in the governmental process
Stakeholder Access
Open to the public, diverse groups of people with different and competing interests
Intergovernmental relations
Federal, state, and local governments share power, responsibility and resources
Cummings & Worley, 9e (c) South-Western/Cengage Learning

13. OD in Public-Sector Organizations
Focus on technostructural interventions
Work flow design and structure
Tailor interventions to fit highly diverse, politicized situations
Continuous improvement, customer focus
Cummings & Worley, 9e (c) South-Western/Cengage Learning

14. Three Systems in Family-Owned Businesses
Ownership
Family Statement Values, Mission, Vision (Values)
Shareholder’s Agreement (Laws))
Family
Business
Family Business Protocol Policies (Rules)
Cummings & Worley, 9e (c) South-Western/Cengage Learning

15. The Parallel Planning Processes
Management
Philosophy
Core Values
Values
Strategic Thinking
Strategic
Commitment
Family
Commitment
Business
Family
Shared Future Vision
Business
Vision
Family
Vision
Formulating Plans
Business
Strategy
Plan
Family
Enterprise
Plan
Cummings & Worley, 9e (c) South-Western/Cengage Learning

16. Critical Issues in Family Business
Entering or leaving the business as a family member
Conflicts and rivalry
Ownership transfer and estate planning
Selecting a new leader
Business growth and family wealth
Cummings & Worley, 9e (c) South-Western/Cengage Learning

17. OD Interventions in Family Business Systems
Entering and contracting
Create a safe emotional environment—trust
Diagnosing the organization
Confidential interviews of stakeholders
Feedback and planning
Build good communication practices
Implementing and evaluating change
Cummings & Worley, 9e (c) South-Western/Cengage Learning