1. Organization Development and Reinventing the Organization
Chapter 1
Organization Development and Reinventing the Organization
An Experiential Approach to Organization Development 8th edition
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2. 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 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

3. 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 8th edition
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4. Figure 1.1 The Organizational Environment
An Experiential Approach to Organization Development 8th edition
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5. What Is OD? Long-range efforts and programs.
Aimed at improving organization’s ability to survive.
OD changes problem-solving and renewal processes.
An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

6. OD Is: Planned. Organization wide. Managed from top.
Increases organization effectiveness.
Planned interventions.
Uses behavioral science knowledge.
An Experiential Approach to Organization Development 8th edition
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7. The Characteristics of OD
Planned change.
Collaborative approach.
Improve performance.
Humanistic values.
Systems approach.
Scientific approaches.
An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

8. Table 1.1 Major Characteristics of the Field of OD
An Experiential Approach to Organization Development 8th edition
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9. Why OD? Most cited reasons for beginning change program:
The level of competition.
Survival.
Improved performance.
An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

10. Primary Goals of Change Programs
Change the corporate culture.
Become more adaptive.
Increase competitiveness.
An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

11. 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 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

12. The Only Constant Is Change
Change is a moving target.
Today's managers need new mind-set.
Flexibility.
Speed.
Innovation.
Constantly changing conditions.
An Experiential Approach to Organization Development 8th edition
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13. Successful Firms Share These Traits
Faster.
Quality conscious.
Employee involvement.
Customer oriented.
Smaller.
An Experiential Approach to Organization Development 8th edition
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14. Figure 1.2 Changing Organization of Twenty-First Century
An Experiential Approach to Organization Development 8th edition
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15. Evolution of OD Evolved since the late 1940s.
NTL Laboratory-Training methods.
Survey research and feedback.
An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

16. Who Does OD? (part 1 of 3) OD practitioners consist of: Specialists.
Those applying OD in daily work.
An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

17. Who Does OD? (part 2 of 3) OD specialists are:
Internal practitioners – from within the organization.
External practitioners – from outside the organization.
Managers apply OD principles and concepts.
An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

18. 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 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

19. Organization Culture A system of shared meanings including:: Language.
Dress.
Patterns of behavior.
Value system.
Feelings.
Attitudes.
Interactions.
Group norms.
An Experiential Approach to Organization Development 8th edition
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20. Norms Organized and shared ideas. What members should do and feel.
How behavior is regulated.
An Experiential Approach to Organization Development 8th edition
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21. Types of Norms Pivotal norms. Peripheral norms.
Essential to accomplishing organization’s objectives.
Peripheral norms.
Support and contribute to pivotal norms.
Not essential to organization’s objectives.
An Experiential Approach to Organization Development 8th edition
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22. Socialization Process
Process that adapts employees to culture.
New employees become aware of norms.
Employees encounter culture.
Individuals understand power, status, rewards, sanctions.
An Experiential Approach to Organization Development 8th edition
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23. Figure 1.4 The Socialization Process
An Experiential Approach to Organization Development 8th edition
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24. Adjustment to Cultural Norms
Rebellion.
Rejection of all values and norms.
Conformity.
Acceptance of all values and norms.
Creative individualism.
Acceptance of pivotal values.
Rejection of others.
An Experiential Approach to Organization Development 8th edition
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25. Figure 1.5 Basic Responses to Socialization
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26. Psychological Contract
Unwritten agreement between individuals and organization.
Open-ended so issues may be renegotiated.
An Experiential Approach to Organization Development 8th edition
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27. A Model for Change OD is continuing process.
Emphasis on viewing organization as total system.
System consists of interacting and interrelated elements.
An Experiential Approach to Organization Development 8th edition
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28. Figure 1.6 Organization Development’s Five Stages
An Experiential Approach to Organization Development 8th edition
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29. Five-stage Model for OD Process (part 1 of 5)
Stage One
Anticipating Need for Change.
Someone recognizes need for change.
Must be felt need for change.
An Experiential Approach to Organization Development 8th edition
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30. Five-stage Model for OD Process (part 2 of 5)
Stage Two
Develop Practitioner-Client Relationship.
Practitioner enters system.
Good first impressions important.
Practitioner establishes trust and open communication.
An Experiential Approach to Organization Development 8th edition
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31. Five-stage Model for OD Process (part 3 of 5)
Stage Three
The Diagnostic Phase.
Practitioner and client gather data.
Objective to:
Understand client’s problems.
Identify causes.
Select change strategies.
An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

32. 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 8th edition
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33. Five-stage Model for OD Process (part 5 of 5)
Stage Five
Self-Renewal, Monitor, and Stabilize.
As program stabilizes, need for practitioner decreases.
Monitor results.
Stabilize change.
Gradual disengagement of practitioner.
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34. OD Application GE’s Epicenter of Change
Leadership Center is tool to spread change.
OD, leadership, and innovation are applied to real-world.
Participants include entry-level to highest positions.
Customers invited to help solve mutual problems.
An Experiential Approach to Organization Development 8th edition
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35. Subjects include leadership and management skills.
Executive courses are in leadership and strategy.
Participants are 50% non-U.S.
New centers have opened outside of U.S.
GE believes strong leaders are imperative.
An Experiential Approach to Organization Development 8th edition
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36. OD Application Leave No One Behind At Starbucks
Starbucks’ unique culture instrumental in success.
Challenge is maintaining “formula” that made them successful.
CEO communicates strong vision to employees.
An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

37. “Leave no one behind” shows up in training and salaries.
Starbucks wants self-motivated team players.
Major objective is maintaining entrepreneurial spirit.
An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

38. Key Words and Concepts Action research model. Change agent.
Collecting and feeding back information.
Implementing action programs.
Change agent.
Person attempting to bring change.
Client System.
Person or organization that is being assisted.
An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

39. Creative individualism.
Questioning of peripheral norms.
Accepting of pivotal norms.
External practitioner.
Person from outside who is resource for change.
Internal practitioner.
Internal resource for change.
Could be manager.
An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

40. Organization development (OD).
Norms.
Organized and shared ideas.
What members should do and feel.
How behavior should be regulated.
Organization culture.
System of shared meanings.
Includes language, dress, values, norms.
Organization development (OD).
Planned strategy to bring about change.
An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

41. OD practitioner. OD specialist. Peripheral norms. Pivotal norms.
People using and assisting others to implement OD.
OD specialist.
Professional specialized and trained in OD.
Peripheral norms.
Support and contribute to pivotal norms.
Not essential to organization's objectives.
Pivotal norms.
Essential to organization's objectives.
An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

42. Psychological contract.
Expectations between individual and organization.
Socialization.
Process of individual adjusting to organization's culture.
An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

43. OD Skills Simulation 1.1 Auditioning For The Saturday Night Live Guest Host Spot
Purpose.
Share expectations between students and instructor.
Instructor can find out what students expect.
Students can learn what instructor expects.
An Experiential Approach to Organization Development 8th edition
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44. OD Skills Simulation 1.2 The Psychological Contract
Purpose.
Goal is to build trust within class.
Share information about yourself.
Explore values and norms.
Experience interviewing another person.
An Experiential Approach to Organization Development 8th edition
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45. Preparations for Next Chapter
Read Chapter 2.
Read instructions for Simulation 2.1.
Complete Part A, Steps 1 and 2.
Read “Instructions for Developing OD Practitioner Roles and Skills.”
Read and prepare Case: The NoGo Railroad.
An Experiential Approach to Organization Development 8th edition
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46. An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall