Transcript Ch 8 OD Intervention Strategies

Chapter 8
OD Intervention
Strategies
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 1
Learning Objectives

Identify and understand range of major OD
intervention techniques and how they can be
applied.

Identify ways interpersonal, team, and
intergroup techniques fit into OD program.

Understand the change strategies.
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 2
Leading Change at P&G
(part 1 of 3)
P&G CEO Lafley makes changes that began
with previous CEO in the 1990s.
Significant changes made on structural lines.
Previous CEO, Jager, made changes using
combative style.
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 3
Leading Change at P&G
(part 2 of 3)
Corporate headquarters undergoing change.
Executives have open offices.
Division presidents’ offices located with their
teams.
Changes made without alienating employees.
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 4
Leading Change at P&G
(part 3 of 3)
Why did one CEO succeed in making changes
while another failed?
•
Jager gruff and Lafley soothing.
•
Jager bullied and Lafley persuades.
Lafley says of change: “…we are in the
business of leading change.”
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 5
Organizational Change
Starting point for setting change program is
definition of total change strategy.
OD strategy is a plan for integrating different
activities to accomplish objectives.
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 6
Three Basic Approaches to
Organization Change
1.
Structural
2.
Technical
3.
Behavioral
Developing strategy includes planning activities
to resolve difficulties and build on strengths.
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 7
Structural Approach to Change
Changes that relate elements of organization to
one another.
Includes removing or adding layers to hierarchy.
Downsizing associated with restructuring.
Changes can involve decentralization and
centralization.
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 8
Technical Approach to Change
Changes in machinery, methods, automation,
and job design.
Changes help companies become more
productive.
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 9
Behavioral Approach to Change
Emphasizes better utilization of human
resources by improving:
•
Morale.
•
Motivation.
•
Commitment of members.
OD traditionally associated with behavioral
strategies.
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 10
Changes Require All Strategies
Structural, technological, and behavioral
strategies not OD change strategies per se.
Determining feature of an OD strategy is
process used to arrive at strategy.
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 11
Our Changing World: Japan Tries
to Restructure (part 1 of 2)
In 1980s Japanese companies model to world.
Recently, Japanese companies failed to
respond to changing world.
Nissan first company to close major factory in
Japanese auto-industry.
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 12
Our Changing World: Japan Tries
to Restructure (part 2 of 2)
Nissan failing when Renault took control.
Ghosn brought in to turn company around.
Shut down 5 plants, reduced workforce by
23,000, shifted production to U.S.
Most experts say do not count Japan out.
A viable Japan may emerge.
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 13
Integration of Change Strategies
(part 1 of 2)
OD deals with change from integrated
standpoint that considers:
Structure
Technology
Behavior
Interdependence of subelements (departments)
needs to be considered.
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 14
Figure 8.1
Integrated Approach to Change
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 15
Integration of Change Strategies
(part 2 of 2)
Change strategies need to take account of overt
and covert elements.
Second-order consequences consider change
in one area that influences others.
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 16
Figure 8.2
“Organization Iceberg” Approach to OD
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 17
Stream Analysis
Useful in planning.
Helps organization plan interventions.
Provides graphical view of changes.
Allows progress to be plotted.
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 18
Figure 8.3
Stream Analysis Chart
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 19
Selecting an OD Intervention
Practitioner and client consider:

Potential results of technique.

Potential implementation of technique
including costs versus benefit.

Potential acceptance of technique.
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 20
OD in Practice: Is It a Kindler,
Gentler Microsoft? (part 1 of 3)
Changes at Microsoft initiated at top.
Gates stepped down as CEO and appointed
Ballmer CEO and president.
Both wanted to reinvent Microsoft.
Microsoft restructured to be responsive to
customers.
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 21
OD in Practice
(part 2 of 3)
Executives given power to run units with less
supervision.
Ballmer encouraging everyone to rethink the
way they do their jobs.
Ballmer wants people to be respectful to others.
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 22
OD in Practice
(part 3 of 3)
He wants managers to work collaboratively.
Collaboration may produce complacency and
stifle innovation.
Ballmer has history of humiliating executives
that may discourage real change.
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 23
Overview of Major OD
Intervention Techniques
Intervention techniques focus on 4 categories:
1.
Individual or interpersonal level.
2.
Team or group level.
3.
Intergroup level.
4.
Total organizational system level.
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 24
Table 8.1
OD Interventions: An Overview (part 1 of 2)
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 25
Table 8.1
OD Interventions: An Overview (part 2 of 2)
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 26
Key Words and Concepts

Behavioral strategies - places emphasis on
human resources.

OD intervention - actions designed to improve
the health of the client system.

OD strategy - a plan for change using
structural, technical, and behavioral methods.
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 27

Parkinson’s Laws - summarizes the problems
of inefficient practices in organizations.

Second-order consequences - indirect
consequences that result from change.

Stream analysis - method useful in planning
that plots interventions over period of time.
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 28

Structural strategies - alters framework that
relates parts of organization to one another.

Technological strategies - changes in
machinery, methods, and job design.

Virtual meetings - meetings that occur
electronically over telecommunications lines
and Internet.
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 29
Preparations for Next Chapter

Read Chapter 9.

Complete Step 1 of OD Skills Simulation 9.1.
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Simulation 9.3, complete Steps 1 and 2.

Read and analyze Case: The Sundale Club.
An Experiential Approach to Organization Development 7th edition
Chapter 8
Slide 30