Transcript Ch 14 High-Performing Sys and Learning Org

Chapter 14
High-Performing
Systems and the
Learning Organization
An Experiential Approach to Organization Development 7th edition
Chapter 14
Slide 1
Learning Objectives

Recognize how learning organization
approaches are used in OD change programs.

Identify several basic OD intervention
techniques.

Experience and practice system approaches.
An Experiential Approach to Organization Development 7th edition
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Slide 2
Cisco Tames Its Cowboy Culture
(part 1 of 3)
CEO Chambers initiated massive change at
Cisco.
Revolutionary change was company’s only
chance.
Cisco examined every part including operations,
priorities, and culture.
An Experiential Approach to Organization Development 7th edition
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Slide 3
Cisco Tames Its Cowboy Culture
(part 2 of 3)
Before changes Cisco was described as wild
west cowboy culture.
Executives encouraged to compete with one
another.
Ideas were pursued with little discipline or
accountability.
An Experiential Approach to Organization Development 7th edition
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Cisco Tames Its Cowboy Culture
(part 3 of 3)
Market changed where customer expected
Cisco to be integrated company.
Cisco made changes once and deep.
Chambers articulated changes, explained the
vision, and explained why changes
necessary.
An Experiential Approach to Organization Development 7th edition
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System-Wide Interventions
Certain OD interventions aimed at change
within total system.
OD is systems approach to group, functional,
and interpersonal relations.
An Experiential Approach to Organization Development 7th edition
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System Interventions Examine:

Organization design.

Organization flow patterns.

Interactions of individuals and groups.
A system may be organization or subsystem
within total organization.
An Experiential Approach to Organization Development 7th edition
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Survey Research and Feedback
Employee attitude surveys serve two important
functions:
•
Improvement tool.
•
Communication tool.
An Experiential Approach to Organization Development 7th edition
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Steps in Survey Feedback
Step 1 - Top management plans survey.
Step 2 - Outside staff gives questionnaire.
Step 3 - Outside staff summarizes data and
gives feedback to organization.
Step 4 - Work group diagnoses problems and
develops action programs.
An Experiential Approach to Organization Development 7th edition
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Results of Survey Research
and Feedback
Indicate positive changes in employee attitudes
and perceptions.
Greater involvement of all members produces
greater change.
Feedback given with other interventions, results
in more substantial change.
An Experiential Approach to Organization Development 7th edition
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Slide 10
Learning Organization (part 1 of 2)
System-wide change program.
Emphasizes reduction of organizational layers
and involvement of all employees.
An Experiential Approach to Organization Development 7th edition
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Learning Organization (part 2 of 2)
Continuous self-directed learning that leads to
positive change in individual, team, and
organization.
A learning organization has developed
continuing capacity to adapt and change.
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Approach to
Learning Organization
Brings together key members in collaborative
process to discover problems.
Then develops a model of new system.
Continuous testing of experience and
transformation into knowledge accessible to
whole organization.
An Experiential Approach to Organization Development 7th edition
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Our Changing World: Cement
Not Low-tech at Lafarge?
(part 1 of 3)
Lafarge world’s biggest cement producer.
Culture traced to its origins in 1833.
The founders were committed to a form of
humanism that still prevails in company
today.
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Our Changing World
(part 2 of 3)
Participative management philosophy includes:

Key for managers to develop their people.

Employees share and seek experiences of
others.

Dealing with conflict integral to teamwork.

Teamwork creates environment of trust.
An Experiential Approach to Organization Development 7th edition
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Our Changing World
(part 3 of 3)
Important element is training.
Managers required to monitor development of
employees.
Lafarge practices intensive communication so
that its worldwide businesses understand
operations.
An Experiential Approach to Organization Development 7th edition
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Core Values of Learning
Organizations (part 1 of 2)
Value different kinds of knowledge and learning.
Encourage communication between people with
different perspectives.
Develop creative thinking.
Remain nonjudgmental of others and their
ideas.
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Core Values of Learning
Organizations (part 2 of 2)
Break down traditional barriers in organization.
Develop leadership throughout organization.
Reduce distinctions between organization
members.
Every member of organization has untapped
human potential.
An Experiential Approach to Organization Development 7th edition
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Characteristics of
Learning Organizations
Constant readiness.
Continuous planning.
Improvised implementation.
Action learning.
An Experiential Approach to Organization Development 7th edition
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Reengineering: a
Radical Redesign
Radical redesign of business processes to
obtain drastic improvements in performance.
Seeks to make all processes more efficient to
gain quantum leap in performance.
Emphasizes products, customer satisfaction,
and improvement in processes.
An Experiential Approach to Organization Development 7th edition
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Steps in Reengineering Process:
1.
Identify key business process.
2.
Identify performance measures.
3.
Reengineer the process, organize work
around process, not functions.
4.
Implement redesign process and continuing
reevaluation.
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System 4 Management
Likert developed System 4 management model
based on his research of organizations.
It describes organizations on a continuum:
•
Bureaucratic organizations (ineffective) at
one end.
•
Participative (effective) at the other.
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The Four Management Systems
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System 1 - Exploitive/Authoritative
(autocratic, top-down).
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System 2 - Exploitive/Authoritative (topdown/less coercive-autocratic).
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System 3 – Consultative.

System 4 – Participative.
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Implications to OD
System 1 organizations tend to be least
effective, system 4 tend to be most effective.
OD practitioner tries to move from system 1
organization to system 4 organization.
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Figure 14.1
Profile of Organization Characteristics
An Experiential Approach to Organization Development 7th edition
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Common Elements in System 4
Organizations
Action rather than further analysis.
Decisions involving subordinates, not superiors.
Individual accountability, not rigid policies.
Specific recognition of team and individual
accomplishments, not blanket expressions of
thanks.
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High-Performing Systems (HPS)
HPS calls for removal of excessive layers of
organization.
HPS creates climate of participation and
communication across functional barriers.
HPS is term originated by Peter Vaill.
An Experiential Approach to Organization Development 7th edition
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Eight Criteria Used to Examine HPS
(part 1 of 2)
1.
Perform excellently against external
standard.
2.
Perform excellently against potential.
3.
Perform excellently to some earlier point.
4.
Perform with significantly fewer resources
than assumed are needed.
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Eight Criteria Used to Examine HPS
(part 2 of 2)
5.
Doing substantially better than other
systems.
6.
Perceived as source of ideas for others.
7.
Perceived to fulfill high level for culture
within which it exists.
8.
Only organization that is able to do what it
does.
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Characteristics of HPS (part 1 of 2)
An HPS knows why it exists.
Commitment to purposes always high.
Teamwork focused on task.
Leadership is strong and clear.
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Characteristics of HPS (part 2 of 2)
An HPS is fertile source of new methods.
Strong consciousness that “we are different.”
Other subsystems often see HPS as problem
because HPS produces its own standards.
HPS is cohesive unit.
An Experiential Approach to Organization Development 7th edition
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Grid OD Program
Grid OD is systematic approach to achieve
corporate excellence by changing basic
culture of system.
Starts with focus on managerial styles.
Moves through phases involving the work team
and culture of organization.
An Experiential Approach to Organization Development 7th edition
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Six Grid Phases (part 1 of 3)
Phase 1: Grid seminars. Someone in
management position attends seminar.
Phase 2: Teamwork development. Begins with
top manager and continues through entire
organization.
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Six Grid Phases (part 2 of 3)
Phase 3: Intergroup development. Sessions
attended by key members of 2 segments
where barriers exist.
Phase 4: Development of ideal strategic model.
Provides skills to move to systematic
development.
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Six Grid Phases (part 3 of 3)
Phase 5: Implement ideal strategic model.
Organization divided into planning teams and
model is implemented.
Phase 6: Systematic examination of progress
toward change goals.
An Experiential Approach to Organization Development 7th edition
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Third Wave Organization
Term originated by business futurist Alvin
Toffler.
Describes organizations that are evolving in
information age to meet changing times.
An Experiential Approach to Organization Development 7th edition
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Characteristics of Third-Wave
Organization
Flexibility - structure has no permanence.
Creativity - people motivated by commitment
to vision or cause.
Innovation - support for risk taking and
innovation.
An Experiential Approach to Organization Development 7th edition
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OD in Practice: Spooks, CIA,
and Change (part 1 of 3)
CIA budgets slashed by Congress.
Morale plummeted.
Little or no articulated mission.
George Tenet (now retired) took over as
director in 1996.
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OD in Practice (part 2 of 3)
Tenet’s first priority was to rebuild spy shop.
June 2001 CIA began significant reorganization.
Transformation included setting up new
departments whose heads sat in on the
executive board meetings.
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OD in Practice (part 3 of 3)
Communication flows were radically changed.
For some organizations a crisis can be only way
significant change can occur.
Tenet said it would take 5 years to produce
clandestine service U.S. needs.
An Experiential Approach to Organization Development 7th edition
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Key Words and Concepts

Grid OD - defines problem areas for OD by
going through phases designed to pursue
systematic change.

Grid phases - six phases that a typical Grid
OD program goes through.
An Experiential Approach to Organization Development 7th edition
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
High-performing system (HPS) - removal of
excessive layers of structure within the
organization. Encourages participation across
barriers.

Learning organization - continuing capacity to
adapt and change.
An Experiential Approach to Organization Development 7th edition
Chapter 14
Slide 42

Ideal strategic model - Phase 4 of Grid OD
program. Model developed to achieve
excellence.

Reengineering - radical redesigning of
processes to achieve drastic improvements in
performance.
An Experiential Approach to Organization Development 7th edition
Chapter 14
Slide 43

Survey research and feedback - collect data
and give feedback to allow organizations to
diagnose problems.

System 4 management - a continuum from
system 1 to system 4, with 4 being ideal that
organizations attempt to achieve.
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
System-level organization - a structural
design framework for viewing organization.

Third-wave organization - firms that use
flexibility, creativity, and innovation to be
successful in information age.
An Experiential Approach to Organization Development 7th edition
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Slide 45
Preparations for Next Chapter

Read Chapter 15.

Complete Step 1 of OD Skills Simulation
15.1.

Read and analyze Case: The Space
Electronics Corporation.
An Experiential Approach to Organization Development 7th edition
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Slide 46