Transcript Ch 1 Org Dev and Reinventing Org

Chapter 1
Organization Development and
Reinventing the Organization
An Experiential Approach to Organization Development 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 1
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 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 2
Challenges for Organizations
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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 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 3
Figure 1.1
The Organizational Environment
An Experiential Approach to Organization Development 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 4
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 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 5
OD Is:
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Planned.
Organization wide.
Managed from top.
Increases organization effectiveness.
Planned interventions.
Uses behavioral science knowledge.
An Experiential Approach to Organization Development 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 6
The Characteristics of OD
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Planned change.
Collaborative approach.
Improve performance.
Humanistic values.
Systems approach.
Scientific approaches.
An Experiential Approach to Organization Development 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 7
Table 1.1
Major Characteristics of the Field of OD
An Experiential Approach to Organization Development 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 8
Why OD?
Most cited reasons for beginning change
program:
• The level of competition.
• Survival.
• Improved performance.
An Experiential Approach to Organization Development 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 9
Primary Goals of
Change Programs
• Change the corporate culture.
• Become more adaptive.
• Increase competitiveness.
An Experiential Approach to Organization Development 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 10
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 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 11
The Only Constant Is Change
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Change is a moving target.
Today's managers need new mind-set.
Flexibility.
Speed.
Innovation.
Constantly changing conditions.
An Experiential Approach to Organization Development 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 12
Successful Firms
Share These Traits
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Faster.
Quality conscious.
Employee involvement.
Customer oriented.
Smaller.
An Experiential Approach to Organization Development 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 13
Figure 1.2
Changing Organization of Twenty-First Century
An Experiential Approach to Organization Development 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
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Evolution of OD
• Evolved since the late 1940s.
• NTL Laboratory-Training methods.
• Survey research and feedback.
An Experiential Approach to Organization Development 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 15
Who Does OD? (part 1 of 3)
• OD practitioners consist of:
– Specialists.
– Those applying OD in daily work.
An Experiential Approach to Organization Development 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 16
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 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
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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 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 18
Organization Culture
A system of shared meanings including::
• Language.
• Dress.
• Patterns of
behavior.
• Value system.
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Feelings.
Attitudes.
Interactions.
Group norms.
An Experiential Approach to Organization Development 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
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Norms
• Organized and shared ideas.
• What members should do and feel.
• How behavior is regulated.
An Experiential Approach to Organization Development 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
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Types of Norms
• Pivotal 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 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 21
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 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 22
Figure 1.4
The Socialization Process
An Experiential Approach to Organization Development 8 th edition
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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 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 24
Figure 1.5
Basic Responses to Socialization
An Experiential Approach to Organization Development 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 25
Psychological Contract
• Unwritten agreement between
individuals and organization.
• Open-ended so issues may be
renegotiated.
An Experiential Approach to Organization Development 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 26
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 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 27
Figure 1.6
Organization Development’s Five Stages
An Experiential Approach to Organization Development 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
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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 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
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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 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
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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 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
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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 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 32
Five-stage Model for OD
Process (part 5 of 5)
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Stage Five
Self-Renewal, Monitor, and Stabilize.
As program stabilizes, need for
practitioner decreases.
Monitor results.
Stabilize change.
Gradual disengagement of practitioner.
An Experiential Approach to Organization Development 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 33
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 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
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• 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 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 35
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 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
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• “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 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
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Key Words and Concepts
• Action research model.
– 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 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 38
• 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 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 39
• 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 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 40
• OD practitioner.
– 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 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 41
• Psychological contract.
– Expectations between individual and
organization.
• Socialization.
– Process of individual adjusting to
organization's culture.
An Experiential Approach to Organization Development 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 42
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 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 43
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 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 44
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 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 45
An Experiential Approach to Organization Development 8 th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1
Slide 46