An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 1
Chapter 1
Organization Development and Reinventing the Organization
An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 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 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 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 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 4
Figure 1.1The Organizational Environment
An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 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 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 6
OD Is:
• Planned.
• Organization wide.
• Managed from top.
• Increases organization effectiveness.
• Planned interventions.
• Uses behavioral science knowledge.
An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 7
The Characteristics of OD
• Planned change.
• Collaborative approach.
• Improve performance.
• Humanistic values.
• Systems approach.
• Scientific approaches.
An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 8
Table 1.1Major Characteristics of the Field of OD
An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 9
Why OD?
Most cited reasons for beginning change program:
• The level of competition.
• Survival.
• Improved performance.
An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 10
Primary Goals of Change Programs
• Change the corporate culture.
• Become more adaptive.
• Increase competitiveness.
An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 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 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 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 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 13
Successful FirmsShare These Traits
• Faster.
• Quality conscious.
• Employee involvement.
• Customer oriented.
• Smaller.
An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 14
Figure 1.2Changing Organization of Twenty-First Century
An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 15
Evolution of OD
• Evolved since the late 1940s.
• NTL Laboratory-Training methods.
• Survey research and feedback.
An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 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 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 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 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 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 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 19
Organization Culture
• Language.
• Dress.
• Patterns of behavior.
• Value system.
• Feelings.
• Attitudes.
• Interactions.
• Group norms.
A system of shared meanings including::
An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 20
Norms
• Organized and shared ideas.
• What members should do and feel.
• How behavior is regulated.
An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 21
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 editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 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 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 23
Figure 1.4The Socialization Process
An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 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 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 25
Figure 1.5Basic Responses to Socialization
An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 26
Psychological Contract
• Unwritten agreement between individuals and organization.
• Open-ended so issues may be renegotiated.
An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 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 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 28
Figure 1.6Organization Development’s Five Stages
An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 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 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 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 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 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 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 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 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 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.
An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 34
OD ApplicationGE’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 editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 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 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 36
OD ApplicationLeave 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 editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 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 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 38
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 editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 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 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 40
• 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 editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 41
• 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 editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 42
• Psychological contract.– Expectations between individual and
organization.
• Socialization.– Process of individual adjusting to
organization's culture.
An Experiential Approach to Organization Development 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 43
OD Skills Simulation 1.1Auditioning 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 editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 44
OD Skills Simulation 1.2The 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 editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 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 8 th editionCopyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 1Slide 46