Summarize and reflect upon your past, present and future experiences of change
Chapter 1
Organization Development and Reinventing the Organization
Learning Objectives
- Define OD and recognize need for change.
- Describe culture and understand its impact.
- Understand the psychological contract.
- Describe five stages of OD.
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.
Figure 1.1
The Organizational Environment
What Is OD?
- Long-range efforts and programs.
- Aimed at improving organization’s ability to survive.
- OD changes problem-solving and renewal processes.
OD Is:
- Planned.
- Organization wide.
- Managed from top.
- Increases organization effectiveness.
- Planned interventions.
- Uses behavioral science knowledge.
The Characteristics of OD
- Planned change.
- Collaborative approach.
- Improve performance.
- Humanistic values.
- Systems approach.
- Scientific approaches.
Table 1.1
Major Characteristics of the Field of OD
Why OD?
Most cited reasons for beginning change program:
- The level of competition.
- Survival.
- Improved performance.
Primary Goals of
Change Programs
- Change the corporate culture.
- Become more adaptive.
- Increase competitiveness.
Factors Leading to
Emergence of OD
- Need for new organizational forms.
- Focus on cultural change.
- Increase in social awareness.
The Only Constant Is Change
- Change is a moving target.
- Today's managers need new mind-set.
- Flexibility.
- Speed.
- Innovation.
- Constantly changing conditions.
Successful Firms
Share These Traits
- Faster.
- Quality conscious.
- Employee involvement.
- Customer oriented.
- Smaller.
Figure 1.2
Changing Organization of Twenty-First Century
Evolution of OD
- Evolved since the late 1940s.
- NTL Laboratory-Training methods.
- Survey research and feedback.
Who Does OD? (part 1 of 3)
- OD practitioners consist of:
- Specialists.
- Those applying OD in daily work.
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.
Who Does OD? (part 3 of 3)
Activities include:
- Team leaders developing teams.
- Building learning organizations.
- Implementing total quality management.
- Creating boundaryless organizations.
Organization Culture
- Language.
- Dress.
- Patterns of behavior.
- Value system.
- Feelings.
- Attitudes.
- Interactions.
- Group norms.
A system of shared meanings including::
Norms
- Organized and shared ideas.
- What members should do and feel.
- How behavior is regulated.
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.
Socialization Process
- Process that adapts employees to culture.
- New employees become aware of norms.
- Employees encounter culture.
- Individuals understand power, status, rewards, sanctions.
Figure 1.4
The Socialization Process
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.
Figure 1.5
Basic Responses to Socialization
Psychological Contract
- Unwritten agreement between individuals and organization.
- Open-ended so issues may be renegotiated.
A Model for Change
- OD is continuing process.
- Emphasis on viewing organization as total system.
- System consists of interacting and interrelated elements.
Figure 1.6
Organization Development’s Five Stages
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.
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.
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.
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.
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.
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.
- 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.
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.
- “Leave no one behind” shows up in training and salaries.
- Starbucks wants self-motivated team players.
- Major objective is maintaining entrepreneurial spirit.
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.
- 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.
- 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.
- 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.
- Psychological contract.
- Expectations between individual and organization.
- Socialization.
- Process of individual adjusting to organization's culture.
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.
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.
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.