Week 8 Final
Organization Development & Change 11 edition Thomas G. Cummings • Christopher G. Worley
CHAPTER
20
Organization Development for Economic, Ecological, and Social Outcomes
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Learning Objectives
Describe OD interventions that help organizations balance economic, social, and environmental objectives.
Describe sustainable management organizations (SMOs) and how OD can assist in their design and development.
Describe global social change organizations and how to adopt OD practices to develop them.
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Sustainable Management Organizations
Sustainable Management Organizations (SMOs) are designed to achieve sustainable effectiveness. They can perform in three areas—people, planet, and profit—and are agile enough to remain effective over time .
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Strategies that Support Sustainable Effectiveness
Breadth
Multiple countries, markets, technologies or products and services increase the complexity of a firm’s carbon footprint and social impact
Aggressiveness
In general, SMOs are wary of too much aggressiveness too often and have growth objectives that are reasonable and reasoned.
Differentiation
SMOs understand why customers make purchasing decisions and how the organization’s product and service features align with those choices.
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Objectives that Support Sustainable Effectiveness
Create positive economic outcomes while rejecting the goal of maximizing profit or shareholder returns.
Create positive ecological outcomes with awareness of carbon footprints and the planet’s ecology.
Create positive social outcomes that contribute to human and cultural well-being with a clear perspective on social values and issues.
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Components of Organization Identity
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Agile Organization Designs for SMOs (1)
Work processes
Core and exploitive
Creative and exploratory
Innovative
Structures
External focus on external environments
“Boundary Spanning”
Maximum surface area
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Agile Organization Designs for SMOs (2)
Management Processes
Flexible decision-making, processes that leverage information from external sources
Transparency; information is moved throughout the organization wherever it is needed
Decision-making is timely and relevant to keep pace with changing environments
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Agile Organization Designs for SMO’s
Human Resource Systems
Multiple types of employment arrangements, individuality of employees and development of skills
Alignment of financial and non-financial reward systems the support the triple-bottom-line
Rewards motivate and reinforce change
Development and reward systems support the shared leadership philosophy
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SMO Application Stages (1)
Identifying and Redefining Organization Identity
Identify the organization’s values-in-use, brand promise and reputation support agility
Leverage those that support sustained effectiveness
Repurposing the Board of Directors
Membership reflects important stakeholders and may establish committees for sustainable objectives.
Integrate social and ecological goals with economic objectives of traditional shareholder value perspective
Develop effective decision-making skills in order to balance tough choices between sustainability actions and financial performance
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SMO Application Stages (2)
Building Capabilities
Identify existing capabilities and determine which new abilities are necessary
Develop multi-stakeholder decision making
Create a change capability –
Members develop change management skills
Design an organization effectiveness function with competencies in strategic planning, organization design, and change management
“Learning by doing”
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SMO Application Stages (3)
Sequencing the Changes
Work systems redesign
Align future goals with current behaviors
Clarifying the Strategy
Gain key stakeholder support for the new vision, mission and values
Building an agile design
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Global Social Change Organizations
Global Social Change Organizations (GSCOs) are not-for-profit and nongovernmental entities that are created at the grassroots level to help communities and societies address complex and important problems such as unemployment, race relations, homelessness, hunger, disease, water quality, and political instability.
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Characteristics of GSCOs
Commitment to creating environmentally and socially sustainable world futures
Innovative social-organizational structures that enable cooperation across previously polarized or constrained boundaries
Values of empowerment and people-centered forms of action
Linked globally and locally in structure, membership or partnership
Multiorganizational partnerships to form new hybrids of business, government and volunteerism
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GSCOs Application Stages
Building the Local Organization
Values to create vision
Recognizing conflict
Problem of success
Creating Horizontal Linkages
Networks of local organizations with similar views and objective
Developing Vertical Linkages
Upward communication and influence to governmental and policy-level decision-making processes.
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