Summarize and reflect upon your past, present and future experiences of change

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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.