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Organizational Development

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An Experiential Approach to Organization Development 7 th edition Chapter 1Slide 1

Chapter 1Chapter 1

Organization Development and Reinventing the

Organization

An Experiential Approach to Organization Development 7 th edition

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 7 th edition

Chapter 1Slide 3

The Workout: Organization Changes at GE (part 1 of 2)

GE has training center for managers.

Participants said GE was slow to make changes.

Workout is program that came from sessions.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 4

The Workout: Organization Changes at GE (part 2 of 2)

In workout employees take the leadership in bringing about changes.

GE continues to use workout so it can reinvent itself.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 5

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 7 th edition

Chapter 1Slide 6

Figure 1.1The Organizational Environment

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 7

What Is OD?

Long-range efforts and programs aimed at improving an organization’s ability to survive by changing problem-solving and renewal processes.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 8

OD Is: Planned. Organization wide. Managed from top. Increases organization effectiveness. Planned interventions. Uses behavioral science knowledge.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 9

The Characteristics of OD

Planned change.

Collaborative approach.

Improve performance.

Humanistic values.

Systems approach.

Scientific approaches.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 10

Table 1.1Major Characteristics of the Field of OD

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 11

Our Changing World: Germany in Slow-mo (part 1 of 2)

Germany entering 2nd decade of stagnation.

A model of world in ‘70s and ‘80s.

Reputation as Europe’s unchanging core.

History of blaming others for problems.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 12

Our Changing World: Germany in Slow-mo (part 2 of 2)

Some looking inward for causes.

Problem traced to job-protection law of ‘50s.

Unions block proposals to reform labor laws.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 13

Why OD?

Most cited reasons for beginning change program:

The level of competition. Survival. Improved performance.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 14

Primary Goals of Change Programs

Increase productivity.

Increase responsiveness.

Improve competitive position.

Increase employee involvement.

Increase employee morale.

Develop new managerial skills.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 15

Table 1.2Major Goals of Large-Scale Change Programs

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 16

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 7 th edition

Chapter 1Slide 17

The Only Constant Is Change

Today's managers need new mind-set.

Flexibility.

Speed.

Innovation.

Constantly changing conditions.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 18

Successful FirmsShare These Traits

Faster. Quality conscious. Employee involvement. Customer oriented. Smaller.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 19

Figure 1.2Changing Organization of Twenty-First Century

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 20

OD in Practice:Trilogy Software (part 1 of 2)

Trilogy Software example of shifting organizational structures.

Workers are shareholders, managers, and partners.

Biggest worry is not facing down other businesses.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 21

OD in Practice:Trilogy Software (part 2 of 2)

Depends on talented people.

Economy fostering new kinds of practices.

This case shows major element in planned change is planning for organizational culture.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 22

Evolution of OD

Evolved since the late 1940s.

NTL Laboratory-Training methods.

Survey research and feedback.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 23

Who Does OD? (part 1 of 3)

OD practitioners consist of specialists and those applying OD in daily work:

Professionals and specialists trained in OD. Managers and leaders applying OD.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 24

Who Does OD? (part 2 of 3)

OD specialists:

• Internal practitioners – from within organization.

• External practitioners – from outside organization.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 25

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 7 th edition

Chapter 1Slide 26

Organization Culture

Dress. Patterns of behavior. Language. Value system.

Feelings. Attitudes. Interactions. Group norms.

A system of shared meanings including:

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 27

Norms (part 1 of 2)

Organized and shared ideas of what members should do and feel.

How behavior is regulated.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 28

Norms (part 2 of 2)

Pivotal norms - essential to accomplishing organization’s objectives.

Peripheral norms - support and contribute to pivotal norms but not essential to organization’s objectives.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 29

Socialization Process

Process that adapts employees to culture.

New employees become aware of norms.

Employees encounter culture.

Individuals understand power, status, rewards, and sanctions.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 30

Figure 1.3The Socialization Process

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 31

Adjustment to Cultural Norms and Socialization Occurs in 3

Ways1. Rebellion - rejection of all values and norms.

2. Conformity - acceptance of all values and norms.

3. Creative individualism - acceptance only of pivotal values; rejection of others.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 32

Figure 1.4Basic Responses to Socialization

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 33

Psychological Contract

Unwritten agreement between individuals and organization.

Open-ended so issues may be renegotiated.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 34

A Model for Change

OD is continuing process with emphasis on viewing organization as total system of interacting and interrelated elements.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 35

Figure 1.5Organization Development’s Five Stages

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 36

Five-stage Model for OD Process (part 1 of 5)

Stage one: Anticipating need for change.

• Someone recognizes need for change.

• There must be felt need for change.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 37

Five-stage Model for OD Process (part 2 of 5)

Stage two: Developing practitioner-client relationship.• OD practitioner enters system.• Good first impressions and match

important.• Practitioner establishes trust, open

communication, shared responsibility.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 38

Five-stage Model for OD Process (part 3 of 5)

Stage three: The diagnostic phase.

• Practitioner and client gather data about system.

• Objective is to understand client’s problems, identify forces causing situation, and select change strategies.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 39

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 7 th edition

Chapter 1Slide 40

Five-stage Model for OD Process (part 5 of 5)

Stage five: Self-renewal, monitor, and stabilize.

• As OD program stabilizes, need for practitioner decreases.

• Monitor results.

• Stabilize change.

• Gradual disengagement of OD practitioner.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 41

Key Words and Concepts

Action research model - collecting information, feeding back to client, developing and implementing action programs.

Change leader - person responsible for change.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 42

Client - person or organization that is being assisted.

Creative individualism - questioning of peripheral norms, accepting of pivotal norms.

External practitioner - person from outside organization who serves as resource for change.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 43

Internal practitioner - internal resource for change.

Norms - organized and shared ideas regarding what members should do and feel, how behavior should be regulated, and what sanctions should be applied.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 44

Organization culture - system of shared meanings, including language, dress, values, norms of organization.

Organization development - planned strategy to bring about change.

OD practitioner - people using, advocating, and assisting others to implement OD.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 45

OD specialist - professional who has specialized and trained in OD and related areas.

Peripheral norms - support and contribute to pivotal norms but not essential to organization's objectives.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 46

Pivotal norms - essential to organization's objectives.

Psychological contract - expectations between individual and organization.

Socialization - process of individual adjusting to organization's culture.

An Experiential Approach to Organization Development 7 th edition

Chapter 1Slide 47

Preparations for Next Chapter

Read Chapter 2. Read instructions for Simulation 2.1. Read and prepare analysis for Case: The

NoGo Railroad.

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