BSCI 633 Organization Development and Change – Class 2 • • • • Potential Conflicts with OD o Conflict with profit making o Conflict with managerial prerogatives Quote o “Organizations are like kids, it’s all about development. If you give them good, strong values, a clear vision of the future, and the view that everything is possible, they will grow up to be like that and … vice versa.”(Henrietta Zalkind, Down East Partnership for Children) Underlying Values o Concept of people o Concern of science o Democratic principles o The helping relationship Organizational Level Diagnosis Transformation Outputs Strategy Performance Design Factors Productivity Culture Satisfacation Inputs General Environment Industry Struture • After Diagnosis o Feeding back the information o Choosing interventions • • • • • • • 2 o Managing change o Institutionalizing change Survey Feedback o Small meeting to feedback survey results o Meeting used to formulate change o Managers conduct meetings to indicate commitment Team Building o Improved group processes o Communication o Goal clarification o Role clarification o Task orientation Re-Engineering o Job redesign o Teamwork o Work performed by most appropriate person o Advanced information technologies used Measurement Problems o Difficult to isolate case of outcomes science OD efforts often involve multiple changes o May be the result of Hawthorne effects o Change may be due to maturation or passage of time and not intervention OD Effectiveness o More impact on organizational than individual outcomes o Works better for white collars than blue collars o Works better if multiple techniques are used Ethical Issues o The Role of the OD practitioner o Who’s values The Workout: Organization Changes of GE (part 1 of 2) o GE has training center for managers o Participants said GE was slow to make changes o Workout is program that came from sessions • Group Level Diagnosis Outputs Inputs Organization Design Factors Transformation Culture Group Design Factors Team Effectiveness Productivity, Satisfaction Strategy • • • The Workout: Organization Changes of GE (part 2 of 2) o In workout employees take the leadership in bringing about changes o GE continues to use workout so it can reinvent itself Challenges for Organizations o Change avalanching down on us o Tomorrow’s world different from today’s o Organizations need to adapt to change o Organizations in continuous interaction with external forces Figure 1.1 The organizational Environment Government Customers Stockholders Organization Suppliers Unions Competitors 3 • • • • 4 What is OD? Long-range efforts and programs aimed at improving an organization’s ability to survive by changing problem-solving and renewal proccesses OD Is: o Planned o Organization wide o Managed from top o Increase organization effectiveness o Planned interventions o Uses behavioral science knowledge The Characteristics of OD o Planed change o Collaborative approach o Improve performance o Humanistic values o Systems approach o Scientific approaches Table 1.1 Major Characteristics of the Field of OD Characteristics Focal Areas 1. Change Change is planned managers to achieve goals 2. Collaborative Approach Involves collaborative approach and involvement 3. Performance Orientation Emphasis on ways to improve and enhance performance 4. Humanistic Orientation Emphasis upon increased opportunity and use of human potential 5. Systems Approach Relationship among elements and excellence 6. Scientific Method Scientific approaches supplement practical experience • Individual Level Diagnosis Inputs Group Design Factors Personal Characterist- • • • • 5 Outputs Transformation Job Design Factors Individual Effectiveness Productivity, Satisfaction Why OD? Most cited reasons for beginning change program: o The level of competition o Survival o Improved performance Primary Goals of Change Programs o Increase productivity o Increase responsiveness o Improve competitive position o Increase employee involvement o Increase employee morale o Develop new managerial skills Table 1.2 Major Goals of Large-Scale Change Programs Goals Percent of Organization 1. Increase productivity 20 2. Increase responsiveness to clients 19 3. Improve competitive positioning 19 (increase productivity/decrease costs) 4. Increase employee involvement and 19 participation 5. Increase employee morale 18 6. Develop new managerial skills and 14 strategies Factors Leading to Emergence of OD o Need for new organizational forms • • o Focus on culture change o Increase in social awareness The Only Constant of Change Figure1.2 Changing Organization of Twenty-First Century Competitive Uncertainty New Competitiors *Regulations *Prices *Suppliers Two Organization of the Twenty-First Century *Domestic *Multinational *Faster *Quality Conscius *Employee Involvement Technology *New Products *New Technologies • • • • • 6 *Customer Oriented *Smallr Changing Consumers *Lifestyle *Trends Who Does OD? (part 1 of 3) OD practitioners consist of specialists and those applying OD in daily work: o Professionals and Specialists trained in OD o Managers and leaders applying OD Successful Firms Share These Traits o Faster o Quality conscious o Employee involvement o Customer oriented o Smaller Evolution of OD Evolved since the late 1940s NTL Laboratory-Training methods Survey research and feedback Who Does OD? (part 2 of 3) o OD specialists: § Internal practitioners - from within organization § External practitioners – from outside organization Who Does OD? (part 3 of 3) Activities include: o Team leaders developing teams o Building learning organizations • • • • • o Implementing total quality management o Creating boundaryless organizations Organization Culture A system of shared meanings including: o Dress o Patterns of behavior o Language o Value system o Feelings o Attitudes o Interactions o Group norms Norms (part 1 of 2) o Organized and shared ideas of what members should do and feel o How behavior is regulated Norms (part 2 of 2) o Pivotal norms – essential to accomplishing organization’s objectives o Peripheral norms – support and contribute to pivotal norms but 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, and sanctions. Fiure1.3 The Socialization Process Results New Employee Exceptation s • 7 Encounters Organizatio n's Culture Adgustmen t to Culture Norms Adjustment to Cultural Norms and Socialization Occurs in 3 Ways 1. Rebellion – rejection of all values and norms 1.Performa nce 2.Commitm ent 3.Obtain goals 2. Conformity – acceptance of all values and norms 3. Creative individualism – acceptance only of pivotal values; rejection of others • Figure 1.4 Rebellion Rejection of All Values and Norms • • 8 Creative Individualism Acceptance Only of Pivotal Values; Rejection of All Others Conformity Acceptance of All Values and Norms Psychological Contract o Unwritten agreement between individuals and organization o Open-ended so issues may be renegotiated A Model for Change OD is continuing process with emphasis on viewing organization as total system of interacting and interrelated elements • Figure 1.5 Organization Development’s Five Stages STAGE 1 Anticipate Need for Change STAGE 5 STAGE 2 Self-Renewal, Monitor, and Stabilize Develop the Practitioner - Client Relationship STAGE 4 Action Plans, Strategies, and Techniques • • • • • • 9 STAGE 3 The Diagnostic Phase Five-stage Model for OD Process (part 1 of 5) Five-stage Model for OD Process (part 2 of 5) Stage two: Developing practitioner – client relationship o OD practitioner enters system o Good first impressions and match important o Practitioner establishes trust, open communication, shared responsibility Five-stage Model for OD Process (part 3 of 5) Stage three: The diagnostic phase o Practitioner and client gather data about system o Objective is to understand client’s problems, identify forces causing situation, and select change strategies Five-stage Model for OD Process (part 4 of 5) Stage four: Action plans, strategies, and techniques o Series of interventions, activities, or programs aimed at increasing effectiveness o Programs apply OD techniques Five-stage Model for OD Process (part 5 of 5) Stage five: Self-renewal, monitor, and stabilize o As OD program stabilizes, need for practitioner decreases o Monitor results o Stabilize change o Gradual disengagement of OD practitioner Key Words and Concepts o Action research model – collecting information, feedback to client, developing and implementing action programs o Change leader – person responsible for change o Client – person or organization that is being assisted o Creative individualism – questioning of peripheral norms, accepting of pivotal norms o External practitioner – person from outside organization who serves as resource for change o Internal practitioner – internal resource for change o Norms – organized and shared ideas regrading what members should do and feel, how behavior should be regulated, and what sanctions should be applied o OD specialist - professional who has specialized and trained in OD and related areas o Peripheral norms – support and contribute to pivotal norms but not essential to organization’s objectives o Pivotal norms – essential to organization’s objectives o Psychological contract – expectations between individual and organization o Socialization – process of individual adjusting to organization’s culture • Four Stages of the Learning Cycle 1. Concepts OD Theories Model Prior Theories 2. Activity 3. Analysis Communicating Problem-Solving Decision-Making Analyzing Comparing Critiquing 4. Connecting Reflecting Generalizing 10 
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