Chapter 1

Organization Development and

Reinventing the Organization

An Experiential Approach to Chapte

 Learning Objectives
Define OD and recognize need for
change.
Describe culture and understand its
impact.
Understand the psychological contract.
Describe five stages of OD.
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 Challenges for Organizations
Change avalanching down on us.
Tomorrows world different from todays.
Organizations need to adapt to change.
Organizations in continuous interaction
with external forces.

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 Figure 1.1
The Organizational Environment

An Experiential Approach to Chapte

 What Is OD?
Long-range efforts and programs.
Aimed at improving organizations
ability to survive.
OD changes problem-solving and
renewal processes.

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

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 The Characteristics of OD
Planned change.
Collaborative approach.
Improve performance.
Humanistic values.
Systems approach.
Scientific approaches.

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 Table 1.1
Major Characteristics of the Field of OD

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 Why OD?
Most cited reasons for beginning change
program:
The level of competition.
Survival.
Improved performance.

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 Primary Goals of
Change Programs
Change the corporate culture.
Become more adaptive.
Increase competitiveness.

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 Factors Leading to
Emergence of OD
Need for new organizational forms.
Focus on cultural change.
Increase in social awareness.

An Experiential Approach to Chapte

The Only Constant Is Change
Change is a moving target.
Today's managers need new mind-set.
Flexibility.
Speed.
Innovation.
Constantly changing conditions.

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 Successful Firms
Share These Traits
Faster.
Quality conscious.
Employee involvement.
Customer oriented.
Smaller.

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 Figure 1.2
Changing Organization of Twenty-First Century

An Experiential Approach to Chapte

 Evolution of OD
Evolved since the late 1940s.
NTL Laboratory-Training methods.
Survey research and feedback.

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 Who Does OD? (part 1 of 3)
OD practitioners consist of:
Specialists.
Those applying OD in daily work.

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 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.

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 Who Does OD? (part 3 of 3)
Activities include:
Team leaders developing teams.
Building learning organizations.
Implementing total quality management.
Creating boundaryless organizations.

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 Organization Culture
A system of shared meanings including: :

Language. Feelings.
Dress. Attitudes.
Patterns of Interactions.
behavior. Group norms.
Value system.

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 Norms
Organized and shared ideas.
What members should do and feel.
How behavior is regulated.

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 Types of Norms
Pivotal norms.
Essential to accomplishing organizations
objectives.
Peripheral norms.
Support and contribute to pivotal norms.
Not essential to organizations objectives.

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 Socialization Process
Process that adapts employees to
culture.
New employees become aware of
norms.
Employees encounter culture.
Individuals understand power, status,
rewards, sanctions.

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 Figure 1.4
The Socialization Process

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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.

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 Figure 1.5
Basic Responses to Socialization

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 Psychological Contract
Unwritten agreement between
individuals and organization.
Open-ended so issues may be
renegotiated.

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 A Model for Change
OD is continuing process.
Emphasis on viewing organization as
total system.
System consists of interacting and
interrelated elements.

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 Figure 1.6
Organization Developments Five Stages

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 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.

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 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.

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 Five-stage Model for OD
Process (part 3 of 5)
Stage Three
The Diagnostic Phase.
Practitioner and client gather data.
Objective to:
Understand clients problems.
Identify causes.
Select change strategies.
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 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.

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 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.
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 OD Application
GEs 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.
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 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.

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 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.
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 Leave no one behind shows up in
training and salaries.
Starbucks wants self-motivated team
players.
Major objective is maintaining
entrepreneurial spirit.

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 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.

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 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.

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 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.

An Experiential Approach to Chapte

 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.
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 Psychological contract.
Expectations between individual and
organization.
Socialization.
Process of individual adjusting to
organization's culture.

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 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.

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 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.

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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.

An Experiential Approach to Chapte

An Experiential Approach to Chapte