Chapter 16 The Challenge and the

Future for Organizations

An Experiential Approach to Organization Development 7th edition

Chapter 16 Slide 1

Learning Objectives (part 1 of 2)

Understand basic issues in using OD as

approach to planned change. Recognize ways of maintaining, internalizing, and stabilizing change program.

An Experiential Approach to Organization Development 7 th edition

Chapter 16 Slide 2

Learning Objectives (part 2 of 2)

Identify some of the future trends and

problems facing the OD practitioner. Understand process of terminating practitioner-client relationship.

An Experiential Approach to Organization Development 7 th edition

Chapter 16 Slide 3

Company of the Future (part 1 of 2)

Company of the future will attract and retain
talented employees by developing different kind of workplace. Powerful mission is magnet and motivator. Culture that values learning is key.

An Experiential Approach to Organization Development 7 th edition

Chapter 16 Slide 4

Company of the Future (part 2 of 2)

Core reality is old saying that a companys
people are its most important asset. Collaboration essence of the organization. Create flexibility, resiliency, speed, and creativity.

An Experiential Approach to Organization Development 7 th edition

Chapter 16 Slide 5

The Future Organization

A constantly changing organization.
An organization that is flexible and able to quickly change. Higher educational levels mean increase in motivational needs.

Change is never ending.

An Experiential Approach to Organization Development 7 th edition Chapter 16 Slide 6

Monitor and Stabilize Action Programs

Feedback.
Stabilize the change. Evaluate the OD program results.

An Experiential Approach to Organization Development 7 th edition

Chapter 16 Slide 7

Feedback of Information
Information returned to participants.
Commitment reinforced by feedback. Program effectiveness measured by degree problems corrected.

An Experiential Approach to Organization Development 7 th edition

Chapter 16 Slide 8

Stabilization of Change
Acceptance and adoption of change.
Guard against fade out. Reinforcement necessary. Continue assessment of change during later periods.

An Experiential Approach to Organization Development 7 th edition

Chapter 16 Slide 9

Evaluation of OD Programs
(part 1 of 2)

Evaluations important for 3 groups:

1. 2. 3.

Key decision makers. OD participants. OD specialists.

An Experiential Approach to Organization Development 7 th edition

Chapter 16 Slide 10

Evaluation of OD Programs
(part 2 of 2)

Three factors determine evaluation process:

1. 2. 3.

Training of OD specialist. Cooperation of organization members. Willingness of decision makers to pay for evaluation.

An Experiential Approach to Organization Development 7 th edition

Chapter 16 Slide 11

Termination of Practitioner-Client Relationship

Termination of relationship final stage of OD.
Relationship ends when practitioner or client believes little more can be accomplished. Disengagement will likely call for gradual reduction of practitioners help.

An Experiential Approach to Organization Development 7 th edition

Chapter 16 Slide 12

Developing Self-Renewal Capacity

Self-renewal means building innovation into
organizations values. Self-renewing organization constantly able to innovate.

An Experiential Approach to Organization Development 7 th edition

Chapter 16 Slide 13

Termination and Disengagement from Client System

Client and practitioner agree on reduced
involvement. Involvement does not drop to zero, but may continue at low level. The door always open for further work.

An Experiential Approach to Organization Development 7 th edition

Chapter 16 Slide 14

Conditions Supporting ODs Success

Organization under pressure to improve.
Change begins at top of organization. Top management actively participates. New ideas developed at several levels. Innovation and experimentation used to develop solutions.
An Experiential Approach to Organization Development 7 th edition Chapter 16 Slide 15

OD in Practice: War of Warehouse Stores (part 1 of 3)

Costco and Sams Club warehouse stores both
started in 1983. Some Analysts say Costco pays workers too much compared to competition such as Sams Club.

But some analysts look at productivity figures

and not just hourly wages.
An Experiential Approach to Organization Development 7 th edition Chapter 16 Slide 16

OD in Practice

(part 2 of 3)

Costco CEO Sinegal says, Paying your

employees well is not only the right thing to do but it makes for good business. Business Week magazine ran the numbers on the two warehouse stores and found

underlying results of 2 strategies.

An Experiential Approach to Organization Development 7 th edition

Chapter 16 Slide 17

OD in Practice

(part 3 of 3)
Costco Sams Club

Average hourly wage

Covered by health plan Labor and overhead costs

$15.97
82% 9.8% of sales

$11.52
47% 17% of sales

Sales per square foot

$795

$516
Chapter 16 Slide 18

An Experiential Approach to Organization Development 7 th edition

Emerging Issues and Values

OD is a growing, developing, and changing field
of study. OD still in transition, which makes it difficult to define what is an OD intervention.

An Experiential Approach to Organization Development 7 th edition

Chapter 16 Slide 19

Is OD Fad or Discipline?
OD has over 40 years of background history.
OD appears to be primary method for helping organizations adjust to change. Managers may use interventions as quick fixes. OD required even more as rate of change increases.
An Experiential Approach to Organization Development 7 th edition Chapter 16 Slide 20

Dilemmas for OD Practitioners

Some question OD because ill-defined.
Lack of evidence for some OD interventions. No accreditation program of OD practitioners. OD overemphasizes human interventions. Difficult for OD to deal with distrust, power, and conflict.
An Experiential Approach to Organization Development 7 th edition Chapter 16 Slide 21

Future Trends in OD
Organization
transformation (OT). Shared vision. Innovation. Trust. Empowerment.
An Experiential Approach to Organization Development 7 th edition Chapter 16 Slide 22

Learning organization.
Reengineering. Core competencies. Organizational architecture.

Macrosystem Trends in OD
Impact of culture change.
Total resource utilization. Centralization vs. decentralization. Conflict resolution. Interorganization collaboration.

An Experiential Approach to Organization Development 7 th edition

Chapter 16 Slide 23

Interpersonal Trends in OD
Merging line and staff functions.
Resource linking. Integrating quality and productivity. Diversity. Networking. Rewarding.
An Experiential Approach to Organization Development 7 th edition Chapter 16 Slide 24

Individual Trends in OD
Intrinsic worth.
Change in individuals. Effects of thinking. Health and fitness. Interdependence.

An Experiential Approach to Organization Development 7 th edition

Chapter 16 Slide 25

The Future of OD
OD will deal with changing workforce, global
competence, and transformation. OD is expanding and vital technology. Need for more studies on OD interventions. OD needs to deal effectively with external systems and power-coercive problems.
An Experiential Approach to Organization Development 7 th edition Chapter 16 Slide 26

Our Changing World: No Job Is Safe - Never Will Be (part 1 of 4)

What you will be doing in future will constantly
change. The career you are preparing for now will likely not be career you pursue for much of your life.

An Experiential Approach to Organization Development 7 th edition

Chapter 16 Slide 27

Our Changing World (part 2 of 4)

Career suggestions include:

Avoid jobs that can be broken down into repeatable steps. Search for jobs that require flexibility, problemsolving, creativity, and lifetime of learning. Work that relies on complex communication skills will probably not be outsourced.
An Experiential Approach to Organization Development 7 th edition Chapter 16 Slide 28

Our Changing World (part 3 of 4)

Additional career suggestions:

Jobs that require frequent interactions with other people will flourish. Employees with good people skills and employees with multicultural teams will have advantage. Get a college education and then keep going to college.
An Experiential Approach to Organization Development 7 th edition Chapter 16 Slide 29

Our Changing World (part 4 of 4)

Warren Bennis, OD practitioner, says:
No job is safe. Never will be. The half-life of any particular skill is, at most, five years. And thats on the long side. What will keep you alive? Be curious, be willing to learn,

have a moral compass and know what

gives your life meaning.
An Experiential Approach to Organization Development 7 th edition Chapter 16 Slide 30

Key Words and Concepts

Feedback - required to determine whether to

modify, continue, or discontinue activities. Individual trends - future trend of OD that focuses on personal level.

An Experiential Approach to Organization Development 7 th edition

Chapter 16 Slide 31

Interpersonal trends - future trend of OD that

focuses on team and group dynamics. Macrosystem trends - future trend of OD that focuses on organizational system. Reconfigurable - an organization that is

flexible and able to change.

An Experiential Approach to Organization Development 7 th edition

Chapter 16 Slide 32

Self-renewal - building innovation and

commitment to change into organizations values.

Stabilizing the changes - preventing

deterioration of the change efforts and

reverting to previous behaviors.

An Experiential Approach to Organization Development 7 th edition

Chapter 16 Slide 33