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Introduction to Organizational Development part 3
Cees A.M. den Teuling MBAon 11 March 2013
Transcript of Introduction to Organizational Development part 3
Expectations between individual and organization.
Process of individual adjusting to organization's culture. Creative individualism.
Questioning of peripheral norms.
Accepting of pivotal norms.
Person from outside who is resource for change.
Internal resource for change.
Could be manager. 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. 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. Preparations for Next Chapter Purpose.
Share expectations between students and instructor.
Instructor can find out what students expect.
Students can learn what instructor expects. OD Skills Simulation 1.1
Auditioning For The Saturday Night Live Guest Host Spot OD practitioner.
People using and assisting others to implement OD.
Professional specialized and trained in OD.
Support and contribute to pivotal norms.
Not essential to organization's objectives.
Essential to organization's objectives. Norms.
Organized and shared ideas.
What members should do and feel.
How behavior should be regulated.
System of shared meanings.
Includes language, dress, values, norms.
Organization development (OD).
Planned strategy to bring about change. “Leave no one behind” shows up in training and salaries.
Starbucks wants self-motivated team players.
Major objective is maintaining entrepreneurial spirit. Starbucks’ unique culture instrumental in success.
Challenge is maintaining “formula” that made them successful.
CEO communicates strong vision to employees. OD Application
Leave No One Behind At Starbucks Stage Four
Action Plans, Strategies, and Techniques
Series of interventions, activities, or programs.
Aimed at increasing effectiveness.
Programs apply OD techniques. Stage Three
The Diagnostic Phase.
Practitioner and client gather data.
Understand client’s problems.
Select change strategies. Stage One
Anticipating Need for Change.
Someone recognizes need for change.
Must be felt need for change. Five-stage Model for OD Process OD is continuing process.
Emphasis on viewing organization as total system.
System consists of interacting and interrelated elements. A Model for Change Figure 1.5
Basic Responses to Socialization Figure 1.4
The Socialization Process 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 2 of 3) Figure 1.2
Changing Organization of Twenty-First Century Change is a moving target.
Today's managers need new mind-set.
Constantly changing conditions. The Only Constant Is Change Need for new organizational forms.
Focus on cultural change.
Increase in social awareness. Factors Leading to
Emergence of OD Change the corporate culture.
Become more adaptive.
Increase competitiveness. Primary Goals of
Change Programs Planned change.
Scientific approaches. The Characteristics of OD Define OD and recognize need for change.
Describe culture and understand its impact.
Understand the psychological contract.
Describe five stages of OD. Learning Objectives Purpose.
Goal is to build trust within class.
Share information about yourself.
Explore values and norms.
Experience interviewing another person. OD Skills Simulation 1.2
The Psychological Contract Action research model.
Collecting and feeding back information.
Implementing action programs.
Person attempting to bring change.
Person or organization that is being assisted. Key Words and Concepts 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. OD Application
GE’s Epicenter of Change Stage Five
Self-Renewal, Monitor, and Stabilize.
As program stabilizes, need for practitioner decreases.
Gradual disengagement of practitioner. Stage Two
Develop Practitioner-Client Relationship.
Practitioner enters system.
Good first impressions important.
Practitioner establishes trust and open communication. Figure 1.6
Organization Development’s Five Stages Unwritten agreement between individuals and organization.
Open-ended so issues may be renegotiated. Psychological Contract Rebellion.
Rejection of all values and norms.
Acceptance of all values and norms.
Acceptance of pivotal values.
Rejection of others. Adjustment to Cultural Norms Process that adapts employees to culture.
New employees become aware of norms.
Employees encounter culture.
Individuals understand power, status, rewards, sanctions. Socialization Process Pivotal norms.
Essential to accomplishing organization’s objectives.
Support and contribute to pivotal norms.
Not essential to organization’s objectives. Types of Norms Organized and shared ideas.
What members should do and feel.
How behavior is regulated. Norms Activities include:
Team leaders developing teams.
Building learning organizations.
Implementing total quality management.
Creating boundaryless organizations. Who Does OD? (part 3 of 3) OD practitioners consist of:
Those applying OD in daily work. Who Does OD? (part 1 of 3) Evolved since the late 1940s.
NTL Laboratory-Training methods.
Survey research and feedback. Evolution of OD Faster.
Smaller. Successful Firms
Share These Traits Most cited reasons for beginning change program:
The level of competition.
Improved performance. Why OD? Table 1.1
Major Characteristics of the Field of OD Planned.
Managed from top.
Increases organization effectiveness.
Uses behavioral science knowledge. OD Is: Long-range efforts and programs.
Aimed at improving organization’s ability to survive.
OD changes problem-solving and renewal processes. What Is OD? Figure 1.1
The Organizational Environment 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. Challenges for Organizations A system of shared meanings including: Feelings.
Group norms. Language.
Patterns of behavior.
Value system. Organization Culture Satisficing management.
Does only what is necessary to get by.
Based on low risk and formalized procedures.
Open system of coordinated human and technical activities.
Consists of five major subsystems. Future shock.
Inability to cope with rapid change.
Flattening hierarchical organizational charts.
Reduction in layers of management.
Interrelated and acts with environment. Contingency approach.
Attempt to determine proper management technique.
Reacting with environment.
Movement toward disorder.
Results and reaction from behavior. Systems approach.
Concerned with relationships among departments and
Interdependencies between elements and external environment.
What the group does.
How group works.
Relationships among team members. Stable environment.
Unchanging basic products and services.
Static level of competition.
Slow, steady rate of growth.
Set of interrelated elements.
Unified to achieve a goal or purpose. Process observation.
Technique used in examining groups.
Waits until something is problem before reacting.
Plans for change.
Makes contingency plans. Organization renewal.
Ongoing process of building innovation into organization.
Organization transformation (OT).
Coping with unplanned change.
Changes organization form (revolution).
Actively participate while being aware of group process. Client System.
Organization employing practitioner.
Assist them in planning change.
Isolated from environment.
Task of the group. Key Words and Concepts Success attributed to culture.
Defined primarily by co-founder Steven Jobs.
Jobs’ perfectionist approach caused internal problems.
Jobs’ management style:
Tends toward throwing tantrums.
Humiliating employees who disagree. Mission to provide more choices, better products.
Result is innovative, profitable company.
One of most innovative companies
On Fortune 500 list of return to shareholders. OD Application
Apple and Renewal World wide workforce of over 20,000.
Uses fluid work groups.
Engineers move to projects that interest them.
Engineers work on own projects 20 percent of time.
Outward impression is disorganized.
But Google maintains focus and strategy. Operates under freewheeling managerial style.
Challenge to develop further creative culture.
CEO Eric Schmidt.
Founders, Larry Page and Sergey Brin. OD Application
Google’s Culture Team activities are:
Task activities—what the team does.
Team process—how the team works.
Process observations examine:
The way the group functions.
Leadership, decision making, communication. Focus on Team Effectiveness
(part 2 of 2) The goals are to improve:
Interpersonal competence. Focus on Individual Effectiveness Individual effectiveness.
Organization effectiveness. What OD Focuses On OD like an evolution.
Planned change on large scale.
Longer time frame than OT.
Modifies total organization or major parts. Organization Development OT changes organization’s form or appearance.
OT is a revolution.
Transforms framework of organization.
Unplanned changes in response to pressures.
Change occurs in short time frame. Organization Transformation Too much change in too short a time.
Inability to adapt to accelerating change.
Management reaction to change strained.
Managers must be adaptable and flexible. Future Shock and Change Occur by design, not by chance.
Key variables are:
Results. High Performance Systems In continual interaction with environment.
Continually receives feedback from environment. Open Systems Ingredients of process more vital than elements.
Organization more important than elements. System is set of interrelated parts.
Unified by design to achieve purpose or goal. Organization as a System Breaks company into key processes.
Creates teams from different departments to run them. Systems Approach 4 Ways for Organization to Adapt to Change: Increasing rate of change.
Impact of future shock.
Organizations need capacity to adapt to change. Constant Change Make adaptive changes to environment.
The only constant is change.
System-wide impact. Renewal of Organizations Recognize factors contributing to change.
Identify ways organizations use renewing processes.
Determine ways to cope with change.
Understand and apply sociotechnical-systems approach. Learning Objectives Organization Renewal:
The Challenge of Change Read Chapter 3.
Read instructions for OD Skills Simulation 3.1.
Prior to class, form teams of six and select roles.
Complete Step 1.
Read and analyze Case: The Dim Lighting Co. Preparations for Next Chapter Purpose:
To illustrate growth for interpersonal competence and career planning. OD Skills Simulation 2.1
Behavior Profile I Focus on total organization system.
Improve effectiveness by changes in:
Management. Focus on Organization Effectiveness Emphasis on:
Working through conflicts.
Team effectiveness. Focus on Team Effectiveness
(part 1 of 2) OT and OD are approaches to managing change.
Both are major ways of managing change. Organization Transformation (OT) and Organization Development Considers organization and environment.
Identifies “if-then” relationships.
Suggests change in directions. Contingency Approach Coordinated human and technical activities.
Goals and values.
Psychosocial subsystem (culture).
Managerial subsystem. The Sociotechnical System Figure 2.3
Organization as Open System Designed to accomplish objectives.
Elements have established arrangement.
Interrelationships exist among elements. Basic Qualities of Systems Figure 2.2
Model of Adaptive Orientation Two dimensions:
Environmental stability. Approaches to Change Organizational renewal important to survival.
An ongoing process.
Builds innovation and adaptation. Organization Renewal -
Adapting to Change Downsizing.
Going global. Market.
Competition. Pressure for Change Figure 2.1
Stage 1 of OD’s 5 Stages Figure 2.4
The Sociotechnical System Sluggish Thermostat Management. Satisficing Management. Reactive Management. Renewing/Transformation Management. Stable environment, low adaptation.
Management style based on low risk.
Organizations using this style:
Have very stable goals.
Highly centralized structure Stable environment, high adaptation.
Adequate and average.
Planning and decision-making concentrated at top. Hyperturbulent environment, low adaptation.
Reacting after conditions change.
Short-term, crisis type of adaptation.
Replacing key people.
Hasty reorganization. Hyperturbulent environment, high adaptation.
Deal with future conditions before they occur.
Faster at developing new ideas.
More participative. Practitioners differ on degree of congruency with client values.
Some believe personal values are compatible with client.
Others will help client as long as operations legal. Compatibility of Values
(part 2 of 4) Purpose:
Compare decisions made by individuals with those made by group.
Practice effective consensus-seeking techniques.
Gain insights into concept of cultural values. OD Skills Simulation 3.1
The Dim Lighting Co. Open-book management.
Employees understand accounting statements.
Use knowledge in work.
Value system that is part of profession. Managerial efficiency.
Ratio of output (results) to input (resources).
Employee attitudes that influence performance. Corporate culture.
System of shared values and beliefs.
Interact with people, structure, systems.
Ability to accomplish specific organizational goals. Key Words and Concepts It operates a three-month long “boot camp.”
New employees integrated into company.
Employees learn values and culture.
Receive comprehensive evaluation and feedback.
Program provides source for renewal.
Provides new services and products.
Relationships formed, new leaders created. Trilogy is small but competes with large software companies.
Key goal is to attract talented people.
Fosters new methods in relationships with clients and employees. OD Application
How Trilogy’s University Helps Build Its Culture Production employees use these techniques to:
Understand the business and
Know where to focus attention.
Culture is one where employees:
Understand the business and
Provide thorough attention to financials. Respect for people.
Trust and support.
Confrontation and open communication.
Participation. OD Values About Nature
of Organization Members OD ideally implemented voluntarily.
Top management may impose program.
OD practitioners cognizant of power and politics. Imposed Change
(part 3 of 4) Adaptability.
Sense of identity.
Capacity to test reality. Other Criteria for Organizational Effectiveness Support and collaboration from other departments.
Management support to provide climate of risk taking. Support (part 3 of 4) Information.
Resources. Tools for Change (part 1 of 4) Outside factors (market, etc.) define culture.
Type of structure (tall vrs. flat). Organizational Subsystem Creates Culture Culture is system of:
Observed behavioral norms.
Learning ropes for newcomers. What Is Corporate Culture? Environment of rapid change.
Static organizational culture no longer effective. Understanding Corporate Culture Recognize importance of corporate culture.
Identify key factors assessing culture.
Describe culture leading to effective organizations.
Describe ethical, value, and goal considerations. Learning Objectives Read Chapter 4.
Complete Steps 1 through 4 of OD Skills Simulation 4.1.
Read and prepare Case: The Grayson Chemical Company Preparations for Next Chapter Setpoint builds unique automation equipment.
Required are self-motivated employees.
Who can solve problems and
Look for ways to improve processes.
Uses project management and open-book accounting. OD Application
Culture and Setpoint Systems Table 3.1
OD Values Determine goals given precedence.
Challenge to develop balanced intervention:
One that improves productivity and
Quality of work for members. Priority of Goals
(part 4 of 4) Success depends on:
Congruence between OD values and organization’s values.
Key issue is fit between between practitioner and client:
Compatibility of values.
Priority of goals. OD Implementation Issues
(part 1 of 4) Expertise.
Code of ethics. OD Professional Values and Ethics Managerial effectiveness.
Accomplishing goals and objectives.
Ratio of results to resources.
Employee attitudes that influence performance. Organizational Dimensions Affecting Performance Provide information to people.
Provide ability to gather information.
One method is open-book management. Information (part 2 of 4) Changing culture not easy.
Culture can prevent company from adapting. Cultural Resistance to Change Create vision for the future.
Develop model for change.
Reward changes. Key Factors to Improve Culture High-performing companies have strong cultures.
Many cultures fail to adapt to change.
Following corporate mergers, cultures often clash. Corporate Culture and Success Figure 3.1
Culture Formation How employees are treated.
Through actions and words.
Vision articulated by top management. Managerial Subsystem
Creates Culture Managerial.
Organizational. Culture Comes from 2 Subsystems Challenge of managers is:
Create renewing system.
Develop long-term efforts.
Culture often key to success.
Cultural change result of complex strategy. Creating Climate for Change Changing the Culture Chapter 3 Innovative programs for providing resources include:
Innovation banks. Equipment.
Staff. Resources (part 4 of 4) Social factors.
Technological upheavals. Pressure Points to Bring About Change Dilemma interactions.
Result from questions from practitioner.
Regarding client’s problem definition and value differences.
Change agents from outside and inside organization.
Change agent from outside organization. Charismatic mode.
Relies on leaders to determine if change desirable.
High on morale.
Low on effectiveness.
Person or group in organization that requested practitioner’s help. Purpose:
To give you information about approaches to practitioner-client relationship.
Information may help to:
Reinforce existing strengths and
Indicate areas that need improvement. OD Skills Simulation 4.1
Practitioner Style Matrix Persuader style.
Moderate emphasis on morale and effectiveness.
Selectivity of information that is perceived.
Low on effectiveness.
Low on morale. Intervention.
Entrance into client system.
Includes variety of roles and activities.
High on effectiveness.
High on morale.
Process individuals use to give meaning to environment.
Interprets sensory impressions. Gamesmanship mode.
Sees life as if playing a game.
Goal is to win.
Change agent from within organization.
Responses used by practitioner to explain something in terms client can understand. Client target system.
Organization needing help in change.
Tendency to fill in missing information to complete perception.
Decisions made through sharing viewpoints. Known as creator of “relationship consulting.”
Works directly with chief executive.
Focuses on total system.
Collaborate with client to:
Study, define, and assist in implementation of solution.
Does not make decisions.
Serve as catalyst to help in the process. Bain & Co. is major worldwide consulting firm.
Works collaboratively with clients to assist them in:
Making decisions in areas including strategy, organization, and operations. OD Application
Bain & Co. Consensus Mode:
Both client and practitioner share perceptions.
Differences are worked through.
OD practitioner attempts to operate from this mode. Practitioner-Client Relationship Modes (part 5 of 5) Charismatic Mode.
View of changes taken from leaders’ cues.
Members view change as desirable if leaders approve.
Limited number of members share their own ideas. Practitioner-Client Relationship Modes (part 4 of 5) Apathetic.
Consensus. Practitioner-Client Relationship Modes (part 1 of 5) Figure 4.7
Practitioner Style Model Practitioner brings knowledge, skills, values, and experience.
Client system has own subculture and readiness for change.
Together determine practitioner’s style and approaches. Practitioner Style Model Selectivity of information that is perceived.
People tend to ignore information that conflicts with their values.
Accepts other information that agrees with their values. Selective Perception Initial intervention is:
An evaluation by client and practitioner of each other.
First impressions important.
Relationship based on mutual trust and openness. Initial Perceptions A system of interacting elements.
Client target system. Forming Practitioner-Client Relationship Table 4.1
OD Practitioner Skills and Activities Intervention is:
Coming between members of organization.
For purpose of change.
Interventions are planned activities.
External practitioner usually intervenes through top manager. The Intervention Key personnel first decide if change needed.
Learning goals of OD appropriate?
Cultural state of client ready for OD?
Key people involved?
Members prepared and oriented to OD? Readiness of
Organization for OD Persuader Style.
Seeks compromise between cheerleader and analyzer styles.
Achieves average performance. Five Practitioner Styles (part 5 of 6) Cheerleader Style.
Places emphasis on member satisfaction.
Does not emphasize organization effectiveness. Five Practitioner Styles (part 3 of 6) Provides support to one another.
Achieves greater continuity over OD program.
Team combines advantages of both while minimizing disadvantages. External-Internal Practitioner Team (part 3 of 3) External practitioner brings:
Expertise, objectivity, and new insights.
Internal practitioner brings:
Knowledge of issues and norms, and
Awareness of strengths and weaknesses. External-Internal Practitioner Team (part 2 of 3) Disadvantages.
May lack specialized skills.
Lack of objectivity.
Likely to accept organizational system.
May lack necessary power and authority. Internal Practitioner (part 3 of 3) Random or haphazard change.
Forced on organization by external environment.
Not prepared for.
Deliberate attempts to modify organization. Two Types of Change
in Organizations Change programs do not happen accidentally.
Initiated with purpose and require leadership.
OD practitioner deals proactively with changing forces. Haphazard Versus
Planned Change Read Chapter 5.
Prepare for OD Skills Simulation 5.1.
Prior to class, form teams of six and select roles.
Complete Step 1.
Read and analyze Case: The Old Family Bank. Preparations for Next Chapter Analyzer style.
High on effectiveness.
Low on morale.
Follows established routine.
Avoids responsibility. Key Words and Concepts Level of commitment to change of client.
Degree of power to influence change.
Client’s manipulative use of practitioner power. Warning Signs in Practitioner-Client Relationship Formalization of obligations in contract advisable for external practitioner.
Does not need contract.
Ground rules should be formalized. Formalization of Operating Ground Rules Gamesmanship Mode.
Keeps quiet about true ideas with practitioner.
Manipulates strategic factors. Practitioner-Client Relationship Modes (part 3 of 5) Apathetic Mode.
Keeps quiet about true ideas with practitioner.
Skeptical about change. Practitioner-Client Relationship Modes (part 2 of 5) Figure 4.8
Four Practitioner-Client Relationship Modes Practitioner “practice what he or she preaches.”
Create climate of:
Trust. Creating Climate for Change Questions about client’s definition of problem.
Client’s awareness of need for change.
Client’s unrealistic expectations.
Client’s misuse of power.
Value differences with client and practitioner. Dilemma Interactions Individual fills in missing information in order to complete perception.
Individual perceives more in situation than is really there. Closure Figure 4.6
Perception Formation and Effect on Relationships The process that individuals use to:
Give meaning to environment.
Interpret and organize sensory impressions.
What one perceives can be different from reality.
People behave on basis of:
What is perceived versus what really is. What Perception Is Figure 4.4
System’s View of Change Relationship Figure 4.3
Practitioner Skills Profile Operates on belief that team is basic building block.
Concerned with how processes occur.
Does not take control.
Believes that assisting client leads to lasting solution. Practitioner Role in Intervention Who client is becomes complex as practitioner intervenes.
Client may be:
An individual. Who Is Client? Group norms and growth.
Leadership and authority.
Intergroup cooperation. Communication.
Member roles in groups.
Group problem-solving. Pathfinder Practitioner Focuses on Six Processes: Pathfinder Style.
Seeks high organization efficiency and high member satisfaction.
Desired style for OD practitioner. Five Practitioner Styles (part 6 of 6) Analyzer Style.
Places emphasis on efficiency.
Little attention to satisfaction of members. Five Practitioner Styles (part 4 of 6) Stabilizer Style.
Maintains low profile.
Tries to survive by following directives. Five Practitioner Styles (part 2 of 6) Figure 4.2
Practitioner Styles Persuader style.
Pathfinder style. Stabilizer style.
Analyzer style. Five Practitioner Styles (part 1 of 6) Practitioners have variety of styles.
View styles as degree of emphasis placed upon 2 dimensions:
Effectiveness - degree of emphasis upon goal accomplishment.
Morale - degree of emphasis upon relationships and satisfaction. OD Practitioner Styles Team combines external practitioner working with internal practitioner.
Probably most effective approach.
Partners bring complementary resources. External-Internal Practitioner Team (part 1 of 3) Advantages.
Familiar with culture and norms.
Knows power structure.
Personal interest in organization. Internal Practitioner (part 2 of 3) Member of organization who can be:
A top executive.
Employee who initiates change in work group.
From human resources or OD department. Internal Practitioner (part 1 of 3) Not previously associated with client.
Different viewpoint and objectivity.
Not dependent upon the organization.
Unfamiliar with organization.
Unfamiliar with culture, communication networks, and power systems. External Practitioner Figure 4.1
Stage 2 of OD’s 5 Stages Define role of OD practitioner.
As a potential OD practitioner, identify:
Your strengths and
Areas of improvement.
Experience and practice:
Your style of intervention and
Influence in a group. Learning Objectives Role and Style
of the OD Practitioner Schedule.
Operating ground rules. Point of contact.
Role of practitioner.
Fees. Contract with External Practitioner Specifies Items Problem-solving.
Communication. Six Key Skill Areas Critical to Success of Practitioner Interpretation.
Reflection. Openness and trust between practitioner and client essential.
Basic responses to build trust: Developing Trust Relationship Sociotechnical systems model.
Determines how social and technological systems interrelate.
Describes feedback between subsystems.
Those highly chosen individuals in a sociogram.
Method of gathering data normally used for large number of responses. Restraining forces.
Forces that act to keep organization stable.
Diagram of relationships and interactions within group.
Technique for collecting quantitative data on work groups.
Result of approach is sociogram. Mutual choice.
In a sociogram, when individuals within group choose one another.
Interview direction is chosen by respondent.
In a sociogram, when individual in group chooses another but not chosen in return. Diagnosis.
Analysis of problem(s).
Provide conceptual framework to understand organization.
How well they function as a system.
Differentiation and integration model.
Diagnostic model that stresses analytical diagnosis as basis for planned change. eBay now gathers data to learn about customers.
Data showed strategy of on-line auctions obsolete.
Now focuses on fixed price sales of:
Collectables, overstocked items, and last years models.
But business continues to fall short of expectations. Read Chapter 6.
Prepare for OD Skills Simulation 6.1.
Complete Step 1.
Read the Company Situation.
Read and analyze Case: The Hexadecimal Company. Preparations for Next Chapter Open-ended questions.
Allows respondent to be unrestrained and to direct interview.
Difference between desired and actual performance.
Method of gathering data.
Normally used for large number of responses. Force-field analysis model.
Weighs forces for and against change.
Act of observing may influence behavior of those being investigated.
Data that has structure and form.
In a sociogram, individuals within group who are chosen rarely by others. Directed interview.
Interview in which specific information is sought.
Put pressure on organization to change.
Restraining and driving forces for change being equal or in balance. Clique.
In a sociogram, when 3 or more persons select one another.
Specific questions normally answered yes or no.
Unstructured, unformed facts. Key Words and Concepts Data obtained from:
Mystery diners who graded stores.
In-depth interviews with customers.
Data analysis showed solution:
Deliver better experience for customers.
Solution included better food and more choices.
Coffee station part of solution:
Increase traffic at existing stores.
Bring in customers at non-dinner hours. In ‘02 McDonald’s identified a problem based on earnings and profitability.
Lack of data on customers prevented identifying problem.
In ‘03 adopted system to gather data over long term. OD Application
Data Collection and Diagnosis at McDonald’s Confidentiality of data.
Threatening and overwhelming diagnosis.
Practitioner’s favorite diagnosis.
Diagnosis of symptoms, not problems. Warning Signs in Diagnosis When forces equal, organization in quasi-stationary state of equilibrium.
Analysis determines forces to increase or decrease. Force-Field Analysis Model
(part 2 of 2) Two interrelated systems in organization:
The 2 systems are interrelated.
Type of feedback required between subsystems. Sociotechnical Systems Model Examines work units using 4 characteristics of environment:
Degree of departmental structure.
Time orientation of members.
Interpersonal orientation of members toward others.
Members’ orientation toward goals. Differentiation-Integration Model (part 3 of 3) Differentiation-integration model.
Force-field analysis. Types of Diagnostic Models Techniques used to analyze data.
Dictated by method used to gather data.
Type of analysis decided prior to data collection. Analysis of Data Figure 5.5
Example of Sociogram Secondary sources.
Organization and industry data.
Employee surveys or questionnaires.
Useful with a large number of people.
Data may lack “richness.” Types of Data-Gathering Methods (part 1 of 3) Stage 3: Selection of Data-Gathering Method
Selection of one or more methods.
Nature of the problem helps determine method.
Variety of methods may be used. Data Collection Stages (part 4 of 4) Stage 1: Definition of Objectives
Define objectives of change program.
Identify preliminary diagnosis and further information required. Data Collection Stages (part 2 of 4) Organization’s strengths.
What can be done to take advantage of strengths.
What can be done to alleviate weaknesses. Self-Assessment Gap Analysis
of Four Key Areas Figure 5.3
The Performance Gap Figure 5.2
The Diagnostic Process Systematic approach to understand present state of organization.
Specifies nature of problem and causes.
Provides basis for selecting strategies.
Involves systematic analysis of data. What is Diagnosis? Analyzes data on organization’s:
Other elements. Diagnosing Problem Areas
(part 2 of 2) Identification of areas for improvement.
Assess current performance and desired level of quality.
Provides information that allows for faster-reacting organization. Diagnosing Problem Areas
(part 1 of 2) Describe major diagnostic models and techniques used in OD programs.
Apply systematic diagnosis to organizational situations. Learning Objectives (part 2 of 2) Identify system parameters.
Recognize symptoms, problems, and causes of ineffectiveness.
Recognize techniques for gathering information. Learning Objectives (part 1 of 2) Purpose.
To experience and observe how information affects team decision making.
Will allow you to experience and observe:
How team members share task information.
How various problem-solving strategies influence results.
How collaboration and competition affect team problem solving. OD Skills Simulation 5.1
The Acquisition Decision eBay’s business model was:
Auction of merchandise on Internet.
Has no warehouses, does not take possession of merchandise.
Revenue comes from listing fees, advertising, and PayPal.
Revenue and profit down substantially. OD Application
Performance Gap at eBAY Figure 5.7
Example of the Use of Force-Field Analysis Figure 5.6
Force-Field Analysis Model Behavior balance between opposing forces.
Act to keep organization stable.
Act to change organization. Force-Field Analysis Model
(part 1 of 2) Table 5.1
Example of Survey Results Using the Differentiation-and-Integration Model Steps in implementation of model:
Begins with study of degree of differentiation between units.
Then analyzes integration and cooperation required between units.
Provides a basis for structural and cultural changes in departments. Differentiation-Integration Model (part 2 of 3) Stresses sound analytical diagnosis.
Used for interdepartmental issues.
Collects data on activities, interactions, and norms.
Objective is to help departments achieve integration. Differentiation-Integration Model (part 1 of 3) Models may be used to:
Analyze structure, culture, and behavior of organization.
Models play a critical role.
Provide conceptual framework to understand organization. Diagnostic Models Validity of data.
Time to collect data.
Cost of data collection.
Organization culture and norms.
Hawthorne effect in data collecting. Guidelines for Evaluating Effectiveness of Data Collection Decide from whom data will be obtained.
Select appropriate technique.
Implement data-collection program. Implementation of
Data Collection Types of Data-Gathering Methods (part 3 of 3) Direct observation.
Observing how people go about tasks.
Direct, personal, and flexible.
One of most widely used methods.
Nondirected interview. Types of Data-Gathering Methods (part 2 of 3) Sociogram.
Visual method of recording and analyzing preferences in a group.
Each member represented by circle.
Communication represented by arrows indicating direction of choice. Stage 2: Selection of Key Factors
Identify central variables.
May be necessary to increase range and depth of data. Data Collection Stages (part 3 of 4) Definition of objectives.
Selection of factors.
Selection of data-gathering method. Data Collection Stages (part 1 of 4) Difference between what organization could do and what organization is doing. Performance Gap Step 6: Problem areas identified.
Step 7: Is client motivated?
Step 8: Diagnosis and work on problem.
Step 9: Monitor and assess results. Steps in Diagnosis (part 2 of 2) Step 1: Tentative problem identified.
Step 2: Collect data.
Step 3: Analyze data.
Step 4: Feedback data.
Step 5: More data needed? Steps in Diagnosis (part 1 of 2) Primary factors.
Measure what’s important.
Sense of urgency. Simplicity.
Involvement. Critical Issues in Diagnosis Figure 5.1
Stage 3 of OD’s 5 Stages The Diagnostic Process Information is data that have form and structure. Signs.
Assumptions. Data is an aggregation of: Data-Collection Process Interpretation.
Potential action programs. Data gathering.
Identification of problem areas. Diagnosis is cyclical process involving: The Process Multinational companies (MNCs) based all over the world.
MNCs emerging in larger numbers in developing countries.
MNCs help create markets by employing workers worldwide.
Trend for MNCs to blend into countries and adapt local culture. Reasons for increase include:
Improvements in communications and transportation.
More efficient global banking systems.
Surpluses in capital for some countries.
Worldwide lowering of trade barriers. PHASE 4 – Residual Resistance.
Opposing groups continued to have conflicts.
Resistance became less intense through first decade of 2000s.
PHASE 5 – Change Established.
World generally sees environmental responsibility as a necessity.
Disagreements persist in how to implement changes. Purpose.
Help you further understand the diagnosis process.
Experience overcoming resistance to change. OD Skill Simulation 6.2
Driving and Restraining Forces Purpose.
Examine how you attempt to influence others.
Understand relationship between acceptance and rejection of change.
Consider how change situations are influenced. OD Skill Simulation 6.1
Downsizing in Enigma Co. Profit-sharing.
Uses the performance of business to calculate employee pay.
Forces that block implementation of change program.
Describes desired future state for organization.
Can provide members with mental image of future. Gain sharing.
Reward system that recognizes value of specific group.
Reward system based on the knowledge or skills of workers.
Employees use financial records to analyze problems. Driving forces.
Increases client system to implement proposed change.
Employee stock ownership plan.
Grant stock or stock options to broad section of employees. Keywords and Concepts PHASE 1 – Change Introduced.
Environmental movement began to grow in 1970s.
The forces for change were small.
PHASE 2 – Forces Identified.
By 1980s forces for and against change became organized.
PHASE 3 – Direct Conflict.
Clean Air Act of 1990 brought opposing groups into direct confrontation. Change tends to move through a life cycle.
Environmental movement over 40 years illustrates phases. OD Application
Five Phases of
Resistance to Change Climate conducive to change.
Clearly articulated vision.
Leadership of managers. Strategies to Increase Motivation (part 1 of 2) Threat to position power.
Redistribution of power.
Disturb existing social networks.
Conformity to norms and culture. Restraining Forces Blocking Change (part 2 of 2) Momentum toward change.
Once change underway, forces push it along.
Those involved tend to become committed.
Money previously already spent on change provides motivation.
Change in one part of organization may set off chain reaction. Driving Forces for Change
(part 4 of 5) Dissatisfaction with present situation.
External pressures toward change.
Momentum toward change.
Motivation by management. Driving Forces for Change
(part 1 of 5) Driving forces:
Anything that increases organization to implement change.
Vary in intensity depending on situation. Driving Forces Toward Acceptance of Change Quadrant 4
Major change, high impact on culture.
Greatest resistance can be predicted.
Probability of success low. Change Model (part 5 of 5) Quadrant 3
Major change, high impact on culture.
Some resistance likely.
Good management can probably overcome resistance. Change Model (part 4 of 5) Figure 6.2
Change Model Two major considerations in organizational change are:
Degree of change.
Impact on organization’s culture. A Change Model (part 1 of 5) The greater the impact on existing culture:
The greater the resistance and
The more difficult it is to implement change. Impact on Culture Person leading change often most important force for change.
OD practitioners may be brought in to assist. Advocates of Change Phase 4.
Remaining resistance seen as stubborn.
Possibility resisters will mobilize to shift balance of power. Life Cycle of Resistance to Change (part 4 of 5) Phase 2: Forces Identified.
Forces for and against change identified.
Change more thoroughly understood.
Novelty of change tends to disappear. Life Cycle of Resistance to Change (part 2 of 5) Response to change tends to move through 5 phases:
Phase 1: Change Introduced.
Only few people who see need for change.
Resistance appears massive. Life Cycle of Resistance to Change (part 1 of 5) Policies.
Work flows. Changes on Organizational Level Overcoming Resistance to Change Read Chapter 7.
Prepare for OD Skill Simulation 7.1.
Complete Step 1.
Prior to class, form teams of eight members and select roles.
Read and analyze Case: The Farm Bank. Preparations for Next Chapter Purpose.
Experience a change situation where you attempt to change another person. OD Skill Simulation 6.3
Strategies for Change Table 6.1
Fortune Top Global 500 Companies Globalization has occurred for hundreds of years.
Recently experienced exponential growth. OD Application
The World of Business Participation of members.
Negotiation, agreement, and politics.
Power strategies. Strategies to Increase Motivation (part 2 of 2) Effective change programs:
Increase driving forces.
Decrease restraining forces.
Force-field analysis model useful to view driving and restraining forces. Driving Forces & Restraining Forces Act in Tandem Uncertainty regarding change.
Fear of unknown.
Disruption of routine.
Loss of benefits.
Threat to security. Restraining Forces Blocking Change (part 1 of 2) Motivation by management.
Manager or advocate of change becomes motivating force.
Top management’s encouragement can motivate change. Driving Forces for Change
(part 5 of 5) External pressures toward change.
Forces outside of organization (example: market conditions).
New technologies and methods implemented to remain competitive.
New legal requirements. Driving Forces for Change
(part 3 of 5) Dissatisfaction with present situation.
Intense dissatisfaction with present situation provides motivation.
Some members are aware of need for improvement.
Being average not good enough.
Stockholder demands for change. Driving Forces for Change
(part 2 of 5) Quadrant 2
Minor change, high impact on culture.
Some resistance can be expected. Change Model (part 3 of 5) Quadrant 1
Minor change, low impact on culture.
Resistance at lowest level.
Success most probable. Change Model (part 2 of 5) Standards of performance developed.
Designed to measure:
Degree of change and
Impact on organization. Evaluation on Culture Greater chance of success if:
Change is gradual.
Longer time frame.
Some organizations only chance for survival depends on:
Introduced swiftly. Time Frame Is change minor or major?
The greater the change, the more difficult to implement. Degree of Change Figure 6.1
Change Factors Phase 5.
Resisters to change are as few and as alienated as were advocates in first phase. Life Cycle of Resistance to Change (part 5 of 5) Phase 3: Direct Conflict.
Direct conflict and showdown between forces.
This phase probably means life or death to change. Life Cycle of Resistance to Change (part 3 of 5) Set patterns of behavior.
Defined relationships with others.
Work procedures and job skills. Changes on Personal Level Organizations need capacity to adapt quickly.
People focus of most serious challenges.
Large scale changes incur significant problems and challenges. Change and Reinvent (part 2 of 2) Many organizations being forced to change radically.
Organizations face major challenge in managing change. Change and Reinvent (part 1 of 2) Identify forces that cause resistance to change.
Recognize strategies that can increase motivation to change.
Diagnose forces driving and resisting organization change.
Experience reactions to a change situation. Learning Objectives Impact on culture.
Evaluation of change. Advocates of change.
Degree of change.
Time frame. Leading Change: Major Factors Affecting Success of Change Read Chapter 8.
Prepare for OD Skills Simulation 8.1.
Prior to class, form teams of seven and assign roles.
Complete Step 1. Preparations for Next Chapter
(part 1 of 2) Structural strategies.
Alters framework that relates elements of organization to one another.
Changes in machinery, methods, automation, and job design.
Teams and their meetings occur electronically over telecommunications lines.
Need for face-to-face meetings reduced. Parkinson’s laws.
Summarizes problems of inefficient practices in organizations.
Indirect consequences that result from a change action.
A method that plots interventions over time. Behavioral strategies.
Places emphasis on human resources.
Actions designed to improve health of client system.
A plan for change using structural, technical, and behavioral methods. Key Words and Concepts Corporate headquarters has undergone change.
Executives have open offices.
Division presidents’ offices moved closer to their teams.
Changes made without alienating employees. Key part of strategy is:
Focus on building strong brands,
That sell at premium prices.
With major recession, strategy was changed:
Offer more lower priced products.
But continue to:
Develop new products.
Innovate engineering and manufacturing technology.
Understand the consumer. P&G one of largest consumer product companies in world.
Culture is well established.
Over 170 years old.
Chairman of board spends time communicating vision to employees. OD Application
Changing P&G Table 8.1
OD Interventions: An Overview (part 1 of 2) Interventions are a range of actions.
Specific means, activities, and programs that can make change happen.
Practitioner and client consider:
Potential results of technique.
Potential implementation of technique including costs versus benefit.
Potential acceptance of technique. Selecting an OD Intervention Figure 7.5
Stream Analysis Chart Useful in planning.
Helps organization plan interventions.
Provides graphical view of changes.
Allows progress to be plotted. Stream Analysis Integration of Strategies (part 2 of 2) Change strategies consider overt and covert elements.
Second-order consequences consider change in one area that influences other areas. OD deals with integrated change that considers:
Interdependence of subelements (departments) needs to be considered. Integration of Strategies (part 1 of 2) Emphasizes better utilization of human resources by improving:
Commitment of members.
OD traditionally associated with behavioral strategies. Behavioral Approach to Change Structural.
Behavioral. Basic Strategies to Change Identify and understand:
Range of major OD intervention techniques.
How they can be applied.
Identify ways interpersonal, team, and intergroup techniques fit into OD program.
Understand change strategies. Learning Objectives Read and complete Steps 1 and 2 of OD Skills Simulation 8.2.
Read and prepare for Step 1 of OD Skills Simulation 8.3.
Read and analyze Case: The OD Letters. Preparations for Next Chapter (part 1 of 2) Purpose.
To determine an appropriate intervention strategy.
To experience diagnosing and contacting a client system.
To provide feedback on practitioner approaches. OD Skills Simulation 7.1
The Franklin Company Table 8.1
OD Interventions: An Overview (part 2 of 2) Intervention techniques focus on 4 categories:
Individual or interpersonal level.
Team or group level.
Total organizational system level. Major Intervention Techniques Figure 7.3
Integrated Approach to Change Structural, technological, and behavioral strategies not OD change strategies per se.
Determining feature of OD strategy is process used to arrive at strategy. Integration of Strategies Changes in machinery, methods, automation, and job design.
Brings organization to state of art.
Help companies become more productive. Technical Approach to Change Relates elements of organization to one another.
Removes or adds layers to hierarchy.
Downsizing associated with restructuring.
Changes can involve decentralization and centralization. Structural Approach to Change Starting point for change program is definition of a total change strategy.
OD strategy is:
A plan for integrating different activities to accomplish objectives.
Developing strategy includes:
Planning activities to resolve difficulties, build on strengths. Organizational Change Figure 7.1
Stage 4 of OD’s 5 Stages OD Intervention Strategies Figure 7.4
“Organization Iceberg” Approach to OD Group building and maintenance functions.
Helps group grow and improve members’ relationships.
Decision made by group that all members can support.
Task or what a group does. Leadership and management methods
Used since first theme park in 1950s.
Leaders are inclusive and share information with employees.
Leaders spend majority of time “walking the front.”
This means working frontline shifts in operating areas . Member roles.
Functions that individual members play in a group.
Shared ideas regarding what group members should do and feel.
How group is accomplishing its task. Group process.
How group goes about accomplishing task.
Group task functions.
Behaviors that directly help group solve its task.
Behaviors that satisfy individual needs and inconsequential to group’s task. Results of leadership improvement programs:
Guest rate increase greater than 10%.
Cast member turnover rates dropped.
Disney Institute is where methods shared with other organizations.
Leadership methods have helped shape Disney’s culture. Disney has deeply rooted culture.
Philosophy of theme parks is:
Actions of leaders inspires and motivates everyone,
With whom they come in contact. OD Applications
Leaders Shape Disney Culture Provides feedback on group process.
Limited to extent that group is able to accept feedback. Feeding Back Observations Gives assistance to group or individual on behaviors to improve.
Encourages members to talk and express ideas.
Compliments group for productive meeting. Providing Support, Coaching, and Counseling Communicates back to speaker feeling part of message.
Listener practices empathy.
“Shannon, am I correct in assuming you have a problem with what Murphy has just reported?” Reflecting Feelings Seeks more information and asks questions.
Useful at beginning of discussion if members reaching hasty conclusions.
“Larisa, I’m not sure everyone understands your point. Could you explain it in more detail?” Probing and Questioning Purpose is to resolve misunderstandings.
Provides a summary of major points.
Helps group to understand where it is.
“Mary, I seem to be hearing you say…. Is this correct?” Clarifying and Summarizing Assisting group in understanding:
Its norms and
How they affect decision making.
Group will improve decision making as members grow. Group Norms and Growth Helping group understand how it makes decisions.
Group consensus is:
One all members share in making and will support. Group Problem Solving and
Decision Making Table 8.1
Group Behavior Interventions Communication.
Member roles and functions in groups.
Group problem-solving and decision-making.
Group norms and growth.
Leadership and authority. Five Areas Crucial to Effective Organization Performance Process interventions concentrates on:
How groups and individuals within groups behave.
Process is the how of the group.
How it functions.
Content is the what of the group.
The work it does. Group Process The manager helps team learn to diagnose and solve their problems.
Team becomes more independent. Process Intervention Skills Complete Steps 1 and 2 of OD Skills Simulation 9.3.
Read and analyze Case: The Sundale Club. Preparations for Next Chapter
(part 2 of 2) Read Chapter 9.
Prepare for OD Skills Simulation 9.1.
Prior to class, form teams of six or more and assign roles.
Complete Step 1. Preparations for Next Chapter
(part 1 of 2) Purpose.
To provide you with additional practice making OD interventions.
As an observer, to observe the intervention process. OD Skills Simulation 8.3
Process Interventions Purpose.
To provide comparison between your perceptions of trust behavior and
How others perceive it. OD Skills Simulation 8.2
Trust Building Purpose.
To examine behaviors that facilitate and inhibit group functioning.
To identify the functions and roles of group members.
To explore group processes. OD Skills Simulation 8.1
Apex Oil Spill Agenda setting interventions.
Sets aside time when process issues discussed.
Listener tries to see world from speaker’s point of view. Key Words and Concepts Little empirical evidence on success of process interventions.
Some findings suggest positive effects on participants.
Relied upon by OD practitioners.
Increasingly used by line managers in daily operations. Results of Process Interventions Sets aside time to discuss process issues apart from content issues.
May include how well members communicate with each other. Setting the Agenda Learning to give process observations.
By observing someone else making process observations.
Members encouraged to take role of providing process interventions. Modeling Communicates nonverbally that one is listening.
Uses eye contact and body posture.
Hears entire message including feelings.
Eye contact, nod of head, body posture. Listening Puts several points together in common theme.
Takes ideas of one person and attaches them to group.
“Am I correct in assuming the rest of you share Irwin’s position?” Synthesizing and Generalizing Process interventions differ but never involve the group’s task.
Concern is how group goes about accomplishing its task. Types of Process Interventions Group understands impact of leadership and authority.
Roles of formal and informal leaders clarified.
Leadership functions shared among group members. Leadership and Authority Observing roles and functions of members.
Roles divided into 3 categories:
Group building and maintenance.
Individual. Member Roles and Functions Analyzing communication process within group.
Length of time member talks.
Who talks to whom.
Who interrupts whom. Communications Figure 8.1
Group Process Interventions Process intervention is OD practitioner skill.
Used for helping work groups become more effective.
Helps work group to understand way it operates. Process Interventions (part 1 of 2) Change occurring in leadership styles.
Because of importance of teams.
Organizations relying more on team approach.
Managers need new skills.
Understanding group and team behavior needed. New Paradigm in Organizations Understand key OD process skills.
Determine how they can be applied.
Practice using OD process skills.
Identify and gain insights into your OD style. Learning Objectives Providing Support.
Setting the Agenda.
Structural Suggestions. Clarifying.
Reflecting Feelings. Types of Process Interventions Provides suggestions on: Allocation of work.
Lines of authority. Group membership.
Communication patterns. Manager avoids stepping in and taking over. Structural Suggestions