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OD & Reinventing Organization-Final

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5 views34 pages

OD & Reinventing Organization-Final

Uploaded by

Dharshini Suresh
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Organization Development

and Reinventing the


Organization
The Workout: Organization Changes at GE

GE has training center for managers.


Participants said GE was slow to make changes.
Workout is program that came from sessions.
In workout employees take the leadership in bringing
about changes.
GE continues to use workout so it can reinvent itself.
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.
The Organizational Environment
What Is OD?

Long-range efforts and programs aimed at


improving an organization’s ability to survive
by changing problem-solving and renewal
processes.
Burke’s Definition of OD

OD is a planned process of change in an


organization’s culture through the
utilization of behavioral science technology,
research, and theory.
French’s Definition of OD

OD refers to a long-range effort to improve an


organization’s problem-solving capabilities
and its ability to cope with changes in its
external environment with the help of external
or internal behavioral-scientist consultants.
Beckhard’s Definition of OD

OD is an effort (1) planned, (2)


organization-wide, and (3) managed from
the top, to (4) increase organization
effectiveness and health through (5)
planned interventions in the organization’s
“processes,” using behavioral science
knowledge.
Organization Development is...

a systemwide application and transfer of


behavioral science knowledge to the
planned development, improvement,
and reinforcement of the strategies,
structures, and processes that lead to
organization effectiveness.
OD Is:

 Planned.
 Organization wide.
 Managed from top.
 Increases organization effectiveness.
 Planned interventions.
 Uses behavioral science knowledge.
Table 1.1
Major Characteristics of the Field of OD
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.
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.
Why OD?

Most cited reasons for beginning change


program:
 The level of competition.
 Survival.
 Improved performance.
Primary Goals of
Change Programs
Increase productivity.
Increase responsiveness.
Improve competitive position.
Increase employee involvement.
Increase employee morale.
Develop new managerial skills.
Table 1.2
Major Goals of Large-Scale Change Programs
Factors Leading to
Emergence of OD
Need for new organizational forms.
Focus on cultural change.
Increase in social awareness.
The Only Constant Is Change

Today's managers need new mind-set.


Flexibility.
Speed.
Innovation.
Constantly changing conditions.
Successful Organizations Share Following Traits

 Faster.
 Quality conscious.
 Employee involvement.
 Customer oriented.
 Smaller.
Figure 1.2
Changing Organization of Twenty-First Century
OD in Practice: Trilogy Software
Trilogy Software example of shifting organizational structures
Founder-Joe Liemandt.
Specializes in software services to Global 1000 companies, especially in the
automotive, consumer electronics, and insurance agencies.
Clients include Ford Motor Company, Daimler-
Chrysler, Nissan, Goodyear, Prudential, Travelers Insurance, Gateway and IBM.
 Workers are shareholders, managers, and partners.
Biggest worry is not facing down other businesses.
Depends on talented people.
Economy fostering new kinds of practices.
This case shows major element in planned change is planning for organizational
culture.
Evolution of OD

Evolved since the late 1940s.


NTL Laboratory-Training methods.
Survey research and feedback.
Who Does OD?
OD practitioners consist of specialists and those
applying OD in daily work:
 Professionals and specialists trained in OD.
 Managers and leaders applying OD.
OD specialists:
• Internal practitioners – from within organization.
• External practitioners – from outside organization.
Who Does OD?

Activities include:
 Team leaders developing teams.
 Building learning organizations.
 Implementing total quality management.
 Creating boundaryless organizations.
Organization Culture
A system of shared meanings including:
 Dress.
 Patterns of behavior.
 Language.
 Value system.
 Feelings.
 Attitudes.
 Interactions.
 Group norms.
Norms

 Organized and shared ideas of what members should do


and feel.
 How behavior is regulated.
 Pivotal norms - essential to accomplishing organization’s
objectives.
 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.
Adjustment to Cultural Norms and
Socialization Occurs in 3 Ways
Psychological Contract

 Unwritten agreement between individuals and

organization.

 Open-ended so issues may be renegotiated.


Organization Development’s Five Stages
Five-stage Model for OD Process

Stage one: Anticipating need for change.


• Someone recognizes need for change.
• There must be felt need for change.

Stage two: Developing practitioner-client relationship.


• OD practitioner enters system.
• Good first impressions and match important.
• Practitioner establishes trust, open communication, shared
responsibility.
Five-stage Model for OD Process
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.

Stage four: Action plans, strategies, and techniques.


•Series of interventions, activities, or programs aimed at increasing
effectiveness.
•Programs apply OD techniques.

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


•As OD program stabilizes, need for practitioner decreases.
•Monitor results.
•Stabilize change.
•Gradual disengagement of OD practitioner.

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