Od Intervention


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Od Intervention

  1. 1. Chapter 8 OD Intervention Strategies L.DINESH MBA Chapter 8 Slide
  2. 2. Learning Objectives <ul><li>Identify and understand range of major OD intervention techniques and how they can be applied. </li></ul><ul><li>Identify ways interpersonal, team, and intergroup techniques fit into OD program. </li></ul><ul><li>Understand the change strategies. </li></ul>L.DINESH MBA Chapter 8 Slide
  3. 3. Leading Change at P&G (part 1 of 3) <ul><li>P&G CEO Lafley makes changes that began with previous CEO in the 1990s. </li></ul><ul><li>Significant changes made on structural lines. </li></ul><ul><li>Previous CEO, Jager, made changes using combative style. </li></ul>L.DINESH MBA Chapter 8 Slide
  4. 4. Leading Change at P&G (part 2 of 3) <ul><li>Corporate headquarters undergoing change. </li></ul><ul><li>Executives have open offices. </li></ul><ul><li>Division presidents’ offices located with their teams. </li></ul><ul><li>Changes made without alienating employees. </li></ul>L.DINESH MBA Chapter 8 Slide
  5. 5. Leading Change at P&G (part 3 of 3) <ul><li>Why did one CEO succeed in making changes while another failed? </li></ul><ul><ul><li>Jager gruff and Lafley soothing. </li></ul></ul><ul><ul><li>Jager bullied and Lafley persuades. </li></ul></ul><ul><li>Lafley says of change: “…we are in the business of leading change.” </li></ul>L.DINESH MBA Chapter 8 Slide
  6. 6. Organizational Change <ul><li>Starting point for setting change program is definition of total change strategy. </li></ul><ul><li>OD strategy is a plan for integrating different activities to accomplish objectives. </li></ul>L.DINESH MBA Chapter 8 Slide
  7. 7. Three Basic Approaches to Organization Change <ul><li>Structural </li></ul><ul><li>Technical </li></ul><ul><li>Behavioral </li></ul><ul><li>Developing strategy includes planning activities to resolve difficulties and build on strengths. </li></ul>L.DINESH MBA Chapter 8 Slide
  8. 8. Structural Approach to Change <ul><li>Changes that relate elements of organization to one another. </li></ul><ul><li>Includes removing or adding layers to hierarchy. </li></ul><ul><li>Downsizing associated with restructuring. </li></ul><ul><li>Changes can involve decentralization and centralization. </li></ul>L.DINESH MBA Chapter 8 Slide
  9. 9. Technical Approach to Change <ul><li>Changes in machinery, methods, automation, and job design. </li></ul><ul><li>Changes help companies become more productive. </li></ul>L.DINESH MBA Chapter 8 Slide
  10. 10. Behavioral Approach to Change <ul><li>Emphasizes better utilization of human resources by improving: </li></ul><ul><ul><li>Morale. </li></ul></ul><ul><ul><li>Motivation. </li></ul></ul><ul><ul><li>Commitment of members. </li></ul></ul><ul><li>OD traditionally associated with behavioral strategies. </li></ul>L.DINESH MBA Chapter 8 Slide
  11. 11. Changes Require All Strategies <ul><li>Structural, technological, and behavioral strategies not OD change strategies per se. </li></ul><ul><li>Determining feature of an OD strategy is process used to arrive at strategy. </li></ul>L.DINESH MBA Chapter 8 Slide
  12. 12. Our Changing World: Japan Tries to Restructure (part 1 of 2) <ul><li>In 1980s Japanese companies model to world. </li></ul><ul><li>Recently, Japanese companies failed to respond to changing world. </li></ul><ul><li>Nissan first company to close major factory in Japanese auto-industry. </li></ul>L.DINESH MBA Chapter 8 Slide
  13. 13. Our Changing World: Japan Tries to Restructure (part 2 of 2) <ul><li>Nissan failing when Renault took control. </li></ul><ul><li>Ghosn brought in to turn company around. </li></ul><ul><li>Shut down 5 plants, reduced workforce by 23,000, shifted production to U.S. </li></ul><ul><li>Most experts say do not count Japan out. </li></ul><ul><li>A viable Japan may emerge. </li></ul>L.DINESH MBA Chapter 8 Slide
  14. 14. Integration of Change Strategies (part 1 of 2) <ul><li>OD deals with change from integrated standpoint that considers: </li></ul><ul><li>Structure Technology Behavior </li></ul><ul><li>Interdependence of subelements (departments) needs to be considered. </li></ul>L.DINESH MBA Chapter 8 Slide
  15. 15. Figure 8.1 Integrated Approach to Change L.DINESH MBA Chapter 8 Slide
  16. 16. Integration of Change Strategies (part 2 of 2) <ul><li>Change strategies need to take account of overt and covert elements. </li></ul><ul><li>Second-order consequences consider change in one area that influences others. </li></ul>L.DINESH MBA Chapter 8 Slide
  17. 17. Figure 8.2 “Organization Iceberg” Approach to OD L.DINESH MBA Chapter 8 Slide
  18. 18. Stream Analysis <ul><li>Useful in planning. </li></ul><ul><li>Helps organization plan interventions. </li></ul><ul><li>Provides graphical view of changes. </li></ul><ul><li>Allows progress to be plotted. </li></ul>L.DINESH MBA Chapter 8 Slide
  19. 19. Figure 8.3 Stream Analysis Chart L.DINESH MBA Chapter 8 Slide
  20. 20. Selecting an OD Intervention <ul><li>Practitioner and client consider: </li></ul><ul><li>Potential results of technique. </li></ul><ul><li>Potential implementation of technique including costs versus benefit. </li></ul><ul><li>Potential acceptance of technique. </li></ul>L.DINESH MBA Chapter 8 Slide
  21. 21. OD in Practice: Is It a Kindler, Gentler Microsoft? (part 1 of 3) <ul><li>Changes at Microsoft initiated at top. </li></ul><ul><li>Gates stepped down as CEO and appointed Ballmer CEO and president. </li></ul><ul><li>Both wanted to reinvent Microsoft. </li></ul><ul><li>Microsoft restructured to be responsive to customers. </li></ul>L.DINESH MBA Chapter 8 Slide
  22. 22. OD in Practice (part 2 of 3) <ul><li>Executives given power to run units with less supervision. </li></ul><ul><li>Ballmer encouraging everyone to rethink the way they do their jobs. </li></ul><ul><li>Ballmer wants people to be respectful to others. </li></ul>L.DINESH MBA Chapter 8 Slide
  23. 23. OD in Practice (part 3 of 3) <ul><li>He wants managers to work collaboratively. </li></ul><ul><li>Collaboration may produce complacency and stifle innovation. </li></ul><ul><li>Ballmer has history of humiliating executives that may discourage real change. </li></ul>L.DINESH MBA Chapter 8 Slide
  24. 24. Overview of Major OD Intervention Techniques <ul><li>Intervention techniques focus on 4 categories: </li></ul><ul><li>Individual or interpersonal level. </li></ul><ul><li>Team or group level. </li></ul><ul><li>Intergroup level. </li></ul><ul><li>Total organizational system level. </li></ul>L.DINESH MBA Chapter 8 Slide
  25. 25. Table 8.1 OD Interventions: An Overview (part 1 of 2) L.DINESH MBA Chapter 8 Slide
  26. 26. Table 8.1 OD Interventions: An Overview (part 2 of 2) L.DINESH MBA Chapter 8 Slide
  27. 27. Key Words and Concepts <ul><li>Behavioral strategies - places emphasis on human resources. </li></ul><ul><li>OD intervention - actions designed to improve the health of the client system. </li></ul><ul><li>OD strategy - a plan for change using structural, technical, and behavioral methods. </li></ul>L.DINESH MBA Chapter 8 Slide
  28. 28. <ul><li>Parkinson’s Laws - summarizes the problems of inefficient practices in organizations. </li></ul><ul><li>Second-order consequences - indirect consequences that result from change. </li></ul><ul><li>Stream analysis - method useful in planning that plots interventions over period of time. </li></ul>L.DINESH MBA Chapter 8 Slide
  29. 29. <ul><li>Structural strategies - alters framework that relates parts of organization to one another. </li></ul><ul><li>Technological strategies - changes in machinery, methods, and job design. </li></ul><ul><li>Virtual meetings - meetings that occur electronically over telecommunications lines and Internet. </li></ul>L.DINESH MBA Chapter 8 Slide
  30. 30. Preparations for Next Chapter <ul><li>Read Chapter 9. </li></ul><ul><li>Complete Step 1 of OD Skills Simulation 9.1. </li></ul><ul><li>Simulation 9.3, complete Steps 1 and 2. </li></ul><ul><li>Read and analyze Case: The Sundale Club. </li></ul>L.DINESH MBA Chapter 8 Slide