OD

1. An Experiential Approach to Organization Development 7th edition Chapter 1
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Chapter 1
Organization Development
and Reinventing the
Organization

2. An Experiential Approach to Organization Development 7th edition Chapter 1
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Learning Objectives
 Define OD and recognize need for change.
 Describe culture and understand its impact.
 Understand the psychological contract.
 Describe five stages of OD.

3. An Experiential Approach to Organization Development 7th edition Chapter 1
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The Workout: Organization Changes
at GE (part 1 of 2)
GE has training center for managers.
Participants said GE was slow to make
changes.
Workout is program that came from sessions.

4. An Experiential Approach to Organization Development 7th edition Chapter 1
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The Workout: Organization Changes
at GE (part 2 of 2)
In workout employees take the leadership in
bringing about changes.
GE continues to use workout so it can reinvent
itself.

5. An Experiential Approach to Organization Development 7th edition Chapter 1
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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.

6. An Experiential Approach to Organization Development 7th edition Chapter 1
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Figure 1.1
The Organizational Environment

7. An Experiential Approach to Organization Development 7th edition Chapter 1
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What Is OD?
Long-range efforts and programs aimed at
improving an organization’s ability to survive
by changing problem-solving and renewal
processes.

8. An Experiential Approach to Organization Development 7th edition Chapter 1
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OD Is:
 Planned.
 Organization wide.
 Managed from top.
 Increases organization effectiveness.
 Planned interventions.
 Uses behavioral science knowledge.

9. An Experiential Approach to Organization Development 7th edition Chapter 1
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The Characteristics of OD
Planned change.
Collaborative approach.
Improve performance.
Humanistic values.
Systems approach.
Scientific approaches.

10. An Experiential Approach to Organization Development 7th edition Chapter 1
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Table 1.1
Major Characteristics of the Field of OD

11. An Experiential Approach to Organization Development 7th edition Chapter 1
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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.

12. An Experiential Approach to Organization Development 7th edition Chapter 1
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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.

13. An Experiential Approach to Organization Development 7th edition Chapter 1
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Why OD?
Most cited reasons for beginning change
program:
 The level of competition.
 Survival.
 Improved performance.

14. An Experiential Approach to Organization Development 7th edition Chapter 1
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Primary Goals of
Change Programs
Increase productivity.
Increase responsiveness.
Improve competitive position.
Increase employee involvement.
Increase employee morale.
Develop new managerial skills.

15. An Experiential Approach to Organization Development 7th edition Chapter 1
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Table 1.2
Major Goals of Large-Scale Change Programs

16. An Experiential Approach to Organization Development 7th edition Chapter 1
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Factors Leading to
Emergence of OD
Need for new organizational forms.
Focus on cultural change.
Increase in social awareness.

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

18. An Experiential Approach to Organization Development 7th edition Chapter 1
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Successful Firms
Share These Traits
 Faster.
 Quality conscious.
 Employee involvement.
 Customer oriented.
 Smaller.

19. An Experiential Approach to Organization Development 7th edition Chapter 1
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Figure 1.2
Changing Organization of Twenty-First Century

20. An Experiential Approach to Organization Development 7th edition Chapter 1
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OD in Practice:
Trilogy Software (part 1 of 2)
Trilogy Software example of shifting
organizational structures.
Workers are shareholders, managers, and
partners.
Biggest worry is not facing down other
businesses.

21. An Experiential Approach to Organization Development 7th edition Chapter 1
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OD in Practice:
Trilogy Software (part 2 of 2)
Depends on talented people.
Economy fostering new kinds of practices.
This case shows major element in planned
change is planning for organizational culture.

22. An Experiential Approach to Organization Development 7th edition Chapter 1
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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 and those
applying OD in daily work:
 Professionals and specialists trained in OD.
 Managers and leaders applying OD.

24. An Experiential Approach to Organization Development 7th edition Chapter 1
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Who Does OD? (part 2 of 3)
OD specialists:
• Internal practitioners – from within
organization.
• External practitioners – from outside
organization.

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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.

26. An Experiential Approach to Organization Development 7th edition Chapter 1
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Organization Culture
 Dress.
 Patterns of behavior.
 Language.
 Value system.
 Feelings.
 Attitudes.
 Interactions.
 Group norms.
A system of shared meanings including:

27. An Experiential Approach to Organization Development 7th edition Chapter 1
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Norms (part 1 of 2)
Organized and shared ideas of what members
should do and feel.
How behavior is regulated.

28. An Experiential Approach to Organization Development 7th edition Chapter 1
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Norms (part 2 of 2)
Pivotal norms - essential to accomplishing
organization’s objectives.
Peripheral norms - support and contribute to
pivotal norms but not essential to
organization’s 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,
and sanctions.

30. An Experiential Approach to Organization Development 7th edition Chapter 1
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Figure 1.3
The Socialization Process

31. An Experiential Approach to Organization Development 7th edition Chapter 1
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Adjustment to Cultural Norms and
Socialization Occurs in 3 Ways
1. Rebellion - rejection of all values and norms.
2. Conformity - acceptance of all values and
norms.
3. Creative individualism - acceptance only of
pivotal values; rejection of others.

32. An Experiential Approach to Organization Development 7th edition Chapter 1
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Figure 1.4
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 with emphasis on
viewing organization as total system of
interacting and interrelated elements.

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Figure 1.5
Organization Development’s 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.
• There must be felt need for change.

37. An Experiential Approach to Organization Development 7th edition Chapter 1
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Five-stage Model for OD Process
(part 2 of 5)
Stage two: Developing practitioner-client
relationship.
• OD practitioner enters system.
• Good first impressions and match
important.
• Practitioner establishes trust, open
communication, shared responsibility.

38. An Experiential Approach to Organization Development 7th edition Chapter 1
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Five-stage Model for OD Process
(part 3 of 5)
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.

39. An Experiential Approach to Organization Development 7th edition Chapter 1
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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.

40. An Experiential Approach to Organization Development 7th edition Chapter 1
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Five-stage Model for OD Process
(part 5 of 5)
Stage five: Self-renewal, monitor, and stabilize.
• As OD program stabilizes, need for
practitioner decreases.
• Monitor results.
• Stabilize change.
• Gradual disengagement of OD practitioner.

41. An Experiential Approach to Organization Development 7th edition Chapter 1
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Key Words and Concepts
 Action research model - collecting
information, feeding back to client, developing
and implementing action programs.
 Change leader - person responsible for
change.

42. An Experiential Approach to Organization Development 7th edition Chapter 1
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 Client - person or organization that is being
assisted.
 Creative individualism - questioning of
peripheral norms, accepting of pivotal norms.
 External practitioner - person from outside
organization who serves as resource for
change.

43. An Experiential Approach to Organization Development 7th edition Chapter 1
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 Internal practitioner - internal resource for
change.
 Norms - organized and shared ideas
regarding what members should do and feel,
how behavior should be regulated, and what
sanctions should be applied.

44. An Experiential Approach to Organization Development 7th edition Chapter 1
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 Organization culture - system of shared
meanings, including language, dress, values,
norms of organization.
 Organization development - planned strategy
to bring about change.
 OD practitioner - people using, advocating,
and assisting others to implement OD.

45. An Experiential Approach to Organization Development 7th edition Chapter 1
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 OD specialist - professional who has
specialized and trained in OD and related
areas.
 Peripheral norms - support and contribute to
pivotal norms but not essential to
organization's objectives.

46. An Experiential Approach to Organization Development 7th edition Chapter 1
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 Pivotal norms - essential to organization's
objectives.
 Psychological contract - expectations
between individual and organization.
 Socialization - process of individual adjusting
to organization's culture.

47. An Experiential Approach to Organization Development 7th edition Chapter 1
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Preparations for Next Chapter
 Read Chapter 2.
 Read instructions for Simulation 2.1.
 Read and prepare analysis for Case: The
NoGo Railroad.