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

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Presentation on theme: "An Experiential Approach to Organization Development 7 th edition Chapter 1 Slide 1 Chapter 1 Organization Development and Reinventing the Organization."— Presentation transcript:

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

2 An Experiential Approach to Organization Development 7 th edition Chapter 1 Slide 2 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 7 th edition Chapter 1 Slide 3 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 7 th edition Chapter 1 Slide 4 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 7 th edition Chapter 1 Slide 5 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 7 th edition Chapter 1 Slide 6 Figure 1.1 The Organizational Environment

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

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

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

11 An Experiential Approach to Organization Development 7 th edition Chapter 1 Slide 11 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 7 th edition Chapter 1 Slide 12 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 7 th edition Chapter 1 Slide 13 Why OD? Most cited reasons for beginning change program:  The level of competition.  Survival.  Improved performance.

14 An Experiential Approach to Organization Development 7 th edition Chapter 1 Slide 14 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 7 th edition Chapter 1 Slide 15 Table 1.2 Major Goals of Large-Scale Change Programs

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

17 An Experiential Approach to Organization Development 7 th edition Chapter 1 Slide 17 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 7 th edition Chapter 1 Slide 18 Successful Firms Share These Traits  Faster.  Quality conscious.  Employee involvement.  Customer oriented.  Smaller.

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

20 An Experiential Approach to Organization Development 7 th edition Chapter 1 Slide 20 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 7 th edition Chapter 1 Slide 21 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 7 th edition Chapter 1 Slide 22 Evolution of OD Evolved since the late 1940s. NTL Laboratory-Training methods. Survey research and feedback.

23 An Experiential Approach to Organization Development 7 th edition Chapter 1 Slide 23 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 7 th edition Chapter 1 Slide 24 Who Does OD? (part 2 of 3) OD specialists: Internal practitioners – from within organization. External practitioners – from outside organization.

25 An Experiential Approach to Organization Development 7 th edition Chapter 1 Slide 25 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 7 th edition Chapter 1 Slide 26 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 7 th edition Chapter 1 Slide 27 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 7 th edition Chapter 1 Slide 28 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.

29 An Experiential Approach to Organization Development 7 th edition Chapter 1 Slide 29 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 7 th edition Chapter 1 Slide 30 Figure 1.3 The Socialization Process

31 An Experiential Approach to Organization Development 7 th edition Chapter 1 Slide 31 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 7 th edition Chapter 1 Slide 32 Figure 1.4 Basic Responses to Socialization

33 An Experiential Approach to Organization Development 7 th edition Chapter 1 Slide 33 Psychological Contract Unwritten agreement between individuals and organization. Open-ended so issues may be renegotiated.

34 An Experiential Approach to Organization Development 7 th edition Chapter 1 Slide 34 A Model for Change OD is continuing process with emphasis on viewing organization as total system of interacting and interrelated elements.

35 An Experiential Approach to Organization Development 7 th edition Chapter 1 Slide 35 Figure 1.5 Organization Development’s Five Stages

36 An Experiential Approach to Organization Development 7 th edition Chapter 1 Slide 36 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 7 th edition Chapter 1 Slide 37 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 7 th edition Chapter 1 Slide 38 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 7 th edition Chapter 1 Slide 39 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 7 th edition Chapter 1 Slide 40 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 7 th edition Chapter 1 Slide 41 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 7 th edition Chapter 1 Slide 42  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 7 th edition Chapter 1 Slide 43  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 7 th edition Chapter 1 Slide 44  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 7 th edition Chapter 1 Slide 45  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 7 th edition Chapter 1 Slide 46  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 7 th edition Chapter 1 Slide 47 Preparations for Next Chapter  Read Chapter 2.  Read instructions for Simulation 2.1.  Read and prepare analysis for Case: The NoGo Railroad.


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