An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 1 Chapter 8 OD Intervention Strategies

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 2 Learning Objectives  Identify and understand range of major OD intervention techniques and how they can be applied.  Identify ways interpersonal, team, and intergroup techniques fit into OD program.  Understand the change strategies.

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 3 Leading Change at P&G (part 1 of 3) P&G CEO Lafley makes changes that began with previous CEO in the 1990s. Significant changes made on structural lines. Previous CEO, Jager, made changes using combative style.

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 4 Leading Change at P&G (part 2 of 3) Corporate headquarters undergoing change. Executives have open offices. Division presidents’ offices located with their teams. Changes made without alienating employees.

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 5 Leading Change at P&G (part 3 of 3) Why did one CEO succeed in making changes while another failed? Jager gruff and Lafley soothing. Jager bullied and Lafley persuades. Lafley says of change: “…we are in the business of leading change.”

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 6 Organizational Change Starting point for setting change program is definition of total change strategy. OD strategy is a plan for integrating different activities to accomplish objectives.

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 7 Three Basic Approaches to Organization Change 1. Structural 2. Technical 3. Behavioral Developing strategy includes planning activities to resolve difficulties and build on strengths.

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 8 Structural Approach to Change Changes that relate elements of organization to one another. Includes removing or adding layers to hierarchy. Downsizing associated with restructuring. Changes can involve decentralization and centralization.

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 9 Technical Approach to Change Changes in machinery, methods, automation, and job design. Changes help companies become more productive.

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 10 Behavioral Approach to Change Emphasizes better utilization of human resources by improving: Morale. Motivation. Commitment of members. OD traditionally associated with behavioral strategies.

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 11 Changes Require All Strategies Structural, technological, and behavioral strategies not OD change strategies per se. Determining feature of an OD strategy is process used to arrive at strategy.

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 12 Our Changing World: Japan Tries to Restructure (part 1 of 2) In 1980s Japanese companies model to world. Recently, Japanese companies failed to respond to changing world. Nissan first company to close major factory in Japanese auto-industry.

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 13 Our Changing World: Japan Tries to Restructure (part 2 of 2) Nissan failing when Renault took control. Ghosn brought in to turn company around. Shut down 5 plants, reduced workforce by 23,000, shifted production to U.S. Most experts say do not count Japan out. A viable Japan may emerge.

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 14 Integration of Change Strategies (part 1 of 2) OD deals with change from integrated standpoint that considers: Structure Technology Behavior Interdependence of subelements (departments) needs to be considered.

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 15 Figure 8.1 Integrated Approach to Change

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 16 Integration of Change Strategies (part 2 of 2) Change strategies need to take account of overt and covert elements. Second-order consequences consider change in one area that influences others.

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 17 Figure 8.2 “Organization Iceberg” Approach to OD

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 18 Stream Analysis Useful in planning. Helps organization plan interventions. Provides graphical view of changes. Allows progress to be plotted.

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 19 Figure 8.3 Stream Analysis Chart

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 20 Selecting an OD Intervention Practitioner and client consider:  Potential results of technique.  Potential implementation of technique including costs versus benefit.  Potential acceptance of technique.

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 21 OD in Practice: Is It a Kindler, Gentler Microsoft? (part 1 of 3) Changes at Microsoft initiated at top. Gates stepped down as CEO and appointed Ballmer CEO and president. Both wanted to reinvent Microsoft. Microsoft restructured to be responsive to customers.

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 22 OD in Practice (part 2 of 3) Executives given power to run units with less supervision. Ballmer encouraging everyone to rethink the way they do their jobs. Ballmer wants people to be respectful to others.

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 23 OD in Practice (part 3 of 3) He wants managers to work collaboratively. Collaboration may produce complacency and stifle innovation. Ballmer has history of humiliating executives that may discourage real change.

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 24 Overview of Major OD Intervention Techniques Intervention techniques focus on 4 categories: 1. Individual or interpersonal level. 2. Team or group level. 3. Intergroup level. 4. Total organizational system level.

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 25 Table 8.1 OD Interventions: An Overview (part 1 of 2)

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 26 Table 8.1 OD Interventions: An Overview (part 2 of 2)

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 27 Key Words and Concepts  Behavioral strategies - places emphasis on human resources.  OD intervention - actions designed to improve the health of the client system.  OD strategy - a plan for change using structural, technical, and behavioral methods.

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 28  Parkinson’s Laws - summarizes the problems of inefficient practices in organizations.  Second-order consequences - indirect consequences that result from change.  Stream analysis - method useful in planning that plots interventions over period of time.

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 29  Structural strategies - alters framework that relates parts of organization to one another.  Technological strategies - changes in machinery, methods, and job design.  Virtual meetings - meetings that occur electronically over telecommunications lines and Internet.

An Experiential Approach to Organization Development 7 th edition Chapter 8 Slide 30 Preparations for Next Chapter  Read Chapter 9.  Complete Step 1 of OD Skills Simulation 9.1.  Simulation 9.3, complete Steps 1 and 2.  Read and analyze Case: The Sundale Club.