Chapter 1

Organization Development and

Reinventing the Organization

An Experiential Approach to Organization Development 8 th edition Chapter 1

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall Slide 1
 Learning Objectives
Define OD and recognize need for
change.
Describe culture and understand its
impact.
Understand the psychological contract.
Describe five stages of OD.
An Experiential Approach to Organization Development 8 th edition Chapter 1
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 Challenges for Organizations
Change avalanching down on us.
Tomorrows world different from todays.
Organizations need to adapt to change.
Organizations in continuous interaction
with external forces.

An Experiential Approach to Organization Development 8 th edition Chapter 1

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 Figure 1.1
The Organizational Environment

An Experiential Approach to Organization Development 8 th edition Chapter 1

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 What Is OD?
Long-range efforts and programs.
Aimed at improving organizations ability
to survive.
OD changes problem-solving and
renewal processes.

An Experiential Approach to Organization Development 8 th edition Chapter 1

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 OD Is:
Planned.
Organization wide.
Managed from top.
Increases organization effectiveness.
Planned interventions.
Uses behavioral science knowledge.

An Experiential Approach to Organization Development 8 th edition Chapter 1

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 The Characteristics of OD
Planned change.
Collaborative approach.
Improve performance.
Humanistic values.
Systems approach.
Scientific approaches.

An Experiential Approach to Organization Development 8 th edition Chapter 1

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 Table 1.1
Major Characteristics of the Field of OD

An Experiential Approach to Organization Development 8 th edition Chapter 1

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 Why OD?
Most cited reasons for beginning change
program:
The level of competition.
Survival.
Improved performance.

An Experiential Approach to Organization Development 8 th edition Chapter 1

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 Primary Goals of
Change Programs
Change the corporate culture.
Become more adaptive.
Increase competitiveness.

An Experiential Approach to Organization Development 8 th 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.

An Experiential Approach to Organization Development 8 th edition Chapter 1

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

An Experiential Approach to Organization Development 8 th edition Chapter 1

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 Successful Firms
Share These Traits
Faster.
Quality conscious.
Employee involvement.
Customer oriented.
Smaller.

An Experiential Approach to Organization Development 8 th edition Chapter 1

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 Figure 1.2
Changing Organization of Twenty-First Century

An Experiential Approach to Organization Development 8 th edition Chapter 1

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 Evolution of OD
Evolved since the late 1940s.
NTL Laboratory-Training methods.
Survey research and feedback.

An Experiential Approach to Organization Development 8 th edition Chapter 1

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 Who Does OD? (part 1 of 3)
OD practitioners consist of:
Specialists.
Those applying OD in daily work.

An Experiential Approach to Organization Development 8 th edition Chapter 1

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 Who Does OD? (part 2 of 3)
OD specialists are:
Internal practitioners from within the
organization.
External practitioners from outside the
organization.
Managers apply OD principles and
concepts.

An Experiential Approach to Organization Development 8 th edition Chapter 1

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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.

An Experiential Approach to Organization Development 8 th edition Chapter 1

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 Organization Culture
A system of shared meanings including::

Language. Feelings.
Dress. Attitudes.
Patterns of Interactions.
behavior. Group norms.
Value system.

An Experiential Approach to Organization Development 8 th edition Chapter 1

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 Norms
Organized and shared ideas.
What members should do and feel.
How behavior is regulated.

An Experiential Approach to Organization Development 8 th edition Chapter 1

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 Types of Norms
Pivotal norms.
Essential to accomplishing organizations
objectives.
Peripheral norms.
Support and contribute to pivotal norms.
Not essential to organizations objectives.

An Experiential Approach to Organization Development 8 th edition Chapter 1

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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, sanctions.

An Experiential Approach to Organization Development 8 th edition Chapter 1

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 Figure 1.4
The Socialization Process

An Experiential Approach to Organization Development 8 th edition Chapter 1

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Adjustment to Cultural Norms
Rebellion.
Rejection of all values and norms.
Conformity.
Acceptance of all values and norms.
Creative individualism.
Acceptance of pivotal values.
Rejection of others.

An Experiential Approach to Organization Development 8 th edition Chapter 1

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 Figure 1.5
Basic Responses to Socialization

An Experiential Approach to Organization Development 8 th edition Chapter 1

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 Psychological Contract
Unwritten agreement between
individuals and organization.
Open-ended so issues may be
renegotiated.

An Experiential Approach to Organization Development 8 th edition Chapter 1

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 A Model for Change
OD is continuing process.
Emphasis on viewing organization as
total system.
System consists of interacting and
interrelated elements.

An Experiential Approach to Organization Development 8 th edition Chapter 1

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 Figure 1.6
Organization Developments Five Stages

An Experiential Approach to Organization Development 8 th edition Chapter 1

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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.
Must be felt need for change.

An Experiential Approach to Organization Development 8 th edition Chapter 1

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 Five-stage Model for OD
Process (part 2 of 5)
Stage Two
Develop Practitioner-Client Relationship.
Practitioner enters system.
Good first impressions important.
Practitioner establishes trust and open
communication.

An Experiential Approach to Organization Development 8 th 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.
Objective to:
Understand clients problems.
Identify causes.
Select change strategies.
An Experiential Approach to Organization Development 8 th 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.

An Experiential Approach to Organization Development 8 th 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 program stabilizes, need for
practitioner decreases.
Monitor results.
Stabilize change.
Gradual disengagement of practitioner.
An Experiential Approach to Organization Development 8 th edition Chapter 1
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