Chapter 1
Organization Development and
Reinventing the Organization
An Experiential Approach to Organization Development 8 th 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.
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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.
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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 organization’s ability
to survive.
• OD changes problem-solving and
renewal processes.
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OD Is:
• Planned.
• Organization wide.
• Managed from top.
• Increases organization effectiveness.
• Planned interventions.
• Uses behavioral science knowledge.
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The Characteristics of OD
• Planned change.
• Collaborative approach.
• Improve performance.
• Humanistic values.
• Systems approach.
• Scientific approaches.
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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.
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Primary Goals of
Change Programs
• Change the corporate culture.
• Become more adaptive.
• Increase competitiveness.
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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
• Change is a moving target.
• Today's managers need new mind-set.
• Flexibility.
• Speed.
• Innovation.
• Constantly changing conditions.
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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.
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Who Does OD? (part 1 of 3)
• OD practitioners consist of:
– Specialists.
– Those applying OD in daily work.
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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.
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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.
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Organization Culture
A system of shared meanings including::
• Language. • Feelings.
• Dress. • Attitudes.
• Patterns of • Interactions.
behavior. • Group norms.
• Value system.
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Norms
• Organized and shared ideas.
• What members should do and feel.
• How behavior is regulated.
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Types of Norms
• Pivotal norms.
– Essential to accomplishing organization’s
objectives.
• Peripheral norms.
– Support and contribute to pivotal norms.
– 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, sanctions.
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Figure 1.4
The Socialization Process
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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.
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Figure 1.5
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.
• Emphasis on viewing organization as
total system.
• System consists of interacting and
interrelated elements.
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Figure 1.6
Organization Development’s 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.
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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.
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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 client’s problems.
– Identify causes.
– Select change strategies.
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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.
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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.
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OD Application
GE’s Epicenter of Change
• Leadership Center is tool to spread
change.
• OD, leadership, and innovation are
applied to real-world.
• Participants include entry-level to
highest positions.
• Customers invited to help solve mutual
problems.
An Experiential Approach to Organization Development 8 th edition Chapter 1
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• Subjects include leadership and
management skills.
• Executive courses are in leadership and
strategy.
• Participants are 50% non-U.S.
• New centers have opened outside of
U.S.
• GE believes strong leaders are
imperative.
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OD Application
Leave No One Behind At
Starbucks
• Starbucks’ unique culture instrumental
in success.
• Challenge is maintaining “formula” that
made them successful.
• CEO communicates strong vision to
employees.
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• “Leave no one behind” shows up in
training and salaries.
• Starbucks wants self-motivated team
players.
• Major objective is maintaining
entrepreneurial spirit.
An Experiential Approach to Organization Development 8 th edition Chapter 1
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An Experiential Approach to Organization Development 8 th edition Chapter 1
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