v - cummings y worley

8/2/2019 V - Cummings y Worley

http://slidepdf.com/reader/full/v-cummings-y-worley 1/48

Chapter 1

General Introduction to Organization Development

Learning Objectives

1. To provide a definition of Organization Development (OD)

2. To distinguish OD and planned change from other forms of organization change

3. To describe the historical development of OD

Chapter Outline and Lecture Notes

Note: This chapter consists of fairly straightforward descriptions and discussion of key issues in

the history of OD. Depending on the professor’s perspectives, this material can be covered indepth (i.e., if you really want to understand OD today, you have to understand where it came

from) or just discussed briefly (i.e., if you really want to understand OD, you have to practice it).

1. Organization Development Defined

Note: Be sure that students recognize the key words in the definition of OD. That is, be sure to

emphasize systemwide, behavioral science, and organization effectiveness. OD applies to changes inthe strategy, structure, and/or processes of an entire system. It is based on the application and transfer of

behavioral science knowledge and practice. And OD aims to improve organization effectiveness by

managing planned change which involves both the creation and the subsequent reinforcement of that

change. Although OD has grown and matured by adding content issues, it is still known mostly for its

attention to the process of change.

Note: An important opportunity for discussion is to compare the definitions of OD provided bydifferent authors. What differences and similarities do students see in the definitions presented in

Table 1.1?

2. The Growth and Relevance of Organization Development

Note: Change is a fact of life in people, groups, organizations, and society. People at all

organizational levels need to be prepared to recognize the need to initiate, implement, and control

change.

3. A Short History of Organization Development

Note: Each of the stems is an important set of interventions in their own right. For example,there are many consulting firms that specialize in personal growth workshops (Laboratory Stem)

or in survey feedback. But each stem also represents an important part of OD’s past and informs

its practice today.



Laboratory Training Stem

A. Action Research/Survey Feedback Background

B. Normative Background

a. Likert’s Participative Management Program

b. Blake and Mouton’s Grid®C. Productivity and Quality-of-Life-Background

D. Strategic Change Background

Note: Ask students to apply normative assessments to their own experiences using Likert’s and

Blake and Mouton’s frameworks. Discuss the value and limitations of this approach.

4. Evolution in Organization Development

5. Overview of the Book

Note: This book presents the process and practice of organization development in a logical

flow. It is organized into 7 parts that present the field of organization development and its

applications to organizations. Part 1 provides an overview of OD that describes the process of

planned change and those who perform the work. Part 2 describes the process of organizationdevelopment. Parts 3 through 6 present the major interventions used in OD today. Part 4 reviews

technostructural interventions and Part 5 presents human resource management interventions.

Part 6 concerns strategic interventions and Part 7 is concerned with special topics in OD such as

OD in international settings, OD in different kinds of organizations, including educational,

government, family-owned, and health-care agencies and it also examines the future of

organization development.

6. Summary

Note: This chapter introduced OD as a planned change discipline concerned with applying

behavioral science knowledge and practice to help organizations achieve greater effectiveness.

Organizations are faced with rapidly accelerating change, and OD can help them cope with theconsequences of change. The history of OD reveals its five roots: laboratory training, action research

and survey feedback, normative approaches, productivity and quality of work life, and strategic change.

The continued growth in the number and diversity of OD approaches, practitioners, and involved

organizations attests to the health of the discipline and offers a favorable prospect for the future.



Chapter 2

The Nature of Planned Change

Learning Objectives

1. To describe and compare three major perspectives on changing organizations

2. To introduce a General Model of Planned Change that will be used to organize the

material presented in the book

3. To describe how planned change can be adopted to fit different kinds of conditions


1. Theories of Planned Change

Note: The first two models are classic, traditional approaches to OD. The third perspective

represents the latest thinking about planned change and updates the classic perspectives. Thestudent should thoroughly understand the similarities and differences between them.

A. Lewin’s Change Model

B. Action Research ModelC. The Positive Model

D. Comparisons of Change Models

2. General Model of Planned Change

Note: This is an important model. It will help the student organize the upcoming material in the

book. The general model organizes and integrates the previous models into four sets of activities.

These activities have broad applicability to planned change. The general model identifies thesteps an organization moves through when implementing change and specifies the OD activities

needed to effect change. The four sets of activities are:

A. Entering and Contracting

B. Diagnosing

C. Planning and Implementing Change

D. Evaluating and Institutionalizing change

Application 2-1 describes a planned change process at Planned Change at the San Diego County

Regional Airport Authority. This case offers student the opportunity to identify and understand

how each step of planned change is manifested in the application. It also describes how the plan

evolves and adjusts during the transition.

3. Different Types of Planned Change



Note: Although the general model of planned change suggests that OD is a straightforward

process, most OD efforts do not proceed according to a neat timetable or preset sequence of

events. The application of OD in a particular organization or situation requires adjustments in the

process of planned change. This section suggests that three dimensions are particularly important.

How these dimensions can impact the process of planned change should be noted.

A. Magnitude of changeB. Degree of Organization

C. Domestic vs. International Settings

Application 2-2 describes a process of planned change in a situation that is underorganized. That

is, the stakeholders do not regularly interact with one another, and yet each has an interest in

solving a particular problem. Ask students how this situation differs from traditional, formal

organizations and if these kinds of situations are increasing or decreasing in frequency. In fact,

more and more OD is being practiced in underorganized settings. The formation of strategic

alliances is but one topical example.

4. Critique of Planned Change

A. Conceptualization of Planned Change

B. Practice of Planned Change

Note: Critics suggest that current theories and models of planned change are 1) deficient in

knowledge about how the stages of planned change differ across situations, 2) unable to capture

the disorderly and dynamic qualities of change, and 3) searching for better understanding of the

relationship between planned change and organizational performance and effectiveness. Still

others express concern not with the planned change model, but with the qualifications and

activities of OD practitioners.

5. Summary

Theories of planned change describe the activities necessary to modify strategies, structures, and

processes to increase an organization’s effectiveness. The action research model focuses onplanned change as a cyclical process involving joint activities between organization members and

OD practitioners. Planned change theories can be integrated into a general model. Four sets of

activities—entering and contracting, diagnosing, planning and implementing, and evaluating and

institutionalizing—can be used to describe how change is accomplished in organizations. The

general model has broad applicability to planned change. It identifies the steps an organizationtypically moves through to implement change and specifies the OD activities needed to effect

change.



Chapter 3

The Organization Development Practitioner

Learning Objectives

1. To understand the essential character of OD practitioners

2. To understand the necessary competencies required of an effective OD practitioner

3. To understand the roles and ethical conflicts that face OD practitioners


1. Who is the Organization Development Practioner?

Note: It is important, even at this early stage of the course, for students to recognize that OD

practitioners are not just external consultants. Emphasize that most students have already filled achange agent role with their friends, family, co-workers, and so on. An OD practioner is anyone

who is helping a system change using the principles of OD.

2. Competencies of an Effective OD Practitioner

A. Intrapersonal skills

B. Interpersonal skills

C. General consultation skills

D. Organization development theory

3. The Professional OD Practioner

A. Role of OD Professionals

1. Position2. Marginality

3. Emotional demands

4. Use of knowledge and experience

Application 3-1: This application provides students with accounts of the personal views of the

internal and external consulting positions. Students can compare and contrast the two viewpoints

of the OD practitioners to identify how the differences in these two types of settings affect the

OD professional.

B. Careers of OD Professionals

4. Professional Values

Note: The values traditionally underlying OD interventions have been associated with humanistic

psychology. Students should be pressed to determine whether or not their own values are aligned

with these traditional values. If not, where do their values stray from the traditional humanistic



ones and what do they see as the change? Do they believe that they can be an instrument of

change if their own values are more materialistic or achievement oriented? Why do they want to

become agents of change?

5. Professional Ethics

A. Ethical GuidelinesB. Ethical Dilemmas

1. Misrepresentation

2. Misuse of data3. Coercion

4. Value and goal conflict

5. Technical ineptness

Note: An effective teaching tool is to place students in ambiguous situations and see how they

respond. For example, have they ever “stolen” pens or other office supplies from an employer,

padded an expense account, and so on? How far do they have to be pushed before they feel they

are crossing some “ethical boundary?” What’s the difference between ethical and illegal?

Application 3-2: The case of Kindred Todd and the Ethics of OD describes one such situationwhere a group of consultants get caught up in an ethical situation. How would the students have

handled the situation differently?

6. Summary

This chapter has examined the role of the organization development practitioner. That term applies to

three sets of people: individuals specializing in OD as a profession, people from related fields who have

gained some competence in OD, and managers having the OD skills necessary to change and develop

their organizations or departments. The professional OD role can apply to internal consultants who

belong to the organization undergoing change, to external consultants who are members of universities

and consulting firms or are self-employed, and to members of internal–external consulting teams.

Values have played a key role in OD, and traditional values promoting trust, collaboration, andopenness have been supplemented recently with concerns for improving organizational effectiveness

and productivity. As a profession, OD always has shown a concern for the ethical conduct of itspractitioners, and several ethical codes for OD practice have been developed by various professional

associations.



Chapter 4

Entering and Contracting

Learning Objectives

1. To describe the steps associated with staring a planned change process

2. To reinforce the definition of an OD practitioner as anyone who is helping a system to

make planned changes


1. Entering into an OD Relationship

Note: Entering an organization system, especially as an external consultant, is one of the more

difficult aspects of OD. Although this is a relatively short chapter, the issues discussed her arevital. The norms and expectations that get established in this stage can influence dramatically thechances for success. Thus, the instructor should thoroughly explore the implications of each step

of the entering process.

A. Clarifying the Organizational Issue

Note: As one experienced OD consultant put it, “The problem is never the problem. The

problem is with the problem.” That is, the presenting problem is very often a symptom

and the OD practitioner’s job is to determine what the “real” problem is.

B. Determining the Relevant Client

Note: It is important to point out to students that one reason OD efforts fail is the general

reluctance and ability to address political/power issues. The instructor should point out

how these issues arise during the process of identifying the relevant client.

C. Selecting an OD Practitioner

Application 4-1: This application describes the entering process at American Healthways andhighlights the importance of collecting preliminary data and identifying the relevant client. This is the

first in a series of applications used throughout the text to provide a more detailed picture of a large-

scale OD intervention. In this part, the consultant enters an organization with a clear presenting

problem. Ask the students what they think is the most important issue and whether they agree with the

consultant’s approach.

2. Developing a Contract

Note: Contracting is an important part of the OD process. Until Peter Block made the concept

popular in the early 1980s, Weisbord and perhaps Hackman were the only researchers to talk

about its importance and dynamics. The truth is that OD practitioners engage in contracting all

the time. Any time the practitioner agrees to perform work, a contract has been made. The pu0ose

of this section is to point out the value in making certain aspects of the contra ting process

explicit.



A. Mutual expectations

B. Time and resources

C. Ground rules

Application 4.2 describes the contracting meeting for the structural change project at American

Healthways. It finishes the entry and contracting process started in Application 4-1. Again, ask the students to comment on the consultant’s approach.

3. Personal Process Issues in Entering and Contracting

4. Summary

The entering and contracting activities constitute the initial activities of the OD process. They set the

parameters for the phases of planned change that follow: diagnosing, planning and implementing

change, and evaluating and institutionalizing it. Organizational entry involves clarifying the

organizational issue or presenting problem, determining the relevant client, and selecting an OD

practitioner. Developing an OD contract focuses on making a good decision about whether to proceed

and allows both the client and the OD practitioner to clarify expectations about how the change processwill unfold. Contracting involves setting mutual expectations, negotiating time and resources, and

developing ground rules for working together.



Chapter 5

Diagnosing Organizations

Learning Objectives

1. To equip students with a general framework of OD diagnostic tools from a systematic

perspective

2. To define diagnosis and to explain how the diagnostic process provides practical

understanding of problems at the organizational level of analysis


1. What is diagnosis?

Note: One of the defining and distinguishing characteristics of OD is its emphasis on diagnosis prior to intervention. Several points need to be stressed. First, align diagnosis with the

predominant values underlying OD by emphasizing the joint and collaborative nature of the

diagnostic process. Second, be clear that the purpose of diagnosis is to uncover the true causes of

the problem. It is a central tenet of OD that organizations often waste time solving symptoms of a

deeper issue. In this sense, diagnosis is often associated with the “medical model” of consulting.This is risky in OD, because there is no extant assumption that something is wrong with the

“patient.”

2. The Need for Diagnostic Models

Note: The central role of diagnosis in OD must be appreciated by students. Diagnosis follows

entering and contracting activities and is designed to uncover the root causes of issues that theorganization wants to address. To do that, some sort of framework is needed in order to ensure

that all important areas of concerns are addressed. To work without a model causes two problems.

First, the client cannot work with the OD practitioner or agree that the model makes sense.

Second, the practitioner takes the risk that some important category of data is not collected that

may be an important cause of the problem or issue.

Note: For more sophisticated students who have several years of business experience, the

professor might find the Emergent-Pragmatic exercise useful. It can be found in N. Tichy,

Managing Strategic Change (New York: John Wiley, 1983, pp. 50-68). It involves reading a case

and then going through a step-by-step process of building an organizational model. In turn, this

model can be used to diagnose the student’s own organization, an organization they are familiar

with, or the cases found at the end of the major sections of text.

3. The Open Systems Model

A. Organizations as Open Systems

Note: The open systems model is adopted by this text as the most appropriate way to

view organizations. It is not the only model (i.e., contingency model). The class should



have a thorough understanding of the organization as an open system with key properties

of inputs, transformations, outputs, boundaries, feedback, equifinality, and alignment.

B. Inputs, transformations, and outputs

C. BoundariesD. Feedback

E. EquifinalityF. Alignment

4. Diagnosing Organizational Systems

A. Overall Organization

B. Groups and Departments

C. Individual Positions and Jobs

Note: The key to effective diagnosis is to know what to look for at each organizational

level and to recognize how the levels affect each other.

5. Organization Level Diagnosis

Note: The relationship between inputs, strategic orientation, and outputs is critical to

organization level diagnosis. In addition, students must consider that an organization’s general

environment and industry structure change over time and can be characterized along a dynamic-

static continuum. OD practitioners must design diagnostic and intervention activities that fit

these contexts.

A. Inputs

1. General Environment

2. Industry Structure

3. Dynamic-Static Continuum

B. Design Components1. Strategy

2. Technology

3. Structural Systems

4. Measurement Systems

5. Human Resource Systems6. Organization Culture

C. Outputs

D. Alignment

Note: Depending on the sophistication of the class, the design components and the issue

of alignment between them should be familiar to students who have completed an

organization design or organization theory course.

E. Analysis

Note: Application 5-1 allows the student to apply the organization level diagnostic

model to the Steinway organization. Ask students to make assessments of the inputs and



strategic orientation and then proceed to an evaluation of the alignments among the

different parts.

6. Summary

This chapter presented background information for diagnosing organizations, groups, and individual

jobs. Diagnosis is a collaborative process, involving both managers and consultants in collectingpertinent data, analyzing them, and drawing conclusions for action planning and intervention. The

comprehensive model presented here views organizations as open systems. An organization-level

diagnostic model was described and applied. It consists of environmental inputs; a set of designcomponents called a strategic orientation; and a variety of outputs, such as performance, productivity,

and stakeholder satisfaction. Diagnosis involves understanding each of the parts in the model and then

assessing how the elements of the strategic orientation align with each other and with the inputs.



Chapter 6

Diagnosing Groups and Jobs

Learning Objectives

1. To clarify the concepts of group and job level diagnosis

2. To define diagnosis and to explain how the diagnostic process discovers the underlying

causes of problems at the group and job levels of analysis

3. To present an open systems diagnostic model for the group and job levels


1. Group Level Diagnosis

Note: As seen in Chapter Five, diagnosis is the second major phase of planned change. However,

the next two levels of diagnosis are group and job. Different issues surface at the group and job

levels, therefore, diagnostic models developed specifically for these levels, are necessary.

A. Inputs

B. Design Component

C. Outputs

D. Fits

E. Analysis

Note: Thorough understanding of each concept of the group model is crucial to successfuldiagnosis. Also, appropriate diagnoses can be the difference between assisting the client in achieving

organizational effectiveness or furthering dysfunction of the group. It will be critical that the student

conceptualizes open systems theory at the group and job levels.

Note: Use the Ortiv Glass Corporation, Application 6-1, to explore the use of the group level model.

2. Individual-Level Diagnosis

Note: The lowest level of organizational diagnosis is the individual job or position. The

organization is made up of various groups; the groups are composed of individuals’ jobs.

A. InputsB. Design Components

C. Fits

D. Analysis



Application 6-2 describes a job at Pepperdine University. It explores the use of individual-level

diagnosis to determine a job design. Students should examine and analyze the proposed job design

changes with an individual-level diagnosis. The application offers data regarding the salient inputsof the job level, organization design, group design, and characteristics of each job. Task variety,

task significance, task identity, autonomy, and feedback are also described. Predictions can be

made by students to support or reject the job design change and whether or not it will produce

outputs of work satisfaction and work quality.

3. Summary

In this chapter, diagnostic models associated with groups and individuals were described and applied.

Diagnostic models include the input, design component (transformation processes), and output

dimensions needed to understand groups and individual jobs. Group diagnostic models take theorganization’s design as the primary input; examine goal clarity, task structure, group composition,

performance norms, and group functioning as the key design components; and list group performanceand member quality of work life as the outputs. At the individual job level, organization design, group

design, and characteristics of each job are the salient inputs. Task variety, task significance, task identity, autonomy, and feedback work together to produce outputs of work satisfaction and work

quality.



Chapter 7

Collecting and Analyzing Diagnostic Information

Learning Objectives

1. To understand the importance of the diagnostic relationship in the OD process

2. To describe the methods for diagnosing and collecting data3. To understand and utilize techniques for analyzing data


1. The Diagnostic Relationship

Note: Similar to entering and contracting, the OD practitioner needs to develop an agreement

with organizational members from the client system about collecting and using data gathered

from them. This is simply a more specific contracting process. The parallels between the general

contracting process and the diagnostic relationship should be made explicit: importance of properdata collection and joint diagnosis prior to feedback (which will be covered in Chapter 8). These

key elements need to be understood and utilized to: 1) rally energy for change, 2) obtain valid

information, and 3) develop a collaborative relationship. Successfully meeting these objectives

ensures transfer of ownership to the client. Four characteristics for adequately collecting data arenoted and defined.

2. Methods for Collecting Data

Note: Four different methods are described here. Emphasis should be placed on the need to use

several methods of collecting data to avoid potential biases. The relative emphasis you place on

this section depends on your own orientation and the background of the students.

A. Questionnaires

B. Interviews

C. Observations

D. Unobtrusive measures

3. Sampling

4. Techniques for Analyzing Data

Note: The techniques described here were chosen because 1) they are basic tools that all

students should have had in prior courses (but often need to review), 2) they are currently popular

as part of many total quality management processes, and 3) client organizations are becomingmore and more concerned with documenting and justifying expenditures. The ability to measure

processes and outcomes can be extremely valuable for OD practitioners.

Application 7-1 describes two diagnostic processes at American Healthways (AMHC)

organization. The first is informal whereas the second is a formal diagnostic survey. The



application describes subsequent content analysis of the data collected. Ask students to critique

the process and identify its strengths and weaknesses.

A. Qualitative Tools

1. Content Analysis2. Force-field Analysis

B. Quantitative Tools

1. Means, Standard Deviations, and Frequency Distributions

2. Scattergrams and Correlation Coefficients3. Difference Tests

5. Summary

This chapter described several different methods for collecting and analyzing diagnostic data. Because

diagnosis is an important step that occurs frequently in the planned change process, a working

familiarity with these techniques is essential. Methods of data collection include questionnaires,

interviews, observation, and unobtrusive measures. Methods of analysis include qualitative techniques,

such as content and force-field analysis, and quantitative techniques, such as the determination of mean,standard deviation, correlation coefficient, as well as difference tests.



Chapter 8

Feeding Back Diagnostic Information

Learning Objectives

1. To understand the importance of data feedback in the OD process

2. To describe the desired characteristics of feedback content

3. To describe the desired characteristics of the feedback process


1. Determining the Content of the Feedback

Note: This section is aimed at establishing that what gets fed back to the client is as important

as how the data is fed back. Nine characteristics are noted and defined. Students understand this

material when they can link the nine criteria to developing and maintaining ownership of the data.

A. Relevant

B. Understandable

C. Descriptive

D. Verifiable

E. Limited

F. Timely

G. Impactful

H. Comparative

I. Unfinalized

2. Characteristics of the Feedback Process

Note: This section emphasizes the process of feeding back data. Five criteria are listed that

facilitate ownership of the data during feedback meetings.

A. Motivation to work with the data

B. Structure for the meeting

C. Appropriate attendance

D. Appropriate power

E. Process help

Application 8-1 describes guidelines and suggestions for structuring data feedback sessions

taught to a group of internal OD practitioners at GTE of California.

3. Survey Feedback

Note: In this section, the specialized data feedback process known as Survey Feedback is

described. Our intention is to suggest that data feedback is a central issue in all OD efforts and

that survey feedback is just one special case. Survey feedback can be cited as an intervention inand of itself. This true statement should not detract from the fact that even as an intervention,

survey feedback is simply a reflection of a larger planned change process.



A. What are the steps?

Application 8-2: Survey Feedback at the Prudential Real Estate Affiliates (PREA). The

application describes how Prudential Real Estate Affiliates combines attitudinal surveys

with hard measures to increase change ownership in real estate sales offices.

B. Survey Feedback and Organizational Dependencies

C. Limitations of Survey Feedback

D. Results of Survey Feedback

6. Summary

This chapter described the process of feeding back data to a client system. It concerned

identifying the content of the data to be fed back and designing a feedback process that ensures

ownership of the data. Feeding back data is a central activity in almost any OD program. A

special application of the data-collection and feedback process is called survey feedback which

enables practitioners to collect diagnostic data from a large number of organization members and

to feed back that information for purposes of problem solving.



Chapter 9

Designing Interventions

Learning Objectives

1. To discuss criteria for effective interventions

2. To discuss issues, considerations, constraints, ingredients, and processes for interventions

3. To give an overview of the various types of interventions (discussed in detail, in later

chapters)


1. What are Effective Interventions?

Note: Students are often confused about the definition of an intervention. The term can be used

to refer to a major planned change effort such as the implementation of self-managed teams or

changing from a functional to a matrix structure. But it can also refer to a “process” commentduring a meeting like, “I notice that John Doe is doing most of the talking.” This too is an

intervention and students need to understand the similarities between these two seeminglydifferent examples.

A. The extent to which is relevant to the organization and its members

B. The degree to which it is based on causal knowledge of intended outcomes

C. The extent to which it transfers change-management competencies to

organizational members

2. How to Design Effective Interventions

A. Contingencies Related to Change Situations1. Readiness for change

2. Capability to change

3. Cultural context

4. Capabilities of the change agent

B. Contingencies Related to the Target of Change

1. Organizational Issues

a. Strategic Issues

b. Technology and Structure Issues

c. Human Resource Issues

d. Human Process Issues

2. Organizational Levels

Note: Interventions can address three different levels: individual, group, or organizational.

Some interventions can impact more than one level. The key is to think systemically. This is

heavily emphasized because of the possibilities of cross-level effects and potentially needed

integrations. Lastly, the practitioner should only design interventions appropriate for their skill

level. Table 9-1 lists OD interventions in terms of which level of the organization is primarilyimpacted.



3. Overview of Interventions

A. Human Process Interventions

Note: The most common OD techniques, such as conflict resolution and team building

are in this category. These interventions pertain to social processes and relationships

among employees. They are applied at all three organizational levels. Individual and

group level interventions include coaching, training and development, processconsultation, third party interventions, and team building. System-wide interventions

(group and organization level interventions) include organization confrontation meeting,

intergroup relations, and large group interventions.

B. Technostructural InterventionsNote: Seven interventions fall under this category are described in detail over three

chapters (14, 15, & 16); structural design, downsizing, reengineering, parallel structures,

high-involvement organizations, total quality management, and work design.

C. Human Resource Management Interventions

Note: Under the area of performance management, three interventions are described:

goal setting, performance appraisal, and reward systems. Another set of human resourcemanagement interventions, aimed at developing and assisting organization members,

include career planning and development, managing workforce diversity, and employee

wellness programs.

D. Strategic Interventions

Note: Strategic interventions are applied primarily at the organizational level. Chapter

19 describes interventions that shape the competitive and collaborative strategies of organizations. They include integrated strategic change, mergers and acquisitions,

alliances, and networks. Chapter 20 addresses three additional interventions concerned

with organizational transformation, including culture change, self-designing

organizations, and organization learning and knowledge management.

4. Summary

An intervention is a set of planned activities intended to help an organization improve its

performance and effectiveness. Effective interventions are designed to fit the needs of the

organization, are based on causal knowledge of intended outcomes, and transfer competence tomanage change to organization members. Four types of OD interventions are addressed in this

book: (1) human process programs aimed at people within organizations and their interaction

processes; (2) technostructural methods directed at organization technology and structures for

linking people and technology; (3) human resources management interventions focused at

integrating people into the organization successfully; and (4) strategic programs targeted at howthe organization uses its resources to gain a competitive advantage in the larger environment.



Chapter 10

Leading and Managing Change

Learning Objectives

1. To understand the different elements of a successful change program

2. To understand how leadership is linked to change activities


1. Overview of Change Activities

Note: This chapter is devoted to a description of the different elements of a planned change

process that the OD practitioner must address to successfully implement change. While not all of the elements will need to be addressed in all situations, practitioners should routinely check each

one during planned change. In addition, the chapter begins to address the key concern of

leadership. Each of the phases of change can and should be linked to student’s understandingsand beliefs about what effective leadership is all about.

2. Motivating Change

A. Creating Readiness for Change

B. Overcoming Resistance to Change

Application 10-1: Motivating Change in Johnsonville Sausage provides students with an

example of how attentive management can motivate change among the workforce.

3. Creating a Vision

A. Describing the core ideology

B. Constructing the envisioned future

Application 10-2: This application describes how Premier, a leading healthcare alliance

developed a vision for the organization. The process outlines some of the specific

performance and human outcome elements of its desired future state.

4. Developing Political Support

A. Assessing Change Agent Power

B. Identifying Key Stakeholders

C. Influencing Stakeholders

Application 10-3: This application shows how one manager used the personal power

bases of expertise and reputation to form social networks with key stakeholders andgained support for a statewide change in the public schools.

5. Managing the Transition

A. Activity Planning

B. Commitment Planning



C. Change-Management Structures

Application 10-4: This application shows how Hewlett-Packard and Compaq used

extraordinary detail with these techniques to manage the integration activities associatedwith this acquisition.

6. Sustaining Momentum

A. Providing Resources for ChangeB. Building a Support System for Change Agents

C. Developing New Competencies and Skills

D. Reinforcing New Behaviors

E. Staying the Course

Application 10-5: This application describes the transformation at the Veteran’s Hospital

Administration and how the leadership team sustained momentum for change by

instituting a performance management system and utilizing evaluation feedback to modify the

change process.

Video Option: The first part of the Southwestern College Publishing video for Organization

Development and Change describes a change process at Central Michigan Community Hospital.

After viewing the clip, have the students discuss the similarities and differences between the

principles described in the video and the phases in the change management process described in

this chapter.

7. Summary

This chapter describes five kinds of activities that change agents must carry out when planning and

implementing changes. The first activity is motivating change, which involves creating a readiness for

change among organization members and overcoming their resistance. The second activity concernscreating a vision that builds on an organization’s core ideology. The core ideology and envisioned

future articulate a compelling reason for implementing change. The third task for change agents is

developing political support for the changes. Change agents first must assess their own sources of

power, then identify key stakeholders whose support is needed for change and devise strategies for

gaining their support. The fourth activity concerns managing the transition of the organization from its

current state to the desired future state. This requires planning a road map for the change activities, as

well as planning how to gain commitment for the changes. The fifth change task is sustaining

momentum for the changes so that they are carried to completion.



Chapter 11

Evaluating and Institutionalizing

Organization Development Interventions

Learning Objectives

1. To understand the issues associated with evaluating OD interventions2. To understand the process of institutionalizing OD interventions and the factors that

contribute to it


1. Evaluating Organization Development Interventions

Note: There are two types of evaluation efforts. The first involves collecting information about

how well an intervention is progressing so that modifications in the implementation can takeplace. The second involves a determination about the impact of the intervention on theorganization. To isolate the impact, the OD practitioner must find ways to rule out alternative

explanations. This is not often an easy task and requires the practitioner to understand research

design issues and to apply them creatively.

A. Implementation and Evaluation Feedback

B. Measurement

1. Selecting variables

2. Designing good measures

a. Operational definitionb. Reliability

c. Validity

C. Research Design

1. Longitudinal measurement2. Comparison unit

3. Statistical analysis

Application 11-1: This application describes the evaluation of a large-scale change at the

World Bank, specifically the way the change was managed. It is a good example of how multiple

types of data can be collected and used to validate the evaluation data. The material presented so far in

this chapter can be used to assess the evaluation’s effectiveness. Get students to discuss the

strengths and weaknesses of the assessment? How could it have been improved? Ask how

much confidence they have in the lessons learned for this organization?

2. Institutionalizing Interventions



Note: The key point of this section is that the extent of institutionalization can vary from a little

to complete. Note for the students how each element of the framework can contribute to

persistence and the different levels of persistence that can exist.

A. Institutionalization Framework

1. Organization characteristics

a. Congruenceb. Stability of environment and technology

c. Unionization

2. Intervention characteristics

a. Goal specificity

b. Programmability

c. Level of change target

d. Internal support

e. Sponsorship

3. Institutionalization processes

a. Socialization

b. Commitment

c. Reward Allocationd. Diffusion

e. Sensing and Calibration

4. Indicators of institutionalization

a. Knowledge

b. Performance

c. Preferences

d. Normative Consensus

e. Value Consensus

Application 11-2: Institutionalizing Structural Change at Hewlett-Packard. HP is one of the

premier companies in the U.S. and has implemented several major large-scale changes. The

application helps students to see that change can occur at many different levels and thatinstitutionalizing change is a difficult undertaking. It describes how culture and reward systems

can play a strong role in both supporting and constraining change.

3. Summary

This chapter explores the final two stages of planned change—evaluating interventions and

institutionalizing them. Evaluation was discussed in terms of two kinds of necessary feedback:

implementation feedback, concerned with whether the intervention is being implemented as

intended, and evaluation feedback, indicating whether the intervention is producing expected

results. Evaluation of interventions also involves decisions about measurement and research

design. Measurement issues focus on selecting variables and designing good measures. Research

design focuses on setting up the conditions for making valid assessments of an intervention’seffects. OD interventions are institutionalized when the change program persists and becomes

part of the organization’s normal functioning.



Chapter 12

Individual, Interpersonal, and Group Process

Approaches

Learning Objectives

1. To understand the human process interventions aimed at individuals, interpersonal

relations and group dynamics

2. To understand the application and effectiveness of the various process interventions

(coaching, training and development, group process approaches, third-party interventions,and team building) in producing change


1. Coaching

A. What are the Goals?

B. Application Stages

1. Establish the principles of the relationship

2. Conduct an assessment3. Debrief the results

4. Develop an action plan

5. Implement the action plan

6. Assess the results

C. The Results of Coaching

Note: Coaching is probably the fastest growing consultation segment over the last five

years. In some organizations, having a coach is considered a status symbol, much like having atherapist for New Yorkers. Coaching, unlike OD has persued professionalization as a means of

legitimizing the role and its practitioners. The professor could lead two types of discussions

about coaching. The first would concern its definition and students’ experience or observations of

coaching. The second discussion would examine when coaching would be considered an OD

intervention (Use criteria from Chapter 1 to define the OD intervention.)

2. Training and Development

A. What are the Goals?


1. Perform a needs assessment

2. Develop the objectives and design of the training

3. Deliver the training

4. Evaluate the training

Application 12.1 describes a management development program at Microsoft

Corporation. The company was interested in building the strategic competence of its middle

managers and making the organization more capable. The professor can discuss the extent to



which the design and delivery process matches the process outlined in the text. What are the

strengths and weaknesses of the program as it was implemented?

C. The Results of Training

3. Process Consultation

A. Group Process

1. Communications

2. The functional roles of group members

3. Group problem solving

4. Group norms

5. The use of leadership and authority

B. Basic Process Interventions

1. Individual Interventions

2. Group Interventions

3. Content Interventions

4. Structural Interventions

Application 12.2: This application presents an example of process consultation with the

top-management team of a manufacturing firm. Ask students to identify differences between

process consultation and facilitation.

C. Results of Process Consultation

4. Third Party Interventions

A. An Episodic Model of Conflict

B. Facilitating the Conflict Resolution Process

Application 12.3 describes an attempt to address conflict in an information technology unit.

How does this description fit with the process model in the text ? Ask students what they might havedone differently in this situation.

5. Team Building

Note: Team building typically holds great fascination for students, especially those

with a few years of work experience. It is also one of the most common and accepted

OD interventions.

A. Team Building Activities

1. Activities relevant to one or more individuals2. Activities oriented to the group’s operation and behavior

3. Activities affecting the group’s relationship with the organization

Application 12.4 presents an example of a team-building meeting involving a top-

management team.

B. The Manager’s Role in Team Building

C. The Results of Team Building



6. Summary

In this chapter, we presented human process interventions aimed at individuals, interpersonal relations,and group dynamics. Coaching and training and development interventions are aimed mainly at

individuals. They seek to improve personal competence and are important aspects of leadershipdevelopment programs.

Process consultation is used not only as a way of helping groups become effective but also as a means

whereby groups learn to diagnose and solve their own problems and continue to develop theircompetence and maturity. The basic difference between process consultation and third-party

intervention is that the latter focuses on interpersonal dysfunctions in social relationships between two

or more individuals within the same organization and is targeted toward resolving direct conflict

between those individuals. Team building is directed toward improving group effectiveness and the

ways in which members of teams work together.



Chapter 13

Organization Process Approaches

Learning Objectives

1. To understand three types of system-wide, human process interventions: the organization

confrontation meeting, intergroup relations interventions, and large group interventions

2. To review and understand the effectiveness of these interventions in producing change


1. Organization Confrontation Meeting

Note: The organization confrontation meeting is a classic OD intervention. Help

students to see the process and the content features of the meeting. As they grow in their

knowledge of OD, they should begin to see this pattern of activities again and again in good ODintervention designs

A. Application Stages

Application 13.1: This application presents the Work-Out process at General Electric

Medical Systems business. It shows how the basic framework of a confrontation meeting can be

adapted to address organizational problems such as productivity and employee

involvement.

B. Results of Confrontation Meetings

2. Intergroup Relations Interventions

A. Microcosm Groups

Note: The trick to understanding microcosm groups is in recognizing the importance of

parallel processes. The parallel process concept suggests that if the group is composed

correctly and operated properly, the group itself will manifest the organizational problem

it was formed to address. By solving the problem within the group, they will be in a better

position to solve the problem in the larger organization or system.

1. Application Stages

a. Identify an issue

b. Convene the groupc. Provide group trainingd. Address the issue

e. Dissolve the group

2. Results of Microcosm Groups

B. Resolving Intergroup Conflict



Note: The techniques involved with the confrontation meeting are quite similar to those

with resolving an intergroup conflict. The difference is that the organization

confrontation meeting is designed to address organizational problems and issues in general

whereas the intergroup conflict intervention is specifically designed to work on the relationships

between two groups.

1. Application States2. Results of Intergroup conflict Interventions

3. Large Group Interventions

Note: The third type of systemwide process interventions has been variously referred to as

“search conferences, open space meetings, and future searches.” The focus is on issues that affect

the entire organization or large segments of it. The defining feature of large-group interventions

is bringing together large numbers of organization members, often more than 100 for a two to

four day meeting or conference. Here, members work together to identify and resolve

organization-wide problems, to design new approaches to structuring and managing the

organization. This intervention is a fast growing segment of the OD profession.

A. Four Key Assumptions

1. Organization members’ perceptions play a major role in environmental

relations.

2. Organization members must share a common view of the environment to

permit coordinated action toward it.

3. Organization member’s perceptions must accurately reflect the condition

of the environment if organizational responses are to be effective.

4. Organizations cannot only adapt to their environment, they must create it

proactively.

B. Application Stages1. Preparing for the Large-Group Meeting

a. Compelling meeting themeb. Appropriate participants

c. Relevant tasks to address the conference theme

2. Conducting the Meeting

a. Open-systems methods1. Map the current environment surrounding the ganization

2. Assess the organization’s responses to environmental

expectations

3. Identify the core mission of the organization

4. Create a realistic future scenario of environmentalexpectations and organization responses

5. Create an ideal future scenario of environmental

expectations and organization responses. Members

create alternative, desirable futures

Application 13.3 describes a large-group intervention to address the complex issue of

how to manage forests in North America. The Seventh American Forest Congress

followed an open-systems model to design and implement its large- group meeting.



b. Open-space methods

1. Set the conditions for self-organizing

2. Create the agenda

3. Coordinate activity through information

Application 13.4 provides a more detailed description of how an open-space meetingis conducted. The consultant organization believed the open-space design allowed them to discuss a

variety of issues in a flexible format and gave them the opportunity to network with colleagues in ways

that a normal annual meeting would not have supported.

3. Following up on meeting outcomes

C. Results of Large-Group Interventions

4. Summary

This chapter described three types of systemwide process interventions: confrontation meetings,

intergroup interventions, and large-group interventions. The organization confrontation meeting is away of mobilizing resources for organizational problem solving and seems especially relevant for

organizations undergoing stress. The intergroup relations approaches are designed to help solve a

variety of organizational problems. Microcosm groups can be formed to address particular issues and

use parallel processes to diffuse group solutions to the organization. Large-group interventions are

designed to focus the energy and attention of a “whole system” around organizational processes such as

a vision, strategy, or culture. It is best used when the organization is about to begin a large-scale change

effort or is facing a new situation.



Chapter 13

Organization Process Approaches

Learning Objectives

1. To understand three types of system-wide, human process interventions: the organization

confrontation meeting, intergroup relations interventions, and large group interventions

2. To review and understand the effectiveness of these interventions in producing change


1. Organization Confrontation Meeting

Note: The organization confrontation meeting is a classic OD intervention. Help

students to see the process and the content features of the meeting. As they grow in their

knowledge of OD, they should begin to see this pattern of activities again and again in good ODintervention designs

A. Application Stages

Application 13.1: This application presents the Work-Out process at General Electric

Medical Systems business. It shows how the basic framework of a confrontation meeting can be

adapted to address organizational problems such as productivity and employee

involvement.

B. Results of Confrontation Meetings

2. Intergroup Relations Interventions

A. Microcosm Groups

Note: The trick to understanding microcosm groups is in recognizing the importance of

parallel processes. The parallel process concept suggests that if the group is composed

correctly and operated properly, the group itself will manifest the organizational problem

it was formed to address. By solving the problem within the group, they will be in a better

position to solve the problem in the larger organization or system.


a. Identify an issue

b. Convene the groupc. Provide group trainingd. Address the issue

e. Dissolve the group

2. Results of Microcosm Groups

B. Resolving Intergroup Conflict



Note: The techniques involved with the confrontation meeting are quite similar to those

with resolving an intergroup conflict. The difference is that the organization

confrontation meeting is designed to address organizational problems and issues in general

whereas the intergroup conflict intervention is specifically designed to work on the relationships

between two groups.

1. Application States2. Results of Intergroup conflict Interventions

3. Large Group Interventions

Note: The third type of systemwide process interventions has been variously referred to as

“search conferences, open space meetings, and future searches.” The focus is on issues that affect

the entire organization or large segments of it. The defining feature of large-group interventions

is bringing together large numbers of organization members, often more than 100 for a two to

four day meeting or conference. Here, members work together to identify and resolve

organization-wide problems, to design new approaches to structuring and managing the

organization. This intervention is a fast growing segment of the OD profession.

A. Four Key Assumptions

1. Organization members’ perceptions play a major role in environmental

relations.

2. Organization members must share a common view of the environment to

permit coordinated action toward it.

3. Organization member’s perceptions must accurately reflect the condition

of the environment if organizational responses are to be effective.

4. Organizations cannot only adapt to their environment, they must create it

proactively.

B. Application Stages1. Preparing for the Large-Group Meeting

a. Compelling meeting themeb. Appropriate participants

c. Relevant tasks to address the conference theme

2. Conducting the Meeting

a. Open-systems methods1. Map the current environment surrounding the ganization

2. Assess the organization’s responses to environmental

expectations

3. Identify the core mission of the organization

4. Create a realistic future scenario of environmentalexpectations and organization responses

5. Create an ideal future scenario of environmental

expectations and organization responses. Members

create alternative, desirable futures

Application 13.3 describes a large-group intervention to address the complex issue of

how to manage forests in North America. The Seventh American Forest Congress

followed an open-systems model to design and implement its large- group meeting.



b. Open-space methods

1. Set the conditions for self-organizing

2. Create the agenda

3. Coordinate activity through information

Application 13.4 provides a more detailed description of how an open-space meetingis conducted. The consultant organization believed the open-space design allowed them to discuss a

variety of issues in a flexible format and gave them the opportunity to network with colleagues in ways

that a normal annual meeting would not have supported.

3. Following up on meeting outcomes

C. Results of Large-Group Interventions

4. Summary

This chapter described three types of systemwide process interventions: confrontation meetings,

intergroup interventions, and large-group interventions. The organization confrontation meeting is away of mobilizing resources for organizational problem solving and seems especially relevant for

organizations undergoing stress. The intergroup relations approaches are designed to help solve a

variety of organizational problems. Microcosm groups can be formed to address particular issues and

use parallel processes to diffuse group solutions to the organization. Large-group interventions are

designed to focus the energy and attention of a “whole system” around organizational processes such as

a vision, strategy, or culture. It is best used when the organization is about to begin a large-scale change

effort or is facing a new situation.



Chapter 15

Employee Involvement

Learning Objectives

1. To understand the principle characteristics of employee involvement interventions

2. To understand the three predominant applications of employee involvement

3. To discuss the major types of employee involvement interventions


1. Employee Involvement: What is it?

Note: As one of the fastest growing classes of OD, the chapter presents interventions that are

aimed at moving decision making downward in the organization. Its history begins with the

quality of work life (QWL) movement as described in chapter 2. Special attention should be

placed on the working definition of EI. That is, how are power, information, knowledge & skills,and rewards manipulated to increase employee participation and empowerment in organizational

functioning? Stress how each of the four interventions will vary in terms of their impact on each

of these four dimensions.

A. A Working Definition of Employee Involvement

B. The Diffusion of EI Practices

C. How EI Affects Productivity

Note: This is important material. The relationship between EI and productivity is not

simple. The amount of research that has been done in this area of OD is intense and should be

appreciated by the students.

2. Employee Involvement Applications

Note: This section deals with the three major applications of EI that vary in the amount of power, information, knowledge & skills, and rewards that are moved downward throughout the

organization.

A. Parallel Structures

1. Application Stages2. Cooperative Union-Management Projects

Note: This intervention is most closely related to the original QWL movement. The

predominant feature of this intervention is the sharing of decision power with theunion and its members. Problem solving skills and knowledge are also increased butcan be controlled by management. Information and rewards tend to be pushed less.

Application 15-1: The application describes a classic example of a cooperative union-

management program at GTE of California. Notice how this effort was revised andimproved using an action research approach and the role the reward system

change played in its success.



3. Results of Parallel Structure Approaches

B. High-Involvement Organizations

Note: High involvement organizations (HIO’s) are one of the most pervasive OD

interventions in terms of its impact on the four elements and one of the most popular areas of practice and research. HIO’s consciously attempt to push all four elements down into the

organization. The success of the intervention is largely dependent on that part of the organization

having relative autonomy from the other parts. Without that independence, it is difficult to beable to control all of the organizational systems necessary to align the four elements.

1. Features of High-Involvement Organizations (HIO’s)

2. Application Factors

3. Results of HIO’s

Application 15.2 presents an example of how Chrysler applied high-involvement principles to

its Neon automobile. The Neon drew critical acclaim for its short design time and was introduced in

Japan to compete with Toyota’s and Honda’s popular subcompacts.

C. Total Quality Management (TQM)

Note: This intervention was very popular in the late 1970’s and 1980’s. The increased

use of TQM has replaced the Quality Circles (QC) intervention in many organizations. QC’s tend

to push knowledge and skill levels down through problem solving and group training, much like

union-management interventions. Another important evolution has been the recent mergence of

six-sigma programs. Based on the principles of TQM, large organizations, such as GE, Motorola,

May Co., and Sun Microsystems, are attempting to drive out important sources of variation and

achieving near perfection in the execution of critical processes.

1. Application Stagesa. Gain long-term senior management commitment

b. Train members in quality methodsc. Start quality improvement projects

d. Measure progress

e. Reward accomplishment

Application 15.3 describes a six sigma effort at GE Financial Services.

2. Results of Total Quality Management

3. Summary

Employee involvement interventions are technostructural change programs aimed at moving

organization decision making downward to improve responsiveness and performance and toincrease member flexibility, commitment, and satisfaction. Different approaches to EI can be

described by the extent to which power, information, knowledge and skills, and rewards are

shared with employees. Major EI interventions are parallel structures, including cooperative

union– management projects and quality circles; high-involvement designs; and TQM. The



results of these approaches tend to be positive, and the quality of research supporting these

interventions is increasing.



Chapter 16

Work Design

Learning Objectives

1. To explore work design as a central component of many EI interventions

2. To approach work design from three different perspectives: engineering, motivational,

and socio-technical

3. To understand how different approaches align with different technical and interpersonal

conditions


Note: Work design is often an integral part of EI interventions. Students should be encouraged to

see both the similarities between EI and work design (both effect the technical and the structural

components of organization design) and the differences (individual/group level versus

organizational level). The three approaches described here should be understood for theirunderlying assumptions, the outcomes likely to result from using each approach, and the

conditions under which each is likely to be most successful.

1. The Engineering Approach

Note: The engineering approach is the oldest and most prevalent approach to designing

work. It produces two kinds of work design: traditional jobs and traditional work design.

It remains an important work design intervention because its immediate cost savings and

efficiency can easily be measured, selection costs are low, and training costs are

minimized.

2. The Motivational Approach

Note: The motivational approach, based mostly on Hackman and Oldham’s work, is the

classic job enrichment model. While some students may have been exposed to it in priororganization behavior courses, the focus here should be on the process of implementing

job redesign.

A. The Core Dimensions of Jobs

1. Skill Variety, Task Identity, and Task Significance2. Autonomy

3. Feedback from the Work Itself

B. Individual DifferencesC. Application Stages

1. Thorough diagnosis

2. Forming natural work units

3. Combining tasks

4. Establishing client relationships5. Vertical loading

6. Opening feedback channels



D. Barriers to Job Enrichment

E. Results of Job Enrichment

Application 16.1 presents an example of job enrichment in a large data-entry operationwhere workers were not directly involved in the redesign process and where supervisors

developed and implemented the changes. Although the results were extremely positive, researchsuggests that employee participation in the change program might have produced even more

beneficial outcomes

3. The Sociotechnical Systems Approach

Note: Sociotechnical Systems (STS) theory underlies many current EI and work design

approaches. For example, TQM approaches, trumpeted by many as a revolutionary

approach to organizational improvement look remarkably similar to many STS guidelines (e.g.,

variance control). Students should have a thorough grasp of STS theory and guidelines.

A. Conceptual Background

1. Sociotechnical system2. Environmental relationship

B. Self-managed Work Teams

1. Team Task Design

2. Team Process Interventions

3. Organization Support Systems

Video Option: The third clip on the Southwestern College Publishing video for

Organization Development and Change describes the challenges in implementing a self-

directed work team at Next Door Food Store. After viewing the clip, have the students analyze

the work performed by this team using the 2” X 2” tables in the text. What is the level of task

interdependency and task uncertainty? What is the apparent level of social and achievement needsin this case? Is self-directed teams the appropriate job design in this situation?

C. Application Stages

D. Results of Self-Managed Teams

Application 16.2 describes how one of ASEA Brown Boveri’s plants implemented self-

managed teams. It clearly demonstrates the importance of aligning the systems to support

self-management as well as the process of gradually increasing the team’s autonomy and

responsibility.

4. Designing Work for Technical and Personal Needs

A. Technical Factors

B. Personal Need Factors

C. Meeting Both Technical and Personal Needs

5. Summary

Three different approaches to work design are examined: the engineering approach, themotivational approach, and the sociotechnical systems approach. Each approach is described



within a contingency framework to determine which is most likely to result in high productivity

and worker satisfaction. The engineering approach produces traditional jobs and traditional work

groups. Traditional jobs are highly simplified and involve routine and repetitive forms of work,

rather than coordination among people to produce a product or service. The motivational

approach produces enriched jobs involving high levels of skill variety, task identity, task significance, autonomy, and feedback from the work itself. Enriched jobs achieve good results

when the technology is uncertain but does not require high levels of coordination and whenemployees have high growth needs and low social needs. Finally, the sociotechnical systems

approach is associated with self-managed teams. These groups are composed of members

performing interrelated tasks. Members are given the multiple skills, autonomy, and informationnecessary to control their own task behaviors with relatively little external control.



Chapter 17

Performance Management

Learning Objectives

1. To understand the relationships and components associated with managing individual

and group performance

2. To explore three interventions concerned with managing performance of human

resources: goal setting, performance appraisal, and reward systems


1. Goal Setting

A. Characteristics of Goal Setting

1. Establishing Challenging Goals2. Clarifying Goal Measurement


1. Diagnosis

2. Preparation for goal setting

3. Setting of Goals

4. Review

C. Management by Objectives (MBO)

1. Work group involvement

2. Joint manager-subordinate goal setting

3. Establishment of action plans4. Establishment of criteria for success

5. Review and recycle

6. Maintenance of records

Note: MBO is not formally practiced by many organizations per se, but its legacy is

alive and well in most organizational vocabularies. It is presented here as an example of a

comprehensive intervention that combines goal setting and appraisal and links these events to the

reward system. MBO has become woven into the fabric of most organization’s human resourcepractices and can be a relatively transparent system or process.

Application 17.1 describes how a performance management process was designed at

Monsanto Company. It shows how goal-setting processes can be linked with businessstrategies and performance appraisal processes.

D. Effects of Goal Setting and MBO

2. Performance Appraisal

A. The Performance Appraisal Process




1. Select the right people

2. Diagnose the current situation

3. Establish the system’s purposes and objectives

4. Design the performance appraisal system

5. Experiment with implementation6. Evaluate and monitor the system

Note: As part of the appraisal design process the above criteria are presented. These

criteria can be used in a diagnostic way as well to measure the state of the current appraisal

system. Students may find these criteria helpful in diagnosing and designing appraisal and otherfeedback systems.

Application 17.2 describes the redesign of a performance appraisal process for the

Washington State Patrol agency. It demonstrates the importance of a pilot test and integrating the

appraisal process with context factors and other organizational initiatives.

C. Effects of Performance Appraisal

Video Option: The fourth clip on the Southwestern College Publishing video forOrganization Development and Change describes the performance management process at

LaBelle Management, including the goal setting and appraisal processes. After viewing the clip,

have the students diagnose the system. What are its strengths and weaknesses? How might they

improve the process? How does the system fit with the strategy, technology, and levels of

employee involvement in the organization?

3. Reward Systems

Note: In this section criteria for reward systems are presented. Similarly to the criteria for

performance appraisal design, student may find these guidelines helpful in understanding the

strengths and weaknesses of current and proposed reward systems. Most pay systems tend to fall

short on many of the criteria providing an opportunity to talk about why money is not a goodmotivator in many cases. It also affords an opportunity to talk about what types of rewards are

most likely to generate positive behaviors.

A. Structural and Motivational Features of Reward Systems

1. Design features of a reward system

a. Person/job based vs. performance based

b. Internal and external equity

c. Hierarchy

d. Centralization

e. Rewards mix

f. Security

g. Seniority

2. Motivational factors

a. Availability of rewards

b. Timeliness of rewards

c. Performance contingency

d. Durability

e. Visibility



B. Skill-Based Pay Systems

C. Performance-Based Pay Systems

D. Gain Sharing Systems

Application 17.3 describes the reward system at Lands’ End Direct Merchants. It describes a variety

of reward system design features as well as how a number of different types of rewards can be mixedtogether to produce an overall reward system.

E. Promotion SystemsF. Reward System Process Issues

4. Summary

This chapter presented three types of human resources management interventions—goal setting,

performance appraisal, and rewards systems. Although all three change programs are relatively new to

organization development, they offer powerful methods for managing employee and work group

performance. They also help enhance worker satisfaction and support work design, business strategy,

and employee involvement practices. Principles contributing to the success of goal setting includeestablishing challenging goals and clarifying measurement. Performance appraisals represent an

important link between goal setting and reward systems. As part of an organization’s feedback and

control system, they provide employees and work groups with information they can use to improve

work outcomes Reward systems interventions elicit, reinforce, and maintain desired performance.

They can be oriented to both individual jobs, work groups, or organizations and affect both

performance and employee well-being.



Chapter 18

Developing and Assisting Members

Learning Objectives

1. To examine three human resource management interventions: career planning and

development, workforce diversity, and employee stress and wellness.

2. To understand how OD efforts enhance traditional human resource approaches to these

issues.


1. Career Planning and Development Interventions

Note: Career planning and development is a large area within human resource management. We

have chosen to orient the material around the career stages of an individual and note how the

organization may adjust its human resource practices. This developmental orientation can becompared with the issue orientation adopted in the workforce diversity section.

A. Career Stages

B. Career Planning

Application 18.1 describes how Colgate-Palmolive, an international consumer-products

company, revised career planning to integrate better with business strategy and human

resources planning.

C. Career Development

D. Role and Structure Interventions

1. Realistic Job Preview2. Job Rotation and Challenging Assignments3. Consultative Roles

4. Phased Retirement

E. Individual Employee Development Interventions

1. Assessment Centers

2. Mentoring

3. Developmental Training

F. Performance Feedback and Coaching Interventions

G. Work-Life Balance Interventions

2. Workforce Diversity Interventions

A. Age

B. GenderC. Race/Ethnicity

D. Sexual Orientation

E. Disability

F. Culture and Values



Application 18.2 describes a workforce diversity intervention at Baxter Exports, showing

how diversity can exist in many areas and how organizations can employ a range of

interventions to make the workplace more flexible.

3. Employee Stress and Wellness Interventions

A. Work LeavesB. Stress Management Programs

1. Definition and model of stress management

2. Alleviating stressors and coping with stress

Application 18.3 describes the evolution of an EAP and wellness program at Johnson &

Johnson and demonstrates how such programs can be implemented in large, decentralized

organizations.

4. Summary

This chapter presented three major human resources interventions: career planning and development,

workforce diversity interventions, and employee stress and wellness interventions. Career planninginvolves helping people choose occupations, organizations, and jobs at different stages of their careers.

Career development helps employees achieve career objectives. Workforce diversity interventions are

designed to adapt human resources practices to an increasingly diverse workforce. Age, gender, race,

sexual orientation, disability, and culture and values trends point to a more complex set of human

resources demands. Within such a context, OD interventions (e.g., job design, performance

management, and employee involvement practices) have to be adapted to a diverse set of personal

preferences, needs, and lifestyles. Employee stress and wellness interventions, such as work leaves and

stress management, recognize the important link between worker health and organizational

productivity. Although these kinds of change programs generally are carried out by human resources

specialists, a growing number of OD practitioners are gaining competence in these areas and the

interventions are increasingly being included in OD programs.



Chapter 19

Competitive and Collaborative Strategies

Learning Objectives

1. To compare and contrast two different classes of strategic interventions: competitive andcollaborative

2. To describe two types of interventions within each category


Note: This chapter describes interventions that help organizations implement strategies for both

competing and collaborating with other organizations. These change programs are relatively recent

additions to the OD field. They focus on helping organizations position themselves strategically in their

social and economic environments and achieve a better fit with the external forces affecting goal

achievement and performance. Practitioners are discovering that additional knowledge and skills in

such areas as marketing, finance, economics, political science, and complexity theory are necessary toimplement these strategic interventions. The interventions described in this chapter help organizations

gain a comprehensive understanding of their environments and devise appropriate responses to external

demands.

1. Environmental Framework

Note: It’s important that students be able to articulate the similarities and differences among the general

environment, the task environment (also known as the industry structure), and the enacted environment.

A. Environmental Types

1. General Environment

2. Task Environment3. Enacted Environment

B. Environmental Dimensions

Note: We highlight several features or dimensions of the environment, including information

uncertainty, resource dependence.

2. Competitive Strategies

Note: This section describes two very different intervention activities. The first intervention

process, integrated strategic change, focuses on strategic OD activities at the firm or business

level. The second set of activities is associated with merger and acquisition activities. Thecriterion of either intervention is to make an organization’s strategy more unique, difficult or

costly to imitate, and valuable.

A. Integrated Strategic Change (ISC)

1. Key Features

a. The organization’s strategic orientation

b. The strategic plan (creation, support, planning, and execution)

c. Integrating individuals and groups into the process




a. Performing the strategic analysis.

b. Exercising strategic choice.

c. Designing the strategic change plan.d. Implementing the strategic change plan.

Application 19.1 describes an integrated strategic change process at Microsoft Canada and

demonstrates how the process was refined over time as the organization builds capability in strategic

management. Help the students to see how strategic interventions, such as integrated strategic chance,are broad descriptions or summaries that usefully describe a large number of changes. Help the students

recognize the different parts of the ISC process in the case.

B. Mergers and Acquisitions

Note: Mergers and acquisitions (M&As) involve the combination of two organizations. The

term merger refers to the integration of two previously independent organizations into a completely

new organization; acquisition involves the purchase of one organization by another for integration into

the acquiring organization. M&As are distinct from the strategies of collaboration described later inthis chapter because at least one of the organizations ceases to exist.

1. M&A Rationale

Note: Despite M&A popularity, they have a questionable record of success. Encourage the

students to explore or juxtapose the reasons for M&As on the one hand and their lack of success on the

other. If organizations are poor at executing them, why do them?


a. Precombination Phase

1. Search for and select candidate.

2. Create an M&A team.3. Establish the business case.

4. Perform a due diligence assessment.5. Develop merger integration plans.

b. Legal Combination Phase

c. Operational Combination Phase

Note: This final phase involves implementing the merger integration plan. In practice, it

begins during due diligence assessment and may continue for months or years following the legal

combination phase. M&A implementation includes the three kinds of activities described below.

1. Day 1 activities.2. Operational and technical integration activities.

3. Cultural integration activities.

Application 19.2 describes several of the key issues in the M&A process at Dow Chemical and UnionCarbide. It clearly demonstrates the importance of cultural issues in mergers and the role that OD can

play in the process.

3. Collaborative Strategies



Note: This section discusses collaborative strategies where two or more organizations

agree to work together to achieve their objectives. This represents a fundamental shift in strategic

orientation because the strategies, goals, structures, and processes of two or more

organizations become interdependent and must be coordinated and aligned. Be sure thatstudents can readily list 3-5 reasons for collaboration.

A. Collaboration Rationale

B. Alliance Interventions

Note: Alliances are a formal agreement between two organizations to pursue a set of

private and common goals through the sharing of resources, including intellectual property,

people, capital, technology, capabilities, or physical assets. The term alliance generally refers to

any collaborative effort between two organizations, including licensing agreements, franchises,

long-term contracts, and joint ventures. Make sure the students understand the importance of trust

in alliances. How can OD practitioners help two organizations build trust between them?


a. Alliance strategy formulation.b. Partner selection.

c. Alliance Structuring and Start-up

d. Alliance Operation and Adjustment

C. Network Interventions

Note: Networks involve three or more organizations that have joined together for a common

purpose. Their use is increasing rapidly in today’s highly competitive, global environment.

Managing the development of multi-organization networks involves two types of change:

(a) creating the initial network and (b) managing change within an established network.

1. Creating the Network

Note: First, the initial creation of networks recognizes their underorganized nature. Forming

them into a more coherent, operating whole involves understanding the relationships among the

participating organizations and their roles in the system, as well as the implications and consequencesof organizations leaving the network, changing roles, or increasing their influence.

a. Identification stage.

b. Convention stage.c. Organization stage.

d. Evaluation stage.

2. Managing Network Change

Note: Change within existing networks must account for the relationships

among member organizations as a whole system. The multiple and complex

relationships involved in networks produce emergent phenomenon that cannot be

fully explained by simply knowing the parts. Each organization in the network hasgoals that are partly related to the good of the network and partly focused on self-

interest. How the network reacts over time is even more difficult to capture and is



part of the emerging science of complexity. Depending on the professor’s preferences

and interests, this section represents a real opportunity to describe and discuss the

topics of networks, chaos and complexity theories, non-linear systems dynamics, and

other similar “new sciences.”

The process of change described here comes from Malcolm Gladwell’s Tipping

Point. The key issues are “structure” and “agency” as defined by the network theorists.

a. Create instability in the network.

b. Manage the Tipping Point. 1. The Law of the Few: Salespeople, Mavens, Connectors

2. Stickiness

3. The Power of Context

3. Rely on Self Organization

Application 19.3 describes the behaviors of organizations within the Toyota network in

response to a crisis. The application demonstrates the fragility of collaborative networks,

their robust and responsive capabilities, and the importance of the law of the few, stickiness, andcontext. We chose this application because we were amazed with the story and found many of theissues of network change manifest. In some cases, the salespeople, mavens, and connectors are

obvious, and the messages were sticky because the system was in crisis. Nevertheless, it shows

how powerful these concepts can be in application.

4. Summary

In this chapter, we presented interventions aimed at implementing competitive and

collaborative strategies. Organizations are open systems that exist in environmental contexts and they

must establish and maintain effective linkages with the environment to survive and prosper. Threetypes of environments affect organizational functioning: the general environment, the task

environment, and the enacted environment. Only the last environment can affect organizational choicesabout behavior, but the first two impact the consequences of those actions.

Two competitive strategies for OD are presented. The first, integrated strategic change (ISC),

is a comprehensive intervention for responding to complex and uncertain environmental pressures. The

second involves mergers and acquisitions where two or more organizations combine to achieve

strategic and financial objectives. The M&A process has been dominated by financial and technical

concerns, but experience and research strongly support the contribution that OD practitioners can make

to M&A success.

Collaborative strategies are a form of planned change aimed at helping organizations create

partnerships with other organizations to perform tasks or to solve problems that are too complex and

multifaceted for single organizations. Both alliance and network development interventions are

collaborative strategies. Alliance interventions describe the technical and organizational issues involved

when two organizations choose to work together to achieve common goals. Network developmentinterventions address two types of change. First, because multiorganization systems tend to be

underorganized, the initial development of the network follows the stages of planned change relevant to

underorganized systems: identification, convention, organization, and evaluation. Second, the

management of change in a network also acknowledges the distributed nature of influence and

adopt methods of change that rely on the law of the few the power of context and the stickiness

v - cummings y worley

Documents