Chapter 14: Organizational development and Change Organization Development (OD)
A planned, organization-wide, continuous process designed to improve communication, problem solving and learning through the application of behavioral science knowledge o Roots in humanistic psychology o Grounded in values of individual empowerment and interpersonal cooperation o Fully consistent with the high involvement management approach Understanding organization development o Casual variables Organization structure Controls Policies Training Leadership behavior OD o Intervening variables Attitudes Perceptions Motivation Skilled behaviors Teamwork Intergroup relations o End-result variables Improved productivity Increased sales Lower costs Customer loyalty Higher earnings Basic organization development model o Feedback Diagnosis of situation: diagnostic device for managers include interviews, surveys, group sociometric devices, process-oriented diagnosis and accurate records Introduction of interventions: organization development interventions include t-group training, team building, and job redesign Progress monitoring: surveys and other techniques may be reused to determine what progress has been made toward solving the problem The main criterion for evaluation is whether the original objective has been accomplished Organization development across cultures o Ethnocentric attitude and stereotyping o Must avoid an ethnocentric attitude as well as stereotyping Flexibility Openness to new approaches, ideas and beliefs and willingness to change one’s own behavior Knowledge of specific cultures Understanding of the beliefs and behavior patterns of different cultures Interpersonal sensitivity The ability to listen to and resolve problems with people from different cultures Growth and relevance of organization development o Three major trends shaping change in organizations
Globalization Changing markets in and environments in which organizations operate as well as the way they function Information technology Redefine the traditional business model by changing how work is performed, how knowledge is used and how the cost of business is calculated Managerial innovation Responds to the globalization and information technology trends and has accelerated their impact on organizations Two types of planned change o Incremental change Based on efforts to improve basic work and organizational processes o Transformational change Involves redesign and renewal of the total organization Sacred-Cow Hunts: behavioral patterns o The paper cow o The time cow o The meeting cow o The cash cow Organizational change development