General Introduction to Organizational

Development
Organizational development
Process that applies a broad range of
behavioral science knowledge and
practices to help organizations build
their capacity to change and to
acheive greater effectiveness
Focus is on building the orgs ability to
assess its current functioning and to
achieve its goals
Worley and Feyerherm
o Focus on result on or result in the
change of some aspect of the
organization system
o Must be learning or the transfer of
knowledge or skill to the client
system
o Must be evidence of improvement
in or an intention to improve the
effectiveness of the client system
Systemwide application and transfer
of behavioral science knowledge ot
the
planned
development,
improvement, and reinforcement of
strategies, structures and processes
that lead to organization effectiveness
Effective organization
Adaptable
Has high financial and technical
performance
Has satisfied and loyal customers or
other external stakeholders and an
engaged,
satisfied
and
learning
workforce
Trends
Globalization
o Changing
the
markets
and
environment in which orgs operate
as well as the way they function
Information technology
o Redefining the traditional business
model by changing how work is
performed, how knowledge is used,
and how the cost of doing business
is calculated
Managerial innovation
o Responded to the globalization and
information technology trends and
has accelerated their impact on
orgs

The Nature of Planned Change

Lewins Change Model
Change as a modification of those
forces keeping a systems behavior
stable
Forces
o Those striving to maintain the
status quo
o Those pushing for change
Steps
o Unfreezing
Reducing
those
forces
maintaining the orgs behavior
at its present level
Phychological disconfirmation
Introducing information that
shows
discrepancies
between behaviors desired
and current behavior
o Moving
Intervening in the system to
develop new behaviors, values
and attitudes through changes
in org structures and processes
o Refreezing
Stabilizes the org at a new state
of equilibirium
Lippit, Watson, Westley
o Unfreezing
Scouting
Entry
Diagnosis
o Moving
Planning
Action
o Refreezing
Stabilization
Evaluation
Termination
Kotter
o Unfreezing
Establishing a sense fo urgency
Creating the guiding coalition
Developing
a
vision
and
strategy
Communicating the change
o Moving
Empowering broad-based action
Generating short-term wins
o Refreezing
Consolidating
gains
and
producing more change

Anchoring new approaches in

the culture

Action Research Model

Iterative cycle of research and ction
Involves considerable collaboration
among organization members and OD
practitioners
Heavy emphasis on data gathering
and diagnosis prior to action planning
and implementation
Careful evaluation of results after
action is taken
Aimed
at
helping
specific
org
implement planned change and at
developing more knowledge that can
be applied to other settings
Steps
o Problem identification
o Consultation wiht a behavioral
science expert
Practitioner has his or her own
normative,
developmental
theory or frame of reference
Must
be
conscious
of
assumptions and values
o Data gathering and preliminary
diagnosis
Interviews
Process observation
Questionnaires
Organizational performance
Any
action
by
the
OD
practitioner can be viewed as
an intervention
o Feedback to key client or group
What is relevant and useful
o Joint diagnosis of the problem
Failure to establish a common
frame of reference in the clientconsultant
relationship
may
lead to a faulty diagnosis or to a
communication gap
o Joint action planning
Specific action to be taken
depends
on
the
culture,
technology and environment of
the org, diagnosis of the
problem, timing and expense of
the intervention
o Action
o Data gathering after action
Trends

o
o

Movement from smaller subunits of

org
to
total
systems
and
communities
Increasingly
applied
to
international settings
However, action research model
has
northern
hemisphere
assumptions about change
Applied increasingly to promote
social change and innovation
Growing tendency to involve org
members in learning about their
org and how to change it
Participatory action research
Action learning
Action science
Self-design
Emphasizes
the
need
for
organiation members to learn
firsthand about planned change
if they are to gain the
knowledge and skills needed to
change the organization

Positive Model
Focuses on what the organization is
doing righ
Builds off those capabilities
Through appreciative inquiry
o Infuses a positive value orientation
into
analyzing
and
changing
organizations
Social constructionism
o Assumes that org members shared
experiences
and
interactions
influence how they perceive the
organization and behave in it
Steps
o Initiate the inquiry
o Inquire into best practices
o Discover themes
No theme is too small
o Envision a preferred future
o Design and deliver ways to create
the future
Comparisons of change models
Models overlap on their emphasis on
action to implement org change is
preceeded by a preliminary stage and
is followed by a closing stage
All threee emphasize the application of
behavioral science knowledge, involve
org members and recognize that any

interaction constitutes an intervention

that may affect the org
Lewin and action
o consultant with limited member
involvement
o fixing problems
Positive
o consultant and participants as colearners
o leveraging on strengths

General model of planned change

Entering and contracting
o Help managers decide whether
they want to engage further in
planned change progress
o Problems or opportunities are
discussed with managers and other
org members to develop a contract
or agreement
o Contract spells out future change
activities, resources that will be
commited
and
how
OD
practitioners and org members will
be involved
Diagnosing
o Choosing an appropriate model for
understanding
the
org
and
gathering, analyzing and feeding
back info
o Explore 3 levels of activities
Org issues
Group-level issues
Individual issues
Planning and implementing change
o Criteria for designing interventions
Orgs readiness for change
Current change capability
Culture
Power distributions
Change agents skills and
abilities
o Types of interventions
Human process interventions
Modify an orgs structure and
technology
Human resources intervention
Strategic intervention
Evaluating and institutionalizing
Types of planned change
Magnitude of change
o Fundamental changes

Radically
altering
how
it
operates
Involve several org dimensions
and levels
o Incremental changes
Fine-tuning org
Involve limted dimensions and
levels
Occur within the context of the
orgs existing business strategy
and structure
Degree of organization
o Overorganized
Loosening
constraints
on
behavior
o Underorganized
Increasing organization
o Steps
Identification
Convention
Organization
Evaluation
Setting
o Domestic
o International
Od practitioner
Must develop a keen sense
of awareness of their own
cultural bias
Be open to seeing a variety
of issues from another
perspective
Be fluent in the values and
assumptions of the host
culture

Critique of planned change

More information is needed to guide
how those steps should be performed
in specific situations
o Org features that can be changed
o Intended outcome from making
those changes
o Causal mechanisms by which those
outcomes are achieved
Deficient in knowledge about how this
stages of planned change differ across
situations
More chaotic quality involving
o Shifting goals
o Discontinuous activities
o Surprising events

Unexpected
combinations
of
changes
In the face of increasing globalization
and technological changes, unlikely
that change will ever be over
Relationship between planned change
and
org
performance
and
effectiveness is not well understood

Practice of planned change

Rely on preconceptions of what the
problem is and hire consultants with
appropriate skills
Quick fixes
Other orgs have not recognized the
systemic nature of change
Changing any one part or feature of an
org often requires adjustments in
other parts to maintain alignment

The
Organization
Practitioner

Development

Interpersonal
skills
or
selfmanagement competence
o Know their own values, feelings
and purposes as well as the
integrity to behave responsibly
o Must have active learning skills and
a reasonable balance between
their rational and emotional sides
o Manage their own stress
Interpersonall skills
o Must establish rapport and trust
o Able to converse in members own
language
o Give and receive feedback about
how the relationship is progressing
General consultation skills
o Effective diagnisis
o Design and execute an intervention
Organization development theory
o General knowledge about OD

OD practitioner
Those specializing in OD
o External
o Internal
o Common set of humanistic values
Open communication
Employee involvement
Personal
growth
and
development
o Expansion
Organizational effectivenss
Competitiveness
Bottom-line results
Tehcnical,
structural
and
strategic parts
Those specializing in fields related to
OD
Managers and administrators who
have gained competence in OD and
who apply it to their own work areas
o Gained through interacting with OD
professionals in actual change
programs
Gaining
competence
may
take
considerable time and effort
Questionable whether the other two
types of OD practitioners also need
that full range of skills and knowledge

OD professionals
Position
o Internal
Advantage of ready access to
and relationships with clients,
know the language and have
insights
Basic level of rapport and trust
May be overly cautious
o External
Advantage of being able to
select the clients they want to
work with
Marginality
o One who successfully straddles the
boundary between two or more
groups with differing goals, value
systems and behavior patterns
o Qualities
Low dogmatism
Neutrality
Open-mindedness
Objectivity
Flexibility
Adaptable
informationprocessing ability
Emotionally demanding
Use of knowledge and experience
o Consultant
o Client

Basic skills and knowledge

Ethical dilemmas

Misrepresentation
o When OD practitioners claim that
an intervention will produce results
that are unreasonable for the
change program or situation
o When client portray inaccurate
goals and needs
Misuse of data
o Should have agreement with org
members about how data collected
will be used
Coercion
o Forced to participate
o Excessive manipulation
Freedeom to choose
Must remain keenly aware of
her or his own value system
o Dependency
Openly and explicitly discuss
with the client how to handle
the dependency problem
Focus on problem finding
Changing
the
clients
expectation
from
being
helped/controlled to a greater
focs on the need to manage the
problem
Value and goal conflict
o When the purpose of the change
effort is not clear or when the client
and the practitioner disagree over
how to achieve the goals
Technical ineptness
o When practitioner try to implement
intervention for which they are not
skilled
o When the client attempts a change
for which it is not ready
o When interventions do not align
with the ability of the org to
implement them

Entering and Contracting

Entering and contracting
Set the initial parameters
Can vary in complexity and formality
Entering
Clarifying org issue
o The presenting problem often has
an implied or stated solution
o Could be a symptom of an
underlying problem

Things may change as new

information is gathered and new
events occur
Determining relevant client
o Include those who can directly
impact the change issue
Selecting and OD practitioner
o Request
that
proposals
be
submitted
o Ability to form sound interpersonal
relationships
o Degreee of focus on the problem
o Skills relative to the problem
o Extent that the consultant clearly
informs the client as to his or her
role and contributions
o Whether the practitioner belongs to
a professional association
o References from other clients
o

Developing a contract
Mutual expectations
Time and resources to be devoted
o Essential requirements
Absolutely necessary if the
change process is to be
successful
o Desirable requirements
Nice to have
Ground rules
o Failure may mean that the client or
practitioner
has
inappropriate
assumptions
Interpersonal process issues
Client
o likely to feel exposed,inadequate,
or vulnerable
o May feel unable to control the
activities of the OD practitioner
OD
o may have feelings of emphathy,
unworthiness and dependency
o may overidentify
o may challenge clients motivation
and become defensive
Diagnosing Organization
Diagnosis
process of understanding a systems
current functioning

collaborative and does not accept the

implicit assumption that something is
wrong with the organization

Diagnostic models
conceptual frameworks that people
use to understand organizations
describe the relationships among
different
features,
context
and
effectiveness of the organization
point out what areas to examine and
what questions to ask in assessing
how an organization is functioning
Open systems model
introduces systems theory
o set of concepts and relationships
describing the properties and
behaviors of things
recognizes that organizations exist in
the context of a larger environment
that affects how the organization
performs and in turn is affected by
how the organization interacts with it
orgs operate within an external
environment, takes specific inputs
fromt he environment and transforms
those input using social and technical
processes
outputs of the transformation are
returned to the environment and can
be used as a feedback to the orgs
functioning
suggests
that
orgs
and
their
subsystems share a number of
common features
properties
o environment
cannot completely control their
own
behavior
and
are
influenced in part by external
forces
o inputs
part of and acquired from the
orgs external environment
o transformation
processes of converting inputs
into outputs
o outputs
results of what is transformed
by the system and sent to the
environment
o boundaries
permeable border

defining boundaries of social

systems
is
more
difficult
because there is continuous
inflow and outflow
boundary
line
for
one
subsystem may not be the
same as that for a different
subsystem
varies from fixed to diffuse
conflict is always a potential
problem
feedback
information regarding the actual
performance or the output
results of the system
only information used to control
the future functioning of the
system
equifinality
suggests that similar results or
outputs may be achieved with
different initial conditions and in
many different ways
alignment
characteristic of the relationship
between two or more parts
extent to which the features,
operations and characteristics
of one system support the
effectiveness of another
systems overall effectiveness is
partly determined by the extent
to
which
the
different
subsystems are aligned with
each other

Levels of diagnosis using open systems

model
Organization
o Strategy
o Structure
o Processes
o
Group
o Group design
o Devices for structuring interaction
Individual
o Job design

Diagnosis can occur at all three org levels

Key to effective diagnosis is knowing what
to look for at each level as well as how
the levels affect each other

Org levels must fit with each other if the

org is to operate effectively

Strategic orientation
Combination of
elements

design

component

Organization Level Diagnosis

Input
o Environment Types
General environment
External forces and elements
that can influence an org
and affect its effectiveness
Task environment
Industry structure
Five forces
Supplier power
Buyer power
Threats of substitutes
Threats of entry
Rivalry
among
competitors
Rate of change
Dynamic
Change
rapidly
and
unpredictably
High in uncertainty
Static
Do not change frequently
or dramatically
Complexity
Number
of
important
elements in the general
environment and industry
structure
Enacted environment
Org members perception
and representation of its
general
and
task
environment
Only this can affect which
org responses are chosen
o Environmental Dimensions
Characterized along dimensions
that describe the orgs context
and influence its responses
Information uncertainty
Information orgs need to
process info to discover how
to
relate
to
their
environments
Resource dependence

Consisting of resources for

which orgs compete
Design components
o Strategy
Represents the way an org uses
its resources to achieve its
goals and gain competitive
advantage
Intent
Describes how the org
intends to leverage five
dimensions of strategy
Five dimensions
Breadth
Aggresiveness
Differentiation
Orchestrate short-term with
long-term goals
Economic logic
Functional policies
Methods, procedures, rules
or administrative practices
that guide decision making
and convert plans into
actions
o Technology
Way an org converts inputs into
products and services
Core transformation process
Technical interdependence
Influence
other
design
components
Ways in which the different
parts of a technological
system are related
Technical uncertainty
Influence
other
design
components
Amount of info processing
and
decision-making
required
o Structure
How attention and resources
are
focused
on
task
accomplishment
Divide the overall work of an
org into subunits
Coordinate these subunits
Needs to be closely aligned with
orgs technology
Formal structure
Level fo differentiation
Level of integration

Function
of
amount
of
uncertainty
in
the
environment
Level of differentiation in the
structure
Amount of interdependence
among departments
o Measurement systems
Methods of gathering, assessing
and disseminating info
Tell how well the org is
performing
Used to detect and control
deviations from goals
o Human resource systems
Mechanisms
for
selecting,
developing,
appraising,
rewarding org members
o Culture
Basic assumptions, values and
norms shared by org members
Outcome of the orgs hisotry
and environment and prior
choices
Constraint in that it is more
difficult to change than the othe
components
Outputs
o Organization performance
Financial output
o Productivity
Internal measures of efficiency
o Stakeholder satisfaction

Alignment
Orgs strategic orientation fit with the
inputs
Design components fit with each other

Diagnosing Groups and Jobs

Group level diagnosis
Inputs
o Organization design
Technology
Determine
the
characteristics of the groups
task
Structure
Specify
the
level
of
coordination required among
groups
Measurement systems
Determine team functioning

Human resources systems

Determine team functioning
Organization culture
Design Components
o Goal clarity
How well the group understands
its objectives
o Task structure
How the groups work is
designed
Coordination
of
members
efforts
Degree to which group tasks
are structured to promote
effective interaction among
group members
Regulation
of
their
task
behaviors
Degree to which members
can control thei own task
behaviors and be relatively
free from external controls
o Group composition
Membership of groups
o Team functioning
How members relate to each
other
Quality of relationships can
affect task performance
o Performance norms
Member beliefs about how the
group should perform its task
and include acceptable levels of
performance
Outputs
o Performance
Groups ability to control or
reduce costs
Increase productivity
Improve quality
o Quality of work life
Work satisfaction
Team cohesion
Organizational commitment

Group design should be congruent with

the larger organization design
differentiation integration should have
highly skilled and experienced members
performing highly interdependent tasks
Differentiated structures and formalized
HR and info systems have clear,
quantitative goals and that support
standardized behaviors

When
orgs
technology
results
in
interdependent tasks coordination
promoted by goal clarity, task structure,
group composition, performance norms
and team functioning
When technology is relatively uncertain
and requires high amounts of info
processing and decision making task
structure,
group
composition,
performance norms and team functioning
should promote self-regulation

Individual level diagnosis

Inputs
o Org design
Larger org
Powerful impact on the way jobs
are designed and on peoples
experiences in jobs
o Group design
Larger group containing the
individual job
More immediate impact on jobs
o Personal
characteristics
of
jobholders
Age
Education
Experience
Skills and abilities
Affect
job performance
peoples reaction to job
designs
employee job responses
Design components
o Skill variety
Identifies the degree to which a
job requires a range of activities
and abilities to perform the
work
o Task identity
Degree to which a job requires
the completion of a relatively
whole, identifiable piece of work
o Task significance
Degree to which a job has a
significant impact on other
peoples lives
o Autonomy
Degree to which a job provides
freedom and discretion in
scheduling
the
work
and
determining work methods
o Feedback

Degree to which a job provides

employees with direct and clear
info about the effectiveness of
task performance

Job design should be congruent with the

larger org and group designs within which
the job is embedded
Highly differentiated and integrate orgs
and groups that permit members to selfregulate enriched jobs
Job design should fit the personal
characteristics of the jobholders
Enriched jobs fit people
o with strong growth needs
o moderate to high levels of task
relevant
skills,
abilities
and
knowledge

Collecting and
Information

Analyzing

Diagnostic

Nature of relationship between OD and

client affects the quality and usefulness
of the data collected

Diagnostic contract should answer

Who am I
Why am I here and what am I doing
Who do I work for
What do I want from you
How will I protect your confidentiality
Who will have access to the data
Whats in it for you
Can I be trusted
Data collection
Goals
o Obtain valid information
o Rally
energy
for
constructive
organizational change
o Develop
the
collaborative
relationship necessary for effecting
org change
Methods
o Questionnaires
Advantages
Responses can be quantified
and easily summarized
Easy to use with large
samples
Relatively inexpensive

Can obtain large volume of

data
Disadvantages
Nonempathy
Predetermined
questions/missing issues
Overinterpretation of data
Response bias
Interviews
Advantages
Adaptive
Allows data collection on
a
range
of
possible
subjects
Source of rich data
Empathic
Can build rapport
Disadvantages
Expense
Bias in interview responses
Coding and interpretation
difficulties
Self-report bias
Group interviews
Save time and allow people
to build on others responses
May inhibit people from
responding freely
Observations
Advantages
Collects data on behavior
Real time, not retrospective
Adaptive
Disadvantages
Coding and interpretation
difficulties
Sampling inconsistencies
Observer
bias
and
questionable reliability
Expense
Which people to observe
Time periods
Territory
Events in which people to
observe
Unobtrusive measures
Advantages
Nonreactive
No response bias
High face validity
Easily quantifiable
Disadvantages

Access
and
retrieval
difficulties
Validity concerns
Coding and interpretation
difficulties

Sampling
Sample size
o Function of
population size
Confidence
desired in
the
quality of data
Resources
o The larger the population, the more
complex the client system, the
more difficult to establish a right
sample size
o The larger the proportion of the
population that is selected, the
more confidence one can have
about quality of data
Sample selection
o Random sample
o Stratified sample
Segmented into a number of
mutually
exclusive
subpopulations and a random
sample is taken from each
subpopulation
Data anlaysis
Qualitative
o Do not rely on numerical data
o Easier to understand and interpret
o Open to subjective bias
o Content analysis
Summarize
comments
into
meaningful categories
o Force-field analysis
Forces for change
Forces against change
Quantitative
o More accurate readings of the org
problems
o Means
Respondents average score
Different responses can lead to
the same mean score
o Standard deviations
Spread or variability of the
responses
o Frequency of distributions
Graphical method for displaying
data that shows the number of

times a particular response was

given
Scattergrams
Measures of the strength of a
relationship
between
two
variables
Diagram that visually displays
the relationship between two
variables
Patterns
Positive
xy
Negative
xy
Shotgun
No relationship between
x and y
Correlation coefficients
Measures of the strength of a
relationship
between
two
variables

Number that summarizes data

in a scattergram
+1.0 to -1.0
+1.0 positive relationship
-1.0 negative relationship
0 shotgun
Difference tests
Used to compare a sample
group against some standard or
norm
Used to determine whether two
samples
are
significantly
different
Used to determine whether a
group has changed its score
over time

Feeding Back Diagnostic Information

Key objective of feedback process is to be

sure that the client has ownership of the
data
Success of feedback depends largely on
its ability to arouse the organizational
action and to direct energy toward
organizational problem solving

Characteristics of feedback data

Relevant
o Including managers and employees
in the initial data collection
activities
can
increase
the
relevance of the data

Understandable
Descriptive
Verifiable
Timely
o As quickly as possible after being
collected
Limited
o Limited to what employees can
realistically process at one time
Significant
o Limited to those problems that the
organization members can do
something about
Comparative
Unfinalized

Characteristics of feedback process

Motivation to work with the data
Structure for the meeting
Appropriate attendance
Appropriate power
Process help
Survey feedback
Process of collecting and feeding back
data from an org or department
through the use of a questionnaire or
survey
Steps
o Members of org are involved in
preliminary planning of the survey
Clear about the level of analysis
Objectives of the survey
o Survey instrument is administered
to all members of the org
o OD consultant analyzes the survey
data, tabulates results, suggests
approaches to diagnosis, and trains
client members to lead the
feedback process
o Data feedback begins at the top of
the org and cascades downward
o Feedback meetings provide an
opportunity to work with the data
Should vary depending on how closely
the participating units are linked with
one another
Limitations
o Ambiguity of purpose
o Distrust
o Unacceptable topics
o Org disturbance

Designing Interventions

OD intervention
Sequence of activities, actions and
events intended to help an org
improve
its
performance
and
effectiveness
Deliberate attempts to change an org
Criteria
o Extent to which it fits the org
Based on valid info
Provide org members with
opportunities to make free and
informed choices
o Degree to which it is based on
causal knowledge of intended
outcome
o Extent to which it transfers change
management competence to org
members
Contingencies
that
affect
intervention
success
Related to change situation
o Individual differences among org
members
o Org factors
o Dimensions of the change process
o Readiness for change
Sensitivity to pressures for
change
Dissatisfaction with the status
quo
Availability of resources to
support change
Commitment
of
significant
management time
o Capability to change
Function
change-related
knowledge
and skills present
resources
and
systems
devoted to change
orgs
experience
with
change
o Cultural context
Can exert a powerful influence
on members reactions to
change
o Capabilities of the change agent
Related to target of change
o Org issues that the intervention is
trying to resolve
Strategic

Intergrated strategic change

Mergers and acquisitions
Alliance
and
network
development
Org learning
Technological and structural
issues
Org design
Employee involvement
Work design
Human resource issues
Attracting people
Setting goals
Appraising and rewarding
Developing careers
Managing stres
Human process issues
Communication
Decision making
Leadership
Group dynamics
Conflict resolution
Team building
Interrelated and need to be
integrated with one another
Level of org systems at which the
intervention is expected to have an
impact
Design intervention to apply to
specific org levels, address the
possibility of cross-level effects
and
integrate
interventions
affecting different levels

Interventions
Human process interventions
o Process consultation
Focuses
on
interpersonal
relations and social dynamics
Aim is to help members gain the
skills
and
understanding
necessary to identify and solve
problems themselves
o Third party intervention
Aimed
at
dysfunctional
interpersonal relations
Problem solving
Bargaining
Conciliation
o Team building
Help work groups become more
effective in accomplishing tasks
o Organization
confrontation
meetings

Identify problems
Set action targets
Begin working on problems
When orgs are experiencing
stress
When org needs to mobilize
team for immediate problem
solving
o Intergroup relations
Improve interaction
o Large group interventions
Getting a broad variety of
stakeholders
into
a
large
meeting to clarify important
values
Develop new ways of working
Articulate new vision
Solve pressing org problems
Tehcnostructural interventions
o Structural design
Orgs division of labor
o Downsizing
Reduces costs and bureacracy
by decreasing the size of org
o Reengineering
Redesigns the orgs core work
processes
Human
resources
management
interventions
o Goal setting
Clear and challenging goals
o Performance appraisal
Jointly assessing work-related
achievements, strengths and
weakness
Link between goal setting and
reward systems
o Reward systems
o Coaching and mentorig
One-on-one
relationship
between OD and client
Focuses on personal learing
o Career planning and development
Helps people choose org career
paths
and
attain
career
objectives
o Management and leadership
Building
the
competencies
needed to lead the org
o Managing workforce diversity
Makes HR practicies responsive
to a variety of individual needs
o Emplyee stress and wellness

Employee assistance program

Stress management
Strategic intervention
o Integrated strategic change
Business strategies and org
systems must be changed
together in response to external
and internal disruptions
Helps members manage the
transition between a current
strategy and org design
o Org design
Alignment and support each
other
o Culture change
Develop cultures appropriate to
their strategies
o Mergers and acquisitions
Two or more org forms a new
entity
Address
key
strategic,
leadership and cultural issues
prior to the legal and financial
transaction
o Alliances
Helps two orgs pursue a set of
common goals through sharing
of resources
Strategy formulation
Partner selection
Alliance structuring and start-up
Alliance
operation
and
adjustment
o Networks
Helps
develop
relationships
among three or more orgs to
perform tasks or solve problems
Address how to manage change
within existing network
o Self-designing orgs
Gain the capacity to alter
themselves fundamentally
o Org
learning
and
knowledge
management
Seeks to enhance an orgs
capability
to
acquire
and
develop new knowledge
Focuses on how that knowledge
can be organized and used to
improve org performance
o Built to change orgs
Challenges traditional principles
that
view
stability
and

equilibrium as the keys to

success
Assume that the source of
effectiveness is the ability to
change continuously

Leading and Managing Change

Traditionally, change management has

focused
on
identifying
sources
of
resistance to change and offering ways to
overcome them

Activities contributing to effective change

management
Motivating change
o Creating a reason for change
Sensitize org to pressures for
change
Encouraging
leaders
to
surround themselves with
devils advocates
Cultivating
external
networks
comprise
that
comprise of people with
different perspectives
Visiting other org to gain
exposure to new ideas
External
standards
of
performance
Reveal discrepancies between
current and desired states
Convey
credible
positive
expectations for the change
o Help address resistance to change
Tehcnical resistance
Habit of following common
procedures
and
consideration of sunk costs
Political resistance
Change threaten powerful
stakeholders
Cultural resistance
Form
of
systems
and
procedures that reinforce the
status quo
Strategies
Empathy and support
Communication
Participation
and
involvement
o People are willing to change only
when there are compelling resons
to do so

Creating a vision
o Provides purpose and reason for
the change
o Describes the desired future state
o 2 parts
Core ideology
Core values
Basic principles or beliefs
Values in use
Discovered and described
through a process of
inquiry
Core purpose
Reason for being
Idealistic motivation
Envisioned future with bold
goals and vivid description of
desired future state
Specific
to the
change
project
Developing political support
o Composed of powerful individuals
and groups that can either block or
promote change
o OD practitioners can use power in
positive ways
Build their own power base to
gain access to other power
holders
Use power strategies that are
open and aboveboard to get
those in power to consider OD
applications
Facilitate
processes
for
examining the uses of power in
org
Help power holders devise more
creative and positive strategies
Help power holders confront the
need for change
Help ensure that interests and
concerns of those with less
power are considered
o Assess change agent power
To determine how to use it to
influence others to support
changes
Can identify areas in which they
need to enhance their sources
of power
o Identify key stakeholders
o Influencing stakeholders

o
Managing the transition
o Activity planning
Road map for change
Specific activities and change
Clearly identify, temporarilly
orient and integrate discrete
change tasks
Explicitly link these tasks to the
orgs goals and principles
o Commitment planning
Identifying key people and
groups whose commitment is
needed for change to occur
o Planning
special
management
structures
Include people who have the
power to mobilize resources to
promote change, respect of
existing leadership and change
advocates and interpersonal
and political skills to guide the
change
o Learning processes
Creating a system view of the
org
Creating a model of work
and change that allows
individual org members to
see
how
theyir
efforts
contribute to org functioning
and performance
Creating shared meaning
Use of models, languages,
tools and processes that
provide people with a way to
making sense of change
Engaging in after-action reviews
When people get timely
support and feedback about
their behaviors, their ability
to
learn
more
quickly
increases
Decentralizing implementation
processes and decisions to
lower levels
Sustaining momentum

o
o

Providing
resources
for
implementing change
Provide buffer as performance
drops during transition
Builing support systems for change
agents
Maintain psychological distance
Consists of network of people
with whom the change agent
has close personal relationships
Developing new competencies
Technical competencies
Social skills
Reinforceing the new behaviors
Linking formal rewards directly
to the desired behaviors
Staying the course
Reasons for not having a steady
focus
on
change
implementation
Fail to anticipate the decline
in performance, productivity
and satisfaction
Implement the next big idea
that comes along

Evaluating
and
Organization
Interventions

Institutionalizing
Development

Evaluation
Concerned with providing feedback to
practitioners
and
organization
members about the progress and
impact of interventions
Types
o Intended
to
guide
the
implementation of intervention
During-implementation
assessments
If and how well changes are
actually being implemented
Data about different features of
the intervention
Perceptions
of
the
people
involved
Data about the immediate
effects of intervention
o Assess the overall impact
After-implementation
assessments
Producing expected results
Whether
resources
should
continue to be allocated

Key issues
o Measurement
Selecting appropriate variables
Should incorporate the key
features of the intervention
Incorporate expected results
Intervention variables
Helps
determine
the
correct interpretation of
outcome variables
Outcome variables
Participation membership
Performance on the job
Ambiguous
without
knowledge of how well
the intervention has been
implemented
Designing good measures
Operational definition
Specifies empirical data
needed
How
they
will
be
collected
How
will
they
be
converted from data to
information
Provide guidelines about
what characteristics of
the situation are to be
observe and how they are
to be used
Reliability
Extent
to
which
a
measure represents the
true value of a variable
Rigorously
and
operationally define the
chosen variables
Use multiple methods to
measure
a
particular
variable
Use multiple items to
measure
the
same
variable
in
a
questionnaire
Use
standardized
instruments
Validity
Extent
to
which
a
measure actually reflects
what is intended to
reflect
Content validity

Ask colleagues and

clients if a proposed
measure
actually
represents a particular
variable
Criterion or convergent
validity
Use
multiple
measures of the same
variable
Discriminant validity
Exists
when
the
proposed
measure
does not correlate
with measures that it
is not supposed to
correlate with
Predictive validity
Variable of interest
accurately
forecasts
another variable over
time
Research design
Internal validity
Whether the intervention did
in fact produce the observed
results
Testing a hypothesis
Specific org changes lead
to certain outcomes
Problems
Complex
and
often
several
interrelated
changes are done
Long-term projects
Apllied to existing work
units
Quasi-experimental research
desing
Longitudnal
measurement
Measuring
results
repeatedly
over
relatively long time
periods
Comparison unit
Compare results in
intervention situation
with those in another
situation where no
such
change
has
taken palce
Statistical analysis

To
rule
out
the
possibility that the
results are caused by
random
error
or
change
Multiple mesures
Assessing perceptual
changes
resulting
from interventions
Alpha
Movement
along
a
measures that
reflects stable
dimensions
of
reality
Beta
Recalibration of
the
intervals
along
some
constant
measure
of
reality
Gamma
Redefining the
measure as a
result of an OD
intervention
External validity
Whether the intervention
would work similarly in other
situations

Decisions about measurement of relevant

variables and design of evaluation
process should be made early in the OD
cycle so that evaluation choices can be
integrated with intervention decisions

Institutionalization
Process for maintaining a particular
change for an appropriate period of
time
Framework
o

Antecedents
o Organization characteristics

Congruence
Degree
to
which
an
intervention is perceived as
being in harmony with the
orgs managerial philosophy,
strategy,
structure
and
current environment
Make it easier to gain
commitment
Make it easier to diffuse it to
wider segments
Stability of environment and
technology
Degree
to
which
orgs
environment and technology
are changing
Stable favored
Unionization
May be difficult to diffuse
interventions
Mahy be a power ful force for
promoting change
Intervention characteristics
Goal specificity
Extent to which intervention
goals are specific
Helps
direct
socializing
activities
to
particular
behaviors
Programmability
Degree to which changes
can be programmed
Extent to which the different
intervention characteristics
can be specified clearly in
advance
Level of change target
Extent to which the change
target
is
the
total
organization
Each level of org has
facilitators and inhibitos of
persisitence
Departmental
and group
change
Susceptible
to
countervailing
forces
from others in org
Wider segments
Can
help
or
hinder
change persistence
Internal support

Degree to which there is an

internal support system to
guide the change process
Sponsorship
Concerns the presence of a
powerful sponsor who can
initiate,
allocate
and
legitimize resources
Process
o Socialization
Transmission of info about
beliefs, preferences, norms and
values with respect to the
intervention
continuous
o Commitment
Binds people to behaviors
associated with the intervention
o Reward allocation
Linking rewards to the new
behaviors
Can reinforce new behaviors
New behaviors will persist to the
extent
that
rewards
are
perceived as equitable by
employees
o Diffusion
Process of transferring changes
from one system to another
Facilitates institutionalization by
providing a wider org base to
support the new behaviors
Lock in behaviors by providing
normative consensus
o Sensing and calibration
Detecting
deviations
from
desired intervention behaviors
and taking corrective action
Indicators of institutionalization
o Knowledge
Extent to which org members
have
knowledge
of
the
behaviors associated with an
intervention
o Performance
Degree to which intervention
behaviors
are
actually
performed
o Preferences
Degree to which org members
privately
accept
the
org
changes
o Normative consensus

Extent to which people agree

about the appropriateness of
the org changes
How fully changes have become
part of the normative structure
Value consensus
Concerned
with
social
consensus on values relevant to
the org changes
OD
intervention
is
fully
institutionalized only when all five
factors are present

Interpersonal
Approaches

and

Group

Process

Attempts to improve peoples working

relationships with one another
Helping members of group assess their
interactions and devise more effective
ways of working

Process consulation
Creation of relationship that permits
the client to perceive, understand and
act on the process events that occur in
internal and external environment in
order to improve the situation as
defined by the client
Assess and improve human processes
Principles
o Always try to be helpful
o Always stay in touch with the
current reality
o Access your ignorance
o Client owns the problem and the
solution
o Go with the flow
o Time is crucial
o Be
constructively
opportunistic
with confrontive interventions
o Everything is information; errors
always occur and are the prime
sources for learning
o When in doubt, share the problem
Group processes
o Communication
Nature
and
style
of
communication
o Functional role of group members
Keenly aware of the different
roles individual members take
on in the group

Group
problem
solving
and
decision making
o Group norms
Assisting group to understand
and articulate its own norms
Determine whether those norms
are helpful or dysfunctional
o Use of leadership and authority
Interventions
o Individual
Help people be more effective in
their communication with others
Johari window

Guidelines
on
effective
feedback
Giver and receiver must
have consensus on the
receivers goals
Giver
should
emphasize
descriptiona
and
appreciation
Giver should be concrete
and specific
Giver and receiver must
have constructive motives
Giver should not withhold
negative feedback
Giver
should
own
his
observations, feelings and
judgements
Feedback should be time to
when giver and receiver are
ready
Group
Aimed at the process, content
or structure of groups
Process intervention
Sensitize the group to its
own internal processes and
and generate interest in
analyzing them
Content intervention
Determine what it works on
Structural intervention

Examine the stable and

recurring
methods
to
accomplish tasks and deal
with external issues

Results
o Difficult to evaluate because it is
conducted with groups performing
mental tasks
o Difficult because it is combined
with other interventions
o Used peoples perception, not hard
performance measures

Third party interventions

Focus on conflicts arising between two
or more people within the same org
Vary considerably depending on the
kind of issues underlying the conflict
Cannot
resolve
all
interpersonal
conflicts
o Episodic
o Has both costs and benefits
Conflict resolution
o Prevent the ignition of conlfict by
arriving at a clear understanding of
the factors and thereafter avoiding
or blunting them
o Set limits on the limit on the form
of conflict
o Help the parties cope differently
with the consequences of conflict
o Eliminate or to resolve the basic
issues causing the conflict
Facilitating
conflict
resolution
ingredients
o Mutual motivation to resolve the
conflict
o Equality of pwer between the
parties
o Coordinated attempts to confront
the conflict
o Relevant stages of identifying
differences and of searching for
integrative solutions
o Open and
clear forms of
communication
o Productive levels of tension and
stress
Team building
Helps group improve the way they
accomplish tasks, help members
enhance their interpersonal and

problem-solving skills and increase

team performance
Types of teams
o Groups reporting to the same
supervisor
o Groups involving people with
common org goals
o Temporary groups formed to do a
specific, one-time task
o Groups consisting of people whose
work roles are interdependent
o Groups whose members have no
formal links in the org but whose
collective purpose is to achieve
tasks they cannot do alone
Factors that affect the outcomes
o Length of time allocated to the
activity
o Teams willingness to look at its
processes
o Length of time members have been
working together
o Teams permanence
Classification
o Level
One or more individual
Groups
ooperation
and
behavior
Groups relationship with the
rest of the org
o Orientation
Diagnostic
Development
Activities
o One or more individual
Diagnostic
Instruments, interviews and
feedback to understand style
and motivations of group
members
Development
Coaching
360 degree feedback
Third party intervention
o Group operations and behavior
Diagnostic
Surveys,
interviews
and
team
meetings
to
understand
the
groups
processes and procedures
Development
Role clarification
Mission
and
goal
development

Decision-making processes
Normative change
o Relationships with the org
Diagnostic
Surveys and interviews to
understand how the group
relates to its org context
Development
Strategic planning
Stakeholder analysis
Manager ultimately is responsible for
all team-building activities
Goal of the consultants presence is to
help the manager learn to continue
team development processes with
minimum consultant help
Affects the quality of performance
Goal setting affects the quantity of
performance
Can improve group performance
o Complex,
unstructured
and
interdependent tasks
Process over time
Perform
personal
management
interviews
o Follow-up intervention that arrests
the potential fade-out effects of offsiteteam building
o Leader negotiates roles with each
member
o Holds regular meetings with each
member to resolve problems and
increase personal accountability

Organization Process Approaches

Organization confrontation meeting
Helps mobilize the problem-solving
resources by encouraging members to
identify and confront pressing issues
Useful
o when org is under stress
o when there is a gap between the
top and the rest of the org
Steps
o Group meeting of all thos involved
is scheduled and tasked to identify
problems related to the work
environment and effectiveness of
the org
o Groups are appointed representing
all departments
Subordinate should not be in
the same group as his or her

o
o
o

o
o
o

o
o

boss and management should

form its own group
Groups are to be open and honest
Groups are given an hour or two to
identify org problmes
Groups then reconvene and each
group
reports
the
problems
identified and sometimes offers
solutions
Master list of problems is broken
down into categories to eliminate
duplication and overlap
Participants
are
divided
into
problem-solving groups
Each group ranks the problems,
develops a tactical action plan and
determines an appropriate time
table
Each group periodically reports its
list of priorities and tactical plans of
actions
Schedules for periodic follow-up
meetings are established and team
leaders
report
their
teams
progress and plans for future action

Intergroup relations
Consists of two interventions
o Intergroup
conflict
resolution
meeting
Specifically
oriented
toward
conflict processes
Applies where there is little
interdependence
Basic strategy is to change the
perceptions that the two groups
have of each other
Steps
External consultant obtains
the two groups agreement
to work directly on improving
intergroup relationships
Time is set for the two
groups to meet
Time is seet for the two
groups to meet
Consultant describes the
purpose and objectives of
the meeting and presented
with the following questions
What
qualities
or
attributes best describe
our group

What
qualities
or
attributes best describe
the other group
How do we think the
other group will describe
us
Two groups establish norms
of openness for feedback
and discussion
Two groups are assigned to
separate rooms and asked to
write
answers
to
the
questions
Two groups reconvene and a
representative from each
group presents the written
statements
Only the representatives
are allowed to speek
Groups separate again
Groups analyze and review
the
reasons
for
the
discrepancies
How
did
these
perceptions occur
What actions on the part
of our group may have
contributed to this set of
perceptions
Meet again to share both the
identified discrepancies and
their
problem-solving
approaches
Open discussion
Groups deelop specific plans
of action
At
least
one-follow
up
meeting
Approaches
Behavioral
Oriented to keeping the
relevant
parties
physically separate and
specifying the limited
conditions under which
interaction will occur
Little attempt is made to
understand or change
how members of each
group see the other
Applicable in situations in
which
task
interdependence
between the conflicting

groups is relatively low

and predictable
Attitudnal
Directed at changing how
each group perceives the
other
Difficult
When
task
interdependence
between the conflicting
groups
is
high
and
unpredictable
o Microcosm groups
Generic systemwide change
strategy
A small number of individuals
who reflect the issue being
addressed
Work through parallel processes
Unconscious changes that
take place in individuals
when two or more groups
interact
Steps
Identify an ussue
Convene the group
Group membership needs
to reflect the approprate
mix
of
stakeholders
related to the issue
Group
becomes
responsible
for
determining
its
membership
Provide group training
Problem solving
Decision training
Address the issue
Communication
plan
should
link
group
activities to the org
Group members need to
be visible and accessible
to management and labor
There should be an
appropriate
lelve
of
participation
by
org
members
Dissolve the group
Aimed at diagnosing and addressing
important organization-level processes
Importance
o Groups often must work with and
through other groups

o
o

Groups within the org often create

problems and place demands on
each other
Quality
of
the
relationships
between groups can affect the
degree of org effectiveness

Large-group interventions
Get a whole system into the room and
create processes that allows a variety
of
stakeholders
to
interact
simultaneously
Can be used to clarify important
organization values, develop new
ways of looking at problems, articulate
a new vision for the organization,
solve
cross-functional
problems,
restructure operations or devise an
organizational strategy
Focus on issues that affect the whole
organization
Defining feature is the bringing
together of large numbers of org
members and other stakeholders
Interventions
o Open systems thinking
o Participation
Suggests that a variety of org
stakeholders must be involved
to create an accurate view of
the environment and org
o Social constructionism
Suggests
that
only
be
developing
a
shared
understanding
of
the
environment and the org among
these stakeholders can common
ground
be
found
and
coordinated action be possible
o Self management
Proposes
that
large-group
processes must create the
conditions for ownership and
commitment
Steps
o Preparing for the meeting
Design team is formed
Addresses 3 key ingredients
Compelling
meeting
theme
Appropriate participants
Relevant tasks to address
the team
o Conducting the meeting

Frameworks
Open systems methods
Help org assess their
environments
systematically
and
develop
strategic
responses to them
Steps
Map
the
current
environment
surrounding the org
Assess
the
orgs
responses
to
environmental
expectations
Identify
the
core
mission of the org
As
revealed
by
orgs behaviors
Create
a
realistic
future
sceario
of
envrionmental
expectations and org
responses
Create an ideal future
scenario
of
environmental
expectations and org
responses
Compare the present
with the ideal future
and prepare an action
plan for reducing the
discrepancy
Open space methods
By imposing a minimal
level of formal structure
Steps
Set the conditions for
self-organizing
Norms
Law of two feet
Encourages
people
to
take
responsibilit
y for their
own
behavior
Four principles
Whoever
comes is the
right people

Intended
to
free
people to
begin
conversa
tions with
anyone
at
any
time
- Signals
that
quality of
a
conversa
tion
is
whats
most
importan
t
Whatever
happens is
the
only
thing
that
could have
- Infuses
the group
with
responsib
ility,
enocurag
es
participa
nts to be
flexible
and
prepares
the to be
surprised
Whenever it
starts is the
right time
- Aimed at
encourag
ing
creativity
and
following
the
natural
energy of
the group
When it is
over, it is
over
- Allows
people to

move on
and not
feel like
they
have to
meet for
a certain
time
period or
satisfy
someone
elses
requirme
nts
Create the agenda
Person announcing
the topic agrees to
convene
the
meeting
at
the
posted time and
place
Participants
sign
up as many of the
sessions as they
have interests in
Coordinate
activity
through informatin
Each morning and
evening
a
community
meeting is held to
announce
new
topics
As the different
meetings
occur,
the
conveners
produce one-page
summaries of what
happened,
who
attended,
what
subjects
were
discussed,
and
what
recommendations
or actions were
proposed

Positive methods
Steps
Discover the orgs
positive core
Participants
pair
up with another
person
and
conduct
an

appreciative
interview
Pairs join up with
three other pairs to
discuss
their
answers
Conversations are
aggregated
to
reate a broad and
inclusive
list
of
success
factors
and other themes
Dream
about
and
envision
a
more
desired and fulfilling
future
Design the structural
and
systems
arrangements that will
best
reflect
and
support the vision or
dream
Create the specific
action plans that will
fulfill the orgs destiny
Four key dilemmas of large
group interventions
Dilemma of voice
Problem of encouraging
participation
Problem
of
being
overwhelmed
if
each
individual wants to speak
Dilemma of structure
How tightly or loosely the
meeting
should
be
organized
Egocentric dilemma
Problem
of
people
holding on to their own
personal views of right or
wrong, better or worse
Dilemma
of
emotional
contagion
Group dynamic where
many people take on the
frustrations or excitement
of others
groupthink
Following-up on outcomes
Vital to implementing the action
plans
Communicating the results of
the meeting to the rest of the
org

Gaining wider commitment to

the changes
Structuring the change process

Restructuring Organizations
Structural design
Describes how the overall work of the
org is divided into subunits and how
these subunits are coordinated for
task completion
Fit with four factors
o Environment
o Org size
o Technology
o Org strategy
Functional departments
Task specialized
Advantages
o Promotes skill specialization
o Reduces duplication of scarce
resources and uses resources full
time
o Enhances career development for
specialists
within
large
departments
o Facilitates
communication
and
performance because superiors
share
expertise
with
their
subordinates
o Exposes specialists to others within
the same specialty
Disadvantages
o Emphasizes routine tasks, which
encourages short time horizons
o Fosters parochial perspectives by
managers
which
limit
their
capabilities
top-management
positions
o Reduces
communication
and
cooperation between departments
o Multiplies the interdepartmental
dependencies which can make
coordination
and
scheduling
difficult
o Obscures accountability for overall
outcomes
Contingencies
o Stable and certain environment
o Small to medium size
o Routine
technology,
interdependence within functions

Goals of efficiency and technical

quality

Self-contained divisional units

Oriented
to
specific
products,
customers or regions
Formal structure
within a selfcontained unit is functional in nature
Advantages
o Recognizes
sources
of
interdepartmental dependencies
o Fosters an orientation toward
overall outcomes and clients
o Allows
diversification
and
expansion of skills and training
o Ensures
accountability
by
departmental managers and so
promotes delegation of authority
and responsibility
o Heightens departmental cohesion
and involvement in work
Disadvantages
o May use skills and resources
inefficiently
o Limits career advancement by
specialists to movements out of
their departments
o Impedes specialists exposure to
others within the same specialties
o Puts multiple-role demands on
people and so creates stress
o May
promote
departmental
objectives
Contingencies
o Unstable
and
uncertain
environments
o Large size
o Technological
interdependence
across functions
o Goals of product specialization and
innovation
Matrix
Combine functional specialization and
self-containment
Advantages
o Makes
specialized,
functional
knowledge available to all projects
o Uses people flexibly because
departments maintain reservoirs of
specialists
o Maintains consistency between
different departments and projects

by forcing communication between

managers
o Recognizes
and
provides
mechanisms
for dealing with
legitimate, multiple sources of
power in the org
o Can
adapt
to
environmental
changes by shifting emphasis
between project and functional
aspects
Disadvantages
o Can be very difficult to introduce
without a preexisting supportive
management climate
o Increases role ambiguity, stress
and anxiety by assigning people to
more than one department
o Without power balancing between
project and
functional
forms,
lowers overall performance
o Makes
inconsistent
demands,
which may result in unproductive
conflicts and short-term crisis
management
o May reward political skills
Contingencies
o Dual focus on unique product
demands
and
technical
specialization
o Pressure for high informationprocessing capacity
o Pressure for shared resources

Process structure
Radically new
Emphasize laterla relationships
All functions necessary to produce a
product or service are placed in a
common unit
Features
o Processes drive structure
Organized around three to five
key processes
o Work adds value
Eliminates nonessential tasks
Reduces layers of management
Enriched by combining tasks so
that teams perform whole
processes
o Teams are fundamental
o Customers define performance
o Teams
are
rewarded
for
performance

Teams
are
tightly
linked
to
suppliers and customers
o Team members are well informed
and trained
Advantages
o Focuses on resources on customer
satisfaction
o Improves speed and efficiency
o Adapts to environmental change
rapidly
o Reduces
boundaries
between
departments
o Increases ability to see total work
flow
o Enhances employee involvement
o Lowers costs because of less
overhead structure
Disadvantages
o Can threaten middle managers and
staff specialists
o Requires changes in commandand-control mindsets
o Duplicates scarce resources
o Requires new skills and knowledge
to manage lateral relationships and
teams
o May take longer to make decisions
in teams
o Can be ineffective if wrong
procesess are identified
Contingencies
o Uncertain
and
changing
environments
o Moderate to large sze
o Nonroutine
and
highly
interdependent technologies
o Customer-oriented goals
o

Customer centric structure

Focuses subunits on the creation of
solutions and the satisfaction of key
customers or customer groups
Front-back organizations
Brought about by globalization, ecommerce and desire for solutions
that greatly enhanced the power of
the
customer
to
demand
org
structures that service their needs
Feature
Product
Customer
Goal
Best
Best solution for
product
customer
for
customer

Source of
value

New
products,
new
features

Core
structure

Product
teams,
product
reviews,
product
profit
centers
New
product
processes

Core
process

Customized
bundles
of
products, services,
support, education
and consulting
Customer
teams
and segments
Customer P&Ls

Customer
relationship
management
processes
and
integration/solution
s

Advantages
o Presents one integrated face to the
customer
o Generates a deep understanding of
customer requirements
o Enables org to customize and tailor
solutions for customers
o Builds a robust customer response
capability
Disadvantages
o Customer teams can be too
inwardly focused
o Sharing learnings and developing
functional skills is difficult
o Managing lateral relations between
customer-facing and back office
units is difficult
o Developing common processes in
the front and back is problematic
o Clarifying the marketing function is
problematic
Contingencies
o Highly complex and uncertain
environments
o Large org
o Goals of customer focus and
solutions orientation
o Highly uncertain technologies

Network structure
Manages the diverse, complex, and
dynamic relationships among multiple
orgs or units, each specializing in a
particular business function or task

Types
o Internal market
When single org establishes
each subunit as an independent
profit center that is allowed to
trade in services and resources
with each other and external
market
o Vertical market
Multiple orgs linked to a focal
org
that
coordinates
the
movement of resources
o Intermarket
Alliances
among
orgs
in
different markets
o Opportunity
Most advanced
Temporary
Single purpose
Characteristics
o Vertical disaggregation
Breaking up of orgs business
functions into separate orgws
o Brokers
Process orchestrators
Locate and assemble member
orgs
o Coordinating mechanisms
3 categories
Informal relationship
Contracts
Market mechanism
Advantages
o Enables
highly
flexible
and
adaptive response to dynamic
environments
o Creates a best-of-the-best org to
focus resources on customer and
market needs
o Enables each org to leverage a
distinctive competency
o Permits rapid global expansion
o Can produce synergistic results
Disadvantages
o Managing lateral relations across
autonomous orgs is difficult
o Motivating members to relinquish
autonomy to join the network is
troublesome
o Sustaining
membership
and
benefits can be problematic
o May give partners access to
proprietary knowledge/technology

Contingencies
o Highly complex and uncertain
environments
o Orgs of all sizes
o Goals of org specialization and
innovation
o Highly uncertain technologies

Downsizing
Decreasing number of employees
o Layoffs
o Attrition
o Redeployment
o Early retirement
Reducing the number of org units or
managerial levels
o Divestiture
o Outsourcing
o Reorganization
o Delayering
Effect: rise of contingent workforce
Response to major conditions
o Mergers and acquisitions
o Org decline caused by loss of
revenues and market share and by
technological and industrial change
o New org structures
o Beliefs and social pressures that
smaller is better
Steps
o Clarify the org strategy
o Assess downsizing options and
make relevant choices
3 methods
Workforce reduction
Short time frame
Attrition
Retirement incentives
Outplacement services
layoffs
Org redesign
Medium term
Merging org units
Eliminating management
layers
Redesigning tasks
Systemic change
Longer term
Chaning
culture
and
strategic orientation
o Implement the change
Best controlled from the top
down

Specific areas of inefficiency

and high cost need to be
identified and targeted
Specific actions should be linked
to the orgs strategy
Communicate frequently using
a variety of media
Address the needs of survivors and
those who leave
Follow through with growth plan
Failure to move quickly to
implement growth plans is a key
determinant
of
ineffective
downsizing

o
o

Reengineering
Fundamental rethinking and radical
redesign of business processes
Breaking down specialized work units
into more integrated, cross-functional
work processes
Stages
o Prepare the org
Clarification and assessment of
the orgs context
o Fundamentally rethink the way
work gets done
Identify
and
analyze
core
business processes
Assigning costs to each of
the
major
phases
of
workflow to help identify
costs that may be hidden in
the activities
Define performance objectives
Design new processes
Each essential process is
desgined according to the ff
guidelines
Begin
and
end
the
process with needs and
wants of the customer
Simplify
the
current
process by combining
and eliminating steps
Use the best of what is in
the current process
Attend to both technical
and social aspects of the
process
Do not be constrained by
past practice
Identify the critical info
required at each step

Perform activities in their

most natural order
Assume the work gets
done right the first time
Listen to people who do
the work
o Restructure the org around the new
business processes
Key: commitment to and development
of an integrated info systems

Employee Involvement
Employee involvement
Started with the quality-of-work-life
movement
Outcome: engagement
o Org members work experience
o Motivated
o Committed
o Interested
Seeks to increase members input into
decisions that affect ofg performance
and employee well-being
Elements
o Power
Providing people with enough
authority to make work-related
decisions
o Information
Ensuring that necessary inof
flows freely to those with
decision authority
o Knowledge and skills
Providing
trainings
and
development programs
o Rewards
Internal
External
o Elements are interdependent and
must be changed together
Relationship with productivity
o

Parallel structures
Involve members in resolving illdefined, complex problems and build
adapatability into bureaucratic orgs
Collaterl
structures,
dualistic
structures, shadow structures
Operate in conjunction with the formal
org
Provide members with alternative
setting in which to address problems
and propose innovative solutions free
from the existing, formal org structure
and culture
Membership
o Restricted to making proposals and
offering suggestions for change
o Limited to volunteers and numbers
of employees for which there are
adequate resources
For orgs with little or no history of EI,
top-down management styles and
bureaucratic cultures
Steps
o Define the purpose and scope
o Form a steering committee
Composed of acknowledged
leaders of the various functions
and constituencies
OD practitioner
Help to establish the team
and
select
appropriate
members
Assist in developing and
maintaining group norms of
learning and innovation
Help the committee create a
vision
Help committee members
develop
and
specify
objectives and strategies,
org
expectations
and
required
resources,
and
potential
rewards
for
participation

Communicate
with
org
members
Create forums for employee
problem solving
Alternatives
Ad hoc teams
Charged
with
particular task and
have limited lifetime
Large-group interventions
Facilitation support
Address the problems and
issues
Implement and evaluate the
changes

Total quality management

Continuous
process
improvement,
continuous quality, lean, six sigma
Grew out of manufacturing emphasis
on quality control
Increases workers knowledge and
skills through extensive training
Provides relevant information
to
employees
Pushes
decision-making
power
downward in the org
Ties rewards to performance
Sources of quality problems
o Avoidable
Hours spent reworking defective
products, processing complaints
and scrapping otherwise useful
material
o Unavoidable costs
Work
association
with
inspection and other preventive
measures
Steps
o Gain long-term senior management
commitment
o Trainmembers in quality methods
o Start quality improvement projects
Both product and on process
o Measure progress
o Rewarding accomplishment
Process improvements
High involvement orgs
Address almost all org features
Features
o Org structure
Flat

Lean
Minienterprise oriented
Team based
Participative council or structure
o Job design
Individually enriched
Self-managing teams
o Information ssytem
Open
Inclusive
Tied to jobs
Decentralized; team-based
Participatively set goals and
standards
o Career system
Tracks and counseling available
Open job posting
o Selection
Realistic job previews
Team based
Potential
and
process-skill
oriented
o Training
Heavy commitment
Peer training
Economic education
Interpersonal skills
o Reward system
Open
Skill based
Gain sharing or ownership
Flexible benefits
All salaried workforce
Egalitarian perquisites
o Personnel policies
Stability of employment
Participatively
established
through representative group
o Physical layout
Around org structure
Egalitarian
Safe and pleasant
2 distinct factors that characterize
how HIOs are implemented
o Guided by an explicit statement of
values that members want the new
org to support
o Participatie nature

Work design
Engineering approach

Focuses
on
efficiency
and
simplification
Results in traditional job and workgroup designs
Member
interactions
typically
controlled by rigid work flows,
supervisors and schedules
Analyzes workers tasks to discover
those procedures that produce the
maximum output with the minimum
input of energies and resources
Work design with high levels of
specialization and specification
Allow workers to learn tasks rapidly
Permit short work cycles
Work designs
o Traditional jobs
Completed by one person
Simplified, with routine and
repetitive tasks having clear
specifications concerning time
and motion
o Traditional work groups
Work
requires
coordination
among people
Routine yet related tasks
Overall group task is broken into
simpler, discrete parts
Tasks and work methods are
specified for each part and
assigned to group members
Ignores
workers
social
and
psychological needs

Job enrichment
Designing jobs with high level of
meaning, discretion and knowledge of
results
Function of member needs and
satisfaction
Seeks
to
improve
employee
performance and satisfaction
Core dimensions of jobs
o Skill variety
Influence the extent to which
work is perceived as meaningful
Number and types of skills used
to perform a particular task
o Task identity
Influence the extent to which
work is perceived as meaningful
Extent to which an individual
performs a whole piece of work

Task significance
Influence the extent to which
work is perceived as meaningful
Impact that the work has on
others
o Autonomy
Amount
of
independence,
freedom and discretion that the
employee has to schedule and
perform tsks
Influence the extent to which
they are responsible for their
work
o Feedback
Info that workers receive about
the effectiveness of their work
Psychological sates
o Experienced meaningfulness of the
work
o Experienced
responsibility
for
outcomes of work
o Knowledge of the actual results of
the work activities
Outcomes
o High internal work motivation
o High quality work performance
o Work satisfaction
o Low absenteeism and turnover
Individual differences also affects
outcomes
o Knowledge
o Skills levels
o Growth-need strength
o Satisfaction of contextual factors
Reward systems
Supervisory style
Coworker satisfaction
Steps
o Making a thorough diagnosis of the
situation
Function of 3 psychological
states
Profile one or more jobs
Indicates how ready employees
are to accept change
Determine whether the job is
low in motivating potential
Determine whether motivation
and satisfaction are really
problems
To isolate specific job aspects
that are causing problems
o Forming natural work units
o

Combining tasks
Establishing client relationships
Client must be identified
Contact between the client and
the
worker
needs
to
be
established
as
directly
as
possible
Criteria and procedures are
needed by which the client can
judge the quality of the product
or service received and relay
those judgements back to the
workeer
o Vertical loading
Intent is to decrease the gap
between doing the job and
controlling the job
o Opening feedback channels
Most advantageous and least
threatening: when a worker
learns about performance as
the job is performed
Barriers
o Technical system
By constraining the number of
ways jobs can be changed
May set an enrichment ceiling
o Human resource system
By creating formalized job
descriptions
o Control system
Limit
the
complexity
and
challenge of jobs
o Supervisory system
Supervisors
determine
the
amount
of
autonomy
and
feedback

o
o

Sociotechnical systems approach

Fundamental premises
o Org or work unit is a combined,
social-plus-technical system
Suggests that whenever human
beings are organized to perform
tasks,a joint system is opering
Social
Follows
biological and
physical laws
Technical
Follows mechanical and
physical laws
Independent of each other
2 outcomes
Product

Social and physchological

consequences
Key issue: how to design the
relationship between the two
parts so that both outcomes are
positive
System is open in relation to its
environment
Key issue: how to design the
interface between the STS and
its environment so that the
system has sufficient freedom
to function while exchanging
effectively with the environment
Self-managed teams
Seeks to optimize both social
and technical aspects of work
systems
Composed
of
multi-skilled
members
performing
interrelated tasks
Model
Team task design
Follows from the teams
mission and goals
Provide direction for task
achievement
Links
members
behaviors
to
task
requirements and to each
other
Design elements
Task differentiation
Extent to which the
teams
is
autonomous
and
forms a relatively
self-completing
whole
Identifiable
team
boundary
Clearly
defined
area
of
team
responsibility
Boundary control
Extent to which
team members can
influence
transactions
with
their
task
environment
Well-defined work
area

Group
responsibility
for
boundary-control
decisions
Members
sufficiently trained
to perform tasks
without
relying
heavily on external
resources
Task control
Enables
selfmanaged
work
teams to observe
and
control
technical variances
as quickly and as
close
to
their
source as possible
Team process interventions
Organization
support
systems
External leadership
Working
with
and
developing
team
members
Assisting the team in
managing
its
boundaries
Team functioning
Team
performance
and
member satisfaction
Recruitment and selection
Selecting team leaders with
a
balanced
mixture
of
technical and social skills
Training
Extensive formal and on-thejob
training
in
human
relations, group dynamics
and leadership styles
Evaluation and reward systems
Tie team leader rewards to
achievements
in
team
development
Leadership and support systems
Develop peer support groups
Use of freed-up time
Team leader has more time
when the team has matured
Be involved in higher-level
planning
and
budgeting,
companywide training and

development and individual

career development
o

Steps
Sanctioning the design effort
Necessary protection and
support to diagnose their
work system and to create
an appropriate work design
Diagnosing the work systems
Discover how it is working
Generating appropriate designs
Principles
Compatibility
Process of designing
work should fit the
values and objectives
underlying
the
approach
Minimal
critical
specification
Specify only those
critical
features
needed to implement
the work design
Specifying support systems
Implementing and evaluating
work design
Continual
change
and
improvement
As new things are learned
and new conditions are
encountered

Technical factors
Technical interdependence
o Extent to which cooperation among
workers is required to produce a
product or service
o Determines whether work should
be designed for individual jobs or
for work groups
Technical uncertainty
o Amount of info processing and
decision making employees must
do to complete a task
o Determines whether the work
should be designed for external
forms of control or for worker selfcontrol

Personal-need factors
Social needs
o Desire for significant relationships
o Determines whether work should
be designed for individual jobs or
work groups
Growth needs
o Desire
for
personal
accomplishment,
learning
and
development
o Determines whether work designs
should be routine and repetitive or
complex and challenging

Performance Management
Performance management

Integrated
process
of
defining,
assessing and reinforcing employee
work behaviors and outcomes
Contextual factors that determine how
practices affect work performance
o Business strategy
Goals and objectives, policies
and
intended
relationships
between the org and its
environment
o Workplace technology
Affects whether performance
management practices should
be based on the individual or
the group
o Employee involvement
Determine
the
nature
of
performance
management
practices

Goal setting
Interaction between managers and
employees in jointly defining member
work behaviors and outcomes
Specifies kinds of performance that
are desired
Can facilitate employee counseling
and support
Can generates goals in serveral
defined categories at different org
levels
Influences what people think and do
by focusing their behavior in the
direction of the goals
Prompts persistence over time
Energize behavior
Processes
that
affect
positive
outcomes
o Establishing challenging goals
Varying goal difficulty
Varying level of employee
participation
Contextual factors
Clear line of sight between
business strategy goals and
individual goas
Employee
participation
ingoal setting is more likely
to be more effective if
employee
involvement
policies in the org support it
When
tasks
are
highly
interdependent and work is
designed for groups, group-

oriented participative goalsetting tends to increase

commitment
o Clarifying goal measurement
Objectives
should
be
operationally defined
Contextual factors
Goal specification and clarity
can be difficult in hightechnology settings
Employee
involvement
policies can impact the way
goals are clarified
Process of specifying and
clarifying goals is extremely
difficult if the business
strategy is unclear
Steps
o Diagnosis
Of the job or work group, of
employee needs and of the
contextual factors
o Preparation for goal setting
Increasing
interaction
and
communication
between
managers and employees
Offering formal training in goalsetting methods
Specific
action
plans
for
implementing the program
o Setting of goals
Challenging
goals
are
established
Methods for goal measurement
o Review
Goal-setting process is assessed
Goal attributes are evaluated
Management by objectives
o Systematic and periodic managersubordinate meetings
o Steps
Work-group involvement
All members define overall
group and individual goals
and establish action plans
Joint manager-subordinate goal
setting
Attention is given to job
duties and responsibilities of
the
individual
role
incumbents
Establishment of action plans
for goals

Subordinate develops action

plans
for
goal
accomplishment
Establishment of criteria of
success
Manager and subordinate
agree on the success criteria
Review and recycle
Subordinate takes the lead,
reviewing
progress
and
discussing
achievements
and the obstacles faced
Manager
discusses
work
plans and objectives for the
future
More
general
discussion
covers the subordinates
future ambitions and other
factors of concern
Maintenance of records

Performance appraisal
Collecting
and
disseminating
performance data to improve work
outcomes
Assesses outcomes
Feedback system that involves the
direct evaluation of individual or workgroup performance
Important link between goal-setting
processes and reward systems
Elements
Traditional
High
Involvement
Purpose
Organizational Development
, legal
al
fragmented
integrative
Appraiser
Supervisor,
Appraisee,
managers
co-workers,
others
Role
of Passive
Active
appraisee
receipient
participant
Measuremen Subjective
Objective and
Concerned
t
subjective
with validity
Timing
Periodic, fixed, Dynamic,
administrative timely,
ly driven
employee- or
work- driven
Steps
o Select the right people
HR staff, legal reps, senior
management and system users
o Diagnose the current situation

o
o

Establish the systems purposes

and objectives
Design the performance appraisal
systems
Who performs the appraisal
Who is involved in determining
performance
How performance is measured
How often feedback is given
Criteria
Timeliness
Accuracy
Acceptance
Understanding
Focus on critical control
points
Economic feasibility
Experiment
with
implementation
Evaluate
and
monitor
the
system

Reward systems
Concerned
with
eliciting
and
reinforcing desired behaviors and work
outcomes through compensation and
other forms of recognition
Design features
o Person/job based vs performance
based
Extent to which rewards and
incentives are based on the
person in a job, the job itself, or
the outcomes of the work
o Market position
External equity
Relationship between what an
org pays an what other orgs pay
o Internal equity
Extent to which people doing
similar work in an org are
rewarded the same
o Hierarchy
Extent to which people in higher
positions get more and varied
types of rewards than people
lower in the org
o Centralization
Extent to which reward system
design features, decisions and
admin are standardized across
an org
o Rewards mix

Extent to which different types

of rewards are available and
offered to people
o Security
Extent to which
work is
guaranteed
o Seniority
Extent to which rewards are
based on length of service
Value expectancy model
o Employees will expend effort to
achieve performance goals that
they believe will lead to outcomes
that they value
o Factors
Availability
Timeliness
Performance contingency
Durability
Visibility
Skilland
knowledge-based
pay
systems
o fails to reward employees for all of
the skills that they have
o discourages people from learning
new skills
o results in a view of pay as an
entitlement
o establish the skills needed for
effective operations
o identify the optimal skills profile
and number of employees needed
with each skill
o price each skill and skill set
o develop rules to sequence and
acquire skills
o develop methods to measure
member skill acquisition
o benefits
contribute to org effectiveness
by providing a more flexible
workforce
and
by
giving
employees a broad perspective
on how the entire plant
operates
result to leaner staffing and
fewer
problems
with
absenteeism, turnover and work
disruptions
lead to durable employee
satisfaction
by
reinforcing
individual development and by
producing an equitable wage
rate

drawbacks
tendency to top out
when employees learn all
the skills there is to learn
expensive
trainings
measurement systems
highly paid and flexible but
not productive
lack
of
performance
contingency
performance-based pay systems
o dimensions
org unit by which performance
is
measured
for
reward
purposes
way performance is measured
what rewards are given for good
performance
gain-sharing systems
o paying employees a bonus based
on improvements in the operating
results of the org
o design elements
process of design
employee acceptance and
cooperation
management
and
nonmanagement interests
org unit covered
bonus formula
standard of performance
must be developed that can
be used as a baseline for
calculating improvements or
losses
costs included in arriving at
the bonus must be chosen
sharing process
who will share in the bonus
how the money will be
divided among employees
frequency of bonus
change management
participative system
gather,
assess
and
implement
employee
suggestions
and
improvements
goal-sharing plans
o pay bonuses when performance
exceeds a standard
o

use changing, strategic objectives

as the primary standard of
performance
promotion systems
o focuses attention on advancement
o can lead to reduced flexibility in
the workforce
issues
o who
should
be
involved
in
designing and administering the
reward system
o what kind of communication should
exist with respect to rewards
o

Developing Talent
Coaching and mentoring
coaching
o working with org members on a
regular basis to help them clarify
their goals, deal with potential
stumbling blocks and improve their
performance
mentoring
o establishing a relationship between
a manager or someone more
experienced and another org
member who is less experienced
guided inquiry
active listening
reframing
improves personal productivity and
builds capacity in individuals to lead
more effectively
goals addressed
o assisting an executive to more
effectively execute some transition
o addressing a performance problem
o developing new behavioral skills as
part of a leadership development
program
assumes that the client is healthy
primarily future and action oriented
involves helping clients understand
how their behaviors are contributing to
the current situation
stages
o establish the principles of the
relationship
o conduct an assessment
o debrief the results
o develop an action plan
o implement the action plan

assess the results

Career planning and development

provide the appropriate resources,
tools and processes necessary to help
org members plan and attain their
career objectives
career
o sequence of work-related positions
occupied by a person
career planning
o concerned
with
individuals
choosing jobs, occupations and
orgs at each stage of thier career
career development
o helping employees attain career
objectives
career stages
o establishment stage
21 - 26
Unceratin and may be stressed
about their competence and
potential
Dependent on others
Making initial choices about
committing themselves to a
specific career, org and job
o Advancement stage
26 40
Become
independent
contributors
Concerned with achieving and
advancing in their chosen
careers
Learned
to
perform
autonomously and need less
guidance
Attempts to clarify the range of
long-term career options
o Maintenance stage
40 60
Leveling off and holding on to
career successes
Helping
less-experienced
subordinates
Conflictual and depressing
o Withdrawal stage
60+
Imparting
knowledge
and
experience to others
Leaving a career
Steps

Establish
a
career
planning
mechanism
Assessing
ones
interests,
capabilities, values and goals
Examining alternative careers
Making decisions that may
affect the current job
Planning how to progress in the
desired direction
Resources
Communication about career
opportunities and resources
available
Workshops
Career counseling
Self-development materials
Assessment programs
Establishment stage
Communication
and
counseling about available
career paths and skills and
abilities needed
Workshops,
selfdevelopment materials and
assessment
techniques
aimed at helping employees
assess
their
interests,
aptitudes and capabilities
and at linking that info to
possible careers
Continual feedback about
job performance and to
counseling them about how
to improve
Advancement stage
Communication
and
counseling about challenging
assignments and possiblities
for more exposure and
demonstrations of skills
Workshops, developmental
materials, and assessment
methods aimed at helping
employees develop wider
collegial relationships, join
with effective mentors and
sponsors and develop more
creativity and innovation
Maintenance stage
Communication about the
broader org and how their
desires and roles might fit
into it
Workshops, developmental
materials, counseling and

assessment
techniques
aimed at helping employees
to assess and develop skills
to train and coach others
Withdrawal stage
Communication
and
counseling about options for
post-retirement work and
financial security
Retirement
planning
workshops and materials
Assemple an appropriate set of
career development processes
Realistic job preview
Stage
Establishment
Maintenance
Advancement
To provide members with an
accurate expectation of work
requirements
Reduce turnover
Reuce training costs
Increase commitment
Assessment centers
Stage
Establishment
Maintenance
Advancement
Withdrawal
To
select
and
develop
members for managerial and
technical jobs
Increase person-job fit
Identify
high-potential
candidates
Job rotation and challenging
assignments
Stage
Establishment
Maintenance
Advancement
To provide members with
interesting
work
assignments
leading
to
career objective
Reduce turnover
Build org knowledge
Increase job satisfaction
Maintain member motivation
Consultative
roles
and
mentoring
Stage
Maintenance

Withdrawal
To
help
members
fill
productive roles later in their
careers and provide less
experienced members with
exposure to key knowledge
and skill
Increase
problem-solving
capacity
Increase job satisfaction
Increase member motivation
Performance management
Stage
Establishment
Maintenance
Advancement
Withdrawal
To provide members with
knowledge
about
their
career progress and work
effectiveness
Increase productivity
Increase job satisfaction
Monitory HR development
Developmental training
Stage
Establishment
Maintenance
Advancement
Withdrawal
To provide education and
training opportunities that
help
members
achieve
career goals
Increase
organizational
capacity
Work-life balance
Stage
Establishment
Maintenance
Advancement
Withdrawal
To help members balance
work and personal goals
Improve quality of life
Increase productivity and
morale
Increase
organizational
commitment
Decrease absenteeism
Decrease turnover
Phased retirement
Effective way of withdrawing
from
the
org
and

establishing a productive
leisre
life
by
gradually
reducing work hours
Management and leadership develoment
Build an individuals skills, socialize
leaders in corporate values and
prepare
executives
for
strategic
leadership roles
Focus is on developing the skills and
knowledge the org believes will be
necessary
to
implement
future
strategies and manage the business
Goal
is
development
of
orgs
management and executive talent
Steps
o Perform a needs assessment
Determine the competencies
believed
to
characterize
effective leaders
Gather data on the strategy, the
org and the individuals who
might attend the leadership
program
Strategy assessment
Knowledge and experiences
future leaders will need
Org assessment
Systems that my affect the
ability to transfer learning
and
developmental
experiences back to the org
Individual assessment
Understand the existing pool
of people who should be
candidates for the program
o Develop the objectives and design
of the training
Establish outcome objectives
Results expected from a
competent leader
How those results were
achieved
o Deliver the training
o Evaluate the training
Criteria
Reaction
Participants
initial
judgement
about
the
trainings usefulness
Questionnaires
immediately following the
training activity
Learning

Whether
or
not
participants acquired the
knowledge that should
have been transferred
Interview
or
questionnaire
Behavior
Whether new skills and
abilities gained in the
training
are
actually
applied to job activities
Observation
Interviews of participants
managers
Results
Whether or
not the
training can be credited
with improvements or the
participants
or
the
systems effectiveness

Transformational Change
Transformational change
Can
occur
in
response
or
in
anticipation of major changes in the
orgs environment or tech
Characteristics
o Change
is
triggered
by
environmental
and
internal
disruptions
Industry discontinuities
Sharp changes in legal,
political, economic and tech
conditions that shift basis for
competition
within
an
industry
Product life cycle shifts
Changes in product life cycle
that
require
different
business strategies
Internal company dynamics
Changes in size, corporate
portfolio
strategy
or
executive turnover
o Change is aimed at competitive
advantage
Uniqueness
Unique bundle of resources
and
processes
which
represent the source of
competitive advantage
When
resources
and
processes are formed into

capabilities that allow the

org to perform complex
activities better than others,
a distinctive competence is
identified
Value
When unique resources and
processes are arranged in
such a way that products or
services either warrant a
higher-than-average price or
are exceptionally low in cost
Difficult to imitate
Sustainable when unique
and valuable resources and
processes are difficult to
mimic or duplicate
By making it difficult for
other firms to identify
their
distinctive
competence
By aggressively pursuing
a range of opportunities
By seeking to retain key
human resources
Change
is
systemic
and
revolutionary
Rapid change enables the org to
reach a period of smooth
growth and functioning sonner,
thus
providing
it
with
a
competitive advantage over
those firms that change more
slowly
Change demands a new organizing
paradigm
Gamma
change
involves
discontinuous shifts in mental or
organizational frameworks
Leaner, more flexible structures
Information
and
decision
making pushed down to the
lowest levels
Decentralized
teams
and
business units accoutable for
specific proudcts
Participative mangement and
teamwork
Change is driven by senior
executives and line management
Active role of senior executives
and line managers to all phases
of the change process
Envisioning

Clear and credible vision of

the new strategic orientation
New and difficult standards
for performance
Generate pride in past
accomplishments
and
enthusiasm for the new
strategy
Energizing
Personal excitement for the
changes
Enabling
Provide
the
resources
necessary
Build
an
effective
topmanagement
team
to
manage the new org and
develop
management
practices
Change
involves
significant
learning
Members must learn how to
enact the new behaviors

Deregulation is pushing firms to rethink

business strategies and reshape how they
operate
Public demand for less government
intervention and lowered deficits is
forcing
public
sector
agencies
to
streamline operations and to deliver more
for less
Rapid changes in tech pushing frims to be
continually innovative and nimble

Integrated strategic change

Comprehensive OD intervention aimed
at a single org or business unit
That business strategy and org design
must be design aligned and changed
together
Deliberate, coordinated process that
leads gradually or radically to
systemic realignment between the
environment and a firms strategic
orientation
In response to managers complaints
that good business strategies often
are not implemented
Too little attention is given to change
process and human resources issues
necessary
Key features

Relevant unit of analysis is the

orgs
strategic
orientation
comprising its strategy and org
design
o Creating the strategic plan, gaining
commitment and support for it,
planning its implementations and
executing it are treated as one
integrated process
o Individuals and groups throughout
the org are integrated into the
analysis,
planning
and
implementation process to create a
more achievable plan, to maintain
the firms strategic focus, to direct
attention and resources on the
orgs key competencies, to improve
coordination and integration within
the org, and to create higher
leveles of shared ownership and
commitment
Stages
o Performing a strategic analysis
Diagnosis of the orgs readiness
for change and its current
strategy and org design
Indicator
Senior
managements
willingness and commitment
to change
Senior teams willingness
and ability to follow the
leaders initiative
Examination
of
the
orgs
industry as well as the current
financial
performance
and
effectiveness
Current
strategic
org
is
described to explain current
levels of performance and
human outcomes
o Exercising strategic choice
Determines the content of
strategic change
o Designing a strategic change plan
Comprehensive agenda
Process of strategic change
Types, magnitude and schedule
of change activities
o Implementing the plan
o

Org design
Addresses the different elements that
comprise the architecture of the org

Seeks to fit or align these components

with each other
Configures the orgs structure, work
design, human resources practicies
and management and IS
In response to a major change in the
orgs strategy
Design components
o Strategy
Determines how the org will use
its
resources
to
gain
competitive advantage
o Structure
How the org divide tasks,
assigns them to departments
and coordinates across them
o Work design
How tasks are performed and
assigned to jobs or groups
o HR practices
Involce selecting people and
training,
developing
and
rewarding them
o Management and IS
How employees are led and the
nature and kinds of info they
are provided to guide their work
Mechanisti
Organic
c
Strategy
Cost
Innovation
minimization
Structure Formal/hiera Flat, lean
rchical
and flexible
Functional

Work
design

Traditional
jobs
Traditional
work groups

HR
practices

Selectiion to
fit job
Up-front
training
Standard
reward mix

Matrix,
process
and
network
Enriched
jobs
Selfmanaged
teams
Selection to
fit org
Continuous
training
and
developme
nt

Pay for
performance
and
individual
merit
Job-based
pay

Managem
ent and IS

Command
and cotnrol
Closed,
exclusive,
centralized
info

Always
changing
and
is
dominated by ambiguity and
paradox
o 4 elements
Artifacts
Highest level
Visible symbpls
Often represent the deeper
assumptions
Norms
Below the surface of cultural
awareness
Guiding
how
members
should behave in particular
situations
Values
Tell
members
what
is
importanint in the org and
what
deserves
their
attention
Basic assumptions
How to perceive, think and
feel about things
o Affects performance
through its influence on the
orgs ability to implement
change
through its influence on a frims
ability to operate in different
countries
support employee participation
in decision making, adaptable
work methods, sensible work
designs and reasonable and
clear goals
o stable environments
strong cultures can provide
efficiency in decision making
and operations
o volatile environments
strength of the culture can
become a weakness if it stunts
creativity
diagnosing
o behavioral approach
emphasizes the surface level of
org
culture

pattern
of
behaviors that produce business
results
provides specific descriptions
about how tasks are performed
and how relationships are
managed in an org

Individual
choice
rewards
Pay for
performanc
e and
business
success
Skill-based
pay
EI
Open,
inclusive,
distributed
info

Steps
o Clarifying the design focus
Assesing the org to create the
overall framework for design
Examining the orgs strategy
and objectives
Determining
what
org
capabilities are needed
o Designing the org
Configuring
the
desing
components to support the
orgs strategy and objectives
Starts with a broad outline of
how
the
org
should
be
structured and how the design
components should fit together
Addresses the specific details of
the components
o Implementing the design

Culture change
o Integrated view
Organizationally
shared
phenomenon
Stable and coherent set of
beliefs about the org and its
environment
o Differentiated view
Culture is not monolithic but
that it is best seen in terms of
subcultures
that
exist
throughout the org
o Fragmented view

result can be used to assess the

cultural risk of trying to
implement org changes
risks
can
help
determine
whether implementation plans
should be changed, whether
culture should be changed or
whether the strategy itself
should
bemodified
or
abandoned
o competing values approach
assess how it resolves a set of
value dilemmas
orgs culture can e understood
in terms of two important value
pairs
each
pair
consists
of
contradictory values placed
at opposite ends of a
continuum
internal
focus
and
integration vs external focus
and differentiation
flexibility and discretion vs
stability and control
4 quadrants
Clan culture
Adhocracy culture
Hierarchical culture
Market culture
o deep assumption approach
unexamined, but tacit and
shared assumptions that guide
member behavior and that
often have a powerful impact on
org effectiveness
3 problems
Culture reflects the more or
less shared assumptions
Take cultural assumptions
for granted and rarely
speak of them directly
Some values and beliefs
have little to do with the
onew they really hold and
follow
Large, diverse orgs are likely
to have several subcultures
and countercultures
Focusing on limited parts
of the org may provide a
distorted view
Steps
o Formulate a clear strategic change

o
o
o
o
o

Display
top-management
commitment
Model culture change at the highet
levels
Modify the org to support org
change
Select and socialize newcomers
and terminate deviants
Develop
ethical
and
legal
sensitivity

Continuous Change
Continuous change
Extend transformational change inot a
nonstop process of strategizing, org
designing and implementing change
Self-designing orgs
Requirements of adaptive change
o Altering most features of the org
and achieving a fit among them
and with the firms strategy
Need for a systemic change
process
o Occurs in situations experiencing
rapid change and uncertainty
Change process needs to be
dynamic and iterative
o Current knowledge about adaptive
change provides only general
prescription for change
Need to learn how to translate
that info into specific structures,
processes and behaviors
Calls for constant org learning
o Affects many org stakeholders
Change process must attend to
interests
of
multiple
stakeholders
o Occur at multiple levels of the org
Steps
o Laying the foundation
Acquiring knowledge about how
org
functions,
organizing
principles
and
self-design
process
Valuing
Determining the corporate
alues that will guide the
change process
o Designing
o Implementing and assessing
Ongoing cycle of action learning

Applicable to rogs needing to change

themselves
Applicable to new orgs

Learning orgs
Aimed at helping orgs develop and use
knowledge to change and improve
themselves constantly
Org learning
o Enhances an orgs capability to
acquire
and
develop
new
knowledge
o Emphasize the org structures and
social
processes
that
enable
employees and teams to learn and
share knowledge
o HR management
Can
reinforce
members
motivation to gain new skills
and knowledge
o Technostructural
Can provide the kinds of lateral
linkages and teamwork needed
to process, develiop and hare
diverse inof and knowledge
o Human process designs
Develop the kinds of healthy
interpersonal relationships that
undelie effective OL
o Strategic
Help orgs gain knowledge about
their environments and develop
values and norms that promote
OL
o Characteristics
Structure
Teamwork
Lesser number of layers
Strong lateral relations
Networking
across
org
boundaries both internal and
external
Promote
info
sharing,
involvement
in
decision
making, systems thinking
and empowerment
IS
Gathering and processing
info and IS provide the infra
Facilitate rapid acquisition,
processing and haring of
rich,
complex
info
and
enable people to manage

knowledge for competitive

advantage
HR practices
Reinforce the acquisition and
sharing of new skills and
knowledge
Org culture
Strong cultures that promote
openness, creativity, and
experimentation
Provide underlying social
support needed
Encourage
members
to
acquire, process and share
info
Nuture
innovation
and
provide the freedom to try
new things, to risk failure
and to learn from mistakes
Leadership
Actively
model
the
openness, risk taking and
reflections
Process
Discovery
When error or gaps are
detected
Invention
Devising solutions to close
the gap
Production
Implementing solutions
Generalization
Drawing conclusions about
the effects of the solutions
and
extending
that
knowledge to other relevant
situations
3 types of learning
Single loop
Adaptive learning
Focused on improving the
status quo
Double loop
Generative learning
Aimed at changing the
status quo
Deuterolearning
Learning how to learn
Theories in use
Cognitive amps
Inform member behaviors and
organizing
Can be faulty

Can be too narrow and fail to

account for important aspects
of the environment
Can
include
errouneous
assumptions
o Model I learning
Values
and
norms
that
emphasize unilateral control of
environments and tasks
Protection of oneself and others
from info that may be hurtful
Limited to single loop learning
o Model II learning
Based on values promoting
valid info, free and informed
choice, internal commitment to
the choice and continuous
assessment
of
its
implementation
Applies to double loop learning
and deuterolearning
Steps
o Discover theories in use and their
consequences
Uncovering members mental
models or theories in use and
the consequences that follow
Dialogue
Members
in
genuine
exhange about how they
currently address problems,
make decisions and interact
with each other
Construction of action map of
members theories and their
behavioral consequences
Interrelationship among the
values underlying theories in
use, the action strategies
that follow from them and
the results of those actions
Left-hand right-hand
Right side
Example is describe in
script form
Left side
What he ro she was
thinking but not saying at
each
phase
of
the
exchange
Reveals hidden assumptions
that guide behaviro and can
make members aware of
how erroneous or untested

assumptions can undermine

work relationships
Ladder of inference
Demonstrates
how
far
removed
from
concrete
experience
and
selected
data are the assumptions
and beliefs
o Invent and produce more effective
theories in life
Members learn by doing
Learn from their invention and
production actions how to
invent
and
produce
more
effective theories in use
Behaviorally, help members
apply
undelrying
Model
II
learning
to
question
their
experience of tring to behave
more consistently with Model II
Conceptually, teach members
systems thinking to help them
invent more effective theories in
use
Systems diagrams
Displaying
cicles
of
influence among system
elements
System archetypes
Describing
recurrent
structures that affect the
org
Computerized microworlds
New strategies can be
tried out under conditions
that
permit
experimentation
and
learning
Games and experimental
exercises
Demonstrating
system
principles
o Continuously monitor and improve
the learning process
Knowledge management
o Focuses on how that knowledge
can be organized and used to
improve performance
o Focus on tools and techniques that
enable orgs to collect, organize,
and translate info into useful
knowledge
o Steps
Generating knowledge

Identifying the kinds of

knowledge that will create
the most value for the org
and
thus
creating
mechanisms for increasing
that stock of knowledge
Organizing knowledge
Putting valued knowledge
into
a
form
that
organizational members can
use readily
Strategies
Codification
Rely heavily on IT
Categorize and store
knowledge in DB
Works best for explicit
forms of knowledge
Personalization
Focus on the people
who
develop
knowledge and on
how they can share it
person-to-person
Tacit knowledge
Distributing knowledge
Easy for people to find and
encouraging its use and
reuse
Self-directed distributions
Rely heavily on member
control and initiative for
knowledge dissemination
Knowledge
services
and
networks
Promote
knowledge
transfer
by
providing
specific assistance and
organized channels for
leveraging
knowledge
throughout the org
Facilitated transfer
Involves specific people
who assist and encourage
knowledge distribution
Learning is organizaional to the extent
that
o It is done to achieve org purposes
o Shared
or
distributed
among
members of the org
o Learning outcomes are embedded
in the orgs systems, structures
and culture

Built-to-change orgs
Design guidelines
o Managing talent
Seek quick learners who what to
take
initiative,
desire
professional growth and thrive
on change
o Reward system
Motivating and reinforcing
o Structure
Flat, lean and flexibile org
structures
o Information and decision processes
Decision
making
moved
throughout the org to wherever
they are needed
o Leadership
Shared leadership
Steps
o Create a change-friendly identity
Requires
surfacing
existing
values and norms, assessing
their relevance to change and
making
appropriate
adjustments
o Pursue proximity
Gain a clearer picture of
environmental demands and
opportunities
Identify how the orgs core
competencies and capabilities
can
contribute
to
making
desired futures happen
o Build an orchestration capability
Specifies
the
events
and
decisions necessary to make
the strategy happen
Building this change capability
Change management skills
are developed widely
Org effectiveness function is
created
Org members learn how to
apply thier change capability
by engaging in org changes
and
reflecting
on
that
experience
o Establish strategic adjustment as a
normal condition
Creating dynamic alignment in
implementing
strategy,
developing new capabilities and
hitting org design elements
o Seek virtuous spirals

Pursue a series of temporary

competitive advantage

Transorganizational Change
Transorganizational change
Helps orgs create and sustain such
multiorganization linkages
Can provide additional resources for
large-scale reserach and development
Can spread the risks of innovation
Can apply diverse expertise to
complex problems and tasks
Can make IT available to learn and
develop new capabilities
Can position the org to achieve
economies of scale or scope
Can gain access to new marketplaces
Work well when transactions occur
frequently and are well understood
If
transactions
involve
people,
equipment or other assets that are
unique to the task
Transorganizational system
Groups of orgs that have joined
together for a common purpose
Functional social systems existing
intermediately between single orgs
Tend to be underorganized
Mergers and acquisitions
Leverage the strengths of one org by
combining with another org
Merger
o Integration
of
two
previously
independent orgs into a completely
new org
Acquisition
o Purchase of one org by another for
integration inot the acquiring org
Reasos
o Diversification
or
vertical
integration
o Gaining access to global markets,
technology or other resources
o Achieving operational efficiencies,
improved innovation or resource
sharing
Reasons for failure
o Inadequate
due
diligence
processes

Lack of a compelling strategic

rationale
o Unrealistic expectations of synergy
o Paying too much for the transaction
o Conflicting corporate cultures
o Failure to move quickly
Steps
o Precombination
Steps
Search
for
and
select
candidate
Create M&A team
Establish business case
Strategic
vision
represents
the
orgs
combined capabilities
Competitive
strategy
describes the business
model
for
how
the
combined org will add
value in a particular
product
market
or
segment of the value
chain, how that value
proposition
is
best
performed
by
the
combined org
Systems
integration
specifies how the two
orgs will be combined
Perform
due
diligence
assessment
Evaluating whether the
two orgs actually have
the managerial, technical
and financial resources
that each assumes the
other possesses
Develop merger integration
plans
How the two orgs will be
combined
Detailed analyses of the
strategic
vision,
competitive strategy and
systems integration
Plans for designing the
combined
orgs
are
developed
Structure
Reporting
relationships
HR policies
o

Issues
Ensure that candidates are
screened for cultural as well
as financial, technical and
physical asset criteria
Define a clear leadership
structure
Establish a clear strategic
vision, competitive strategy
and
systems
integration
potential
Specify
the
desirable
organization design features
Specify an integration action
plan
Legal combination
Steps
Complete
financial
negotiations
Close the deal
Announce the combination
Operational combination
Steps
Day 1 activities
Communications
and
actions that officially start
the
implementation
process
Operational and technical
integration activities
Cultural integration activities
Issues
Implement changes quickly
Preempts
unanticipated
org
changes that might
thwart momentum

Informatin and control

systems
Operating logistics
Work designs
Customer-focused
activities
Developing
an
action
plan
Tasks to be performed
Decision-making
authority
and
responsibility
Timelines
for
achievement
Addressing
conflicts
and problems

Reduces
org
members uncertainty
about when things will
happen
Lessens
members
anxiety
about
the
M&As impact on their
personal situation
Communicate
Solve problems together and
focus on the customer
Conduct an evaluation to
learn and identify further
areas of integration planning

Strategic alliance
Help to develop the relationship
between orgs that believe the benefits
of cooperation outweigh the costs of
lowered autonomy and control
Joint ventures
o Special type where a third org,
jointly owned and operated by two
or more orgs, is created
Franchising
Long-term contracts
Formal agreement between two or
more orgs to pursue a set of private
and common goals through the
sharing of resources
Steps
o Strategy formulation
Developing clearly the business
strategy and understand why an
alliance
is
an
appropriate
method
o Partner selection
Cost/benefit analysis
Developing screening criteria
Agreeing on candidates
Establishing initial contracts
Formulating a letter of intent
The way the alliance begins and
proceeds
is
an
important
ingredient in building trust, a
characteristic
of
successful
alliances
o Alliance structuring and start-up
How
to
structure
the
partnership and build and
leverage
trust
in
the
relationship
Appropriate
governance
structure

As the proportion of equity

investment increases, the
costs, risk and amount of
required
management
attention also increase
Relational quality
Alliance operation and adjustment

Networks
Help orgs join together for a common
purpose
Creating the initial network
o Recognizeds their underorganized
nature
o Steps
Identification stage
Identifying
existing
and
potential member orgs best
suited to achieve their
collective objectives
Difficult because orgs may
not perceive the need to join
together or may not know
enough about each other
Difficult because there might
be insufficient leadership
and
cohesion
among
participants
Convention stage
Bringing them together to
assess whether formalizing
the network is deisrable and
feasible
Existing stakeholders may
not have the legitimacy or
skills
to
perform
the
convening function, hence,
task of OD
Organization stage
Developing the structures
and
mechanisms
that
promote communication and
interaction among members
Includes orgs to be involved
in the network and the roles
each
will
play,
the
communication
and
relationships among them
Control system
Evaluation stage
Assessing how the network
is performing
Managing
change
within
an
established network

o
o

Must account for the relationships

among member orgs as a whole
system
Properties
Behavior of a network is
sensitive to small differences in
its initial conditions
How it was established and
formed play a key role in its
willingness and ability to
change
Depth and nature of trust
Who was selected and
not selected
How the network was
organized
Network
display
emergent
properties
that
cannot
be
explained through analysis of
the parts
Variety of network behaviors
and patterns can emerge from
members performing tasts and
making decisions according to
simple rules to which everyone
agreed
Steps
Create instability in the netwokr
A networks susceptibility to
instability is a function of
members motivations for
structure vs agency
Self-interest
can
create
instability in the network
Changing the pattern of
communication
among
members
can
create
instability
Manage the tipping point
Law of the few
New idea, practice or
other change spreads
because of a relatively
few but important roles in
the network
Connectors
Individuals
who
occupy
central
positons
in
the
network and who are
able to tap into many
different
network
audiences
Mavens
Info sinks

Pursue
knowledge
about
a
particular
subject
are
altruistically willing to
tell anyone
Salespeople
Champions of change
and
are
able
to
influence others to try
new ideas, do new
things or consider new
options
Stickiness
Memorable

Function of small and

seemingly
insignificant
characteristics
of
the
message
Power of context
Meaningful and relevant
to network members
Rely on self-organization
Exhibit
self-organizing
behavior
Variety of controls can be
leverage to institutionalize it