Chapter 8OD Intervention Strategies

Learning ObjectivesIdentify and understand range of major OD intervention techniques and how they can be applied.Identify ways interpersonal, team, and intergroup techniques fit into OD program.Understand the change strategies.

Leading Change at P&G(part 1 of 3)P&G CEO Lafley makes changes that began with previous CEO in the 1990s.Significant changes made on structural lines. Previous CEO, Jager, made changes using combative style.

Leading Change at P&G(part 2 of 3)Corporate headquarters undergoing change. Executives have open offices.Division presidents offices located with their teams.Changes made without alienating employees.

Leading Change at P&G(part 3 of 3)Why did one CEO succeed in making changes while another failed? Jager gruff and Lafley soothing. Jager bullied and Lafley persuades. Lafley says of change: we are in the business of leading change.

Organizational ChangeStarting point for setting change program is definition of total change strategy.OD strategy is a plan for integrating different activities to accomplish objectives.

Three Basic Approaches to Organization ChangeStructuralTechnicalBehavioralDeveloping strategy includes planning activities to resolve difficulties and build on strengths.

Structural Approach to ChangeChanges that relate elements of organization to one another.Includes removing or adding layers to hierarchy.Downsizing associated with restructuring.Changes can involve decentralization and centralization.

Technical Approach to ChangeChanges in machinery, methods, automation, and job design.Changes help companies become more productive.

Behavioral Approach to ChangeEmphasizes better utilization of human resources by improving:Morale.Motivation.Commitment of members.OD traditionally associated with behavioral strategies.

Changes Require All StrategiesStructural, technological, and behavioral strategies not OD change strategies per se.Determining feature of an OD strategy is process used to arrive at strategy.

Our Changing World: Japan Tries to Restructure (part 1 of 2)In 1980s Japanese companies model to world.Recently, Japanese companies failed to respond to changing world.Nissan first company to close major factory in Japanese auto-industry.

Our Changing World: Japan Tries to Restructure (part 2 of 2)Nissan failing when Renault took control.Ghosn brought in to turn company around.Shut down 5 plants, reduced workforce by 23,000, shifted production to U.S.Most experts say do not count Japan out.A viable Japan may emerge.

Integration of Change Strategies (part 1 of 2)OD deals with change from integrated standpoint that considers: Structure Technology Behavior Interdependence of subelements (departments) needs to be considered.

Figure 8.1Integrated Approach to Change

Integration of Change Strategies (part 2 of 2) Change strategies need to take account of overt and covert elements. Second-order consequences consider change in one area that influences others.

Figure 8.2Organization Iceberg Approach to OD

Stream AnalysisUseful in planning.Helps organization plan interventions.Provides graphical view of changes.Allows progress to be plotted.

Figure 8.3Stream Analysis Chart

Selecting an OD InterventionPractitioner and client consider:Potential results of technique.Potential implementation of technique including costs versus benefit.Potential acceptance of technique.

OD in Practice: Is It a Kindler, Gentler Microsoft? (part 1 of 3)Changes at Microsoft initiated at top.Gates stepped down as CEO and appointed Ballmer CEO and president.Both wanted to reinvent Microsoft. Microsoft restructured to be responsive to customers.

OD in Practice (part 2 of 3)Executives given power to run units with less supervision.Ballmer encouraging everyone to rethink the way they do their jobs. Ballmer wants people to be respectful to others.

OD in Practice (part 3 of 3)He wants managers to work collaboratively. Collaboration may produce complacency and stifle innovation.Ballmer has history of humiliating executives that may discourage real change.

Overview of Major OD Intervention TechniquesIntervention techniques focus on 4 categories:Individual or interpersonal level.Team or group level.Intergroup level.Total organizational system level.

Table 8.1OD Interventions: An Overview (part 1 of 2)

Table 8.1OD Interventions: An Overview (part 2 of 2)

Key Words and ConceptsBehavioral strategies - places emphasis on human resources.OD intervention - actions designed to improve the health of the client system.OD strategy - a plan for change using structural, technical, and behavioral methods.

Parkinsons Laws - summarizes the problems of inefficient practices in organizations.Second-order consequences - indirect consequences that result from change.Stream analysis - method useful in planning that plots interventions over period of time.

Structural strategies - alters framework that relates parts of organization to one another.Technological strategies - changes in machinery, methods, and job design.Virtual meetings - meetings that occur electronically over telecommunications lines and Internet.

Preparations for Next ChapterRead Chapter 9.Complete Step 1 of OD Skills Simulation 9.1.Simulation 9.3, complete Steps 1 and 2.Read and analyze Case: The Sundale Club.