Eighth Edition

AN EXPERIENTIAL APPROACHTO ORGANIZATION

DEVELOPMENT

Donald R. BrownAntelope Valley College

Prentice HallBoston Columbus Indianapolis New York San Francisco Upper Saddle River

Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal TorontoDelhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

CONTENTS

Preface xv

Part 1 Anticipating Change 1Chapter 1 Organization Development and Reinventing

the Organization 3Change Is the Challenge for Organizations 3What Is Organization Development? 4

The Characteristics of Organization Development 5Why Organization Development? 6The Emergence of OD 6

The Only Constant Is Change 6The Evolution of Organization Development 8

NTL Laboratory-Training Methods 9Survey Research and Feedback 9The Extent of OD Applications 9

Who Does Organization Development? 9The Organization Culture 10The Socialization Process 11

Expectations of New Employees 12Encountering the Organization's Culture 12Adjusting to the Culture and Norms 12 -vReceiving Feedback 13

Psychological Contracts 14A Model for Organizational Development 14

Stage 1: Anticipate a Need for Change 15Stage 2: Develop the Practitioner-Client Relationship 15Stage 3: The Diagnostic Process 16Stage 4: Action Plans, Strategies, and Techniques 16Stage 5: Self-Renewal, Monitor, and Stabilize 16Continuous Improvement 16

Summary 17 Review Questions 18 Key Words andConcepts 18 OD Skills Simulation 1.1 Auditioning for the

. Saturday Night Live Guest Host Spot 19 OD Skills Simulation 1.2The Psychological Contract 21 Case: TGIF 28

. Chapter 1 Endnotes 30

Chapter 2 Organization Renewal: The Challenge of Change 32The Challenges of Change 32

Renewal 32Constant Change 33

Organization Renewal: Adapting to Change 34Approaches to Change 34A Model of Adaptive Orientation 36Sluggish-Thermostat Management (Stable Environment,

Low Adaptation) 36Satisficing Management (Stable Environment, High Adaptation) 37

vi Contents

Reactive Management (Hyperturbulent Environment, LowAdaptation) 37

Renewing/Transformational Management (HyperturbulentEnvironment, High Adaptation) 37

The Systems Approach: Finding New Ways to Work Together 38The Organization as a System 38Open Systems 39

The Sociotechnical System 40THE GOALS AND VALUES SUBSYSTEM 40THE TECHNICAL SUBSYSTEM 41THE STRUCTURAL SUBSYSTEM 41THE PSYCHOSOCIAL SUBSYSTEM (CULTURE) 41THE MANAGERIAL SUBSYSTEM 41

High-Performance Systems 41The Contingency Approach: No One Best Way 41

Future Shock and Change 42Organization Transformation and Organization Development 43

Individual Effectiveness 45Team Effectiveness 45Organization Effectiveness 45

Summary 46 Review Questions 46 Key Words andConcepts 46 OD Skills Simulation 2.1 OD Practitioner Behavior

, Profile I 47 Case: The NoGo Railroad 56 Chapter 2 Endnotes 60

Chapter 3 Changing the Culture 62Creating a Climate for Change 62Understanding Corporate Culture 62

What Is Corporate Culture? 63The Corporate Culture and Success 65The Impact of Key Factors 66

Cultural Resistance to Change 67Tools for Change 67

Information 67Support 67Resources 68

Ethical, Value, and Goal Considerations 69Ethical and Value Issues 70OD Implementation Issues 70Compatibility of Values 71Imposed Change 71Determining the Priority of the Goals 71

Summary 73 Review Questions 73 Key Words andConcepts 73 OD Skills Simulation 3.1 Downsizing: A Consensus-Seeking Activity 74 Case: The Dim Lighting Co. 81 Chapter 3 Endnotes 84

Part 2 Understanding the OD Process 85Chapter 4 Role and Style of the OD Practitioner 87

Haphazard versus Planned Change 87External and Internal Practitioners 88

Contents vii

The External Practitioner 89The Internal Practitioner 89The External-Internal Practitioner Team 90

OD Practitioner Styles 90The Stabilizer Style 90The Cheerleader Style 91The Analyzer Style 91The Persuader Style 91The Pathfinder Style 92

The Intervention Process 92The Readiness of the Organization for OD 92The Intervention 93Who Is the Client? 94The OD Practitioner's Role in the Intervention 94OD Practitioner Skills and Activities 95

Forming the Practitioner-Client Relationship 96Initial Perceptions 97Practitioner Style Model 99Developing a Trust Relationship 99Creating a Climate for Change 100Practitioner-Client Relationship Modes 100

The Formalization of Operating Ground Rules 102Warning Signs in the Practitioner-Client Relationship 102

The Level of Commitment to Change 102The Degree of Leverage or Power to Influence Change 103The Client's Manipulative Use of the Practitioner 103

Summary 103 Review Questions 103 Key Words andConcepts 104 OD Skills Simulation 4.1 Practitioner StyleMatrix 105 OD Skills Simulation 4.2 Conflict Styles 110 OD Skills Simulation 4.3 Perception 112 Case: The GraysonChemical Company 113 Chapter 4 Endnotes 115

Chapter 5 The Diagnostic Process 116Diagnosing Problem Areas 116What Is Diagnosis? 117

The Process 118The Performance Gap 118

The Data-Collection Process 120The Definition of Objectives 121The Selection of Key Factors 121The Selection of a Data-Gathering Method 122

SECONDARY SOURCES OF DATA 122EMPLOYEE SURVEYS AND QUESTIONNAIRES 123OTHER TYPES OF INSTRUMENTS 123DIRECT OBSERVATION 124INTERVIEWS 125

The Implementation of Data Collection 126The Analysis of Data 126Evaluating the Effectiveness of Data Collection 126

THE VALIDITY OF THE DATA 127

viii Contents

THE TIME TO COLLECT DATA 127THE COST OF DATA COLLECTION 127THE ORGANIZATIONAL CULTURE AND NORMS 127

THE HAWTHORNE EFFECT IN DATA COLLECTING 127

Diagnostic Models 127Differentiation-and-lntegration Model 127The Sociotechnical-Systems Model 129The Force-Field Analysis Model 129.

Warning Signs in the Diagnosis Process 130Confidentiality 130Overdiagnosis 131The Crisis Diagnosis 131The Threatening and Overwhelming Diagnosis 131The Practitioner's Favorite Diagnosis 131The Diagnosis of Symptoms 131

Summary 133 Review Questions 133 Key Words andConcepts 133 OD Skills Simulation 5.1 The AcquisitionDecision 134 Case: The Old Family Bank 141 Chapter 5Endnotes 143

Chapter 6 Overcoming Resistance to Change 144Change and Reinvent 144

^ The Life Cycle of Resistance to Change 145Phase 1: Change Introduced 145Phase 2: Forces Identified 145Phase 3: Direct Conflict 145Phase 4: Residual Resistance 145Phase 5: Change Established 145

Leading Change 146Advocates of Change 147Degree of Change 147Time Frame 147 ,Impact on Culture 148

EVALUATION OF CHANGE -148A Change Model 148Driving Forces Toward Acceptance of a Change Program 149

Dissatisfaction with the Present Situation 149External Pressures Toward Change 150Momentum Toward Change 151Motivation by Management 151

Restraining Forces Blocking Implementationof Change Programs 151Uncertainty Regarding Change: "The Comfort Zone" 152Fear of the Unknown 152Disruption of Routine 152Loss of Benefits: "What's in It for Me?" 152Threat to Security 152Threat to Position Power 153Redistribution of Power 153

Contents ix

Disturb Existing Social Networks 153Conformity to Norms and Culture 153Driving Forces and Restraining Forces

Act in Tandem 153Strategies to Increase Motivation 153

Climate Conducive to Change 154Clearly Articulated Vision 154Effective Communications 154Leadership of Managers 156Participation of Members 156Reward Systems 157Negotiation, Agreement, and Politics 157Power Strateg ies 158

Summary 159 Review Questions 159 Key Words andConcepts 159 OD Skills Simulation 6.1 Downsizing in theEnigma Company 160 OD Skills Simulation 6.2 Driving andRestraining Forces 164 OD Skills Simulation 6.3 Strategies forChange 166 Case: The Hexadecimal Company 167 Chapter 6 Endnotes 170

Part 3 Improving Excellence in Individuals 173Chapter 7 OD Intervention Strategies 175

Organizational Change 175Basic Strategies to Change 176

Structural Strategies 176Technological Strategies 177Behavioral Strategies 178

The Integration of Change Strategies 178Stream Analysis 181Selecting an OD Intervention 182The Major OD Intervention Techniques: An Overview 183

Summary 185 Review Questions 185 Keywordsand Concepts 185 OD Skills Simulation 7.1 The FranklinCompany 186 Case: The Farm Bank 194 Chapter 7Endnotes 197

Chapter 8 Process Intervention Skills 198A New Paradigm 198Process Interventions 199Group Process 200

Communications 200Member Roles and Functions 200Problem Solving and Decision Making 202Group Norms and Growth 202Leadership and Authority 203

Types of Process Interventions 203Clarifying and Summarizing 204Synthesizing and Generalizing 204Probing and Questioning 204

Contents

Listening 204Reflecting Feelings 204Providing Support, Coaching, and Counseling 204Modeling 205Setting the Agenda 205Feeding Back Observations 205Structural Suggestions . 205

Results of Process Interventions 205Summary 206 Review Questions 206 Key Words andConcepts 206 OD Skills Simulation 8.1 Apex Oil Spill 207 OD Skills Simulation 8.2 Trust Building 213 OD SkillsSimulation 8.3 Process Interventions 217 Case: The ODLetters 219 Chapter 8 Endnotes 222

Chapter 9 Employee Empowerment and InterpersonalInterventions 223Empowering the Individual 223Employee Empowerment 223Laboratory Learning 225

"~ The Objectives of Laboratory Learning 226The Use of Laboratory Learning in OD Programs 226Results of Laboratory Learning 226

Interpersonal Style: The Johari Window Model 226The Public Area 227The Blind Area 227The Closed Area 227The Unknown Area 228

Transactional Analysis 228 ^Structural Analysis 228Transactional Theory 229Psychological Positions and Scripts 231Authentic Communication and Relationships 232

Career Life Planning Interventions 232Steps in a Typical Career Life Planning Program 233The Results of Career Life Planning 233

Stress Management and Burnout 233 ,Major Sources of Stress 234Job Burnout 235Stress Management Interventions and Coping

with Stress 236Wellness Programs 236Relaxation Techniques 237Career Life Planning 237Stress Management Training 237Seminars on Job Burnout 237

Summary 238 Review Questions 238 Key Words andConcepts 239 OD Skills Simulation 9.1 SACOG 240 OD Skills Simulation 9.2 Johari Window 246 OD SkillsSimulation 9.3 Career Life Planning 251 Case: The SundaleClub 253 Chapter 9 Endnotes 256

Contents xi

Part 4 Developing High Performance in Teams 259Chapter 10 Team Development Interventions 261

Organizing Around Teams 261The Team Approach 262

Interdependence 262Team Building 262Virtual Teams 263

The Need for Team Development 264Categories of Team Interaction 265

SIMPLE SITUATIONS 265COMPLEX SITUATIONS 266PROBLEM SITUATIONS 266

Operating Problems of Work Teams 266GOALS 267MEMBER NEEDS 267NORMS 267

HOMOGENEOUS MEMBERS ' 267DECISION MAKING 267LEADERSHIP 267 'SIZE 267

Cohesiveness and Groupthink 268The Purpose of Team Development 269The Team Development Process 271

Step 1: Initiating the Team Development Meeting 272Step 2: Setting Objectives 272Step 3: Collecting Data 272Step 4: Planning the Meeting 272Step 5: Conducting the Meeting 272Step 6: Evaluating the Team Development Process 273Results of Team Development Meetings 273

Outdoor Experiential Laboratory Training 273The Outdoor Lab Process 275Cautions When Using Outdoor Labs 276Results of Outdoor Labs 276

Role Analysis and Role Negotiation 276Summary 278 Review Questions 278 Key Words andConcepts 278 OD Skills Simulation 10.1 Organization Task andProcess 279 OD Skills Simulation 10.2 Team Development 285 OD Skills Simulation 10.3 Role Analysis Team Development 288 Case: Steele Enterprises 289 Chapter 10 Endnotes 292

Chapter 11 Intergroup Development 294Changing Relationships 294Collaboration and Conflict 295Intergroup Operating Problems 297

Suboptimization 298Intergroup Competition 298Perceived Power Imbalance between Groups 299Role Conflict, Role Ambiguity 299

xii Contents

Personality Conflict 299Cooperation versus Competition 299Managing Conflict 300

Intergroup Techniques 301Third-Party Consultation 302

ENSURING MUTUAL MOTIVATION 302 ACHIEVING A BALANCE IN SITUATIONAL POWER 302

COORDINATING CONFRONTATION EFFORTS 302DEVELOPING OPENNESS IN COMMUNICATION 302MAINTAINING AN APPROPRIATE LEVEL OF TENSION 302

Organization Mirror 303Intergroup Team Building 303 ,

STEP 1: MAKE INTROSPECTIVE LISTS 303STEP 2: GROUPS MEET TOGETHER 303STEP 3: GROUPS MEET SEPARATELY 304STEP 4: CROSS GROUPS MEET 304STEP 5: FOLLOW-UP MEETING 304

Summary 304 Review Questions 305 Key Words andConcepts 305 OD Skills Simulation 11.1 The DisarmamentGame 306 OD Skills Simulation 11.2 Intergroup TeamBuilding 313 Case: The Exley Chemical Company 314 Chapter 11 Endnotes 317

Chapter 12 Goal Setting for Effective Organizations 319Goal Setting Can Drive the Bottom Line 319Goal-Setting Theory 319

More Difficult Goals Produce Better Performance 320Specific Hard Goals Are Better than "Do Your Best" Goals 321People May Abandon Goals If They Become Too Hard 321Participation in Setting Goals Increases Commitment and

Attainment of Goals 321Feedback and Goals Improve Performance 321Individual Differences Tend Not to Affect Goal Setting 322Goal Setting in Teams Deserves Special Consideration 322Managerial Support Is Critical 322

A Model for Goal Setting 323 .Results of Goal Setting 324

Management by Objectives 324The Purposes of MBO Programs 324The MBO Process 325Criticisms of MBO 326The Results of MBO 327

Summary 327 Review Questions 327 Key Words andConcepts 327 OD Skills Simulation 12.1 Organization GoalSetting 328 OD Skills Simulation 12.2 Managing byObjectives 335 Case: Valley Wide Utilities Company 337 Chapter 12 Endnotes 339

Chapter 13 Work Team Development 341Continuous Improvement Processes 341Job Design 342

Job Characteristics Theory 342

Contents xiii

Job Enrichment Theory 344Results of Job Design Programs 345

Total Quality Management (TQM) 345The Characteristics of TQM 346Quality 347Malcolm Baldrige National Quality Award 347Compatibility of TQM and OD 348

Self-Managed Work Teams - 349The Characteristics of Self-Managed Work Teams 350The Design of Jobs 350New Organizational Structures 351Management and Leadership Behavior 351The Reward System 352Role of Labor Unions 353Warning Signs 353

, Results of Self-Managed Teams 353Summary 354 Review Questions 354 Key Words andConcepts 354 OD Skills Simulation 13.1 Paper HouseProduction 355 OD Skills Simulation 13.2 TQM in TheUniversity Setting 361 Case: Wengart Aircraft 364 Chapter 13 Endnotes 367

Part 5 Building Success in Organizations 371Chapter 14 High-Performing Systems and the Learning Organization 373

System-Wide Interventions 373Survey Research and Feedback 374

The Steps in Survey Feedback 374The Results of Survey Research and Feedback 375

The Learning Organization 375Learning Organizations Are Pragmatic 376Core Values and Behaviors 377Characteristics of Learning Organizations 377

Reengineering: A Radical Redesign 379System 4 Management 379High-Performing Systems 381

HPS Criteria 381HPS Characteristics 382

The Grid OD Program 382Phase 1: Grid Seminars 384Phase 2: Teamwork Development 384Phase 3: Intergroup Development 384Phase 4: Development of an Ideal Strategic Model 385Phase 5: Implementing the Ideal Strategic Model 385Phase 6: Systematic Critique 385

Summary 386 Review Questions 386 Key Wordsand Concepts 386 OD Skills Simulation 14.1 BrentwoodDivision 387 Case: Tucker Knox Corporation 392 Chapter 14 Endnotes 397

xiv Contents

Chapter 15 Organization Transformation and Strategic Change 398Strategy and Transformation 398Organization Transformation 399

Strategies of Change 400Results of Organization Transformation 402

The Corporate Culture 403The Strategy-Culture Fit 403Core Characteristics 404Sharing the Vision 404Strong versus Weak Cultures 405The Strategy-Culture Matrix 406

MANAGE THE CHANGE (MANAGEABLE RISK) 407REINFORCE THE CULTURE (NEGLIGIBLE RISK) 407MANAGE AROUND THE CULTURE (MANAGEABLE RISK) 407CHANGE THE STRATEGY (UNACCEPTABLE RISK) 407

Strategic Change Management 408Changing the Corporate Culture 409

Summary 410 Review Questions 410 Key Wordsand Concepts 410 OD Skills Simulation 15.1 The GenTechCompany 411 Case: The Space Electronics Corporation 417 Chapter 15 Endnotes 419

Chapter 16 The Challenge and the Future for Organizations 420The Organization of the Future 420Monitor and Stabilize the OD Program 421

Feedback of Information 421Stabilize and Monitor Change 422Evaluate the OD Program 423Terminate Practitioner and Client Relationship 423Self Renewal 423

Emerging Issues and Values 424OD: Fad or Discipline? 425The Role of Values 426

THE PROFESSIONALISM OF OD 426THE CERTIFICATION OF OD PRACTITIONERS 426OVEREMPHASIS ON HUMAN AND SOCIAL INTERVENTION 426CONTROVERSY OVER WHAT ARE OD TECHNIQUES 426DEALING WITH POWER 426

LIMITATIONS OF TIME AND TERMINALITY 426

Conclusion for the Future 426Future Trends in Organization Development 427

Macrosystem Trends 428Interpersonal Trends 428Individual Trends 428 -x

The Future of OD 429Summary 430 Review Questions 431 Key Words andConcepts 431 OD Skills Simulation 16.1 OD PractitionerBehavior Profile II 432 OD Skills Simulation 16.2 The ODPractitioner 437 The Bob Knowlton Case 438 Chapter 16Endnotes 444

Index 445