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An Experiential Approach to Organization Development 7 th edition Chapter 8Slide 1
Chapter 8Chapter 8
OD Intervention
Strategies
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 2
Learning Objectives
Identify 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.
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 3
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.
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 4
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.
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 5
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.”
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 6
Organizational Change
Starting point for setting change program is
definition of total change strategy.
OD strategy is a plan for integrating different
activities to accomplish objectives.
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 7
Three Basic Approaches to Organization Change
1. Structural
2. Technical
3. Behavioral
Developing strategy includes planning activities
to resolve difficulties and build on strengths.
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 8
Structural Approach to Change
Changes 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.
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 9
Technical Approach to Change
Changes in machinery, methods, automation,
and job design.
Changes help companies become more
productive.
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 10
Behavioral Approach to Change
Emphasizes better utilization of human resources
by improving:
• Morale.
• Motivation.
• Commitment of members.
OD traditionally associated with behavioral
strategies.
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 11
Changes Require All Strategies
Structural, technological, and behavioral
strategies not OD change strategies per se.
Determining feature of an OD strategy is
process used to arrive at strategy.
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 12
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.
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 13
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.
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 14
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.
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 15
Figure 8.1Integrated Approach to Change
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 16
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.
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 17
Figure 8.2“Organization Iceberg” Approach to OD
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 18
Stream Analysis
Useful in planning.
Helps organization plan interventions.
Provides graphical view of changes.
Allows progress to be plotted.
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 19
Figure 8.3Stream Analysis Chart
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 20
Selecting an OD Intervention
Practitioner and client consider:
Potential results of technique.
Potential implementation of technique
including costs versus benefit.
Potential acceptance of technique.
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 21
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.
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 22
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.
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 23
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.
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 24
Overview of Major OD Intervention Techniques
Intervention techniques focus on 4 categories:
1. Individual or interpersonal level.
2. Team or group level.
3. Intergroup level.
4. Total organizational system level.
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 25
Table 8.1OD Interventions: An Overview (part 1 of 2)
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 26
Table 8.1OD Interventions: An Overview (part 2 of 2)
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 27
Key Words and Concepts
Behavioral 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.
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 28
Parkinson’s 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.
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 29
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.
An Experiential Approach to Organization Development 7 th edition
Chapter 8Slide 30
Preparations for Next Chapter
Read 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.