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Chapter 1: What Is Organization Development?
Organization Development Defined (1 of 2)
Interdisciplinary field.
Definitions, mutual discussion, and constraints.
Richard Beckhard’s definition most cited.
Critics of Beckhard’s definition.
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Interdisciplinary field: Organization development is an interdisciplinary field with contributions from business, industrial/organizational psychology, human resources management, communication, sociology, and many other disciplines.
Definitions, mutual discussion, and constraints: Definitions can be illuminating, as they point us in a direction with a context for mutual discussion, but they can also be constraining, as certain concepts are inevitably left out, with boundaries drawn to exclude some activities.
Richard Beckhard’s definition most cited: OD is an effort planned, organizationwide, and managed from the top, to increase organization effectiveness and health through planned interventions in the organization’s “processes,” using behavioral-science knowledge.
Critics of Beckhard’s definition: Some critique this definition, however, for its emphases on planned change and the need to drive organizational change through top management. Many contemporary OD activities do not necessarily happen at the top management level, as increasingly organizations are developing less hierarchical structures.
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Organization Development Defined (2 of 2)
Burke’s and Bradford’s definition.
Anderson’s definition.
Definitions include consistent themes.
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Burke’s and Bradford’s definition: Organization development is a systemwide process of planned change aimed toward improving overall organization effectiveness by way of enhanced congruence of key organizational dimensions. This definition is based on a set of values, largely humanistic; application of the behavioral sciences; and open systems theory.
Anderson’s definition: Organization development is the process of increasing organizational effectiveness and facilitating personal and organizational change through the use of interventions driven by social and behavioral science knowledge.
Definitions include consistent themes: They propose that an outcome of OD activities is organizational effectiveness and also stress the applicability of knowledge gained through the social and behavioral sciences to organizational settings.
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Making the Case for Organization Development (1 of 2)
Backdrop and purpose is change.
Organizations and the need to change.
Change required of team members.
Change is required of individuals.
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Backdrop and purpose is change: Because of its impact on the organizational culture and potential importance to the organization’s success, organizational change has been a frequent topic of interest to both academic and popular management thinkers. With change as the overriding context for OD work, OD practitioners develop interventions so that change can be developed and integrated into the organization’s functioning.
Organizations and the need to change: Change is required at the organizational level as customers demand more, technologies are developed with a rapidly changing life cycle, and investors demand results. This requires that organizations develop new strategies, economic structures, technologies, organizational structures, and processes.
Change required of team members: Cultural differences, changes in communication technologies, and a changing diverse workforce all combine to complicate how team members work together. Role conflict and confusion in decision processes and decision authority are common when members who have never worked together are thrown into an ad hoc team that is responsible for rapid change and innovation.
Change is required of individuals: Employees learn new skills as jobs change or are eliminated. Organizational members are expected to quickly and flexibly adapt to the newest direction. Leaders today need to adapt to matrix organizational structures and new participative styles of leadership rather than old hierarchical patterns and command and control leadership. For organizational members, change can be enlightening and exciting, and it can be hurtful, stressful, and frustrating.
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Making the Case for Organization Development (2 of 2)
Change is likely to continue.
Effective ways to manage change.
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Change is likely to continue: Whereas some decry an overabundance of change in organizations, others note that it is the defining characteristic of the current era in organizations and that becoming competent at organizational change is a necessary and distinguishing characteristic of successful organizations.
Effective ways to manage change: Creating and managing change in order to create higher-performing organizations in which individuals can grow and develop is a central theme of the field of OD. When we speak of organization development, we are referring to the management of certain kinds of these changes, especially how people implement and are affected by them.
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What Organization Development Looks Like (1 of 8)
Example 1: Increasing Employee Participation in a Public Sector Organization
Initiative aimed to reduce bureaucracy.
Two Dublin offices: 50 employees each.
Follow-up data gathering occurred.
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Initiative aimed to reduce bureaucracy: In the Republic of Ireland, a special initiative aimed to reduce bureaucracy in the public sector to gain efficiency, improve customer service, and improve interdepartmental coordination.
Two Dublin offices of 50 employees each: These offices chose to involve employees in the development of an initiative that would improve working conditions in the department as well as increase the employees’ capacity for managing changes. A project steering team was formed, and it began by administering an employee survey to inquire about working relationships, career development, training, technology, and management.
Follow-up data gathering occurred: In focus groups and individual interviews, the tremendous response rate of more than 90 percent gave the steering team a positive feeling about the engagement of the population. But the results of the survey indicated that a great deal of improvement was necessary.
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What Organization Development Looks Like (2 of 8)
Example 1: Increasing Employee Participation in a Public Sector Organization
Steering team invited volunteers.
Increased collaboration and interaction.
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Steering team invited volunteers: Teams began to question standard practices and inefficiencies and to suggest improvements, eventually devising a list of almost 30 actions that they could take. As one manager put it, “I have learned that a little encouragement goes a long way and people are capable of much more than given credit for in their normal everyday routine.”
Increased collaboration and interaction: There appeared to be an enhanced acceptance of the change process, coupled with demands for better communications, increased involvement in decision making, changed relationships with supervisors, and improved access to training and development opportunities.
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What Organization Development Looks Like (3 of 8)
Example 2: Senior Management Coaching at Vodaphone
Faced with increasing competition.
Wanted to encourage empowered culture.
Culture initiatives were implemented.
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Faced with increasing competition: Vodaphone realized that in order to remain innovative and a leader in a challenging market, the culture of the organization would need to adapt accordingly.
Wanted to encourage empowered culture: The company wanted to encourage a culture of empowered teams that made their own decisions and shared learning and development, speed, and accountability.
Culture initiatives were implemented: development of shared values, introduction of IT systems that shared and exchanged information across major divisions that had hindered cross-functional learning, and establishment of teams and a team-building program.
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What Organization Development Looks Like (4 of 8)
Example 2: Senior Management Coaching at Vodaphone
Leadership coaching program.
Teams began to feel confident.
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Leadership coaching program: To support the initiatives and encourage a new, collaborative management style, Vodaphone implemented a leadership coaching program.
Teams began to feel confident: As a result of the program, managers began to delegate more as teams started to solve problems themselves.
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What Organization Development Looks Like (5 of 8)
Example 3: Team Development in a Cancer Center
Health care workers experience burnout.
Creating a leadership team.
Team participated in important activities.
Facilitators conducted interviews.
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Health care workers experience burnout: Many researchers have found that health care workers in particular need clear roles, professional autonomy, and social support to reduce burnout and turnover.
Creating a leadership team: In one Canadian cancer center, a senior administrator sought to address some of these needs by creating a leadership team that could manage its own work in a multidisciplinary team environment.
Team participated in important activities: Members did role play and dramatic exercises in which they took on one another’s roles in order to be able to see how others see them. They completed surveys of their personal working styles to understand their own communication and behavior patterns. The team learned problem-solving techniques, they clarified roles, and they established group goals.
Facilitators conducted interviews: All of the participants reported a better sense of belonging, a feeling of trust and safety with the team, and a better understanding of themselves and others with whom they worked.
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What Organization Development Looks Like (6 of 8)
Example 4: A Future Search Conference in a Northern California Community
Real estate prices increased.
Affordable housing became problem.
Consortium of leaders of communities.
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Real estate prices increased: In the late 1960s, the University of California, Santa Cruz, opened its doors, and in the following years the county began to experience a demographic shift as people began to move to the area and real estate prices skyrocketed.
Affordable housing became problem: By 1990, the population had reached 250,000 residents, and increasingly expensive real estate prices meant that many residents could no longer afford to live there.
Consortium of leaders of communities: In the mid-1990s, a consortium of leaders representing different community groups decided to explore the problem further by holding a future search conference. Attendees were chosen to try to mirror the community as a “vertical slice” of the population. They called the conference “Coming Together as a Community Around Housing: A Search for Our Future in Santa Cruz County.”
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What Organization Development Looks Like (7 of 8)
Example 4: A Future Search Conference in a Northern California Community
Attendees explored their shared past.
Reached important goals.
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Attendees explored their shared past: They discussed the history of the county and their own place in it. Next, they described the current state of the county and the issues that were currently being addressed by the stakeholder groups in attendance. Finally, the attendees explored what they wanted to work on in their stakeholder groups. They described a future county environment 10 years out and presented scenarios that took a creative form as imaginary TV shows and board of supervisors meetings. Group members committed to action plans, including short- and long-term goals.
Reached important goals: Not only had the attendees been able to increase funding for a farmworkers housing loan program and create a rental assistance fund, but they were on their way to building a $5.5 million low-income housing project. They embarked on diversity training in their stakeholder groups, created a citizen action corps, invited other community members to participate on additional task forces, and created a plan to revitalize a local downtown area.
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What Organization Development Looks Like (8 of 8)
Example 5: A Long-Term Strategic Change Engagement
Expansion prompted reorganization.
Behavioral changes were needed.
Interviews and surveys conducted.
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Expansion prompted reorganization: To support the culture of the new organization, executives developed a mission and vision statement that explained the company’s new values and asked managers to cascade these messages to their staffs.
Behavioral changes were needed: The director of the newly formed shared services centers contacted external consultants, suspecting that a simple communication cascade to employees would not result in the behavioral changes needed in the new structure.
Interviews and surveys conducted: Leaders reported noticing a more trusting relationship between employees and their managers characterized by more open communication. Center managers took the initiative to make regular and ongoing improvements to their units.
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What Organization Development Is Not (1 of 5)
Management Consulting
OD applicable to functional areas.
OD offers relevant techniques.
OD offers consultation on process.
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OD applicable to functional areas: OD can be distinguished from management consulting in specific functional areas such as finance, marketing, corporate strategy, supply chain management, or information technology applications.
OD offers processes and techniques: An OD practitioner would not likely use expertise in one of these content areas to make recommendations about how an organization does this activity. Instead, an OD practitioner would be more likely to assist the organization in implementation of the kinds of changes that management consultants would advise them to make.
OD offers consultation on process: Consulting where the practitioner offers content advice falls under the heading of management consulting, which also is not based on OD’s set of foundational values.
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What Organization Development Is Not (2 of 5)
Training and Development
OD not confined to training.
Learning is not sole objective.
Professionals identify need to train.
Training programs for large audience.
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OD not confined to training: While individual and organization learning is a part of OD and a key value we will discuss in a later chapter, OD work is not confined to training activities.
Learning is not sole objective: OD deals with organizational change efforts that may or may not involve members of the organization needing to learn specific new skills or systems.
Professionals identify need to train: Many training and development professionals are gravitating toward OD to enhance their skills in identifying the structural elements of organizations that need to be changed or enhanced for training and new skills to be effective.
Training programs for large audience: In addition, most training programs are developed for a large audience, often independent of how the program would be applied in any given organization. While some OD interventions do incorporate training programs and skill building, OD is more centrally concerned with the systemic context that would make a training program successful.
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What Organization Development Is Not (3 of 5)
Short Term
OD intended for long-term change.
Develop systemic long-lasting changes.
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OD intended for long-term change: Even in cases in which the intervention is carried out over a short period (such as the several-day workshops conducted at the cancer center described earlier), the change is intended to be a long-term or permanent one.
Develop systemic long-lasting changes: OD efforts are intended to develop systemic changes that are long lasting. In the contemporary environment, in which changes are constantly being made, this can be particularly challenging.
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What Organization Development Is Not (4 of 5)
The Application of a Toolkit
OD practitioners speak of toolkit.
Confusing OD with a toolkit.
Seeking tools without OD knowledge.
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OD practitioners speak of toolkit: It is true that OD does occasionally involve the application of an instrumented training or standard models, but it is also more than that.
Confusing OD with a toolkit: To confuse OD with a toolkit is to deny that it also has values that complement its science and that each OD engagement has somewhat unique applications.
Seeking tools without OD knowledge: Students of OD who seek out tools without being knowledgeable about the OD process and the reasons for the use of the tools are likely to find themselves having learned how to use a hammer and enthusiastically go around looking for nails (only to realize that not every problem looks like the same nail).
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What Organization Development Is Not (5 of 5)
The Application of a Toolkit
Knowledge does not substitute knowhow.
OD is more than rigid procedure.
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Knowledge does not substitute knowhow: Knowledge of many different kinds of interventions does not substitute for the knowhow of sensing what is needed “right now.” In fact, having a skillset of interventions “at the ready” makes it harder to stay in the current reality because one is always looking for opportunities to use what one believes oneself to be good at.
OD is more than rigid procedure: It involves being attuned to the social and personal dynamics of the client organization that usually require flexibility in problem solving, not a standardized set of procedures or tools.
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Who This Book Is For
Students, practitioners, and managers.
Not organizational development.
Anyone who must lead change.
Organizational members than employees.
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Students, practitioners, and managers: This book is for students, practitioners, and managers who seek to learn more about the process of organizational change following organization development values and practices.
Not organizational development: We will use the term organization development, as most academic audiences prefer, over the term organizational development, which seems to dominate spoken and written practitioner communication. We will also refer to the organization development practitioner, consultant, and change agent in this book as a single general audience, because these terms emphasize that OD is practiced by a large community that can include more than just internal and external paid OD consultants.
Anyone who must lead change: With the magnitude and frequency of organizational change occurring today, this encompasses a wide variety of roles and is an increasingly diverse and growing community. OD practitioner can include the internal or external organization development consultant, but also managers and executives; human resources and training professionals; quality managers; project managers and information technology specialists; educators; health care administrators; directors of nonprofit organizations; leaders in state, local, and federal government agencies.
Organizational members than employees: We will also more frequently discuss organizational members than employees, which is a more inclusive term that includes volunteers in nonprofit groups and others who are connected to organizations but may not have an employment relationship with them. The term also is intended to include not just leaders, executives, and managers but also employees at all levels.
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Chapter 2: History of Organization Development
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A History of Organization Development
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| Period | Theme | Influence Today | |
| 1940s | First-Generation OD | laboratory training andt-groups | small-group research leadership styles team building |
| 1950s | action research, survey feedback, and sociotechnical systems | employee surveys organization development processes sociotechnical systems theory and design | |
| 1960s | Management practices | participative management | |
| 1970s | Quality and employee involvement | Quality programs such as six sigma, total Quality Management, and self-managed or employee-directed teams | |
| 1980s | Second-Generation OD | organizational culture | Culture work, specifically in mergers and acquisitions |
| 1980s–1990s | Change management, strategic change, and reengineering | systems theory, large-scale and whole-organization interventions | |
| 1990s | organizational learning | Currently practiced; appreciative inquiry | |
| 2000s | organizational effectiveness and employee engagement | Currently practiced | |
| 2010s | agility and collaboration | Currently practiced; dialogic oD |
Table 2.1 History of Organization Development
Table 2.1: History of Organization Development.
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Laboratory Training and T-Groups (1 of 2)
Kurt Lewin (1890–1947): founder of modern social psychology, interested in groups:
Founded Research Center for Group Dynamics at MIT; National Training Laboratory (NTL).
T-groups: small unstructured groups, facilitated to explore personal issues.
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Laboratory Training and T-Groups (2 of 2)
Attendees and researchers learn that people can learn about their own behavior when they get feedback about it from an observer.
The concept takes hold among executives and managers, prompted by a 1955 BusinessWeek article.
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The concept takes hold among executives and managers, prompted by a 1955 BusinessWeek article: In the next ten years, more than 20,000 people will attend a T-group.
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Action Research
Action Research (Lewin’s term): The process of bringing social research practices to people and groups to develop theoretical and practical knowledge and contribute to change.
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Survey Feedback (1 of 2)
Late 1940s/Early 1950s survey study at Detroit Edison:
First survey of 8,000 employees and managers to understand their attitudes and opinions about the company and work environment.
Feedback shared in an “interlocking chain of conferences.”
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Survey Feedback (2 of 2)
Late 1940s/Early 1950s survey study at Detroit Edison:
Second survey administered 2 years later as a follow-up. Some groups take action based on the results, some do not.
Third survey administered another 2 years later.
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Third survey administered another 2 years later: Finding: Among groups that took action based on the results, employees report positive changes about their work, supervisors, and work environment.
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Management Practices (1 of 5)
Reacting to prevailing management practices and based on new research findings, MacGregor, Likert, Blake and Mouton, and Herzberg (among others) proposed new ways of managing in order to improve productivity and employee motivation.
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Management Practices (2 of 5)
Douglas MacGregor:
Theory X.
Theory Y.
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Management Practices (3 of 5)
Likert’s “four systems” of work:
System 1: Exploitative Authoritative.
System 2: Benevolent Authoritative.
System 3: Consultative.
System 4: Participative Group.
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Management Practices (4 of 5)
Blake and Mouton’s Managerial Grid:
Concern for Production and Concern for People.
Rated on a scale of 1 (low) to 9 (high).
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Management Practices (5 of 5)
Herzberg’s “Motivation-Hygiene” Theory:
Motivators: Achievement, recognition, quality work, learning.
“Hygiene Factors”: Supervision, pay, benefits, physical work environment.
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Quality and Employee Involvement
Follows out of new set of management practices.
Employees involved and now begin to participate in quality teams.
Quality circles, ISO 9000, eventually Total Quality Management and Six Sigma.
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Employees involved and now begin to participate in quality teams: heavily influenced by Japanese styles of management now beginning to be noticed in American companies.
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Organizational Culture (1 of 2)
Culture: “the shared attitudes, values, beliefs, and customs of members of a social unit or organization.”
Interest explodes in the 1980s with books and magazine articles that suggest that the right culture can improve productivity and profits.
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Organizational Culture (2 of 2)
Organizations undertake culture “audits,” evaluate themselves against competitors, try to create “strong” cultures.
Elements of culture: language, metaphor, jargon, communication patterns, media, artifacts, stories, myths, legends, ceremonies and rituals, values, ethics, decision making styles, and more.
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Change and Reengineering (1 of 2)
OD becomes more strategic, connected to organization-wide concerns.
Practitioners help executives with vision, mission statements, values, strategic planning implementations.
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Change and Reengineering (2 of 2)
Organizational leaders realize that the right strategy is meaningless unless communicated, understood, and adopted by organizational members.
Explosion of academic research in change management.
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Organizational Learning (1 of 2)
Grows in 1990 with the publication of Peter Senge’s book The Fifth Discipline.
Systems thinking.
Personal mastery.
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Organizational Learning (2 of 2)
Mental models.
Shared vision.
Team learning.
Single loop versus double loop learning.
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Organizational Effectiveness and Employee Engagement
OE replaces Organization Development as a preferred term in some practitioner circles; may be an attempt to stress the business results focus.
Engagement replaces earlier terms such as motivation, morale, and satisfaction.
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