whether they will have access to their data

and who else in the organization will have

Chapter 7 – Collecting and Analyzing
similar access.
Diagnostic Information
7. What’s in it for you? This answer is aimed at
providing organization members with a clear
delineation of the benefits they can expect
ORGANIZATION DIAGNOSIS: the process of from the diagnosis.
collecting information that will be shared with the 8. Can I be trusted? The diagnostic
client in jointly assessing how the organization is relationship ultimately rests on the trust
functioning and determining the best change established between the consultant and
intervention. those providing the data.

THE DIAGNOSTIC RELATIONSHIP METHODS FOR COLLECTING DATA

In most cases of planned change, OD practitioners The four major techniques for gathering diagnostic
play an active role in gathering data from data are questionnaires, interviews, observations,
organization members for diagnostic purposes. and unobtrusive measures.
Establishing the diagnostic relationship between
the consultant and relevant organization members
is similar to forming a contract. It is meant to clarify QUESTIONNAIRES – One of the most efficient
expectations and to specify the conditions of the ways to collect data is through questionnaires.
relationship.
 typically contain fixed-response queries
about various features of an organization,
these paper-and-pencil measures can be
The answers to the following questions provide the administered to large numbers of people
substance of the diagnostic contract: simultaneously.
1. Who am I? The answer to this question  can vary in scope, some measuring
introduces the OD practitioner to the selected aspects of organizations and
organization, particularly to those members others assessing more comprehensive
who do not know the consultant and yet will organizational characteristics. They also
be asked to provide diagnostic data. can vary in the extent to which they are
2. Why am I here, and what am I doing? either standardized or tailored to a specific
These answers are aimed at defining the organization.
goals of the diagnosis and data-gathering Questionnaires, however, have a number of
activities. drawbacks that need to be taken into account in
3. Who do I work for? This answer clarifies choosing whether to employ them for data
who has hired the consultant, whether it be collection.
a manager, a group of managers, or a
group of employees and managers. 1. First, responses are limited to the questions
4. What do I want from you, and why? Here, asked in the instrument. They provide little
the consultant needs to specify how much opportunity to probe for additional data or to
time and effort people will need to give to ask for points of clarification.
provide valid data and subsequently to work 2. Second, questionnaires tend to be
with these data in solving problems. impersonal, and employees may not be
5. How will I protect your confidentiality? This willing to provide honest answers.
answer addresses member concerns about 3. Third, questionnaires often elicit response
who will see their responses and in what biases, such as the tendency to answer
form. questions in a socially acceptable manner.
6. Who will have access to the data? This makes it difficult to draw valid
Respondents typically want to know conclusions from employees’ self-reports.
  The OD practitioner may do this by walking
casually through a work area and looking
INTERVIEWS – A second important measurement
around or by simply counting the
technique is the individual or group interview.
occurrences of specific kinds of behaviours
 are probably the most widely used
OBSERVATIONS HAVE A NUMBER OF
technique for collecting data in OD. They
ADVANTAGES.
permit the interviewer to ask the respondent
direct questions.  FREE OF THE BIASES INHERENT IN
 Interviews may be highly structured— SELF-REPORT DATA – They put the
resembling questionnaires—or highly practitioner directly in touch with the
unstructured—starting with general behaviors in question, without having to rely
questions that allow the respondent to lead on others’ perceptions.
the way  REAL-TIME DATA – describing behavior
occurring in the present rather than the
Unstructured interviews are more general and
past. This avoids the distortions that
include the following broad questions about
invariably arise when people are asked to
organizational functioning:
recollect their behaviors.
 What are the major goals or objectives of  ADAPTIVE – in that the consultant can
the organization or department? modify what he or she chooses to observe,
 How does the organization currently depending on the circumstances.
perform with respect to these purposes?
 What are the strengths and weaknesses of PROBLEMS WITH OBSERVATIONS
the organization or department?
 What barriers stand in the way of good  difficulties interpreting the meaning
performance? underlying the observations – Practitioners
may need to devise a coding scheme to
make sense out of observations, and this
FOCUS GROUP OR SENSING MEETING – A can be expensive, take time, and introduce
popular type of group interview. These are biases into the data.
unstructured meetings conducted by a manager or
 Observers not only must decide which
a consultant.
people to observe, they also must choose
- economical way to obtain interview data and the time periods, territory, and events in
are especially effective in understanding which to make those observations. Failure
particular issues in greater depth. to attend to these sampling issues can
result in highly biased samples of
Group discussion – is frequently started by asking observational data.
general questions about organizational features
and functioning, an intervention’s progress, or
current performance.
UNOBTRUSIVE MEASURES – Unobtrusive data
This UNSTRUCTURED INTERVIEW – is a fast, are not collected directly from respondents but from
simple way to collect data about group behavior. secondary sources, such as company records and
archives.
- It allows members to discuss issues of
immediate concern and to engage actively - Unobtrusive measures also can help to
in the questioning and answering process. diagnose organization-level design
components—structure, work systems,
control systems, and human resources
OBSERVATIONS – One of the more direct ways of systems.
collecting data is simply to observe organizational
behaviors in their functional settings.
PROBLEMS OF UNOBTRUSIVE MEASURES - Attempts to summarize comments into
meaningful categories.
- records may not include data that is usable
by the consultant In general, however, the process can be broken
- may have own built-in biases down into three major steps:
1. Responses to a particular question are read
to gain familiarity with the range of
SAMPLING – Sampling is not an issue in many OD comments made and to determine whether
cases. Because OD practitioners collect interview some answers are occurring over and over
or questionnaire data from all members of the again.
organization or department in question, they do not 2. Second, based on this sampling of
have to worry about whether the information is comments, themes are generated that
representative of the organization or unit. capture recurring comments.
3. The respondents’ answers to a question are
then placed into one of the categories. The
ISSUES IN SAMPLING categories with the most responses
represent those themes that are most often
 SAMPLE SIZE
mentioned
o larger the population the more
difficult it is to establish a “right” FORCE-FIELD ANALYSIS – A second method for
sample size. analyzing qualitative data in OD derives from Kurt
o the larger the proportion of the Lewin’s three-step model of change.
population that is selected, the more
- This method organizes information
confidence one can have about the
quality of the sample. pertaining to organizational change into two
o limited resources constrain sample major categories: forces for change and
forces for maintaining the status quo or
size.
resisting change.
 SAMPLE SELECTION
o SIMPLE RANDOM SAMPLE – in QUANTITATIVE TOOLS – Methods for analyzing
which each member, behavior, or quantitative data range from simple descriptive
record has an equal chance of being statistics of items or scales from standard
selected. instruments to more sophisticated, multivariate
o STRATIFIED SAMPLE – the analysis of the underlying instrument properties and
population of members, events, or relationships among measured variables.
records is segregated into a number
- The most common quantitative tools are
of mutually exclusive subpopulations
means, standard deviations, and frequency
and a random sample is taken from
distributions; scattergrams and correlation
each subpopulation.
coefficients; and difference tests.

TECHNIQUES FOR ANALYZING DATA

MEANS, STANDARD DEVIATIONS, AND
QUALITATIVE TOOLS – Of the several methods FREQUENCY DISTRIBUTIONS – One of the most
for summarizing diagnostic data in qualitative economical and straightforward ways to summarize
terms, two of the most important are content quantitative data is to compute a mean and
analysis and force-field analysis standard deviation for each item or variable
measured.
CONTENT ANALYSIS – A popular technique for
assessing qualitative data, especially interview But the mean can be a misleading statistic. It only
data. describes the average value and thus provides no
information on the distribution of the responses.
FREQUENCY DISTRIBUTION – is a graphical
method for displaying data that shows the number
of times a particular response was given.

SCATTERGRAM AND CORRELATION

COEFFICIENTS – are measures of the strength of
a relationship between two variables.
SCATTERGRAM – is a diagram that visually
displays the relationship between two variables. It
is constructed by locating each case (person or
event) at the intersection of its value for each of the
two variables being compared.
CORRELATION COEFFICIENT – simply a number
that summarizes data in a scattergram.

DIFFERENCE TESTS – The final technique for

analyzing quantitative data is the difference test.

- It can be used to compare a sample group

against some standard or norm to
determine whether the group is above or
below that standard.
- It also can be used to determine whether
two samples are significantly different from
each other.
- They serve as a “basis for determining ‘how
good is good or how bad is bad.’ ”
- The second use of difference tests involves
assessing whether two or more groups
differ from one another on a particular
variable, such as job satisfaction or
absenteeism.
Chapter 8 – Feeding Back Diagnostic 7. SIGNIFICANT – feedback should be limited
Information to those problems that organization
members can do something about because
it will energize them and help direct their
Properly analyzed and meaningful data can have efforts toward realistic changes.
an impact on organizational change only if 8. COMPARATIVE – Data from comparative
organization members can use the information to groups should be provided to give
devise appropriate action plans. organization members a better idea of how
their group fits into a broader context.
9. UNFINALIZED – Feedback is primarily a
DETERMINING THE CONTENT OF THE stimulus for action and thus should spur
FEEDBACK further diagnosis and problem solving.
Members should be encouraged, for
There is often more information than the client example, to use the data as a starting point
needs or can interpret in a realistic period of time. If for more in-depth discussion of
too many data are fed back, the client may decide organizational issues.
that changing is impossible. Therefore, OD
practitioners need to summarize the data in ways
that enable clients to understand the information CHARACTERISTICS OF THE FEEDBACK
and draw action implications from it. PROCESS
Typically, data are provided to organization
Several characteristics of effective feedback data members in a meeting or series of meetings.
have been described in the literature. They include Feedback meetings provide a forum for discussing
the following nine properties: the data, drawing relevant conclusions, and
devising preliminary action plans.
1. RELEVANT – Organization members are
likely to use feedback data for problem The most important objective of the feedback
solving when they find the information process is to ensure that organization members
meaningful. own the data.
2. UNDERSTANDABLE – Data must be
presented to organization members in a
form that is readily interpreted. Statistical OWNERSHIP – is the opposite of resistance to
data, for example, can be made change and refers to people’s willingness to take
understandable through the use of graphs responsibility for the data, their meaning, and the
and charts. consequences of using them to devise a change
3. DESCRIPTIVE – Feedback data need to be strategy
linked to real organizational behaviors if
Ownership of the feedback data is facilitated by the
they are to arouse and direct energy. The
following five features of successful feedback
use of examples and detailed illustrations
processes:
can help employees gain a better feel for
the data. 1. MOTIVATION TO WORK WITH THE DATA
4. VERIFIABLE – Feedback data should be – People need to feel that working with the
valid and accurate if they are to guide feedback data will have beneficial
action. outcomes.
5. TIMELY – Data should be fed back to - If people have little motivation to work with
members as quickly as possible after being the data or feel that there is little chance to
collected and analyzed. use the data for change, then the
6. LIMITED – Because people can easily information will not be owned by the client
become overloaded with too much system.
information, feedback data should be limited 2. STRUCTURE FOR THE MEETING –
to what employees can realistically process Feedback meetings need some structure or
at one time. they may degenerate into chaos or aimless
 discussion. An agenda or outline for the APPROACHES TO DIAGNOSES, AND
meeting and the presence of a discussion TRAINS CLIENT MEMBERS TO LEAD
leader can usually provide the necessary THE FEEDBACK PROCESS.
direction.
3. APPROPRITATE ATTENDANCE –
Generally, people who have common 4. DATA FEEDBACK USUALLY BEGINS AT
problems and can benefit from working THE TOP OF THE ORGANIZATION AND
together should be included in the feedback CASCADES DOWNWARD TO TROUPS
meeting. REPORTING TO MANAGERS AT
4. APPROPRIATE POWER – It is important to SUCCESSIVELY LOWER LEVELS – This
clarify the power possessed by the group. waterfall approach ensures that all groups
Members need to know on which issues at all organizational levels involved in the
they can make necessary changes, on survey receive appropriate feedback.
which they can only recommend changes, Data feedback also can occur in a “bottom-
and over which they have no control. up” approach. Initially, the data for specific
5. PROCESS HELP – People in feedback work groups or departments are fed back
meetings require assistance in working and action items proposed. At this point, the
together as a group. group addresses problems and issues
within its control.
5. FEEDBACK MEERINGS PROVIDE AN
SURVEY FEEDBACK – is a process of collecting OPPORTUNITY TO WORK WITH THE
and feeding back data from an organization or DATA – At each meeting, members discuss
department through the use of a questionnaire or and interpret their data, diagnose problem
survey. areas, and develop action plans.
The data are analyzed, fed back to organization
members, and used by them to diagnose the
organization and to develop interventions to LIMITATIONS OF SURVEY FEEDBACK
improve it. Although the use of survey feedback is widespread
in contemporary organizations, the following limits
and risks have been identified:
WHAT ARE THE STEPS?
1. AMBIGUITY OF PURPOSE – Managers
Survey feedback generally involves the following and staff groups responsible for the survey-
five steps: feedback process may have difficulty
reaching sufficient consensus about the
1. MEMBERS OF THE ORGANIZATION,
purposes of the survey, its content, and how
INCLUDING THOSE AT THE TOP, ARE
it will be fed back to participants.
INVOLVED IN PRELIMINARY PLANNING
2. DISTRUST – High levels of distrust in the
OF THE SURVEY. – In this step, all parties
organization can render the survey
must be clear about the level of analysis
feedback ineffective.
(organization, department, or small group)
and the objectives of the survey. 3. UNACCEPTABLE TOPICS – Most
2. THE SURVEY INSTRUMENT IS organizations have certain topics that they
do not want examined. This can severely
ADMINISTERED TO ALL MEMBERS OF
constrain the scope of the survey process,
THE ORGANIZATION OR DEPARTMENT
particularly if the neglected topics are
– This breadth of data collection is ideal, but
important to employees.
it may be appropriate to administer the
instrument to only a sample of members 4. ORGANIZATIONAL DISTURBANCE – The
because of cost or time constraints. survey-feedback process can unduly disturb
3. THE OD CONSULTATNTS USUALLY organizational functioning. Data collection
and feedback typically infringe on employee
ANALYZES THE SURVEY DATA,
work time.
TABULATES THE RESULTS, SUGGESTS
 discussed in the OD literature: those having to do
with the change situation (including the practitioner)
CHAPTER 9 DESIGNING INTERVENTIONS
and those related to the target of change. Both
kinds of contingencies need to be considered in
designing interventions
An ORGANIZATION DEVELOPMENT
INTERVENTION is a sequence of activities,
actions, and events intended to help an
CONTINGENCIES RELATED TO THE CHANGE
organization improve its performance and
SITUATION
effectiveness.
Researchers have identified a number of
contingencies present in the change situation that
WHAT ARE EFFECTIVE INTERVENTIONS? can affect intervention success. These include
individual differences among organization members
INTERVENTION – refers to a set of sequenced (for example, needs for autonomy), organizational
planned actions or events intended to help an factors (for example, management style and
organization increase its effectiveness. technical uncertainty), and dimensions of the
change process itself (for example, degree of top-
management support).
THREE MAJOR CRITERIA

1. The extent to which it fits the needs of the

READINESS FOR CHANGE – Intervention
organization
success depends heavily on the organization being
VALID INFORMATION – is the result of an
ready for planned change.
accurate diagnosis of the organization’s
functioning. CAPABILITY TO CHANGE – An organization’s
FREE AND INFORMED CHOICE – change capability is a function of the change
suggests that members are actively related knowledge and skills present in the
involved in making decisions about the organization, the resources and systems devoted to
changes that will affect them. change, and the organization’s experience with
INTERNAL COMMITMENT – means that change.
organization members accept ownership of
the intervention and take responsibility for CULTURAL CONTEXT – The national culture
implementing it. within which the organization is embedded can
exert a powerful influence on members’ reactions to
2. The degree to which it is based on causal change, so intervention design must account for the
knowledge of intended outcomes cultural values and assumptions held by
3. The extent to which it transfers change organization members.
management competence to organization
members.
CONTINGENCIES RELATED TO THE TARGET
OF CHANGE
OD interventions seek to change specific features
HOW TO DESIGN EFFECTIVE INTERVENTIONS or parts of organizations. These targets of change
are the main focus of interventions, and
Designing OD interventions requires paying careful researchers have identified two key contingencies
attention to the needs and dynamics of the change related to change targets that can affect
situation and crafting a change program that will be intervention success: the organizational issues that
consistent with the previously described criteria of the intervention is intended to resolve and the level
effective interventions. of organizational system at which the intervention is
expected to have a primary impact.
TWO MAJOR SETS OF CONTINGENCIES that
can affect intervention success have been
ORGANIZATIONAL ISSUES – Organizations need as problem solving, bargaining, and
to address certain issues to operate effectively. conciliation.
3. TEAM BUILDING – This intervention helps
1. STRATEGIC ISSUES – Organizations need work groups become more effective in
to decide what products or services they will accomplishing tasks.
provide and the markets in which they will - The consultant also may function as a
compete, as well as how to relate to their
resource person offering expertise
environments and how to transform
related to the group’s task.
themselves to keep pace with changing
conditions.
2. TECHNOLOGICAL AND STRUCTURAL
CHAPTER 13 presents human process
ISSUES – Organizations must decide how
interventions that are more systemwide than those
to divide work into departments and then
described in Chapter 12. They typically focus on
how to coordinate among those
the total organization or an entire department, as
departments to support strategic directions.
well as on relations between groups. These include
3. HUMAN RESOURCES ISSUES – These
the following three change programs:
issues are concerned with attracting
competent people to the organization, 1. ORGANIZATION CONFRONTATION
setting goals for them, appraising and MEETING. –This change method mobilizes
rewarding their performance, and ensuring organization members to identify problems,
that they develop their careers and manage set action targets, and begin working on
stress. problems.
4. HUMAN PROCESS ISSUES – These 2. INTERGROUP RELATIONS. – These
issues have to do with social processes interventions are designed to improve
occurring among organization members, interactions among different groups or
such as communication, decision making, departments in organizations.
leadership, and group dynamics. 3. LARGE-GROUP INTERVENTIONS –
These interventions involve getting a broad
ORGANIZATIONAL LEVELS – In addition to
variety of stakeholders into a large meeting
facing interrelated issues, organizations function at
to clarify important values, to develop new
different levels: individual, group, organization, and
ways of working, to articulate a new vision
transorganization.
for the organization, or to solve pressing
organizational problems.
OVERVIEW OF INTERVENTIONS
HUMAN PROCESS INTERVENTIONS – These TECHNOSTRUCTURAL INTERVENTIONS – are
processes include communication, problem solving, rooted in the disciplines of engineering, sociology,
group decision making, and leadership. This type of and psychology and in the applied fields of
intervention is deeply rooted in the history of OD sociotechnical systems and organization design.
and represents the earliest change programs
IN CHAPTER 14, we discuss the following three
characterizing OD.
technostructural interventions concerned with
1. PROCESS CONSULTATION – This restructuring organizations:
intervention focuses on interpersonal
relations and social dynamics occurring in 1. STRUCTURAL DESIGN. – This change
work groups. process concerns the organization’s division
2. THIRD-PARTY INTERVENTION. – This of labor—how to specialize task
change method is a form of process performances.
consultation aimed at dysfunctional 2. DOWNSIZING – This intervention reduces
interpersonal relations in organizations. costs and bureaucracy by decreasing the
- The third-party intervener helps people size of the organization through personnel
resolve conflicts through such methods layoffs, organization redesign, and
outsourcing.
 3. REENGINEERING. – This recent 3. REWARD SYSTEMS – This intervention
intervention radically redesigns the involves the design of organizational
organization’s core work processes to rewards to improve employee satisfaction
create tighter linkage and coordination and performance. It includes innovative
among the different tasks. approaches to pay, promotions, and fringe
benefits.
CHAPTER 15 is concerned with employee
involvement (EI). This broad category of
interventions is aimed at improving employee well-
CHAPTER 18 focuses on these three change
being and organizational effectiveness. It generally
methods associated with developing organizational
attempts to move knowledge, power, information,
talent:
and rewards downward in the organization.
Chapter 16 discusses work design. These change 1. COACHING AND MENTORING – This
programs are concerned with designing work for intervention helps managers and executives
work groups and individual jobs. The intervention to clarify their goals, deal with potential
includes engineering, motivational, and stumbling blocks, and improve their
sociotechnical systems approaches that produce performance.
traditionally designed jobs and work groups; 2. CAREER PLANNING AND
enriched jobs that provide employees with greater DEVELOPMENT – This intervention helps
task variety, autonomy, and feedback about results; people choose organizations and career
and self-managing teams that can govern their own paths and attain career objectives. It
task behaviors with limited external control. generally focuses on managers and
professional staff and is seen as a way of
HUMAN RESOURCES MANAGEMENT improving the quality of their work life.
INTERVENTIONS 3. MANAGEMENT AND LEADERSHIP –
Among the oldest strategies for
Part 5 of the book focuses on interventions used to
organizational change, training and
develop, integrate, and support people in
development interventions increase
organizations. These practices include career
organization members’ skills and
planning, reward systems, goal setting, and
knowledge.
performance appraisal— change methods that
traditionally have been associated with the human
resources function in organizations.
CHAPTER 19 describes two interventions for
supporting organization members:
CHAPTER 17 deals with interventions concerning 1. MANAGING WORKFORCE DIVERSITY.
performance management, including the following This change program makes human
change programs: resources practices more responsive to a
1. GOAL SETTING – This change program variety of individual needs.
involves setting clear and challenging goals. 2. EMPLOYEE STRESS AND WELLNESS –
It attempts to improve organization These interventions include employee
effectiveness by establishing a better fit assistance programs (EAPs) and stress
between personal and organizational management. EAPs are counseling
objectives. programs that help employees deal with
2. PERFORMANCE APPRAISAL – This substance abuse and mental health, marital,
and financial problems that often are
intervention is a systematic process of
associated with poor work performance.
jointly assessing work-related
achievements, strengths, and weaknesses.
- It is the primary human resources
management intervention for providing STRATEGIC INTERVENTIONS
performance feedback to individuals and Part 6 of the book considers interventions that link
work groups. the internal functioning of the organization to the
larger environment and transform the organization 1. SELF-DESIGNING ORGANIZATIONS –
to keep pace with changing conditions. This change program helps organizations
gain the capacity to alter themselves
IN CHAPTER 20, we discuss interventions that
fundamentally. It is a highly participative
transform the way the organization relates to its
process involving multiple stakeholders in
environment or operates internally:
setting strategic directions and designing
1. INTEGRATED STRATEGIC CHANGE – and implementing appropriate structures
This comprehensive OD intervention and processes.
describes how planned change can make a 2. ORGANIZATION LEARNING AND
value-added contribution to strategic KNOWLEDGE MANAGEMENT – This
management. intervention describes two interrelated
2. ORGANIZATION DESIGN – This change processes: organization learning
intervention addresses the organization’s (OL), which seeks to enhance an
architecture, or the extent to which organization’s capability to acquire and
structure, work design, human resource develop new knowledge, and knowledge
practices, and management and information management (KM), which focuses on how
systems are in alignment and support each that knowledge can be organized and used
other. to improve organization performance.
3. CULTURE CHANGE – This intervention 3. BUILT TO CHANGE ORGANIZATIONS –
helps organizations develop cultures This approach to continuous change
(behaviors, values, beliefs, and norms) challenges traditional design principles that
appropriate to their strategies and view stability and equilibrium as the keys to
environments. It focuses on developing a success. These principles support the belief
strong organization culture to keep that change is costly and should be
organization members pulling in the same avoided.
direction.
CHAPTER 21 addresses strategic interventions
that shape the collaborative strategies of
organizations:

1. MERGERS AND ACQUISITIONS – This

intervention describes how OD practitioners
can assist two or more organizations to form
a new entity. Addressing key strategic,
leadership, and cultural issues prior to the
legal and financial transaction helps to
smooth operational integration.
2. ALLIANCES – This collaborative
intervention helps two organizations pursue
a set of private and common goals through
the sharing of resources, including
intellectual property, people, capital,
technology, capabilities, or physical assets.
3. NETWORKS – This intervention helps to
develop relationships among three or more
organizations to perform tasks or solve
problems that are too complex for single
organizations to resolve.
In the final chapter of Part 6, we discuss three
interventions that are designed to support
continuous change:
CHAPTER 10 – LEADING AND MANAGING
CHANGE
3. CONVEY CREDIBLE POSITIVE
EXPECTATIONS FOR THE CHANGE –
Organization members invariably have
OVERVIEW OF CHANGE ACTIVITIES
expectations about the results of
The activities contribute to effective change organizational changes.
management and are listed roughly in the order in
which they typically are performed. Each activity Expectations can serve as a self-fulfilling
represents a key element in change leadership. prophecy, leading members to invest
energy in change programs that they expect
will succeed. When members expect
MOTIVATING CHANGE – includes creating a success, they are likely to develop greater
readiness for change among organization members commitment to the change process and to
and helping them address resistance to change. direct more energy into the constructive
behaviors needed to implement it.
MOTIVATION – is a critical issue in starting change
because ample evidence indicates that people and
organizations seek to preserve the status quo and OVERCOMING RESISTANCE TO CHANGE
are willing to change only when there are
compelling reasons to do so. Change can generate deep resistance in people
and in organizations, thus making it difficult, if not
CREATING READINESS FOR CHANGE – This impossible, to implement organizational
involves making people so dissatisfied with the improvements.13
status quo that they are motivated to try new work
processes, technologies, or ways of behaving. At a personal level, change can arouse
considerable anxiety about letting go of the known
THE FOLLOWING THREE METHODS CAN HELP and moving to an uncertain future.
GENERATE SUFFICIENT DISSATISFACTION TO
PRODUCE CHANGE: At the organization level, resistance to change can
come from three sources.
1. SENSITIZE ORGANIZATIONS TO
PRESSURES FOR CHANGE – TECHNICAL RESISTANCE – comes from
Organizations can make themselves more the habit of following common procedures
sensitive to pressures for change by and the consideration of sunk costs
encouraging leaders to surround invested in the status quo.
themselves with devil’s advocates; by
POLITICAL RESISTANCE – can arise
cultivating external networks that comprise
when organizational changes threaten
people or organizations with different
powerful stakeholders, such as top
perspectives and views; by visiting other
executive or staff personnel, or call into
organizations to gain exposure to new ideas
question the past decisions of leaders.
and methods; and by using external
standards of performance, such as CULTURAL RESISTANCE – takes the form
competitors’ progress or benchmarks, rather of systems and procedures that reinforce
than the organization’s own past standards the status quo, promoting conformity to
of performance. existing values, norms, and assumptions
2. REVEAL DISCREPANCIES BETWEEN about how things should operate.
CURRENT AND DESIRED STATES – In
There are at least three major strategies for dealing
this approach to generating a felt need for
with resistance to change:
change, information about the
organization’s current functioning is 1. EMPATHY AND SUPPORT – This strategy
gathered and compared with desired states can identify people who are having trouble
of operation. accepting the changes, the nature of their
resistance, and possible ways to overcome
 it, but it requires a great deal of empathy reputation; strategy describes how an
and support. objective will be achieved.
2. COMMUNICATION – Effective
ALTRUISM – infers a belief in serving others.
communication about changes and their
likely results can reduce this speculation Hatch’s concept of organization identity is simlar to
and allay unfounded fears. It can help purpose and core ideology. Identity—the way core
members realistically prepare for change. values, purpose, brand, and reputation are
3. PARTICIPATION AND INVOLVEMENT – integrated—provides guidelines for the strategic
One of the oldest and most effective choices that will work and can be implemented
strategies for overcoming resistance is to versus those that will not work because they
involve organization members directly in contradict the true nature of the organization.
planning and implementing change.
Members can provide a diversity of
information and ideas, which can contribute CONSTRUCTING THE ENVISIONED FUTURE –
to making the innovations effective and specific to the change project at hand and must be
appropriate to the situation. They also can created.
identify pitfalls and barriers to
implementation. The envisioned future typically includes the
following two elements that can be communicated
to organization members:
1. BOLD AND VALUED OUTCOMES –
CREATING A VISION Descriptions of envisioned futures often
include specific performance and human
It is one of the most popular yet least understood outcomes that the organization or unit would
practices in management. Generally, a vision like to achieve.
describes the core values and purpose that guide - can serve as goals for the change
the organization as well as an envisioned future process and standards for assessing
toward which change is directed. progress.
The vision also can energize commitment to
2. DESIRED FUTURE STATE – This element
change by providing members with a common goal
of the envisioned future specifies, in vivid
and a compelling rationale for why change is
detail, what the organization should look like
necessary and worth the effort.
to achieve bold and valued outcomes.
Creating a vision is considered a key element in
most leadership frameworks.
DEVELOPING POLITICAL SUPPORT – They act
to preserve or enhance their self-interests while
DESCRIBING THE CORE IDEOLOGY – It managing to arrive at a sufficient balance of power
describes the organization’s core values and to sustain commitment to the organization and
purpose and is relatively stable over time. achieve overall effectiveness.

CORE VALUES – typically include three to five Traditionally, OD has neglected political issues
basic principles or beliefs that have stood the test mainly because its humanistic roots promoted
of time and best represent what the organization collaboration and power sharing among individuals
stands for. and groups.

CORE PURPOSE – is its reason for being, the A growing number of advocates suggest that OD
idealistic motivation that brings people to work each practitioners can use power in positive ways.
day and gives work meaning.
 They can build their own power base to gain
- Purpose describes why the organization access to other power holders within the
exists and the organization’s organization.
understanding of its image, brand, and
  They can facilitate processes for examining
the uses of power in organizations and help
THREE MAJOR STRATEGIES FOR USING
power holders devise more creative and
POWER TO INFLUENCE OTHERS IN OD:
positive strategies than political bargaining,
deceit, and the like. 1. PLAYING IT STRAIGHT FORWARD – is
 They can help power holders confront the very consistent with an OD perspective, and
need for change and can help ensure that thus it is the most widely used power
the interests and concerns of those with strategy in OD. It involves determining the
less power are considered. needs of particular stakeholders and
presenting information about how the
changes can benefit them.
ASSESSING CHANGE AGENT POWER – The 2. USING SOCIAL NETWORKS – is more
first task is to evaluate the change agent’s own foreign to OD and involves forming alliances
sources of power. and coalitions with other powerful
individuals and groups, dealing directly with
By assessing their own power base, change agents key decision makers, and using formal and
can determine how to use it to influence others to
informal contacts to gain information.
support changes. They also can identify areas in
- In this strategy, change agents attempt
which they need to enhance their sources of power.
to use their social relationships to gain
support for changes
3. GOING AROUND THE FORMAL SYSTEM
GREINER AND SCHEIN 3 KEY SOURCES OF – is probably least used in OD and involves
PERSONAL POWER purposely circumventing organizational
KNOWLEDGE – bases of power include having structures and procedures to get the
expertise that is valued by others and controlling changes made.
important information.
PERSONALITY – sources of power can derive MANAGING THE TRANSITION – Implementing
from change agents’ charisma, reputation, and organization change involves moving from an
professional credibility. existing organization state to a desired future state.
OTHER’S SUPPORT – can contribute to individual BECKHARD AND HARRIS pointed out that the
power by providing access to information and transition may be quite different from the present
resource networks. Others also may use their state of the organization and consequently may
power on behalf of the change agent. require special management structures and
activities.

IDENTIFYING KEY STAKEHOLDERS – Having THREE MAJOR ACTIVITIES:

assessed their own power bases, change agents 1. ACTIVITY PLANNING – involves making a
should identify powerful individuals and groups with
road map for change, citing specific
an interest in the changes, such as staff groups,
activities and events that must occur if the
unions, departmental managers, and top-level
transition is to be successful.
executives.
- Activity planning also should gain top-
Once stakeholders are identified, creating a map of management approval, be cost effective,
their influence may be useful. and remain adaptable as feedback is
received during the change process.
INFLUENCING STAKEHOLDERS – This activity - An important feature of activity planning
involves gaining the support of key stakeholders to is that visions and desired future states
motivate a critical mass for change. can be quite general when compared
with the realities of implementing
change.
 2. COMMITMENT PLANNING – This activity
involves identifying key people and groups
BUILDING A SUPPORT SYSTEM FOR CHANGE
whose commitment is needed for change to
AGENTS – A support system typically consists of a
occur and formulating a strategy for gaining
network of people with whom the change agent has
their support.
close personal relationships—people who can give
3. CHANGE-MANAGEMENT STRUCTURES
emotional support, serve as a sounding board for
– Because organizational transitions tend to
ideas and problems, and challenge untested
be ambiguous and to need direction, special
assumptions.
structures for managing the change process
need to be created. DEVELOPING NEW COMPETENCIES AND
SKILLS – Change agents must ensure that such
learning occurs. They need to provide multiple
LEARNING PROCESS – Most organization learning opportunities, such as traditional training
changes involve the acquisition of new knowledge programs, on-the-job counseling and coaching, and
and skills that support new behaviors. experiential simulations, covering both technical
and social skills.
FOUR PRACTICES, supported by a continuous
dialogue and conversation process, were REINFORCING NEW BEHAVIORS – one of the
associated with accelerated transitions. most effective ways to sustain momentum for
change is to reinforce the kinds of behaviors
The first learning practice, creating a system view needed to implement the changes. This can be
of the organization, involves creating a model of accomplished by linking formal rewards directly to
work and change that allows individual the desired behaviors.
organizational members to see how their efforts
contribute to organizational functioning and STAYING THE COURSE – Change requires time,
performance. and many of the expected financial and
organizational benefits from change lag behind its
The second learning practice, creating shared implementation. If the organization changes again
meaning, describes the use of models, language, too quickly or abandons the change before it is fully
tools, and processes that provide people with a way implemented, the desired results may never
to making sense of the change. materialize.
Engaging in “after-action reviews” or other There are two primary reasons that
processes that reflect on experience is the third managers do not keep a steady focus on
learning practice. In this activity, initial attempts to change implementation:
try out new activities, new processes, or new
behaviors are assessed and reviewed. First, many managers fail to anticipate the
decline in performance, productivity, or
The final learning practice involves decentralizing satisfaction as change is implemented.
implementation processes and decisions to the
lowest levels possible in the organization, what the Second, many managers do not keep
researchers called “local self-design.” focused on a change because they want to
implement the next big idea that comes
along. When organizations change before
SUSTAINING MOMENTUM – Once organizational they have to, in response to the latest
changes are under way, explicit attention must be management fad, a “flavor-of-the-month”
directed to sustaining energy and commitment for cynicism can develop.
implementing them.
PROVIDING RESOURCES FOR CHANGE –
Implementing organization change generally
requires additional financial and human resources,
particularly if the organization continues day-to-day
operations while trying to change itself.
CHAPTER 11: EVALUATING AND intended to discover intervention outcomes may be
INSTITUTIONALIZING ORGANIZATION called evaluation feedback.
DEVELOPMENT INTERVENTIONS
Implementation feedback informs this process by
supplying data about the different features of the
intervention itself, perceptions of the people
EVALUATION – is concerned with providing
involved, and data about the immediate effects of
feedback to practitioners and organization
the intervention.
members about the progress and impact of
interventions. Once implementation feedback informs
organization members that the intervention is
- Evaluation processes consider both the sufficiently in place and accepted, evaluation
implementation success of the intended feedback begins.
intervention and the long-term results it
produces. The evaluation feedback includes all the data from
the satisfaction and performance measures used in
INSTITUTIONALIZATION – is a process for the implementation feedback.
maintaining a particular change for an appropriate
period of time.
MEASUREMENT – Providing useful
implementation and evaluation feedback involves
EVALUATING ORGANIZATION DEVELOPMENT two activities: selecting the appropriate variables
INTERVENTIONS and designing good measures.
Traditionally, OD evaluation has been discussed as SELECTING APPROPRIATE VARIABLES –
something that occurs after the intervention. Ideally, the variables measured in OD evaluation
There are two distinct types of OD evaluation: one should derive from the theory or conceptual model
intended to guide the implementation of underlying the intervention. The model should
interventions and another to assess their overall incorporate the key features of the intervention as
impact. The key issues in evaluation are well as its expected results.
measurement and research design. The job-level diagnostic model suggests a
number of measurement variables for
implementation and evaluation feedback.
IMPLEMENTATION AND EVALUATION
FEEDBACK – It is typically argued that once the
intervention is implemented, it should be evaluated DESIGNING GOOD MEASURES – Many of these
to discover whether it is producing the intended characteristics are linked to the extent to which a
effects. measurement is operationally defined, reliable, and
This after-implementation view of evaluation is only valid.
partially correct. It assumes that interventions have OPERATIONAL DEFINITION – A good measure is
been implemented as intended and that the key operationally defined; that is, it specifies the
purpose of evaluation is to assess their effects. empirical data needed, how they will be collected
Consequently, we should expand our view of and, most important, how they will be converted
evaluation to include both during- implementation from data to information.
assessments about if and how well changes are - They consist of specific computational
actually being implemented and after-
rules that can be used to construct
implementation evaluation of whether they are
measures for each of the behaviors.
producing expected results.
RELIABILITY – concerns the extent to which a
measure represents the “true” value of a variable—
Evaluation aimed at guiding implementation may be that is, how accurately the operational definition
called implementation feedback, and assessment translates data into information.
VALIDITY – concerns the extent to which a to rule out the possibility that the results are
measure actually reflects the variable it is intended caused by random error or chance.
to reflect.
The use of multiple measures also is important in
OD practitioners can increase the validity of their assessing perceptual changes resulting from
measures in several ways. First, ask colleagues interventions. Considerable research has identified
and clients if a proposed measure actually THREE TYPES OF CHANGE:
represents a particular variable. This is called face
ALPHA CHANGE – refers to movement
validity or content validity.
along a measure that reflects stable
Second, use multiple measures of the same dimensions of reality.
variable, as described in the section about
BETA CHANGE – involves the recalibration
reliability, to make preliminary assessments of the
of the intervals along some constant
measure’s criterion or convergent validity.
measure of reality.
A special case of criterion validity, called
GAMMA CHANGE – involves
discriminant validity, exists when the proposed
fundamentally redefining the measure as a
measure does not correlate with measures that it is
result of an OD intervention.
not supposed to correlate with.
Finally, predictive validity is demonstrated when the
variable of interest accurately forecasts another INSTITUTIONALIZING ORGANIZATIONAL
variable over time. CHANGES
Once it is determined that changes have been
implemented and are effective, attention is directed
at institutionalizing the changes—maintaining them
Research Design – The key issue is how to design as a normal part of the organization’s functioning
the assessment to show whether the intervention for an appropriate period of time.
did in fact produce the observed results. This is
INSTITUTIONALIZATION FRAMEWORK – The
called INTERNAL VALIDITY. The secondary
model shows that two key antecedents—
question of whether the intervention would work
organization and intervention characteristics—
similarly in other situations is referred to as external
affect different institutionalization processes
validity.
operating in organizations.
EXTERNAL VALIDITY is irrelevant without first
ORGANIZATION CHARACTERISTICS – three key
establishing an intervention’s primary effectiveness,
dimensions of an organization can affect
so internal validity is the essential minimum
intervention characteristics and institutionalization
requirement for assessing OD interventions.
processes:
1. CONGRUENCE – This is the degree to
Although several quasi-experimental designs are which an intervention is perceived as being
available, those with the following three features in harmony with the organization’s
are particularly powerful for assessing changes: managerial philosophy, strategy, and
structure; its current environment; and other
1. LONGITUDINAL MEASUREMENT – This changes taking place.
involves measuring results repeatedly over 2. STABILITY OF ENVIRONMENT AND
relatively long time periods. TECHNOLOGY – This involves the degree
2. COMPARISON UNIT – It is always to which the organization’s environment and
desirable to compare results in the technology are changing.
intervention situation with those in another 3. UNIONIZATION – Diffusion of interventions
situation where no such change has taken may be more difficult in unionized settings,
place. especially if the changes affect union
3. STATISTICAL ANALYSIS – Whenever contract issues, such as salary and fringe
possible, statistical methods should be used
 benefits, job design, and employee intervention behaviors and taking corrective
flexibility. action.

INTERVENTION CHARACTERISTICS INDICATORS OF INSTITUTIONALIZATION

1. GOAL SPECIFICITY – This involves the 1. KNOWLEDGE – This involves the extent to
extent to which intervention goals are which organization members have
specific rather than broad. knowledge of the behaviors associated with
2. PROGRAMMABILITY – This involves the an intervention.
degree to which the changes can be - It is concerned with whether members
programmed or the extent to which the know enough to perform the behaviors
different intervention characteristics can be and to recognize the consequences.
specified clearly in advance to enable 2. PERFORMANCE – This is concerned with
socialization, commitment, and reward the degree to which intervention behaviors
allocation. are actually performed.
3. LEVEL OF CHANGE TARGET – This 3. PREFERENCES – This involves the degree
concerns the extent to which the change to which organization members privately
target is the total organization, rather than a accept the organizational changes.
department or small work group. 4. NORMATIVE CONSENSUS – This focuses
4. INTERNAL SUPPORT – This refers to the on the extent to which people agree about
degree to which there is an internal support the appropriateness of the organizational
system to guide the change process. changes.
5. SPONSORSHIP – This concerns the 5. VALUE CONSENSUS – This is concerned
presence of a powerful sponsor who can with social consensus on values relevant to
initiate, allocate, and legitimize resources the organizational changes. Values are
for the intervention. beliefs about how people ought or ought not
to behave.

INSTITUTIONALIZATION PROCESS
1. SOCIALIZATION – This concerns the
transmission of information about beliefs,
preferences, norms, and values with respect
to the intervention.
2. COMMITMENT – This binds people to
behaviors associated with the intervention.
It includes initial commitment to the
program, as well as recommitment over
time.
3. REWARD ALLOCATION – This involves
linking rewards to the new behaviors
required by an intervention. Organizational
rewards can enhance the persistence of
changes in at least two ways.
4. DIFFUSION – This refers to the process of
transferring changes from one system to
another. Diffusion facilitates
institutionalization by providing a wider
organizational base to support the new
behaviors.
5. SENSING AND CALIBRATION – This
involves detecting deviations from desired
CHAPTER 12: INTERPERSONAL AND GROUP  Be constructively opportunistic with
PROCESS APPROACHES confrontive interventions. Although process
consultants must be willing to go with the
flow, they also must be willing to take
PROCESS CONSULTATION – helps group appropriate risks.
members understand, diagnose, and improve their  Everything is information; errors will always
behaviors. occur and are the prime source for learning.
Process consultants never can know fully
- is a general framework for carrying out the client’s reality and invariably will make
helping relationships. mistakes.
- Schein defines process consultation as  When in doubt, share the problem. The
“the creation of a relationship that default intervention in a helping relationship
permits the client to perceive, is to model openness by sharing the
understand, and act on the process dilemma of what to do next
events that occur in [his or her] internal
and external environment in order to
improve the situation as defined by the
GROUP PROCESS
client.”
 COMMUNICATION – One of the process
Schein proposes ten principles to guide the process
consultant’s areas of interest is the nature
consultant’s actions.
and style of communication, or the process
 Always try to be helpful – Process of transmitting and receiving thoughts, facts,
consultants must be mindful of their and feelings.
intentions, and each interaction must be  THE FUNCTIONAL ROLES OF GROUP
oriented toward being helpful. MEMBERS – The process consultant must
 Always stay in touch with the current reality. be keenly aware of the different roles
Each interaction should produce diagnostic individual members take on in a group.
information about the current situation.  GROUP PROBLEM SOLVING AND
 Access your ignorance. An important source DECISION MAKING – To be effective, a
of information about current reality is the group must be able to identify problems,
practitioner’s understanding of what is examine alternatives, and make decisions.
known, what is assumed, and what is not  GROUP NORMS – it develops group norms
known. or standards of behavior about what is good
 Everything you do is an intervention. Any or bad, allowed or forbidden, right or wrong
interaction in a consultative relationship  THE USE OF LEADERSHIP AND
generates information as well as AUTHORITY – A process consultant needs
consequences. to understand processes involved in
 The client owns the problem and the leadership and how different leadership
solution. This is a key principle in all OD styles can help or hinder a group’s
practice. Practitioners help clients solve functioning.
their own problems and learn to manage
future change.
 Go with the flow. When process consultants BASIC PROCESS INTERVENTIONS
access their own ignorance, they often
INDIVIDUAL INTERVENTIONS – These
realize that there is much about the client
interventions are designed primarily to help people
system and its culture that they do not
be more effective in their communication with
know.
others.
 Timing is crucial. Observations, comments,
questions, and other interventions intended GROUP INTERVENTIONS – These interventions
to be helpful may work in some are aimed at the process, content, or structure of
circumstances and fail in others. the group.
 factors and thereafter avoiding or blunting
them when the symptoms occur.
PROCES INTERVENTIONS – sensitize the
2. set limits on the form of the conflict. Conflict
group to its own internal processes and
can be constrained by informal gatherings
generate interest in analyzing them.
before a formal meeting or by exploration of
CONTENT INTERVENTIONS – help the other options.
group determine what it works on. They 3. help the parties cope differently with the
include comments, questions, or consequences of the conflict.
observations about group membership; 4. attempt to eliminate or to resolve the basic
agenda setting, review, and testing issues causing the conflict.
procedures; interpersonal issues; and
conceptual inputs on task-related topics.
FACILITATING THE CONFLICT RESOLUTION
STRUCTURAL INTERVENTIONS – help
PROCESS – Walton has identified a number of
the group examine the stable and recurring
factors and tactical choices that can facilitate the
methods it uses to accomplish tasks and
use of the episodic model in resolving the
deal with external issues.
underlying causes of conflict.

RESULTS OF PROCESS CONSULTATION

TEAM BUILDING – refers to a broad range of
The review suggests that process consultation has planned activities that help groups improve the way
positive effects on participants, according to self- they accomplish tasks, help members enhance
reports of greater personal involvement, higher their interpersonal and problemsolving skills, and
mutual influence, group effectiveness, and similar increase team performance.
variables.
- also can help groups overcome specific
problems,

THIRD-PARTY INTERVENTIONS – focus on TEAM BUILDING ACTIVITIES – A team is a group

conflicts arising between two or more people within of interdependent people who share a common
the same organization. purpose, have common work methods, and hold
each other accountable.
- Tjosvold notes that too little consensus
on the definition of conflict has
contributed to the perception that conflict
is bad.
- He suggests that conflict is best viewed
as “incompatible activities.”

AN EPISODIC MODEL OF CONFLICT –

Interpersonal conflict often occurs in iterative,
cyclical stages known as “episodes.”
Conflict has both costs and benefits to the
antagonists and to those in contact with them.
Unresolved conflict can proliferate and expand.
The episodic model identifies four strategies for
conflict resolution.
1. prevent the ignition of conflict by arriving at
a clear understanding of the triggering
CHAPTER 13: ORGANIZATION PROCESS INTERGROUP RELATIONS INTERVENTIONS
APPROACHES
The ability to diagnose and understand intergroup
relations is important for OD practitioners because;
CONFRONTATION MEETING – is an intervention 1. groups often must work with and through
designed to mobilize the resources of the entire other groups to accomplish their goals;
organization to identify problems, set priorities and 2. groups within the organization often create
action targets, and begins working on identified problems and place demands on each
problems. other; and
3. the quality of the relationships between
groups can affect the degree of
APPLICATION STAGES organizational effectiveness.
The organization confrontation meeting typically MICRO GROUPS – uses members from several
involves the following steps: groups to help solve organizationwide problems.

1. A group meeting of all those involved is - consists of a small number of individuals

scheduled and held in an appropriate place. who reflect the issue being addressed.
2. Groups are appointed representing all
APPLICATION STAGES The process of using a
departments of the organization.
microcosm group to address organizationwide
3. The point is stressed that the groups are to
issues involves the following five steps:
be open and honest and to work hard at
identifying problems they see in the 1. IDENTIFY AN ISSUE – This step involves
organization. finding a systemwide problem to be
4. The groups are given an hour or two to addressed. This may result from an
identify organization problems. organizational diagnosis or may be an idea
5. The groups then reconvene in a central generated by an organization member or
meeting place. task force.
6. Either then or later, the master list of 2. CONVENE THE GROUP – Once an issue
problems is broken down into categories. is identified, the microcosm group can be
7. Following problem categorization, formed. The most important convening
participants are divided into problem- principle is that group membership needs to
solving groups whose composition may, and reflect the appropriate mix of stakeholders
usually does, differ from that of the original related to the issue.
problem-identification groups. 3. PROVIDE GROUP TRAINING – Once the
8. Each group ranks the problems, develops a microcosm group is established, training is
tactical action plan, and determines an provided in group problem solving and
appropriate timetable for completing this decision making. Team-building
phase of the process. interventions also may be appropriate.
9. Each group then periodically reports its list 4. ADDRESS THE ISSUE – This step involves
of priorities and tactical plans of action to solving the problem and implementing
management or to the larger group. solutions. OD practitioners may help the
10. Schedules for periodic (frequently monthly) group diagnose, design, implement, and
follow-up meetings are established. evaluate changes.
5. DISSOLVE THE GROUP – The microcosm
RESULTS OF CONFRONTATION MEETINGS – In group can be disbanded following
many cases, the results appear dramatic in successful implementation of changes. This
mobilizing the total resources of the organization for typically involves writing a final report or
problem identification and solution. holding a final meeting.
RESOLVING INTERGROUP CONFLICT 5. CREATE AN IDEAL FUTURE SCENARIO
OF ENVIRONMENTAL EXPECTATIONS
The intergroup conflict intervention is designed
AND ORGANIZATION RESPONSES –
specifically to help two groups or departments
Members are asked to create alternative,
within an organization resolve dysfunctional
desirable futures.
conflicts. Intergroup conflict is neither good nor bad
6. COMPARE THE PRESENT WITH THE
in itself, and in some cases, conflict among
IDEAL FUTURE AND PREPARE AN
departments is necessary and productive for
ACTION PLAN FOR REDUCING THE
organizations.
DISCREPANCY – This last step identifies
specific actions that will move both the
environment and the organization toward
LARGE GROUP INTERVENTIONS – They focus the desired future.
on issues that affect the whole organization or large
segments of it, such as developing new products or
services, responding to environmental change,
OPEN-SPACE METHODS – The second approach
redesigning the organization, or introducing new
to large-group interventions attempts to address the
technology.
four dilemmas by imposing a minimal level of
formal structure.

OPEN-SYSTEMS METHODS – A variety of large- They generally follow these steps:

group approaches, such as search conferences,
1. SET THE CONDITIONS FOR SELF-
open-systems planning, decision accelerators, and
ORGANIZING – In the first step, the OD
real-time strategic change, have their basis in
practitioner or manager responsible for the
open-systems methods and are among the more
large-group intervention sets the stage by
structured largegroup processes.
announcing the theme of the session and
the norms that will govern it.
The first set of norms concerns the “Law of
These steps are described below: Two Feet.” It encourages people to take
1. MAP THE CURRENT ENVIRONMENT responsibility for their own behavior—to go
SURROUNDING THE ORGANIZATION – to meetings and discussions where they are
In this step, the different domains or parts of learning, contributing, or in some way
the environment are identified and remaining interested.
prioritized. The second set of norms is labeled the
2. ASSESS THE ORGANIZATION’S “Four Principles.” The first principle is
RESPONSES TO ENVIRONMENTAL “whoever comes is the right people.” It is
EXPECTATIONS – This step asks intended to free people to begin
participants to describe how the conversations with anyone at any time.
organization currently addresses the
environmental expectations identified in 2. CREATE THE AGENDA – The second step
step1. in open-space interventions is to develop a
3. IDENTIFY THE CORE MISSION OF THE road map for the remainder of the
ORGANIZATION –This step helps to conference.
identify the underlying purpose or core 3. COORDINATE ACTIVITY THROUGH
mission of the organization, as derived from INFORMATION – During an open-space
how it responds to external demands. session, there are two ways to coordinate
4. CREATE A REALISTIC FUTURE activities.
SCENARIO OF ENVIRONMENTAL
EXPECTATIONS AND ORGANIZATION
RESPONSES – This step asks members to
project the organization and its environment
into the near future, assuming no real
changes in the organization.
POSITIVE METHODS – The final large-group
intervention represents a hybrid approach to the
four dilemmas. It is distinguished from the other two
methods by its use of the positive approach to
change described in Chapter 2.
The four-steps in an AI summit are as follows:

1. Discover the organization’s positive core –

With respect to the purpose of the summit,
participants first pair up with another person
and conduct an appreciative interview.
2. Dream about and envision a more desired
and fulfilling future – In this step,
participants use the themes and success
factors from the first activity to develop
compelling images of the future.
3. Design the structural and systems
arrangements that will best reflect and
support the vision or dream – Members of
the summit identify the design features
(strategies, structures, systems, processes)
that will need to be in place to make the
vision a reality. This step allows participants
to articulate the dream in concrete terms.
4. Create the specific action plans that will
fulfill the organization’s destiny – The
primary task of destiny step is to identify the
projects, initiatives, and action plans
required to implement the design criteria.
CHAPTER 14: RESTRUCTURING human and physical resources are
ORGANIZATIONS likely to be scarce.

STRUCTURAL DESIGN – Organization structure THE PROCESS STRUCTURE – emphasize lateral

describes how the overall work of the organization rather than vertical relationships.
is divided into subunits and how these subunits are
coordinated for task completion. - The use of process-based structures is
growing rapidly in a variety of
Organizations traditionally have structured manufacturing and service companies.
themselves into one of three forms: functional
departments that are task specialized; self- Although there is no one right way to design
contained divisional units that are oriented to processbased structures, the following features
specific products, customers, or regions; or matrix characterize this new form of organizing:
structures that combine both functional  Processes drive structure – Process-based
specialization and selfcontainment. structures are organized around the three to
five key processes that define the work of
the organization.
THE FUNCTIONAL STRUCTURE – The most  Work adds value – To increase efficiency,
widely used organizational structure in the world process-based structures simplify and
today is the basic functional structure. enrich work processes.
The organization usually is divided into functional  Teams are fundamental – Teams are the
units, such as marketing, operations, research and key organizing feature in a process-based
development, human resources, and finance. structure.
 Customers define performance – The
primary goal of any team in a process-
based structure is customer satisfaction.
THE DIVISIONAL STRUCTURE – represents a
fundamentally different way of organizing. Also  Teams are rewarded for performance –
known as a product or self-contained-unit structure. Appraisal systems focus on measuring team
performance against customer satisfaction
THE MATRIX STRUCTURE – Some OD and other goals, and then provide real
practitioners have focused on maximizing the recognition for achievement.
strengths and minimizing the weaknesses of both  Teams are tightly linked to suppliers and
the functional and the divisional structures, and this customers – Through designated members,
effort has resulted in the matrix structure. teams have timely and direct relationships
with vendors and customers to understand
- it superimposes a lateral structure that
and respond to emerging concerns.
focuses on product or project
 Team members are well informed and
coordination on a vertical functional
trained – Successful implementation of a
structure.
process-based structure requires team
- matrix structures are appropriate under
members who can work with a broad range
three important conditions.
of information, including customer and
1. First, there must be real outside
market data, financial information, and
pressures for a dual focus. personnel and policy matters.
2. a matrix organization is appropriate
when the organization must process
a large amount of information.
3. there must be pressures for shared
resources. When customer demands
vary greatly and technological
requirements are strict, valuable
THE COSTUMER-CENTRIC STRUCTURE – Network structures typically have the following
Closely related to the process-based structure, the characteristics:
customer-centric structure focuses subunits on the
creation of solutions and the satisfaction of key  VERTICAL DISAGGREGATION – This
customers or customer groups. refers to the breaking up of the
organization’s business functions, such as
- Product-centric structures have core production, marketing, and distribution, into
structural features that include product separate organizations performing
groups and teams that are measured by specialized work.
product margins. The most central  BROKERS – Networks often are
process is, of course, new product managed by broker organizations or
development. “process orchestrators” that locate and
- Customer-centric organizations work assemble member organizations.
best in large organizations, where there  COORDINATING MECHANISMS –
are strong and powerful customer forces Network organizations generally are not
in the industry and where technology controlled by hierarchical arrangements or
and market changes are highly complex plans. Rather, coordination of the work in a
and uncertain. network falls into three categories:
INFORMAL RELATIONSHIPS,
CONTRACTS, AND MARKET
THE NETWORK STRUCTURE – manages the MECHANISMS.
diverse, complex, and dynamic relationships
among multiple organizations or units, each
specializing in a particular business function or DOWNSIZING – refers to interventions aimed at
task. reducing the size of the organization.
FOUR BASIC TYPES OF NETWORKS: - This typically is accomplished by
decreasing the number of employees
1. INTERNAL MARKET NETWORK – exists
through layoffs, attrition, redeployment,
when a single organization establishes each
or early retirement or by reducing the
subunit as an independent profit center that
number of organizational units or
is allowed to trade in services and
managerial levels through divestiture,
resources with each other as well as with
outsourcing, reorganization, or
the external market.
delayering.
2. VERTICAL MARKET NETWORK –
- Downsizing is generally a response to at
composed of multiple organizations linked
to a focal organization that coordinates the least four major conditions.
1. First, it is associated increasingly
movement of resources from raw materials
to end consumer. with mergers and acquisitions.
2. it can result from organization
3. INTERMARKET NETWORK – represents
alliances among a variety of organizations decline caused by loss of revenues
and market share and by
in different markets and is exemplified by
the Japanese keiretsu, the Korean chaebol, technological and industrial change.
3. downsizing can occur when
and the Mexican groups.
4. OPPORTUNITY NETWORK – is the most organizations implement one of the
new organizational structures
advanced form of network structure. It is a
temporary constellation of organizations described above.
4. downsizing can result from beliefs
brought together to pursue a single
purpose. and social pressures that smaller is
better.
APPLICATION STAGES
1. Clarify the Organization’s Strategy – As a
first step, organization leaders specify
 corporate and business strategy and considered essential for strategic
communicate clearly how downsizing success. They include activities that
relates to it. transform inputs into valued outputs.
2. Assess Downsizing Options and Make B. Define performance objectives –
Relevant Choices – Once the strategy is Challenging performance goals are set
clear, the full range of downsizing options in this step. The highest possible level of
can be identified and assessed. performance for any particular process
3. Implement the Changes – This stage is identified, and dramatic goals are set
involves implementing methods for reducing for speed, quality, cost, or other
the size of the organization. measures of performance.
4. Address the Needs of Survivors and Those C. Design new processes –This task
Who Leave – Most downsizing eventually involves designing new business
involves reduction in the size of the processes to achieve breakthrough
workforce, and it is important to support not goals.
only employees who remain with the 3. Restructure the Organization Around the
organization but also those who leave. New Business Processes. This last step in
5. Follow Through with Growth Plans – This reengineering involves changing the
final stage of downsizing involves organization’s structure to support the new
implementing an organization renewal and business processes.
growth process.

REENGINEERING – the fundamental rethinking

and radical redesign of business processes to
achieve dramatic improvements in performance.43
Reengineering transforms how organizations
traditionally produce and deliver goods and
services.

- Reengineering seeks to leverage

information technology when large-scale
business processes, such as supply
chain logistics, change radically.
- Reengineering also is associated with
downsizing, the shift from functional to
process-based structures, and work
design
APPLICATION STAGES – Early reengineering
efforts emphasized identifying which business
processes to reengineer and technically assessing
the work flow.
1. Prepare the Organization – Reengineering
begins with clarification and assessment of
the organization’s context, including its
competitive environment, strategy, and
objectives.
2. Fundamentally Rethink the Way Work Gets
Done – This step lies at the heart of
reengineering and involves these activities:
A. Identify and analyze core business
processes – Core processes are
CHAPTER 15: EMPLOYEE INVOLVEMENT HOW EMPLOYEE INVOLVEMENT AFFFECTS
PRODUCTIVITY
An assumption underlying much of the EI literature
EMPLOYEE INVOLVEMENT – is the current label
is that such interventions will lead to higher
used to describe a set of practices and
productivity.
philosophies that started with the quality-of-work-
life movement in the late 1950s. EI practices, such as participation in workplace
decisions, can improve productivity in at least three
- is a broad term that has been variously ways.
referred to as “empowerment,”
“participative management,” First, such interventions can improve
“engagement,” “work design,” “high communication and coordination among employees
involvement,” “industrial democracy,” and organizational departments, and help integrate
and “quality of work life.” the different jobs or departments that contribute to
an overall task.
Second, EI interventions can improve employee
A WORKING DEFINITION OF EMPLOYEE motivation, particularly when they satisfy important
INVOLVEMENT individual needs.
Employee involvement seeks to increase members’ Third, EI practices can improve the capabilities of
input into decisions that affect organization employees, thus enabling them to perform better.
performance and employee well-being. It can be
described in terms of four key elements that
promote worker involvement:
EMPLOYEE INVOLVEMENT APPLICATIONS –
1. POWER – This element of EI includes This section describes three major EI applications
providing people with enough authority to that vary in the amounts of power, information,
make work-related decisions covering knowledge and skills, and rewards that are moved
various issues such as work methods, task downward through the organization.
assignments, performance outcomes,
PARALLEL STRUCTURES – involve members in
customer service, and employee selection.
resolving ill-defined, complex problems and build
2. INFORMATION – Timely access to relevant
adaptability into bureaucratic organizations.
information is vital to making effective
decisions. Organizations can promote EI by - Also known as “collateral structures,”
ensuring that the necessary information “dualistic structures,” or “shadow
flows freely to those with decision authority. structures,” parallel structures operate in
3. KNOWLEDGE AND SKILLS – Employee conjunction with the formal organization.
involvement contributes to organizational
effectiveness only to the extent that
employees have the requisite skills and TOTAL QUALITY MANAGEMENT – is a more
knowledge to make good decisions. comprehensive approach to employee involvement.
4. REWARDS – Because people generally do
those things for which they are recognized, Application Stages TQM typically is implemented in
rewards can have a powerful effect on five major steps. With the exception of gaining
getting people involved in the organization. senior management commitment, most of the steps
can occur somewhat concomitantly.
Those four elements—power, information,
knowledge and skills, and rewards—contribute to 1. Gain Long-Term Senior Management
EI success by determining how much employee Commitment. This stage involves helping
participation in decision making is possible in senior executives understand the
organizations. importance of long-term commitment to
TQM.
2. Train Members in Quality Methods. TQM
implementation requires extensive training
 in the principles and tools of quality  Training employees for the necessary
improvement. knowledge and skills to participate
3. Start Quality Improvement Projects. In this effectively in decision making is a heavy
phase of TQM implementation, individuals commitment in HIOs.
and work groups apply the quality methods  Reward systems can contribute to EI when
to identify the few projects that hold promise information about them is open and the
for the largest improvements in rewards are based on acquiring new skills,
organizational processes. as well as on sharing gains from improved
4. Measure Progress. This stage of TQM performance.
implementation involves measuring  Personnel policies that are participatively
organizational processes against quality set and encourage stability of employment
standards. provide employees with a strong sense of
5. Rewarding Accomplishment. In this final commitment to the organization.
stage of TQM implementation, the  Physical layouts of organizations also can
organization links rewards to improvements enhance EI. Physical designs that support
in quality. TQM does not monitor and team structures and reduce status
reward outcomes that are normally tracked differences among employees can reinforce
by traditional reward systems, such as the the egalitarian climate needed for employee
number of units produced. participation.

HIGH-INVOLVEMENT ORGANIZATIONS –These

interventions create organizational conditions that
support high levels of employee participation.
FEATURES OF HIGH-INVOLVEMENT
ORGANIZATIONS – are designed with features
congruent with one another.
Following features:

 Flat, lean organization structures contribute

to involvement by pushing the scheduling,
planning, and controlling functions typically
performed by management and staff groups
toward the shop floor.
 Job designs that provide employees with
high levels of discretion, task variety, and
meaningful feedback can enhance
involvement.
 Open information systems that are tied to
jobs or work teams provide the necessary
information for employees to participate
meaningfully in decision making.
 Career systems that provide different tracks
for advancement and counseling to help
people choose appropriate paths can help
employees plan and prepare for long-term
development in the organization.
 Selection of employees for HIOs can be
improved through a realistic job preview
providing information about what it will be
like to work in such situations.