Fluent Essays

Which data gathering method is your preferred method and why? (Anderson, 2017). Which do you think is the most difficult to conduct and why? Organization Development 2 3 Organization Development The Process of Leading Organizational Change Fourth Edition Donald L. Anderson University of Denver 4 FOR INFORMATION: SAGE Publications, Inc. 2455 Teller Road Thousand Oaks, California 91320 E-mail: [email protected] SAGE Publications Ltd. 1 Oliver’s Yard 55 City Road London EC1Y 1SP United Kingdom SAGE Publications India Pvt. Ltd. B 1/I 1 Mohan Cooperative Industrial Area Mathura Road, New Delhi 110 044 India SAGE Publications Asia-Pacific Pte. Ltd. 3 Church Street #10-04 Samsung Hub Singapore 049483 Copyright © 2017 by SAGE Publications, Inc. All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the publisher. Printed in the United States of America Library of Congress Cataloging-in-Publication Data ISBN: 978-1-5063-1657-4 This book is printed on acid-free paper. Acquisitions Editor: Maggie Stanley Editorial Assistant: Neda Dallal eLearning Editor: Katie Ancheta Production Editor: Bennie Clark Allen Copy Editor: Diane Wainwright Typesetter: C&M Digitals (P) Ltd. Proofreader: Talia Greenberg 5 Indexer: Jeanne Busemeyer Cover Designer: Gail Buschman Marketing Manager: Ashlee Blunk 6 Brief Contents 1. Preface 2. Acknowledgments 3. 1. What Is Organization Development? 4. 2. History of Organization Development 5. 3. Core Values and Ethics of Organization Development 6. 4. Foundations of Organizational Change 7. 5. The Organization Development Practitioner and the OD Process 8. 6. Entry and Contracting 9. 7. Data Gathering 10. 8. Diagnosis and Feedback 11. 9. An Introduction to Interventions 12. 10. Individual Interventions 13. 11. Team Interventions 14. 12. Whole Organization and Multiple Organization Interventions (Part 1) 15. 13. Whole Organization and Multiple Organization Interventions (Part 2) 16. 14. Sustaining Change, Evaluating, and Ending an Engagement 17. 15. Global Issues in Organization Development 18. 16. The Future of Organization Development 19. References 20. Author Index 21. Subject Index 22. About the Author 7 Detailed Contents Preface Exercises and Activities Ancillaries Acknowledgments 1. What Is Organization Development? Organization Development Defined Making the Case for Organization Development What Organization Development Looks Like What Organization Development Is Not Who This Book Is For Overview of the Book Analyzing Case Studies Summary 2. History of Organization Development Laboratory Training and T-Groups Action Research, Survey Feedback, and Sociotechnical Systems Management Practices Quality and Employee Involvement Organizational Culture Change Management, Strategic Change, and Reengineering Organizational Learning Organizational Effectiveness and Employee Engagement Summary 3. Core Values and Ethics of Organization Development Defining Values Why Are Values Important to the OD Practitioner? Core Values of Organization Development Changes to OD Values Over Time and the Values Debate Challenges to Holding Organization Development Values Statement of Organization Development Ethics Summary Appendix Case Study 1: Analyzing Opportunities for Organization Development Work at Northern County Legal Services 4. Foundations of Organizational Change Levels and Characteristics of Organizational Change Models of Organizational Change: Systems Theory and Social Construction Approaches 8 Organizations as Systems Organizations as Socially Constructed Summary 5. The Organization Development Practitioner and the OD Process The Consulting Relationship and Types of Consulting The Organization Development Consulting Model OD Practitioners: Who Are They and Where Do They Work? The Organization Development Consulting Profession The OD Consulting Process and Action Research A Dialogic Approach to OD Summary 6. Entry and Contracting Entry Contracting Summary 7. Data Gathering The Importance of Data Gathering Presenting Problems and Underlying Problems Data Gathering Process Data Gathering Methods Creating a Data Gathering Strategy and Proposing an Approach Ethical Issues With Data Gathering Summary Case Study 2: Proposing a Data Gathering Strategy at TLG Solutions 8. Diagnosis and Feedback Diagnosis: Discovery, Assessment, Analysis, and Interpretation Finding Patterns by Analyzing Data Interpreting Data Selecting and Prioritizing Themes Feedback Resistance Ethical Issues With Diagnosis and Giving Feedback Summary Case Study 3: Sorting Through the Data From Logan Elementary School 9. An Introduction to Interventions Interventions Defined Why Interventions Fail Considerations in Selecting the Right Intervention Strategy Structuring and Planning Interventions for Success The Change Agent’s Role in the Intervention 9 Ethical Issues With Interventions Overview of Intervention Techniques Summary 10. Individual Interventions Individual Change and Reactions to Change Individual Instruments and Assessments Coaching Mentoring 360 Feedback Career Planning and Development Summary Case Study 4: Individual Type Styles at the Parks Department 11. Team Interventions Defining Teams What Makes a Successful Team? Special Types of Teams Team Development Team-Building Interventions Intergroup Interventions Summary Case Study 5: Solving Team Challenges at DocSystems Billing, Inc. 12. Whole Organization and Multiple Organization Interventions (Part 1) Characteristics of Contemporary Large-Scale Interventions Organizational Culture Assessment and Change Organization Design and Structure Directional Interventions Summary Case Study 6: Reorganizing Human Resources at ASP Software 13. Whole Organization and Multiple Organization Interventions (Part 2) Quality and Productivity Interventions Interventions in Mergers and Acquisitions Transorganization or Interorganization Development Dialogic OD Consultation and Interventions Summary Case Study 7: The Future of the Crossroads Center 14. Sustaining Change, Evaluating, and Ending an Engagement Sustaining Change After the Intervention Evaluation Ending an Engagement: Separation and Exit Summary 10 15. Global Issues in Organization Development OD’s Challenges in a Global Environment Dimensions of Global Cultural Difference OD Values, Interventions, and Culture Case Examples and Research Findings Advice for the Global OD Practitioner Summary Case Study 8: A Global Partnership at GFAC Consulting 16. The Future of Organization Development Increasing Complexity of Change Changing Workforce Demographics Changing Nature of Work The Current State of OD: Strengths, Weaknesses, and Opportunities Conclusion: The Future of OD Summary References Author Index Subject Index About the Author 11 12 Preface It seems that every few years, the field of organization development (OD) finds itself at a crossroads. Some feel that the field has strayed too far from its founding humanistic values of democracy, diversity, autonomy, collaboration, and choice. They argue that OD is in danger of being diluted or collapsed into human resources roles, leadership development, and talent management. Others feel that the “touchy feely” old values deserve a fresh update and that OD practitioners have a great deal to contribute to organizational efficiency, effectiveness, and enhanced performance. They see the role of the practitioner as a business adviser who can incorporate humanistic values without being hypocritical. I wrote (and continue to update) this book because I firmly believe that OD as a field of research and practice has much to offer to people in contemporary organizations who are struggling with an incredible amount of change. Old management styles no longer fit the needs of today’s workplace and workers. New organizational forms are emerging to cope with the increasing pace of change, globalization, digitization and the latest technologies, economic pressures, and the expectations of the contemporary workforce. Managers struggle to engage employees despite ever-present threats of downsizing and outsourcing. In such an environment, many employees find work to be less personally satisfying than they did before. Skilled OD practitioners understand the dynamics of human systems and can intervene to encourage a healthy, engaging, and productive environment. Unfortunately, it has been challenging for many students to develop these skills. It generally requires “breaking in” to an OD department, finding a (hopefully skilled) mentor, and learning as much as possible through academic courses or self-discovery. While they are regularly tested on the job, managers and executives have few opportunities to develop their skills as change agents as well. Project managers, IT professionals, educators, and health care administrators all report that the skills of OD are applicable to their jobs. My hope is that this book will provide theoretical and practical background in OD to give you an introduction to the basic processes of organization development and change. It will also give you a chance to practice in a safe environment where you can develop your skills. I hope you find the book to be readable but rigorous— practical and relevant but with a solid academic foundation—and comprehensive enough without being exhausting. For this fourth edition, I have updated many sections of the book to reflect recent research and advances in practice while retaining classic approaches and foundational theories with which most practitioners ought to be familiar. Highlights of this new edition include the following: A new case study after Chapter 7 that can be used as a multipart case (additional parts are located on the companion website) Additional examples of global issues in organization development Enhanced coverage of recent theory and practice in dialogic approaches to OD Discussion questions at the end of each chapter 13 Activities, exercises, and role plays following most chapters New readings at the end of each chapter, where appropriate My continued thanks to the students at the University of Denver as well as the clients who share with me their struggles in achieving change at work. As always, I am grateful to my family and friends, especially my wife, Jennifer, whose encouragement means everything. 14 Exercises and Activities Many chapters contain exercises, activities, and role plays that can be used to practice skills and apply concepts developed in several chapters of the book. This chart details which exercises and activities accompany which chapter and topic. 15 Ancillaries 16 Instructor Teaching Site A password-protected instructor’s manual is available at study.sagepub.com/andersonod4e to help instructors plan and teach their courses. These resources have been designed to help instructors make the classes as practical and interesting as possible for students. An Overview for the Instructor offers the author’s insights on how to most effectively use this book in a course on organization development and change. PowerPoint Slides capture key concepts and terms for each chapter for use in lectures and review. Case Epilogues provide additional information about the organizations or scenarios featured in the text. Discussion Questions suggest additional topics to engage students during classroom discussions and activities. Sample Course Syllabi provide models for structuring your course. A Test Bank includes multiple-choice, short-answer, and essay exam questions for each chapter. Video Resources for each chapter help launch class discussion. 17 Student Study Site An open-access student study site can be found at study.sagepub.com/andersonod4e. The site offers videos of the author discussing the major stages of organization development, Web links to additional tools, and Learning From SAGE Journal Articles, with access to recent, relevant, full-text articles from SAGE’s leading research journals. Each article supports and expands on the concepts presented in the book. This feature also provides discussion questions to focus and guide student interpretation. This text is accompanied by Cases and Exercises in Organization Development & Change, Second Edition (ISBN 978-1-5063-4447-8), which follows the same chapter organization as this text. A bundle of this text with the cases and exercises book is also available. 18 http://study.sagepub.com/andersonod4e Acknowledgments SAGE Publishing would like to thank the following reviewers for their contributions to the manuscript: Gerald D. Bouey, Lewis University Carol A. Gravel, Binnacle Organizational and Learning Development, LLC Michael A. Guerra, Lincoln University Georgia L. Hampton, Jefferson County Public Schools Melinda M. Howard, University of Oklahoma Allen I. Kraut, Baruch College, CUNY Helen Muyia, Texas A&M University, College Station Tom J. Sanders, University of Montevallo Jeffrey M. Zimmerman, Northern Kentucky University 19 Chapter 1 What Is Organization Development? Think for a moment about the organizations to which you belong. You probably have many to name, such as the company where you work, a school, perhaps a volunteer organization, or a reading group. You are undoubtedly influenced by many other organizations in your life, such as a health care organization like a doctor’s office or hospital, a church group, a child’s school, a bank, or the local city council or state government. Using an expansive definition of organization, you could name your own family or a group of friends as an organization that you belong to as well. With just a few moments’ reflection, you are likely to be able to name dozens of organizations that you belong to or that influence you. Now consider an organization that you currently do not belong to, but one that you were dissatisfied with at some point in the past. What was it about that organization that made the experience dissatisfying? Perhaps you left a job because you did not have the opportunity to contribute that you would have liked. Maybe it was a dissatisfying team atmosphere, or you were not appreciated or recognized for the time and energy that you dedicated to the job. It could have been a change to your responsibilities, the team, or the organization’s processes. Some people report that they did not feel a larger sense of purpose at work, they did not have control or autonomy over their work, or they did not find an acceptable path to growth and career development. Perhaps you’ve witnessed or been part of an organization that has failed for some reason. Perhaps it went out of business or it disbanded because it could no longer reach its goals. You’ve likely had some excellent experiences in organizations, too. You may have had a job that was especially fulfilling or where you learned a great deal and coworkers became good friends. Maybe your local volunteer organization helped a number of people through organized fundraisers or other social services activities. Perhaps you joined or started a local community group to successfully campaign against the decision of your local city council or school board. All of this is to demonstrate what you already know intuitively, that we spend a great deal of our lives working in, connected to, and affected by organizations. Some of these organizations function quite well, whereas others struggle. Some are quite rewarding environments in which to work or participate, but in others, organizational members are frustrated, neglected, and disengaged. The purpose of this book is to introduce you to the field of organization development, an area of academic study and professional practice focused on making organizations better—that is, more effective and productive and at the same time more rewarding, satisfying, and engaging places in which to work and participate. By learning about the field of organization development and the process by which it is conducted, you will be a more effective change agent inside the organizations to which you belong. 20 Organization Development Defined Organization development (OD) is an interdisciplinary field with contributions from business, industrial/organizational psychology, human resources management, communication, sociology, and many other disciplines. Not surprisingly, for a field with such diverse intellectual roots, there are many definitions of organization development. Definitions can be illuminating, as they point us in a direction and provide a shared context for mutual discussion, but they can also be constraining, as certain concepts are inevitably left out, with boundaries drawn to exclude some activities. What counts as OD thus depends on the practitioner and the definition, and these definitions have changed over time. In a study of 27 definitions of organization development published since 1969, Egan (2002) found that there were as many as 60 different variables listed in those definitions. Nonetheless, there are some points on which definitions converge. One of the most frequently cited definitions of OD comes from Richard Beckhard (1969), an early leader in the field of OD: Organization development is an effort (1) planned, (2) organizationwide, and (3) managed from the top, to (4) increase organization effectiveness and health through (5) planned interventions in the organization’s “processes,” using behavioral-science knowledge. (p. 9) Beckhard’s definition has many points that have survived the test of time, including his emphasis on organizational effectiveness, the use of behavioral science knowledge, and the inclusion of planned interventions in the organization’s functions. Some critique this definition, however, for its emphasis on planned change (many organizational changes, and thus OD efforts, are in response to environmental threats that are not so neatly planned) and its emphasis on 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. A more recent definition comes from Burke and Bradford (2005): Based on (1) a set of values, largely humanistic; (2) application of the behavioral sciences; and (3) open systems theory, organization development is a systemwide process of planned change aimed toward improving overall organization effectiveness by way of enhanced congruence of such key organizational dimensions as external environment, mission, strategy, leadership, culture, structure, information and reward systems, and work policies and procedures. (p. 12) Finally, I offer a third: 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 21 science knowledge. These definitions include a number of consistent themes about what constitutes organization development. They propose that an outcome of OD activities is organizational effectiveness. They also each stress the applicability of knowledge gained through the social and behavioral sciences (such as sociology, business and management, psychology, and more) to organizational settings. 22 Making the Case for Organization Development Perhaps the point on which most definitions agree is that the backdrop and purpose of organization development is change. As you have no doubt personally experienced, large-scale organizational change is rarely simple and met without skepticism. As Peter Senge and colleagues (1999) write, “Most of us know firsthand that change programs fail. We’ve seen enough ‘flavor of the month’ programs ‘rolled out’ from top management to last a lifetime” (p. 6). 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. Significant changes today are facing organizations and their teams and individual employees. To become effective, productive, and satisfying to members, organizations need to change. It will come as no surprise to any observer of today’s organizations that change is a significant part of organizational life. Change is required at the organizational level as customers demand more, technologies are developed with a rapidly changing life cycle (especially high-tech products; Wilhelm, Damodaran, & Li, 2003), and investors demand results. As Rita McGrath (2013) writes, “Music, high technology, travel, communication, consumer electronics, the automobile business, and even education are facing situations in which advantages are copied quickly, technology changes, or customers seek other alternatives and things move on” (p. 7). This requires that organizations develop new strategies, economic structures, technologies, organizational structures, and processes. Change is required of team members, who now are likely to work virtually in collaboration with members from around the globe. 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 also 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. Best-selling business books such as Who Moved My Cheese? teach lessons in ensuring that one’s skills are current and that being comfortable and reluctant to adapt is a fatal flaw. 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 (Holbeche, 2015). For organizational members, change can be enlightening and exciting, and it can be hurtful, stressful, and frustrating. Whether or not we agree with the values behind “change as a constant,” it is likely to continue for the foreseeable future. Whereas some decry an overabundance of change in organizations (Zorn, Christensen, & Cheney, 1999), 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 (Lawler & Worley, 2006). 23 There are, however, more and less 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. 24 What Organization Development Looks Like It may be easiest to understand what organization development is by understanding what forms it takes and how it is practiced. The following are five examples of published case studies of OD in action. 25 Example 1: Increasing Employee Participation in a Public Sector Organization Public sector organizations, it has been noted (Coram & Burns, 2001), often face additional special challenges in the management of change. Bureaucratic structures, interfaces with regional governments and legislatures, political pressures, and legislative policies all complicate the implementation of new processes and changes to organizational practices. 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 (O’Brien, 2002). Many programs of this type have been launched in other organizations as top-down mandates from senior management, causing frustration and decreased commitment among staff members who resisted the mandated changes. One department wanted to do things differently. The offices were in the division of Social Welfare Services, a community welfare organization of 4,000 employees. Two Dublin offices (50 employees each) became the focus of this case. 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. Many employees felt underappreciated, distrusted, and not included in key decisions or changes. Relationships with management were also a concern as employees indicated few opportunities for communication with management and that jobs had become routine and dull. The steering team invited volunteers (employees and their management) to work on several of the central problems. One team worked on the problem of communication and proposed many changes that were later implemented, including a redesign of the office layout to improve circulation and contact among employees. As the teams continued discussions, they began to question standard practices and inefficiencies and to suggest improvements, eventually devising a list of almost 30 actions that they could take. Managers listened to employee suggestions, impressed by their insights. 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” (O’Brien, 2002, p. 450). The joint management–employee working teams had begun to increase collaboration and interaction among the two groups, with each reaching new insights about the other. As a result of the increased participation, “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” (O’Brien, 2002, p. 451). 26 27 Example 2: Senior Management Coaching at Vodaphone Vodaphone is a multibillion-dollar global communications technology company headquartered in the United Kingdom and was an early leader in the mobile telephone market (Eaton & Brown, 2002). Faced with increasing competition, the company realized that in order to remain innovative and a leader in a challenging market, the culture of the organization would need to adapt accordingly. Specifically, senior management realized that its current “command and control” culture of blame and political games would hinder the collaboration and mutual accountability needed to succeed in a competitive environment. Instead, the company wanted to encourage a culture of empowered teams that made their own decisions and shared learning and development, speed, and accountability. Several culture initiatives were implemented, including the development of shared values, the introduction of IT systems that shared and exchanged information across major divisions that had hindered cross-functional learning, and the establishment of teams and a team-building program. To support the initiatives and encourage a new, collaborative management style, Vodaphone implemented a leadership coaching program. Top managers attended the program to learn skills in conducting performance reviews, helping employees set goals, and coaching teams. Following the program, managers had one-on-one coaching sessions with a professional coach who worked with participants to help them set coaching goals and reflect on how successfully they were able to implement the skills learned in the program. As a result of the program, managers began to delegate more as teams started to solve problems themselves. Teams began to feel more confident in their decisions as managers trusted them. Eaton and Brown (2002) attribute several subsequent company successes to the program, noting that it was critical that the coaching program was integrated with the other culture change initiatives that it supported. “Cultural change takes time,” they note, and “traditional attitudes to management do not die away overnight” (p. 287). However, they point out that a gradual evolution took place and the new cultural values are now the standard. 28 Example 3: Team Development in a Cancer Center Health care workers who have the challenge of caring for critically ill patients experience stress, emotional exhaustion, and burnout at very high rates compared with workers in other fields. Without social support from friends or other coworkers, many workers seek to leave the field or to reduce hours to cope with … Organization Development 2 3 Organization Development The Process of Leading Organizational Change Fourth Edition Donald L. Anderson University of Denver 4 FOR INFORMATION: SAGE Publications, Inc. 2455 Teller Road Thousand Oaks, California 91320 E-mail: [email protected] SAGE Publications Ltd. 1 Oliver’s Yard 55 City Road London EC1Y 1SP United Kingdom SAGE Publications India Pvt. Ltd. B 1/I 1 Mohan Cooperative Industrial Area Mathura Road, New Delhi 110 044 India SAGE Publications Asia-Pacific Pte. Ltd. 3 Church Street #10-04 Samsung Hub Singapore 049483 Copyright © 2017 by SAGE Publications, Inc. All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the publisher. Printed in the United States of America Library of Congress Cataloging-in-Publication Data ISBN: 978-1-5063-1657-4 This book is printed on acid-free paper. Acquisitions Editor: Maggie Stanley Editorial Assistant: Neda Dallal eLearning Editor: Katie Ancheta Production Editor: Bennie Clark Allen Copy Editor: Diane Wainwright Typesetter: C&M Digitals (P) Ltd. Proofreader: Talia Greenberg 5 Indexer: Jeanne Busemeyer Cover Designer: Gail Buschman Marketing Manager: Ashlee Blunk 6 Brief Contents 1. Preface 2. Acknowledgments 3. 1. What Is Organization Development? 4. 2. History of Organization Development 5. 3. Core Values and Ethics of Organization Development 6. 4. Foundations of Organizational Change 7. 5. The Organization Development Practitioner and the OD Process 8. 6. Entry and Contracting 9. 7. Data Gathering 10. 8. Diagnosis and Feedback 11. 9. An Introduction to Interventions 12. 10. Individual Interventions 13. 11. Team Interventions 14. 12. Whole Organization and Multiple Organization Interventions (Part 1) 15. 13. Whole Organization and Multiple Organization Interventions (Part 2) 16. 14. Sustaining Change, Evaluating, and Ending an Engagement 17. 15. Global Issues in Organization Development 18. 16. The Future of Organization Development 19. References 20. Author Index 21. Subject Index 22. About the Author 7 Detailed Contents Preface Exercises and Activities Ancillaries Acknowledgments 1. What Is Organization Development? Organization Development Defined Making the Case for Organization Development What Organization Development Looks Like What Organization Development Is Not Who This Book Is For Overview of the Book Analyzing Case Studies Summary 2. History of Organization Development Laboratory Training and T-Groups Action Research, Survey Feedback, and Sociotechnical Systems Management Practices Quality and Employee Involvement Organizational Culture Change Management, Strategic Change, and Reengineering Organizational Learning Organizational Effectiveness and Employee Engagement Summary 3. Core Values and Ethics of Organization Development Defining Values Why Are Values Important to the OD Practitioner? Core Values of Organization Development Changes to OD Values Over Time and the Values Debate Challenges to Holding Organization Development Values Statement of Organization Development Ethics Summary Appendix Case Study 1: Analyzing Opportunities for Organization Development Work at Northern County Legal Services 4. Foundations of Organizational Change Levels and Characteristics of Organizational Change Models of Organizational Change: Systems Theory and Social Construction Approaches 8 Organizations as Systems Organizations as Socially Constructed Summary 5. The Organization Development Practitioner and the OD Process The Consulting Relationship and Types of Consulting The Organization Development Consulting Model OD Practitioners: Who Are They and Where Do They Work? The Organization Development Consulting Profession The OD Consulting Process and Action Research A Dialogic Approach to OD Summary 6. Entry and Contracting Entry Contracting Summary 7. Data Gathering The Importance of Data Gathering Presenting Problems and Underlying Problems Data Gathering Process Data Gathering Methods Creating a Data Gathering Strategy and Proposing an Approach Ethical Issues With Data Gathering Summary Case Study 2: Proposing a Data Gathering Strategy at TLG Solutions 8. Diagnosis and Feedback Diagnosis: Discovery, Assessment, Analysis, and Interpretation Finding Patterns by Analyzing Data Interpreting Data Selecting and Prioritizing Themes Feedback Resistance Ethical Issues With Diagnosis and Giving Feedback Summary Case Study 3: Sorting Through the Data From Logan Elementary School 9. An Introduction to Interventions Interventions Defined Why Interventions Fail Considerations in Selecting the Right Intervention Strategy Structuring and Planning Interventions for Success The Change Agent’s Role in the Intervention 9 Ethical Issues With Interventions Overview of Intervention Techniques Summary 10. Individual Interventions Individual Change and Reactions to Change Individual Instruments and Assessments Coaching Mentoring 360 Feedback Career Planning and Development Summary Case Study 4: Individual Type Styles at the Parks Department 11. Team Interventions Defining Teams What Makes a Successful Team? Special Types of Teams Team Development Team-Building Interventions Intergroup Interventions Summary Case Study 5: Solving Team Challenges at DocSystems Billing, Inc. 12. Whole Organization and Multiple Organization Interventions (Part 1) Characteristics of Contemporary Large-Scale Interventions Organizational Culture Assessment and Change Organization Design and Structure Directional Interventions Summary Case Study 6: Reorganizing Human Resources at ASP Software 13. Whole Organization and Multiple Organization Interventions (Part 2) Quality and Productivity Interventions Interventions in Mergers and Acquisitions Transorganization or Interorganization Development Dialogic OD Consultation and Interventions Summary Case Study 7: The Future of the Crossroads Center 14. Sustaining Change, Evaluating, and Ending an Engagement Sustaining Change After the Intervention Evaluation Ending an Engagement: Separation and Exit Summary 10 15. Global Issues in Organization Development OD’s Challenges in a Global Environment Dimensions of Global Cultural Difference OD Values, Interventions, and Culture Case Examples and Research Findings Advice for the Global OD Practitioner Summary Case Study 8: A Global Partnership at GFAC Consulting 16. The Future of Organization Development Increasing Complexity of Change Changing Workforce Demographics Changing Nature of Work The Current State of OD: Strengths, Weaknesses, and Opportunities Conclusion: The Future of OD Summary References Author Index Subject Index About the Author 11 12 Preface It seems that every few years, the field of organization development (OD) finds itself at a crossroads. Some feel that the field has strayed too far from its founding humanistic values of democracy, diversity, autonomy, collaboration, and choice. They argue that OD is in danger of being diluted or collapsed into human resources roles, leadership development, and talent management. Others feel that the “touchy feely” old values deserve a fresh update and that OD practitioners have a great deal to contribute to organizational efficiency, effectiveness, and enhanced performance. They see the role of the practitioner as a business adviser who can incorporate humanistic values without being hypocritical. I wrote (and continue to update) this book because I firmly believe that OD as a field of research and practice has much to offer to people in contemporary organizations who are struggling with an incredible amount of change. Old management styles no longer fit the needs of today’s workplace and workers. New organizational forms are emerging to cope with the increasing pace of change, globalization, digitization and the latest technologies, economic pressures, and the expectations of the contemporary workforce. Managers struggle to engage employees despite ever-present threats of downsizing and outsourcing. In such an environment, many employees find work to be less personally satisfying than they did before. Skilled OD practitioners understand the dynamics of human systems and can intervene to encourage a healthy, engaging, and productive environment. Unfortunately, it has been challenging for many students to develop these skills. It generally requires “breaking in” to an OD department, finding a (hopefully skilled) mentor, and learning as much as possible through academic courses or self-discovery. While they are regularly tested on the job, managers and executives have few opportunities to develop their skills as change agents as well. Project managers, IT professionals, educators, and health care administrators all report that the skills of OD are applicable to their jobs. My hope is that this book will provide theoretical and practical background in OD to give you an introduction to the basic processes of organization development and change. It will also give you a chance to practice in a safe environment where you can develop your skills. I hope you find the book to be readable but rigorous— practical and relevant but with a solid academic foundation—and comprehensive enough without being exhausting. For this fourth edition, I have updated many sections of the book to reflect recent research and advances in practice while retaining classic approaches and foundational theories with which most practitioners ought to be familiar. Highlights of this new edition include the following: A new case study after Chapter 7 that can be used as a multipart case (additional parts are located on the companion website) Additional examples of global issues in organization development Enhanced coverage of recent theory and practice in dialogic approaches to OD Discussion questions at the end of each chapter 13 Activities, exercises, and role plays following most chapters New readings at the end of each chapter, where appropriate My continued thanks to the students at the University of Denver as well as the clients who share with me their struggles in achieving change at work. As always, I am grateful to my family and friends, especially my wife, Jennifer, whose encouragement means everything. 14 Exercises and Activities Many chapters contain exercises, activities, and role plays that can be used to practice skills and apply concepts developed in several chapters of the book. This chart details which exercises and activities accompany which chapter and topic. 15 Ancillaries 16 Instructor Teaching Site A password-protected instructor’s manual is available at study.sagepub.com/andersonod4e to help instructors plan and teach their courses. These resources have been designed to help instructors make the classes as practical and interesting as possible for students. An Overview for the Instructor offers the author’s insights on how to most effectively use this book in a course on organization development and change. PowerPoint Slides capture key concepts and terms for each chapter for use in lectures and review. Case Epilogues provide additional information about the organizations or scenarios featured in the text. Discussion Questions suggest additional topics to engage students during classroom discussions and activities. Sample Course Syllabi provide models for structuring your course. A Test Bank includes multiple-choice, short-answer, and essay exam questions for each chapter. Video Resources for each chapter help launch class discussion. 17 Student Study Site An open-access student study site can be found at study.sagepub.com/andersonod4e. The site offers videos of the author discussing the major stages of organization development, Web links to additional tools, and Learning From SAGE Journal Articles, with access to recent, relevant, full-text articles from SAGE’s leading research journals. Each article supports and expands on the concepts presented in the book. This feature also provides discussion questions to focus and guide student interpretation. This text is accompanied by Cases and Exercises in Organization Development & Change, Second Edition (ISBN 978-1-5063-4447-8), which follows the same chapter organization as this text. A bundle of this text with the cases and exercises book is also available. 18 http://study.sagepub.com/andersonod4e Acknowledgments SAGE Publishing would like to thank the following reviewers for their contributions to the manuscript: Gerald D. Bouey, Lewis University Carol A. Gravel, Binnacle Organizational and Learning Development, LLC Michael A. Guerra, Lincoln University Georgia L. Hampton, Jefferson County Public Schools Melinda M. Howard, University of Oklahoma Allen I. Kraut, Baruch College, CUNY Helen Muyia, Texas A&M University, College Station Tom J. Sanders, University of Montevallo Jeffrey M. Zimmerman, Northern Kentucky University 19 Chapter 1 What Is Organization Development? Think for a moment about the organizations to which you belong. You probably have many to name, such as the company where you work, a school, perhaps a volunteer organization, or a reading group. You are undoubtedly influenced by many other organizations in your life, such as a health care organization like a doctor’s office or hospital, a church group, a child’s school, a bank, or the local city council or state government. Using an expansive definition of organization, you could name your own family or a group of friends as an organization that you belong to as well. With just a few moments’ reflection, you are likely to be able to name dozens of organizations that you belong to or that influence you. Now consider an organization that you currently do not belong to, but one that you were dissatisfied with at some point in the past. What was it about that organization that made the experience dissatisfying? Perhaps you left a job because you did not have the opportunity to contribute that you would have liked. Maybe it was a dissatisfying team atmosphere, or you were not appreciated or recognized for the time and energy that you dedicated to the job. It could have been a change to your responsibilities, the team, or the organization’s processes. Some people report that they did not feel a larger sense of purpose at work, they did not have control or autonomy over their work, or they did not find an acceptable path to growth and career development. Perhaps you’ve witnessed or been part of an organization that has failed for some reason. Perhaps it went out of business or it disbanded because it could no longer reach its goals. You’ve likely had some excellent experiences in organizations, too. You may have had a job that was especially fulfilling or where you learned a great deal and coworkers became good friends. Maybe your local volunteer organization helped a number of people through organized fundraisers or other social services activities. Perhaps you joined or started a local community group to successfully campaign against the decision of your local city council or school board. All of this is to demonstrate what you already know intuitively, that we spend a great deal of our lives working in, connected to, and affected by organizations. Some of these organizations function quite well, whereas others struggle. Some are quite rewarding environments in which to work or participate, but in others, organizational members are frustrated, neglected, and disengaged. The purpose of this book is to introduce you to the field of organization development, an area of academic study and professional practice focused on making organizations better—that is, more effective and productive and at the same time more rewarding, satisfying, and engaging places in which to work and participate. By learning about the field of organization development and the process by which it is conducted, you will be a more effective change agent inside the organizations to which you belong. 20 Organization Development Defined Organization development (OD) is an interdisciplinary field with contributions from business, industrial/organizational psychology, human resources management, communication, sociology, and many other disciplines. Not surprisingly, for a field with such diverse intellectual roots, there are many definitions of organization development. Definitions can be illuminating, as they point us in a direction and provide a shared context for mutual discussion, but they can also be constraining, as certain concepts are inevitably left out, with boundaries drawn to exclude some activities. What counts as OD thus depends on the practitioner and the definition, and these definitions have changed over time. In a study of 27 definitions of organization development published since 1969, Egan (2002) found that there were as many as 60 different variables listed in those definitions. Nonetheless, there are some points on which definitions converge. One of the most frequently cited definitions of OD comes from Richard Beckhard (1969), an early leader in the field of OD: Organization development is an effort (1) planned, (2) organizationwide, and (3) managed from the top, to (4) increase organization effectiveness and health through (5) planned interventions in the organization’s “processes,” using behavioral-science knowledge. (p. 9) Beckhard’s definition has many points that have survived the test of time, including his emphasis on organizational effectiveness, the use of behavioral science knowledge, and the inclusion of planned interventions in the organization’s functions. Some critique this definition, however, for its emphasis on planned change (many organizational changes, and thus OD efforts, are in response to environmental threats that are not so neatly planned) and its emphasis on 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. A more recent definition comes from Burke and Bradford (2005): Based on (1) a set of values, largely humanistic; (2) application of the behavioral sciences; and (3) open systems theory, organization development is a systemwide process of planned change aimed toward improving overall organization effectiveness by way of enhanced congruence of such key organizational dimensions as external environment, mission, strategy, leadership, culture, structure, information and reward systems, and work policies and procedures. (p. 12) Finally, I offer a third: 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 21 science knowledge. These definitions include a number of consistent themes about what constitutes organization development. They propose that an outcome of OD activities is organizational effectiveness. They also each stress the applicability of knowledge gained through the social and behavioral sciences (such as sociology, business and management, psychology, and more) to organizational settings. 22 Making the Case for Organization Development Perhaps the point on which most definitions agree is that the backdrop and purpose of organization development is change. As you have no doubt personally experienced, large-scale organizational change is rarely simple and met without skepticism. As Peter Senge and colleagues (1999) write, “Most of us know firsthand that change programs fail. We’ve seen enough ‘flavor of the month’ programs ‘rolled out’ from top management to last a lifetime” (p. 6). 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. Significant changes today are facing organizations and their teams and individual employees. To become effective, productive, and satisfying to members, organizations need to change. It will come as no surprise to any observer of today’s organizations that change is a significant part of organizational life. Change is required at the organizational level as customers demand more, technologies are developed with a rapidly changing life cycle (especially high-tech products; Wilhelm, Damodaran, & Li, 2003), and investors demand results. As Rita McGrath (2013) writes, “Music, high technology, travel, communication, consumer electronics, the automobile business, and even education are facing situations in which advantages are copied quickly, technology changes, or customers seek other alternatives and things move on” (p. 7). This requires that organizations develop new strategies, economic structures, technologies, organizational structures, and processes. Change is required of team members, who now are likely to work virtually in collaboration with members from around the globe. 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 also 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. Best-selling business books such as Who Moved My Cheese? teach lessons in ensuring that one’s skills are current and that being comfortable and reluctant to adapt is a fatal flaw. 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 (Holbeche, 2015). For organizational members, change can be enlightening and exciting, and it can be hurtful, stressful, and frustrating. Whether or not we agree with the values behind “change as a constant,” it is likely to continue for the foreseeable future. Whereas some decry an overabundance of change in organizations (Zorn, Christensen, & Cheney, 1999), 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 (Lawler & Worley, 2006). 23 There are, however, more and less 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. 24 What Organization Development Looks Like It may be easiest to understand what organization development is by understanding what forms it takes and how it is practiced. The following are five examples of published case studies of OD in action. 25 Example 1: Increasing Employee Participation in a Public Sector Organization Public sector organizations, it has been noted (Coram & Burns, 2001), often face additional special challenges in the management of change. Bureaucratic structures, interfaces with regional governments and legislatures, political pressures, and legislative policies all complicate the implementation of new processes and changes to organizational practices. 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 (O’Brien, 2002). Many programs of this type have been launched in other organizations as top-down mandates from senior management, causing frustration and decreased commitment among staff members who resisted the mandated changes. One department wanted to do things differently. The offices were in the division of Social Welfare Services, a community welfare organization of 4,000 employees. Two Dublin offices (50 employees each) became the focus of this case. 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. Many employees felt underappreciated, distrusted, and not included in key decisions or changes. Relationships with management were also a concern as employees indicated few opportunities for communication with management and that jobs had become routine and dull. The steering team invited volunteers (employees and their management) to work on several of the central problems. One team worked on the problem of communication and proposed many changes that were later implemented, including a redesign of the office layout to improve circulation and contact among employees. As the teams continued discussions, they began to question standard practices and inefficiencies and to suggest improvements, eventually devising a list of almost 30 actions that they could take. Managers listened to employee suggestions, impressed by their insights. 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” (O’Brien, 2002, p. 450). The joint management–employee working teams had begun to increase collaboration and interaction among the two groups, with each reaching new insights about the other. As a result of the increased participation, “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” (O’Brien, 2002, p. 451). 26 27 Example 2: Senior Management Coaching at Vodaphone Vodaphone is a multibillion-dollar global communications technology company headquartered in the United Kingdom and was an early leader in the mobile telephone market (Eaton & Brown, 2002). Faced with increasing competition, the company realized that in order to remain innovative and a leader in a challenging market, the culture of the organization would need to adapt accordingly. Specifically, senior management realized that its current “command and control” culture of blame and political games would hinder the collaboration and mutual accountability needed to succeed in a competitive environment. Instead, the company wanted to encourage a culture of empowered teams that made their own decisions and shared learning and development, speed, and accountability. Several culture initiatives were implemented, including the development of shared values, the introduction of IT systems that shared and exchanged information across major divisions that had hindered cross-functional learning, and the establishment of teams and a team-building program. To support the initiatives and encourage a new, collaborative management style, Vodaphone implemented a leadership coaching program. Top managers attended the program to learn skills in conducting performance reviews, helping employees set goals, and coaching teams. Following the program, managers had one-on-one coaching sessions with a professional coach who worked with participants to help them set coaching goals and reflect on how successfully they were able to implement the skills learned in the program. As a result of the program, managers began to delegate more as teams started to solve problems themselves. Teams began to feel more confident in their decisions as managers trusted them. Eaton and Brown (2002) attribute several subsequent company successes to the program, noting that it was critical that the coaching program was integrated with the other culture change initiatives that it supported. “Cultural change takes time,” they note, and “traditional attitudes to management do not die away overnight” (p. 287). However, they point out that a gradual evolution took place and the new cultural values are now the standard. 28 Example 3: Team Development in a Cancer Center Health care workers who have the challenge of caring for critically ill patients experience stress, emotional exhaustion, and burnout at very high rates compared with workers in other fields. Without social support from friends or other coworkers, many workers seek to leave the field or to reduce hours to cope with …