Eighth Edition

A N EXPERIENTIAL APPROACH TO ORGANIZATION DEVELOPMENT

Donald R. Brown
Antelope Valley College

Prentice Hall Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

CONTENTS
Preface xv

Part 1 Anticipating Change

Chapter 1 Organization Development and Reinventing the Organization 3

Change Is the Challenge for Organizations 3 What Is Organization Development? 4 The Characteristics of Organization Development 5 Why Organization Development? 6 The Emergence of OD 6 The Only Constant Is Change 6 The Evolution of Organization Development 8 NTL Laboratory-Training Methods 9 Survey Research and Feedback 9 The Extent of OD Applications 9 Who Does Organization Development? 9 The Organization Culture 10 The Socialization Process 11 Expectations of New Employees 12 Encountering the Organization's Culture 12 Adjusting to the Culture and Norms 12 v Receiving Feedback 13 Psychological Contracts 14 A Model for Organizational Development 14 Stage 1: Anticipate a Need for Change 15 Stage 2: Develop the Practitioner-Client Relationship 15 Stage 3: The Diagnostic Process 16 Stage 4: Action Plans, Strategies, and Techniques 16 Stage 5: Self-Renewal, Monitor, and Stabilize 16 Continuous Improvement 16
Summary 17 Review Questions 18 Key Words and Concepts 18 OD Skills Simulation 1.1 Auditioning for the . Saturday Night Live Guest Host Spot 19 OD Skills Simulation 1.2 The Psychological Contract 21 Case: TGIF 28 . Chapter 1 Endnotes 30

Chapter 2 Organization Renewal: The Challenge of Change 32

The Challenges of Change 32 Renewal 32 Constant Change 33 Organization Renewal: Adapting to Change 34 Approaches to Change 34 A Model of Adaptive Orientation 36 Sluggish-Thermostat Management (Stable Environment, Low Adaptation) 36 Satisficing Management (Stable Environment, High Adaptation) 37

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Reactive Management (Hyperturbulent Environment, Low Adaptation) 37 Renewing/Transformational Management (Hyperturbulent Environment, High Adaptation) 37 The Systems Approach: Finding New Ways to Work Together 38 The Organization as a System 38 Open Systems 39 The Sociotechnical System 40
THE GOALS AND VALUES SUBSYSTEM THE TECHNICAL SUBSYSTEM THE STRUCTURAL SUBSYSTEM 41 41 41 40

THE PSYCHOSOCIAL SUBSYSTEM (CULTURE) THE MANAGERIAL SUBSYSTEM 41

High-Performance Systems 41 The Contingency Approach: No One Best Way 41 Future Shock and Change 42 Organization Transformation and Organization Development 43 Individual Effectiveness 45 Team Effectiveness 45 Organization Effectiveness 45
Summary 46 Review Questions 46 Key Words and Concepts 46 OD Skills Simulation 2.1 OD Practitioner Behavior Profile I 47 Case: The NoGo Railroad 56 Chapter 2 Endnotes 60

Chapter 3 Changing the Culture 62

Creating a Climate for Change 62 Understanding Corporate Culture 62 What Is Corporate Culture? 63 The Corporate Culture and Success 65 The Impact of Key Factors 66 Cultural Resistance to Change 67 Tools for Change 67 Information 67 Support 67 Resources 68 Ethical, Value, and Goal Considerations 69 Ethical and Value Issues 70 OD Implementation Issues 70 Compatibility of Values 71 Imposed Change 71 Determining the Priority of the Goals 71
Summary 73 Review Questions 73 Key Words and Concepts 73 OD Skills Simulation 3.1 Downsizing: A ConsensusSeeking Activity 74 Case: The Dim Lighting Co. 81 Chapter 3 Endnotes 84

Part 2 Understanding the OD Process 85 Chapter 4 Role and Style of the OD Practitioner 87
Haphazard versus Planned Change 87 External and Internal Practitioners 88

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The External Practitioner 89 The Internal Practitioner 89 The External-Internal Practitioner Team 90 OD Practitioner Styles 90 The Stabilizer Style 90 The Cheerleader Style 91 The Analyzer Style 91 The Persuader Style 91 The Pathfinder Style 92 The Intervention Process 92 The Readiness of the Organization for OD 92 The Intervention 93 94 Who Is the Client? 94 The OD Practitioner's Role in the Intervention OD Practitioner Skills and Activities 95 Forming the Practitioner-Client Relationship 96 Initial Perceptions 97 Practitioner Style Model 99

Developing a Trust Relationship 99 Creating a Climate for Change 100 Practitioner-Client Relationship Modes 100 The Formalization of Operating Ground Rules 102 Warning Signs in the Practitioner-Client Relationship The Level of Commitment to Change 102

102 103

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

Summary 103 Review Questions 103 Key Words and Concepts 104 OD Skills Simulation 4.1 Practitioner Style Matrix 105 OD Skills Simulation 4.2 Conflict Styles 110 OD Skills Simulation 4.3 Perception 112 Case: The Grayson Chemical Company 113 Chapter 4 Endnotes 115

Chapter 5 The Diagnostic Process

Diagnosing Problem Areas What Is Diagnosis? 117 The Process 118

116
116

The Performance Gap 118 The Data-Collection Process 120 The Definition of Objectives 121 122 The Selection of Key Factors 121 The Selection of a Data-Gathering Method
SECONDARY SOURCES OF DATA 122 123 EMPLOYEE SURVEYS AND QUESTIONNAIRES OTHER TYPES OF INSTRUMENTS DIRECT OBSERVATION INTERVIEWS 125 124 123

The Implementation of Data Collection The Analysis of Data 126

126 126

Evaluating the Effectiveness of Data Collection

THE VALIDITY OF THE DATA 127

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THE TIME TO COLLECT DATA THE COST OF DATA COLLECTION 127 127 127 127

THE ORGANIZATIONAL CULTURE AND NORMS THE HAWTHORNE EFFECT IN DATA COLLECTING

Diagnostic Models 127 Differentiation-and-lntegration Model 127 The Sociotechnical-Systems Model 129 The Force-Field Analysis Model 129. Warning Signs in the Diagnosis Process 130 Confidentiality 130 Overdiagnosis 131 The Crisis Diagnosis 131 The Threatening and Overwhelming Diagnosis The Practitioner's Favorite Diagnosis 131 The Diagnosis of Symptoms 131

131

Summary 133 Review Questions 133 Key Words and Concepts 133 OD Skills Simulation 5.1 The Acquisition Decision 134 Case: The Old Family Bank 141 Chapter 5 Endnotes 143

Chapter 6 Overcoming Resistance to Change

^

144

Change and Reinvent 144 The Life Cycle of Resistance to Change 145 Phase 1: Change Introduced 145 Phase 2: Forces Identified 145 Phase 3: Direct Conflict 145 145 Phase 4: Residual Resistance 145 Phase 5: Change Established Leading Change 146 Advocates of Change 147 Degree of Change 147 Time Frame 147 148
-148

Impact on Culture

EVALUATION OF CHANGE

A Change Model 148 Driving Forces Toward Acceptance of a Change Program Dissatisfaction with the Present Situation 149 External Pressures Toward Change 150 Momentum Toward Change 151 Motivation by Management 151 Restraining Forces Blocking Implementation of Change Programs 151 Uncertainty Regarding Change: "The Comfort Zone" Fear of the Unknown 152 Disruption of Routine 152 Loss of Benefits: "What's in It for Me?" Threat to Security 152 Threat to Position Power 153 Redistribution of Power 153 152

149

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Disturb Existing Social Networks 153 Conformity to Norms and Culture 153 Driving Forces and Restraining Forces Act in Tandem 153 Strategies to Increase Motivation 153 Climate Conducive to Change 154 Clearly Articulated Vision 154 Effective Communications 154 Leadership of Managers 156 Participation of Members 156 Reward Systems 157 Negotiation, Agreement, and Politics 157 Power Strateg ies 158
Summary 159 Review Questions 159 Key Words and Concepts 159 OD Skills Simulation 6.1 Downsizing in the Enigma Company 160 OD Skills Simulation 6.2 Driving and Restraining Forces 164 OD Skills Simulation 6.3 Strategies for Change 166 Case: The Hexadecimal Company 167 Chapter 6 Endnotes 170

Part 3 Improving Excellence in Individuals

Chapter 7 OD Intervention Strategies 175

173

Organizational Change 175 Basic Strategies to Change 176 Structural Strategies 176 Technological Strategies 177 Behavioral Strategies 178 The Integration of Change Strategies 178 Stream Analysis 181 Selecting an OD Intervention 182 The Major OD Intervention Techniques: An Overview
Summary Company Endnotes 185 186 197 Review Questions 185 and Concepts 185

183
Keywords Chapter 7

OD Skills Simulation 7.1 The Franklin 194

Case: The Farm Bank

Chapter 8 Process Intervention Skills

A New Paradigm 198 Process Interventions 199 Group Process 200

198

Communications 200 Member Roles and Functions 200 Problem Solving and Decision Making Group Norms and Growth 202 Leadership and Authority 203 Types of Process Interventions 203 Clarifying and Summarizing 204 Synthesizing and Generalizing 204 Probing and Questioning 204

202

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

204

Summary 206 Review Questions 206 Key Words and Concepts 206 OD Skills Simulation 8.1 Apex Oil Spill 207 OD Skills Simulation 8.2 Trust Building 213 OD Skills Simulation 8.3 Process Interventions 217 Case: The OD Letters 219 Chapter 8 Endnotes 222

Chapter 9 Employee Empowerment and Interpersonal Interventions 223

Empowering the Individual 223 Employee Empowerment 223 Laboratory Learning 225 The Objectives of Laboratory Learning

"~

226

The Use of Laboratory Learning in OD Programs 226 Results of Laboratory Learning 226 Interpersonal Style: The Johari Window Model 226 The Public Area 227 The Blind Area 227 The Closed Area 227 The Unknown Area 228 Transactional Analysis 228 Structural Analysis 228 Transactional Theory 229 Psychological Positions and Scripts 231 Authentic Communication and Relationships 232 Career Life Planning Interventions 232 Steps in a Typical Career Life Planning Program 233 The Results of Career Life Planning 233 Stress Management and Burnout 233 , Major Sources of Stress 234 Job Burnout 235 Stress Management Interventions and Coping with Stress 236 Wellness Programs 236 Relaxation Techniques 237 Career Life Planning 237 Stress Management Training 237 Seminars on Job Burnout 237
Summary 238 Review Questions 238 Key Words and Concepts 239 OD Skills Simulation 9.1 SACOG 240 OD Skills Simulation 9.2 Johari Window 246 OD Skills Simulation 9.3 Career Life Planning 251 Case: The Sundale Club 253 Chapter 9 Endnotes 256

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Part 4 Developing High Performance in Teams Chapter 10 Team Development Interventions 261
Organizing Around Teams 261 The Team Approach 262 Interdependence 262 Team Building 262 Virtual Teams 263 The Need for Team Development 264 Categories of Team Interaction 265
SIMPLE SITUATIONS COMPLEX SITUATIONS PROBLEM SITUATIONS 265 266 266

259

Operating Problems of Work Teams 266

GOALS 267 267 MEMBER NEEDS NORMS 267 267

HOMOGENEOUS MEMBERS ' DECISION MAKING LEADERSHIP SIZE 267 267' 267

Cohesiveness and Groupthink 268 The Purpose of Team Development 269 The Team Development Process 271 Step 1: Initiating the Team Development Meeting 272 Step 2: Setting Objectives 272 Step 3: Collecting Data 272 Step 4: Planning the Meeting 272 Step 5: Conducting the Meeting 272 Step 6: Evaluating the Team Development Process 273 Results of Team Development Meetings 273 Outdoor Experiential Laboratory Training 273 The Outdoor Lab Process 275 Cautions When Using Outdoor Labs 276 Results of Outdoor Labs 276 Role Analysis and Role Negotiation 276
Summary 278 Review Questions 278 Key Words and Concepts 278 OD Skills Simulation 10.1 Organization Task and Process 279 OD Skills Simulation 10.2 Team Development 285 OD Skills Simulation 10.3 Role Analysis Team Development 288 Case: Steele Enterprises 289 Chapter 10 Endnotes 292

Chapter 11 Intergroup Development 294

Changing Relationships 294 Collaboration and Conflict 295 Intergroup Operating Problems 297 Suboptimization 298 Intergroup Competition 298 Perceived Power Imbalance between Groups 299 Role Conflict, Role Ambiguity 299

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Personality Conflict 299 Cooperation versus Competition Managing Conflict 300 Intergroup Techniques 301 Third-Party Consultation 302
ENSURING MUTUAL MOTIVATION

299

302 302

ACHIEVING A BALANCE IN SITUATIONAL POWER COORDINATING CONFRONTATION EFFORTS DEVELOPING OPENNESS IN COMMUNICATION 302

302 302

MAINTAINING AN APPROPRIATE LEVEL OF TENSION

Organization Mirror 303 Intergroup Team Building 303

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

Summary 304 Review Questions 305 Key Words and Concepts 305 OD Skills Simulation 11.1 The Disarmament Game 306 OD Skills Simulation 11.2 Intergroup Team Building 313 Case: The Exley Chemical Company 314 Chapter 11 Endnotes 317

Chapter 12 Goal Setting for Effective Organizations 319

Goal Setting Can Drive the Bottom Line 319 Goal-Setting Theory 319 More Difficult Goals Produce Better Performance 320 Specific Hard Goals Are Better than "Do Your Best" Goals 321 People May Abandon Goals If They Become Too Hard 321 Participation in Setting Goals Increases Commitment and Attainment of Goals 321 Feedback and Goals Improve Performance 321 Individual Differences Tend Not to Affect Goal Setting 322 Goal Setting in Teams Deserves Special Consideration 322 Managerial Support Is Critical 322 A Model for Goal Setting 323 . Results of Goal Setting 324 Management by Objectives 324 The Purposes of MBO Programs 324 The MBO Process 325 Criticisms of MBO 326 The Results of MBO 327
Summary 327 Review Questions 327 Key Words and Concepts 327 OD Skills Simulation 12.1 Organization Goal Setting 328 OD Skills Simulation 12.2 Managing by Objectives 335 Case: Valley Wide Utilities Company 337 Chapter 12 Endnotes 339

Chapter 13 Work Team Development

Job Design 342

341
341

Continuous Improvement Processes Job Characteristics Theory 342

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Job Enrichment Theory 344 Results of Job Design Programs 345 Total Quality Management (TQM) 345 The Characteristics of TQM 346 Quality 347 Malcolm Baldrige National Quality Award Compatibility of TQM and OD 348 Self-Managed Work Teams - 349 347

The Characteristics of Self-Managed Work Teams 350 The Design of Jobs 350 New Organizational Structures 351 Management and Leadership Behavior The Reward System 352 Role of Labor Unions 353 Warning Signs 353 , Results of Self-Managed Teams 353
Summary 354 Review Questions 354 Key Words and Concepts 354 OD Skills Simulation 13.1 Paper House Production 355 OD Skills Simulation 13.2 TQM in The University Setting 361 Case: Wengart Aircraft 364 Chapter 13 Endnotes 367

351

Part 5 Building Success in Organizations 371 Chapter 14 High-Performing Systems and the Learning Organization 373
System-Wide Interventions 373 Survey Research and Feedback 374 The Steps in Survey Feedback 374 The Results of Survey Research and Feedback 375 The Learning Organization 375 Learning Organizations Are Pragmatic Core Values and Behaviors 377 376

Characteristics of Learning Organizations 377 Reengineering: A Radical Redesign 379 System 4 Management 379 High-Performing Systems 381 HPS Criteria 381 HPS Characteristics 382 The Grid OD Program 382 Phase 1: Grid Seminars 384 Phase 2: Teamwork Development 384 385 385 Phase 3: Intergroup Development 384 Phase 4: Development of an Ideal Strategic Model Phase 5: Implementing the Ideal Strategic Model Phase 6: Systematic Critique 385

Summary 386 Review Questions 386 Key Words and Concepts 386 OD Skills Simulation 14.1 Brentwood Division 387 Case: Tucker Knox Corporation 392 Chapter 14 Endnotes 397

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Chapter 15 Organization Transformation and Strategic Change 398

Strategy and Transformation 398 Organization Transformation 399 Strategies of Change 400 Results of Organization Transformation 402 The Corporate Culture 403 The Strategy-Culture Fit 403 Core Characteristics 404 Sharing the Vision 404 Strong versus Weak Cultures 405 The Strategy-Culture Matrix 406
MANAGE THE CHANGE (MANAGEABLE RISK) REINFORCE THE CULTURE (NEGLIGIBLE RISK) 407 407 407

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

Strategic Change Management

408

Changing the Corporate Culture 409

Summary 410 Review Questions 410 Key Words and Concepts 410 OD Skills Simulation 15.1 The GenTech Company 411 Case: The Space Electronics Corporation 417 Chapter 15 Endnotes 419

Chapter 16 The Challenge and the Future for Organizations 420

The Organization of the Future 420 Monitor and Stabilize the OD Program 421 Feedback of Information 421 Stabilize and Monitor Change 422 Evaluate the OD Program 423 Terminate Practitioner and Client Relationship 423 Self Renewal 423 Emerging Issues and Values 424 OD: Fad or Discipline? 425 The Role of Values 426
THE PROFESSIONALISM OF OD 426 426 426 THE CERTIFICATION OF OD PRACTITIONERS

OVEREMPHASIS ON HUMAN AND SOCIAL INTERVENTION CONTROVERSY OVER W H A T ARE OD TECHNIQUES DEALING WITH POWER 426 426 426

LIMITATIONS OF TIME AND TERMINALITY

Conclusion for the Future 426 Future Trends in Organization Development 427 Macrosystem Trends 428 Interpersonal Trends 428 Individual Trends 428 x The Future of OD 429
Summary 430 Review Questions 431 Key Words and Concepts 431 OD Skills Simulation 16.1 OD Practitioner Behavior Profile II 432 OD Skills Simulation 16.2 The OD Practitioner 437 The Bob Knowlton Case 438 Chapter 16 Endnotes 444 Index 445