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L.DINESH MBAChapter 8Slide 1

Chapter 8Chapter 8

OD InterventionStrategies


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Learning Objectives

Identify and understand range of major OD

intervention techniques and how they can be

applied.

Identify ways interpersonal, team, and

intergroup techniques fit into OD program. Understand the change strategies.


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Leading Change at P&G(part 1 of 3)

P&G CEO Lafley makes changes that began

with previous CEO in the 1990s.

Significant changes made on structural lines.

Previous CEO, Jager, made changes using

combative style.


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Corporate headquarters undergoing change.

Executives have open offices.Division presidents offices located with their

teams.

Changes made without alienating employees.


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Why did one CEO succeed in making changes

while another failed?

Jager gruff and Lafley soothing.

Jager bullied and Lafley persuades.

Lafley says of change: we are in the

business of leading change.


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Organizational Change

Starting point for setting change program is

definition of total change strategy.

OD strategy is a plan for integrating different

activities to accomplish objectives.


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Three Basic Approaches to

Organization Change

1. Structural

2. Technical3. Behavioral

Developing strategy includes planning activities

to resolve difficulties and build on strengths.


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Structural Approach to Change

Changes that relate elements of organization to

one another.

Includes removing or adding layers to hierarchy.

Downsizing associated with restructuring.

Changes can involve decentralization and

centralization.


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Technical Approach to Change

Changes in machinery, methods, automation,

and job design.

Changes help companies become more

productive.


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Behavioral Approach to ChangeEmphasizes better utilization of human

resources by improving:

Morale.

Motivation.

Commitment of members.OD traditionally associated with behavioral

strategies.


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L.DINESH MBA Chapter 8

Slide 11

Changes Require AllStrategies

Structural, technological, and behavioral

strategies not OD change strategies per se.

Determining feature of an OD strategy is

process used to arrive at strategy.


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Slide 12

Our Changing World: Japan Tries

to Restructure (part 1 of 2)

In 1980s Japanese companies model to world.

Recently, Japanese companies failed torespond to changing world.

Nissan first company to close major factory in

Japanese auto-industry.


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Slide 13

Our Changing World: Japan Tries

to Restructure (part 2 of 2)

Nissan failing when Renault took control.

Ghosn brought in to turn company around.

Shut down 5 plants, reduced workforce by

23,000, shifted production to U.S.

Most experts say do not count Japan out.

A viable Japan may emerge.


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Slide 14

Integration of Change Strategies

(part 1 of 2)

OD deals with change from integrated

standpoint that considers:

Structure Technology Behavior

Interdependence of subelements (departments)

needs to be considered.


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Slide 15

Figure 8.1Integrated Approach to Change


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Slide 16

Integration of Change Strategies

(part 2 of 2)

Change strategies need to take account of overt

and covert elements.

Second-order consequences consider change

in one area that influences others.


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Slide 17

Figure 8.2Organization Iceberg Approach to OD


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Slide 18

S

tream Analysis

Useful in planning.

Helps organization plan interventions.Provides graphical view of changes.

Allows progress to be plotted.


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Slide 19

Figure 8.3Stream Analysis Chart


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Slide 20

S

electing an ODI

ntervention

Practitioner and client consider:

Potential results of technique.

Potential implementation of technique

including costs versus benefit.

Potential acceptance of technique.


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Slide 21

OD in Practice: Is It a Kindler,

Gentler Microsoft? (part 1 of 3)

Changes at Microsoft initiated at top.

Gates stepped down as CEO and appointedBallmer CEO and president.

Both wanted to reinvent Microsoft.

Microsoft restructured to be responsive tocustomers.


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Slide 22

OD in Practice (part 2 of 3)

Executives given power to run units with less

supervision.

Ballmer encouraging everyone to rethink the

way they do their jobs.

Ballmer wants people to be respectful to others.


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Slide 23

OD in Practice (part 3 of 3)

He wants managers to work collaboratively.

Collaboration may produce complacency andstifle innovation.

Ballmer has history of humiliating executives

that may discourage real change.


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Slide 24

Overview of Major OD

Intervention Techniques

Intervention techniques focus on 4 categories:

1. Individual or interpersonal level.2. Team or group level.

3. Intergroup level.

4. Total organizational system level.


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Slide 25

Table 8.1OD Interventions: An Overview (part 1 of 2)


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Slide 26

Table 8.1OD Interventions: An Overview (part 2 of 2)


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Slide 27

Key Words and Concepts

Behavioral strategies - places emphasis on

human resources.

OD intervention - actions designed to improve

the health of the client system.

OD strategy - a plan for change usingstructural, technical, and behavioral methods.


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Slide 28

Parkinsons Laws - summarizes the problems

of inefficient practices in organizations.

Second-order consequences - indirect

consequences that result from change.

Stream analysis - method useful in planning

that plots interventions over period of time.


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Slide 29

Structural strategies - alters framework that

relates parts of organization to one another.

Technological strategies - changes in

machinery, methods, and job design.

Virtual meetings - meetings that occur

electronically over telecommunications lines

and Internet.


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Slide 30

Preparations for Next Chapter

Read Chapter 9.

Complete Step 1 of OD Skills Simulation 9.1. Simulation 9.3, complete Steps 1 and 2.

Read and analyze Case: The Sundale Club.

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