CHAPTER 14 : ORGANIZATION DEVELOPMENT

 Sacred cow hunt - The first step in organizational change, in which employees look for

practices and policies that waste time and are counterproductive.

 Paper cow - are unnecessary paperwork—usually forms and reports that cost

organizations money to prepare, distribute, and read.

 Meeting cow -Another area ripe for change is the number and length of meetings.
 Speed cow - Unnecessary deadlines are another source for potential change. Requiring

work to be done “by tomorrow” is sometimes necessary.

Employee Acceptance of Change

 STAGE 1: DENIAL - During this initial stage, employees deny that any changes will

actually take place, try to convince themselves that the old way is working, and create

reasons why the proposed changes will never work.

 STAGE 2 : DEFENSE - When employees begin to believe that change will actually occur,

they become defensive and try to justify their positions and ways of doing things.
 STAGE 3 : DISCARDING -employees begin to realize not only that the organization is

going to change but that the employees are going to have to change as well.
 STAGE 4 : ADAPTATION - employees test the new system, learn how it functions, and

begin to make adjustments in the way they perform.

 STAGE 5 : INTERNALIZATION - employees have become immersed in the new culture

and comfortable with the new system and have accepted their new coworkers and work

environment.

IMPORTANT FACTORS

 The Type of Change

 The Reason Behind the Change
 The Person Making the Change
 The Person Being Changed
 Change analyst - A person who is not afraid of change but makes changes only when

there is a compelling reason to do so.

 Receptive changer - A person who is willing to change.
 Reluctant changer - A person who will initially resist change but will eventually go along

with it.
 Change resister - A person who hates change and will do anything to keep change from

occurring.
 Implementing Change - Another important factor in employee acceptance of change is

the way the change is implemented.

 Creating an Atmosphere for Change - This process begins by creating dissatisfaction

with the current system. Employees should be surveyed to determine how satisfied they

are with the current system.

 Communicating Details - Employees are most responsive to change when they are kept

well informed.
 Communicating change is hard work - it had done a good job communicating the

reasons for and details of its restructuring

 Training is needed - employees who were given the responsibility for communicating

the change had not been properly trained in such areas as dealing with employee

hostility and resistance.

 Two-way communication is essential - Employees must have the opportunity to

provide feedback to the people making the changes.

 Honesty is the best policy - Be honest with employees and tell them information as it

arises rather than waiting until all aspects of the change are completed.

 Time Frame - The longer it takes to change, the greater the opportunity for things to go

wrong and the greater the chance that employees will become disillusioned.
  Training Needs - if an organization is changing to a self-directed team environment,

employees will need to be trained in such areas as goal setting, teamwork, presentation

skills, and quality analysis.

 Organizational culture - The shared values, beliefs, and traditions that exist among

individuals in an organization.
 Changing Culture - in changing culture is assessing the desired culture and comparing it

with the existing one to determine what needs to change.

Assessing the New Culture

 STEP 1 : NEEDS ASSESSMENT - Because parts of the existing culture may actually

support certain organizational changes, the current culture must be analyzed and

compared with the desired culture to determine what might need to change.
 STEP 2 : DETERMINING EXECUTIVE DIRECTION - Management must then analyze the

needs assessment to determine the decisions or actions that will reinforce the culture

and to assess the feasibility of certain changes.

 STEP 3 : IMPLEMENTATION CONSIDERATIONS - This area addresses how the new

culture will be implemented.

 STEP 4 : TRAINING - all organizational members must be trained in a new philosophy for

the new culture to thrive and be long lasting.

 STEP 5 : EVALUATION OF THE NEW CULTURE - an evaluation mechanism must be

established to review the new culture. Issues such as whether the change actually has

occurred or whether old norms and procedures still exist should be addressed

SELECTION OF EMPLOYEES
 Organizational socialization - The process whereby new employees learn the behaviors

and attitudes they need to be successful in an organization.

 Rituals - Procedures in which employees participate to become “one of the gang.”
 Symbols Organizational - behaviors or practices that convey
messages to employees.

Factors in Making the Decision to Empower

 Importance of decision quality - to be considered in making a decision is whether one

decision will be better than another.

 Leader Knowledge of the Problem Area - in decision making involves the extent to

which leaders have sufficient information to make the decision alone.

 Structure of the Problem - in decision making is the extent to which a leader knows

what information is needed and how it can be obtained—that is, the problem’s

structure.
 Importance of Decision Acceptance - involves the degree to which it is important that

the decision be accepted by others.

 Probability of Decision Acceptance - subordinate acceptance.
 Subordinate Trust and Decision - in the decision-making process is the extent to which

subordinates are motivated to achieve the organizational goals and thus can be trusted

to make decisions that will help the organization.

 Probability of Subordinate Conflict - for our consideration in the decisionmaking

process involves the amount of conflict that is likely among the subordinates when

various solutions to the problem are considered.

Decision-Making Strategies Using the Vroom–Yetton Model

 Autocratic I strategy - Leaders use available information to make a decision without

consulting their subordinates.

 Autocratic II strategy - Leaders obtain necessary information from their subordinates

and then make their own decision.

  Consultative I strategy - Leaders share the problem on an individual basis with their

subordinates and then make a decision that may or may not be consistent with the

thinking of the group.

 Consultative II strategy - Leaders share the problem with the group as a whole and then

make a decision that may or may not be consistent with the thinking of the group.
 Group I strategy - Leaders share the problem with the group and let the group reach a

decision or solution.

Levels of Employee Input

 Following - Employees at the following level have no real control over their jobs.
 Ownership of Own Product - employees are still told what to do but are solely

responsible for the quality of their output.

 Advisory - employees are asked to provide feedback, suggestions, and input into a

variety of organizational concerns.

 Shared/Participative/Team - The fourth level of employee input and control allows

an employee to make a decision.

 Absolute - The final level of employee input and control gives an employee the

absolute authority to make a decision on his own—no group consensus, no

supervisory approval.

 Empowerment Charts - A chart made for each employee that shows what level of input

the employee has for each task.

Strategy 1: Full-Time Work, Flexible Hours

  Flextime - A work schedule that allows employees to choose their own work hours.
 Bandwidth - The total number of potential work hours available each day.
 Core hours - The hours in a flextime schedule during which every employee must

work.
 Flexible hours -The part of a flextime schedule in which employees may choose

which hours to work.

 Gliding time - A flextime schedule in which employees can choose their own hours

without any advance notice or scheduling.

 Flexitour - A flextime schedule in which employees have flexibility in scheduling but

must schedule their work hours at least a week in advance.

 Modified flexitour - A flextime schedule in which employees have flexibility in

scheduling but must schedule their work hours a day in advance.

STRATEGY 2 : Compressed Workweeks

 Compressed workweeks - Work schedules in which 40 hours are worked in less

than the traditional five-day workweek.

Strategy 3: Reducing Work Hours

 Peak-time pay -certain employees are encouraged to work only part time but

are paid at a higher hourly rate for those hours than employees who work full

time.
 Casual work - A scheduling practice in which employees work on an irregular

or as-needed basis.
 Job sharing - A work schedule in which two employees share one job by

splitting the work hours.

Strategy 4: Working from Home

 Telecommuting
 - Working at home rather than at the office by communicating with managers and

coworkers via phone, computer, fax machine, and other off-site media.

DOWNSIZING

Signs of Problems

 Temporary employees - Also called “temps”—employees hired

through a temporary employment agency.

 Outsourcing - The process of having certain organizational functions

performed by an outside vendor rather than an employee in the

organization.
 Selecting the Employees to Be Laid Of - Should the above measures

not be sufficient and a layoff becomes necessary, the next step is to

choose which employees will leave the organization.

 The Announcement - The way in which the layoff is announced can

affect the success of future programs designed to help employees.

Layoff announcements are best done in person. Some organizations

opt for a general announcement, whereas others prefer that

supervisors notify their employees on a one-to-one basis

Outplacement Programs

 Denial stage - The first stage in the emotional reaction to change or layoffs, in which an

employee denies that an organizational change or layoff will occur.

  Anger stage - The second stage of emotional reaction to downsizing, in which employees

become angry at the organization.

 Fear stage - The third emotional stage following the announcement of a layoff, in which

employees worry about how they will survive financially.

 Acceptance stage - The fourth and final stage of emotional reaction to downsizing, in

which employees accept that layoffs will occur and are ready to take steps to secure

their future.

Efects of Downsizing

 Victims - Employees who lose their jobs due to a layoff.

 Survivors - Employees who retain their jobs following a downsizing.
 Local Community - Though not often considered, layoffs and plant closings have a

tremendous impact on the local community. Local governments suffer as their tax

base and revenues are reduced, local charities such as the United Way get fewer

donations and often have increased demands for their services, retail stores lose

business, banks have greater numbers of loan defaults, crime rates increase, and

social problems (e.g., drinking, divorce) increase.

 The Organization - Though many organizations continue to downsize, it is not clear

that downsizing produces the desired increases in organizational effectiveness.