Organization Development and Change

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Organization Development and Change
Chapter Twenty Two Organization Development
in Nonindustrial Settings Health Care, Family
Businesses, School Systems, and the Public Sector

• Thomas G. Cummings
• Christopher G. Worley

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Learning Objectivesfor Chapter Twenty Two

• To understand how OD is health care, family
  businesses, school systems, and government
  settings differ from traditional practice
  contexts
• To examine how OD is practiced in four
  non-traditional settings

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Organization Development in Health Care

• Consumers are insulated from economics of health
  care by insurance providers
• Key providers of care are often not exclusively
  employed by one hospital or care setting
• Hospitals are primarily not for profit and
  heavily regulated by government

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Environmental Trends in Health Care

• Imbalanced supply and demand
• Severe workforce shortages and little diversity
• Increasing calls for patient safety and
  accountability
• Increasing technology
• Continuing financial challenges
• Eroding trust in the health care system

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Opportunities for OD Practice in Health Care
Settings

• Creating effective Cultures
• High quality, cost effective human resource
  systems
• Effective job and work design
• Restoring trust in and among stakeholders

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Success Principles for OD in Health Care

• Demonstrate the relevance of the subject to
  strategic performance
• Demonstrate the importance of depth for
  sustainability
• Demonstrate Competence
• Facilitate integration among and between the
  diverse parts of the system

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Organization Development in Family-Owned
Businesses

• The family business system
• An organization where ownership and/or management
  control rests with a family (or families)
• Composed of the business, the shareholder and the
  family

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The Family Business System
Shareholder Forum
Shareholder Plan
Shareholder System
Values
Family Council
Board of Directors
Business System
Family System
Family Plan
Business Plan
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Critical Issues in Family Business

• Entering or leaving the business as a family
  member
• Conflicts and rivalry
• Ownership transfer and estate planning
• Selecting a new leader
• Business growth and family wealth

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OD Interventions in Family Business Systems

• Entering and contracting
• Create a safe emotional environmenttrust
• Diagnosing the organization
• Confidential interviews of stakeholders
• Feedback and planning
• Build good communication practices
• Implementing and evaluating change

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Typical Family Business Intervention Areas

• Strategic
• Mission and vision development, capability
  identification, and goal setting
• Systems
• Human resources, communication, technical
  operations, culture
• Structure
• Management team, family council, shareholder
  forum
• Process
• Coaching, conflict resolution, team building

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Organization Development in School Systems

• Trends effecting public schools
• Greater social complexity and competitive demands
  of a global economy
• Culturally diverse and multilingual populations
• Increased divorce and dual-career families which
  manifest in poorly prepared students lacking
  necessary parental support

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Unique Characteristics of Schools

• Primary task centers on transforming young people
  through learning
• Tasks are complex and uncertain
• Highly dependent on environment
• Public schools generally lack competition
• Teachers better educated and motivated by
  intrinsic rewards

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Implications for OD in Schools

• Schools have highly developed administrative
  structures to enable interaction with the
  environment
• Tasks are uncertain creating difficulties in
  performance including coordination and resource
  allocation
• Teachers do not have access to structures for
  collaborative problem solving
• Schools are underorganized systems

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High-Involvement Management in Schools

• Create an alternative to the traditional school
  hierarchy
• Include all stakeholders (teachers,
  administrators, parents) in decisions
• Increasing the presence of power, information,
  knowledge and skills, and rewards

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OD Interventions in Schools

• Total Quality Management
• Leader initiated, long term and iterative
• School-based Management
• Formal alteration of school governance structures
• Classroom Interventions
• Integrated curriculum and cooperative learning
  incorporate high involvement principles and
  involve students in designing their learning

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Trends affecting Public-Sector Organizations

• Federal, state, and local governments operate in
  an environment of competing political, social and
  economic forces
• Public-sector organizations are called to become
  more citizen focused and to operate as an
  efficient business

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Values and Structures of Public-Sector
Organizations

• Values focus on governing toward greater public
  good and to demonstrating responsiveness to
  public wants and needs
• Structures are political-administrative creating
  an inherent tension within the organization

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Characteristics of Public-Sector Organizations

• Multiplicity of decision makers
• Creates difficulty in identifying who is
  responsible for different steps in the
  governmental process
• Stakeholder Access
• Open to the public, diverse groups of people with
  different and competing interests
• Intergovernmental relations
• Federal, state, and local governments share
  power, responsibility and resources

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OD in Public-Sector Organizations

• Focus on technostructural interventions
• Work flow design and structure
• Tailor interventions to fit highly diverse,
  politicized situations
• Continuous improvement, customer focus