Chapter 14

Organization Development
Industrial-Organizational Psychology (PSY 32012-2)
Managing Change o Train employees after major change
Sacred Cow Hunts Organizational Culture
o Organization-wide attempt to get rid of the o Corporate climate
practices that are no longer useful o The shared values, beliefs, and traditions that
o First step towards organizational change exist among individuals in organizations
o Paper Cow – unnecessary paperwork – usually o Establishes workplace norms of appropriate
forms and reports that organizations money to behavior and defines roles and expectations
prepare, distribute, and read that employees and management have of each
o Consider the extent to which the paperwork other
increases efficiency, productivity, or quality o The change process includes holding on to the
o Meeting Cow – number and length of meetings successful elements of the present culture and
o Speed Cow – unnecessary deadlines adding new elements that are important
o Steps in Assessing the New Culture:
Employees Acceptance of Change 1. Needs Assessment
Stages 2. Determining Executive Direction
3. Implementing Considerations
I. Denial 4. Training
II. Defense 5. Evaluation of New Culture
III. Discarding o Rewarding current employees for successfully
IV. Adaptation participating and cooperating with the new
V. Internalization system is imperative
o Selection of employees must be based on how
Important Factors
well they epitomize the new culture
o Evolutionary Change – continual process of o Organizational Socialization – process whereby
upgrading or improving processes new employees learn the behaviors and
o Revolutionary Change – drastic changes attitudes they need to be successful in the
o Change Agents – people who enjoy change and organization
often make changes just for the sake of its o Rituals – procedures in which employees
o Change Analysts – not afraid to change or make participate to become “one of the gang”
changes but want to make changes only if the o Symbols – communication tools that convey
changes will improve the organization certain messages to employees
o Receptive Changers – people who probably will
Empowerment
not instigate change but are willing to change
o Reluctant Changers – not instigate or welcome Making the decision to Empower
change, but they will change if necessary
o Change resisters – hate changes Factors in Making the decision to Empower

Implementing Change a. Importance of Decision Quality

b. Leader Knowledge of the Problem Area
o Process begins by creating dissatisfaction with c. Structure of the Problem
the current system d. Importance of Decision Acceptance
o Work hard to reduce fear of change by e. Probability of Decision Acceptance
providing emotional support f. Subordinate Trust and Motivation
o Employees should be aware of and involved in g. Probability of Subordinate Conflict
all aspects of change from initial planning to
implementation Decision-Making Strategies using the Vroom-
o The longer it takes to change, the greater Yetton Model
opportunity for things to go wrong and the o Autocratic I – leaders use the available
greater chance that employees will become information to make decisions without
disillusioned consulting their subordinates
 Chapter 14
Organization Development
Industrial-Organizational Psychology (PSY 32012-2)
o Autocratic II – leaders obtain necessary o Flexible Hours – remain in bandwidth and in
information from their subordinates and then which the employee has a choice of working
make their own decisions o Gliding Time – employees can choose her own
o Consultative I – share the problem on an hours without advance notice or scheduling
individual basis with some or all of their o Flexitour or Modified Flexitour – employee
subordinates enjoying greater flexibility in working hours,
o Consultative II – share problems with their although it must be scheduled in advance
subordinates as a group
o Group I – shares the problem with the group Strategy 2: Compressed Workweeks
and lets the group reach a solution o Deviation from the typical five-day workweek
Levels of Employee Input and usually involve either 10-hrs a day for four
days or 12-hrs for 3 days
o Employees at the Following level have no real
control over their jobs Strategy 3: Reducing Work Hours
o When employees have ownership of their own o Allow employees to work lesser hours
product, they are still told of what they should o Peak-Time Pay – employees are encourage to
do but they are responsible for the quality of work only part time but are paid at higher
their output hourly rate for those hours than employees
o At advisory level, employees are asked to who work full time
provide feedback, suggestions, and input into a o Casual Work – employee works on an irregular
variety of organizational concerns or as-needed basis
o At Shared/Participative/Team level, employees o Job Sharing – two employees who share work
are now allowed to make decisions but as a hours
group
o Final level of Employee Input, Absolute, allows Strategy 4: Working from Home
an employee to give full authority to make
o Telecommuting – employee uses computer to
decisions on their own
electronically interact with the central office
Empowerment Charts
Downsizing
o In this chart, for each task/level, range of
Reducing the Impact of Downsizing
control/input is allowed
o Freeze hiring new permanent employees
Consequences of Empowerment
o Outsourcing – using outside vendors to provide
o Higher level of control/input = many positive services previously performed internally
aspects = increased pay, job security, and o Encourage employees to change careers and
increased potential to find other employment = then help them to learn skills needed for the
increased stress, responsibility career change
o Offer early retirement packages
Flexible Work Arrangement o Ask employees to take pay cuts or defer salary
Strategy 1: Full-time Work, Flexible Hours increases
o Adjusting work schedules
o Flextime – work schedule in which employees o Layoff announcements must be done in person
have some flexibility in the hours they work o Outplacement programs:
o Greater control over the hours they work a. Emotional Counseling (Denial, Anger, Fear
o Bandwidth – total no of potential hours Acceptance)
available for work each day b. Financial Counseling
o Core Hours – everyone must work and typically c. Career Assessment and Guidance
consist of the hours during which an
organization is busiest with its outside contacts
 Chapter 14
Organization Development
Industrial-Organizational Psychology (PSY 32012-2)
Effects of Downsizing
o Increased headaches, stomach upsets,
sleeping problems, cholesterol levels and etc.
o High level of stress, substance abuse, marital
problems, depression
o Survivors from downsizing suffer
psychological trauma and worries that their
future productivity is related to the way in
which they and their not so fortunate
counterparts are treated during the downsizing
process
end