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Organization Development and Change
Chapter Nine:Designing Interventions
9-2
Learning Objectivesfor Chapter Nine
To discuss criteria for effective interventions To discuss issues, considerations, constraints,
ingredients, and processes associated with intervention design
To give an overview of the various interventions used in the book
9-3
Definition of Interventions
An intervention is a set of sequenced and planned actions or events intended
to help the organization increase its effectiveness.
Interventions purposely disrupt the status quo.
9-4
Characteristics of Effective Interventions Is it relevant to the needs of the organization?
Valid information Free and Informed Choice Internal Commitment
Is it based on causal knowledge of intended outcomes?
Does it transfer competence to manage change to organization members?
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning 9-5
The Design of Effective Interventions
Contingencies Related to the Change Situation
• Readiness for Change• Capability to Change• Cultural Context• Capabilities of the Change Agent
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning 9-6
The Design of Effective Interventions
Contingencies Related to the Target of Change
• Strategic Issues• Technology and structure issues• Human resources issues• Human process issues
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning 9-7
Intervention Overview
Human Process Interventions Technostructural Interventions Human Resources Management
Interventions Strategic Interventions
9-9
1. Human Process Interventions A set of activities on the part of the consultant that helps group
members understand, diagnose, and improve their behaviors. Interventions are aimed at helping the group become
better able to use its own resources to identify and solve interpersonal problems and devise more effective ways of working.
a. Individual and group process approach• Process Consultation and Team Building• Third-party Interventions (Conflict Resolution) b. Organizational process approach• Organization Confrontation Meeting• Intergroup Relationships• Large-group Interventions (resolving intergroup
conflict)
12–10
Human process interventions
9-11
2. Human Resources Management Interventions
Goal Setting Performance Appraisal Reward Systems Coaching and Mentoring Career Planning and Development Management and Leadership Managing Work Force Diversity Employee Wellness Programs
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning 17-12
A Performance Management ModelW
ork p
lace
Te c
hno l
ogy
Business StrategyEm
ployee Involvement
GoalSetting
RewardSystems
PerformanceAppraisal
Individualand Group
Performance
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning 17-13
Performance Appraisal Elements
Elements Traditional High Involvement
Purpose Organizational, legal Fragmented
Developmental Integrative
Appraiser Supervisor or manager Appraisee, co-
workers, and others
Role of Appraisee
Passive recipient Active participant
Measurement
Subjective Concerned with validity
Objective and subjective
Timing Period, fixed,
administratively driven Dynamic, timely,
employee- or work-driven
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning 17-14
Reward System Design FeaturesDesign Feature Definition
Person/Job Based vs.Performance Based
The extent to which rewards are based on the person, the job or the outcomes of the work
Market Position(External Equity)
The relationship between what an organization pays and what other organizations pay
Internal Equity The extent to which people doing similar work within and organization are rewarded the same
Hierarchy The extent to which people in higher positions get more and varied rewards
Centralization The extent to which reward system design, decisions and administration are standardized
Rewards Mix The extent to which different types of rewards are available and offered to people
Security The extent to which work is guaranteed
Seniority The extent to which rewards are based on length of service
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning 17-15
Types of Rewards
PaySkill-based pay plansPerformance-based pay systems link pay to
performanceGain sharing involves paying bonuses based
on improvements in the operating results Promotions Benefits
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning 17-16
Individual Plan Productivity 4 1 1 4 Cost effectiveness 3 1 1 4 Superiors’ rating 3 1 1 3
Group Productivity 3 1 2 4 Cost effectiveness 3 1 2 4 Superiors’ rating 2 1 2 3
Organization- Productivity 2 1 3 4wide Cost effectiveness 2 1 2 4
Salary-Based Pay for Performance Ratings
Ties p
ay to
perf
orm
ance
Neg
ativ
esid
e ef
fect
sE
ncou
rage
coop
erat
ion
Em
ploy
eeA
ccep
tanc
e
3. Techno-structural Intervention for transformational change
Downsizing
Re-engineering
Quality circle
TQM
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning 14-18
Downsizing TacticsTactic Characteristics Examples
Workforce Reduction
Reduces headcount Short-term focus Fosters transition
Attrition Retirement/buyout Layoffs
Organization
Redesign
Changes organization
Medium-term focus Fosters transition &
transformation
Eliminate functions, layers, products
Merge units Redesign tasks
Systemic
Changes culture Long-term focus Fosters
transformation
Change responsibilities
Foster continuous improvement
Downsizing is normal
Cummings & Worley,9e (c) 2008 South-Western/ Cengage Learning 15-19
Employee Involvement
Extent to which employees have access to: Power Information Knowledge and Skills RewardsApplications of employee involvement are:a. Parallel structures b. TQM
Cummings & Worley,9e (c) 2008 South-Western/ Cengage Learning 15-20
EI and Productivity
EmployeeInvolvementIntervention
ImprovedCommunication
and Coordination
ImprovedMotivation
ImprovedCapabilities
ImprovedProductivity
Cummings & Worley,9e (c) 2008 South-Western/ Cengage Learning 15-21
Secondary Effects of EI on Productivity
EmployeeInvolvementIntervention
Productivity
ProductivityEmployee
Well-being andSatisfaction
Attraction andRetention
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning 16-22
Work Design Approaches Engineering: Traditional Jobs & Groups
High specification and routinizationLow task variety and autonomy
Motivational: Enriched JobsHigh task variety and autonomyFeedback of results
Sociotechnical: Self-Managing TeamsControl over total taskMulti-skilled, flexible, and self-regulating
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning 16-23
Enriched Jobs
Core JobCharacteristics
CriticalPsychological
StatesOutcomes
Skill varietyTask identityTask significance
Autonomy
Feedback from work
ExperiencedMeaningfulnessof the Work
ExperiencedResponsibility
Knowledge ofActual Results
• Hi internal work motivation• Hi growth satisfaction• Hi job satisfaction• Hi work effectiveness
Moderators
16-24
Sociotechnical Systems Design
Sociotechnical systems is based on whether:An organization or work unit is a combined, social-
plus-technical system. Can work system be designed to better fit with the
environment? Can work system be designed to better operate conversion
process and control variances? Can work system be designed to better satisfy members’
needs?
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning 16-25
Designing Work forTechnical and Personal
Technical Factors Technical interdependence: the extent to which
cooperation among workers is required Technical Uncertainty: the amount of information
processing and decision making among workers necessary to do the work
Personal Need Factors Social Needs: the desire for significant social relationships Growth Needs: the desire for personal accomplishment,
learning, and development.
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning 16-26
Work Designs That Optimize Technology
Low Technical Interdependence High
Hig
h
Te
chn
ica
l Un
ce
rta
inty
Lo
w
Self-RegulatingWork Groups
TraditionalWork Groups
TraditionalJob Design
Enriched Jobs
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning 16-27
Work Designs that Optimize Personal Needs
Low Social Needs High
Hig
h
G
row
th N
eed
s
Low
Self-RegulatingWork Groups
Enriched Jobs
TraditionalJob Design
TraditionalWork Groups
9-28
Strategic Interventions
Integrated strategic change Organization design Culture change Self designing organizations Organizational learning and knowledge management Built to change Merger and acquisition integration Strategic alliance integration Network intervention
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning 9-29
Strategic Interventions
Transformational Change Integrated Strategic ChangeOrganization DesignCulture Change
Continuous ChangeMergers and Acquisitions Alliances and Networks
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning 9-30
Strategic Interventions
Transorganizational ChangeSelf-designing OrganizationsOrganization Learning and Knowledge
ManagementBuilt to Change Organizations
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Publishing 21-31
Laying the Foundation
The Self-Design Strategy
AcquiringKnowledge
Diagnosing
DesigningImplementing
andAssessing
Valuing
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Publishing 21-32
Organization Learning: An Integrative Framework
OrganizationCharacteristics
StructureInformation SystemsHR PracticesCultureLeadership
OrganizationLearning Processes
DiscoveryInventionProductionGeneralization
OrganizationKnowledge
TacitExplicit
CompetitiveStrategy
OrganizationPerformance
Knowledge ManagementOrganization Learning