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

Learning Objectives for 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
Family Plan

Family System

Business Business Board of Directors Plan System

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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

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