ORGANIZATION DEVELOPMENT

CHAPTER 14
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Four Major Issues
I. Managing Change
II. Empowering Employees
III. Downsizing
IV. Implementing Innovative Work Schedules

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I. MANAGING CHANGE

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Sacred-Cow Hunts
The first step toward organizational change, in which employees look for
practices and policies that waste time and are counterproductive.

■ Paper cow- unnecessary paperwork.

■ Meeting cow- number and length of meetings.

■ Speed cow- unnecessary deadlines

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Employee Acceptance of Change
Stages of Change
■ 3 Stage Model of Change (Lewin, 1958)
q Unfreezing- the organization must convince employees and
other stakeholders that the current status quo is
unacceptable and that change is necessary.
q Freezing- the organization takes steps to move the
organization to the desired state.
q Refreezing- the organization develops ways to keep the new
changes in place.

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■ Employee Stages (Carnall, 2008)

Stage 1. Denial
Stage 2. Defense
Stage 3. Discarding
Stage 4. Adaptation
Stage 5. Internalization

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Important Factors
■ The Reason Behind the Change

■ The Type of Change

– Evolutionary- the continual process of upgrading or improving
processes.
– Revolutionary- “real jolt to the system” that drastically changes
the way things are done.

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■ Person Making the Change
– Popularity
– Degree of respect
– History of successful change

■ The Person Being Changed

⎼ Change agents- “If it ain’t broke, break it.”
⎼ Change analysts- “If it ain’t broke, leave it alone; if it’s broke, fix it.”
⎼ Receptive changers- “If it’s broke, I’ll help fix it.”
⎼ Reluctant changers- “Are you sure it’s broken?”
⎼ Change resisters- “It may be broken, but it’s still better than the unknown.”

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Implementing Change
■ Creating an atmosphere for change
■ Communicating details
■ Time frame
■ Training needs

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II. EMPOWERMENT

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Factors in Making the Decision to Empower
■ Importance of decision quality
■ Leader knowledge of problem area
■ Problem structure
■ Importance of decision acceptance
■ Probability of decision acceptance
■ Subordinate trust and motivation
■ Probability of subordinate conflict

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Decision-Making Strategies Using the
Vroom-Yetton Model
■ Autocratic I
■ Autocratic II
■ Consultative I
■ Consultative II
■ Group I

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 Levels of Employee Input and Control
High Level
■ Absolute
– Employees have absolute authority to make a decision on his own.
■ Shared/Participative/Team
Trust and responsibility

– Employees have an equal vote with management or other employees

– Reaches decisions through group consensus or voting
■ Advisory
– Employees provide feedback, suggestions and input
■ Ownership of Own Output
– Employees are responsible for their own quality control
– Control is only at the individual level
■ Following
Low Level – Work is closely checked by others
– Employee is closely supervised
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Empowerment Charts

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Consequences to Empowerment

■ Personal ■ Financial
– Increased job satisfaction for – Bonuses
most – Pay increases
– Stress
■ Career
■ decreased stress due to
greater control – Increased job security
■ increased stress due to – Promotions
greater responsibility – Increased marketability
– Increased chance of being
terminated

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III. DOWNSIZING

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Reducing the Impact of Downsizing
Signs of Problems
■ Temporary employees
■ Outsourcing
■ Help employees change careers
■ Early retirement packages
■ Pay cuts
■ Adjusting work schedules
– Restricting overtime
– Job sharing
– Work at home
– Payless holiday

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Reducing the Impact of Downsizing
Outplacement Programs
■ Emotional counseling
■ Financial counseling
■ Career assessment and Guidance
■ Job Search training

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Effects of Downsizing

■ Victims ■ Local Community

– Physical health – Lower tax base
– Psychological health – Greater unemployment payments
– Social wellbeing – Fewer donations to charity

■ Survivors ■ Organization
– More apprehensive, less secure – Most do not improve financial success
– Lower moral and satisfaction – Half report lower productivity
– Increased disability and health costs

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IV. WORK SCHEDULES

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Flexible Work Arrangements Strategies

1. Full-time work, flexible hours

2. Compressed workweeks
3. Reduced work hours
4. Work from home

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1. Full-Time Work, Flexible Hours

Flextime
– A work schedule that allows employees to choose their own work hours.

– Offered by 53% of organizations in 2011

– 33% of employees choose to use it

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Three Basic Components of Flextime:

1. Bandwidth – the total number of potential work hours available each day

2. Core hours – the hours in a flextime schedule during which every every employee must work

3. Flexible hours – the part of flextime schedule in which employees may choose which hours to
work.

■ Gliding time –employees can choose their own hours without any advance notice or
scheduling

■ Flexitour - employees have flexibility but must schedule their work hours at least a week in
advance.

■ Modified flexitour - employees have flexibility in scheduling but must schedule their work
hours a day in advance.

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 Hours
Flex Core Flex

5 6 7 8 9 10 11 12 1 2 3 4 5
AM PM
12-hour bandwidth

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2. Compressed Work Weeks
■ Regular work schedule: 5 days, 8 hours (40 hours)
■ Common compressed schedules
– 10 hours a day for 4 days
– 12 hours a day for 3 days
■ Advantages
– Decreased absenteeism
– Increased job satisfaction
– No loss in productivity
– Decreased start-up times and cost

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3. Reduced 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.

■ Job Sharing- two employees share one job by splitting the work hours.

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4. Working from Home
■ Advantages
– Better work-life balance
– Higher job satisfaction
– Higher performance
– Reduced intentions to turnover
– Lower commuting costs for employee
– Lower facility costs for employer
■ Disadvantages
– Difficult to supervise
– Potential safety issues
– Unions can’t organize workers

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