Chapter 8

OD Intervention
Strategies

An Experiential Approach to Organization Development 7th edition Chapter 8

Slide 1
 Learning Objectives

 Identify and understand range of major OD

intervention techniques and how they can be
applied.
 Identify ways interpersonal, team, and
intergroup techniques fit into OD program.
 Understand the change strategies.

An Experiential Approach to Organization Development 7th Chapter 8

edition Slide 2
 Leading Change at P&G
(part 1 of 3)

P&G CEO Lafley makes changes that began

with previous CEO in the 1990s.
Significant changes made on structural lines.
Previous CEO, Jager, made changes using
combative style.

An Experiential Approach to Organization Development 7th Chapter 8

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 Leading Change at P&G
(part 2 of 3)

Corporate headquarters undergoing change.

Executives have open offices.
Division presidents’ offices located with their
teams.
Changes made without alienating employees.

An Experiential Approach to Organization Development 7th Chapter 8

edition Slide 4
 Leading Change at P&G
(part 3 of 3)

Why did one CEO succeed in making changes

while another failed?
• Jager gruff and Lafley soothing.
• Jager bullied and Lafley persuades.
Lafley says of change: “…we are in the
business of leading change.”

An Experiential Approach to Organization Development 7th Chapter 8

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 Organizational Change

Starting point for setting change program is

definition of total change strategy.
OD strategy is a plan for integrating different
activities to accomplish objectives.

An Experiential Approach to Organization Development 7th Chapter 8

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 Three Basic Approaches to
Organization Change
1. Structural
2. Technical
3. Behavioral
Developing strategy includes planning activities
to resolve difficulties and build on strengths.

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 Structural Approach to Change

Changes that relate elements of organization to

one another.
Includes removing or adding layers to hierarchy.
Downsizing associated with restructuring.
Changes can involve decentralization and
centralization.

An Experiential Approach to Organization Development 7th Chapter 8

edition Slide 8
 Technical Approach to Change

Changes in machinery, methods, automation,

and job design.
Changes help companies become more
productive.

An Experiential Approach to Organization Development 7th Chapter 8

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 Behavioral Approach to Change

Emphasizes better utilization of human resources

by improving:
• Morale.
• Motivation.
• Commitment of members.
OD traditionally associated with behavioral
strategies.
An Experiential Approach to Organization Development 7th Chapter 8
edition Slide 10
 Changes Require All Strategies

Structural, technological, and behavioral

strategies not OD change strategies per se.
Determining feature of an OD strategy is
process used to arrive at strategy.

An Experiential Approach to Organization Development 7th Chapter 8

edition Slide 11
 Our Changing World: Japan
Tries to Restructure (part 1 of 2)
In 1980s Japanese companies model to world.
Recently, Japanese companies failed to
respond to changing world.
Nissan first company to close major factory in
Japanese auto-industry.

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 Our Changing World: Japan
Tries to Restructure (part 2 of 2)
Nissan failing when Renault took control.
Ghosn brought in to turn company around.
Shut down 5 plants, reduced workforce by
23,000, shifted production to U.S.
Most experts say do not count Japan out.
A viable Japan may emerge.

An Experiential Approach to Organization Development 7th Chapter 8

edition Slide 13
Integration of Change Strategies
(part 1 of 2)

OD deals with change from integrated

standpoint that considers:
Structure Technology Behavior
Interdependence of subelements (departments)
needs to be considered.

An Experiential Approach to Organization Development 7th Chapter 8

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 Figure 8.1
Integrated Approach to Change

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Integration of Change Strategies
(part 2 of 2)

Change strategies need to take account of overt

and covert elements.
Second-order consequences consider change
in one area that influences others.

An Experiential Approach to Organization Development 7th Chapter 8

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 Figure 8.2
“Organization Iceberg” Approach to OD

An Experiential Approach to Organization Development 7th Chapter 8

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 Stream Analysis

Useful in planning.
Helps organization plan interventions.
Provides graphical view of changes.
Allows progress to be plotted.

An Experiential Approach to Organization Development 7th Chapter 8

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 Figure 8.3
Stream Analysis Chart

An Experiential Approach to Organization Development 7th Chapter 8

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 Selecting an OD Intervention

Practitioner and client consider:

 Potential results of technique.
 Potential implementation of technique
including costs versus benefit.
 Potential acceptance of technique.

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 OD in Practice: Is It a Kindler,
Gentler Microsoft? (part 1 of 3)
Changes at Microsoft initiated at top.
Gates stepped down as CEO and appointed
Ballmer CEO and president.
Both wanted to reinvent Microsoft.
Microsoft restructured to be responsive to
customers.

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edition Slide 21
 OD in Practice (part 2 of 3)

Executives given power to run units with less

supervision.
Ballmer encouraging everyone to rethink the
way they do their jobs.
Ballmer wants people to be respectful to others.

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 OD in Practice (part 3 of 3)

He wants managers to work collaboratively.

Collaboration may produce complacency and
stifle innovation.
Ballmer has history of humiliating executives
that may discourage real change.

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 Overview of Major OD
Intervention Techniques
Intervention techniques focus on 4 categories:
1. Individual or interpersonal level.
2. Team or group level.
3. Intergroup level.
4. Total organizational system level.

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 Table 8.1
OD Interventions: An Overview (part 1 of 2)

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 Table 8.1
OD Interventions: An Overview (part 2 of 2)

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 Key Words and Concepts

 Behavioral strategies - places emphasis on

human resources.
 OD intervention - actions designed to improve
the health of the client system.
 OD strategy - a plan for change using
structural, technical, and behavioral methods.

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 Parkinson’s Laws - summarizes the problems
of inefficient practices in organizations.

 Second-order consequences - indirect

consequences that result from change.

 Stream analysis - method useful in planning

that plots interventions over period of time.

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 Structural strategies - alters framework that
relates parts of organization to one another.

 Technological strategies - changes in

machinery, methods, and job design.

 Virtual meetings - meetings that occur

electronically over telecommunications lines
and Internet.

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edition Slide 29
 Preparations for Next Chapter

 Read Chapter 9.
 Complete Step 1 of OD Skills Simulation 9.1.
 Simulation 9.3, complete Steps 1 and 2.
 Read and analyze Case: The Sundale Club.

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