O. Dev. ch22

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Organization Development and Change

Thomas G. Cummings

Christopher G. Worley

Chapter Twenty Two:Organization Development in

Nonindustrial Settings:Health Care, Family Businesses,

School Systems, and the Public Sector

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Cummings & Worley, 8e(c)2005 Thomson/South-Western

21-2

Learning Objectives

for Chapter Twenty Two

To understand how OD is health care,

family businesses, school systems, andgovernment settings differ from

traditional practice contexts

To examine how OD is practiced in fournon-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 caresystem

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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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Family-Owned Businesses

The family business system

An organization where ownership and/ormanagement control rests with a family (or

families)

Composed of the business, the shareholder and

the family

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The Family Business System

Family

Council

Board of

Directors

Shareholder

Forum

Shareholder

System

Shareholder Plan

Business

System

Family

System

Family

Plan

Business

Plan

Values

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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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School Systems

Trends effecting public schools

Greater social complexity and competitivedemands of a global economy

Culturally diverse and multilingual

populations

Increased divorce and dual-career familieswhich manifest in poorly prepared students

lacking necessary parental support

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Cummings & Worley, 8e(c)2005 Thomson/South-Western 21-13

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 byintrinsic rewards

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Implications for OD in Schools

Schools have highly developedadministrative structures to enable

interaction with the environment

Tasks are uncertain creating difficulties inperformance including coordination and

resource allocation

Teachers do not have access to structuresfor 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 governancestructures

Classroom Interventions

Integrated curriculum and cooperative learningincorporate high involvement principles andinvolve students in designing their learning

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Trends affecting

Public-Sector Organizations

Federal, state, and local governments

operate in an environment of competingpolitical, 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 demonstratingresponsiveness to public wants and needs

Structures are political-administrative

creating an inherent tension within theorganization

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Characteristics of Public-Sector

Organizations

Multiplicity of decision makers

Creates difficulty in identifying who is responsiblefor 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

O. Dev. ch22

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