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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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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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Organization Development in
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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Organization Development in
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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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
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