Management and Organizational Studies 2275A/B Study Guide - Ethnocentrism, Organization Development, Behavioural Sciences

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Chapter 14: Organizational development and Change
Organization Development (OD)
A planned, organization-wide, continuous process designed to improve communication,
problem solving and learning through the application of behavioral science knowledge
o Roots in humanistic psychology
o Grounded in values of individual empowerment and interpersonal cooperation
o Fully consistent with the high involvement management approach
Understanding organization development
o Casual variables
Organization structure
Leadership behavior
o Intervening variables
Skilled behaviors
Intergroup relations
o End-result variables
Improved productivity
Increased sales
Lower costs
Customer loyalty
Higher earnings
Basic organization development model
o Feedback
Diagnosis of situation: diagnostic device for managers include interviews,
surveys, group sociometric devices, process-oriented diagnosis and
accurate records
Introduction of interventions: organization development interventions
include t-group training, team building, and job redesign
Progress monitoring: surveys and other techniques may be reused to
determine what progress has been made toward solving the problem
The main criterion for evaluation is whether the original objective has been
Organization development across cultures
o Ethnocentric attitude and stereotyping
o Must avoid an ethnocentric attitude as well as stereotyping
Openness to new approaches, ideas and beliefs and willingness to
change one’s own behavior
Knowledge of specific cultures
Understanding of the beliefs and behavior patterns of different
Interpersonal sensitivity
The ability to listen to and resolve problems with people from
different cultures
Growth and relevance of organization development
o Three major trends shaping change in organizations
Changing markets in and environments in which organizations
operate as well as the way they function
Information technology
Redefine the traditional business model by changing how work is
performed, how knowledge is used and how the cost of business is
Managerial innovation
Responds to the globalization and information technology trends
and has accelerated their impact on organizations
Two types of planned change
o Incremental change
Based on efforts to improve basic work and organizational processes
o Transformational change
Involves redesign and renewal of the total organization
Sacred-Cow Hunts: behavioral patterns
o The paper cow
o The time cow
o The meeting cow
o The cash cow
Organizational change development