Organization Development and Change
Chapter Twenty Four:
Organization Development in
Nonindustrial Settings: Health Care, School
Systems, the Public Sector, and Family-Owned Businesses
Thomas G. Cummings
Christopher G. Worley
Learning Objectives
for Chapter Twenty Four

To understand how OD in nonindustrial
settings health care, school systems, the
public sector and family-owned businesses
differs from traditional practice contexts

To examine how OD is practiced in four nontraditional settings
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Trends in Health Care
Erosion of comprehensive health insurance and access to care
Movement to the electronic record
Stabilization of physician-hospital relationships
Growing reliance on philanthropy
Employer support of consumer-directed health care
Loss of baby-boomer caregivers and managers
Increased need to manage new clinical tchnology
Quality as a strategic regulatory imperative
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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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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 School
Systems
Education with industrial-age roots
Changing Conditions Cause Stress
Disappointing Reform Efforts
New Metaphor for Schools
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Future Opportunities for OD Practice in
School Systems
Building Trust
Setting strategy
Learning Design
Collaboration
Action Research
Community Engagement
Leadership
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Technology’s Unique Role
in School OD
Online learning
Communities
Media-based learning
Gaming environments
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Trends affecting
Public-Sector Organizations
Federal, state, and local governments operate
in an environment of competing political, 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 demonstrating
responsiveness to public wants and needs
 Structures are political-administrative creating
an inherent tension within the organization

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Characteristics of Public-Sector
Organizations

Multiplicity of decision makers
 Creates difficulty in identifying who is responsible for
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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Three Systems in
Family-Owned Businesses
Family Statement
Values, Mission,
Vision (Values)
Shareholder’s
Agreement (Laws))
Ownership
Family
Business
Family Business Protocol Policies (Rules)
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Family
Core Values
Family
Commitment
Family
Vision
Family
Enterprise
Plan
Values
Strategic
Thinking
Shared Future
Vision
Formulating
Plans
Management
Philosophy
Strategic
Commitment
Business
Vision
Business
Strategy
Plan
Business
The Parallel Planning Processes
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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 environment—trust

Diagnosing the organization
 Confidential interviews of stakeholders

Feedback and planning
 Build good communication practices

Implementing and evaluating change
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