Organizational Development
Improvement of the Capital Equipment Order Policy
Siena Heights University
Fall 2012
Contents
Definitions ……………………….. Slide 3
Positive Model …...………………. Slide 4
Comprehensive Model for
Diagnosing Organizations ……..Slide 5
Introduction
Problem Statement
Gaps
Machine performance
Missed delivery dates
High costs
General Model of Planned Change.….Slide 6
Data Collection and Feedback Cycle…Slide 7
Force Field Analysis………………...Slide 8
Planning and Implementing Change…Slide 9
Evaluation and Implementation…….Slide 10
Conclusion.…………………...….Slide 11
Introduction of Business
 Automotive parts supplier
 Producing vehicle heating and
cooling exchange systems
 Fully owned subsidiary
 Parent company located in Japan
 Workforce of approx 3,000
Definitions
Organizational Development
M
i
c
h
a
e
l
B
e
e
r
s
Capital Equipment
“A system-wide process of data collection,
diagnosis, action planning, intervention,
and evaluation aimed at: (1) enhancing
congruence between organizational
structure, process, strategy, people, and
culture; (2) developing new and creative
organizational solutions; and (3) developing
the organization’s self-renewing capacity. It
occurs through collaboration of
“Equipment that you use to
manufacture a product,
provide a service or use to sell,
store and deliver merchandise.
This equipment has an
extended life so that it is
properly regarded as a fixed
asset.”
organizational members working with a
change agent using behavioral science theory,
research, and technology.“
Cummings & Worley, 9e (c) 2008
South-Western Cengage Learning
Capital Equipment Small Business Encyclopedia, 2012
Positive Model
 Initiate the Inquiry: Members choose
problem that they have the most energy
to undertake.
 Inquire into Best Practices: Gather
information of what work and why.
Initiate the Inquiry
Inquire into Best Practices
 Discover the Themes: Decide as a
group the common principles found in
the list of best practices.
Discover Themes
 Envision a Preferred Future: Use the
common principles as the starting point
for moving from the standard practice
into a ideal future.
 Design and Discover Ways to Build a
Preferred Future: Plans and actions
intended to produce preferred future
Envision a Preferred Future
Design and Discover Ways to
Build a Preferred Future
Cummings & Worley, 9e (c) 2008
South-Western Cengage Learning
Figure 3
Comprehensive Model for Diagnosing Organizational Systems
A. Organizational Level
Inputs
Design Components
Outputs
Technology
General
Environment
Inputs
Industry
Structure
Strategy
Structure
Culture
HR
Systems
B. Group Level
Inputs
Measurement
Systems
Design Components
Goal Clarity
Task Structure
Team
Functioning
Organization
Design
Inputs
Group
Composition
C. Individual Level
Inputs
Organization
Design
Inputs
Group Norms
Design Components
Task Identity
Task
Significance
e.g.
performance,
productivity,
stakeholder
satiisfaction
Outputs
Team
Effectiveness
e.g. quality of
work life,
performance
Outputs
Individual
Effectiveness
Skill Variety
Group Design
Personal
Characteristics
Organization
Effectiveness
Autonomy
Feedback about
Results
Cummings & Worley, 9e (c) 2008 South-Western Cengage Learning
e.g. job
satisfaction,
performance,
absenteeism,
personal
development
General Model of Planned Change
Entering and
Contracting
• Initial step in the
organizational
development
process involving
initial contact from
an organization,
discussing the
initial problem
statement,
determining the
true client, and
developing the
contract.
Diagnosing
• Process of
understanding the
systems that are
functioning within
an organization
leading the
consultant to
determine the root
cause of issues and
the best method to
implement change.
Planning and
Implementing
Change
Evaluating and
Institutionalizing
Change
• Actions used to
disrupt the normal
running of business
in order to create
positive change
that increases the
organization’s
effectiveness
• Providing feedback
to the organization
about their success
with the
intervention.
Includes next steps
to make the change
permanent, or the
determination to
start the
organizational
development
process again.
Cummings & Worley, 9e (c) 2008
South-Western Cengage Learning
The Data-Collection and Feedback Cycle
Core Activities
Planning
to Collect
Data
Collecting
Data
Analyzing
Data
Feeding
Back Data
Following
Up
Cummings & Worley, 9e (c) 2008
South-Western Cengage Learning
Results
Force-Field Analysis
Forces for Change
Lack of time to devote to planning
Poor supplier performance
No personal reward for improving process
High Machine Costs
Lack of Management Support
Desired Performance
Friction between two departments
Forces for Status Quo
Lack of time to devote to daily problem solving
Low understanding of other departments process
Desire to improve from past failures
(MindTools, 2011)
Results
Planning and Implementing Change
Structural Process Intervention
Best Practices
1.
2.
3.
4.
5.
Supplier Kick-off Meeting
Detailed Cost Breakdown Sheet
Exception from Specification Worksheet
Order Policy Document
Purchasing involvement from project start
Results
Evaluation and Institutionalization
Diagnosis
Implementation and Evaluation Feedback
Implementation of Intervention
Design and
Implementation
of Interventions
Clarification of
Interventions
Development of
Plan for Next
Implementation
Steps
Cummings & Worley, 9e (c) 2008 South-Western Cengage Learning
Implementation
Feedback
Measures of the
Features of the
Intervention and
Immediate Effects
Evaluation
Feedback
Measures of the
Long-term
Effects
Conclusion
• Diagnosis at the group level accompanied with adequate consulting
skills brought positive changes to the organization.
• Engagement of individuals from multiple departments to find best
practices strengthened the work team.
References
Capital Equipment Small Business Encyclopediea. (2012). Retrieved
November 1, 2012, from Entrepreneur.com:
http://www.entrepreneur.com/enclyopedia/printthis/82028.html
MindTools. (2011). Retrieved 1 2012, November, from Force Field
Analysis - Decision-Making Skills from MindTolls.com:
http://www.mindtools.com/pages/article/newTED_06.htm
(2009). In T. G. Cummings, & C. G. Worli, Theory of Organizational
Development and Change. Stamford, CT: CENGAGE Learning.