Dessler
Human Resource Management, 8th Edition
Chapter Eight
Managing
Organizational
Renewal
© Prentice Hall, 2000
Behavioral Objectives
When you finish studying this chapter, you should be able to:


Discuss how to manage an organizational change
program.
Explain how to set up and manage total quality
management programs.

Describe how to create effective self-directed teams.

Discuss HR’s role in business process reengineering.
© Prentice Hall, 2000
Chapter 8
1
Types of Change

Strategic Change

Cultural Change

Structural Change

Task Redesign

Technological Change

Changes in People, Attitudes and Skills
© Prentice Hall, 2000
Chapter 8
2
Ten Step Process for Leading
Organizational Change
1. Establish a Sense of Urgency
2. Mobilize Commitment to Change through Joint Diagnosis
of Business Problems
3. Create a Guiding Coalition
4. Develop a Shared Vision
5. Communicate the Vision
6. Enable Employees to Facilitate the Change
7. Generate Short-Term Wins
8. Consolidate Gains and Produce More Change
9. Anchor the New Ways of Doing things in the Company’s
Culture
10. Monitor Progress and Adjust the Vision as Required
© Prentice Hall, 2000
Chapter 8
3
Organizational Development (OD)
Organizational development (OD) is a special
approach to organizational change in which
the employees themselves formulate the
change that’s required and implement it,
often with the assistance of a trained
consultant.
© Prentice Hall, 2000
Chapter 8
4
Types of OD Applications

Human Process Applications

Team Building

Technostructural Interventions

Human Resource Management Applications

Strategic Applications
© Prentice Hall, 2000
Chapter 8
5
Quality
Quality can be defined as the totality of
features and characteristics of a product or
service that bears on its ability to satisfy
given needs.
© Prentice Hall, 2000
Chapter 8
6
Total Quality Management
Programs
Total quality management (TQM) programs
are organizationwide programs aimed at
maximizing customer satisfaction through
continuous improvements.
© Prentice Hall, 2000
Chapter 8
7
Human Resource Management and
the Quality Improvement Effort


Make sure all teams work within a policy—deployment process
to ensure their efforts are consistent with the firm’s goals.
Do not institute quality improvement teams as separate,
parallel organization structures.

Do not treat the quality improvement program as if it has an end.

Recognize that training is essential.

Give employees the skills they need to analyze and solve problems.

Remember that whether or not the company achieves it’s quality
goals is important but almost secondary. The new employee values
that emerge are the heart of the program.
© Prentice Hall, 2000
Chapter 8
8
Human Resource Management and the
Quality Improvement Effort (Cont.)




Don’t focus exclusively on “boosting productivity” or assume
that emphasizing quality means that productivity will
necessarily fall.
Recognize effort and encourage employees.
Reward individuals and team efforts in a concrete manner,
not necessarily just with money but with rewards like
merchandise or pins.
Remember that the first steps need to be taken by top management.
© Prentice Hall, 2000
Chapter 8
9
How HR Helps to Build Productive
Teams

Establish urgent, demanding performance standards.

Select members for skill and skill potential.

Train leaders to “coach” not “boss”.


Challenge the group regularly with fresh facts and
information.
Exploit the power of positive feedback, recognition,
and reward.

Choose people who like teamwork.

Train, train, train.

Cross-train for flexibility.
© Prentice Hall, 2000
Chapter 8
10
Business Process Reengineering
Business process reengineering is “The
fundamental rethinking and radical redesign
of business processes to achieve dramatic
improvements in critical, contemporary
measures of performance such as cost,
quality, service, and speed.”
© Prentice Hall, 2000
Chapter 8
11
HR’s Role in Reengineering
Process
Building Commitment to Reengineering
HR and Team Building
HR’s Role in Changing the Nature
of the Work
HR’s Role in Moving from Controlled
to Empowered Jobs
HR’s Role in Moving from Training
to Education
© Prentice Hall, 2000
Chapter 8
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