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An Experiential Approach to Organization Development, Case Study Example

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Case Study

The Franklin Company has had a history of success in selling radar units used in vehicles for over 100 years. They have manufactured lightning rods and wind vanes since World War I, and have seen stable growth in sales, but profits have declined as competitors have entered the market with new products. This has decreased the company’s market share, and the company has been slow to bring new products to the market to compete with competitors, as several key members have left for the competitors. This has led to many in the organization mainly the President to reevaluate the organization, and try to come up with a new business strategy that will enable the company to re-access the situation and propose new solutions that will help the company compete and gain profits in the market.

As the president, the role and responsibilities include looking to reorganize the business into a more decentralized unit, that will improve coordination of the vice prices and the operating groups. Implementing a newer computerized MIS will also potentially help in improving organizational communication and coordination, as well as choosing to do business on the internet. On the advice of the Vice President, the company will trying to implement an organization development program that will help to improve employee morale and bottom-line results. By getting input from organizational development practitioners it will help in getting the various key members of the organization to find an agreeable solution to solving the problem by introducing modern techniques into the mature organization. In order to do this there are several concepts that the president as well as the organization must understand about organizational development, that will help the company move into the 21st century, in terms of a better team building, input from Human Resources, modern technology, and other intervention tools that are necessary to compete in  the market.

The business environment is rapidly accelerating the rate of change, and the change in the development of an organization is crucial to the success and the survival of older establishments. Given the changes projected in this report are in the main focus on enhancing people’s commitment, motivation and inspiration owing to the very fact that the success of the change in organization development is dependent on the members of the organization.  The business environment is a dynamic landscape the must adapt to the consumer and technological changes. Organizational development comprises the long-range effort to enhance an organization’s ability to address change to find a solution based mainly on a renewal process through operational and collaborative management of organization culture. Organizational development improves the prospective of the members of the organization, and accomplishes corporate excellence by assimilating the needs of people with the goals of the organization additionally, organizational development stresses learning as a factor of an adaptive organization. The flexibility to sense changes in signals from each internal and external environment and adapt consequently.

Organizations integrate incessant learning into its renewal process to keep pace with ever-changing industry conditions. Karp (2004) state that organizations will produce a key supply of competitive advantage by evolving its competency to learn and change faster than its competitors. The rarest resource in many organizations nowadays is not monetary capital however, innovation from human talent, and implementing modern changes to compete in a highly technological business environment. Thus, the flexibility to compete and surpass in the world economy goes beyond industrial the flows and trading of investment and capital.

Organizational development makes an attempt to increase productivity and effectiveness through revitalized employees who are ready to develop creative thinking, imagination, and, above all, innovation. Managing change effectively is a tough and challenging. Organizational development requires leaders to perform appropriately. Kotter (1995) has recognized the development of a guiding alliance as a crucial learning purpose from unsuccessful change strategies. Brown and Harvey (2006) make a recommend approach, which is to gather a team that consists of an organization development practitioner working directly with management to initiate and facilitate organizational development. The collaborative relationship between each practitioners provides an integration of skills and resources. The organization development practitioners bring expertise, sound judgment, and new insights to organization issues. In contrast, management usually operates with the help of Human Resources. Lawler and Mohrman (2003) emphasize the importance of the role of human resources in the development and implementation of organization development interventions. They strongly emphasize the participation of Human Resources as a strategic partner in serving to the organizations to initiate change management, by causative comprehensive information of the issues and norms, the morale of the employees, and an attention to the system’s advantages and disadvantages. (Lawler, Mohrman 2003).

Besides using an organizational development practician team, Karp, conjointly acknowledged that the responsibility for change should be assigned to a broader range of higher level management. So as to effectively manage change initiatives, a flourishing team of leaders such as the vice presidents and the president, (Kotter 1995). It is necessary to include external neutral owing to the very fact that if the prevailing internal system is functioning properly, there would be no need for organizational development. However, the current business strategy of Franklin is failing to produce growth in profits, and decreasing the market share thanks to the inefficiencies in the system, and therefore, demands activity outside of formal boundaries, prospects, and practices. OD intervention incorporates the various actions needed to improve the functioning of the client systems. The interventions are particular to the activities, means, and functions by which change can be appropriate. (Brown 2011) In working with the OD practitioner, all parties must be attentive to the diverse intervention techniques appropriate to help the organization. When the organization is inefficient, like the Franklin Company, an organization redevelopment is necessary in changing the environment of the employees, the procedures, or the structure of the organization.

There are many approaches obtainable to facilitate leaders and managers to implement change. This report discusses the combination of people-oriented approach and sociotechnical systems approach to organizational development. It is crucial to note that the success of the organization development intervention is dependent on the members of the organization. (Karp 2004). Therefore, the strategies that are discussed in this report can intensify human behavioral factor follow by cultural, structural and technological factors. An OD strategy is incorporating the planning and direction of the intervention tools. Using a comprehensive approach includes the management of the organization, the roles of the employees, and the way in which they are motivated to do their jobs. (Brown 2011). There are several approaches that the Franklin Company can implement into its’ organization. The people-oriented approach emphasizes human behavior and therefore, the use of human resources. Flourishing organizational development should appreciate the issues of the employees as a tool for inspiration and motivation (Karp 2004). The approach that is needed in the organization is to conduct an appreciative inquiry (AI), which incorporates identification of the greatest times during the best situations in the past in a company, pondering what worked best then, visioning what the employees would like in the future, and building from what worked best so as to figure toward the organization’s vision. AI emphases using the positive strengths which are critical to form energy for forward movement in organizations. The intervention tool that is necessary includes team building or bonding which helps to dissolve team conflict, interdepartmental communications, and organizational restructure which help in proving performances of the different departments.

According to Harvey (2006) AI is best directed through an organization-wide dialogue. This approach is useful in accomplishing a collective comprehension of grievances and ideas to help build a shared language, which will further develop effective communication at intervals organization. This is also in line with a decentralized operations approach that will emphasize positive and conducive dialogue process that helps to collect information and share knowledge throughout the organizations. Sharing relevant knowledge helps establish a way of urgency (Brown 2011). Employees are more probably to support changes once they are attentive to the crises faced by the organization, and perceive the broader implications of their actions in the organization’s development towards the long run (Karp 2004). As a result, the intervention tool involving AI and dialogue process boosts people’s joint commitment and individual motivation to help in creating a more functioning organization. Nevertheless, people-oriented approach might not be adequate for effective organizational development. In line with Harvey (2006), leaders and managers acknowledge that many factors associated with individuals, culture, structure, and technology began to emerge as critical components during organizational development. Changes in anyone of the organization’s processes will have effects throughout the organization. So as to make the most of the impact of organizational development it is dynamic to take account of the structural, cultural, and technological components when coming up with change (Karp 2004). The tools includes to build common values, vision, and understanding the roles of each team member to improve team performance.

The structural approach to the Franklin Company is pertinent is creating a decentralized system among the vice presidents in the organization. This includes removing layers to the hierarchy, and restructuring how members of the organization communicate. In order to get a healthy organization, the vice presidents should take the employees and managers opinions in the decision making process to create new ideas in helping to refocus the operations. The elimination of the vice presidents in making the sole decisions helps in creating more sources of information among teams that help to make up the organization. Despite culture, sociotechnical systems approach conjointly incorporates technical functions to reinforce this approach. This is helpful in creating a more cohesive and inviting organization that helps to give each team member responsibility in making the organization a success. A technology approach is also warranted within the organization as, the president, choosing to do business on the internet is essential in the vitality of the organization. Competition has move towards a more e-commerce platform that allows for more global consumers, and more profits. The change in this company, must come from management, to drive change in implementing more modern techniques, incorporating a new MIS, is essential to given management the tools necessary in organize, evaluate, and manage different departments in the organization. This includes incorporating new collaborative software and hardware into the system, as well as implementing new decision support systems that enable the organization to run more efficiently. In incorporating the functions of the employees, people and project management will be effective in given team members goals and roles in knowing how to better streamline production and operating in creating new products that will come to market faster. Nowadays, organizations are progressively implementing subtle computerized management-information system. Lawler and Mohrman (2003) counsel that advanced IT-based systems will off-load transactional tasks, releasing up the professionals for better value to the functions of the organization. These systems enable leaders to collect and analyze knowledge regarding the possibility and effectiveness of assorted hour approaches given the human resources of the firm. As a result, technological change about it has a significant impact on human resources and the organization.

Organizational structure will generally be the obstacles for the change process. It is necessary to structure the work and eliminate layers of bureaucracy to change employees to adapt more without delay to the ever-changing economy (Brown 2011). Structural changes that involve decentralization boost participative deciding and boost up motivation of employees. The most crucial challenge to implement effective change is employees’ resistance to vary. The greatest problem is not for individuals to just accept new ideas, however to form them forgot their previous ideas regarding, the method that is intended to get things done. (Karp 2004). It is onerous to drive individuals out of the comfort zones. During the change programs, managers should offer leadership support to team members in order to successfully implement the changes throughout the organization. Franklin Company’s actions are crucial to the intervention as a result, they solidify worker commitment, reinforce the tools and information gained from input of practitioners, and assist within the implementation of the long-run plans. Effective action ways embody correspondence to any or all staff reiterating the success and continued commitment to the organization. In addition as periodic evacuations, can reassure them of the duration of the intervention and also the worth of their efforts. Structure success may be an alternative. In order to be able to verify whether or not associate OD intervention has been eminent, it should be able to be evaluated. An eminent intervention ought to be able to concretely show marked improvement from before the intervention transpired to once the intervention has been completed.

For the Franklin Company, the analysis of the effectiveness of the appreciative inquiry intervention is measured through the four level Kirkpatrick model. The first level of analysis within the Kirkpatrick model is Reaction. This level seeks to judge the initial reactions of the workers. Surveys are administered throughout the organization, can embody queries that may address if the activities and changes where relevant (Kirkpatrick, 1998). The second level of analysis is Learning, it will verify if staff thoroughly learned the new systems being implemented. The third level of analysis within the Kirkpatrick model is Behavior. This level evaluates the extent to that the employees applied their learning and altered their behavior. This analysis are completed through a mixture of 360 degree evaluations and observations and therefore, involve a spread of individuals as well as the workers, the corporate leaders, the managers, and also the customers (Kirkpatrick, 1998). The fourth level is Results, which can illustrate the particular business impact from the intervention to embody key performance indicators.

Continuous change is a method of life. Firms seeking to be successful and survive ought to strengthen their organization development strategies. Human resource is that the key to success organizational development. The change initiatives discussed in this report intensify better organizational learning and boosting people’s commitment. Any significant change effort should manage the full organization system, which incorporates structure, technology, and human behavior. The combination of these approaches is believed to be a sensible method of structuring and facilitating organizational development. To manage change effectively, organizations should manage resistance to vary and focus on motivation. The Franklin Company must successfully implement and evaluate the changes to the organization in order to compete in the changing business environment.

References

Albert, Michael. (2006). Managing Change at HP Lab: Perspectives for Innovation, Knowledge Management and Becoming a Learning Organization. The Business Review 5 (2): 17-22.

Brown, Donald. (2011). Experiential Approach to Organization Development, 8th Edition. Prentice Hall.

Brown, Donald R., Don Harvey. (2006). An Experiential Approach to Organization Development. 7th edition. Prentice Hall.

Karp, Tom. (2004). Learning the steps of the dance of change: improving change capabilities by integrating futures studies and positive organizational scholarship. Foresight: the Journal of Future Studies, Strategic Thinking and Policy. 6 (6): 349-355.

Kirkpatrick, D.L. (1998). Evaluating Training Programs. San Francisco: Berrett-Koehler Publishers.

Kotter, John P. (1995). Leading Change: Why Transformation Efforts Fail. Harvard Business Review. 96-103.

Lawler, Edward E. III, Susan A. Mohrman. (2003). HR as a Strategic Partner: What Does It Take To Make It Happen? Human Resource Planning. 26 (3): 15-29.

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