Chapter 19: Organization Development (OD)

Organization Development (OD) = planned organizational change guided by diagnosis, intervention, and redirect, applied to whole systems, not individuals or single units.
OD integrates behavioral science, group dynamics, and data-driven methods to understand how people react to change and to improve organizational effectiveness.
Key deliverable: meaningful, sustained change that aligns with organizational goals.

Health care is dynamic: changing reimbursements, costs, regulations, technology, burnout, and industry consolidation.
OD helps health care organizations implement rapid, sustainable changes and improve long-term viability.

OD applies to an entire system (organization or division).
Behavioral science informs the change process (group dynamics, culture, psychology).
Planned change is diagnosis → intervention → redirect (feedback and adjustment as needed).

Role: facilitate change, diagnose issues, design and implement interventions, train, provide information.
Skill set: technical expertise (e.g., Six Sigma, process improvement), interpersonal skills, consulting/facilitation skills, and ability to apply theory to practice.
Work arrangements: internal vs external consultants.
- Internal: deep organizational knowledge, data access, but potential bias or closeness.
- External: objectivity, broader experience, specialized interventions, but must build trust and rapport.
Core activities include: clarification, diagnosis, process design, intervention facilitation, and training.

OD uses the Action Research Model as a systematic change roadmap.
Eight steps (cycle of research and action):
1) Identify organizational problem
2) Engage OD consultant
3) Initial fact finding of issues
4) Feedback to key stakeholders
5) Agreement on issues
6) Plan course of action
7) Implement intervention
8) Evaluate intervention
The model emphasizes data-informed decisions, iterative feedback, and continuous learning.

Questionnaires: efficient for large samples, anonymity, need validity and good design; risk of low response rate.
Interviews: depth, follow-up questions, potential response bias; smaller samples.
Observations: firsthand view of dynamics; Hawthorne Effect can alter behavior; coding challenges.
Unobtrusive data: existing records (finances, turnover, safety, customer satisfaction); objective but may be incomplete.
Purpose: diagnosis and selecting appropriate interventions; data drive action plans.

Planning/Implementing Change requires interventions that fit the organization, are grounded in intended outcomes, and transfer competence to members.
Major OD intervention categories:
1. Strategic Interventions: address broad strategic issues and competitive position.
2. Technostructural Interventions: organizational design and work design.
3. Human Process Interventions: focus on people and relationships (e.g., communication, conflict resolution).
4. Human Resource Management Interventions: reward systems, career planning, turnover reduction.
Additional OD interventions include:
1. Training: build skill bases when used with proper goals.
2. Performance-Management Systems: goal setting, appraisal, rewards.
3. Other tools as needed (e.g., process improvement, team building, total quality management, work redesign, structural changes).

AI focuses on strengths and positive attributes rather than deficits.
Five Ds: Define, Discover, Dream, Design, Deliver.
Process emphasizes peak experiences and envisioning an ideal future, then designing systems to support that future.
Example: Case study of healthcare dining services where AI facilitated positive conversations and training.

Case 19-1 Doctor’s Hospital: culture change linked to finances, morale, patient satisfaction. Multilevel program shifted mindset to service; financial turnaround accompanied by improved morale.
Case 19-2 What Went Wrong? (OD consultant) - Misalignment between diagnosing issues (role ambiguity, apathy) and actions (team-building instead of addressing root causes). Importance of accurate diagnosis and alignment with senior leadership.
Case 19-3 AI in dining services: positive focus, collaborative learning, and scalable training outcomes.

OD = system-wide, behavioral science-informed, data-driven, and continuously evaluated change.
Successful OD requires clear contracting, stakeholder engagement, and transfer of ownership to the organization.
Data collection methods each have benefits and limitations; choose multiple methods to triangulate issues.
Use a balanced mix of interventions aligned with organizational needs and the specific symptoms observed.
Appreciative Inquiry offers an alternative to deficit-based approaches by leveraging strengths to shape future change.

OD is open-systems theory in practice; change effects ripple through the organization.
Action Research Model provides a practical eight-step change roadmap.
The OD professional must balance technical, interpersonal, and consultative capabilities.
Internal vs external consultants each bring advantages and drawbacks; objective perspective vs organizational familiarity.
The Hawthorne Effect is a common consideration when observing behavior in organizations.
AI Five Ds framework: Define, Discover, Dream, Design, Deliver

What are the three differentiating features of OD according to Cummings & Worley (2009)?
List and briefly describe the eight steps of the Action Research Model.
Compare the strengths and weaknesses of internal vs external OD consultants.
Name and describe the four major OD intervention categories.
What is Appreciative Inquiry, and what are its five phases?