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Lecture 2
Organization Renewal:
The Challenge of Change

An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 2
Slide 1

Learning Objectives
• Identify ways organizations use renewing processes.
• Understand and apply sociotechnicalsystems approach.
• Determine the individual and group methods of coping with change.

An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 2
Slide 2

Stage 1 of OD’s 5 Stages

Figure 2.1
An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 2
Slide 3

Pressure for Change
• Market.
• Product.
• Competition.

• Downsizing.
• Flattening structures. • Empowerment.

An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 2
Slide 4

Organization Renewal Adapting to Change
• Organizational renewal important to survival. • Defined as:
– An ongoing process.
– Builds innovation and adaptation.

An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 2
Slide 5

Model of Adaptive Orientation
4 Ways for Organization to Adapt to Change

Figure 2.2
An Experiential Approach to Organization Development 8th edition
Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 2
Slide 6

Environmental stability
Stable environment

Hyperturbulent environment Products

Unchanging basic products and services

Rapidly changing product lines

Competition

Static level

Increasing and changing set of competitors Technological innovation Low level

Rapid and continual

Market growth rate Steady

Rapid