Page 153 - DMGT520_ORGANIZATION_CHANGE_AND_DEVELOPMENT

Organization Change and Development

Notes ''We actually set up two different kinds of reengineering teams, one to come up with the
ideas and the other to test and refine them in the real world. The first team we called the
core team.
As soon as we had a process design, we put the second team, which we called the lab team,
to work. Their job was to test the core team's blueprinted design by using it to process real
orders.
They would try the new process, change it however they liked and then feed their results
back to the core team. Thus, our reengineering program was iterative. The lab team
became, in effect, a prototype for the case team concept that our core team developed. As
a result of reengineering this way, our labor costs have dropped from about $88 million to
$6 million.''

Large-scale Systems Change

Large-scale system change (including organisational transformation) with unextensive OD thrust
typically requires a multiplicity of interventions over an extended time frame. Including:
 A reconceptualisation of the nature of the business;
 The use of a parallel learning structure;

 A reduction in hierarchical levels;
 Team building and Development, including the use of cross-functional teams;
 Survey feedback;

 Extensive use of task forces; and
 Intensive leadership training (Nadler, Ackerman, Porras and Silvers Cummings and
Worley, Weisbord, and others).

Self Assessment

State whether the following statements are true or false:
1. Parallel learning structures have a mandate to deal with complex, non-routine, future-
oriented problems and/or to co-ordinate large-scale systems change.
2. MBO cannot vary on an autocratic-participative continuum.
3. Reengineering as currently conceptualized focuses almost exclusively on streamlining
business processes.
4. Socio-technical Systems (STS) theory is based on joint optimization of the technological
and political systems of organisations.



Case Study The Sundale Club

Background
The Sundale Club is the largest athletic-social club in the city. It has been established for
many years and has a prestigious reputation. Currently, the membership is slightly under
Contd...

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