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Organization Development and Change
Chapter Twenty Four:
Organization Development in
Nonindustrial Settings: Health Care, School
Systems, the Public Sector, and Family-Owned Businesses
Thomas G. Cummings
Christopher G. Worley
Learning Objectives
for Chapter Twenty Four

To understand how OD in nonindustrial
settings health care, school systems, the
public sector and family-owned businesses
differs from traditional practice contexts

To examine how OD is practiced in four nontraditional settings
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
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Trends in Health Care

Erosion of comprehensive health insurance and
access to care

Movement to the electronic record

Stabilization of physician-hospital relationships

Growing reliance on philanthropy

Employer support of consumer-directed health
care

Loss of baby-boomer caregivers and managers

Increased need to manage new clinical technology

Quality as a strategic and regulatory imperative
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Organization Development in
Health Care
Consumers are insulated from economics of
health care by insurance providers
 Key providers of care are often not exclusively
employed by one hospital or care setting
 Hospitals are primarily “not for profit” and
heavily regulated by government

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Opportunities for OD Practice
in Health Care Settings
Creating effective Cultures
 High quality, cost effective human resource
systems
 Effective job and work design
 Restoring trust in and among stakeholders

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Success Principles for OD in
Health Care
Demonstrate the relevance of the subject to
strategic performance
 Demonstrate the importance of depth for
sustainability
 Demonstrate Competence
 Facilitate integration among and between the
diverse parts of the system

Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
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Organization Development in
School Systems
Education with industrial-age roots
 Changing Conditions Cause Stress
 Disappointing Reform Efforts
 New Metaphor for Schools

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Future Opportunities for OD
Practice in School Systems
Building Trust
 Setting strategy
 Learning Design
 Collaboration
 Action Research
 Community Engagement
 Leadership

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Technology’s Unique Role
in School OD
 Online learning communities
 Media-based learning
 Gaming
environments
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Trends affecting
Public-Sector Organizations
Federal, state, and local governments
operate in an environment of competing
political, social and economic forces
 Public-sector organizations are called to
become more citizen focused and to
operate as an efficient business

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Values and Structures of
Public-Sector Organizations
Values focus on governing toward
greater public good and to
demonstrating responsiveness to public
wants and needs
 Structures are political-administrative
creating an inherent tension within the
organization

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Characteristics of Public-Sector
Organizations

Multiplicity of decision makers
 Creates difficulty in identifying who is
responsible for different steps in the
governmental process

Stakeholder Access
 Open to the public, diverse groups of people
with different and competing interests

Intergovernmental relations
 Federal, state, and local governments share
power, responsibility and resources
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OD in Public-Sector
Organizations

Focus on technostructural interventions
 Work flow design and structure

Tailor interventions to fit highly diverse,
politicized situations
 Continuous
improvement, customer focus
Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
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Three Systems in
Family-Owned Businesses
Family Statement
Values, Mission,
Vision (Values)
Shareholder’s
Agreement (Laws))
Ownership
Family
Business
Family Business Protocol Policies (Rules)
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The Parallel Planning Processes
Core Values
Family
Family
Commitment
Values
Strategic
Thinking
Shared Future
Vision
Family
Vision
Family
Enterprise
Plan
Formulating
Plans
Management
Philosophy
Strategic
Commitment
Business
Business
Vision
Business
Strategy
Plan
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Critical Issues in
Family Business
Entering or leaving the business as a family
member
 Conflicts and rivalry
 Ownership transfer and estate planning
 Selecting a new leader
 Business growth and family wealth

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OD Interventions in
Family Business Systems

Entering and contracting
 Create a safe emotional environment—trust

Diagnosing the organization
 Confidential interviews of stakeholders

Feedback and planning
 Build good communication practices

Implementing and evaluating change
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