Professional Documents
Culture Documents
1.3.1 Sources of Knowledge
Accident Relationships
Parasitic Relationships
Mutual Relationships
Transcendental Relationships
Let us now briefly explain each of these;
1.7.1. Accidental Relationship.
This is an association in which no participant
deliberately associates with another, yet from
such an association benefits often accrue to at
least one participant. For example a
man who happens (without planning the
association) to walk down the street of a crime
ridden neighbourhood at the same time with a
policeman is less likely to be hurt or robbed by
his assailants because of his association with
the policeman which occurred merely by
accident. In a business scenario, this can occur
when an executive of a clothing store gets an
idea for a new type of garment from two
1.7.2 Parasitic Relationship
This type of relationship exists when one gains
from an association at the expense of another.
For example a flea gets its nourishment from
its host- a dog, a cat or a human being. In a
business organisation, a parasitic relationship
exists when one organisation as a matter of
policy receives support, advantage or service
from another without payment or proper
return.
At another level, a relationship where work is
extracted for less than appropriate pay is
parasitic. Another parasitic relationship can be
demonstrated by firms which conspire to form
a monopoly and charge unreasonable prices to
1.7.3 One-Way Relationship
In this relationship, one party benefits without
harming or helping the other. The one
providing the benefit indifferently tolerates the
one benefited. Here the relationship is
deliberate at least on the part of the benefited
one. An example is a business organisation
that goes about its normal business while
permitting itself to be observed by a student.
However, for this relationship to be one- way,
the organisation being researched must not
expect any form of benefit- including a copy of
research project.
1.7.4 Mutual Relationship
This relationship is both deliberate and
mutual for both parties. Both parties
expect to benefit from this association.
Most relationships in nature are mutual or
mutually beneficial. In most business
organisations relationships are mutual.
Both expect to make profit. In addition, the
relationship between the organization and
its employees is mutual.
1.7.5 Transcendental Relationship.
This type of relationship calls for much more than
mutual. It requires the participants in the
relationship to aspire for more than their individual
benefit or profit. The participants in a
transcendental relationship aspire for benefits to
accrue not only to him and his partner but also to
other individuals, organisations and society not
directly associated with the relationship. In a
transcendental relationship, a person acts in such
a way that his advantage will also be the other’s
advantage rather than his advantage being other’s
disadvantage. Achieving transcendental
relationships in organisations offers a great
challenge in the human society. Nevertheless the
advantages are great. In nature, transcendental
relationships can be seen in animals when it leaves
its meat (after being satisfied) to others. In the
human society it requires an exceedingly high
degree of personal honesty and responsibility
1.8. Complexity of Organizations
Organizations are complex structures. This is because
they are composed of complex beings in the form of
human beings. Human beings bring their diversity, their
temperament, and their attitudes in to the organization
making quite a complex whole. Human beings are basic
building blocks of organisations. Human beings are
biological rather than machine systems Consequently,
organisations are extremely complex systems far more
complex than other systems. The human organisation
has many characteristics of simpler systems but it also
incorporates new forms of complexity. The sources of
these complexities are characteristics formed in human
groups which include:
Norms and values which are intangible and hard to detect.
Cultural dimensions such as music and art.
System elements (human beings) display awareness.
The structure of elements and roles continuously changes.
Information is processed through abstract forms of
language, symbols and meaning systems.
Informal organizations that are also referred
to as work groups are:
Formed in every formal organisation by its
members.
Parallel to the formal organisation.
Are a shadows of the formal organization .
1.9.1 Why do Informal Organisations Arise?
In almost all organizations informal organizations
exist to serve the following purposes:
To satisfy social needs.
To provide a sense of belonging.
To provide information on approved behaviour.
To provide a sympathetic ear.
Assist individuals in meeting objectives.
To provide opportunity for influence and creativity.
To enable members to perpetuate cultural values.
Provides the members with an additional channel of
communication.
Provides satisfaction and stability to members.
Compensates for managerial limitations.
1.9.2 Comparison of Informal and the Formal
Organisation.
Goals. The informal organisation also has goals that could
either be congruent to those of the formal organisation
or not.
Norms. A norm is a standard of behaviour expected from
group members. Formal groups have norms and so do
informal groups. However, the pressure to conform
to the informal group member’s norms is greater.
Role. A role consists of the total pattern of expected
behaviour. In the formal are to organisation, it includes
but goes beyond the official content of the job
a large description. Informal group members are also
expected to have a role. Whether or not the informal
group supports the role of group members, has a major
impact on the role of members in the formal group.
Leadership. In the formal organisation leaders (or
managers) are appointed. The formal group leaders
emerge from the group; there is no formal title attached
to the individual.
Structure. A formal organisation has a structure- an
organisational chart,
hierarchical and horizontal differentiation and formal
coordinating mechanisms.
2.1 Introduction
In this lecture we shall trace the
development of organization theory from
the pre classical period to the present. We
shall discuss the classical theories then the
neo classical theories after which we shall
briefly touch on some modern theories and
principles of managing organizations
2.3 Pre-classical Period
Scientific Management focuses its unit of analysis on the
physical activities of work.
Scientific management deals with the relationship of a worker
and his or her work. Thus,
this lays emphasis on man-machine relationships with the
objective of improving
performance of routine, repetitive production tasks.
Scientific management advocates for an empirical detailed study
of each job to determine
how it could be done most efficiently
The basic assumptions of scientific management
theory are:
Improved results in organizations will come from the
application of the
scientific methods of analysis to organizational
problems. In other words,
the scientific management approach holds that
scientific solutions to
problems of management of organizations are
superior to those of other
approaches.
Scientific management focuses primarily on work
itself and not on the
particular person doing the work.
Each worker is assumed to be a classical economic
man-interested in
maximizing his monetary income. The
The basic principles of scientific management as
expounded by Fredrick W. Taylor are as follows:
Develop a science for each element of man’s work in
order to maximize the
organizations output.
Scientifically select and then train, teach and
develop the worker.
Management should heartily cooperate with the
workers so as to ensure all the work is being done
in accordance with the principles of science.
There is almost equal division of the work and
responsibility between management and the
workers. The management should take over all
work for which they are better fitted than the
workers, and the workers should do the work for
which they are better fitted.
Application of the piece rate
principle
: This is the principle by which workers are paid
by piece rates on the basis of standards set by
motion and time studies rather than on other
basis. Piece rates are effective in motivating
workers.
Tailor’s piece rate system was called the
differential piece rate system. Under this
system, workers were paid a low piece rate up
to a standard (a standard was based on a first
class man performing under average
conditions). At higher levels of output the
worker was paid a higher rate.
Tailor’s recommendations were designed to
reduce the inefficiencies and the wastefulness
of the past through practicing scientific rather
than rule of thumb
2.4.4. Comparison of the Classical Theories
The theories were mainly developed during the early
part of the 20Th
century.
The three streams were formed on similar
assumptions about organizations - organizations
as a structure of relationships of human beings
with goals, objectives, roles, activities, power etc
that exist when persons work together.
Their main goal was to find out what needs to be
made to organization
structures and relationships to improve efficiency
in the organizations.
They considered the environment to be either static
or to have an
insignificant role in organizational efficiency
However the three approaches had the
following dissimilarities:
They were developed by separate groups of writers
working totally
independently of each other:
Bureaucracy developed mainly by sociologists who
generally took a
scholarly point of view.
Administrative theory and scientific management
developed by writers who were practicing
managers; they were not merely content at
describing organizations; they prescribed practical
purposes for better organizational performances.
Administrative theories focused on overall relatively
macro aspects of levels organizations. The
scientific management theory looked at the micro
aspects — the worker, and the foreman.
Bureaucracy also looked at the macro aspects of
2.4.5 Evaluation of the Classical Theories
The Administrative theory
The principles of administration as postulated by
Henri Fayol fail to be universal truths.
The principles lack scientific derivation and
verification.
The administrative theory is power centered. It
is thus in philosophical conflict with those who
desire limited individualism.
Administrative theory suffers from the
dysfunctions of bureaucracy such as
lion rigidity, impersonality, and excessive
categorization.
Administrative theory suffers from superficiality,
oversimplification and lack of realism. It is
satisfied with theoretical rather than actual.
However, as a theory of organization, the
Administrative theory is critical because:
(i) It recognizes the need for:
Specialization
Unity of command
Discipline
Separation of individual and organization
interest.
(ii) It also introduces essential principles that
even today lead to organization
efficiency.
The theory of bureaucracy
the organisation.
Tell what the organisation is actually trying to do regardless of what the
official goals say are the aims.
Describe desired operational activities and are often concerned with the
short run
Operative goals designate the end results sought through the actual
operating procedures of the organization and explain what the
organization is actually trying to do. Operative
goals describe specific measurable outcomes and are often concerned
with the short run. Operative goals represent actual goals, while
official goals represent stated goals.
Operative goals pertain to the primary tasks an organization must
perform. These goals concern overall performance, boundary
spanning, and maintenance, adaptation, and production activities
3.5 Types of Goals
Means-Ends Chain
Once specific courses of action are chosen for attaining agreed upon goals, subsequent
decisions must be made to complete what is called the means-ends chain or hierarchy.
That is, given the limited or bounded rationality of individual decision markets, and the
fact that both goals and means at the highest level of an organization are often both
complex and abstract, it becomes necessary to divide ultimate goals into sub goals for
participants at lower organizational levels. In other words, what are means intended to
contribute to the accomplishment of ends articulated at the highest level become ends in
themselves for individuals at the second level of organizations. These ends in turn are
translated into specific means and are parceled out to people at the third level who treat what
are means for the second level as ends of themselves. Though the elaboration of
chains, non-operational organizational chains, non-operational organizational goals are
eventually transformed into very specific routines of behavior for people at the lowest
level.
3.8. Measuring Goal
Efficiency and Effectiveness
Table 2: Stakeholder and its criterion
Stakeholder Effectiveness Criteria
Owners Financial return
Employees Work satisfaction, pay
Customers Quality goods and services
Creditors Creditworthiness
Community Contribution to community affairs
Suppliers Satisfactory transactions
Government Obedience to laws tax payment
Shortcomings of using the
stakeholder approach
4.1 Introduction
In this lecture we shall define a system and
discuss the importance of looking at
organizations as open or closed systems.
We shall also discuss the disadvantages of
looking at organization as closed or open
systems.
4.3 Definition of a System
Subsystems are a group of functioning elements within a larger system. They are in fact
systems within a larger system. The determination of subsystems depends on the desired level of abstraction at
a given time for a desired type of analysis. If we are concerned
with analysing the University Of Nairobi as a system, we can break it into colleges as subsystems. If we want to
analyse the College of Humanities as a system, we can break it
into faculties and consider them as subsystems and so on. Thus, all systems can be considered as subsystems
and every sub system can be considered as a system depending on the level of analysis desired. In the case of
organisations, we are interested in looking
at an organisation as a system composed of subsystems (departments).
System
subsystem
subsystem
University of Nairobi
College of Humanities and Social Sciences
College of Physical and Biological Sciences
College of Architecture and Engineering
Faculty of Commerce
Faculty of law
Faculty of Arts
4.4.1 Organisation Subsystems.
The sub-systems perform the specific functions required for organisational survival.
Each sub-system is a system on its own because it has a boundary and absorbs
inputs from other sub-systems and transforms them into outputs for use by the
remainder of the organisation. The organisational sub-systems can be divided
into the following functional sub-systems:
Production sub-system: this subsystem is responsible for producing the product
and service output of the organisation. This is where the primary transformation
takes place. In a manufacturing firm, the production subsystem is the
production department. In a university, it is a teaching department. In a brewing
company it’s the department that actually produces beer.
Boundary spanning: the boundary spanning subsystems
handle transactions
at organisational boundaries. They are responsible for
exchange with the environment on both the input and the
output sides. The boundary spanning
subsystems acquire the needed supplies and materials. On
the output side,
they create demands and deliver outputs. On the input side
they provide inputs
to the organization Boundary spanning subsystems work
directly with the
external environment. In a beer manufacturing company, the
boundary
subsystem includes the marketing department on the output
side and the
purchasing department on the input side.
Maintenance subsystem: this is a
subsystem responsible for the smooth
operation and upkeep of the organisation.
The maintenance subsystem includes
cleaning and painting of buildings and
maintenance of machines. Maintenance
subsystem also includes departments,
which take care of human needs such as
morale, compensation and physical
comfort. Such departments include
personnel, salaries, and cafeteria e.t.c
The adaptation subsystem: This is the subsystem
responsible for the organisationalchange. It scans
the organization’s environment for problems,
opportunities, threats and technological
developments and provides
appropriate recommendations to the organisation.
It is also responsible for providing information and
helping the organisation to change and adapt. In a
manufacturing organisation, the adaptation
subsystem includes such
departments as marketing research, Research and
Development and corporate planning.
The management subsystem: this subsystem is
responsible for directing the
other subsystems of the organisation. It provides
direction, establishes
strategy, goals and policies for the whole
organisation. The subsystem also
coordinates the performance and activities for the
other subsystems and
resolves conflicts between them. It is also
responsible for developing
organisation structure and directing tasks within
each subsystem. This subsystem consists of the
top management team in an organisation.
4.4.2 Advantages of the Systems Approach.
Its holism approach enables one to consider the organisation as a whole.
This clearly emphasises the interdependence of the parts of the
system.
The approach allows the student or manager to clearly comprehend the
various concepts, ideas, or elements and their relationships.
The approach also allows for model building, which makes presentations
of ideas easier. The diagrammatic presentation makes the
understanding of
the relationship easier not only to understand but also to build up
models
to help in empirical research and hypothesis generation and testing.
The approach also allows for quantifications of relationships between
elements in the system.
It enables managers to view their jobs as parts of a system, not as static
isolated elements
4.4.2 Advantages of the Systems Approach.
Its holism approach enables one to consider the organisation as a whole.
This clearly emphasises the interdependence of the parts of the
system.
The approach allows the student or manager to clearly comprehend the
various concepts, ideas, or elements and their relationships.
The approach also allows for model building, which makes presentations
of ideas easier. The diagrammatic presentation makes the
understanding of
the relationship easier not only to understand but also to build up
models
to help in empirical research and hypothesis generation and testing.
The approach also allows for quantifications of relationships between
elements in the system.
It enables managers to view their jobs as parts of a system, not as static
isolated elements
4.4.3. Disadvantages of the Systems Approach.
There is a tendency for some students and practitioners
who apply the system approach to
advocate for a more centralised administrative
structure in organisation. That is looking
at the organisation as a whole may tempt one to
concentrate decision-making power at
the top of the organisation with little delegation if any.
The systems approach tends to oversimplify
organizational relationships. Relying exclusively on
these models at the expense of managerial judgment
and experience can
lead to dysfunctional consequences.
4.5. Closed and Open
Systems
4.5.1. Closed System
A closed system would not depend on its environment
A closed system would be autonomous, enclosed or sealed off from the
outside world.
Although a closed system would not exist since it would die due to entropy, the classical theorists
looked at organizations as closed systems because they focused on internal systems. This is
because they took the environment for granted and assumed that the organizations could be
made more effective only through internal design. They assumed that the environment was
stable and predictable and did not affect the organization.
Does not depend on its environment
Does not interact with its environment
It is enclosed and sealed off from its environment
It has all the energy it needs.
Assumes the environment is static and has no effect on the organisation.
Assumes that the only thing that matters is internal structure and design, which can be
effectively structured by management.
a) Advantages of looking at organizations as closed
systems:
Some managers treat their organisations as closed systems.
The classical theorists treated organisations as closed systems.
As a basis of theory building, one can conceptualise the
organisation as a closed system to enable more
understanding.
b) Disadvantages:
No organisation is a closed system.
This approach ignores the importance of the external
environment in
affecting the organization
4.5.2 Open System
An open system:
Interacts with its environment to survive.
To survive, it must continuously change and adapt to the environmental
changes.
It must correctly interpret and act on the changes happening to its environment.
It must also control and coordinate its internal activities in the face of
environmental disturbances and uncertainty.
The need for input from the environment and the need to export its output into
the environment denote an interdependence relationship between an
organisation and its environment.
It both consumes resources from and exports resources to the environment. for
It cannot seal itself off from its environment. It must deal continuously with
its environment. At the same time, it must also deal with internal efficiency as
well as interact and act on the environmental changes.
It must sell its output in the environment, coordinate its internal activities, and
deal with environmental changes and uncertainties.
All systems that must deal with their external environments to survive are
open systems. Human beings are open systems. The University of Nairobi is
an open system.
It must correctly interpret and act on the changes happening in its environment
At the same time it must control, structure and coordinate its internal
environment to take account of changes in the external environment.
a) Advantages of looking at organizations as open
system:
Enables us to see the dependence of the organisation on
the environment
Enables us to understand the inter-relationship between
the organisation and the environment.
b) Disadvantages
Tends to ignore the role of management behaviour and
decision- making, capacity to make the organisation
efficient.
It ignores the importance of the internal environment to
the organisation’s efficiency and effectiveness.
4.6. Input — Output Analysis
of a System
There are many kinds of systems with their own subsystems. The human being is
one of them, but it is the most complex because it:
Is alive- it has life.
It can think, plan and remember.
Is aware of its surroundings.
Is also aware of itself.
Have attitudes, moods, feelings and norms.
You can also proceed to a higher and more complex system,
vi. The organization as a system. It is composed of human beings and
consequently transforms the complexity of the human system many times over.
The complexities of social system arise from:
Complexities of the human system.
The norms and values of human beings, which are intangible and hard to detect.
Cultural dimensions of human beings, which are even harder to identify.
The fact that these norms, values and cultures are constantly changing.
Thus the social system (the organisation) requires extra training to be understood, manage and
change. Other systems include :( from the simplest to the most complex).
5.1 Introduction
In this lecture we shall define organization structure and design and
discuss the structural and contextual dimensions of organizations.
5.3 Meaning of Organization Structure and Design
An organisation design is defined as a structure and a process through
which individuals allocate tasks among members, identify
relationships and integrate their activities towards common objectives.
It includes
Allocation of tasks and responsibilities between the different members of
the organization
Differentiating these tasks and activities into groups and departments
Differentiating the tasks and responsibilities into hierarchies and
locations
Establishing coordination mechanisms to integrate the different groups,
and
hierarchies into a unitary whole.
Organisation structure may
also mean the following
:
The way the organisation is differentiated into
various tasks and responsibilities.
The way the tasks and responsibilities are allocated
to the various members of the organisation.
The way the organisation is differentiated into
hierarchies.
The way the organisation is differentiated into
different locations.
The way the different responsibilities, tasks and
locations are coordinated or integrated into a
unitary whole
5.4. Dimensions of
Organization Structure
6.1 Introduction
In this lecture we shall define organisational
environment as the elements outside the
boundary of the organization which affect
or have the potential to affect the
organisation. We will also discuss the
various environmental sector facing
organizations such as political/ legal,
economic, industry and others.
6.3 Definition of Organization’s External Environment
Organizational environment refers to all the elements existing
outside the boundary of the organization that have the
potential to affect all or part of the organization. In a broad
sense, the environment is infinite and includes everything
outside the organization. It
consists of sectors such as
Raw material - these are individuals and other firms which
supply the
organization with raw materials
Human resources - these are organizations which supply the
organization
with human resources
Financial Resources - these are conditions, competitiveness,
institutions
and instruments which supply the organization with financial
resources
Customer or Market - this sector includes the customers who purchase
7.1. Introduction
In this Lecture we shall define organizational
technology and technology typology and
discuss its importance to the efficiency and
effectiveness of organizations. We shall also
discuss the various technology typologies such
as technical complexity, task interdependence
and knowledge analyzability and analyzability.
7.3 What is Technology?
The initial study of data found that firms varied widely in such
things as span of control, number of hierarchical levels,
administrative ratio and amount of verbal communications.
Thus her data did not show any proof to the “one best way”
principle of management.
However a further look and analysis of the data and
information showed a relationship between organization
structure and technology. Woodward developed a scale and
organized the firms according to technical complexity of the
manufacturing processes. Technical complexity represented
the mechanization and predictability of the manufacturing
process. Her scale had ten categories that were grouped into
three production types as summarized in Annex 1 attached
and discussed below.
Group 1: Small Batch and Unit
Production
Group 11: Large Batch and
Mass Production
7.5.2 James Thompson’s Task Interdependence
Another pioneer in the technology- typology arena
was James Thompson. Unlike Woodward’s,
Thompson’s work was not based on field research.
His contribution was theoretical he drew from a
variety of sources and proposed new ideas and
frameworks about organizations. In Thompson’s
view, organizations are open systems and
technology reflects the environment outside the
organization as well as internal task activities. He
proposed three categories of technology that
reflect relationships with clients as well as internal
transformation process. These categories are
Mediating or pooled
technology
: Mediating technology involves the mediation
or linking of clients with the external
environment. Typically these clients cannot
deal with each other directly because of costs
or complexities involved in face to face
transactions. A stockbroker for example
mediates between sellers and buyers. So does
a real estate firm. Employment agencies bring
together clients who are jobless with clients
who have job openings. Banks and retail stores
also mediate between clients in the
environment.
Long Linked or sequential
Technology
: the concept of long-linked technology refers to the combination
in one organization of successive stages of production, each
stage of production uses as its inputs the production of the
preceding stage and produces inputs for the following stage.
Organizational activities occur in sequence in long linked
technologies: the output of operation 1 becomes the input of
operation 2, the output of operation 2 becomes the input of
operation 3 and the finished product is then available to
customers. Large-scale organizations that use assembly-line
production to produce goods or services through a sequence
of activities as in the automobile industry are examples of
long linked technologies.
Intensive or reciprocal
Technology
: intensive technologies are characterized by the
collection of specialized services for clients. A
variety of activities can be brought to bear on the
client and have substantial impact on the client.
Intensive technologies generally go beyond
providing a simple service and are designed to
bring about change in the client. Hospitals are an
excellent example because they represent a
collection of specialized skills to bring about
therapeutic change in patients. A university is
another example — a wide variety of disciplines
and support services are available to facilitate
educational development of students. Figure 7.1
illustrates the three types of technology typologies
by Thompson.
Evaluation of Thompson’s
work
8.3. What is Organizational
Change?
There are THREE processes of
organizational change frequently
encountered in
vices, management. These are:
The three phase process by Kurt Lewis
The four phases process by Mint berg
The six phase process by Greiner
8.6.1 Kurt Lewis’s Three Phase Process
Forces resisting change — maintaining stability
Equilibrium
Process for change
Proposes that every human grouping has some forces within it which help keep it in
balance and provide it with stability. On the one hand there are forces that force it to
e may maintain stability and others which provide it with a reason to change (the force -field
theory)
Equilibrium
Field force theory
all behavior is the result of an equilibrium between the two sets of opposing forces (driving forces
and restraining forces)
Driving forces: push one way to attempt to bring about change
Restraining forces: push the other way in order to maintain the status quo
Lewis suggests that the best way to implement change is to use a three
—step approach to change the behavior of those opposing the change
as follows.
Step 1: Unfreezing existing behavior by persuading and convincing
those with restraining force
Step 2: - Changing Behavior by Adopting new Attitudes
implementing the changes
use of a change agent
Step 3: Refreezing - reinforcing continuously convincing the
organizational members that change is not only necessary and
desirable, but inevitable. This can be consolidated by various support
mechanisms such as encouragement, participative management
styles etc.
8.6.2. Mint Berg’s Four Phase Change Process
Mint berg identifies a four-phase process of change as follows;
Stage 1: Identification of the need for change
During the first phase of the change process management identifies
the need for change
Stage 2: Identification of the alternatives
In the second phase management identifies the various alternatives of
implementing the change
Stage 3: Evaluation of the various alternatives
In this phase the various alternatives are evaluated using a given criteria
and the most efficient alternative is selected for implementation
Stage 4: Implementation
During this phase change is implemented
8.6.3 Greiner’s Six Phase Change Process
Greiner identified six phases common to successful change efforts each involving a
stimulus to the power structure and a reaction from the power structure of an
organization. A general overview of this process is discussed here below.
Phase 1: Pressure and Arousal: The process begins as a result of pressure
on top management. These pressures may arise either externally or internally.
In successful changes, the result is the same — arousal to take action.
Phase 2: Intervention and Reorientation: Arousal in itself does not
automatically ensure proper response. It is quite likely that top managers will be
tempted to see
problems as temporary or to blame them on other things. As a consequence,
successful
change typically involves intervention by an outsider. It is important that this
individual
be known for his improvements and that he or she enters an organisation at the
top or as a consultant who reports directly to the highest level of management.
Phase 3: Diagnosis and Recognition: This phase is characterized by a shared
approach to power as the newcomer, with top management support and active
personal involvement, engages members at several lower levels in
collaborative, fact finding,
for problem solving discussion in order to recognize and diagnose current and
potential organizational problems, as well as to reduce any anticipated
opposition.
Phase 4: Invention and Commitment: During this phase, attention switches
to the
invention of new solutions capable of generating sustained commitment to new
courses
of action. As in previous phase, the newcomer plays an active role, involving all
management levels in developing new ideas and methods for solving problems
and taking action. Solutions are based on shared power, emphasizing
participation in the invention
the of group solutions to the problems identified in phase 3. Such collaboration
has been shown to be particularly effective in developing quality solutions and
sustained commitment to action.
Phase 5: Experimentation and Search: In this phase solutions identified in
phase 4 are tested for credibility on a small scale before they are introduced on
a companywide basis.
In addition, the method previously used to generate solutions (interaction
and shared power) is carefully evaluated. Further, rather than implementing
major changes at the top,
numerous small changes are introduced at all organizational levels on an
experimental
basis.
Phase 6: Reinforcement and Acceptance: This last phase is an outgrowth of
the acceptance and internalization of change as previously experienced. As
change is found
to be successful, and as participants support grows, it is introduced on a much
larger scale, ultimately being absorbed into all parts of an organization.
Accordingly, this phase
involves reinforcement from positive results, leading in due course to an
acceptance of new practices. Greiner suggests that apart from the change
itself, the most significant outcome of this phase is greater acceptance at all
organizational levels of the use of shared power as an approach for introducing
change.
8.7 Additional Aspects of
Successful Change
Need: A need for change occurs when managers are dissatisfied with
current performance.
Idea: An idea is a new way of doing things. The idea may be a model,
concept or plan that can be implemented by the organization. The
idea may be a new product, a new machine, or a new technique for
managing employees.
Proposal: A proposal occurs when someone within the organization
requests the adoption of a new behavior, idea, or technique. The
proposal gives the organization the opportunity to decide if it wants to
try the change.
Decision to Adopt: A decision occurs when the
organization makes a choice to adopt the
proposed change.
Resources: Human force and activity are
required to bring about change. Change
requires resources. Change does not happen
on its own. In order for a change to be
successfully proposed and implemented,
resources must be allocated to it.
8.8. Principles of Successful
Organizational Change
Margulies and Wallace drawing on an in-depth analysis of
techniques and applications of organizational change offer
several guiding propositions on successful organizational
change
Proposition 1: planned change efforts are much more likely
to be successful if initiated and supported by the top
management of an organization.
Proposition 2: Changes will flow most smoothly when those
who will be affected are all brought into the process at the
earliest possible stage.
Proposition 3: Successful changes require time and repeated
effort. That is, before new
becoming successfully incorporated as an ongoing part of
organizational life, a change effort will typically require
reinforcement over some period of time.
Proposition 4: A successful change requires careful
monitoring to secure accurate with
feedback concerning intended outcomes. No matter
how good a job one does of initially
selecting a change strategy and facts, something-
unexpected will eventually occur during
implementation. Only by carefully monitoring the
process can one identify the
unexpected in a timely fashion and react to it
intelligently.
Dealing with Resistance to
Change
8.9.1 Resistance to Change
Although change is a universal and an inevitable phenomenon, it rarely occurs in a
smooth, balanced fashion. Resistance to change is a frequent and natural
occurrence. The
paragraphs that follow discuss four of the most common reasons for resisting
change.
the members. It also enables managers discover and develop tested principles
and
improved methods of human relations training.
Sensitivity training is arranged usually away from the job, no activities or
discussion topics are planned and the focus is on the here and now issues. The
participants are encouraged to portray themselves in the group rather than in
terms of past experiences or future problems. The consultant or trainer sees to
it that an environment of mutual trust, understanding and frankness is created
(iv) The Managerial Grid
This method is used to bring about change in employees’ attitudes and
values.
The technique was developed by two gentlemen Blake and Moulton.
The basic
objective of the program is to develop managers with a high concern
for people and high concern for production. The program is carried out
in six phases:
Phase 1: Consists of seminal training in a one-week conference where
managers study the theory of managerial effectiveness.
Phase II: The manager implements a climate of openness developed
in phase I
Phase III: The experiences of phase II are extended to include the
interrelationship of related organizational units
Phase IV: Top management works with other groups
to develop an ideal model of employee
management relationship.
Phase V: During this phase tactics are developed
of moving the company to the ideal organizational
model development in phase IV.
Phase VI: The achievement of phases I-V is
evaluated with the objective of identifying
weaknesses and taking corrective actions as
necessary.
Therefore O.D is a strategy of improving organizational
effectiveness by means of behavioural science approaches
involving the application of diagnostic and problem solving
skills by an external consultant in collaboration with the
organizations management. It is an organization wide process
that utilizes the techniques and approaches of the behavioural
sciences i.e. psychology, social psychology and sociology in so
far as they relate to the study at work in organizations. It
involves the intervention of an external third party in the
shape of a change agent trained and experienced in
behavioural science applications in the work situation. It is
aimed at organizational effectiveness, not just changing
people or structures for the sake of change. The change agent
and the organization must adopt a collaborative relationship
— which means being open with one another, having a high
degree of trust, and being prepared to work through conflict in
a constructive way.
Role of the Change Agent
The following are the qualities of a good third party in an O.D process
Intellect and personality, in particular the ability to listen diagnostically,
and to apply rational approaches to problems and situations.
Mature outlook in terms of awareness, and acceptance of personal
strengths and
weakness.
A preference for interpersonal relations based on mutual trust and liking,
for
teamwork rather than competitiveness and for conflict to be handled
openly and
constructively.
Must have basic understanding of behavioral science knowledge and
more
generally, intervening skills, presentation skills and ability to establish
and
ion maintain comfortable relationships with a wide cross-section of
people.
8.11.2 Benefits of an O.D Program
It enables an organization to adopt to change in a way that obtains the
full
commitment of the employees concerned.
It can lead to organizational structures that facilitate employee co-
operation and the achievements of task.
It releases latent energy and credibility in the organization.
It can improve understanding of organizational objectives by employees
It can improve decision making processes and skills.
It provides opportunities for management development in the context of
real
organizational problems
It may stimulate more creative approaches to problem solving
throughout the
organization.
It usually increases the ability to management groups to work as teams.
8.11.3 Principles of Implementing an O.D Program
Successfully.
create and sustain a sense of urgency about the future
create and empower a leadership team (a guiding coalition)
develop a vision and a strategy for achieving it
constantly communicate the new vision.
Empower employees to help the change happen by removing
obstacles such 8 12 as restrictive structure, lack of necessary
skills, inflexible managers, and
unimaginative reward systems.
Generating some benefits in the short term so that people can
see some
tangible improvements on the way to achieving the end goal
Consolidating short gains
Embedding the new approaches in the organizations culture.
8.12. Business Process Re-
engineering (bpr)
8.12.1. What does BPR Involve?
BPR is a strategic approach to organizational change where the entire business
architecture of the, enterprise is restructured. It is a fundamental rethinking and a radical
redesign of business processes to achieve dramatic improvements in critical
contemporary measures of performance, such as quality, cost, service and speed. BPR is
vital, under modem conditions of customer expectations, intense competition and the
pervasive nature of change. BPR processes include all the collection of activities that take
one or more kinds of inputs and creates an output that is of value to the customer. Typical
processes include ordering, buying, manufacturing, product development, delivery,
invoicing. The reengineering process tends to lead to the following changes in the way
work is undertaken:
Several jobs or tasks becoming combined with related tasks.
Workers become more involved in decision making (empowerment increase)
The various steps in a process being performed in accordance with the needs of the next process rather than in some
pre-determined linear form.
Processes having several versions to deal with differing customer requirements
Work is performed where it makes most sense.
A reduction in the number of checks and controls insisted on during the process.
The minimization of reconciliations (e.g. of orders) between customers and suppliers.
A single point of contact with the customer
Hybrid centralized / decentralized operations prevail.
8.12.2. The Structural Changes Likely in a BPR
These are
Work structures move away from functional departments towards process
some teams.
Employees are empowered to act in ways that were previously controlled by rules
Empowerment implies a willingness and an ability to accept greater responsibility for work outcomes
Preparation for work implies a greater emphasis on education (i.e to understand the why) rather than on training
(understanding the how)
The focus for performance and payment shifts from activities to results
radical (expressed in terms of value created for the customers).
Advancement within the organization is more likely to be based on the
ability to undertake the work rather than on performance in the current job.
A culture change will occur in which the typical employee will see the
hat take customer as more important than the boss.
Organizational structures are likely to become flatter and bureaucracies less
critical.
Senior executives assume the role of culture leaders than financial score
cards
The role of IT (Information Technology) will be vital in facilitating the reengineering process. The personal computer,
the photocopies, the fax machine,
e -mail, and the mobile phones, all show the importance of IT in facilitating the BPR processes.
8.12.3. The Shortcomings of the BPR
BPR has been challenged on the following grounds:
Much of what passes as BPR is not so much of process
engineering, but process simplification, is process led
rather than vision led, is not revolutionary just an
improvement of existing systems, and works with
existing systems rather than challenging them.
BPR as practiced makes people work harder, than smarter
It is used as a tool of downsizing
Hence people become victims rather than beneficiaries
The drive to please the customer rather than the boss can
lead to dysfunctional consequences to the organization.
8.13. Ambidextrous Approach
to Organizational Change
8.13.1 Meaning
In an ambidextrous approach to change, the
change agent incorporates structures and
management processes that are appropriate
to both the creation and the use of the idea of
change. For example the organization can
behave in an organic way (or create organic
structures) during the innovation and creation
of new ideas, and then adopt mechanistic
structures when the change is being
implemented.
8.13.2 Justification
Organic structures such as decentralization
and low formalization encourage creativity
and innovation. On the other hand,
mechanistic structures such as high
centralization and high formalization stifle
creativity, with emphasis on rules,
procedures and regulation but results in
efficiency and effectiveness.
8.13.3 Techniques for Encouraging Ambidextrous Change in
Technology Change
Switching structures: This means that an organization creates an
organic
in structure when such structure is intended for the innovation of new
ideas, and
reverts to mechanistic structures during the implementation of the
changes.
Creative departments: In some organizations, the creation of new
ideas is
assigned to separate departments for adoption by other departments.
Departments that initiate change are organically structured to
facilitate generation of new ideas and techniques. Departments that
are supposed to implement those changes tend to have mechanistic
structures so as to achieve efficiency in the implementation.
Venture teams: These teams encourage creativity. The
teams are often given a separate location and facilities
so that they are not constrained by organizational
procedures. The teams may be given total license to
establish new venture projects for any department.
New venture fund: A fund is created to provide financial
resources for employees who can develop new ideas,
products or business. Employees are given leave and
resources to go out of the organization and create new
business opportunities for the organization. Employees
can also use company labs and equipment to develop a
business idea. If the idea is successful, the company
can provide the necessary financial resources to start
-up the business.
Corporate entrepreneurship: Here the
company attempts to develop internal
entrepreneurial spirit, philosophy, and
structures that will produce a higher than
average number of innovations
ORGANIZATION CULTURE
9.1 Introduction
In this lecture we shall explain the meaning
of culture, its importance and its
dimensions. We shall also discuss the
relationship between culture and also
propose methodologies of increasing
culture in an organization.
9.3 Meaning of Culture
ORGANIZATIONAL GROWTH
AND DECLINE
10.1. Introduction
In this chapter, we are going to define size,
growth and decline. We also discuss two
models of organizational growth and
propose strategies for dealing with decline.
10.3 What is Organization
Size?
Organizational
Authority
is a form of power which is prescribed by the
formal hierarchy and reporting
relationships. Authority has three
properties viz;
It is vested in organizational positions
It is accepted by subordinates
It flows down the vertical hierarchy.
Vertical Sources of Power
Power exerts strong effects upon those who hold it and those over whom it is
exercised
In addition power affects a wide range of key organizational processes. An
example o
such processes is negotiation. The most obvious way in which power can affect
negotiations is through differential possession of this capacity in opposing sides.
To the extent one party to negotiations has an advantage in this respect it can
shape the course of the exchange, and obtain an agreement favorable to itself.
Another way in which power can affect negotiations concerns the relationship
between negotiators and their constituents — the people they represent. If the
persons representing an organization in a beginning situation are low in power,
they will have to answer for their actions during negotiations. As a result they
may feel constrained, and adopt cautious or defensive strategy. In contrast, if
negotiators are high in power, they will be protected from such censure and
may feel free to choose a more flexible and open approach. The result is that
negotiations involving high power representatives from both sides may be more
successful and more efficient than negotiations between persons of lower
power.
11.5. Organizational Politics
People gain and exercise power in organizations in many ways. Among
them includes:
(i) Coalitions — forming the right alliances
This involves joining forces with persons or groups who have something
to contribute and who can be relied upon. To get such a group or
persons requires search.
(ii) Choosing a powerful mentor
Having an experienced and powerful mentor is beneficial to the group or
individual seeking this relationship and can be an effective tactic for
acquiring power and reaching important goals. Since there are many
more would be protégés than there are openings for them,
competition in this regard can be intense:. However, given the
substantial benefits yielded by the protection and guidance of a
powerful mentor, efforts to establish such a relationship are well
worthwhile
(ii) Projecting the right image
This includes demonstrating a high level of competence,
adopting a co-operative attitude and displaying good
behavior. For this reason, polishing one’s image often yields
valuable dividends where organizational politics is concerned.
In fact, the old adage “nothing succeeds like success” is very
applicable to organizational politics.
(iv) Establishing control over access to information
This is another highly effective tactic for gaining power that can
be used both by individuals and by groups. This involves
gaining control over vital information. Since information is the
life blood of organizations, any one who can control its flow or
access to it, acquires considerable power.
(v) Co-optation — neutralizing opponents
This tactic involves bringing people whose support is desired and
who currently stand in the group’s way into the fold. Once
they are made part of the group they become part of it,
subject to its norms, and often adopt its values and goals.
(vi) The use reciprocity
A guiding principle of all human relations- whether between
individuals or groups
— seems to be reciprocity. In general people treat others as
they have been treated previously. By doing favors to others,
or supporting them against opponents, it is possible to place
them in one’s debt, then at appropriate times (when their
assistance is needed most) reciprocity can be invoked and
requests for repayment made.
vii) The use of ‘dirty tricks’
This refers to strategies that most people view as deceitful,
underhanded and dishonest — ones that violate the ethical
principles of human beings. Included among dirty tricks are
such steps as:
Falsely attributing blame for negative outcomes to others
(holding them responsible for events they did not produce).
Announcing one agenda for meetings, but then following a
totally different hidden one thus preventing opponents from
being adequately prepared.
Restricting the flow of information to others or providing them
with “misleading facts”.
Spreading false rumors about their personal lives, lack of
commitment to the organization etc.
on the Ethics of
Organizational Politics
Conflict refers to the interactive, opposing behaviors between
two or more people, groups or larger social systems having
incompatible goals. Conflict is usually experienced as
troublesome if not disruptive. Conflict ranges form
disagreements, debates, to physical confrontation, murder,
and or annihilations (elimination) i.e. can be presented in the
form of a continuum) Conflict may be overt or covert,
perceived or actual, non-verbal or verbal, active or passive,
manifest or latent.
There are five levels of conflict:
Level I Intra-individual conflict
Level II Inter personal conflict
Level III Inter group conflict
Level IV Organizational conflict
Level V Conflict between larger social systems
12.2 Objectives
What is intra-individual
conflict
The following things happen to the winning group after the context is order
The winning group tends to be joyful, self-congratulatory, and reveal in the glow of
victory.
The role of the leader(s) is enhanced. Leaders are congratulated, their status is
enhanced, and group members are even more willing to follow
their leaders in the future.
The wining group becomes complacent. Characteristically the winners bask in their
success and do not critique their performance. They do not examine in what
respects their performance might improve for future situations. They become
fat and happy.
The winning group has little empathy for the losers. The winners typically cannot
understand why the defeated group is so defensive and sullen. Further they
cannot understand why the other group takes the matter so seriously.
12.8 What Happens to the
Losing Group?
Dysfunctional Consequences
of Competition
12.10.1 Functional Consequences of Competition
Competition encourages creativity, lowering of prices, and
quality production. Within groups, it encourages effectiveness
and efficiency. Within larger social systems, it encourages
creativity, innovation and effectiveness. Competition
therefore:
promotes and encourages creativity and innovation
clarifies differences between people or groups
motivates
increases group solidarity
after the win, may result in group friendship and cooperation
Dysfunctional Consequences of competition may
lead to the:
development of a we versus they attitudes
distorted perceptions and judgment about the other
groups
each group sees the other as an enemy
misinformation about the other group
the wining group might become complacent
the loosing group might become gloomy leading to
loss of morale and drive
Dysfunctional Consequences
of Cooperation
The main reason is that the goals sought by the groups or individuals
cannot be shared for example if two people are seeking the same
promotion, they cannot cooperate to attain it. In many cases
therefore, competition or conflict is the result.
• The other reason is that many valued goals in organizations (e.g.
status, power promotions etc,) are in short supply and are sought by
many more persons or units than can hope to attain them:
cooperation is scarce, whereas competition and conflict are the norm.
The other reason is that in many instances the individuals or groups may
find that they have an alternative to cooperation. They can either
choose to cooperate to achieve mutually desired goals, or they can
work on their own to achieve the desired goals.
Reciprocity: people treat others the way they are treated rather than
treating others the way they would have others do to them.
Communication: in many situations where cooperation could develop,
but it does not, its absence is blamed on failure to communicate.
Group size: as the number of individuals rises,
the level of cooperation drops. Several factors
contribute to this outcome.
The greater the number of persons, the greater
the possibility that one will be totally selfish,
exploitative or simply uncooperative.
As groups increase in size communication
among their members, becomes more difficult.
As the number of individuals increases, diffusion
of responsibility develops such as pass - the
back
12.14 Comparison between
Conflict and Cooperation
12.14.1 Differences.
Cooperation has largely positive consequences at least for the parties
involved while conflict has both positive and negative consequences
Cooperation consists of mutually reinforcing or supportive behaviors
between two or more people, groups or larger systems while conflict
consists of opposing behavior.
Cooperative behavior stems from a perception that collaboration will help
obtain mutual goals, while conflict sterns from a perception of
conflicting goals.
Cooperation may stem from a predisposition to behave this while conflict
is largely caused by perceived or actual goal incompatibility.
In cooperation, since each of the parties involved is obtaining something
desirable, or expects to, there is little reason for the behaviors or be
sub rosa. Therefore cooperative behavior is open and disclosed to all
parties who may wish to hear or know about the cooperation; conflict
is usually sub-rosa.
12.14.2 Similarities
Cooperative behavior, like conflict behavior may be
verbal or nonverbal or both.
Both conflict and cooperation can be functional or
dysfunctional
In both conflict and cooperation, there are at least
three parties to the situation.
In both conflict and cooperation, behaviors are
interactive in the sense that it is between at least
two people and there is usually more than one
cycle of behavior and counter behavior.
Both conflict and cooperation can be considered as
parts of a continuum
12.15 Conflict Management
Model