MU0002-Unit-01-Introduction to Management

Unit-01-Introduction to Management Structure: 1.1 Introduction Objectives 1.2 Definitions of Management 1.3 Characteristics of Management 1.4 Scope and Levels of Management 1.5 Importance of Management 1.6 Role of Management 1.7 Administration and Management Self Assessment Questions 1.8 Summary 1.9 Terminal Questions 1.10 Answers to SAQs and TQs 1.1 Introduction Management is a global need. It is essential to every individual, a family, educational institution, hospital, religious organizations, team of players, a government, military systems, cultural body, urban centers and business enterprises. No individual can satisfy all his needs by himself. Men should join together and accomplish goals through co-operation. Whenever, there is an organized group of people working towards a common goal, some type of management is needed. A business enterprise must be directed and controlled by a group of people to achieve its goals. The resources of money, manpower, material and technology will be waste unless they are out to work in a co-ordinated manner. It is the ‘management’ which uses the available resources in such a manner that a business enterprise is able to earn ‘surplus’ to meet the needs of growth and expansion. Management is required to plan, organize, co-

ordinate and control the affairs of a business concern. It brings together all resources and motivates people to achieve the objectives of a business enterprise. Objectives: After studying this unit, you will be able to: · Define management. · Explain the characteristics of management. · Differentiate between management and administration. · State the principles of management. · Explain the roles of managers. · Explain managerial skills. 1.2 Definitions of Management Management may be defined in many different ways. Many eminent authors on the subject have defined the term “management”. Some of these definitions are reproduced below: According to Lawerence A. Appley – “Management is the development of people and not the direction of things.” In the words of George R. Terry – “Management is a distinct process consisting of planning, organizing, actuating and controlling performed to determine and accomplish the objectives by the use of people and resources.” According to James L. Lundy – “Management is principally the task of planning, co-ordinating, motivating and controlling the efforts of others towards a specific objective.” In the words of Henry Fayol – “To manage is to forecast and to plan, to organize, to command, to co-ordinate and to control.” According to Peter F. Drucker – “Management is a multi-purpose organ that manages a business and managers and manages worker and work”. In the words of Koontz and O’Donnel – “Management is defined as the creation and maintenance of an internal environment in an enterprise where individuals working together in groups can perform efficiently and effectively towards the attainment of group goals”.

According to Newman, Summer and Warren – “The job of management is to make co-operative endeavor to function properly. A Manager is one who gets things done by working with people and other resources.” From the definitions quoted above, it is clear that “management” is a technique of extracting work from others in an integrated and co-ordinated manner for realizing the specific objectives through productive use of material resources. Mobilizing the physical, human and financial resources and planning their utilization for business operations in such a manner as to reach the defined goals can be referred to as “management”. If the views of the various authorities are combined, management could be defined as a “distinct ongoing process of allocating inputs of an organization (human and economic resources) by typical managerial functions (planning, organizing, directing and controlling) for the purpose of achieving stated objectives, namelyoutput of goods and services desired by its customers (environment). In the process, work is performed with and through personnel of the organization in an ever-changing business environment.” From the above, it is clear that management refers to the process of getting activities completed efficiently and effectively with and through other people. The process represents the functions or primary activities engaged in by managers. These functions are typically labeled planning, organizing, leading, and controlling. Efficiency is a vital part of management. It refers to the relationship between inputs and outputs. If you can get more output from the given inputs, you have increased efficiency. Similarly, if you can get the same output from less input, you also have increased efficiency. Since managers deal with input resources that are scarce-mainly people, money and equipment-they are concerned with the efficient use of these resources. Management, therefore, is concerned with minimizing resource costs. Efficiency is often referred to as “doing things right”. However, it is not enough simply to be efficient. Management is also concerned with getting activities completed; i.e. it seeks effectiveness. When managers achieve their organization’s goals, we say they are effective. Effectiveness can be described as “doing the right things”. So efficiency is concerned with means and effectiveness with ends. Efficiency and effectiveness are interrelated. For instance, it is easier to be effective if one ignores efficiency. Timex could produce more accurate and attractive watches if it disregarded labour and material input costs. Some federal government agencies have been criticized regularly on the grounds that they are reasonably effective but extremely inefficient; that is, they get their jobs done but at a very high cost. Management is concerned, then, not only with getting activities completed (effectiveness), but also with doing so as efficiently as possible. Can organization be efficient and yet not effective? Yes, by doing the wrong things well. Many colleges have become highly efficient in processing students. By using computer-assisted learning, large lecture classes, and heavy reliance on part-time faculty, administrators have significantly cut the cost of educating each student. Yet students, alumni, and accrediting agencies have criticized some of these colleges for failing to educate their students properly. Of

These functions are so interwoven that it is not possible to lay down exactly the sequence of various functions or their relative significance. It is the force which assembles and integrates other resources.3 Characteristics of Management Management is a distinct activity having the following salient features or characteristics: 1. experience and management principles for getting the results from the workers by the use of non-human resources. informed employees. Results through Others: The managers cannot do everything themselves. 1. management is an essential ingredient of an organization. The success of management is measured by the extent to which the organizational goals are achieved. Managers also seek to harmonize the individuals’ goals with the organizational goals for the smooth working of the organization. Thus. Goal-oriented: Management is a purposeful activity. People often remark of the effectiveness (or ineffectiveness) of management on the basis of the end results. Integrative Force: The essence of management is integration of human and other resources to achieve the desired objectives. They must motivate the subordinates for the accomplishment of the tasks assigned to them. 2. organizing. It co-ordinates the efforts of workers to achieve the goals of the organization. . directing and controlling. buoyant spirit and adequate work output. labour and capital. the process of management involves decision-making and putting of decisions into practice. high efficiency is associated more typically with high effectiveness. It is the most critical input in the success of any organized group activity. capital and materials. They must have the necessary ability and skills to get work accomplished through the efforts of others. staffing. labour. Managers apply knowledge. All these resources are made available to those who manage. 5.course. Economic Resource: Management is one of the factors of production together with land. 4. 3. 6. Distinct Process: Management is a distinct process consisting of such functions as planning. It is imperative that the organizational goals must be well-defined and properly understood by the mangers at various levels. These factors do not by themselves ensure production. Thus. Intangible Force: Management has been called an unseen force. they require the catalyst of management to produce goods and services required by the society. namely. And poor management is most often due to both inefficiency and ineffectiveness or to effectiveness achieved through inefficiency. In essence. One may not see with the naked eyes the functioning of management but its results are apparently known. Its presence is evidenced by the result of its efforts-orderliness. feeling of management is result-oriented. although they can’t observe it during operation.

Authority enables the managers to perform their functions effectively. productivity orientation drew its inspiration from Industrial Engineering and human relations orientation from Psychology. useful. machinery and methods or ways of doing things) depends to a great extent on the quality of management. a hierarchy of command and control. management may be understood as (i) an economic resource.7. on-going concern. the effective use of the five M’s of management (money. The principles are working guidelines which are flexible and capable of adaptation to every organization where the efforts of human beings are to be co-ordinated. So it is treated as a science. Generally. the degree of authority gets gradually reduced. management is viewed as an art. management is the rule-making and rule-enforcing body. principles and techniques which have wide applications. According to Newman.4 Scope of Management The scope of management is very wide. materials. 9. It is bound together by a web of relationships between superiors and subordinates. people . labour and capital. money and machines into a productive. According to Herbision and Myers. as we move down in the managerial hierarchy. Universal Application: Management is universal in character. (ii) a system of authority. The principles and techniques of management are equally applicable in the fields of business. and (iii) a class or elite. Managers at different levels possess varying degrees of authority. · Management as an economic resource Management is one of the factors of production along with land. Multi-disciplinary Subject: Management has grown as a field of study (i. management is required to covert the disorganized resources of men. Henri Fayol suggested that principles of management would apply more or less in every situation. discipline) taking the help of so many other disciplines such as Engineering. 10. it refers to three distinct ideas. Sociology and Psychology. For instance. how effectively and economically the five M’s are combined together to produce desired results. principles and techniques requires specialized knowledge and skills on the part of the manager. Similarly. government and hospital. materials.e. In modern organizations. · Management as a system of authority According to Herbison and Myers. military. education. System of Authority: Management as a team of managers represents a system of authority. In other words. Sociology and Operations Research have also contributed to the development of management science. Since the skills acquired by a manager are his personal possession. 8. manpower. that is. Much of the management literature is the result of association of these disciplines. A Science and an Art: Management has an organized body of knowledge consisting of welldefined concepts. The application of these concepts. Anthropology. 1. Basically.

viz. Managing Director.) interprets and explains the policies framed by the top management. day-to-day matters.. Board of Directors. but as head of wages and salary department. the upper level of management) and (ii) operating management (i. wage and salary director of a company may assist in fixing wages and salary structure as a member of the Board of Directors. (i) administrative management (i. Considering the hierarchy of authority and responsibility. his job is to see that the decisions are implemented. Administrative management is concerned with “thinking” functions such as laying down policy. personnel manager etc. They transmit orders. the term management refers to the group of individuals occupying managerial positions. Middle management (departmental heads like work manage.e. planning and setting up of standards. Levels of management refer to a line of demarcation between various managerial positions in an enterprise. For instance. ranks. The managerial class has become very important in modern organizations owing to its contribution to business success. technical facilities. Lower management (first line supervisors) is concerned with routine. As a separate group.are bound by authority relationships. Instructions and decisions downward and carry the problem and suggestions upward. and the range of production. and directing the operations to attain the objectives of the enterprise. Managers working at top levels enjoy more authority than people working at lower levels.. We generally come across two broad levels of management.e. its Chairman. the lower level of management). or the Chief Executive. it is difficult of draw any clear-cut demarcation between thinking function and doing function as the basic/fundamental managerial functions are performed by all managers irrespective of their levels. Levels of Management An enterprise may have different levels of management. All the managers form the chief executive to the first line supervisors are collectively addressed as ‘Management’ which refers to the group. Operative management is concerned with the “doing” function such as implementation of policies. The real significance of levels is that they explain authority relationships in an organization. The levels of management depend upon its size. or. or the General Manager or Executive Committee having key officers. But in actual practice. . Top management determines objectives and provides direction to enterprise activities. one can identify three levels of management namely: i) Top management of a company consists of owners/shareholders. finance manager. · Management as a class or elite Sociologists view management as a distinct class in society having its own value system.

Foremen. e) To assign activities. etc. They are responsible to the top management for the functioning of their department. It devotes more time on planning and co-ordinating functions. The important functions of top management include: a) To establish the objectives or goals of the enterprise. 2. b) To interpret the policies chalked out by top management. f) To provide overall leadership to the enterprise. b) To make policies and frame plans to attain the objectives laid. Financial Controller. It is also described as the policy-making group responsible for the overall direction and success of all company activities. Marketing Manager. They provide the guidance and the structure for a purposeful enterprise.. d) To recruit and select suitable operative and supervisory staff. c) To set up an organizational framework to conduct the operations as per plans. c) To prepare the organizational set up in their own departments for fulfilling the objectives implied in various business policies. Middle management: The job of middle management is to implement the policies and plans framed by the top management. Supervisors. and Divisional Sectional Officers working under these Functional Heads. men. They devote more time on the organization and motivation functions of management. materials.ii) Middle management of a company consists of heads of functional departments namely. Production Manager. . It serves as an essential link between the top management and the lower level or operative management. duties and responsibilities for timely implementation of the plans. Purchase Manager. 1. policies and plans for the enterprise. machines and methods to put the plans into action. Without them the top management’s plans and ambitious expectations will not be fruitfully realized. d) To assemble the resources of money. Top management: Top management is the ultimate source of authority and it lays down goals. The following are the main functions of middle management: a) To establish the objective or goals of the enterprise. e) To exercise effective control of the operations. iii) Lower level or operative management of a company consists of Superintendents. It is accountable to the owners of the business of the overall management. etc.

the resources of production remain resources and never become production. In its absence. They are in direct touch with the rank and file or workers. Their authority and responsibility is limited. 3. accounts officers and so on. Management creates teamwork and . k) To make suitable recommendations to the top management for the better execution of plans and policies. Without management. A right climate is created for workers to put in their best and show superior performance. h) To co-operate with the other departments for ensuring a smooth functioning of the entire organization. It enables employees to move cooperatively and achieve goals in a coordinated manner. an organization is merely a collection of men. They allot various jobs to the workers. (i) Optimum use of resources: Management ensures optimum utilization of resources by attempting to avoid wastage of all kinds. The importance of management can be understood from the following points. Management makes group effort more effective. Employees feel a sense of security when they find a body of individual’s working day and night for the continued growth of an organization. They interpret and divide the plans of the management into short-range operating plans. They are also involved in the process of decisions-making. It consists of foreman. They devote more time in the supervision of the workers. the working of an enterprise will become random and haphazard in nature. Lower or operative management: It is placed at the bottom of the hierarchy of management. supervisors. g) To motivate personnel to attain higher productivity and to reward them properly. They pass on the instructions of the middle management to workers. 1. They are concerned with direction and control functions of management. sales officers. management is the dynamic lift-giving element in every organization. and actual operations are the responsibility of this level of management.f) To compile all the instructions and issue them to supervisors under their control. i) To collect reports and information on performance in their departments. It is the activating force that gets things done through people. machines. They have to get the work done through the workers. j) To report to top management. money and material. evaluate their performance and report to the middle level management. (ii) Effective leadership and motivation: In the absence of management. It helps in putting the resources to the best advantage within the limitations set by the organization and its environment.5 Importance of Management According to Drucker.

To this end. Objective can be achieved only when the human and non-human resources are combined in a proper way. (iv) Achievement of goals: Management plays an important role in the achievement of objectives of an organization. Industrial peace is an essential requirement for increasing productivity. all these help in realizing goals with maximum efficiency. techniques. we generally mean a manager who undertakes management as a career and is not interested in acquiring ownership share in the enterprise which he manages. iii) The establishment of a representative organization with professiona-lizing as its goal. (vi) Improves standard of living : Management improves the standard of living of people by (a) using scarce resources efficiently and turning out profits. and specialized knowledge. In the final analysis. Successful managers are the ones who anticipate and adjust to changing circumstances rather than being passively swept along or caught unprepared. According to McFarland. Overlapping efforts and waste motions are avoided.motivates employees to work harder and better by providing necessary guidance. They try to put everything on the right tract. competition. methods. Thus unnecessary deviations. ii) Formalized methods of acquiring training and experience. government policy. hire competent people and provide necessary guidance. Management as a profession By a professional manager. skills. counseling and effective leadership. (c) Exploiting new ideas for the benefit of society as a whole and (d) developing employee talents and capabilities while at work and prompting them to show peak performance. They initiate prompt actions whenever workers express dissatisfaction over organizational rules. . procedures and reward systems. often threaten the survival of a firm. (iii) Establishers sound industrial relations: Management minimizes industrial disputes and contributes to sound industrial relations in an undertaking. Management is goal-oriented.. manager tries to strike a happy balance between the demands of employees and organizational requirements. Organize the resources properly. forecasting combined with efficient use of resources) and taking appropriate steps. (v) Change and growth: Changes in technology. (b) Ensuring the survival of the firm in the face of continued changes. An enterprise has to take note of these changes and adapt itself quickly. Managers help an organization by anticipating these changes (carefull planning. With a view to realize the predetermined goals-managers plan carefully. Failure to take note of customer’s needs regarding full efficiently has spelt doom for ‘Ideal java’ in the two-wheeler market in India. etc. a profession possesses the following characteristics: i) A body of principles.

iv) The formation of ethical codes for the guidance of conduct. however.. A number of organizations such as the Administrative Staff College of India. Henry Mintzberg did a careful study of five chief executives at work. and it is not as fully a profession as medicine and law. bribing public officials to gain favours. Management Development Institute. Training facilities are provided in most companies by their training divisions. Indeed such mobile managers are regarded as more progressive and modern than others. managers in general. Management is a profession to the extent it fulfils the above conditions. However. As a social science. There is no ethical code of conduct for managers as for doctors and lawyers. an art as well as a profession. little regard is paid to the elevation of service over the desire for monetary compensation is evident by switching of jobs by managers. It is a profession in the sense that there is a systematized body of management. identifiable discipline. manipulating prices and markets are by no means uncommon management practices. However. In fact. Management does not fulfill the last two requirements of a profession. the All India Management Association. management is not as exact as natural sciences. What he discovered challenged several long-held notions about the manager’s job. Management is also a profession in the sense that formalized methods of training is available to those who desire to be managers. a management degree is not a pre-requisite to become a manager. none of them has the professionalizing of the management as its goal. For instance. and the university departments of management offer a variety of short-term management training programmes. There are a number of representative organizations of management practitioners almost in all countries such as the All India Management Association in India. Management partially fulfils the third characteristic of profession.A. It has also developed a vast number of tools and techniques. and short-duration activities. the Indian Institute of Management. sabotaging trade unions. do not seem to adhere to the principle of “service above self”.6 Role of Management In the late 1960s. and v) The charging of fees based on the nature of services. Some individual business organizations. Furthermore. the American Management Association in U. It may be concluded from the above discussion that management is a science. Mintberz found that his managers engaged in a large number of varied. and it is distinct. in contrast to the predominant views at the time that managers were reflective thinkers who carefully and systematically processed information before making decisions. etc. But unlike medicine or law. There was little time for reflective thinking because the managers encountered . We have a number of institutes of management and university departments of management which provide formal education in this field. 1. unpatterned. try to develop a code of conduct for their own managers but there is no general and uniform code of conduct for all managers.S.

When that sales manager confers with other sales executives through a marketing trade association. they do so by reading magazines and talking with others to learn of changes in the public’s tastes. training. But in addition to these insights. Responsible for the motivation Performing virtually all and activation of subordinates. The term ‘management roles’ refers to specific categories of managerial behaviour. This is the disseminator role. training. activities that involve responsible for staffing. The third role within the interpersonal grouping is the liaison role. When the president of a college hands out diplomas at commencement or a factory supervisor gives a group of high school students a tour of the plant. Managers also act as a conduit to transmit information to organizational members. These sources are individuals or groups outside the manager’s unit. Mintzberg called this the monitor role. the transfer of information. Mintzberg described this activity as contacting external sources who provide the manager with information.1: Mintzberg’s Managerial Roles Role Interpersonal Figurehead Description Identifiable Activities Leader Symbolic head. Informational Roles: All managers. Mintzberg provided a categorization scheme for defining what managers do based on actual managers on the job. obliged to Greeting visitors. to some degree. signing perform a number of routine legal documents. All managers have a role as a leader. manages also perform a spokesperson role. Typically. When they represent the organisation to outsiders. The sales manager who obtains information from the human resources manager in his or her same company has an internal liaison relationship.constant interruptions. he or she is acting in a figurehead role. what competitors may be planning. and disciplining employees. Interpersonal Roles: All managers are required to perform duties that are ceremonial and symbolic in nature – interpersonal roles. and the like. and decision-making. subordinates. These ten roles can be grouped as those primarily concerned with interpersonal relationships. Mintzberg concluded that managers perform ten different but highly interrelated roles. and associated duties. Half of these managers’ activities lasted less than nine minutes each. duties of a legal or social nature. motivating. and may be inside or outside the organization. he or she has an outside liaison relationship. This role includes hiring. fulfill informational roles-receiving and collecting information from organizations and institutions outside their own. Table 1. .

network of outside contacts doing external board and informers who provide work. understanding of organization and environment.Liaison Maintains self-developed Acknowledging mail. performing all kinds – in effect. activities that involve outsiders. Seeks and receives wide variety Reading periodicals and of special information (much of reports. emerges as nerve center of internal and external information about the organization. policies. maintaining it current) to develop thorough personal contacts. the organization – some information is factual. actions. serves as expert on organization’s industry. Transmits information to Holding board meetings. performing other favors and information. results. supervises design of certain projects as well. projects” to bring about change. some involves interpretation and integration of diverse value positions of organizational influencers.. requesting of organizational resources of authorization. Searches organization and its Organizing strategy and environment for opportunities review sessions to and initiates “improvement develop new programs. Responsible for corrective Organizing strategy and action when organization faces review sessions that important. the making any activity that involves or approval of all significant budgeting and the Informational Monitor Disseminator Spokesperson Decisional Entrepreneur Disturbance handler Resource allocator . media. unexpected involve disturbances and disturbances crises Responsible for the allocation Scheduling. etc. outsiders on organization’s giving information of the plans. Transmits information received Holding informational from outsides or from other meetings. making phone subordinates to members of calls to relay information.

negotiator. He also found that the relative importance of these skills varied according to the manager’s level within the organization. managers are responsible for allocating human. Technical Skills: First-line managers. and conceptual. research by Robert L. the roles of disseminator. Katz found that managers need three essential skills or competencies: technical. Publishers. a manager’s job is varied and complex. The Nature of Managerial Work (New York: Harper & Row. Conversely. are heavily involved in technical aspects of the organization’s operations. As disturbance handlers. For example. physical and monetary resources. An Evaluation: A number of follow-up studies have tested the validity of Mintzberg’s role categories across different types of organizations and at different levels within given organizations. negotiations. Managerial Skills As you can see from the preceding discussion. Reprinted by permission of Harper & Row. Source: Henry Mintzberg. Responsible for representing Participating in union the organization at major contract negotiations. figurehead. or manufacturing. managers take corrective action in response to previously unforeseen problems. Last. Decisional Roles: Finally. managers initiate and oversee new projects that will improve their organization’s performance. Negotiator programming of subordinates work. the leader role is more important for lowerlevel managers than it is for either middle-or-top-level managers. managers perform as negotiators when they discuss and bargain with other groups to gain advantages for their own units. The evidence generally supports the idea that managers – regardless of the type of organization or level in the organization-perform similar roles. As resource allocators. an accounts payable manager must be proficient in accounting rules and standardized . Specifically. the emphasis that managers give to the various roles seems to change with hierarchical level. Technical skills include knowledge of and proficiency in a certain specialized field. During the early 1970. However. As entrepreneurs. finance. Inc.organizational decisions. Mintzberg identified four decisional roles which revolve around the making of choices. and spokesperson are more important at the higher levels of the organization than at the lower ones. pp 93-94 Copyright Ó 1973 by Hency Mintzberg. such as engineering. Managers need certain skills to perform the duties and activities associated with being a manager. computers. as well as many middle managers. 1973). human. liaison.

and all managers are involved in making decisions. management is a lower-level function and is concerned primarily with the execution of policies laid down by administration. administration is a higher level function. 1. it remains just as important at the top levels of management as it is at the lower levels. lead. even top managers need some proficiency in the organization’s speciality. Managers with good human skills can get the best out of their people. Although technical skills become less important as manager moves into higher levels of management. motivate. They know how to communicate. etc. These types of conceptual skills are needed by all managers at all levels but become more important as they move up the organizational hierarchy. while others maintain that administration and management are two different functions. this skill is crucial. Floerence and Tead. and inspire enthusiasm and trust. Administration is a higher level function: . Thus. iii) There is no distinction between the terms ‘management’ and ‘administration’ and they are used interchangeably.7 Administration and Management The use of two terms ‘management’ and ‘administration’ has been a controversial issue in the management literature. Spriegal and Lansburg. But some English authors like Brech are of the opinion that management is a wider term including administration. Those who held management and administration distinct include Oliver Sheldon. Some writers do not see any difference between the two terms. In fact. This controversy is discussed as under in three heads: i) Administration is concerned with the determination of policies and management with the implementation of policies. ii) Management is a generic term and includes administration. Human Skills: The ability to work well with other people both individually and in a group is a human skill. Since managers deal directly with people. According to them. These abilities are essential to effective decision-making. They must be able to see the organization as a whole and the relationships among its various subunits and to visualize how the organization fits into its broader environment. Conceptual Skills: Managers also must have the ability to think and to conceptualize about abstract situations.forms so that she can resolve problems and answer questions that her accounts payable clerks might encounter.

2: Distinction between Administration and Management: Basic 1. objectives. Status Administration refers to Management is relevant higher levels of management. at lower levels of management. operative workforce for the execution of plans. It is a execution of decisions. making strategic plans to deal plans and policies of the effectively with the organisation. administrative decisions. management as an executive function which is primarily concerned with carrying out of the broad policies laid down by the administration. 3. plans and policies through and with others. Administration is the phase of business enterprise that concerns itself with the overall determination of institutional objectives and the policies necessary to be followed in achieving those objectives. Decision. Administration is a determinative function.e. Managers are Administrators are basically concerned mainly with concerned with planning and organisation and direction control. Nature Administration relates to the Management relates to decision-making. 6. is a doing function. Direction of It is concerned with leading It is concerned with Human Resources and motivation of middle leading and motivation of level executives. on the other hand. Table 1.. policies. Scope It is concerned with It is concerned with the determination of major implementation of objectives and policies. Environment Administration has direct Management is mainly interaction with external concerned with internal environment of business and forces. 7. This view is held by Tead. Spriegel and Walter. 8.Administration determines Management decides who Making what is to be done and when shall implement the it is to be done. 2. environmental forces. i. It thinking function. Meaning Administration Management Administration is concerned Management means with the formulation of getting the work done objectives. administration involves broad policy-making and management involves the execution of policies laid down by the administration.Administration refers to policy-making. 4. of the organisation. Usage of Term The term ‘administration’ is The term ‘management’ is often associated with widely used in business . Thus. 5. whereas management refers to execution of policies laid down by administration. of human resources.

2. organisations. 2. counseling and effective leadership. 3. Self Assessment Questions in the 1. Management is largely found at the middle and lower levels and administration is found at the higher levels. middle and lower. Still management is not completely a profession. Money. Explain its characteristics. machinery and methods or ways of doing things) depends to a great extent on the quality of management.9 Terminal Questions 1. materials. 1. co-ordinating. __________is principally the task of planning. _________. 1. Managers perform different roles to discharge their responsibilities. teamwork . Human skills are important at all managerial levels. motivating and controlling the efforts of others towards a specific objective. manpower 3.10 Answers to SAQs and TQs SAQs: 1. 3. It is the management which transforms physical resources of an organization into productive resources. ___________.government offices. Lower level managers require and use a greater degree of technical skill and managers at higher levels use a greater degree of conceptual skill. 1. public organisations sector and non-business private sector. Management creates ________ and motivates employees to work harder and better by providing necessary guidance. There are three levels of management-top. Management 2. Define management.8 Summary Management is concerned with getting things done through other people. Bring out the difference between Administration and Management. Five M’s of management (________. Discuss the importance of management.

2 Process of Management 2.3 2.5 3. Refer section 1.9 Terminal Questions 2. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.3 Planning 2.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .1.1 Introduction Objectives 2.5 Staffing 2. Refer section 1.Answers to TQs: 1.4 Organizing 2.8 Summary 2. Refer section 1.7 Motivating Self Assessment Questions 2.2.6 Directing 2.10 Answers to SAQs and TQs .

2 Management Process Peter Drucker said: “Management is doing things right. in recent time. Controlling However. Directing. management functions have been regrouped into four categories. Motivating.2. Staffing. Management is about accomplishing a goal efficiently. leadership is about setting the desirable goals. Planning 2.1 Introduction Follett (1933) defined management as "the art of getting things done through people”. Even . Policy Formulation We have noted earlier that all organizations have well-defined goals and objectives. · Explain Planning. Coordinating 5. you will be able to: · Define Management process. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent. · Explain different functions of management Process. Organizing 3. the two are not quite the same. as the action of measuring a quantity on a regular basis and of adjusting some initial plan. Organizing. 1949): 1. Through leadership and management often overlap. There is a degree of overlap between the two. You might well ask what the need for a policy is when objectives are already defined. It is difficult to say where objectives end and policies begin. Objectives: After this studying this unit. Commanding 4. Management functions are as follows (Fayol. One can also think of management functionally. 2. leadership is doing the right things“.

It provides the direction for the other functions of management and for effective teamwork. or where you want go to. In the football field. overall goals. it would be correct to assume that an objective is what you want to accomplish. The tasks of the strategic planning process include the following steps: Define the mission: A mission is the purpose of the organization. All levels of management engage in planning in their own way for achieving their preset goals. should precede a good deal of research involving market surveys. An explicit mission guides employees to work independently and yet collectively toward the realization of the organization’s potential. and developing plans to integrate and coordinate activities. policies are the means to achieve those ends. Planning in order to be useful must be linked to the strategic intent of an organization. The mission statement may be accompanied by an overarching . planning is often referred to as strategic in nature and also termed as strategic planning. Objectives are the ends. is an enduring decision which holds good on a continuing basis to guide the members of the organization in doing what they are called upon to do. Thus. Planning also enhances the decisionmaking process. planning begins with clearly defining the mission of the organization. fuel and machine efficiency. Effective planning enables an organization adapt to change by identifying opportunities and avoiding problems. cost structure and so on. However. The mission statement is broad. thus. driving comfort. studies on passenger comfort. Strategic Planning: Top level managers engage chiefly in strategic planning or long range planning Strategic planning is the process of developing and analyzing the organization’s mission. and then set out the method for achieving it. establishing strategies for achieving these goals. A mission statement should be short – and should be easily understood and every employee should ideally be able to narrate it from memory. 2. Therefore. a process in which one chooses a course which one thinks is the best. it is not a decision in which any process is involved. while a policy.so. summarizing what the organization does. say a passenger car. general strategies. the decision to change the design of a product. what distinguishers policies form objectives is that you first decide the objective.3 Planning It involves the process of defining goals. and allocating resources. Every organization needs to plan for change in order to reach its set goal. kicking the ball with the left foot or right foot is a reflex action. Decision – Making Taking decisions is a process.

journals and reports (scientific. governments (local. professional or trade associations (conventions and exhibitions). state. What are the possible new markets? . In which areas is the competition not meeting customer needs? 2. How efficient is our manufacturing? 3. federal. Are the facilities outdated? 3. Conduct a situational or SWOT analysis A situation or SWOT (Strengths. For assessing the strengths of the organization the following questions are important: 1.statement of philosophy or strategic purpose designed to convey a vision for the future as envisaged by top management. customers (internal and external). international). Is research and development adequate? 4. What financing is available? 6. Opportunities. What makes the organization distinctive? 2. The SWOT analysis begins with a scan of the external environment. How skilled is our workforce? 4. Sources of information may include stakeholders like. SWOT analysis provides the assumptions and facts on which a plan will be based. Analyzing strengths and weaknesses comprises the internal assessment of the organization. Are the technologies obsolete? For identifying opportunities the following elements need to be looked at: 1. and trade). Weaknesses. Organizations need to examine their business situation in order to map out the opportunities and threats present in their environments. suppliers. Do we have a superior reputation? For assessing the weaknesses of the organization the following questions are important: 1. What is our market share? 5. What are the vulnerable areas of the organization that could be exploited? 2. professional. Threats) analysis is vital for the creation of any strategic plan.

etc. In which areas does the competition meet customer needs more effectively? 2. and operational planning . Generally. Objectives are also called performance goals. Are our rivals weak? 5. Are there new competitors? 3.3. Is there a shortage of resources? 4. Set goals and objectives Strategic goals and objectives are developed to fill the gap between current capability and the mission. Benchmarking systematically compares performance measures such as efficiency. or outcomes of an organization against similar measures from other internal or external organizations. Is there a possibility of growth of existing market?) Identifying threats involves the following: 1. It also helps in setting minimum acceptable standards or common-sense minimums. They are aligned with the mission and form the basis for the action plans of an organization. What are the emerging technologies? 6. earnings per share. In turn. operational plans are based on the organization’s tactical plans. Develop related strategies (tactical and operational) Tactical plans are based on the organization’s strategic plan. effectiveness. What substitute products exist? In general terms. Comparing the organization to external benchmarks (the best practices) is used to assess current capabilities. The SWOT analysis is used as a baseline for future improvement. Are market tastes changing? 5. as well as gap analysis. return on investment. organizations have longterm objectives for factors such as. Strategic. tactical. What is the strength of the economy? 4. the best strategy is one that fits the organization’s strengths to opportunities in the environment. These are specific plans that are needed for each task or supportive activity comprising the whole. What are the new regulations? 6.

A key issue in accomplishing the goals identified in the planning process is structuring the work of the organization. structuring. grouped. It is the official organizational structure conceived and built by top management. This review is used for the next planning cycle and review. and goals are clearly stated. necessary to maintain competitive advantage in the said market. 2. The formal organization can be seen and represented in chart form. who is to do. Monitor the plan A systematic method of monitoring the environment must be adopted to continuously improve the strategic planning process. and coordinating the work components to achieve organizational goal. working toward common goals. The purpose of the organizing function is to make the best use of the organization’s resources to achieve organizational goals. Organizational structure is the formal decision-making framework by which job tasks are divided.must be accompanied by controls to ensure proper implantation of the plans. An organization chart displays the organizational structure and shows job titles. and coordinated. 2. with ideas and resources.4 Organizing It involves designing. who reports to whom. It is the process of determining what tasks are to be done. Group related jobs together in a logical and efficient manner 5. It is the extent to which the units of the organization are explicitly defined and its policies. Review plans 2. and where decisions are to be made. List all tasks to be accomplished 3. short-term standards for key variables that will tend to validate and support the long-range estimates must be established. To develop an environmental monitoring procedure. and relationships between departments. The steps in the organizing process include: 1. Feedback is encouraged and incorporated to determine if goals and objectives are feasible. Delegate authority to establish relationships between jobs and groups of jobs. how the tasks are to be grouped.5 Staffing . procedures. Organizations are groups of people. Formalization is an important aspect of structure. lines of authority. Assign work to individuals 6. Divide tasks into groups one person can accomplish – a job 4.

development. 2. appraisal. materials. 3. Deals with people: Staffing is a separate managerial function which deals with people in the organization. O’Donnell & Weihrich have defined staffing as “filling positions in the organization structure through identifying work force requirements. 3. placement. Pervasiveness of Staffing: Effective execution of staffing function is the responsibility of all managers in the organization. 2.It is not the machines. recruitment. recruitment. selection. Therefore it is the responsibility of the management to secure and maintain competent and dedicated workforce including managers and operatives. training. promotion. It involves many sub-functions such as manpower planning. Managers of the concerned departments are responsible for the selection and development of qualified people for their department and maintain them in their department. Staffing refers to the managerial function of determining and improving the manpower requirements of an enterprise. placement. Definition: 1. transfer and appraisal of personnel to fill the organizational positions. Curther Geelick Cyndall Urwick – “Staffing is the whole personnel function of brining in and training the staff and marinating of favorable conditions of work” Features of Staffing The analysis of the above definitions highlights the following features: 1. 4. money. performance appraisal etc. It has many sub-functions: Staffing involves determination of the manpower requirement. Koontz. Theo Haimann – “Concerned with the placement. compensation and training of needed people”. transport system and other physical resources that make the organization to achieve its goals but it is the competency and efficiency of the people who handle resources contributes for the accomplishment of objectives of the enterprise. . inventorying the people available. growth and development of all those members of the organization whose function is to get things done through the efforts of other individuals”. This task has been referred to as staffing. selection. It aims at right man at right position: Staffing aims at selection of right person for right place at right time and retaining them in the organization.

identifying the manpower requirements. It is performed in the context of superior-subordinate relationship and every manager in the organization performs his duties both as a superior and subordinate. It is a continuing function. lead them and guide them on a continuous basis. It is an important managerial function. recruitment. It is a process: it is a process having a logical sequence i. Direction function is performed at every level of management. 7. Direction is the managerial function of guiding. It is a continuous function: With the growth and expansion of business additional manpower is needed. Direction is an important managerial function. induction. how to do and telling them to do to the best of their ability. etc. Present positions must be filled keeping in mind the future requirements. 2. Thus staffing is an ongoing process through – out the life of an organization. training development and maintenance of personnel. Thus staffing deals with the future requirements also.5. Personnel policies and programs must be formulated as guides to perform the staffing function effectively. motivate them. A manger needs to give orders to his subordinates. Definition According to Koontz and O’Donnel. vacancies arise out of retirement. selection. overseeing and leading people. 8. management initiates actions in the organization. Direction is continuous process and it continues throughout the life-time of the organization. .e. 3. Through direction. 2. 6. resignation. Characteristics of Direction The characteristic features of direction are as follow: 1. directing is the “interpersonal aspect of managing by which subordinates are led to understand and co-ordinate effectively and efficiently to the attainment of enterprises goals”.6 Directing Direction is one of the functions of management. It deals with future requirements: Staffing deals with current and future personnel requirements. promotion. It is instructing people as to what to do.

coach and supervise his subordinates. 3. satisfied needs cannot. “without the issuance of directives. Directing is the process around which all performances revolve. Pervasive function: Directing is a managerial function performed by all mangers at all levels of the organization. to provide superiors opportunities for some more important work which their subordinates cannot do. humanness and psychological health a person will show. Direction imitates at the top level in the organization and follows to bottom through the hierarchy.4. teach. the more individuality. human beings have wants and desires which influence their behaviour. without guiding and overseeing subordinates. It is an important function of management: Directing is an important management function which provides a connecting link between planning. The needs are arranged in order of importance. organizing and staffing on one hand and controlling on the other. The five needs are: · Physiological: Includes hunger. On the one hand. Maslow’s Hierarchy of Needs Theory According to this theory. and other bodily needs . 2. on the other. and the Two-Factor theory.7 Motivating Motivating In the 1950s three specific theories were formulated and are the best known: Hierarchy of Needs theory. The amount of time and effort an executive spends in directing however. The manager never ceases to direct. Direction has dual objectives. the number of subordinate he has and the other duties he is expected to perform. As Theo Haimann puts it. It emphasizes that a subordinate is to be directed by his own superior only. from the basic to the complex. Essence of performance: Directing is the process around which all performances revolve. The person advances to the next level of needs only after the lower level need is at least minimally satisfied. The further they progress up the hierarchy. only unsatisfied needs can influence behavior. thirst. Continuous function: Directing is a continuous process. guide. shelter. Nature of Directing The nature of directing can be discussed under the following: 1. 5. 2. proposed by Maslow (1943). 4. sex. will vary depending upon his level. Theories X and Y. nothing or at the best very little would be accomplished”. it aims at getting things done by subordinates and.

Higher-order needs are satisfied internally. and exercise self-control. Theory X – In this theory management assumes employees are inherently lazy and will avoid work. if they can. belongingness. It is also believed that. Social. and attention · Self-actualization: The drive to become what one is capable of becoming. Lower-order needs are predominantly satisfied. it is clear that Theory X assumes that lower-order needs dominate individuals. Physiological and safety needs are described as lower-order. It is also assumed that workers generally place security above all other factors and will display little ambition. Theory Y – In this theory management assumes employees may be ambitious. such as. Workers need to be closely supervised and a comprehensive system of controls and a hierarchical structure is needed to supervise the workers closely. self-motivated. From the above. whereas. status. self-direction. autonomy. acceptance. Theory X and Theory Y Douglas McGregor argued that a manager’s view of the nature of human beings is based on a certain grouping of assumptions and he or she tends to mould his or her behavior toward employees according to these assumptions. anxious to accept greater responsibility. and self-fulfillment Maslow separated the five needs into higher and lower orders. self-respect. and friendship · Esteem: Includes internal esteem factors.· Safety: Includes security and protection from physical and emotional harm · Social: Includes affection. includes growth. It is believed that employees enjoy their mental and physical work duties. such as. and external esteem factors. Herzberg’s Two Factor Theory . and achievement. esteem. achieving one’s potential. and self-actualization are classified as higherorder needs. Theory Y assumes that higher-order needs dominate individuals. if given the chance employees have the desire to be creative and forward thinking in the workplace. There is a chance for greater productivity by giving employees the freedom to perform to the best of their abilities without being bogged down by rules. autonomy and empowerment. recognition. externally.

2. and salary are hygiene factors. interpersonal relations. Self Assessment Questions 1. such as.Herzberg (1959) constructed a two-dimensional paradigm of factors affecting people’s attitudes about work. Removing dissatisfying characteristics from a job does not necessarily make the job satisfying. These two factors are motivators and hygiene factors and this theory is also called motivation-hygiene theory. performance appraisal etc. _______refers to the managerial function of determining and improving the manpower requirements of an enterprise. Motivators are intrinsic factors. ____defined management as the art of getting things done through people. In summary. such as. Directing is the interpersonal aspect of managing by which subordinates are led to understand and co-ordinate effectively and efficiently to the attainment of enterprises goals. establishing strategies for achieving these goals. who reports to whom. When hygiene factors are adequate. Staffing refers to the managerial function of determining and improving the manpower requirements of an enterprise. working conditions. people will not be dissatisfied. It is the process of determining what tasks are to be done. To motivate people. but their presence does not motivate or create satisfaction. It involves many sub-functions such as manpower planning. Extrinsic factors. and developing plans to integrate and coordinate activities. motivators describe a person’s relationship with what she or he does. Planning involves the process of defining goals. recognition.8 Summary Management is the art of getting things done through people. 2. company policy. and coordinating the work components to achieve organizational goal. Presence of these factors ensure job satisfaction. how the tasks are to be grouped. advancement. neither will they be satisfied. The _____analysis begins with a scan of the external environment. supervision. 3. The satisfiers relate to what a person does while the dissatisfiers relate to the situation in which the person does what he or she does. Hygiene factors on the other hand. Organization involves designing. structuring. emphasize factors intrinsically rewarding that are associated with the work itself or to outcomes directly derived from it. and where decisions are to be made. Every organization needs to plan for change in order to reach its set goal. who is to do. many related to the tasks being performed. have to do with a person’s relationship to the context or environment in which she or he performs the job. Job satisfaction factors are separate and distinct from job dissatisfaction factors. . and achievement. recruitment. responsibility. The absence of hygiene factors can create job dissatisfaction.

1 Introduction Objectives . Follett 2. Reference 2.6 Copyright © 2009 SMU Powered by Sikkim Manipal University .10 Answers to SAQs and TQs SAQs: 1.3 2. What is planning? 2.2. SWOT 3. Reference 2.5 3. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3.9 Terminal Questions 1. Reference 2. Staffing Answers to TQs: 1. 2. Write a short not on directing. Explain Staffing in detail 3.

3.2 Definitions 3.3 Characteristics of OD 3.4 Categories of OD 3.5 Goals of OD 3.6 OD and Management Development 3.7 Role of OD 3.8 Problems in OD Self Assessment Questions 3.9 Summary 3.10 Terminal Questions 3.11 Answers to SAQs and TQs 3.1 Introduction Organization development is the applied behavioural science discipline dedicated to improving organizations and the people in them through the use of the theory and practice of planned change. Organizations face multiple challenges and threats today – threats to effectiveness, efficiency, and profitability; challenges from turbulent environments, increased competition, and changing customer demands; and the constant challenge to maintain congruence among organizational dimensions such as technology, strategy, culture, and processes. Keeping organizations healthy and viable in today’s world is a daunting task. Individuals in organizations likewise face multiple challenges – finding satisfaction in and through work, fighting obsolescence of one’s knowledge and skills, maintaining dignity and purpose in pursuit of organizational goals, and achieving human connectedness and community in the workplace. Simple survival – continuing to have an adequate job – is a major challenge today in the light of constant layoffs and cutbacks. Although new jobs are being created at record rates, old jobs are being destroyed at an accelerating pace. “Knowledge” work is replacing “muscle” work. In summary, organizations and the individuals in them face an enormously demanding present and future. Are any strategies available to help people and organizations cope, adapt, survive, and even prosper in these vexing times? Fortunately, the answer is “yes”. A variety of solutions exists. And organization development (OD) is one of them. Basically, organization development is a

process of teaching people how to solve problems, take advantage of opportunities, and learn how to do that better and better over time. OD focuses on issues related to the “human side” of organizations by finding ways to increase the effectiveness of individuals, teams, and the organization’s human and social processes. Organization development is a relatively recent invention. It started in the late 1950s when behavioural scientists steeped in the lore and technology of group dynamics attempted to apply that knowledge to improve team functioning and inter-group relations in organizations. Early returns were encouraging, and attention was soon directed toward other human and social processes in organizations such as the design of work tasks, organization structure, conflict resolution, strategy formulation and implementation, and the like. The field of OD grew rapidly in the 1970s and the 1980s with thousands of organizations in the private and public sectors using the theory and methods of OD with great success. Today, organization development represents one of the best strategies for coping with the rampant changes occurring in the marketplace and society. We predict that organization development will be preferred improvement strategy in future. Objectives: After studying this unit, you will be able to: · Define organization development. · Explain the characteristics of OD. · Discuss the categories of OD programme. · State the goals of OD. · Distinguish between OD and Management Development · Explore the problems in OD. 3.2 Definitions Organization Development (OD) is a response to change, a complex educational strategy intended to change the beliefs, attitudes, values and structure of organization so that they can better adapt to new technologies, markets, and challenges, and the dizzying rate of change itself. (Bennis, 1969). OD can be defined as a planned and sustained effort to apply behavioural science for system improvement, using reflexive, self-analytic methods. (Schmuck and Miles, 1971)

Organizational development is a process of planned change- change of an organization’s culture from one which avoids an examination of social processes (especially decision making, planning and communication) to one which institutionalizes and legitimizes this examination. (Burke and Hornstein, 1972) The aims of OD are: 1) Enhancing congruence between organizational structure, processes, strategy, people, and culture; 2) Developing new and creative organizational solutions; and 3) Developing the organization’s self-renewing capacity (Beer, 1980). Organization development is an organizational process for understanding and improving any and all substantive processes an organization may develop for performing any task and pursuing any objectives…. A “process for improving processes” – that is what OD has basically sought to be for approximately 25 years (Vaill, 1989) “Organizational development is a set of behavioural science-based theories, values, strategies, and techniques aimed at the planned change of the organizational work setting for the purpose of enhancing individual development and improving organizational performance, through the alteration of organizational members’ on-the-job behaviours.” (Porras and Robertson, 1992) “OD is a systematic application of behavioral science knowledge to the planned development and reinforcement of organizational strategies, structure, and processes for improving an organization’s effectiveness.” (Cummings and Worley, 1993) “Organization development is a planned process of change in an organization’s culture through the utilization of behavioural science technologies, research, and theory.” (Burke, 1994) As you can see, these definitions overlap a great deal (that’s encouraging), and contain several unique insights (that’s enlightening). All authors agree that OD applies behavioural science to achieve planned change. Likewise, they agree that the target of change is the total organization or system and that the goals are increased organizational effectiveness and individual development. Collectively, these definitions convey a sense of what organization development is and does. They describe in broad outline the nature and methods of OD. There is no set definition of OD and no agreement on the boundaries of the field, that is, what practices should be included and excluded. But these are not serious constraints given that the field is still evolving, and that practitioners share a central core of understanding as shown in the preceding definitions.

we mean involving large numbers of people in building the vision of tomorrow. serious business. and shared picture of the nature of the products and services the organization offers. For empowerment to become fact of life.” This definition is lengthy. through an ongoing. we mean that organizational change and development takes time. but as one that includes characteristics we think are important for the present and future of the field. We will explain this definition in some detail. Most OD programs that fail do so because top management was ambivalent. There is no “quick fix” when it comes to lasting organizational improvement. The phrase led and supported by top management states an imperative: Top management must lead and actively encourage the change effort. By learning processes. the ways those goods will be produced and delivered to customers. it is more accurate to describe “improvement” as a never-ending journey of continuous change. we mean those processes through which organization members develop a viable. By long-term effort. it must be built into the very fabric of the organization-its strategy. to improve an organization’s visioning. but it includes a number of components that we consider essential. “Organization development is a long-term effort. Organizational change is hard. Top management must initiate the improvement “journey” and be committed to seeing it through. led and supported by top management. we mean those leadership behaviours and human resource practices that enable organization members to develop and use their talents as fully as possible toward individual growth and organizational success. where new and expansive patterns of thinking are nurtured. and organizational learning. By visioning processes.several years in most cases. lost its commitment. Visioning means creating a picture of the desired future that includes salient features of the human side of the organization and then working together to make that picture a reality. it includes pain and setbacks as well as success. learning. team.Now let’s turn to our definition of organization development. and culture. where . listening. and what the organization and its members can expect from each other. then another moves it to yet a higher plateau of effectiveness. coherent. In fact. we mean those interacting. developing the strategy for getting there. By empowerment. and making it happen. structure. including action research. Peter Senge describes learning organizations as “… organizations where people continually expand their capacity to create the results they truly desire. empowerment. or became distracted with other duties. and problem-solving processes. and self-examining processes that facilitate individual. collaborative management of organization culture-with special emphasis on the culture of intact work teams and other team configurations-using the consultantfacilitator role and the theory and technology of applied behavioural science. We do not propose it as the “right” definition. processes. One program or initiative moves the organization to a higher plateau. By empowerment processes.

make decisions. By including culture so prominently in our definition. (d) that has worked well enough to be considered valid and. think. So culture consists of basic assumptions. solve problems. Collaborative management of the culture means that everyone. and feel-that is why culture change is necessary for true organizational improvement. and problem-solving processes. Processes are relatively easy to change. Edgar Schein clarifies the nature and power of culture in his definition: “Culture can now be defined as (a) a pattern of basic assumptions. widely shared vision of a desired future creates the best climate for effective problem-solving by all the organization’s members. Just as visioning. and continuous learning the organization is bound to succeed. we mean. Still. not just a small group. and take actions on problems. and artifacts. so they are the place OD programs often begin – getting people to stop doing things one way and start doing them a different way. (b) invented. one of wide-spread participation in creating and managing a culture that satisfies that wants and needs of individuals at the same time that it fosters the organization’s purposes. We believe that when the culture promotes collaboration. beliefs. Our definition also places considerable weight on organizational processes. Michael Beer’s definition called for “developing new and creative organizational solutions”. and processes makes each important. has a stake in making the organization work. learning. But change becomes permanent when the culture changes and people accept the new ways as the “right” ways. so is managing the culture. Processes are how things get done. expectations. attitudes. first.collective aspiration is set free. and norms of behaviour that are viewed as the correct way to perceive. empowerment. values. empowerment. norms. in contrast to having only a select few involved. and each influences the others. sentiments.” Problem-solving processes refer to the ways organization members diagnose situations. and problem-solving processes are opportunities for collaboration in organization development. And second. managing the culture should be a collaborative business. By ongoing collaborative management of the organization’s culture. empowerment. The reciprocal influence among culture. or developed by a given group. commitment. We believe solutions to problems are enhanced by tapping deeply into the creativity. that one of the most important things to manage in organizations is the culture: the prevailing pattern of values. vitality. therefore (e) is to be taught to new members as the (f) correct way to perceive. . and common purposes of all members of the organization. and feel in relation to those problems. structure. learning. (c) as it learns to cope with its problems of external adaptation and internal integration. Empowerment means involving people in problems and decisions and letting them be responsible for results. activities. culture is of primary importance. discovered. and where people are continually learning how to learn together. assumptions. and we highlight the importance of visioning. and challenges in the organization’s environment and its internal functioning. interactions. we affirm our belief that culture is the bedrock of behaviour in organizations. opportunities. We further believe that having compelling. strategy. think.

Further. members are trained in competencies such as planning.By intact work teams and other configurations. 2. manufacturing. much rework. When one function finished with its part of the project. here are the primary distinguishing characteristics of organization development: 1. constantly shifting teams will be the dominant configuration for getting work done. and then disbanded with the people going on to new tasks. engineering. Temporary. team culture can be collaboratively managed to ensure effectiveness. In addition to team building and role and goal clarification. To summarize. Specifically. hiring. OD focuses on culture and processes. The thesis of Liberation Management is that contemporary bureaucratic structures with their functional specialties and rigid hierarchies are all wrong for the demands of today’s fast-paced market place. we recognize that teams are central to accomplishing work in organizations. This method resulted in loss of synergy. We think teams are the basic building blocks of organizations. But in many organizations today. OD encourages collaboration between organization leaders and members in managing culture and processes. such as design. Team building and role and goal clarification interventions are standard activities in OD programs directed toward intact work teams. The old method was to have functional specialists work on the problem sequentially. The results are usually highly gratifying both for the team members and for the organization. and using management information. Tom Peters predicts that the work of tomorrow (most of which will be “brain work”) will be done by ad hoc teams brought together to accomplish a task. Today’s organizations increasingly use ad hoc teams that perform a specific task and disband when the task is completed. When teams function well. The definition we have just analyzed contains the elements we believe are important for OD. and training. These self-directed teams assume complete responsibility for planning and executing work assignments. self-directed teams control performance appraisals. In Liberation Management. Over time. wasted time. He uses the terms ‘multifunctional projectization’ and ‘horizontal systems’ to describe these teams and their work. and procurement. according to Peters. firing. The most prevalent form of teams in organizations is intact work teams consisting of superior and subordinates with a specific job to perform. maintaining quality control. The current method for getting complex tasks done in organizations is to assemble a cross-functional team comprised of members from all the functional specialities required to get the job done. . the process “threw the results over the wall” to the next functional unit. multifunctional. and considerable antagonism among the separate functional specialists. individuals and the organization function well. intact work teams do not have a boss in the traditional sense-the teams manage themselves.

Long-range Change: OD efforts are not meant for solving short-term. OD efforts take an organization as an interrelated whole and no part of it can be changed meaningfully without making corresponding changes in other parts. 10. dynamic and adaptive system. OD takes a developmental view that seeks the betterment of both individuals and the organization. they are ongoing. 3. This ‘planned’ emphasis separates OD efforts from other kinds of more haphazard changes that are frequently undertaken by organizations. rather. OD views organization improvement as an ongoing process in the context of a constantly changing environment. or isolated problems. 4. OD relies on an action research model with extensive participation by client system members.3 Characteristics of OD 1. rather than focusing attention on individuals. interactive. 5. The concept of comprehensive change is based on the systems concept-open. Comprehensive Change: OD efforts focus on comprehensive change in the organization. 4. Thus. temporary. Teams of all kinds are particularly important for accomplishing tasks and are targets for OD activities. so the methods of attaining these goals should also change. collaborators. OD focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. 6. so that change is easily observed. Dynamic Process: OD is a dynamic process and includes the efforts to guide and direct changes as well as to cope with or adapt changes imposed. An overarching goal is to make the client system able to solve its problems on its own by teaching the skills and knowledge of continuous learning through self-analytical methods. OD focuses on the elevation of an organization to a higher level of functioning by improving the performance and satisfaction. and cyclic processes. Planned Change: OD is a strategy of planned change for organizational improvement. 3. OD efforts are not one-shot actions. 8. OD practitioners are facilitators. and co-learners with the client system. Participation and involvement in problem-solving and decision-making by all levels of the organization are hallmarks of OD. 9. OD focuses on total system change and views organizations as complex social systems. 7. Rather. It recognizes that organizational goals change. Attempting to create “win-win” solutions is standard practice in OD programs. . 2.3.

A change agent in OD process does not just introspect the people and introduce changes. all types of experience requiring Organization Development efforts may be grouped into three categories: (a) Problems of destiny. This is done to arrive at certain desirable outcomes that may be in the form of increased effectiveness. He shares a social philosophy about human values. Two important elements of Organization Development are. and mutual influence. and then. and integrate individual and organizational goals. There is a close working relationship between the change agent and the target organizational members to be changed. (b) The interventions are primarily directed towards problems and issues identified by the client group. Key areas are the normative type of model. growth. the collaborative relationships between the scientists. or catalyst. joint goals and means. He designs intervention strategies based on these data. the importance and centrality of goals and objectives and the different role requirements of the consultant change agent vis-à-vis the clients. participation. yet following features are common to most of the programmes: (a) The client is a total system or major subunit of total system. problem-solving. evaluates these data. Although Organization Development Programmes vary. 7. Participation of Change Agent: Most OD experts emphasize the need for an outside. it is a programme with a purpose that is to guide present and future action. 3. (b) Problems of human satisfaction and development. identity. and adaptability for the organization as a whole. first. Action research is the basis for such intervention. Emphasis on Intervention and Action Research: OD approach results in an active intervention in the ongoing activities of the organization. the element which links Organization Development with the scientific method of inquiry and. and (c) Problems of organizational effectiveness. OD attempts to provide opportunities to be ‘human’ and to increase awareness. collects relevant data. rather. . he conducts surveys. The relationship involves mutual trust. and revitalization. takes actions for intervention. The change agent is a humanist seeking to get a humanistic philosophy in the organization. Normative Educational Process: OD is based on the principle that ‘norms form the basis for behaviour and change is a re-educative process of replacing old norms by new ones’. second. practitioners and the client laymen. 6. further more.5. At the individual level.4 Categories of OD Programmes In general. third party change agent. Organization Development is inextricably linked with action. They discourage ‘do it yourself’ approach.

This Organization Development progrmmes. and (d) The interventions are based on behavioural science theory and technology. with the authority of knowledge and competence. 3. (g) To increase the sense of ‘ownership’ or organization’s objectives throughout the work force. (b) To supplement the authority associated with role or status. problem solving climate throughout an organization. should begin with a clear-cut statement of specific objectives and criteria for determining if these objectives have been met from the stand point of the employee/employees simply as team member or for the total group.6 OD and Management Development . (e) To make competition more relevant to work goals and to maximize collaborative efforts. (f) To develop a reward system which recognizes both the achievement of the organization’s goals (profit or service) and development of people. (j) To improve effectiveness of the organization. (d) To build trust among persons and groups throughout an organization. (c) To locate decision making and problem-solving responsibilities as close to sources of information as possible.(c) The interventions are directed towards problem-solving and improved functioning for the client system. (h) To help managers to manage according to relevant objectives rather than according to past practices or according to objectives which do not make sense for one’s area of responsibility. like other normative re-educative programmes. its underlying theory and assumptions and some of the pitfall and challenges in attempting to improve organizations through behavioural science.5 Goals of Organization Development Following are the generally accepted goals of OD: (a) To create an open. 3. (i) To increase self-control and self-direction for people within the organization. We need to examine carefully the techniques of Organization Development.

then would the results be functional for managing organization activity in a competitive world? Thus. and techniques adopted in both may overlap to some extent. accomplishments. management development has been defined as follows: “Management development is all those activities and programmes when recognized and controlled. it is beneficial to make a comparison between OD and Management Development (MD) as both have some common objectives that betterment of an organization. According to him. Miner has drawn difference between two processes. according to him. OD tries to fit the organization to the men. let us define management development as we have seen the definition of OD. organization. not on the and managers to perform managers. The term ‘development’ refers broadly to the nature and direction of change induced in personnel through the process of training and education. He feels that management development reinforces the above four qualities and helps managers cultivate and develop the will to manage. he appears to be biased against OD and the real distinction between OD and MD lies in between these two extremes. with their existing objectives and structure.At this stage. However. there are four attributes of effective managers in large organization. While the latter aims at developing the mangers individually for the accomplishment of better performance in organizational setting. more attention to peer-groups. Focus . Difference between Management Development and OD Factors Objectives Management Development Organization Development Increasing manager’s Changing the nature of the contributions to goal organization. and (iv) a sense of responsibility. Train and equip employees Focus on design.” Organization development differs from management development. focus on achieving better in existing improvement in design. (iii) assertiveness. Burke and Schmidt have made this difference more clear which is presented in the following table. If OD efforts train people towards anti-authority value. less individual competitiveness. Based on this. and greater display of feelings and emotions. (ii) competitiveness. have substantial influence in changing the capacity of the individual to perform his assignment better and in so doing are likely to increase his potential for future management assignment. the former goes one step further and purports to change the entire organizational climate where the mangers work. Before making a comparison between the two. whereas OD efforts within organizations may cause confusion and chaos for incoming human resources if the organization is underplayed and the humanistic dimension alone is emphasized. MD tries to fit the men to the organization. These are: (i) a positive attitude towards authority.

8 Problems in Organization Development Organization development. 4. Long-range strategy for organizational innovation and renewal. it is quite suitable for improving organizational performance on long-term basis. By 70s.7 Role of Organization Development Organization development. To increase the level of self and group responsibility in planning and its implementation. confrontation techniques. Thus. as a long-term strategy for organizational change. To create an environment in which authority of assigned role is augmented by authority based on knowledge and skills. and laterally. 2. plays key role in organizational improvement. has invited sharp criticism as a strategy to increase organizational viability and effectiveness because many OD programmes have failed. The basic problem in a change effort which is not comprehensive is that it does not work properly unless there is a proper change in the internal environment of the organization in which people work. To increase the level of enthusiasms and personal satisfaction at all levels of the organization. substantial disenchantment with OD became evident because of many controversial OD techniques like sensitivity training. 7. however. 6. Problem-solving approach. Since OD attempts to bring comprehensive change in the organization. 3. To increase the openness of communications in all directions-vertically. etc. horizontally.Approach Time Educative and training Short-range. 3. OD can be utilized for the following results in the organization: 1. In early 60s. Much of the enthusiasm created at the beginning of OD programmes vanished over the period of time. To increase the level of trust and mutual emotional support among all organization members. To treat each human being as a complex person with a complex set of needs important in his work and his life. 5. 3. Specialist No special requirement. Research studies have also failed to conclude . OD became quite successful with many professional consultants offering high services and programmes to various organizations. To place emphasis on humanistic values and goals consistent with these vales. however. Trained specialists required.

particularly in bottom-line ones. 5. 2. some specific efforts are required. For example. However. in order to make best use of OD efforts. it fails even as a long-term strategy. it can be visualized that OD itself may not be dysfunctional but application may be.significant contributions of OD in all organizations. and (ii) failure to correctly model appropriate personnel behaviour in the programme. Hence. Evans has identified three factors which have been responsible for the failure of OD programmes: (i) failure of the management consultant group to correctly tailor the programme to actual needs of the organization. and (iii) failure to increase employee motivation through participation and development of personal growth and self-esteem. Therefore. 4. Only fully competent OD consultant should be pressed for the service and he should develop understanding with internal change agents. In general. Some of these efforts are as follows: 1. Resistance to change is a natural phenomenon and OD puts undue pressure to change. 4. it may be emphasized that OD programmes are likely to fail when these are not programmes and hence failure. OD fails to motivate people with low level of achievement needs. it is useless to try OD. Enough time should be allowed so that the effects of OD programme are realized. There should be proper use of OD interventions. OD can not be taken as panacea for curing all organizational problems. It can be seen that many of these criticisms are based on reality and experience. . 3. There is discrepancy between ideal and real situations. There should be genuine support of OD programme from top management. 2. If an organization is laden with these people. OD is criticized on the following lines: 1. Therefore. OD programmes are often quite costly. and only large organizations can afford this luxury without any guarantee of positive outcome. These should be based on the specific needs of the organization. 3. Organization must formulate the objectives of OD programme very clearly and specifically. Thus. People realized its dysfunctional aspects only when many OD efforts failed. OD tries to achieve ideal without taking into account real. OD makes people unfit for the real organizations world because no organization can fully adopt open system concept. 5.

_____________is a short-term strategy. ––––––––– is a process which includes leadership behaviours and human resource practices. Top management 2.11 Answers to SAQs and TQs SAQs: 1. Organization development should be led and supported by –––––––. Explain the various characteristics of OD. The participative. 3. What are the problems involved in the implementation of OD? 3. 4. ––––––– is associated with “Liberation Management”.Self Assessment Questions 1. Distinguish between ‘organizational development’ and ‘management development’.10 Terminal Questions 1. problem-focused ‘nature of OD’ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. But OD aims at changing the entire organizational climate where the managers work. Tom Peters 3. Define OD. collaborative. 5. 2. Who is associated with the “Learning Organizations”? 5. Management development aims at developing the managers individually. 3. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. State the various roles of OD. Explain its salient features. 2. 3. There is no ‘quick fix’ to organizations’ problems. OD focuses on culture and processes. OD is the ultimate remedy for organizational improvements and developments. Empowerment . 4.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. 3.

Refer section 3.Organization Development – Interventions Unit-04.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 3.5 Leadership Development 4. Refer section 3.2 2. Peter Senge 5.3 3. MU0002-Unit-04.1 Introduction Objectives 4.6 4.3 Process Consultation 4. Management development Answers to TQs: 1.4. Refer section 3.7 5. Refer section 3.Organization Development – Interventions Structure: 4.6 Team-building .2 Survey Feedback 4.4 Grid Training 4.

This classification of OD interventions is very comprehensive and many activities do not strictly form the part of OD as process of organizational improvement but other methods of improving the performance of the organization. A meaningful classification of OD interventions may be based on the improvement in the behaviour of people in the organization as OD is basically a behavioural approach. For example.” There are various OD interventions and they are classified in different ways.10 Summary 4. process consultation. techno-structural activities. Further. team-building.1 Introduction OD interventions refer to various activities which a consultant and client organization perform for improving organizational performance through enabling organizational members better manage their behaviour.7 Inter Group Development 4. interpersonal level. various consultants and practitioners have different opinions about the activities which can be included in interventions.4. such a classification of interventions may not put them into mutually exclusive categories as a particular intervention may be applied at more than one level.8 Change Agents 4.11 Terminal Questions 4. mediation and negotiation activities. Thus. Interventions constitute the action thrust of organization development. French and Bell have suggested twelve families of OD interventions: diagnostic. French and Bell have defined OD intervention as: “Sets of structured activities in which selected organizational units (target groups or individuals) engage with a task or a sequence of tasks where the task goals are related directly or indirectly to organizational improvement. the classification of OD interventions shows variation. education and training. and organizational level. interventions may be required to change people at all these levels.12 Answers to SAQs and TQs 4. Therefore. inter-group activities. management grid. inter-group level. People’s behaviour may be relevant to understand at individual level. group level. the classification appears to be more relevant because it may specify the . and organizational culture. work group. survey feedback. However. they make things happen. many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others. Nevertheless.9 Role of Change Agents Self Assessment Questions 4.

other techniques like process consultation. · Realize the importance of team-building. and peer interaction facilitation. OD efforts were attempted through sensitivity training. peer goal emphasis. 4. . and survey feedback method. · Describe process consultation.building. Institute for Social Research (ISR) of University of Michigan. managerial goal emphasis. Historically. The basic objectives of survey feedback are as follows: 1.range of change that an organization requires. peer work facilitation. Subsequently. ISR has prepared a questionnaire which includes questions on leadership – managerial support. you will be able to: · Describe survey feedback. developing action plans based on feedback. USA developed a comprehensive questionnaire for conducting survey in different aspects of an organization. To assist the organization in diagnosing its problems and developing action plan for problemsolving. team. and follow up. · Explain grid training. The questionnaire may include different aspects of organizational functioning. Our further discussion follows this development. 1.2 Survey Feedback Besides laboratory training (sensitivity and grid). have been added. · Role of change agents. Objectives: After studying this unit. peer support. and participative goal-setting which has become more popular as management by objectives. the other major thrust in the development of OD has come from survey research and feedback of data. 2. managerial work facilitation. Process of Survey Feedback Survey feedback usually proceeds with sequential activities involving data collection. To assist the group members to improve the relationships through discussion of common problems. Though some type of survey method was prevalent in various organizations earlier. feedback of information. grid training. Data Collection: The first step in survey feedback is data collection usually by a consultant based on a structured questionnaire.

effectiveness of survey feedback depends on two factors. it is of no use unless follow-up action is taken based on the . and satisfaction with the work group. feedback may be given in the form of a written summary of findings. It is cost-effective means of implementing a comprehensive OD programme making it a highly desirable technique. questionnaire used and method adopted for its administration should be reliable and valid. Follow-up Action: Survey feedback programme is not meaningful unless some follow-up action is taken based on the data collected. and general management. data are classified. rather. After the questionnaires are completed. 2. In oral system of feedback. It generates great amount of information efficiently and quickly which can be used in solving problems faced by the organization and its members. 3. all attempts to diagnose the problems will be abortive and futile. even if valid and reliable information is collected. control within the company. it should be constructive and suggestive. satisfaction with the job. satisfaction with the supervisor. decision-making. 2. If it is biased. tabulated.organizational climate-communication with the company. Decision-making and problem-solving abilities of organization can be improved tremendously because this approach applies the competence and knowledge throughout the organization and the problems faced by it. satisfaction with the pay. One such follow-up action may be to advise the participants to develop their own action plans to overcome the problems revealed through a feedback or as is more commonly the case. Whatever the method of giving feedback is adopted. Evaluation of Survey Feedback Survey feedback provides a base for many managerial actions which has been confirmed by various research studies. follow-up action may be in the form of developing some specific OD interventions particularly process consultation and team-building. 3. motivation. threatening and emotion-hurting as survey feedback is aimed at identifying weaknesses which must be overcome through follow-up actions and not the fault-finding technique for criticism. First. Alternatively. co-ordination between departments. and satisfaction-satisfaction with the company. it is provided through group discussion or problem-solving sessions conducted by the consultant. The feedback may be given either orally or in a written form. However. Second. In particular. by the consultant. survey feedback contributes in the following manner: 1. The questionnaire is administered personally either by the members of consulting firm or by organization’s personnel. feedback is given to the persons who have participated in the fulfilling up of questionnaire. Feedback of Information: After the data are analyzed. and analysis is made to arrive at some meaningful conclusions.

C are communicated to them with a view that they co-operate with the consultant. Edgar Schein. Select the Setting and the Method: It involves a clear-cut understanding of where and how the consultant will do the job that is required.C has defined it as follows: “The set of activities on the part of the consultant which help the client to perceive. and spelling out services. etc. spelled out at the initial stage. To bring desired change in the various organizational processes like leadership. 4. the consultant is introduced to the organizational members and basic objectives of the P. and inter-group co-operation and conflicts. group decision-making and problemsolving. 2. 4. Gather Data and Make a Diagnosis: Information is collected from various sources thorough the use of questionnaires. Information collected is processed to diagnose the problems and their underlying causes. 2. group norms. At this stage.C is that the consultant works with individuals and groups in the organization to help them learn about human and social processes and to solve problems that stem from process events. . To understand how various organizational processes can be linked to objective achievement in the organization. time.C) is a technique for intervening in an ongoing system.C are as follows: 1. the leading writer and consultant on P. The basic content of P. understand.” The basic objectives of P. it provides base for action for change. This data gathering occurs simultaneously with the entire consultative process. A survey feedback is not a technique in itself for change.C programme of OD. and interview about the problems. the client’s expectations and hoped-for results are also decided.3 Process Consultation Process Consultation (P. Initiate Contact: This is beginning stage of P. client and consultant enter into agreement covering various aspects of consultancy services like fees. roles and functions of group members.C in which the client makes initial contact with the consultant with a view to solve the problems faced by the organization which cannot be solved by existing processes or resources. 3. communication. 1. and act upon the process events which occur in the client’s environment. At this stage. observations. Steps in Process Consultation Schein has suggested following specific steps which the consultant would follow in a P.information. Define the Relationship: At this stage.

both these problems may be overcome by engaging a suitable consultant and developing willingness among the members for change. It is a comprehensive and systematic OD programme which aims at individuals.4 Grid Training Grid training is basically based on grid organization development developed by Blake and Mouton. P. Though he is involved only in suggesting the various changes in the processes. enabling individuals and groups to assess their own strengths and weaknesses. However. focuses on skills. Reduce Involvement and Terminate: When the work of P.C is completed. Intervene: At this stage. feedback.5. However. group. significant correlation between the outcomes has not been found.C is very effective intervention for organizational improvement.C programmes. To evaluate the styles of leadership and techniques of participation to produce desirable results. In the review of various P. 3. P. From this point of view. To study the organization as an interactive system and apply techniques of analysis in diagnosing its problems. 2. 4. like other OD intervention techniques. and processes necessary for effectiveness at the individual.C is also not free from criticisms. Process of Grid Training The basic content of grid organization development is managerial grid as discussed. knowledge. inter-group. Evaluation of Process Consultation: Process consultation is quite in-depth activity of OD in which the consultant plays a major role. It utilizes a considerable number of instruments. . Another problem may emerge at the level of the organization and its members in terms of how they inculcate the new processes and culture as suggested by the consultant. coaching. The grid organization development consists of six phases. Its specific objectives are as follows: 1. To understand the importance and rationale of systematic change. groups. and the organization as a whole. and total organizational levels. The whole orientation is to develop managerial style through the application of behavioural science knowledge. and/or structural change. he assists the organizational members to incorporate those changes. the consultant disengages from the client organization by mutual agreement but leaves the door open for future involvement. One basic reason for this phenomenon may be the consultant’s inability to steer the organization out of troubles. 6. the consultant intervenes in the organizational processes by using different interventions like agenda-setting.

objective-setting. The members of the organization are trained for achieving this excellence. the focus is on inter-group behaviour and relations. and problemsolving are also developed. Teamwork Development: The focus in this stage is to develop teamwork by analyzing team culture. 6. grid training has some positive contributions for organizational effectiveness. Developing Ideal Strategic Corporate Model: At this stage. Grid training programme is criticized on the basis that it lacks contingency approach and. 3. grid training is a non-rigorous method. Managerial grid: It covers various aspects of assessing managerial styles. The analysis will bring out the shortcomings that may be there. 4. Though research studies on the application of grid training are not many. communication skills. the focus shifts to the total organization and to develop skills necessary for organizational excellence. The skills relating to planning. therefore. Each group separately analyses the ideal inter-group relations. 5. and teamwork. Action steps to move towards the ideal are developed and assigned to individuals who may be engaged in building co-operative inter-group relationships. the various efforts from phase 1 to phase 5 are evaluated and critical analysis is made. Systematic Critique: In this stage. Inter-group Development: At this phase.1. The action is designed to identify the characteristics of the ideal organization. They have maintained that “managerial and team effectiveness can be taught to managers with outside assistance. 4. Further. Evaluation of Grid Training Most of the support of grid training has come from its originators-Blake and Mouton. 2. it discounts reality. some of them have not supported the claims made by Blake and Mouton.5 Leadership Development . The thrust is on moving groups from conflict to co-operation. it appears that this type of educational strategy can help to make significant contributions to organizational effectiveness. Each group may be given assignment to evolve strategy for making ideal organization with the help of the consultant. The strategy is then implemented. Implementing the Ideal Strategic Model: The implementation stage includes the building of the organization on the model of ideal organization on the basis of concepts developed under stage 4. in spite of these criticisms. traditions. they maintained the same stand. Furthermore.” In a later work. and alike. In this light. the various programmes may be redesigned. problem-solving. The individuals try to learn to become managers by practice.

The organization must deal with the practical impact of unpleasant change. while at the same time recognizing that tough decisions need to be made. 4. In organizations characterized by poor leadership. employees learn that leaders will act in indecipherable ways and in ways that do not seem to be in anyone’s best interests. therefore. competence. employees expect nothing positive. French and Bell have opined that “probably the most important single group of interventions in the OD are the team-building activities the goals of which are the improvement and increased effectiveness of various teams within the organization. how synergy is generated through team-work. lead. brings hope for better times in the future. employees will perceive leadership as supportive. Poor leadership means an absence of hope. employees will look towards the leaders for a number of things. We can call these Preparing For the Journey. We will look more carefully at each of these. As against these. problems in . teambuilding is the most important. Slogging Through The Swamp. and After Arrival. let us consider the life cycle of a team. The existence of this trust. during and after change implementation is THE key to getting through the swamp. which. Before going through how team-building exercise can be undertaken to develop effective teams. if allowed to go on for too long. it may be too late. widely accepted. if haven’t established a track record of effective leadership. The best way to summarize is that there is a climate of trust between leader and the rest of the team. you need to be aware that there are three distinct times zones where leadership is important. The Role of Leadership In an organization where there is faith in the abilities of formal leaders. The literature on the subject indicates that the nature of the change is secondary to the perceptions that employees have regarding the ability. In a climate of distrust. Also during these times of change. employees will expect effective and sensible planning. clearly the most important determinant of "getting through the swamp". are closely associated with a very few advocates and practitioners. have no faith in the system or in the ability of leaders to turn the organization around. confident and effective decision-making. and credibility of senior and middle management. is the ability of leadership to…well.When change is imposed (as in downsizing scenarios). but more importantly. If you are to manage change effectively. Unfortunately. During drastic change times. and that makes coping with drastic change much easier.” A possible reason for this phenomenon is that people in the organization work in groups (teams) and the effectiveness of these groups ultimately determine organizational effectiveness. concerned and committed to their welfare. complete communication that is timely. results in an organization becoming completely nonfunctioning. Leadership before.6 Team-building Various OD interventions discussed so far have their specific implications for OD and. For example. by the time you have to deal with difficult changes. and applied OD intervention for organizational improvement. and regular. must labor under the weight of employees who have given up.

These typical stages of life cycle of a team are described below: 1. They share personal information. they often pass through several stages as they learn to work together as a team. they learn to handle complex problems that come before the team. Sooner or later. Forming: At the first stage of the life cycle. At this stage. team members start settling.team-work.1: Life Cycle of a Team Though these are not followed rigidly. These stages are the result of a variety of questions and issues that team members face such as “who will be members of the team?” “Who will perform what functions?” “Who will contribute what?” “What rules will be followed?” “How can conflicts among members be resolved?” and so on. Storming: After the forming stage which is mostly related to perceiving and assessing each other. Performing: When team members interact among themselves on the basis of norms that have emerged in the team. These stages are: forming. and adjourning as shown below: Fig. group norms emerge to guide individual behaviour which form the basis for co-operative feelings and behaviour among members. storming. and arguing for appropriate strategies to be adopted for achieving team’s goals. performing. each team has to be adjourned. and begin to turn their attention to the group tasks. 3. and tasks are accompanied efficiently. and features of effective team so that team-building exercises focus more sharply on developing effective team. 4. team members get introduced to each other if they have not interacted earlier. Adjourning: Adjourning is the end phase of cycle of a team. The . jockeying for relative control. 2. even the most successful teams as they have completed their mission. different members may experience varying degree of tension and anxiety out of this interaction pattern. The team begins to move in a co-operative fashion and a tentative balance among competing forces too is struck. interaction among team members is often cautious especially when they are new to one another. Functional roles are performed and exchanged as needed. 5. because of individual differences. members start interaction among themselves in the form of competing for status. they do represent a broad pattern that may be observed and predicted in many settings across team’s time together. start to accept others. Life Cycle of a Team When a number of individuals begin to work at interdependent jobs. 4. At this stage. norming. Norming: After storming stage.

These students may be called loafers (not attaching the same connotation which is attached with the term loafer in our social phenomenon) who frequently miss the project group’s meetings. However. the team would be effective. committee.” Thus. that is. synergistic effect is not automatic but depends on the complementarity of different elements that are put together and the way they interact among themselves. In such an assignment. a team is created to undertake a task which requires a variety of skills and single individual cannot perform that task alone. the complementarity among members is achieved. The concept of synergy is quite popular in strategic management and it is defined as follows: “Synergy is the process of putting two or more elements together to achieve a sum total greater than the sum total of individual elements separately. Social Loafing Social loafing is antithesis of synergy in team-work which suggests that people working together on a common task may actually decrease their individual efforts. intense social relationship among members comes to an end. In fact. . and still expect to share the credit and obtain the same marks from the professor since he will be concerned with determining who worked and who did not.adjournment phase takes place in the case of those teams which are created for some special purposes like task force. This effect can be described as 2+2=5 effect. team-work does not necessarily spurt group efforts. This phenomenon may happen in teams in work organizations too. After the adjournment of the team. concept of stages is significant in the context of the nature of problem which team members are likely to face in team-work. in one experiment. A simple phenomenon of social loafing may be observed in a group assignment to students during their study. They rely on the fact the more reliable members will complete the project without their help. To the extent. Other types of team like a department in an organization run on the basis of some permanency though there may be changes in team members. fail to perform their assigned tasks. It is not necessary that all teams follow the rigid pattern prescribed here and the similar problems they face at each stage because each team is different in some respect based on the type of members and problems and functions assigned. etc. other factors remaining the same. students find that one or two students do not put their weight for the completion of the project. Putting the concept of synergy in teamwork means members of the team are complementary to each other and they contribute positively to one another. For example. Synergy in Team-work Another important feature of a team is the concept of synergy which generates in team-work and the understanding of which helps in developing effective team. how a particular element affects another and is affected by it. and so on.

it was found that individuals’ total efforts were much higher than the group efforts. team members may not show high degree of enthusiasm and they will use only a part of their skills in performing the jobs. other factors remaining the same. If the organizational climate is not in tune with high achievement. 2. Skills and Role Clarity: For an effective team. it appears that there are many factors in an effective team. The phenomenon of social loafing can be minimized by constituting effective team for group performance. When the same individuals pulled on the rope of groups of three. In the above paragraph. Even if one member lacks behind. super-ordinate goals and team rewards. skills which are complementary to the team requirement and understanding of one’s own role as well as roles of other members. and attitudes. The possibility of occurring of social loafing in a team-work increases because of the following reasons: 1. we have mentioned that team effectiveness depends on the complementarity of team members. group efforts tend to slacken. Dropping of average output in group efforts indicates that some members of the group were not contributing as much as they did individually. Effective Team An effective team is one which contributes to the achievement of organizational objectives by performing the task assigned to it and providing satisfaction to its members. These factors are skills and role clarity. When the division of work cannot be accomplished properly and individual efforts are hard to determine. 2. Therefore. the individual average dropped down still lower68. Let us see how these factors make a team effective. 1. When the group is not cohesive with high output norms. Individuals were asked to pull alone as hard as possible on a rope attached to a strain gauge. A group is not merely an assemblage of individuals but there should be a feeling that they are members of the group and share common interests. goals. two things are required from its members. They averaged 138. team members may tend to contribute positively to the teamwork. Thus. From this statement. understanding of roles helps members to meet the requirement of one another thereby solving the problems which the team faces. Supportive Environment: A team loaded with skilled members cannot perform well if the organizational climate is not supportive for that. individual members do not contribute to the fullest extent. While skills are relevant for job performance.6 pound of pressure while tugging on the rope. group of eight. he may tend to affect others because of chain reaction just like a rotten apple injures its companions. .2 pounds. managers at higher levels particularly at the top level should set organizational climate and culture which enthuse team members to put their best. supportive environment.

3. Super-ordinate Goals: Super-ordinate goals are those which are above the goals of a single team or a single individual. An individual works better if he is able to link how his goal attainment leads to the attainment of a higher-level goal. These super-ordinate goals, then, serve to focus attention, unify efforts, and stimulate more cohesive team efforts. 4. Team Rewards: Team performance depends on how reward is linked to team performance and how members perceive this linkage. If team members perceive that reward to contingent on team performance, they will put their maximum. Rewards of both types- financial and nonfinancial-should be taken into consideration. Further, organizations need to achieve a careful balance between encouraging and rewarding individual initiative and growth and stimulating full contributions to team success. Innovative non-financial team rewards for responsible behaviour may include the authority to select new members of the group, make recommendations regarding a new supervisor, or propose discipline for team members. The positive aspect of all these factors leads to team effectiveness and team members share common values regarding product quality, customer satisfaction, and share the responsibility for completing a project on schedule. Katzenbatch and Smith, management consultants, have suggested the concept of real team and they feel that this concept is relatively unexploited despite its capacity to outperform other groups and individuals. They define four characteristics of real teams: small size; complementary skills; common purpose, goals, and working approach: and willingness to be held mutually accountable. Real teams can be created and sustained by: 1. Selecting members for their complementary skills and potentials; 2. Developing clear rules of conduct and challenging performance goals; 3. Establishing a sense of urgency right from the first meeting. 4. Providing substantial time together in which new information is constantly shared; and 5. Providing positive feedback, recognition, and rewards. Team-building Process: Team-building attempts to improve effectiveness of the team by having team members to concentrate on: 1. Setting goals and priorities for the team. 2. Analyzing how team’s goals and priorities are linked to those of the organization. 3. Analyzing how the work is performed. 4. Analyzing how the team is working, and

5. Analyzing the relationships among the members who are performing the job. For achieving these, the team-building exercise proceeds in a particular way as shown in figure.

Fig. 4.2: Process of Team-building Various steps of team-building process are not one-shot action, rather, they are repetitive and cyclical as indicated by arrows in the figure. 1. Problem-sensing: There are a number of ways in which problems of a team can be obtained. Often the team itself defines which aspects of team-building it wishes to work on. This problem can better be identified in terms of what is hindering group effectiveness. At this stage, generally most of the members come forward with their arguments as to what the real problems are. The view may be quite different ranging from the organizational problem, group problems to even personal problem. In problem identification, the emphasis should be on consensus. The consensus-seeking part of the process necessitates that each person becomes thoroughly aware and understand clearly the basic concepts of team-development. Much of the problems may be solved through effective communication and training sessions. 2. Examining Differences: The perception of people on an issue differs because of their differing backgrounds, such as, their value systems, personality and attitudes. The perception may be brought to conformity through the process of exercise on perception which involves a number of psychological exercises particularly on perceptual differences. The role of communication is important in this context because it will help in clarifying the actual problems to the members. 3. Giving and Receiving Feedback: The step of perceiving things and listening to each other may be relayed back to the members as there is a possibility that such processes may create tense situation in the group. Often, members report about the painful feelings that they have at the time of evaluation of their feelings. The discussion should continue until all members of the team have commented. The feedback should be given to the members about their feelings, about the issue, the way people talk about the issue, the stying with the topic or going off on tangents, who was talking more or who was talking less, who was trying to resolve the differences, etc. Such feedback generally provides members to evaluate the values but at the same time, also provides opportunity to understand themselves. The concept of Johari Window may also be applied. This suggests that even people are not fully aware of themselves. 4. Developing Interactive Skills: The basic objective of this process is to increase the ability among the people as to how they should interact with others and engage in constructive behaviour. Following are the examples of constructive and negative behaviours:

Constructive Behaviour: (i) Building: developing and expanding the ideas of others. (ii) Bringing in: harmonizing, encouraging others to participate. (iii) Clarifying: resting, ensuring, understanding, seeking relevant information. (iv) Innovative: bringing in new relevant ideas, information, feelings, etc.
Negative Behaviour

(i) Over talk: interrupting, talking together with speaker. (ii) Attacking: deriding, belittling, criticizing person. (iii) Negative: cooling, cynicism, undermining morale. At the time of discussion of feedback, people themselves take assignments to increase specific constructive behaviours and decrease specific negative behaviours. If this process is adopted several times, there is a strong possibility that members may learn constructive behaviours and leave negative behaviours. This is quite helpful in developing teamwork. 5. Follow-up Action: This is the final stage in team-building. At this stage, the total team is convened to review what has been learned and to identify what the next step should be. Follow-up action also helps in overcoming the drawback involved at the initial stages of teambuilding. It involves deciding who will take care of each area of the team’s responsibilities, and who will be responsible for team projects in a group that has not developed a satisfactory division of responsibility; clarifying and setting differences in perception concerning responsibility and authority in the team, with complex division of responsibility and authority among members. These attempts bring co-operative and supportive feelings among people involved in the team functioning. When this exercise is undertaken at the initial stage, it contributes positively towards the feelings of the people. However, to encourage and sustain such feelings, management should take such actions at regular intervals so that members feel reinforced and sustain their positive behaviour. Such actions will go a long way in shaping the organizational climate quite conducive to members for their efficient working. Evaluation of Team-building As mentioned earlier, team-building as an OD intervention has attracted maximum attention. Many research studies have also confirmed the positive contributions of team-building on the

. though. and how it believes the other group perceivers it. It helps in developing effective interpersonal relationships by stimulating the group members for that. and perceptions that groups have of each other. Differences are clearly articulate. the other group. this has been a subject to which change efforts have been directed. New member may find it difficult to adjust with the team because of his confusion over his roles in terms of task performance and building good relationships. As a result. 2. and the groups look for the causes of the disparities. It helps developing communication within the group and inter-group and overcoming many psychological barriers that block communication flow.7 Inter-group Development A major area of concern is OD is the dysfunctional conflict that exists between groups. Although there are several approaches for improving intergroup relations. etc. 3. listening. in different degrees. there have been calls for combining team-building with organization behaviour modification approaches. each group meets independently to develop lists of its perception of itself. team-building has been termed as one-sided effort and it suffers from the following limitations: 1. 4. However. One such suggestion is to use a task hierarchy to reinforce the team as it progresses up a behaviour skill hierarchy (for example. It focuses only on work groups and other major organizational variables such as technology. it is not that effective in isolation. It improves the organization’s problem-solving and decision-making ability. are not given adequate attention. The groups then share their lists. Team-building becomes a complicated exercise when there is frequent change in team members. and feedback skills). the groups can move to the integration phase – working to develop solutions that will improve relations. In this method. stereotypes. It seeks to change to attitudes. team-building contributes to the organizational performance in the following manner: 1. Therefore. team-building has a positive outlook. communicating. 2. Once the causes of the difficulty have been identified. after which similarities and differences are discussed. structure.organization’s outcomes. In spite of these problems. However. . one of the more Popular methods emphasize problem solving. monitoring. In general.

role-plays and instruments.These three roles are having been brief described below: Consultant A consultant is a professional (internal or external) who applies behavioral Science knowledge in an ongoing organization (or client system) with clear objectives of managing change and improving effectiveness. employees of the organization. internal staff specialists or managers when acting as change agents.9 Role of Change Agents The change agent may play different roles according to the need of organization development . enabling the client to let off steam: as the ignition to spark action. Outside consultants also may be prone to initiating more drastic changes – which can be benefit or a disadvantage – because they don’t have to live with the repercussions after the change is implemented. as the break for too quick action. Because they are from the outside these individuals an offer can offer an objective perspective often unavailable to insiders. Trainer A change agent needs to be a trainer and educator. and personnel. films. can now be created for further diagnosis and to begin to formulate possible alternative actions that will improve relations. . internal management often will hire the services or outside consultants to provide advice and assistance. changing (intervening) and refreezing. may be more thoughtful (and possibly cautious) because they to live with the consequences of their actions. group discussions. The consultant may fulfill a variety of functions. or as fog lamp when the future is hazy. In contrast. but one thing he/she is not the driver”. are disadvantaged because they usually have an inadequate understanding of the organization’s history. or outside consultants.Subgroups. 4. however.8 Change Agents Change agents: Can be managers or nonmanagers. According to Curtis Mial: “The Consultant may serve as the exhaust value. as the shock absorber when the going is rough. with members from each of the conflicting groups. Outside consultants. culture. 4. presentations. operating procedures. as the accelerator to build up momentum. The trainer role is most widely and intensively used at all stages of a change project: unfreezing. as the radiator absorbing some of the heat of the controversy. cases and experiential learning etc. For major change efforts. He has to educate people on the need and importance o change using a variety of methodologies – lectures.

2. Researcher A change agent has to carry out some research activities for the purpose of generating valid information prior to and during the change process. What is survey feedback as an intervention of OD? How does it provide base for other OD interventions? . Useful hypothesis are to be formulated and tested. team-work does not necessarily spurt group efforts 4. The first step in survey feedback is ______ usually by a consultant based on a structured questionnaire. generation of new behavioral science knowledge. diagnosis.11 Terminal Questions 1. It focuses on skills. In process consultation.Training is required for enhancing knowledge. ________is antithesis of synergy in team-work which suggests that people working together on a common task may actually decrease their individual efforts. group. the consultant works with individuals and groups in the organization to help them learn about human and social processes and to solve problems that stem from process events. Self Assessment Questions 1. 4. feedback of information. skills and change in behavior. Survey feedback usually proceeds with sequential activities involving data collection.10 Summary OD intervention strategies are various activities which a consultant and client organization performs for improving organizational performance. knowledge and processes necessary for effectiveness at the individual. Sensitivity training focuses on small group ranging from ten to twelve. inter-group and total organization levels. Teambuilding is most important. Grid training focuses on individuals and groups to assess their own strengths and weaknesses. Training is used both in ‘content orientation’ and process orientation’. Data collection. widely accepted and applied OD intervention for organizational improvement. Grid Training was developed by –––––––––––– 3. evolving best strategies for change by assessing alternatives and the important stages in a change project where the change agent has to be a Researcher. What is Grid Training? How does it help in improving individual performance in an organization? 2. developing action plans based on feedback and follow-up. attitudes and beliefs.

3.4 2. Data collection 2. and Beliefs in Organization Development Structure: 5. Assumptions.12 Answers to SAQs and TQs SAQs: 1.6 4. Refer section 4. Explain Change agents and discuss the role of change agents in detail. Refer section 4.3. 4. Assumptions. Social loafing Answers to TQs: 1. Refer section 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .1 Introduction Objectives 5.2 Definitions and . MU0002-Unit-05-Values.2 3. What is team-building? What are the stages of life cycle of a team? 4. Refer section 4. Blake and Mouton. Beliefs in Organization Development Unit-05-Values.

· List the chronology of events of values.6 Summary Self Assessment Questions 5. . Most of these beliefs were formulated early in the development of the field. · State the implications of OD values and assumptions. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers. and they continue to evolve as the field itself evolves.7 Terminal Questions 5.3 Implications for Designing and Running Organizations 5.1 Implications for Dealing with Individuals 5.1 Introduction A set of values. and beliefs constitutes an integral part of organization development.2 Implications for Dealing with Groups 5. · Give the statement of OD values and assumptions.5 Implications of OD Values and Assumptions 5.4 Early Statements of OD Values and Assumptions 5. it is a cognitive fact for the person.8 Answers to SAQs and TQs 5.3 Chronology of Events in Management and Organization Thought 5. Objectives: After studying this unit.5.5. beliefs and assumptions. assumptions. shaping the goals and methods of the field and distinguishing OD from other improvement strategies. beliefs and assumptions.5. 5. you will be able to: · Explain the meaning of values.5.2 Definitions A belief is a proposition about how the world works that the individual accepts as true.

and goodwill are the tools for making progress. strongly held. greater understanding of individual motivation and group dynamics. the laboratory training movement. and beliefs provide structure and stability for people as they attempt to understand the world around them. with values being beliefs about good and bad. and that rationality. Piece-rate pay systems were designed to increase motivation and to prevent "soldiering. that progress is possible and desirable in human affairs. . Simple. values. Humanistic values proclaim the importance of the individual: respect the whole person. they were fashioned into a coherent value foundation for the theory and practice of organization development.g. the human relations movement. and the like. the importance of fair and equitable treatment for all. the clash between fascism and democracy in World War II. Major ingredients of the zeitgeist that influenced OD values and assumptions are presented here in a brief chronology. or spirit of the time.. assumptions. 5. increasing awareness of the dysfunctions of bureaucracies." Assumptions are beliefs that are regarded as so valuable and obviously correct that they are taken for granted and rarely examined or questioned. free speech) and what is undesirable or ‘bad’ (e. dishonesty).3 Chronology of Events in Management and Organization Thought  Frederick Winslow Taylor’s ‘The Principles of Scientific Management’ (1911) launched the scientific management movement with its emphasis on time and motion studies and breaking jobs into small. Evidence for the validity of these values and their supporting assumptions comes from many sources – the Hawthorne studies. As these ingredients accumulated. reason. and assumptions being.. treat people with respect and dignity. and democratic. Democratic values assert the sanctity of the individual. Taylor’s methods quickly swept the country and the world as the way to organize work. view all people as having the potential for growth and development. relatively unexamined beliefs accepted as the truth. Optimistic values posit that people are basically good. research on the effects of different leadership styles. optimistic. assume that everyone has intrinsic worth. Values. OD values tend to be humanistic. Expert engineers and supervisors designed each task and ensured it was done correctly. assumptions. Values and assumptions do not spring full grown from individuals or societies they are formed from the collective beliefs of an era-the zeitgeist. and the need for justice through the rule of law and due process. the right of people to be free from arbitrary misuse of power. Thus. repetitive tasks in an attempt to find "the one best way" to do each job." or slacking off. repetitive tasks minimized the skills required to do the job.Values are also beliefs and are defined as: "Beliefs about what is desirable or ‘good’ (e.g. and beliefs are all cognitive facts or propositions.

aggressiveness and poor performance. but also contained serious flaws that led to unintended consequences. organizations were not machines. the work environment. Group Dynamics (1940) – The scientific study of groups using experimental research methods-was launched by Kurt Lewin and his students. Barnard viewed organizations as social systems that must be effective (achieve goals) and efficient (satisfy the needs of employees). His acceptance theory of authority proposed that authority derives from the willingness of subordinates to comply with directions rather than from position power. Mary Parker Follett (1926). ‘The Functions of the Executive’ by Chester 1. their feelings and attitudes about the work. authoritarian leadership caused dependency. repetitive jobs left them feeling alienated and dispirited. impersonal rules. and rigid procedures would create a well-oiled human machine called the organization. wrote an article on “The Giving of Orders” advocating participative leadership and joint problem-solving by labour and management. Research by Lewin. and White demonstrated that democratic leadership was superior to authoritarian leadership and laissez-faire leadership in affecting group climate and group performance. A strong hierarchy of authority. Much of her career was devoted to finding ways to reduce adversarial relationships between workers and management. The Famous Hawthorne Studies (1927 to 1932) were conducted at the Hawthorne plant of Western Electric Company.       . Reports on these studies by Mayo in 1933 and 1945. by Roethlisberger and Dickson in 1939. Their simple. Lippitt (1939). These approaches possessed many desirable features. apathy. a management theorist and astute observer of labourmanagement relations. and the supervisor determined their performance. theory. and practice since the late 1920s have focused on the shortcomings of these two paradigms and how to overcome the limitations. Scientific management as the way to organize work and bureaucracy as the way to organize people were the prevailing paradigms for organizations in the early 1900s. Group norms had more powerful effects on productivity than economic incentives. Some early experiments were conducted in the late 1930s. Democratic leadership seemed to bring out the best in the groups. The great German sociologist Max Weber (1922) introduced the concept of “bureaucracy” as the best. People were not cogs. and by Homans in 1950 profoundly and irreversibly affected people’s beliefs about organizational behaviour. extensive division of labor. Barnard (1938) presented insights from his experiences as President of the New Jersey Bell Telephone Company. much of the research. The research demonstrated the primacy of social factors on productivity and morale. most efficient way to organize people. In a sense. People came to work as whole people.

a direct precursor of OD. Humanistic and democratic values suffused the movement. Carl Rogers’ Client-Centered Therapy (1951) demonstrated the efficacy of non-directive psychotherapy. The Hawthorne Studies (1940s to 1960) spawned the human relations movement that was in full flower from the 1930s to the 1960s. French’s (1948) article. Douglas McGregor wrote ‘The Human Side of Enterprise’ (1960) in which he described his famous Theory X and Theory Y assumptions.         . increase self-understanding. healthy adults. lack ambition. higher-level needs become dominant. The theory postulated that when lowerlevel needs are satisfied. dislike responsibility. and a general “humanizing” of the workplace. are self-centered. “Overcoming Resistance to Change. which postulates that organizations are comprised of a social system and a technological system and that changes in one system will produce changes in the other system. These years witnessed the beginnings of the laboratory training movement (1946 and 1947). Maslow suggested that human motivation is arranged in a hierarchy of needs from lower-level needs such as physiological and survival needs to higher-level needs such as esteem and self-actualization. Chris Argyrif’s Personality and Organization (1957) was the first of several books in which he stated that there is an inherent conflict between the needs of organizations and the needs of mature. P. This article introduced the concept of organizations as sociotechnical systems. pioneers in laboratory training. which holds that individuals have within themselves the capacity to assume responsibility for their behaviour and mental health when provided with a supportive. Eric Trist and Ken Bamforth of the Tavistock Clinic (1951) published the results of their work in British coal mines. caring social climate. training in interpersonal skills for supervisors. Laboratory training taught people how to improve interpersonal relations.” reported that resistance to change could be minimized by communicating the need for change and allowing the people affected by the change to participate in planning it. Those who subscribe to Theory X assume that people are lazy. The human relations movement advocated participative management. proposed that the leadership functions of a group should be shared between the leader and group members and showed how that could be done. Rogers’ focus on effective interpersonal communications was applicable to superior-subordinate relations. Ken Benne and Paul Sheats (1948). Lester Coch and John R. and understand group dynamics. Motivation and Personality by Abraham Maslow (1954) presented a new view of human motivation. greater attention to workers’ social needs.

organization development practitioners formulated a set of values and assumptions regarding people. and introduced practicing managers to the concepts of need hierarchy and self-actualization. dysfunctions. These six books presented the theory. Those who subscribe to Theory Y assume that people have the potential to develop. bureaucracy. management practices. and authoritarian leadership gave way to increasing doubts about these organizational practices as theory and research pointed up their limitations. to assume responsibility. and to pursue organizational goals if given the chance and the social environment to do so. an organic organization form is preferred. Out of this zeitgeist. in an environment of high change. and shares decision-making with the work group. To summarize the intellectual climate of this period. and greater individual autonomy. humanistic.” (1969) a set of six little books on OD by prominent practitioners. this book popularized Maslow’s motivation theory. The task of management is to change organizational structures. theory. one-on-one leadership style. practice. and observations utilized by OD practitioners. Rensis Likert’s ‘New Patterns of Management’ (1961) presented data and theory showing the overwhelming superiority of a democratic leadership style in which the leader is group oriented. We will examine three early statements regarding OD values that had a significant impact on the field. ‘The Social Psychology of Organizations’ by Daniel Katz and Robert L. The Bennis and Beckhard quotations come from their books in the Addison-Wesley Six-Pack. The Addison-Wesley Publishing Company “OD Six-Pack. and democratic. summarized the state of organization development a decade or so after its inception. optimistic. In addition to presenting Theory X and Y. and human resource practices to allow individual potential to be released. . Tannenbaum and Davis presented their ideas in an article appearing in Industrial Management Review. and values of the field. resist change. and organizations that is.    This chronology captures most of the significant influences from research.indifferent to the organization’s needs. Values have always been an integral part of OD. a mechanistic organization structure may be appropriate. goal-oriented. as we have said. groups. This leadership style was contrasted with an authoritarian. and negative consequences. Kahn (1966) presented the first comprehensive exposition of organizations as open systems. open communications. the initial enthusiasm for scientific management. Organic structures encourage decentralized decision making and authority. and need to be led.  Burns and Stalker (1961) described two very different forms of organization structuremechanistic and organic. In an environment of slow change.

compromise. · Development of more effective "team management. Through focused attention and through the collection and feedback of relevant data to relevant people.” For example. Rather than the usual bureaucratic methods which rely mainly on suppression. Bennis clarified some of the salient differences between mechanical systems and organic systems. · Development of organic rather than mechanical systems. the capacity for functional groups to work more competently. M.Writing in 1969. 1. The earlier work by Tom Burns and G. · A shift in values so that human factors and feelings come to be considered legitimate. and unprincipled power. ." He then went on to state what he believed to be the central value underlying organization development theory and practice: The basic value underlying all organization development theory and practice is that of choice. Another major player in the field was Richard Beckhard. This is a strong reaction against the idea of organizations as mechanisms which managers "work on. Therefore. The basic building blocks of an organization are groups (teams). Here is his list." Mechanical systems encourage "centralized decision-making" while organic systems encourage "wide sharing of responsibility and control." like pushing buttons." Mechanical systems insist on "strict division of labour and hierarchical supervision" while organic systems foster "multi-group membership and responsibility. mechanical systems rely on "authority-obedience relationships" while organic systems rely on "mutual confidence and trust. not individuals. In his 1969 book he described "several assumptions about the nature and functioning of organizations" held by OD practitioners. · Development of better methods of conflict resolution. more rational and open methods of conflict resolution are sought. Warren Bennis proposed that OD practitioners (change agents) share a set of normative goals based on their humanistic/ democratic philosophy. He listed these normative goals as follows: · Improvement in interpersonal competence. the basic units of change are groups. Stalker used the term “mechanistic” in contrast to “mechanical. more choices become available and hence better decisions are made. · Development of increased understanding between and within working groups in order to reduce tensions." that is.

4. mutual trust. not the basis of managerial strategy. director of organization development. sub-units of organizations. · Away from use of status for maintaining power and personal prestige toward use of status for organizationally relevant purposes. · Away from resisting and fearing individual differences toward accepting and utilizing them. · Away from a view of individuals as fixed. Decision-making in a healthy organization is located where the information sources are. · Away from distrusting people toward trusting them. Organizations." People affected by a change must be allowed active participation and a sense of ownership in the planning and conduct of the change. · Away from maskmanship and game-playing toward authentic behaviour. · Away from avoidance of negative evaluation of individuals toward confirming them as human beings. toward seeing them as being in process. They listed these “values in transition” as follows: · Away from a view of people as essentially bad toward a view of people as basically good. a professor and Sheldon Davis. · Away from walling off the expression of feelings toward making possible both appropriate expression and effective use. 6. . · Away from avoiding facing others with relevant data toward making appropriate confrontation. Controls are interim measurements. presented their view of OD values in a 1969 article. 5. 3. and confidence between and across levels. They asserted that an important shift in values was occurring and that this shift signaled a more appropriate and accurate view of people in organizations. "People support what they help create. rather than in a particular role or level of hierarchy. An always relevant change goal is the reduction of inappropriate competition between parts of the organization and the development of a more collaborative condition. · Away from utilizing an individual primarily with reference to his or her job description toward viewing an individual as a whole person. and individuals continuously manage their affairs against goals. One goal of a healthy organization is to develop generally open communication.2. Robert Tannenbaum.

decentralized decision making. permit failure. and so forth were seldom espoused and rarely implemented in the vast majority of organizations at that time. Beliefs such as trust and respect for the individual. autocratic. set high standards. 5. listen. remove obstacles and barriers. and are capable of making. open communication. We answer the question: What are some of the implications of OD assumptions and values for dealing with individuals. a greater contribution to attaining organization goals than most organizational environments permit. give autonomy.2 Implications for Dealing with Groups . The democratic values prompted a critique of authoritarian. and arbitrary management practices as well as the dysfunctions of bureaucracies. · Away from a primary emphasis on competition toward a much greater emphasis on collaboration. The first assumption is that most individuals have drives toward personal growth and development if provided an environment that is both supportive and challenging. The people doing the work are generally experts on how to do it and how to do it better. These values and assumptions may not seem profound today. and organizations? 5. encourage risk-taking. challenge. and reward success. The second assumption is that most people desire to make. collaboration and co-operation. authentic interpersonal relations.5. but in the 1950s and 1960s they represented a radical departure from accepted beliefs and assumptions.1 Implications for Dealing with Individuals Two basic assumptions about individuals in organizations pervade organization development.5 Implications of OD Values and Assumptions Let us examine specific assumptions and their implications for organization leaders and members. support. groups. A tremendous amount of constructive energy can be tapped if organizations realize and act on these assumptions. participation and contribution by all organization members.· Away from avoidance of risk-taking toward willingness to risk. · Away from a view of process work as being unproductive effort toward seeing it as essential to effective task accomplishment. Most people want to develop their potential. 5. The implications of these two assumptions are straightforward: Ask.5. The humanistic values prompted a search for better ways to run organizations and develop the people in them. the legitimacy of feelings. appropriate uses of power. give responsibility. We think most organization development practitioners held these humanistic and democratic values with their implications for different and "better" ways to run organizations and deal with people.

Let teams flourish because they are often the best way to get work done and.Several assumptions relate to the importance of work teams and the collaborative management of team culture. but how A and B can work together to modify their interactions toward the goal of B becoming more effective and A and B becoming more mutually effective. and interpersonal communication. formalized cross-functional communication. The question becomes not how A can get B to perform better. a growing awareness that “win-lose” organizational situations. Second. invest training time and money to increase group members’ skills. They cannot meet the demands of the marketplace. and co-operation within the group.5. conflict management. Also. Such problems have the greatest chance of constructive solution if all parties in the system alter their mutual relationships. one of the most psychologically relevant reference groups for most people is the work group. To do this.3 Implications for Designing and Running Organizations Clearly. adherence to the chain of command. One implication is that group members should receive training in group effectiveness skills such as group problem-solving and decision-making. this group perspective requires a shift from viewing problems as "within the problem person" to viewing problems and solutions as transactional and as embedded in a system. emphasis on topdown directives. Therefore. are the best way to satisfy social and emotional needs at work. First. support. Implications of these assumptions are several. not individuals. And because suppressed feelings and attitudes adversely affect problem-solving. and so on-are obsolete. Dealing appropriately with feelings and attitudes increases the level of interpersonal trust. grouping by specialized function. most people wish to be accepted and to interact co-operatively with at least one small reference group. are dysfunctional . not a one-on-one leadership style. such as a work group. Finally. a church or club group. personal growth. including peers and boss. What occurs in the work group. experimenting with new organization structures and new forms of authority is imperative. leaders need to give important work to teams. It is especially important that leaders adopt a team leadership style. invest energy and intelligence in creating a positive climate. Another assumption is that the formal leader cannot perform all the leadership and maintenance functions required for a group to optimize its effectiveness. In addition. Frequently the challenge is broader. and usually with more than one group. and job satisfaction. This skill is a trainable one. and E can support these changes. group members should be encouraged to learn to deal effectively with positive and negative feelings. group members should assist the leader with the multiple roles required for group effectiveness. in which one side wins and the other side loses. Hence. greatly influences feelings of satisfaction and competence. most people are capable of making greater contributions to a group’s effectiveness and development. D. the family. the assumption is that many attitudinal and motivational problems in organizations require interactive and transactional solutions. Third. By implication. and so on. including how persons C. at both the formal and informal levels. leaders should invest in groups: Invest the time required for group development. in addition. 5. traditional hierarchical forms of organization-fairly steep pyramid. facilitation.

Values. beliefs and assumptions are cognitive facts. societal. The rapid technological. This notion suggests it is good to have a developmental outlook and seek opportunities in which people can experience personal and professional growth. A key assumption in organization development is that the needs and aspirations of human beings are the reasons for organized effort in society. assumptions and beliefs help to define what OD is and guide its implementation. Concluding Comment: The field of organization development rests on a foundation of values and assumptions about people and organizations. and ways to optimize human potential. quality of output. and empowering. Chronology of events in management and OD tremendously influenced OD practitioners. values are never static. The belief that people are important tends to result in their being important. This discussion was intended to articulate an appreciation of OD values and explain where they came from. Creating co-operative rather than competitive organizational dynamics is a primary task of the organization’s leaders.over the long run and highlight the need for a “win win” attitude. 5. they are the source of productivity and profits and should be treated with care. The belief that people can grow and develop in terms of personal and organizational competency tends to produce that result. Still. they change over time. optimistic and democratic. and organizational changes taking place assure that tomorrow will bring new definitions of what is "true" and new beliefs about what is "good. it is possible to create organizations that on the one hand are humane. Values are also beliefs. organizing structures. The implication is that people are an organization’s most important resource. OD values tend to be humanistic. Such an orientation creates a self-fulfilling prophecy. A belief is a proposition about how the world works that the individual accepts as true. These OD values were considered revolutionary when they emerged in the 1950s. Self Assessment Questions . By implication. Values. but are widely accepted today. developmental.6 Summary The field of OD rests on a foundation of values and assumptions about people and organizations." as behavioural scientists and managers continue to develop better understanding of authority structures. Finally. These beliefs help to define what OD is and guide its implementation. and profitability. Evidence for this assumption comes from numerous examples where “putting people first” paid off handsomely in profits and performance. developmental set of assumptions about people is likely to reap rewards beneficial to both the organization and its members. and on the other hand are high performing in terms of productivity. an optimistic.

__________ is associated with scientific management. What was the outcome of Hawthorne Experiments? 4. _______________ gave theory X and theory Y. 5. Define concepts. 5. Refer section 5. 2. 3. 4.7 Terminal Questions 1. Refer section 5.8 Answers to SAQs and TQs SAQs: 1. W. values. Cognitive 2.2 2.3 3. beliefs and assumptions. Hawthorne experiments 5. Refer section 5. The concept of –––––––––– was introduced by MaxWeber. and assumptions are all –––––––––– facts.W. Taylor’s principles of scientific management. Douglas McGregor Answers to TQs: 1.1. Write a note about F. State the assumptions of Theory X and Theory Y.3 . F. 2. Taylor 3. The outcome of –––––––– was that people were not cogs and organizations were not machines. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. 5. beliefs. 3. Values. Bureaucracy 4.

2 Congruence among System Elements 6.4 Participation and Empowerment . Refer section 5.2.3 5.1 Kurt Lewin and Friends 6.4 Porras and Robertson Model of Organizational Change 6.1 Introduction Objectives 6.3 Socio-technical Theory and Open Systems Planning 6.3.2 Beyond the Quick Fix 6.1 The Nature of Systems 6.3. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.3 The Burke-Litwin Model of Organizational Change 6.2.3 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 5.4.3 Systems Theory 6.2 Models and Theories of Planned Change 6.4 Open Systems Thinking 6.3.2.3.2.

· Explain systems theory.9 Action Research Self Assessment Questions 6.1 Introduction This unit describes the foundations of organization development theory and practice. Here we describe what we believe are the most important underpinnings for the field.6 Parallel Learning Structures 6. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs. · Describe the parallel learning structures. art and science which form the knowledge base upon which OD is constructed. you will be able to: · Explain various models and theories of planned change. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning.10 Summary 6. · Realize the importance of teams and teamwork.8 Applied Behavioural Science 6.11 Terminal Questions 6.6.7 A Normative – Re-educative Strategy of Changing 6. · Explain normative-re-educative strategy of changing The knowledge base of OD is extensive and is constantly growing.12 Answers to SAQs and TQs 6. In this discussion.5 Teams and Teamwork 6. We will examine the following concepts: . · Explain the terms ‘participation’ and ‘empowerment’. Objectives: After studying this unit.

Lewin’s second idea was a model of the change process itself. the important features of some phenomenon. Although morale may get a little better or a little worse on occasion. we can identify the major forces that make up the field of forces and then develop action plans for moving the equilibrium point in one direction or the other. With a technique called the force-field analysis. we can think of the level of morale in that plant as a resultant equilibrium point. the status quo-whatever is happening right now-is the result of forces pushing in opposing directions. He suggested that change is a three-stage process: . it generally hovers around some equilibrium point that is the resultant in a field of forces. we can think of the production level of a manufacturing plant as a resultant equilibrium point in a field of forces. Here we provide a framework for thinking about planned change by exploring several models from the literature.· Models and theories of planned change · Systems theory · Participation and empowerment · Teams and teamwork · Parallel and learning structures · A normative-re-educative strategy of changing · Action research 6. and specify the relationships among the variables. For example. in words or pictures. describe those features as variables. but pretty good for identifying the important variables involved. Likewise. That is. Models and theories depict.2 Models and Theories of Planned Change Organization development is planned change in an organizational context.2. Several recent theories show great promise for increasing our understanding of what happens and how it happens in planned change. The production level tends to remain fairly constant because the field of forces remains fairly constant. with some forces pushing toward higher levels of production and some forces pushing toward lower levels of production. The development of models of planned change facilitated the development of OD. This concept is useful for thinking about the dynamics of change situations. 6.1 Kurt Lewin and Friends Kurt Lewin introduced two ideas about change that have been influential since the 1940s. Planned change theories are rudimentary as far as explaining relationships among variables. The first idea states that what is occurring at any point in time is a resultant in a field of opposing forces. some forces pushing toward higher morale and some pushing toward lower morale.

judge things. b. he must move. which cause guilt and anxiety. . and react to things differently based on a new point of view obtained through a. change his behaviour from being a smoker to being a non-smoker. Provision of psychological safety Stage 2: Changing through Cognitive Restructuring: Helping the client to see things. The total personality and self-concept. Take the example of a man who smokes cigarettes and wants to quit. moving to new level of behaviour. Creation of guilt or anxiety c. disconfirmation creates pain and discomfort. Identifying with a new role model.non-smoking becomes the new equilibrium point. Refreezing the behaviour at the new level. Scanning the environment for new relevant information Stage 3: Refreezing: Helping the client to integrate the new point of view into a. But unless the person feels comfortable with dropping the old behaviours and acquiring new ones. Change entails moving from one equilibrium point to another. Significant relationships.Unfreezing the old behaviour (or situation). unfreezing. In stage 1. The three-stage model says he must first unfreeze the old behaviour of smoking. Refreezing the desired behaviour requires establishing a new field of forces to support the new behaviour. Next. that is. Finally. the non-smoking behaviour must become permanent. Lewin’s three-stage model is a powerful tool for understanding change situations. Disconfirmation or lack of confirmation b. change will not occur. b. that is. the person must develop a sense of psychological safety in order to replace the old behaviours with new behaviours. feel things. A Three-Stage Model of the Change Process: Stage 1: Unfreezing: Creating motivation and readiness to change through a. which motivate the person to change. mentor. etc. That is. Edgar Schein took this excellent idea and improved it by specifying the psychological mechanisms involved in each stage. believe that cigarette smoking is bad for him and that he should stop smoking.

6. and attitudes. The phrase significant relationships refer to important people in the person’s social environment-do these significant others approve of the changes? Another modification of Lewin’s model was proposed by Ronald Lippitt. the person undergoes cognitive restructuring. Phase 6: Generalizing and stabilizing change. is to integrate the new behaviours into the person’s personality. and 5 correspond ro Lewin’s moving phase. and fit with the individual’s social surroundings. stabilizing the changes requires testing to see if they fit-fit with the individual. that is. Phase 3: Clarifying or diagnosing the client system’s problem. This phase corresponds to Lewin’s refreezing phase. These "road maps" are useful for thinking about change. This phase corresponds to Lewin’s unfreezing phase. terminating the client-consultant relationship. refreezing. . This seven-stage model lays out the logical steps involved in OD consulting. In this phase a client system in need of help and a change agent from outside the system establish a working relationship. Phase 5: Transforming intentions into actual change efforts. They expanded the three-stage model into a seven-stage model representing the consulting process. That is. 4. moving. Phases 3. for example. identifying with ex-smokers and learning about the health risks of smoking. This model has five sequential stages: 1) Initiating the program. Phase 7: Achieving a terminal relationship.In stage 2. Similar models have been developed by Kolb and Frohman and by Burke. The primary task in stage 3.2. and Bruce Westley.2 Beyond the “Quick Fix” A comprehensive change model by Ralph Kilmann specifies the critical leverage points for organizational change. Jeanne Watson. Phase 2: Establishing a change relationship. Phase 4: Examining alternative routes and goals. Their seven stages are as follows: Phase 1: Developing a need for change. This motivating evidence is gained by. establishing goals and intentions of action. The person acquires information and evidence showing that the change is desirable and possible.

when functioning properly. 4) The strategy-structure track. The management-skills track provides all management personnel with new ways of coping with complex problems and hidden assumptions. Scheduling and implementing the "tracks" involve intervening in five critical leverage points. Change programs take from one to five years to complete. and willingness to change among members the conditions that must exist before any other improvement effort can succeed. Initiating the program entails securing commitment from top management. 2) The management skills track. Kilmann’s five tracks are: 1) The culture track.2) Diagnosing the problems." that. Interventions include training programs. communication. called "tracks. and 5) The reward system track. Diagnosing the problems requires a thorough analysis of the problems and opportunities facing the organization. cause the organization to be successful. These problems and opportunities will be the targets of later interventions. Kilmann describes the five tracks: What does each track do for the organization? The culture track enhances trust. information sharing. . and so forth. problem-solving sessions. The team-building track infuses the new culture and updated management skills into each work unit – thereby instilling co-operation organization-wide so that complex problems can be addressed with all the expertise and information available. 3) The team-building track. 3) Scheduling the "tracks". critique practices and procedures. 4) Implementing the "tracks" 5) Evaluating the results.

the nature of the organization is fundamentally and substantially altered – the organization is transformed. and so forth. adaptive. Westinghouse. its identification of the five tracks as critical leverage points. An OD consultant implements the tracks in a phased sequence. TRW. and . General Foods. This model shows how to create first-order and second-order change (which the authors call “transactional change” and “transformational change”). First-order change goes by many different labels: transactional. often unconscious. work groups. then moving to the team-building track. In first-order change. and all resources with the new strategic direction. and co-operative team efforts within and among all work groups. developed by Warner Burke and George Litwin.The strategy-structure track develops either a completely new or a revised strategic plan for the firm and then aligns divisions. Changing culture is much more difficult than changing climate. On the other hand. and difficult to change. beginning with the culture track. radical. The model distinguishes between organizational climate and organizational culture. revolutionary. The reward-system track establishes a performance-based reward system that sustains all improvements by officially sanctioning the new culture. In second-order change.and second-order change. incremental. Eastman Kodak. and its holistic view of organization change and development. values. friendly or unfriendly. organizational culture is defined as deep-seated assumptions. and Xerox with good results. then moving to the management skills track.2. Kilmann has tested his model at AT&T. Organizational climate is defined as people’s perceptions and attitudes about the organizationwhether it is a good or bad place to work. with an increasing emphasis on second-order transformational change. or continuous change. The premise of the BurkeLitwin model is this: OD interventions directed toward structure. Ford General Electric. and beliefs that are enduring. and so forth. management practices. departments. OD programs are directed toward both first. One likes this model because of its comprehensive nature. 6. the use of updated management skills. some features of the organization change but the fundamental nature of the organization remains the same. Second-order change goes by many different labels: transformational. evolutionary. These perceptions are relatively easy to change because they are built on employees’ reactions to current managerial and organization practices. jobs.3 The Burke-Litwin Model of Organizational Change The next model to be examined is the Burke-Litwin model of individual and organizational performance. or discontinuous change. hard-working or easy-going.

and organization culture result in second-order change. These two concepts come from leadership research which found that some leaders are capable of obtaining extraordinary performance from followers while other leaders are not. Transactional leadership is required to make this change in organizational climate.1: The Transactional Factors Involved in First – Order Change . individual and organizational performance. interventions directed toward mission and strategy. Changing structure. Transactional leaders are "leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements. The model also makes a distinction between transactional and transformational leadership styles. Transactional leadership is sufficient for causing first-order change. Transformational leaders are "leaders who inspire followers to transcend their own self-interest for the good of the organization and who are capable of having a profound and extraordinary effect on their followers." Transactional leadership embodies a fair exchange between leader and follower that leads to "normal" performance. We will do so in several steps. 6. management practices.systems (policies and procedures) result in first-order change. leadership. Now let us look at the Burke-Litwin model. Following figure shows the factors involved in first-order (transactional) change." Transformational leadership embodies inspiration which leads to new heights of performance. and systems cause changes in work unit climate. in turn. Transformational leadership is required for causing second-order change. Fig. which change motivation and.

sudden "leaps" in behaviour. that is. and systems produce transactional change or change in organizational climate. as shown in the above figure. The above two figures together yield the full Burke-Litwin model shown in the following figure. and organization culture produce transformational change or fundamental change in the organization’s culture. The second set of dynamics is concerned with processes of human transformation. The top half of figure displays the factors involved in transformational change. we must change mission and strategy. which produces changes in individual and organizational performance. these transformational processes are required for genuine change in the culture of an organization. The OD practitioner sizes up the change situation. mission and strategy. and then targets interventions toward factors of the organization that produce the desired change. if we want to cause second-order (transformational) change. 6.” We consider the Burke-Litwin model to be a significant advance in thinking about planned change. leadership styles. and organization culture. These factors are able to change the climate. Interventions directed toward management practices. To summarize.Fig. These factors are powerful enough to change the culture fundamentally. Research by Burke and his students suggests the model performs as intended.2: The Transformational Factors Involved in Second – Order Change On the other hand. One set primarily is associated with the transactional level of human behaviour or the everyday interactions and exchanges that create the climate. Burke and Litwin propose that interventions directed toward leadership. The bottom half of figure displays the factors involved in transactional change. structure. determines the kind of change required (transactional or transformational). . Interventions directed toward these factors transform the organization and cause a permanent change in organization culture. Burke says: “Thus there are two distinct sets of organizational dynamics.

This model shows how OD interventions can be linked to factors in the work setting.3: The Burke Litwin Model of Organizational Performance and Change 6. Keep this framework in mind as you read the units on OD interventions because all interventions target one or more factors shown in figures. and interaction processes will affect social factors. which determine organizational performance and individual development. rewarded). and technology. which in turn lead to individual and organizational improvements. required. management style.4: Organizational Work-Setting Factors This model is extremely useful for OD practitioners and organizational leaders.4 Porras and Robertson Model of Organizational Change Jerry Porras and his associates developed a model of how organization development works. it is described in a discussion by Porras and Peter Robertson. which influence on-the job behaviours. Fig. The work setting plays a central role in this model and consists of four factors: organizing arrangements. physical setting. It is how OD works. strategies. according to Porras and Robertson. For example. The premise modeled here is that work setting factors influence organizational members’ cognitions (they learn what is expected. Interventions that focus on job design and work flow design will affect technology. and these behaviour changes occur when elements of the work setting have been modified by OD interventions. OD interventions that focus on goals. Following figure shows the work setting in the larger organizational framework. 6. The basic premise is that OD interventions alter features of the work setting causing changes in individuals’ behaviours. 6. . social factors. Interventions that focus on culture.2. Organizational change occurs only when individuals change their behaviour.Fig. and rewards will affect organizing arrangements.

that is the system.Fig. which views organizations as open systems in active exchange with their environment." To summarize. and delineated by identifiable boundaries from its environmental supra. one begins by identifying the individual parts and then seeks to understand the nature of their collective interaction. when taking a systems approach." Hanna says: "A system is an arrangement of interrelated parts." Von Bertalanffy refers to a system as a set of "elements standing in interaction." Kast and Rosenzweig define system as "an organized. 6. . This section explains systems theory. The words ‘arrangement’ and ‘interrelated’ describe interdependent elements forming an entity. and Katz and Kahn were the first to apply open systems theory to organizations in 1966. system denotes interdependency. and interrelatedness among elements in a set that constitutes an identifiable whole or gestalt. describes the characteristics of systems. and shows how systems theory enhances the practice of OD. Fagen defines system as "a set of objects together with relationships between the objects and between their attributes. Systems theory is one of the most powerful conceptual tools available for understanding the dynamics of organizations and organizational change. unitary whole composed of two or more interdependent parts.3 Systems Theory A second foundation of organization development is systems theory. Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950. interconnectedness.5: A Change-based Organizational Framework 6. or subsystems.system. Thus. components.

3.1 The Nature of Systems The nature. raw material and so on. and what is outside the boundary is the environment. information. Systems take inputs from the environment in the form of energy. Fig. and characteristics of open systems are well-known. studying open systems leads to a good understanding of organizations. the organization’s purposes will be reflected in its outputs. people. These purposes must align with purposes or needs in the environment. All open systems are input-throughput-output mechanisms. Boundaries of open systems are permeable. the organization will cease to exist. Open systems have purposes and goals. A good rule of thumb for drawing the boundary is that more energy exchange occurs within the boundary than across the boundary. in that they permit exchange of information. money. and they export products to the environment in the form of outputs. Each of these three system processes must work well if the system is to be effective and survive.6. Organizations achieve negative entropy when they are able to exchange their outputs for enough inputs to keep the system from running down. the reasons for their existence. . resources. dynamics. They do something to the inputs via throughput. Organizations are open systems. we examine the characteristics of open systems drawing OD expositions by Katz and Kahn and Hanna. Every system is delineated by a boundary. and energy between system and environment. or transformation processes that change the inputs. Here. Therefore. 6. conversion.6: A System in Interaction with its Environment The law of entropy states that all systems “run down” and disintegrate unless they reverse the entropic process by importing more energy than they use. and if the environment does not want these outputs. What is inside the boundary is the system. For example.

say. These subsystems can be arranged into a hierarchy of systems moving from less important to more important. the principle that there are multiple ways to arrive at a particular outcome or state – systems have multiple paths to goals. By the same token. Another characteristic of systems is equifinality. it receives information to that effect in the form of negative feedback. and so on. Feedback is information from the environment about system performance. negative and positive. Systems are bombarded by all kinds of information: some are useful. this process is called differentiation. It is sometimes called deviation-amplifying feed back.2 Congruence among System Elements David Nadler and associates at Delta Consulting Group developed the congruence model for understanding organizational dynamics and change. eating fads. specialized. while screening out other information. organizations in the fast-food industry pay a lot of attention to information about their industry-nutrition. With increased differentiation. systems tend to get more elaborated. Say your company makes buggy whips. It is also known as deviation-correcting feedback. increased integration and co-ordination are necessary." Here is another example of negative and positive feedback. "return to earth. but most are not useful. This model depicts the organization as an input-throughput-output system. mining. competitors. If the mission (target) changes. however. Positive feedback comes from the environment. 6. Systems require two kinds of feedback. Subsystems exist within larger systems. Systems "code" useful information and incorporate it.Information is important to systems in several ways. Negative feedback measures whether or not the output is on course with the purpose and goals. Positive feedback measures whether or not the purpose and goals are aligned with environmental needs. if a rocket ship traveling to the moon strays off its trajectory. aerospace. Systems achieve a steady state or equilibrium point and seek to maintain this equilibrium against disruptive forces. and the production plan calls for 100 buggy whips per month. Another characteristic of open systems is steady state or dynamic homeostasis. it will signal whether the environment needs and/or wants buggy whips. they usually ignore information about other industries such as electronics. Survival of the system is equally influenced by whether or not the targets themselves are appropriate.” Also. The usefulness of the two concepts is that they demonstrate that it is not enough to merely measure our outputs versus the intended targets. For example. The three major input factors are: . either internal or external. and the like. As Katz and Kahn say: “The basic principle is the preservation of the character of the system.3. and the system adjusts to a new goal. that information is called positive feedback. For example. differentiated. and makes a course correction. Negative feedback tells you if you are on track with your scheduled production output. and complex over time.

what the organization is trying to accomplish and how it plans to do it. knowledge. which components are "not functioning correctly. and how things really work (versus how they are supposed to work as defined by the formal organization). processes. and 2) Evaluating the "goodness of fit" or how well the elements "go together. which includes skills. which includes the organization’s culture informal rules and understandings. and informal organization.7: The Congruence Model Showing the Organization as a System The congruence model’s value is as an analytical tool for: 1) Assessing the characteristics and functioning of each of the elements. people. performance will suffer. which includes formal structures. and systems for performing the work. work. Outputs are performance at the total organization level. and individual level." and which elements . and 3) History which consists of memories of past successes. Elements of the organization per se are labeled strategy. 2) Resources available to the organization. the tasks people perform to create products and service markets people. Fig. perceptions. such as capital. fit) must be present among the system’s components’ for the organization to produce satisfactory outputs. and technology. failures. and the workforce’s expectations. If the organization’s culture (informal organization) praises individual accomplishments and the work requires teamwork and collaboration. important events. which imposes constraints and opportunities about what the organization can and can not do. knowledge. unit/group level." The premise is that alignment (harmony. For example.1) The environment. and critical decisions that still influence behaviour today. You can use this model to analyze organizations with which you are familiar. In a company that is performing poorly. performance will suffer. formal organization. if people don’t have the skills and knowledge required to do the work. . If the strategy calls for entrepreneurial quickness and risk-taking and the formal organization is bureaucratic and highly centralized. performance will suffer. 6.

Socio-technical systems theory was developed by Eric Trist. two active segments of OD today. and identifying core tasks help STS consultants structure organizations and tasks for maximum effectiveness and efficiency. that is. both realistic (likely to happen if the organization continues on its current course) and ideal (what the organization would like to see happen). High-performance organizations almost always use principles from socio-technical systems theory. A number of design principles have been developed to implement socio-technical systems theory. multi-skilled teams. and information to the point of action.socio-technical systems theory (STS) and open systems planning (OSP)-play an important role in organization development. G.are poorly aligned? In companies showing outstanding performance. Hanna writes: In the late 1960s a small team of consultants led by James Clark. and Will McWhinney developed a technology for addressing the interface between organization and the environment. especially autonomous work groups (self-regulated teams or self-direct teams). organizations must optimize both systems. forming autonomous work groups. Systems models are essential for the practice of OD. training group members in multiple skills. Principles such as optimizing the social and technical systems. The thesis of STS is that all organizations are comprised of two interdependent systems. and others at the Tavistock Institute in the 1950s.3 Socio-technical Systems Theory and Open Systems Planning Two major variations of open systems theory. Charles Krone. Another important application of systems theory in organization development is open systems planning. controlling variance at the source. giving information and feedback to the people doing the work. what is it about each element that causes that part of the system to function well and what are the characteristics of each element that cause all of them to fit together smoothly? The congruence model is an excellent diagnostic tool. 2) Developing scenarios of possible futures. to the workers doing the job.KI Jayaram. and that changes in one system affect the other system. Open systems planning entails: 1) Scanning the environment to determine the expectations of external organizations and stake-holders. It was the first attempt to help organizations methodically analyze the environmental demands and expectations placed on them and plan to successfully meet these demands and expectations. a social system and a technical system.3. and . To achieve high productivity and employee satisfaction. Their technology became known as Open systems Planning (OSP). STS is the principal conceptual foundation for efforts in work redesign and organization restructuring. Fred Emery. 6.

He says of systems thinking: “It is the discipline that integrates the disciplines. fusing them into a coherent body of theory and practice. and incidents are not viewed as isolated phenomena. Without a systemic orientation. therefore. the fifth discipline. For example. according to Peter Senge. Increased participation and empowerment . but seen in relation to other issues. By enhancing each of the other disciplines. events. Of all these disciplines. there is no motivation to look at how the disciplines interrelate. 6. not just its component parts. This idea moves the practitioner away from analyzing historical events and toward examining contemporary events and forces. is the most important. issues. Participation in OD programs is not restricted to elites or the top people. not single effects.4 Participation of Empowerment One of the most important foundations of organization development is a participation/ empowerment model. from their activities. Third. because most phenomena have more than one cause. systems theory pervades the theory and practice of organization development. it is extended broadly throughout the organization. events and forces. mental models. forces. Senge believes that five disciplines must be mastered to create a learning organization: personal mastery. Fourth. changing one part of a system influences other parts.3. one changes the system. 6. building shared vision. Second. according to field theory (Kurt Lewin). Most OD practitioners engaged in redesign projects use a combination of socio-technical systems theory and open systems planning. It keeps them from being separate gimmicks or the latest organization change fads. OD practitioners expect multiple effects. this combination is often used in designing high-performance organizations.” In conclusion. from diagnosis to intervention to evaluation.3) Developing action plans to ensure that a desirable future occurs. it continually reminds us that the whole can exceed the sum of its parts. team learning. Viewing organizations from this perspective has several consequences. And fifth. First. a systems approach encourages analysis of events in terms of multiple causation rather than single causation.4 Open Systems Thinking Open systems thinking is required for creating learning organizations. the forces in the field at the time of the event are the relevant forces for analysis. and systems thinking. to change a system. systems thinking. Learning organizations can cope effectively with rapidly changing environmental demands.

" is bottom-up and less controlling. Researchers found that group dynamics work to overcome resistance to change. They must see themselves as having freedom and discretion. They describe the organic view: "The other group of executives saw empowerment much differently. and growth. These pillars of OD practice are validated by both research and practice. but rather a mind-set that employees have about their roles in the organization. Further. Empowerment meant trusting people and tolerating their imperfections. and change. search conferences. Robert Quinn and Gretchen Spreitzer found two vastly different views of empowerment." and "Have decisions made by those who are closest to the problem. OD interventions are basically methods for increasing participation. to exert influence. and the culture audit are all predicated on the belief that increased participation will lead to better solutions. is the more useful perspective. treat those closest to the problem as the relevant experts. They believed that it was about risk-taking. For example. involvement and participation energize greater performance. produce better solutions to problems. Participation enhances empowerment. team building. The most important contrast between the two views involves the implicit but potentially volatile assumptions people make about trust and contro1. autonomous work groups. personal initiative. and generally make people feel better about themselves and their worlds." is a top-down delegation of decision-making with clear boundaries and strict accountability that increases managerial control. with its emphasis on risk-taking. Rules of thumb such as "Involve all those who are part of the problem or part of the solution. One view. Participation is a powerful elixir-it is good for people and performance. OD interventions are deliberately designed to increase involvement and participation by organization leaders and members. survey feedback. they must if personally connected to . is not something that management does to employees. then." These authors believe the organic view. The other view. increase commitment to the organization. This research demonstrated that most people desire increased involvement and participation. quality circles. and empowerment in turn enhances performance and individual well-being. But both views contain valid ideas: for example. which is done by giving individuals the authority to make decisions. Quinn and Spreitzer conclude: “Empowerment.have always been central goals and fundamental values of the field. To empower is to give someone power. and give more power to more people. the organic approach unleashes talent and energy in people that are best channeled by providing clear guidelines and boundaries. to contribute their ideas. and greatly enhance acceptance of decisions. quality of work life programs. Research on group dynamics began in the 1940s and achieved exponential growth in the 1950s and 1960s." direct leaders to push decision-making lower in the organization. employees must choose to be empowered. reduce stress levels. The entire field of OD is about empowerment. While management can create a context that is more empowering. Participation is an especially effective form of empowerment. growth. and to be responsible. called "organic. which they call "mechanistic.

process consultation. and practice attest to the central role teams play in organizational success. people must work together to accomplish them. The previous discussion focused on empowerment and concluded that the act of empowering individuals greatly increased their performance and satisfaction. Third. and team-related acronyms abound-SDTs (self-directed teams). Team Saturn produced the Saturn automobile. and explore ways to realize that potential. The message of this section is that putting those empowered individuals into teams creates extraordinary effects on performance and satisfaction. crossfunctional "design-build" teams developed the Boeing 777. Teams and teamwork are part of the foundation of organization development. Team Taurus developed Ford’s best-selling automobile. systems. and relationships if they are to be effective. processes. Fourth. to name just a few. quality circles. Theory. many tasks are so complex they cannot be performed by individuals. teams create synergy. Second. QCs (quality circles).” 6. HPWSs (high-performance work systems). Teams and teamwork are "in. teams at 3M generate the hundreds of innovations that keep 3M ahead of its competition. HPOs (high-performance organizations). as a team. research. changes those norms and values. that is. the effects on individual behaviour are immediate and lasting. Teams at Motorola produced its bestselling cellular phones. Teams and teamwork are among the "hottest" things happening in organizations today – gurus extol the virtues of teams. and capable of having an impact on the system in which they are embedded. we examine the potential of teams and teamwork. the noun team has become a verb. teams satisfy people’s needs for social interaction. recognition. and respectteams nurture human nature.the organization. the sum of the efforts of team members is far greater than the sum of the individual efforts of people working alone. status. Examples are team-building. Synergy is a principal reason teams are so important. STS (socio-technical systems). A number of OD interventions are specifically designed to improve team performance. confident about their abilities. In this section. much individual behaviour is rooted in the socio-cultural norms and values of the work team. inter-group team-building. If the team. teaming.5 Team and Teamwork A fundamental belief in organization development is that work teams are the building blocks of organizations. . "The evidence is abundantly clear: Effective teams produce results far beyond the performance of unrelated individuals. Teams are important for a number of reasons: First. A second fundamental belief is that teams must manage their culture.

and the like. All these characteristics are required for superior team performance. Tom Peters asserts in Liberation Management that cross-functional. that they achieve synergy. Investigators are discovering why some teams are successful while others are not. elevating goal 2) A results-driven structure 3) Competent team members 4) Unified commitment 5) A collaborative climate 6) Standards of excellence 7) External support and recognition Principled leadership. Organizations using autonomous work groups or self-directed teams devote considerable time and effort to ensure that team members possess the skills to be effective groups. Team-building activities are now a way of life for many organizations. the crew of the USS Kitty Hawk. These interventions apply to formal work teams as well as startup teams. The net effect is that teams perform at increasingly higher levels. find innovative ways around barriers. cross-functional teams. Larson and LaFasto also discovered that the most frequent cause of team failure was letting personal or political agendas take precedence over the clear and elevating team goal. Teams periodically hold team-building meetings. socio-technical systems programs. and that teamwork becomes more satisfying for team members. Larson and LaFasto found eight characteristics always present: 1) A clear. and set ever-higher goals. High-performance teams regulate the behaviour of team members.parallel learning structures. Larson and LaFasto studied a number of high-performance teams. He uses examples from EDS (Electronic Data Systems). including collegiate football national champions. and responsibility charting. temporary teams. and others. role negotiation technique. Grid OD and techniques such as role analysis technique. . and individuals are trained as group leaders and group facilitators. team performance declines. autonomous. to determine the characteristics that make them successful. Union Pacific Railroad. people are trained in group dynamics and group problem-solving skills. When any one feature is lost. heart transplant surgical teams. Asea Brown Boveri. help each other. empowered teams are what the best organizations are using right now to outdistance the competition.

and countless other organizations to demonstrate the ability of small project teams to produce high quality. a steering committee and working groups were used to co-ordinate the employee involvement teams. talking. parallel structures are a vehicle for learning how to change the system. Most socio-technical systems redesign efforts and open systems planning programs use parallel structures. It isn’t the supplemental structure that’s important. 6. projects will be performed by teams. superior customer service. In essence. and employees. Parallel learning structures are a foundation of OD because they are prevalent in so many different OD programs. High responsibility. and acting differently than normally takes place at work.7 A Normative – Re-educative Strategy of Changing . engage in genuine inquiry and experimentation. Parallel learning structures are often the best way to initiate change in large bureaucratic organizations. and then leading the process. Interestingly. If you don’t implement different norms and procedures.6 Parallel Learning Structures Parallel learning structures. The charge to members of the parallel learning structure is to think and behave in ways that are different from the normal roles and rules of the organization. Dale had introduced this concept in 1974 under the label collateral organization and defined it as “a supplemental organization coexisting with the usual formal organization. Bushe and Shani say: “The key thing about parallel structures is that they create a bounded space and time for thinking. Considerable experimentation with collateral organizations occurred in the 1970s and 1980s. What’s important is that people act in a way that promotes learning and adaptation. specially created organizational structures for planning and guiding change programs. clear objectives. and continuous learning. managers. 6. constitute another important foundation of organization development. High-performance organizations often use parallel structures to co-ordinate self-directed teams. and initiate needed changes. Projects are the work of the future. At Ford Motor Company. deciding.” The purpose of the collateral organization is to deal with "ill-structured" problems the formal organization is unable to resolve. and report to one of your subordinates on another team. you don’t have a parallel structure.” Parallel structures help people break free of the normal constraints imposed by the organization. normal hierarchical considerations become obsolete for these project teams-you could be the boss of one team. The quality of work life programs of the 1970s and 1980s used parallel structures composed of union leaders. flexible response. The most important and difficult task for the people creating the parallel learning structure is to create a different culture within it. especially when the change involves a fundamental shift in the organization’s methods of work and/or culture. and high accountability drive these project teams to outperform traditional organization structures on every measurable dimension.Titeflex.

Organization development involves change. and change comes through re-education in which old norms are discarded and supplanted by new ones. The rationality and intelligence of men are not denied. Evaluated against these three change strategies." Solutions to problems are not a priori assigned to greater technical information but may reside in values. the practitioner intervenes in a collaborative way with the clients. These implications give clients considerable control over the situation. Patterns of action and practice are supported – by socio-cultural norms and by commitments on the part of the individuals to these norms. based on the assumptions that norms form the basis for behaviour. skills. although often OD represents a combination of the normative-reeductive and the empirical-rational strategies. And changes in normative orientations involve changes in attitudes. and will change if and when they come to realize change is advantageous to them. Sociocultural norms are supported by the attitude and value systems of individuals-normative outlooks which undergird their commitments. according to this view. anxieties. based on the assumptions that people are rational. These strategies build upon assumptions about human motivation different from those underlying the first. Anything hindering effective problem solving is brought to light and publicly examined. The client system members define what changes and improvements they want to make. information. will occur only as the persons involved are brought to change their normative orientations to old patterns and develop commitments to new ones. and together they define problems and seek solutions. OD clearly falls within the normativere-educative category. The norms to be changed and the form of re-education are decided by the client system members. and OD is based primarily on a normative-re-educative strategy and secondarily on a rational-empirical strategy. values. . The first type is empirical rational strategies. they impel a collaborative effort rather than a "doing something to" effort. and significant relationships. doubts. The third set of strategies is the power-coercive strategies. Chin and Benne describe three types of strategies for changing. The second group of strategies is normative-re-educative strategies. attitudes. or intellectual rationales for action and practice. and’ negative feelings are surfaced for "working through. that is. Chin and Benne indicate the nature of the normative-reductive strategy as follows: A second group of strategies we call normative-re-educative. strategy has the following implications for the practice of OD. and it rests on a particular strategy for change that has implications for practitioners and organization members alike. rather than the OD practitioner. relationships and customary ways of doing things. will follow their rational self-interest. Chin and Benne suggest that a normative-re-educative. based on the assumption that change is compliance of those who have less power with the desires of those who have are power. Change in a pattern of practice or action. not just changes in knowledge. The point here is that different strategies are available for effecting change. and they give more options to both the clients and the practitioner.

placing it in a classification scheme or typology. 6. applied science or practice. The principles of diagnosis and of treatment constitute the principles of practice. the treatment typology allows the practitioner to know what remedial efforts to apply to correct the problem. practices.8 Applied Behavioural Science This foundation of OD relates to the primary knowledge base of the field. Burke writes: “If one attempts to change an attitude or the behaviour of an individual without attempting to change the same attitude or behaviour in the group to which the individual belongs. norms can best be changed by focusing on the group. not the individual. Although human behaviour in organizations is far from an exact science. OD emphasizes the latter. hopefully. the object of which is knowledge for its own sake. on the basis of selected variables. OD is the application of behavioural science knowledge. or practice. failure negating it and thus requiring re-diagnosis. success corroborating the diagnosis.. Greenwood states: “The diagnostic and treatment typologies are employed together." Both diagnosis and treatment consist of observing a situation and. re-establishes the equilibrium. on the basis of which he or she prescribes a solution that. then the individual will be a deviate and either will come under pressure from the group to get back into line or will be rejected entirely.” Norms help determine individual behaviour and a normative-re-educative strategy of changing pervades the practice of OD. OD practitioners know about these patterns through research and theory.e. by modifying a group norm or standards. On this point." applied science. and (2) "technology. for example. The practitioner examines the problem situation. The diagnostic typology allows the practitioner to know what category of situation he or she has examined. A conventional distinction is made between (1) "pure" or basic science. The practitioner uses treatment as the empirical test of his diagnosis. Thus. the major leverage point for change is at the group level. behavioural science knowledge. lawful patterns of events produce effectiveness and ineffectiveness. the object of which is knowledge to solve practical. Each type description of the diagnostic typology contains implications for a certain type of treatment. Greenwood discusses the activities of the practitioner as follows: "The problem that confronts a practitioner is customarily a state of disequilibrium that requires rectification. with their elaborations and implications constitute practice theory. The aim of this discussion is to look briefly at how behavioural science knowledge becomes applied behavioural science knowledge.” . pressing problems. thereby solving the problem.Because norms are socially accepted beliefs held by groups about appropriate and inappropriate behaviours. and skills in ongoing systems in collaboration with system members. This process is customarily referred to as diagnosis and treatment. i.

the two top in puts. Kurt Lewin. behavioural science research and two behavioural science theory. and finally evaluating the effects of the treatments. it is a program of applying behavioural science to organizations.From this "practice theory. It is a type of action-research. then selecting and implementing treatments based on the diagnosis. and doing or implementing change efforts. represent contributions from applied science. feedback of the data to the client system members." the OD practitioner works: first diagnosing the situation.8: Composition of Applied Behavioural Science Organization development is both a result of applied behavioural science and a. problem-solving method that replicates the steps involved in the scientific method of inquiry underlies most OD activities. a comparative search on the conditions and effects of various forms of social action. 6. and action planning based on the data. I am inclined to hold the opposite to be true. The two bottom inputs. represent contributions from pure or basic science. had this to say about it: “The research needed for social practice can best be characterized as research for social management or social engineering. practice research and practice theory. perhaps more accurately.9 Action Research The action research model – a data-based. Fig. form of applied behavioural science. Action research is a method that combines learning and doing – learning about the dynamics of organizational change. who developed the concept of action research. 6. Action research is especially well-suited for planned change programs.” Concluding Comments: . and research leading to social action… This by no means implies that the research needed is in any respect less scientific or "lower" than what would be required for pure science in the field of social events. Action research involves three processes: data collection.

Taken collectively. A _____________ is defined as “a set of elements standing in interaction. 4. OD interventions alter features of the work setting causing changes in individuals’ behaviours. 2. .11 Terminal Questions 1. Self Assessment Questions 1. which in turn lead to individual and organizational improvements is the principle of Porras and Robertson model organizational change. Ralph Kilmann specified the critical leverage points for organizational change. A fundamental belief in OD is that work teams are the building blocks of organizations. 3. First—order change is also called ___________. Kurt Lewin introduced two ideas about change the first idea states that what is occurring at any point in time is a resultant in a field of opposing forces and the second is the model of the change process. each is a powerful conceptual tool for thinking out and implementing change. Systems theory views organizations as open systems in active exchange with their environment. Taken separately. What are first-order and second order change according to Burke-Litwin Model of organizational change? Explain.” 5. 2. –––––––––– gave the model “Beyond the Quick Fix”.10 Summary The foundations of organizational development form the theoretical and practice underpinnings of the field. Bring out the essence of “managing beyond the quick fix” model of organizational development. 6. 3.These foundations of organization development form the theoretical and practice underpinnings of the field. 6. In parallel learning structures members have to think and behave in ways that are different from the normal roles and rules of the organization. The Burke-Litwin model emphasized on first-order and second-order change. Action research model combines learning and doing. _____________ means sum of the efforts of team members is far greater than the sum of individual efforts of members. they constitute the beginning of a theory of organization development and change that has enormous potential for improving organizational performance and individual development. Explain Kurt Lewin’s models and theories of planned organizational change. –––––––––– means moving to new level of behaviour.

“Work teams are building blocks of organizational development.1 Introduction Objectives 7.4. Refer section 6.2. Synergy Answers to TQs: 1.3 4. 6.3 5.12 Answers to SAQs and TQs SAQs: 1.2 3. Ralph Kilmann 3. What are the features of systems theory of organizational development? 5. Refer section 6.” Comment on this statement.2.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 Characteristics of Organization Culture Culture and . System 5. MU0002-Unit-07-Organization Climate Unit-07-Organization Culture and Climate Structure: 7.Refer section 6. Refer section 6. Transactional change 4. Unfreezing 2. Refer section 6.2.1 2.

1 Introduction Basically. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. Objectives: After studying this unit. . For example. Comprehensively organization culture is the pattern of basic assumptions that is invented.4 Organization Culture and Effectiveness 7. 1986). you will be able to: · Understand Organization Culture.7 Terminal Questions 7. what members wear. and validated enough to be taught to new members as the correct ways of perceiving.3 Types of Organization Culture. You can tell the culture of an organization by looking at the arrangement of furniture. 7. and feeling in relation to these problems (Schein. · Describe different types of Organization Culture · Explain organization culture and effectiveness. organizational change must include not only changing structures and processes. Practitioners are coming to realize that. organizational culture is the personality of the organization.7. Culture is comprised of the assumptions. the culture of a large. discovered.6 Summary 7.5 Developing and changing Organization Culture Self Assessment Questions 7. what they brag about. The concept of culture is particularly important when attempting to manage organization-wide change. but also changing the corporate culture as well. thinking. for-profit corporation is quite different than that of a hospital which is quite different than that of a university.8 Answers to SAQs and TQs 7. Members of an organization soon come to sense the particular culture of an organization. etc. Culture is one of those terms that’s difficult to express distinctly. values. despite the best-laid plans. norms and tangible signs (artifacts) of organization members and their behaviors. Martin and Meyerson. but everyone knows it when they sense it. – similar to what you can use to get a feeling about someone’s personality.

the way participants interact. but one where all transactions. Hierarchies have respect for position and power. Dominate value: These are major values that the organization advocates and expects the participants to share.2 Characteristics of Organization Culture Organizational culture has a number of important characteristics. Observed behavioral regularities. 6. They often have well-defined policies. New-comers must learn those “ropes” in order to be accepted as full-fledged members of the group. do not do too little?” 3.· Discuss about developing and changing organization culture. 7. and in particular taking note of transaction cost. Philosophy: These are policies that set forth the organization’s beliefs about how employees and/or customers are to be treated. 2. internal and external are viewed in market . and the way members of the organization conduct themselves with customers or other outsiders. Rules: There are strict guidelines related to getting along in the organization. Standards of behavior exist. they use common language. 4. including guidelines on how much work to do. Hierarchical leaders are typically coordinators and organizers who keep a close eye on what is happening. terminology. 7. Note that the Market organization is not one which is focused just on marketing. and rituals related to deference and demeanor. 5.3 Types of Organization Culture Hierarchy The hierarchy has a traditional approach to structure and control that flows from a strict chain of command as in Max Weber’s original view of bureaucracy. processes and procedures. Organizational climate: This is an overall “feeling” that is conveyed by the physical layout. Which in many organizations come down to “Do not do too much. Market The Market organization also seeks control but does so by looking outward. Norms. For many years. this was considered the only effective way of organizing and is still a basic element of the vast majority of organizations. Some of the most readily agreed upon are the following: 1. Typical examples are high product quality. When organizational participants interact with one another. Low absenteeism and high efficiency.

do still exist and are often communicated and inculcated socially. Adhocracy The Adhocracy has even greater independence and flexibility than the Clan. In biological terms. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. value flows between people and stakeholders with minimal cost and delay. Leaders in an adhocracy are visionary. although not necessarily documented. the adhocracy will rapidly form teams to face new challenges. 1995) and how problems are solved in an organization. Leaders in market cultures are often hard-driving competitors who seek always to deliver the goods. In contrast to Hierarchies. Market cultures are outward looking. clans often have flat organizations and people and teams act more autonomousl. big-bang projects and development. 1993). and validated enough to be taught to new members as the correct ways of . invisible to the naked eye. innovative entrepreneurs who take calculated risks to make significant gains. It will use prototyping and experimenting rather than long.4 Organization Culture and Effectiveness It is reflected in how things are done (Flanagan. affecting the performance of every-one within the culture in positive or negative ways. people are driven through vision. Rather than strict rules and procedures. Where market success goes to those with greatest speed and adaptability. One culture could be distinguished from another in terms of how some commonly shared human problems are addressed and the specific solutions that one sought (Trompenaars. but critical to shaping its behavior. supportive way and may take on a parental role. Comprehensively organization culture is the pattern of basic assumptions that is invented. are particularly driven by results and are often very competitive. In an efficient market organization. Clan leaders act in a facilitative. It has an inward focus and a sense of family and people work well together. It may be defined as the ethos of a company (as US firms do) or the shared value and team sprit (as European firms prefer to define it). 7. Transactions are exchanges of value. which is necessary in a rapidly changing business climate. strongly driven by loyalty to one another and the shared cause. Rules. Clan The Clan organization has less focus on structure and control and a greater concern for flexibility. discovered. culture is like the DNA of an organization. shared goals. outputs and outcomes.terms.

and feeling in relation to these problems (Schein. productivity. For example. individually and collectively. 1986). The set of basic assumptions evolve into values artifacts and norms in terms of which an organization culture may be examined and understood. · Its rituals. believing. is defined and conceptualized in different ways. Artifacts: The visible manifestations of culture as seen in the physical and social environment of the organization such as: · Its structure.perceiving. symbols. goals. etc. These are the essential and enduring tenets of an organization. its core value are limited to a few in number. the jargon they use. and what is right and what is wrong. Though an organization espouses a series of values. norms. The various approaches are judgmental and open to question. They are reflected in the core capabilities of a company. Thus. the way they dress etc. and no unanimity is found in different approaches. thinking. systems and subsystems. Martin and Meyerson. and shaping organization values is difficult as values relate more to employee emotions and feeling (affective dimension) than to their rational thinking (cognitive dimension) Norms: These are a significant element of the organization’s social environment and evolve of behavior. · The observable behavior of its members (the way they talk. plaques. communicating. Identifying. and doing. Though a large volume of literature is available on the concept and working of organizational effectiveness. IBM norms dictate that employees should actively listen and respond to customer demands and complaints. Organization Effectiveness Organizational effectiveness. reflecting what is important in the organization and determining how the organization ought to be (the ethos. there is often contradiction in various approaches. · Public documents it releases and media reports and stories about it. and procedures. Values evolve out of the basic assumption and form the core (or heart) of the culture. Values: These are the social principles. the personality of the organization). rules. and are generally not compromised for short-term benefits or financial gains. or standards held by members of an organization.the informal rules of the fame telling employees what they are supposed to be saying. . various terms such as efficiency. from the basis of its policies and action. also called as organizational success or growth.

Intervening Variables: Intervening variables are those factors which are reflected as the internal state of organization. Likert states that causal variables are independent variables which determine the course of developments within an organization and the results achieved by the organization. e. 3. Causal variables include the structure of the organization and its management. From this point of view. the loyalties. to denote organizational effectiveness. 2. and perceptual cluster. the process usually involves some version of the following steps: . motivations. are often used interchangeably. Grouping variables into these categories aids greatly in the correct interpretation of the data and their use for diagnostic and other purposes. These variables have been classified by Likert into three groups-causal. decisions. end-result variables are the dependent variables which reflect the achievements in the organization such as its productivity.g. attitudes. Many of these variables are caused by causal variables. there are numerous variables. costs. and earnings. and behaviour. the organizational analysis is incomplete for a practicing manager unless the factors underlying effectiveness are identifying. intervening and end result. organizational growth. Causal Variables: Causal variables are those factors that influence the course of development within an organization and its results or accomplishment.profitability. performance goals. and (ii) the intervening behavioral cluster.which are useful in discussing organizational effectiveness over time. skills. and decision-making. Causal variables include the structure of the organization and management’s policies. Intervening variables are concerned with building and developing the organization. Likert states that the intervening variables reflect the internal state and health of the organization. These causal variables include only those independent variables which can be altered or changed by the organization and its management. communication. business and leadership strategies. 1. According to Likert. scrap loss. and perceptions of all members and their collective capacity for effective interaction. End – result Variables: End-result variable are those factors which are caused by causal and intervening variable and are often in terms of the factors in which managers are interested or measure their effectiveness. Though each individual’s effectiveness is significant but perhaps the most important aspect of effectiveness is its relationship to the entire organization. This is one part of effectiveness that many managers overlook because it emphasis long-term potential as well as short-term performance.5 Developing and Changing Organization Culture How Organizational Cultures Start Although organizational cultures can develop in a number of different ways.. and they tend to be long-term goals. The intervening variables may be divided into two broad categories: (i) the intervening attitudinal. 7. Whatever the criteria adopted for organizational effectiveness. motivational.

The founding core group beings to act in concert to create an organization by raising funds. Staffs. and a common history begins to be built. the current environmental context has undergone drastic change and either the organization must adapt to these new conditions or it may not survive. powerful stakeholders such as unions. . A single person (founder) has an idea for a new enterprise. 3. For example. 2. is worth running some risks for. The founder brings in one or more other key people and creates a core group that shares a common vision with the founder. if the appropriate organization culture is in place. the industry in which the partners come from and now reside. obtaining patents. the geographic location. money. These factors from the two cultures include the size. and so on. and is worth the investment of time. Politics. That is. then such rapid change can be welcomed and accommodated with as little disruption and as few problems as possible. Predictable obstacles include entrenched skills. and history of two firms. and how this plays out among the partners will be important to cultural compatibility. relationships. incorporating. and structures that work together to reinforce traditional cultural patterns.1. all in this core group believe that the idea is a good one. 4. or even customers may support the existing culture. Changing Organizational Culture Sometimes an organization determines that its culture has to be changed. management. At this point. others are brought into the organization. age. Structure. is workable. building. roles. moving to a new culture or changing old cultures can be quite difficult: a case can even be made that it really can’t be done successfully?. However. Where does the power and managerial decision making really reside? Corporate cultures range from autocratic extremes to total employee empowerment. and whether products and/or services are involved. 2. locating space. and energy that will be required. In addition. Even through some firms have had a culture in place to anticipate change. The case of Mergers and Acquisitions The clash between the two cultures in a merger or acquisition can be focused into three major areas: 1. New product development and information technology is changing so rapidly that any example would be soon out-of –date.

7. especially when making changes in rules and processes. Make changes from the top down. and patterns of daily behavior. if possible. Include employees in the culture change process. ___________are those factors that influence the course of development within an organization and its results or accomplishment. 7. so that a consistent message is delivered from all management team members. commitment. 6. Take out all trappings that remind the personnel of the previous culture. so that they are able to interact well with the organizational personnel. Emotions. This attempt to change culture can take many different forms. The personal feelings. Guidelines for change Despite the significant barriers and resistance to change. _____are the visible manifestations of culture as seen in the physical and social environment of the organization. attitudes. 4. ________cultures are outward looking. Self Assessment Questions 1. 5. Expect to have some problems and find people who would rather move than change with the culture and. the “culture contract” that individuals have bought into to guide their day-to-day thoughts. habits. 9. 1.3.6 Summary . are particularly driven by results and are often very competitive. organizational cultures can be managed and changed over time. Assess the current culture. Recruit outside personnel with industry experience. 3. 3. Stay the course by being persistent. 2. Set realistic goals that impact on the bottom line. take these losses early. 8. Simple guidelines such as the following can be helpful. These emotions will be a major input into the clash or compatibility of the two cultures. Move quickly and decisively to build momentum and to defuse resistance to the new culture. 2.

2 2. Refer section 7.goal approach. Factors in organizational effectiveness include casual variables. Refer section 7. Explain the characteristics of organization culture. Organizations to be successful must be efficient and effective. Effectiveness of an organization can be increased through economic man approach and administrative man approach. Causal variables Answers to TQs: 1. effectiveness through adaptive-coping cycle has been discussed. 2. 7. Refer section 7.Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. Artifacts 2. 3. intervening variables and end-result variables and there exists interrelationship among these variables.7 Terminal Questions 1. 7. . behavioural approach. Organizational effectiveness can be measured through various approaches. system-resource approach. Discuss the development and change of organizational development. Briefly explain different types of organizational culture.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . Finally. Market 3.3 3.8 Answers to SAQs and TQs SAQs: 1. and strategic constituencies approach.

5 Organizational Politics Defined and Explored 8. As Warner Burke observes: "Organization development signifies change.8 Acquiring and using Power Skills Self Assessment Questions 8.Power. we examine power and politics in relation to organization development.4 Theories about the Sources of Social Power 8.9 Summary 8.10 Terminal Questions 8. power must be exercised.1 Introduction Objectives 8.1 Introduction Politics and Power and politics.3 Two Faces of Power 8.MU0002-Unit-08Power. Politics and Organization Development Structure: 8.” Organization development has been criticized for not taking into account power in organizations. indisputable facts of organizational life. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics.11 Answers to SAQs and TQs 8.6 The Role of Power and Politics in the Practice of OD 8. Organization Development Unit-08. That criticism was essentially correct for many years although it is less valid .2 Power Defined and Explored 8. must be understood if one is to be effective in organizations. and for change to occur in an organization.7 Operating in a Political Environment 8. In this unit.

political. One goal of this unit is to advance our understanding of the role of power in OD and the role of OD in a power setting. Objectives: After this studying this unit. and organizational activities. Potential power is the capacity to do so." “Power is the ability of those who possess power to bring about the outcomes they desire. · Explain the role of power and politics in the practice of OD. spiritual. financial. Without leadership (power) in medical. the act or ability of influencing others. humankind would not have much of the misery it does today. you will be able to: · Define power and politics in organizations.today. technological." Analyzing these definitions shows some common elements: effectance-getting one’s way.’ To have power is to be able to get desired things done. but kinetic power is the act of doing so. Without influence (power) people would have no cooperation and no society. to effect outcomes.2 Power Defined and Explored "Power is the intentional influence over the beliefs." "Power is defined in this unit simply as the capacity to effect (or affect) organizational outcomes. and behaviours of people. emotions. the necessity of social interaction between two or more parties. Power-in-action may . The French word ‘pouvoir’ stands for both the noun ‘power’ and the verb ‘to be able. and outcomes favoring one party over the other.actions and the decisions that precede them. · Explain theories about the sources of power. The phenomenon of power is ubiquitous. Without leadership (power) directed toward warfare. confiscation. One person exerts power over another to the degree that he is able to exact compliance as desired. We therefore define interpersonal power as the ability to get one’s way in a social situation.” “A has power over B to the extent that he can get B to do something that B would otherwise not do. Recent years have seen a sizable outpouring of theory and research on power and politics from which OD practitioners have derived implications and applications for the field but we are still in the early stages of knowing how power and organization development should be related. humankind would not have the standard of living it does today. and repression. · Acquire skills to handle power and politics in organizations. 8.

unsocialized need to dominate others. persuading-these are examples of positive uses of power. suggests that many problems with power stem from the goals of persons with power and the means they use." A moment’s reflection. hurting. bestowed. The positive face of power is characterized by a socialized need to initiate. not the possession of power as such. power being the predominant mode. 8.4 Theories about the Sources of Social Power Power exists in virtually all social situations. the negative face of power is characterized by a primitive. . with collective. for organizations to function." · French and Raven’s "Bases of Social Power." · Salancik and Pfeffer’s "Strategic-Contingency Model of Power. We think this distinction provides a good insight into the concept of power. forcing. influencing. both positive and negative. however. or positive. it is through the use of power that things get done in the world." Her research in four organizations showed both kinds of power. 8. McClelland observed that while power has a negative connotation for most people. This positive face of power enables others to reach their goals as well as lets the person exercising power reach his or her goals. The negative face of power seeks to dominate and control others. absolute power corrupts absolutely.take many forms. How do some people come to possess power? How is power generated. or acquired? In this unit. we will examine four different views about who gets power and how: · Emerson’s "Power-Dependence theory. Patchen studied organizational decision making and found that coercive tactics were "noticeable chiefly by their absence" while problem solving and consensus seeking were much more prevalent. being exercised. Leading. selling. Roberts came to a similar conclusion in her study of "collective power" and "competitive power." · Mintzberg’s Observations on the Genesis of Power in Organizations.3 Two Faces of Power David McClelland proposed an important distinction when he identified "two faces of power" – positive and negative. the positive face of power seeks to empower self and others. Crushing. In most organizations the positive face of power is much more prevalent than the negative face of power. influence. According to him. and lead. It is especially salient in coordinated activities such as those found in organizations. In fact. Power per se is probably neither good nor bad although Lord Acton observed that "power tends to corrupt. coercing-these are examples of negative uses of power. an authority or power dimension is required.

Closely related to these ideas is the classic statement by John R. and so forth. Legitimate power – power based on everyone’s belief that the powerholder has a legitimate right to exert influence and that the power-receiver has a legitimate obligation to accept the influence. 3. power belongs to those persons who control or mediate desired commodities. rejection. we will continue the exchange relationship. Reward power – power based on the ability of the powerholder to reward another. that is. The components of this theory are a social relation between two parties and resources (commodities. and (2) inversely proportional to the availability of those goals to A outside of the A-B relation. 5. goals. which posits that what goes on between persons is an exchange of social commodities: love. Informational power is a form of expert power where the powerholder possesses important facts or information needed by the other. praise. French and Bertram Raven on "the bases of social power. P. In this theory. 2. 4. or feeling of oneness with) the power holder. information. giving someone power over us is the commodity we exchange when we are dependent on that person for something we want. influence. power. attraction. Exchange theory and power-dependence theory are quite compatible with the ideas proposed by French and Raven. rewards) that are controlled by one party. blame." In other words. Referent power – power based on the power-receiver having an identification with (attraction to. to give something negatively valued by the other. that is. ." These authors suggested five sources. if a person has something we want badly and we cannot get it any other place. Expert power – power based on the powerholder possessing expert knowledge or expertise needed by the other. hate. When the net balance for us is positive. Viewed in this light. Power-dependence theory is related to a broader framework of social interaction called social exchange theory. or bases. to give something valued by the other. we will terminate or alter the relationship. when the net balance for us is negative. Social interaction represents an exchange of social goods and services. that person has power over us. The sociologist. of social power as follows: 1. We enter into and continue in exchange relationships when what we receive from others is equivalent to or in excess of what we must give to others. Coercive power – power based on the ability of the powerholder to punish another. respect.Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another. and desired by the other. Richard Emerson states that "the dependence of Actor A upon Actor B is (1) directly proportional to A’s motivational investment in the goals mediated by B.

" The three basic conditions for the exercise of power are 1) Some source or basis of power. the ability to solve critical problems or exigencies-anything that creates dependence of one actor or set of actors on another. the influencer must have both the "will" and the "skill" to use it. supports the notion that those who have something highly valued by. used by all who have it. the five possible bases of power are. the managers. such as the board of directors. regulators. . the unions. first. coupled with 2) The expenditure of energy in a 3) Politically skillful way. seek to control the organization’s decisions and actions. units. through the placement of allies in key positions. This theory. the special expertise needed for the organization’s survival-have power. In summary. The fourth basis is legal prerogatives-being given exclusive rights to impose choices. All of these must be critical to the organization. In addition to a base of power. or information. like the ones discussed previously.The strategic-contingency model of power asserts that power in organizations accrues to the subunits (individuals. control of a resource. The important aspects of Mintzberg’s theory are that the sources of power derive from possession of a commodity desired by others. called influencers. and through the definition of organizational problems and policies." These authors view organizational power as a good thing. control of a technical skill. the employees. the top executives. The resources may be ability to reward and punish. control of a body of knowledge. to enhance their own survival through control of scarce critical resources. Salancik and Pfeffer further suggest how power is used: "Power is used by subunits. second. and that the organization is the context for the exercise of power. and. indeed. suppliers. An organization has many potential influencers. for power in the hands of the critical problem solvers helps the organization cope with the various realities it faces. "is built on the premise that organizational behavior is a power game in which various players. third.others-in this case. A fifth basis of power is access to those who have power based on the first four bases. These critical problems are generally "uncertainties" posed by the environment. This theory. knowledge. and so forth. these four views of the sources of power are remarkably similar – power stems from possession of or mediation of desired resources. customers. or departments) most important for solving the organization’s most critical problems. that power-in-action requires will and skill. Henry Mintzberg has developed a theory of organizational power drawn from the organization theory literature and his own creative synthesis abilities. According to Mintzberg. being in control of critical skills.

a relative absence of the tactics of fighting. and choosing among alternative means and goals.6 The Role of Power and Politics in the Practice OD . like power. we view politics as a subset of power. it is engaging in activities to get one’s way. you must lose-rather than win-win terms. We are inclined to consider politics as neither good nor bad per se but believe that politics. and influence others. a tendency to view situations in win-lose terms-what I win. “Organizational politics involve intentional acts of influence to enhance or protect the selfinterest of individuals or groups”. conflict resolution. has two faces. illegitimate in nature. Both relate to pursuit of self-interest and overcoming the resistance of others. the capacity to get things done by virtue of the position held. The first three definitions treat politics as a neutral set of activities. One important feature in these definitions should be examined further. “Organizational politics involve those activities taken within organizations to acquire.5 Organizational Politics Defined and Explored Harold Lasswell defined “politics simply as the study of who gets what. For our purposes. the last two definitions view politics as illegitimate or unsanctioned activities. withholding information. organizational politics is power-in-action in organizations. when. The negative face of politics is characterized by extreme pursuit of self-interest. holding hidden agendas. Analyzing these definitions suggests that the concepts of power and politics are similar. and conflict resolution processes. and a socialized need to lead. In fact. unsocialized needs to dominate others. formal power. the power vested in office. treating it as informal power. one gains a quick understanding of the overall "political climate" of an organization by studying its methods of resource allocation. resource allocation. but in this sense. These key areas are the battlefields where actors win and lose. surprise. Likewise we also treat authority as a subset of power. develop and use power and other resources to obtain one’s preferred outcomes in a situation in which there is uncertainty about choices”. engaging in open problem solving followed by action and influencing.8. Thus. viewing situations in win-win terms as much as possible. and how”. and predominant use of the tactics of fighting-secrecy. Both relate to getting one’s way-effectance. they are where the "goods" are distributed and the goals decided. deceiving. Organizational politics tend to be associated with decision-making. 8. initiate. “Organizational politics is the management of influence to obtain ends not sanctioned by the organization or to obtain ends through non-sanctioned influence means”. The positive face is characterized by a balanced pursuit of self-interest and the interests of others.

openness. collaboration. they enhance the positive face of power. Not only is organization development not a power/political intervention strategy. and educator. increases the amount of power available to organization members. "Power equalization" has long been described as one of the values of organization development. and effective pursuit of goals while decreasing reliance on the negative faces of power and politics. problem solving is usually superior to power coercion as a way to find solutions to problematic situations. OD interventions increase problem-solving. We know of no OD interventions designed to increase coercion or unilateral power. The OD consultant. and (3) to promote the client’s internal commitment to the choices made. second. co-operation. public data about the organization’s culture. thereby making the negative face of power less prevalent and/or necessary. rather. provides a service that the organization is free to "buy" or "not buy. fact-finding." The facilitator or educator role is incompatible with a political activist role because cooperation requires one set of behaviors and competition requires a different set of behaviors. and by so doing adds power to the organization. strengths. problem solver. Emphasis on power equalization stems from two beliefs: first. These values are congruent with rational problem solving and incongruent with extremely political modes of operating. For example. Valid. all OD interventions promote problem-solving. The practitioner works to strengthen skills and knowledge in the organization. OD interventions typically generate valid. In summary. (2) to promote free. Cobb and Margulies caution that OD practitioners can get into trouble if they move from a facilitator role to a political role. According to Chris Argyris. collaboration. informed choice. as a preferred way to get things accomplished. This major . and promoting individual and organizational competence are part of the foundation of organization development. catalyst. being one aspect of the positive face of power. Virtually. Values such as trust. it is instead a rational problem-solving approach that is incompatible with extreme poweroriented situations. individual dignity. The role of the OD practitioner is that of a facilitator. like all consultants. the "interventionist" has three primary tasks: (1) to generate valid useful information. In this section we will attempt to integrate those concepts with organization development and offer advice to the OD practitioner for dealing with the political realities found in organizations.We have discussed a number of ideas concerning power and politics. OD values are consistent with the positive face of power. as we discussed earlier. power equalization. not politics. and weaknesses. The practitioner is not a political activist or power broker. OD interventions do not deny or attempt to abolish the reality of power in organizations. processes. and his or her values. his or her program. but not with the negative face of power. But organization members are free to accept or reject the practitioner. organization development represents an approach and method to enable organization members to go beyond the negative face of power and politics. public data are indispensable-for problem solving but anathema for organizational politics. methods. and expertise.

First."34 This maxim has been recognized for years under the heading of "get top-level support for the program. Resource management: Power accrues to those who control resources-in this case. Political access and sensitivity: Cultivating and nurturing multiple relationships with key power figures in the organization will ensure timely information and multiple sources of support. it will gain more power. Stature and credibility: Beer notes that power accrues to those who have been successful and effective. Early success in the OD program and its usefulness to key managers of the organization helps promote this reputation. followed by some rules of thumb for the OD practitioner. 8. organization development practitioners operate from a potentially strong power base they can use to advantage. Success leads to credibility and stature. 2. the resources of OD expertise and ability to help organizational subunits solve their pressing problems. 6. in powerful places. Sponsorship: "Organization development groups will gain power to the extent that they have sponsorship. the OD consultant possesses power from the following bases: legitimate power (the OD program and consultant are authorized by the organization’s decision makers). it will be strong externally. According to the framework of French and Raven. 3. Competence: Demonstrated competence is the most important source of power. preferably multiple sponsorship. and possibly referent power (others may identify with and be attracted to the consultant). informational power (the consultant has a wealth of information about the strengths and weaknesses of the organization). expert power (the consultant possesses expert knowledge). These sources of influence produce a substantial power base that will enhance the likelihood of success. and ability to gain organizational support." 4. the values. Paying attention to these sources of power will enhance the likelihood of success of OD programs. 5.7 Operating in a Political Environment We will present some general observations on operating in a political environment. . If the OD group is cohesive and free of internal dissention. acceptability. and the roles of OD practitioners. the technology.strength of OD derives from the strategy of change. Group support: If the OD group is strong internally. Michael Beer has identified additional means by which an OD group can gain and wield power in organizations: 1.

The preceding rules of thumb describe ways to increase or solidify one’s power base. OD consultants have a formal or informal contractual agreement with managers to help them do what they are trying to do-better. When the OD program serves the needs of top executives. Being of value to multiple powerholders rather than a single one both increases support and reduces the likelihood that the program will become the target of political activities. and expertise. OD practitioners are likely to have high interpersonal competence by virtue of their training. Skills such as listening. OD programs should be results-oriented. Beer and Walton argue that organization development should move from being practitioner centered to being manager-centered. The following rules describe ways to avoid becoming involved in one’s own or in others’ political struggles. the manager will vigorously defend it. Rule Three: Make the OD program a valued commodity for multiple powerful people in the organization. usually managers. . Rule Four: Create win-win solutions. it gains an aura of respect and protection that sets it above most political entanglements. Good OD practitioners will have learned and practiced these skills. counseling. both as a person and as a professional. Another way the OD program becomes a desired commodity is by focusing on important issues. problem solving. The nature of organizations and the nature of organization development suggest this rule.What advice is available for OD practitioners who want to operate more effectively in a political environment? Several rules of thumb are implied by the fact that power accrues to persons who control valued resources or commodities. Becoming a desired commodity as a person means being interpersonally competent and trustworthy. those issues vital to the organization’s success. to help them achieve their goals and solve their problems. Many OD interventions promote win-win solutions for conflict situations. OD programs become desired commodities when they are instruments that allow individuals and organizations to reach their goals. Each is derived from one general principle: Mind your own business. Sometimes OD practitioners overlook that they are hired by others. OD professionals who are skilled in conflict management techniques and OD programs that encompass conflict resolution activities become valued commodities. constructive social relationships. The role of the OD consultant is to help others upon request. and showing appreciation for the strengths of others are components of interpersonal competence. experience. which is to help someone else solve his or her major problems. not the OD consultant. coaching. Organizations are social systems in which members have both a history and a future of interacting. A valuable by-product of this fact is that if the program runs into political turbulence. Rule Five: Mind your own business. Rule Two: Make the OD program itself a desired commodity. Rule One: Become a desired commodity. and effective conflict management techniques are required to enhance stable. communicating. The OD program belongs to the manager.

" and "going around the formal system." OD practitioners have typically pursued a "playing it straight" strategy as their sole means of exerting power. and personality characteristics. viable. 8. Illegitimate behavior encroaches on others’ legitimate "turf. not by getting involved in the answers. One carries out such a strategy by participating in alliances and coalitions. and educator. Earlier we stated that the OD practitioner should learn as much as possible about bargaining. others’ support. which is to be an expert on process. As shown in the figure. Rule Seven: Mind your own business because to do otherwise is to invite political trouble. but these give the flavor of the issues one must consider when operating in a political environment. and the characteristics and behaviors of powerholders.Rule Six: Mind your own business. yet legitimate means of acquiring power.1: Power Base and Power Strategy Connection Individual Power Bases Knowledge Strategies for Success Playing It Straight . Attention to these rules can save OD practitioners time and energy that can be more profitably invested in the OD program. Abiding by this rule keeps the consultant from becoming entangled in politics." which arouses defensive actions. negotiations the nature of power and politics. but that does not mean practitioners must be naive or incompetent in the political arena. not power activist or power broker. while at the same time increasing his or her usefulness to the organization’s powerholders. Illegitimate behavior causes others to try to exert greater control over the situation. Table 8. The authors propose adding the "using social networks" strategy to their repertoires. individual power derives from knowledge. catalyst. We believe the legitimate role of the OD practitioner is that of facilitator. such behavior is often interpreted as politically motivated. problem solver. A subtle phenomenon is involved here: when people engage in illegitimate behavior. not content." "using social networks. dealing directly with powerholders and decision makers. Organizational politics revolve around decisions: Should we seek Goal A or Goal B? Should we use Means X or Means Y? Should we promote Mary or John? The proper role of OD consultants is to help decision makers by providing them with good decision-making processes. Three successful power strategies are "playing it straight. the strategy and tactics of influence. The principle is simple but powerful: know your legitimate business and stick to it. We could propose more rules of thumb.8 Acquiring and Using Power Skills The OD practitioner is neither power activist nor power broker. Networking is recognized as a potent. thereby greatly expanding practitioner influence. and using contacts for information.

The four stages are: Phase I Consolidating Power to Prepare for Change Phase ll Focusing Power on Strategic Consensus Phase Ill Aligning Power with Structure and People Phase IV Realizing Power through leadership and Collaboration These stages are the means the OD consultant uses to "take the high road" mentioned in the previous quotation-build a power base. then utilize a facilitative OD process in which the powerholders work on strategic business issues using consensus decision making to develop a corporate strategy.) Position power derives from five sources: Centrality-access to information in a communication network. how-to book on power and organization development is well worth studying. personal attraction. effort. (Legitimacy refers to abiding by and promoting the values of the organization. visibility-how much one’s work is seen by . personal power and position power. The power structure will realize that collaborative power is preferable to manipulation and deception. and legitimacy. Personal power. in turn. a person’s power comes from two main sources. which in turn will protect the interests of all concerned.· Expertise · Information · Tradition Others’ Support   · Use data to convince · Focus on target group · Be persistent Using Social Networks · Alliances and coalitions · Deal with decision maker · Contacts for information Going Around Formal System · Work around roadblocks · (Don’t) use organization rules Political access Staff support Personality    Charisma Reputation Professional credibility Finally. Whetton and Cameron’s model is shown in following figure. arises from expertise. influence key powerholders to accept the OD program. This practical. the authors propose a four-stage model for using the OD process to help the power elite transform the organization in ways beneficial for all concerned. criticality-how important one’s job is flexibility-the amount of discretion in the job. even those of little power. In this model.

" Three things are involved in converting power into influence: (1) resisting other people’s inappropriate influence attempts. According to these authors. Reciprocity refers to exchange of favors. Having power is one thing. and relevance-how important one’s task is in relation to organizational priorities. Retribution refers to coercion and threats. “One of the most important ways of gaining power in an organization is by establishing a broad network of task and interpersonal relationships. Networks are critical to effective performance for one compelling reason: Except for routine jobs. Usually reason is the preferred strategy. Fig. power-in-use is called influence. Retribution is not recommended except in unusual cases. actually using it to get things done is another. no one has the necessary information and resources to accomplish what’s expected of them.1: Model of Power and Influence Networking is used to increase both personal power and position power." And. reciprocity. Whetton and Cameron suggest . Reason refers to persuasion by facts. They write: "Influence entails actually securing the consent of others to work with you in accomplishing an objective. and (3) empowering others. "Power is converted into influence when the target individual consents to behave according to the desires of the power holder. one investigation of the determinants of effective management performance concluded that a key factor distinguishing high and low performers was the ability to establish informal relationships via networks”. Indeed. 8. (2) selecting the proper influence strategy.influential people. and retribution. and reciprocity can be useful when reason fails. Three influence strategies can be used to influence others-reason.

8. arise from known conditions. 3. Our suggestions for using power to operate effectively in organizations may help practitioner avoid the perils and pitfalls of power that "go with the territory" of organizational change. –––––––– defined politics as the study of who gets what.several means of resisting others’ influence attempts such as confrontation and using countervailing power.9 Summary Power and politics are inseparable facts of organizational life. Concluding Comments: In this unit. and how. _____________ has identified two faces of power. collaborative work environment. 5. Power can be either positive or negative. . Strategic-contingency model of power asserts that power that accrues to the individuals. and (6) build on success. 4. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics. when and how. emotions or behaviour of people. (4) express confidence (5) foster initiative and responsibility.10 Terminal Questions 1. 8. Organizational power is the ability of those who possess power to bring about the outcomes they desire. Power and politics are similar in nature. (3) reward and encourage others in visible and personal ways. Methods for empowering others are the following: (1) involve subordinates in assigning work. and are amenable to positive control. Define power in an organizational context and explain types of power.. Organizational politics involve intentional acts of influence to enhance or protect the self-interest of individuals or groups. –––––––––– is made up of Charisma. we have examined power and politics with the goals of understanding the phenomena and deriving implications for OD practitioners. Self Assessment Questions 1. 2. –––––– is the intentional influence over the beliefs. and are amenable to positive control. arise from known conditions. Power and politics are similar in nature. units or departments is most important in solving organizational problems. (2) provide a positive. Organizational politics is defined as the study of who gets what. Power based on the power-receiver having identification with the power holder is called ––– ––––––––. Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another. when. reputation and professional credibility.

8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Explain the role of power and politics in the practice of OD.6 5.2.4 3. Identify the bases of individual power and the respective strategies for their success. 5. 4. Referent power 4. Refer section 8.11 Answers to SAQs and TQs SAQs: 1. Refer section 8. 3. Refer section 8. Describe briefly various theories of power.Refer section 8. 8. Personality Answers to TQs: 1. McClelland 3. Refer section 8. Define organization politics. Harold Lasswell 5.2 2.5 4. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9.1 Introduction . Power 2.

1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. These programs are derived from careful diagnosis. actions.4 Management By Objectives 9.Objectives 9.9 Reengineering Self Assessment Questions 9. An organization development intervention is a sequence of activities.11 Terminal Questions 9. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design.6 Quality of Work Life Projects 9.3 Socio Technical Systems 9. Nothing is permanent except change because change is permanently changing. organizational problems may repeat.12 Answers to SAQs and TQs 9. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future. These methods are receiving increasing attention in Organization Development. In this dynamic and fluid environment.8 Total Quality Management 9. events intended to help an organization improve its performance and effectiveness.10 Summary 9. Objectives: .2 Meaning and Definitions 9. One important intervention technique is Technostructural interventions because these are related to technical and structural issues such as how to divide labour and how to coordinate department which is related to Restructuring organization. These interventions vary from standardized program that have been developed and sometimes tailored program.7 Parallel Learning Structures 9.5 Quality Circles 9.

Changes can involve decentralization and centralization. 3. meaning the major costs are associated with analysis and design of change. their attractiveness is also increased by the following advantages: 1. Weeks and months of group effort are saved. · Discuss the Management By Objectives · Explain the Quality Circles. and OD practice enables the change agent to estimate the probable consequences of the change. This normally is a reasonable. Structural changes are consistent with their operating styles and are generally understood by practitioners. Organization Acceptance of Change. structural Interventions compare quite favorably with all other alternatives. Structure changes are normally “institutionalized” and less subject to this problem.After studying this unit. Basic reinforcement theories.2 Meaning and Definitions Structural Intervention is related to the changes that relate elements of organization to one another. · Discuss the parallel Learning Structures. One problem with behavioral/ group interventions is the tendency for new managers or employees to discount or fail to continue the change program. The cost of structural change is generally “front-end” loaded. includes removing or adding layers to hierarchy. organization theory. · Explain Total Quality Management. 2. you will be able to: · Explain the Socio technical change. and more . · Explain Reengineering. Cost is Low. From a benefit cost analysis. Advantages of Structural Interventions There are a number of reasons why a consultant should consider employing a structural intervention. Downsizing associated with restructuring. 9. Managers and administrators are notoriously pragmatic. 5. In addition. 4. Succession Doesn’t Destroy Change Effort. Once diagnosed and an appropriate correction developed. change can be introduced relatively rapidly by top management. Greater Predictability. Rapidity of change.

3 Socio Technical Systems Socio-technical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. it has been defined as follows: MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. processes and functions to create a balance between the organization and its changing external environment. 1976. therefore. The term MBO was coined by Drucker in 1964 when he emphasized the concept of managing by results. consciously directed towards the effective and efficient achievement of organizational objectives. Since then. Though there are some variations in the practices of MBO and. Its basic idea has been derived from the concept of participative goal setting as a technique of OD.4 Management by Objectives Management by objectives (MBO). It could involve the following steps (Foster. a predictable cost Implementation of group strategies involves significant long-term man-hour and consultant costs. its definitional aspect. though not strictly an OD intervention in the sense in which other interventions have been discussed so far. many business and nonbusiness organizations have adopted this in some form or the other. 1967. 1988): • Determining the environmental demands • Creating a vision statement • Educating organizational members • Creating the change structure • Conducting socio-technical analysis • Formulating re-design proposals · Defining the scope of the system to be re-designed · Implementing recommended changes · Evaluating changes 9. 9. Cummings. It endeavors to re-design the organization’s structure. is a technique and system which helps in improving organizational performance.critically. Pasmore.” .

MBO is bound to have some relationship with every management technique. often MBO provides the stimulus for the introduction of new techniques of management and enhances the relevance and utility of the existing ones. non-specialist.” Based on the definition of MBO. Similarly. The review is future-oriented because it provides basis for planning and corrective actions. all the units or departments and individual manager. delegation of authority. This is possible because MBO tries to match objectives and resources. superiors and subordinates. In fact. its features can be identified as follows: 1. The MBO is characterized by the participation of concerned managers in objective setting and performance reviews. normally once a year.. It works as an integrating device. 5. and human resources of the organization by integrating the individual with organization and organization with the environment. The basic emphasis of MBO is on objectives. 3. MBO is also concerned with determining what these results and resources should be. MBO is the joint application of a number of principles and techniques. On the other hand. MBO is an approach and philosophy to management and not merely a technique. its subsystems and people. It emphasises initiative and active role by the manger who is responsible for achieving objectives. Therefore. physical. Whereas the various techniques of management help in measurement of results in resources. with objective orientation as its essence. operational managerial process for the effective utilization of material. reward and punishment system is attached with the achievement of the objectives. Resource allocation. It is a particular way of thinking about management. Certain degree of overlapping is there. including the corporate level. managers have the opportunities for clarifying their job relationships with peers. Objectives provide the means for integrating the organization with its environment. etc. Objectives in MBO provide guidelines for appropriate system and procedures. MBO is likely to affect every management practice in the organization. This process clarifies the role very sharply in terms of what one is expected to achieve. 4.The integration of individual and organizational objectives through MBO has been emphasized by Chakravarty when he has defined MBO as follows: “MBO is a result-centered. each manager takes active part in setting objectives for himself and also in evaluating his performance as to how he is performing. Objectives are established for all the levels of the organization. . Periodic review of performance is an important feature of MBO. As an approach to management. 6. A management technique can be applied in selected parts of the organization and will have limited implications for its other parts. 2. The total management process revolves round the objectives set jointly by the superior and the subordinate. The performance review is held regularly. Therefore. MBO employs several techniques but it is not merely the sum total of all these techniques. are determined on the basis of objectives.

Process of MBO MBO is a system for achieving organizational objectives, enhancement of employee commitment and participation. Therefore, its process should facilitate translation of basic concepts into management practice. The MBO process is characterized by the emphasis on the rigorous analysis, the clarity and balance of objectives, and participation of the managers with accountability for results. The MBO process is not as simple as it appears to be. Managers need training and experience for developing the required skills. 1. Setting of Organizational Purpose and Objectives: The first step in MBO is the definition of organizational purpose and objectives. Questions, such as, “why does the organization exist?”. What business are we in?” and what should be our business?” provide guidelines for the statement of purpose. This, in interaction with external factors, then determines the long-range strategic objectives like (i) whether to achieve growth through expansion in the same line of business or diversity: (ii) what should be blending of trading and manufacturing activities; (iii) what should be the degree of vertical integration and so on. Usually the objective setting starts at the top level of the organization and moves downward to the lowest managerial levels. This will go in a sequence like this (i) defining the purpose of the organization, (ii) long-range and strategic objectives, (iii) short-term organizational objectives, (iv) divisional/departmental/sectional objectives, (v) individual manager’s objectives. 2. Key Result Areas: Organizational objective and planning premises together provide the basis for the identification of key result areas (KRAs). It may be emphasized that KRAs are derived from the expectations of various stakeholders and indicate the priorities for organizational performance. KRAs also indicate the present state of an organization’s health and the top management perspective for the future. Examples of KRAs applicable to most of the business organizations are (i) profitability, (ii) market standing, (iii) innovation, (iv) productivity, (v) worker performance, (vi) financial and physical resources, (vii) manager performance, and (viii) public responsibility. Even though KRAs are most durable, the list of KRAs gets considerably changed over the period in response to new needs and opportunities. Sometimes, the achievement in a particular KRA also provides the impetus for a new KRA in future. 3. Setting Subordinates’ Objectives: The organizational objectives are achieved through individuals. Therefore, each individual manager must know in advance what he is expected to achieve. Every manager in the managerial hierarchy is both superior and subordinate except the person at the top level and lowest level. Therefore, there is a series of superior and subordinate relationships. The process of objective setting begins with superior’s proposed recommendations for his subordinate’s objectives. In turn, the subordinate states his own objectives as perceived by him. Thereafter, the final objectives for the subordinate are set by the mutual negotiation between superior and subordinate. In the beginning of MBO process in an organization, there may be wide gap between the recommended objectives by the superior and subordinate’s stated objectives because the latter may like to put lesser burden on him by

setting easily achievable objectives. However, with the experience gained over the period of time, this gap narrows because of narrowing down of perception of superior and subordinate about what can be done at a particular level. 4. Matching Resources with Objectives: When objectives are set carefully, they also indicate the resource requirement. In fact, resource availability becomes an important aspect of objective setting because it is the proper application of resources which ensures objective achievement. Therefore, there should be matching between objectives and resources. By relating these to objectives, a superior manager is better able to set the need and economy of allocating resources. By relating these to objectives, a superior manger is better able to see the need and economy of allocating resources. The allocation and movement of resources should be done in consultation with the subordinate manager. 5. Appraisal: Appraisal aspect of MBO tries to measure whether the subordinate is achieving his objective or not. If not, what are the problems and how these problems can be overcome? Appraisal is undertaken as an ongoing process with a view to find out deficiency in the working and also to remove it promptly. It is not taken merely to punish the non-performer or to reward the performer. It is taken as a matter of system to ensure that everything is going as planned and the organization is able to achieve its objectives. 6. Recycling: Though appraisal is the last aspect of MBO process, it is used as an input for recycling objectives and other actions. Objectives are neither set at the top and communicated to the bottom nor are they set at the bottom and go up. Objective setting is a joint process through interaction between superior and subordinate. Therefore, what happens at each level may affect other levels also. The outcome of appraisal at one level is recycled to see if the objectives have been set properly at the level concerned and also at the next higher level. 9.5 Quality Circles Quality circle is one of the most popular methods in the USA which was originally developed in Japan in 1950s.Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. Quality circle requires a managerial philosophy and culture that promotes sharing power, information, knowledge, and rewards. Quality circle program consists of several circles, each having three to fifteen members. The original idea of quality circles involved small groups of volunteers meeting on a regular basis, but in its contemporary form, quality groups are often compulsory and organized around specific work teams. Some organizations have even gone as far as setting targets for the number of suggestions quality groups are expected to come up with. 9.6 Quality of Work Life Based on the research of Eric Trist et al. at the Tavistcock Institute of Human Relations in London, this approach looked both at technical and human sides of organizations and how they

are interrelated. QWL programs, in general, require joint participation by union and management in the process of work-designing, which consequently result into high level of task variety, appropriate feedback and employee discretion. The most distinguishing feature of QWL program is the development of self-managing work groups which consist of multi-skilled workers. 9.7 Parallel Learning Structures Parallel Learning Structures (also known as Communities of Practice) promote innovation and change in large bureaucratic organizations while retaining the advantages of bureaucratic design. Groups representing various levels and functions work to open new channels of communication outside of and parallel to the normal, hierarchical structure. Parallel Learning Structures may be a form of Knowledge Management. Knowledge Management involves capturing the organization’s collective expertise wherever it resides (in databases, on paper, or in people’s heads) and distributing it to the people who need it in a timely and efficient way. It Consists of a steering committee and a number of working groups that: · Study what changes are needed in the organization, · Make recommendations for improvement, and · Then monitor the resulting change efforts. 9.8 Total Quality Management It is a long term effort that orients all of an organization’s activities around the concept of quality. It is very popular in USA in 1990s.TQM pushes decision making power downwards in the organization, provides relevant information to all employees, ties reward to performance and increase workers knowledge and skills through extensive training. It is also called continuous quality improvement. A combination of a number of organization improvement techniques and approaches, including the use of quality circles, statistical quality control, statistical process control, self-managed teams and task forces, and extensive use of employee participation. Features that characterize TQM: · Primary emphasis on customers. · Daily operational use of the concept of internal customers. · An emphasis on measurement using both statistical quality control and statistical process control techniques.

An organization development __________ is a sequence of activities. eliminating. or restructuring activities without regard to present hierarchical or control procedures. From a benefit cost analysis. It seeks to make such processes more efficient by combining. MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. contemporary measures of performance.· Competitive benchmarking. · A major emphasis on continuous learning. consciously directed towards the effective and efficient achievement of organizational objectives. · Top management support on an ongoing basis. structural Interventions compare quite favorably with all other alternatives.9 Reengineering It is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical. actions. 2. service. · An emphasis on teams and teamwork. 9. Reengineering is a top-down process. such as cost. __________ represents a participative approach to employee involvement in problem solving and productivity improvement. The term MBO was coined by _________ in 1964. events intended to help an organization improve its performance and effectiveness. Quality . and speed. actions. 3. · Continuous search for sources of defects with a goal of eliminating them entirely. assumes neither an upward flow of involvement nor that consensus decision making. Self Assessment Questions 1. Reengineering focuses on visualizing and streamlining any or all business processes in the organization. There are a number of reasons why a consultant should consider employing a structural intervention. events intended to help an organization improve its performance and effectiveness.10 Summary An organization development intervention is a sequence of activities. Sociotechnical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. · Participative management. quality. 9.

Refer section 9. It consists of small group of employees who meet voluntarily to identify and solve productivity problems.2 3. It is also called continuous quality improvement. .5 4.3 2. Intervention 2. provides relevant information to all employees. Quality circle Answers to TQs: 1. Refer section 9. Drucker 3. ties reward to performance and increase workers knowledge and skills through extensive training. Explain Management By Objectives? 4.11 Terminal Questions 1. TQM pushes decision making power downwards in the organization. 9. 9. Refer section 9.Refer section 9.circle represents a participative approach to employee involvement in problem solving and productivity improvement.12 Answers to SAQs and TQS SAQs: 1. Discuss Socio Technical Systems? 2.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . What are the advantages of structural interventions? 3. Write a short note on Total Quality Management.

1 Introduction Objectives 10.6 Methods of Reducing Resistance to Change. 10. Nothing is permanent except change because change is permanently changing. Self Assessment Questions 10. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented). organizational problems may repeat. and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other.3 Resistance to Change 10.7 Summary 10.4 Causes for Resistance to Change. Hence.MU0002-Unit-10-Managing Organization Development Unit-10-Managing Change in Organization Development Structure: 10.5 Impact of Change on the Future Manager 10.9 Answers to SAQs and TQs 10.1 Introduction Change in Organizations are increasingly realizing the fact that change is the price of the survival.2 Nature of Change 10.8 Terminal Questions 10. Objectives: . cope with the ongoing changes successfully in the first instance. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future. In this dynamic and fluid environment.

Any change may effect the whole organization. It implies a new equilibrium between different components of the organization – technology. structural arrangement. some parts may be affected directly. · State the methods of reducing resistance to change. Newstrom and Davis have explained the impact of a change in any part of the organization on the total organization. indirectly. or social. They have illustrated it by comparing an organization to an air-filled balloon. and others. the contour of the balloon visibly changes. 2. employees want to maintain a status quo. . we find that the shape of the entire balloon has changed. Thus. the change in organization does not occur purely on mechanical relationship. While managers as change agents want to bring changes in the organization. 3. organizational change is the alteration of work environment in an organization. · Discuss the nature of change · Explain resistance to change and the factors which resist change.After studying this unit. some parts of organization may be affected more. which are major ones. organizational change may have the following features: 1. they have concluded that the whole organization tends to be affected by change in any part of it.whether physical. some changes which are of minor type may be absorbed by the existing equilibrium. 10. When a finger (which represents external force) is forced against a point on the balloon (which represents the organization). However. When change occurs in any part of the organization. less. you will be able to: · Explain the meaning of organization change. others. it has stretched slightly. Thus. However. it disturbs the old equilibrium necessitating the development of a new equilibrium. what is important at this point is that a change in any part affects the entire organization and subsequent changes are required in other parts. job design and people. However. Though this phenomenon will be taken later. it becomes indented at the point of contact.2 Nature of Change The term ‘change’ refers to an alteration in a system. if we look minutely. · Impact of change on future managers. biological. and others. may require special change efforts. Thus. Organizational change is a continuous process. The type of new equilibrium depends on the degree of change and its impact on the organization.

10. In fact. or they have been forced to adopt alternative strategies. We shall take new workers at the new place. the managers face the problem of resistance to change. Resistance as Cost: Since all changes have some cost. Homeostasis implies self-correcting characteristics of organism to maintain equilibrium as a result of change.as cost and as benefit. Before we trace out the reasons for résistance to change. the company procured land near its old plant site but later shifted the new plant site away from the old plant because of resisting work culture of the old plant which was expected to percolate to the new plant also. the reality lies in between. like shifting of the manufacturing plants at new locations. social systems tend to resist change because of homeostasis. People tend to resist many types of changes because new habits or sacrifices are required. Thus. so is the resistance to change. We wanted a new culture and new layout. If people resist to change. let us discuss whether resistance is always bad as it is generally perceived to be. there are two sides of resistance. resistance to change provides help in managing change in two ways: . but when a change is major or unusual. adjustment is fairly routine. fear of change can be as significantly disrupting as change itself. When change is minor and within the scope of correcting programme. the organizational may not be able to introduce new phenomena in order to adapt environmental requirement. Resistance to change forces management to find out this reality which helps in managing change more effectively. On this phenomenon. and on the other.3 Resistance to Change In the management of change effectively. resistance to change is costly affair. it provides some benefits to the organization as its change agent. Madhur Bajaj. One example of Bajaj Auto Limited is relevant here. because it produces identical symptoms. Resistance by some members of the organization provides an opportunity to the change agents to weigh the pros and cons of introducing change more carefully. more serious upsets may occur. Many companies have been forced to do so in the past. people act to establish a steady state of need fulfillment and to secure themselves from disturbance of that balance. Managing Director of Bajaj Auto. In order to increase its manufacturing capacity of two-wheelers. In fact. many organizations have been forced to abandon change programmes because of resistance to such programmes. While on negative side. We saw resistance to change at the existing plant. that is. Similarly. and its basic survival may be jeopardized. commented. “The Pune plant is fully saturated.” Resistance as Benefit: On the one hand. This leads to general proposition that people and their social systems will often resist change in organizations. In fact.

These feelings. These feeling may be based either on reality or there may be emotional feeling towards the change. When computer was introduced in the business sector in India. technology. Economic Factors People feel attached to the organization for satisfying their needs and economic needsphysiological. 3. precede over other needs. Therefore. the reasons underlying resistance to change may be identified at these two levels: Individual Resistance There are many factors operating at the individual level which are responsible for resistance. job security etc. 2. psychological and social. Skill Obsolescence: A change is generally meant for better methods of working which may involve new techniques. Psychological Factors . Fear of Economic Loss: A change may create fear of economic loss in the sense that it may affect economic compensation adversely. People may perceive that they will be adversely affected by the change in terms of their needs satisfaction in the following ways: 1. 2. people may feel that in the new system. etc. Factors in Resistance to Change People tend to evaluate the effect of change individually but they express it through group in collective form. they will have lower opportunity to earn incentives and bonus as the new system requires additional skills. It may signal the need for more effective communication about the meaning and purpose of a change or need to rethink precisely how a proposed change will affect the organization and its members. It also highlights real inadequacies in the proposed change and suggests better ways for developing and introducing changes. it attracted a lot of resistance because of this reason.. either real or emotional. bonus. may be seen in the context of three types of factors: economic. All these are well-established in the old system. and turn into technological unemployment. they simply resist such a change. Degree of force in resistance depends on how people feel about change. Whenever there is change. whenever people sense that new machinery (change) poses a threat of replacing or degrading them. etc. reduce job options.1. Reduced Opportunities for Incentives: Employees are generally offered incentives linked to their output in the form of incentive schemes. This feeling is created because people feel that those who can match the new requirements will be better off than those who cannot match.

When there is any change. low tolerance for change.e. Lack of Trust in Change Agent: The effect of change is perceived in the context of change agent. . The change initiated by the organization disturbs such equilibrium and people have to obtain another equilibrium which is a painful exercise. 4. through their mutual compatible interactions. 1. everyone tries to avoid it. Therefore. their existing social interactions are likely to be changed. Low Tolerance for Change: In the context of maintaining status quo. the change may be perceived as an instrument for exposing the weakness of the people. particularly social needs. The change will bring results in future. lack of trust in change agent. Fear of Unknown: A change may be perceived as entering into unchartered area which is unknown. may be logical from people’s point of view but may be illogical from the change agent’s point of view. 5. Ego Defensiveness: A change may affect the ego of the people affected by the change and in order to defend their ego. therefore. This lack of certainty creates anxiety and stress in the minds of people and they want to avoid it. This is the reason why labour union resists changes initiated by management because of the feeling that labour and management are two different interest groups in the organization. The lack of adequate information about the likely impact of change further complicates the problems. these people resist any new idea. people resist change. Desire to Maintain Existing Social Interaction: People desire to maintain existing social interaction since it is a satisfying one. They form their own social groups at the work place for the satisfaction of their social needs. they resist change. which people do not want. To the extent the satisfaction of these needs is affected by a change. Social Factors People derive need satisfaction. Major psychological factors responsible for resistance are: ego defensiveness. Status Quo: People want status quo. Thus. that is. Therefore. Therefore. i. Some people have very low level of tolerance for change and ambiguity as compared to others. they show resistance to change efforts. These are qualitative and. which is always uncertain. people resist it. 2. status quo. sentiments and attitudes towards change. they do not want any disturbance in their existing equilibrium of life and work pattern. 3. A change in itself suggests that everything is not right at a particular level. If people have low degree of confidence in the change agent. and fear of unknown.Psychological factors are based on people’s emotions. the person who initiates change. 1. The major factors causing resistance to change are: desire to retain existing social interaction and feeling of outside interference. people may differ.

it may not be possible for the organization to bring necessary change. It a change is required in these aspects.g. change initiated by managers affecting workers. Sumantra Ghoshal. All these work in some circumstances. even the organization itself resists many changes because of certain reasons. an organization has to adapt to its environment but the adaptation has its own cost. 1. This is the reason why many old industrial houses are languishing far behind and their places are being taken away by newer organizations. millstones and routines. Stability of Systems: The organization may design a system through which it may derive many benefits. resource limitations. Feeling of Outside Interference: A change brought about by the change agent is considered to be interference in the working of people. dogmas. values. Digital Equipment Corporation. nothing fails as spectacularly as spectacular success. 2. Many organizations are designed to be innovation-resisting. a professor of strategic leadership who is considered to be a management Guru. It is called ‘The Failure of Success’. if new . resources and processes of the most successful companies have in the past ossified into clichés. Resource Limitations: No doubt. For example. and institutes reward and punishment system. Many powerful organizations of the past have failed to change and they have developed into routines. For example. stability of systems. Some of these reasons are basic while others are by-products of those. these organizations start falling. Zerox or nearer home-TI cycles. The system is stabilized and any change may be perceived as a threat by the organization itself. Counting Past Successes: A major problem before the organizations which have past success stories is how to face challenges of the changing environment. If the organization is not fully equipped for meeting such demands. Strategies. all these companies have been victims of corporate disease. The major reasons for organizational failure to change are: counting past successes. first two reasons are basic and others are by-products of the first two. sunk cost.2. they become too rigid to change and they hide their failure to change in the guise of past successes. the organization may not bring it easily because it is accustomed to a particular system. Organizational Resistance to Change: Not only individuals and groups within an organization resist change. a bureaucratic organization has certain fixed rules. Since these organizations have achieved success by following a particular set of management practices.. e. This phenomenon is heightened if the change agent belongs to another social class. The latter my feel that managers try to make workers an instrument for higher productivity but the outcome of this productivity will be retained by them. prescribes rigid authority relationships. For example. has commented as follows: “Nothing fails like success. and inter-organizational agreement.” This statement suggests that organizations tend to stabilize at a particular level and if the change efforts are not brought. Caterpillar. 3. For example. Whether it is IBM.

if the change is required. It is necessary too that other organizations also agree to the change proposal. Once the assets are acquired. organization has to pay for his services though these may not be as useful. analyzers. the organization has to take into consideration the wishes of other organizations too. what will happen to these assets? Naturally. Defenders: These are the firms which penetrate in a narrow market product domain and guard it. those who wonder what happened. Analyzers: Above two are the extreme cases of choice-making modes in between the analyzers and reactors. Sunk Cost: Most of the organizations have sunk cost involved in various assets. 5. In such a case. and reserve some resources unutilized for future use. it may enter into agreement with other organizations over certain aspects of working. 4. those who watch things happen. it is not necessary that his services are done away with. 4.technology is adopted. if any change is to be incorporated.defenders. decentralized controls. forward-looking. Thus. and put less emphasis on environmental scanning. the organization will like to make a comparison between the outcomes of changed programme and continuing with old programme in the light of this sunk cost. and commensurate expenses on other items also. Now. If it is risk-taking. Sunk cost cannot be only in terms of various physical things. prospectors. 2. Miles and Snow have classified them into four categories. They emphasize more on cost-effectiveness. 1. For example. It an individual is not making commensurate contribution. Therefore. they cannot survive. Based on the aggressiveness which various companies show in changing themselves. Analyzers act sometimes as defenders and sometimes as prospectors. the organization may enter into agreement with labour union about not bringing any technological change. broad environmental scanning. these can be used for specific period. This can be in the form of people also. They go on searching new products/markets on regular basis. It depends more on the style of top management. Prospectors: These firms use broad planning approaches. Inter-organizational Agreements: The organization interacts with its environment. . they have to behave in one of the above three ways. centralized control. Otherwise.” This is the true reflection of difference between change-initiating companies and changeresisting companies. Reactors: These organizations realize that their specific environment is changing but fail to relate themselves with the changing environment. innovative. 3. and reactors. In this interaction process. Let us see what someone has said long back: “There are three types of companies: those who make things happen. it will require resources to procure machine. the organization may take change programmes much more frequently. and has zeal for progress. intensive planning. building and training for its personnel.

therefore. taking a new set of streets to work. and so on. It is easiest for management to deal with resistance when it is overt and immediate. engaging in a work showdown. For example. For instance. Resistance can be overt. immediate. some may fear they’ll be unable to do so. Security: People who have a high need for security are likely to resist change because it threatens their feeling of safety. They may. Changes in job tasks or established work routines also can arouse economic fear if people are concerned they won’t be able to perform the new tasks or routines to their previous standards. adjusting to the new office layout. When we are confronted with change. we’re creatures of habit. Training . or the like. we don’t need to consider the full range of options for the hundreds of decisions we have to make every day. To cope with this complexity. many employees at these firms may fear that their jobs are in jeopardy. For analytical purpose. you find a single route and you use it regularly. When Boeing announces its laying off 10. we’ve categorized them by individual and organizational sources.000 people or Ford introduces new robotic equipment. or deferred. Fear of the Unknown: Change substitute ambiguity and uncertainty for the known. finding a new parking place. or programmed responses. a change is proposed and employees quickly respond by voicing complaints. Economic Factors: Another source of individual resistance is concern that changes will lower one’s income. the selection process systematically selects certain people in and certain people out. this tendency to respond in our accustomed ways becomes a source of resistance. The same applies to employee. it means you’re likely to have to change many habits: waking up 10 minutes earlier. when you go to work or school. developing a new lunchtime routine. implicit. develop a negative attitude towards quality management or behave dysfunctionally if required to use statistical techniques. we all rely on habits. If for example. Let’s look at the sources of resistance.4 Cause for Resistance to Change Resistance to change doesn’t necessarily surface in standardized ways. Organizational resistance Structural Inertia: Organizations have built-in mechanisms to produce stability. So when your department is moved to a new office building across town. Habit Every day. especially when pay is closely tied to productivity. the introduction of a quality management program requires that production workers learn statistical process control techniques. And people in general don’t like the unknown. As human beings. Life is complex enough. do you continually use the same route and streets? Probably if you’re like most people. threatening to go on strike.10.

For example. You can’t change one without affecting the others. Will the change. Threat to Established Resource Allocations: the groups in the organization that control sizable resources often see change as a threat. may be willing to accept changes in his job suggested by management. People from one functional department are placed on terms with people from other functional areas. Introduction of participative decision making or self-managed work teams are examples of changes that often are seen as threats to the power of supervisors and middle managers. accountants work with marketers. Threat to Expertise: Changes in organizational patterns may threaten the expertise of specialized groups. and benefits administration – has been resisted by many human resource departments. 10. he’s likely to resist. But if union norms dictate resisting any unilateral change made by management. For example. Limited Focus of Change: Organization is made up of interdependent subsystems. The recent move by some companies to outsource many of their human resource activities – such as training. That is. rules and procedures for employees to follow. So limited changes in subsystems tend to get nullified by the larger system. development of pay plans. group norms may act as a constraint. . The only constant in organizational life today appears to be the presence of continuous change. the change in technology is not likely to be accepted. Group Inertia: Even if individuals want to change their behavior. An individual union member. Thereat to Established Power Relationships: Any redistribution of decision-making authority can threaten long-established power relationship within the organization. They tend to be content with the way things are. These teams are comprised of people from various areas within the company. for instance. One area of organizations that continues its metamorphosis is the design itself. if management changes the technological processes without simultaneously modifying the organization’s structure to match. Changing Skill Sets More organizations are utilizing cross functional teams. the way in which companies are configured today is changing.and other socialization techniques reinforce specific role requirements and skills. mean a reduction in their budgets or a cut in their staff size? Those who most benefit from the current allocation of resources are often threatened by change that may affect future allocations. human resource people with engineers and finance individuals with operations employees. for instance.5 Impact of Change on Future Manager Organizations are changing nearly daily. Formalization provides job description. Why? Because this outsourcing is a threat to the specialized skills held by people in HR departments.

” Problem of overcoming resistance to change can be handled at two levels. Decision making is becoming more and more comfortable for those throughout the organization as the need to make decisions is distributed more evenly across all organizational levels. even the impact of change may be dysfunctional if change is imposed upon the people by the use of formal authority. typically by way of computer network links. the problems can be solved at the same level. However. As organizations must be better equipped to respond to change in their external environment. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups.The ultimate goal is to improve organizational performance by cutting production time or time to market. Stephen Robbins suggests that “…… managers in virtual structures spend most of their time coordinating and controlling external relations. through group dynamics. rather should be looked upon as a dialogue which continues over a period of time. For this purpose. 10. the role of formal authority in implementing a change may not be effective all the times. It may affect only a few while others may not be affected. strategic directions for the company must be identified in light of these changes. both at the formal and informal levels. It implies explanation and . In many cases. This requires that managers think differently and teach employees to think differently.” The newer organizational structures use term problem solving. the effect of the change may not be as functional as envisaged by the management. Efforts at Individual Level A change is likely to affect some people in some way. Therefore. More fluid structures require that managers improve their strategic orientation. that is. it can make effectively by managing resistance effectively. For example. Locavini observes that “the secret of real success is effective management of the emotional vulnerability that accompanies organizational change. They need to be adept at reading the trends in the environment and then determining what they mean specifically for their own organization. Problem solving now involves the people who are experts in the issue – not necessarily those in high positions in the organization. When the resistance comes from the people at individual levels. managers must be more skilled at reading the environment and grasping the big picture. Involvement: Involvement is a process through which those who are affected by the change are brought to understand the change. Unless this problem is overcome properly. the following efforts can be taken: 1.6 Methods of Reducing Resistance to Change One of the basic problems in managing change is to overcome people’s resistance to change successfully. at the level of individual and at the level of group. this is not a one-time action. In addition.

3. instead of solving the problem at the individual level. is an important trust-building task. its basic nature. Group dynamics offers some basic help in this regard. getting a man to commit himself in private to change programme may yield fewer results than if he voluntarily and publicly gives his commitment to an idea of change. However. but a transformational leader can use personal reasons for change without arousing resistance. Leadership: The role of leadership in getting acceptance for a change is very important as a capable leader reinforces a climate of psychological support for change. to become effective. as discussed earlier. Such educational process can be aided by training classes. A manager as weak leader presents change on the basis of the impersonal requirements of the situation. he expresses it through a group. 4. Commitment to take part in the change programme can be obtained in private from each individual. Thus. As this process goes. must be understood so that its effective use can be made. and conferences. Usually. more than one person is involved in the change. the manager can form strategies for overcoming resistance in the following manner: . The decision to commit oneself is a dynamic process. either the subordinates do not resist or if they resist. understanding of change increases and personal involvement in the change increases. 2. so that they are looked at and evaluated. It includes finding out from the members how they interpret the proposed changes and what they think about them. The fundamental idea in this process is to encourage the person to say something about any aspect of the change. Getting opinions out in the open. For using group as a means of overcoming resistance to change. Though each person interprets the change individually often. the leader tries to overcome this resistance by leadership process. Training and Psychological Counseling: The management can change the basic values of the people by training and psychological counseling. Efforts at Group Level Although agreement to a change can be obtained individually. People always have some ideas and opinions about what is going on in the world and more specially if touches them personally. It grows slowly along with relationship. An effective leader tries to time a change to fit the psychological needs of his followers. Based on these characteristics of group as a means of change. most of the times. and indoctrinated in new relationships. education must be a part of the manager’s everyday activity on the job. This helps in creating receptive environment in the organization. Obtaining Commitment: Commitment is an agreement to take an active part in the actual mechanics of the change. They must be taught new skills. its process and working. However. sometimes. it is desirable at the group level to get better acceptability of change. People should be educated to become familiar with change. Thus. the level of resistance to change tends to decrease. it is more meaningful if it is done through group.then discussion of the proposed changes. meetings. helped to change attitudes.

Group Contact: Any effect to change is likely to succeed if the group accepts that change. For this purpose. and how members contribute. _________ is the alteration of work environment in an organization. The organization must regard the participation as meaningful and share the results of the change with its members. Free flow of information helps people to understand the real picture of the change and many misunderstandings may be avoided. and how the benefits of the meaningful and continuous dialogue are necessary. mere participation may not help. Participation: Participation helps to give people involved in the organizational change and inculcate a feeling of importance. The group contact offers some specific advantages: (i) Through groups. job design and people. The same is true of problem-solving. It implies a new equilibrium between different components of the organization – technology. there may be some person who may communicate to the same group. 3. one can communicate with more people per unit of time. 2. 3. (iii) Group can get at the basic problem very rapidly as compared to a single individual. Even if only some of the members are affected by the change. Through the group contact. This is more important in the case of workers who themselves treat a separate group and do not identify with the management. . Group Dynamics Training for Change: Group dynamics also helps in providing various training programmes for accepting and implementing change. The laboratory method provides a setting where group processes can be studied intensively. It purports how the results are. However. Such training techniques include role playing. thereby the people can build up the climate based on mutual trust and understanding which are essential for bringing organizational changes successfully. (ii) In group.such aspects as the reasons for change. __________ are based on people’s emotions. sentiments and attitudes towards change. many things about change can be made clear. psychodrama. _________ helps to give people involved in the organizational change and inculcate a feeling of importance.1. It makes people feel that the organization needs their opinions and ideas and is unwilling to go ahead without taking them into account. They must be made a party to the change rather than an agent for resistance to change. benefits of change. Such training techniques provide understanding of behaviour. Self Assessment Questions 1. It would be prudent for management to take labour representatives into confidence before implementing any change. Research studies also support this aspect. structural arrangement. 2. and sensitivity or T-group training. Those people who are directly affected by the change should be given opportunity to participate in that change before the final decisions are reached. taking whole of the group into confidence helps in maintaining a cooperative attitude. the group itself should be the point of contact.

or deferred.9 Answers to SAQs and TQS SAQs: 1. Refer section 10. group resistance and vested interests.7 Summary Change is inevitable. For instance. a change is proposed and employees quickly respond by voicing complaints. both at the formal and informal levels.4 3. Resistance can be overt. threatening to go on strike. Participation Answers to TQs: 1. Psychological factors 3. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. Refer section 10. Refer section 10. 10. Discuss the methods of reducing resistance to change. It is easiest for management to deal with resistance when it is overt and immediate. Changes may be influenced by external and internal factors. Problem of overcoming resistance to change can be handled at two levels. Reference: . Why do organizations resist change? 3. engaging in a work showdown.10. Organizational change 2. Economic factors. through group dynamics. or the like. at the level of individual and at the level of group. Organizational change is the alteration of work environment in an organization. People tend to resist many types of changes because new habits or sacrifices are required.2 2. that is. immediate.8 Terminal Questions 1. psychological factors. social factors. 10. It implies a new equilibrium between different components of the organization. implicit.6. Explain the nature of change? 2.

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