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

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

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

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

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

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

With a view to realize the predetermined goals-managers plan carefully. (iii) Establishers sound industrial relations: Management minimizes industrial disputes and contributes to sound industrial relations in an undertaking. a profession possesses the following characteristics: i) A body of principles. competition. (vi) Improves standard of living : Management improves the standard of living of people by (a) using scarce resources efficiently and turning out profits. An enterprise has to take note of these changes and adapt itself quickly. procedures and reward systems. iii) The establishment of a representative organization with professiona-lizing as its goal.. (b) Ensuring the survival of the firm in the face of continued changes.motivates employees to work harder and better by providing necessary guidance. In the final analysis. Objective can be achieved only when the human and non-human resources are combined in a proper way. often threaten the survival of a firm. According to McFarland. Management is goal-oriented. etc. (iv) Achievement of goals: Management plays an important role in the achievement of objectives of an organization. They try to put everything on the right tract. skills. Management as a profession By a professional manager. and specialized knowledge. (v) Change and growth: Changes in technology. forecasting combined with efficient use of resources) and taking appropriate steps. ii) Formalized methods of acquiring training and experience. Thus unnecessary deviations. (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. methods. Industrial peace is an essential requirement for increasing productivity. Failure to take note of customer’s needs regarding full efficiently has spelt doom for ‘Ideal java’ in the two-wheeler market in India. To this end. hire competent people and provide necessary guidance. techniques. government policy. all these help in realizing goals with maximum efficiency. Organize the resources properly. Managers help an organization by anticipating these changes (carefull planning. manager tries to strike a happy balance between the demands of employees and organizational requirements. 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. counseling and effective leadership. Successful managers are the ones who anticipate and adjust to changing circumstances rather than being passively swept along or caught unprepared. Overlapping efforts and waste motions are avoided.

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

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

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

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

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

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

Self Assessment Questions in the 1. 2. Human skills are important at all managerial levels. Five M’s of management (________. teamwork . Money. motivating and controlling the efforts of others towards a specific objective. Still management is not completely a profession. 3. ___________. _________.government offices. 1. __________is principally the task of planning.9 Terminal Questions 1. machinery and methods or ways of doing things) depends to a great extent on the quality of management. 2. Bring out the difference between Administration and Management. There are three levels of management-top. Lower level managers require and use a greater degree of technical skill and managers at higher levels use a greater degree of conceptual skill. co-ordinating. public organisations sector and non-business private sector. Management 2. 3. Management creates ________ and motivates employees to work harder and better by providing necessary guidance. Discuss the importance of management. It is the management which transforms physical resources of an organization into productive resources. 1.8 Summary Management is concerned with getting things done through other people.10 Answers to SAQs and TQs SAQs: 1. Explain its characteristics. materials. middle and lower. Define management. 1. Managers perform different roles to discharge their responsibilities. counseling and effective leadership. manpower 3. Management is largely found at the middle and lower levels and administration is found at the higher levels. organisations.

Refer section 1.1 Introduction Objectives 2. Refer section 1. Refer section 1.3 Planning 2.10 Answers to SAQs and TQs .Answers to TQs: 1.7 Motivating Self Assessment Questions 2.2 Process of Management 2.3 2. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.5 Staffing 2.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .1.8 Summary 2.2.5 3.9 Terminal Questions 2.4 Organizing 2.6 Directing 2.

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

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

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

Set goals and objectives Strategic goals and objectives are developed to fill the gap between current capability and the mission. and operational planning . It also helps in setting minimum acceptable standards or common-sense minimums. the best strategy is one that fits the organization’s strengths to opportunities in the environment. In which areas does the competition meet customer needs more effectively? 2. The SWOT analysis is used as a baseline for future improvement. Is there a possibility of growth of existing market?) Identifying threats involves the following: 1. return on investment. etc. Are our rivals weak? 5. Benchmarking systematically compares performance measures such as efficiency.3. Strategic. operational plans are based on the organization’s tactical plans. Are there new competitors? 3. tactical. earnings per share. Objectives are also called performance goals. Is there a shortage of resources? 4. effectiveness. Develop related strategies (tactical and operational) Tactical plans are based on the organization’s strategic plan. as well as gap analysis. What are the new regulations? 6. What is the strength of the economy? 4. In turn. What substitute products exist? In general terms. They are aligned with the mission and form the basis for the action plans of an organization. Comparing the organization to external benchmarks (the best practices) is used to assess current capabilities. What are the emerging technologies? 6. These are specific plans that are needed for each task or supportive activity comprising the whole. Are market tastes changing? 5. organizations have longterm objectives for factors such as. Generally. or outcomes of an organization against similar measures from other internal or external organizations.

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

It is not the machines. recruitment. Definition: 1. selection. selection. Managers of the concerned departments are responsible for the selection and development of qualified people for their department and maintain them in their department. growth and development of all those members of the organization whose function is to get things done through the efforts of other individuals”. It has many sub-functions: Staffing involves determination of the manpower requirement. O’Donnell & Weihrich have defined staffing as “filling positions in the organization structure through identifying work force requirements. Koontz. development. Staffing refers to the managerial function of determining and improving the manpower requirements of an enterprise. materials. 3. Theo Haimann – “Concerned with the placement. 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. 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. 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. appraisal. recruitment. 4. 3. promotion. . placement. inventorying the people available. compensation and training of needed people”. It involves many sub-functions such as manpower planning. Deals with people: Staffing is a separate managerial function which deals with people in the organization. Therefore it is the responsibility of the management to secure and maintain competent and dedicated workforce including managers and operatives. Pervasiveness of Staffing: Effective execution of staffing function is the responsibility of all managers in the organization. performance appraisal etc. 2. money. transfer and appraisal of personnel to fill the organizational positions. This task has been referred to as staffing. placement. 2. training.

2. 3.e. 7. etc. motivate them. Personnel policies and programs must be formulated as guides to perform the staffing function effectively. vacancies arise out of retirement. training development and maintenance of personnel.5. It is a continuing function. 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”. selection. lead them and guide them on a continuous basis. 8. It is an important managerial function. overseeing and leading people. 2. Characteristics of Direction The characteristic features of direction are as follow: 1.6 Directing Direction is one of the functions of management. identifying the manpower requirements. It is instructing people as to what to do. It is a continuous function: With the growth and expansion of business additional manpower is needed. A manger needs to give orders to his subordinates. how to do and telling them to do to the best of their ability. It deals with future requirements: Staffing deals with current and future personnel requirements. recruitment. resignation. management initiates actions in the organization. It is a process: it is a process having a logical sequence i. . induction. 6. Through direction. promotion. Direction is an important managerial function. Present positions must be filled keeping in mind the future requirements. Definition According to Koontz and O’Donnel. Direction is continuous process and it continues throughout the life-time of the organization. Thus staffing deals with the future requirements also. Direction is the managerial function of guiding. Direction function is performed at every level of management. Thus staffing is an ongoing process through – out the life of an organization. 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.

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

and friendship · Esteem: Includes internal esteem factors. achieving one’s potential. whereas. Workers need to be closely supervised and a comprehensive system of controls and a hierarchical structure is needed to supervise the workers closely. such as.· Safety: Includes security and protection from physical and emotional harm · Social: Includes affection. Physiological and safety needs are described as lower-order. anxious to accept greater responsibility. and external esteem factors. includes growth. It is believed that employees enjoy their mental and physical work duties. 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. and exercise self-control. Theory Y assumes that higher-order needs dominate individuals. esteem. self-motivated. self-respect. Theory Y – In this theory management assumes employees may be ambitious. 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. externally. belongingness. self-direction. autonomy and empowerment. Lower-order needs are predominantly satisfied. if given the chance employees have the desire to be creative and forward thinking in the workplace. and achievement. From the above. Herzberg’s Two Factor Theory . autonomy. such as. Theory X – In this theory management assumes employees are inherently lazy and will avoid work. and attention · Self-actualization: The drive to become what one is capable of becoming. it is clear that Theory X assumes that lower-order needs dominate individuals. Higher-order needs are satisfied internally. acceptance. recognition. status. Social. and self-actualization are classified as higherorder needs. if they can. It is also assumed that workers generally place security above all other factors and will display little ambition. It is also believed that. and self-fulfillment Maslow separated the five needs into higher and lower orders.

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

Reference 2.6 Copyright © 2009 SMU Powered by Sikkim Manipal University .5 3. Staffing Answers to TQs: 1.2. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3. Reference 2. Reference 2. 2. SWOT 3. Follett 2.10 Answers to SAQs and TQs SAQs: 1.1 Introduction Objectives . What is planning? 2.9 Terminal Questions 1.3 2. Explain Staffing in detail 3. Write a short not on directing.

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.

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

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

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

9. Attempting to create “win-win” solutions is standard practice in OD programs. 4. OD focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. so that change is easily observed. temporary. rather than focusing attention on individuals. Participation and involvement in problem-solving and decision-making by all levels of the organization are hallmarks of OD. 5. Planned Change: OD is a strategy of planned change for organizational improvement. they are ongoing. Rather. interactive.3 Characteristics of OD 1. 4. The concept of comprehensive change is based on the systems concept-open. so the methods of attaining these goals should also change. Comprehensive Change: OD efforts focus on comprehensive change in the organization. or isolated problems. Thus. 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. 3. 7. 8. OD views organization improvement as an ongoing process in the context of a constantly changing environment. 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. Long-range Change: OD efforts are not meant for solving short-term. It recognizes that organizational goals change. OD focuses on the elevation of an organization to a higher level of functioning by improving the performance and satisfaction. and cyclic processes. This ‘planned’ emphasis separates OD efforts from other kinds of more haphazard changes that are frequently undertaken by organizations. OD takes a developmental view that seeks the betterment of both individuals and the organization. OD focuses on total system change and views organizations as complex social systems. OD practitioners are facilitators. 10.3. OD relies on an action research model with extensive participation by client system members. 2. Teams of all kinds are particularly important for accomplishing tasks and are targets for OD activities. and co-learners with the client system. 6. . dynamic and adaptive system. collaborators. OD efforts are not one-shot actions. rather. 3. 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.

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

3. and (d) The interventions are based on behavioural science theory and technology. We need to examine carefully the techniques of Organization Development. This Organization Development progrmmes. (j) To improve effectiveness of the organization. like other normative re-educative programmes.(c) The interventions are directed towards problem-solving and improved functioning for the client system.6 OD and Management Development . 3. (i) To increase self-control and self-direction for people within the organization. problem solving climate throughout an organization. (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. (b) To supplement the authority associated with role or status. 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. (g) To increase the sense of ‘ownership’ or organization’s objectives throughout the work force. (f) To develop a reward system which recognizes both the achievement of the organization’s goals (profit or service) and development of people. 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. (d) To build trust among persons and groups throughout an organization. (e) To make competition more relevant to work goals and to maximize collaborative efforts. (c) To locate decision making and problem-solving responsibilities as close to sources of information as possible. with the authority of knowledge and competence.

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

substantial disenchantment with OD became evident because of many controversial OD techniques like sensitivity training. Specialist No special requirement.8 Problems in Organization Development Organization development. Long-range strategy for organizational innovation and renewal.7 Role of Organization Development Organization development. 3. Trained specialists required. 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. 4. To increase the level of self and group responsibility in planning and its implementation. however. etc. 6. To increase the openness of communications in all directions-vertically. 7. however. To place emphasis on humanistic values and goals consistent with these vales. 5. Since OD attempts to bring comprehensive change in the organization. 2. To increase the level of enthusiasms and personal satisfaction at all levels of the organization. 3. 3. horizontally. To treat each human being as a complex person with a complex set of needs important in his work and his life. Problem-solving approach. Research studies have also failed to conclude . By 70s. OD can be utilized for the following results in the organization: 1. Thus. To increase the level of trust and mutual emotional support among all organization members. it is quite suitable for improving organizational performance on long-term basis. In early 60s. OD became quite successful with many professional consultants offering high services and programmes to various organizations.Approach Time Educative and training Short-range. has invited sharp criticism as a strategy to increase organizational viability and effectiveness because many OD programmes have failed. confrontation techniques. plays key role in organizational improvement. To create an environment in which authority of assigned role is augmented by authority based on knowledge and skills. and laterally. as a long-term strategy for organizational change. Much of the enthusiasm created at the beginning of OD programmes vanished over the period of time.

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

problem-focused ‘nature of OD’ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. collaborative.10 Terminal Questions 1. ––––––––– is a process which includes leadership behaviours and human resource practices. OD is the ultimate remedy for organizational improvements and developments. Explain the various characteristics of OD. But OD aims at changing the entire organizational climate where the managers work. There is no ‘quick fix’ to organizations’ problems. Management development aims at developing the managers individually. 4. Organization development should be led and supported by –––––––. ––––––– is associated with “Liberation Management”. 2. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. Top management 2. 4. Empowerment .Self Assessment Questions 1. 3. Tom Peters 3. OD focuses on culture and processes.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. State the various roles of OD. 3.11 Answers to SAQs and TQs SAQs: 1. 3. Who is associated with the “Learning Organizations”? 5. 2. 3. Explain its salient features. The participative. 5. What are the problems involved in the implementation of OD? 3. Distinguish between ‘organizational development’ and ‘management development’. Define OD. _____________is a short-term strategy.

5 Leadership Development 4.4. Refer section 3.4 Grid Training 4.2 Survey Feedback 4. Peter Senge 5.3 Process Consultation 4. MU0002-Unit-04.7 5.6 Team-building .8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 3. Refer section 3.2 2. Refer section 3.Organization Development – Interventions Unit-04. Refer section 3.3 3.1 Introduction Objectives 4.Organization Development – Interventions Structure: 4. Management development Answers to TQs: 1.6 4.

team-building.8 Change Agents 4.” There are various OD interventions and they are classified in different ways. the classification of OD interventions shows variation. group level.12 Answers to SAQs and TQs 4. For example. mediation and negotiation activities. Nevertheless. 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.7 Inter Group Development 4. and organizational culture. interventions may be required to change people at all these levels. they make things happen. interpersonal level.4. Interventions constitute the action thrust of organization development. Therefore. 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. techno-structural activities. People’s behaviour may be relevant to understand at individual level. process consultation. 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. many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others. education and training. Thus. various consultants and practitioners have different opinions about the activities which can be included in interventions. 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.11 Terminal Questions 4. management grid. French and Bell have suggested twelve families of OD interventions: diagnostic. and organizational level. the classification appears to be more relevant because it may specify the .10 Summary 4. inter-group level. However. work group. survey feedback. inter-group activities.9 Role of Change Agents Self Assessment Questions 4.1 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. Further.

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

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

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

One basic reason for this phenomenon may be the consultant’s inability to steer the organization out of troubles. like other OD intervention techniques. the consultant disengages from the client organization by mutual agreement but leaves the door open for future involvement. 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.C is completed. groups. In the review of various P. feedback.C is also not free from criticisms. The grid organization development consists of six phases. the consultant intervenes in the organizational processes by using different interventions like agenda-setting. 4.5. It is a comprehensive and systematic OD programme which aims at individuals. Evaluation of Process Consultation: Process consultation is quite in-depth activity of OD in which the consultant plays a major role.C is very effective intervention for organizational improvement. group. he assists the organizational members to incorporate those changes.4 Grid Training Grid training is basically based on grid organization development developed by Blake and Mouton. and/or structural change. However. and total organizational levels. coaching. P. and the organization as a whole. P. The whole orientation is to develop managerial style through the application of behavioural science knowledge. knowledge. To study the organization as an interactive system and apply techniques of analysis in diagnosing its problems. Intervene: At this stage. To evaluate the styles of leadership and techniques of participation to produce desirable results. and processes necessary for effectiveness at the individual. both these problems may be overcome by engaging a suitable consultant and developing willingness among the members for change. Though he is involved only in suggesting the various changes in the processes. However.C programmes. focuses on skills. Reduce Involvement and Terminate: When the work of P. From this point of view. To understand the importance and rationale of systematic change. significant correlation between the outcomes has not been found. Its specific objectives are as follows: 1. 3. inter-group. Process of Grid Training The basic content of grid organization development is managerial grid as discussed. . It utilizes a considerable number of instruments. 2. 6. enabling individuals and groups to assess their own strengths and weaknesses.

The action is designed to identify the characteristics of the ideal organization. the various efforts from phase 1 to phase 5 are evaluated and critical analysis is made. The members of the organization are trained for achieving this excellence. the focus is on inter-group behaviour and relations. Inter-group Development: At this phase. communication skills. 4.” In a later work. 2. Though research studies on the application of grid training are not many. Teamwork Development: The focus in this stage is to develop teamwork by analyzing team culture. Each group may be given assignment to evolve strategy for making ideal organization with the help of the consultant. 5. and alike. it appears that this type of educational strategy can help to make significant contributions to organizational effectiveness. grid training has some positive contributions for organizational effectiveness. Each group separately analyses the ideal inter-group relations. Grid training programme is criticized on the basis that it lacks contingency approach and. Furthermore. problem-solving. The analysis will bring out the shortcomings that may be there. Evaluation of Grid Training Most of the support of grid training has come from its originators-Blake and Mouton. They have maintained that “managerial and team effectiveness can be taught to managers with outside assistance. it discounts reality. 6. Action steps to move towards the ideal are developed and assigned to individuals who may be engaged in building co-operative inter-group relationships. and problemsolving are also developed. The thrust is on moving groups from conflict to co-operation. Developing Ideal Strategic Corporate Model: At this stage. The strategy is then implemented. 3.5 Leadership Development . traditions.1. The skills relating to planning. some of them have not supported the claims made by Blake and Mouton. grid training is a non-rigorous method. and teamwork. Systematic Critique: In this stage. 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. they maintained the same stand. objective-setting. the focus shifts to the total organization and to develop skills necessary for organizational excellence. in spite of these criticisms. Further. In this light. Managerial grid: It covers various aspects of assessing managerial styles. therefore. the various programmes may be redesigned. The individuals try to learn to become managers by practice. 4.

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

They share personal information. interaction among team members is often cautious especially when they are new to one another. 4. and begin to turn their attention to the group tasks. 4. they learn to handle complex problems that come before the team. Functional roles are performed and exchanged as needed. and tasks are accompanied efficiently. they often pass through several stages as they learn to work together as a team. The . Sooner or later. At this stage. Life Cycle of a Team When a number of individuals begin to work at interdependent jobs. group norms emerge to guide individual behaviour which form the basis for co-operative feelings and behaviour among members. and arguing for appropriate strategies to be adopted for achieving team’s goals. Performing: When team members interact among themselves on the basis of norms that have emerged in the team. norming. storming. These typical stages of life cycle of a team are described below: 1. and adjourning as shown below: Fig. These stages are: forming. team members start settling. and features of effective team so that team-building exercises focus more sharply on developing effective team. start to accept others. they do represent a broad pattern that may be observed and predicted in many settings across team’s time together. 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. Norming: After storming stage. At this stage. jockeying for relative control. team members get introduced to each other if they have not interacted earlier. members start interaction among themselves in the form of competing for status. different members may experience varying degree of tension and anxiety out of this interaction pattern. Adjourning: Adjourning is the end phase of cycle of a team.team-work. because of individual differences. even the most successful teams as they have completed their mission. The team begins to move in a co-operative fashion and a tentative balance among competing forces too is struck. Storming: After the forming stage which is mostly related to perceiving and assessing each other. 5.1: Life Cycle of a Team Though these are not followed rigidly. each team has to be adjourned. Forming: At the first stage of the life cycle. performing. 3. 2.

and so on. . committee. A simple phenomenon of social loafing may be observed in a group assignment to students during their study. 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. 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. In such an assignment. 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. In fact. students find that one or two students do not put their weight for the completion of the project. concept of stages is significant in the context of the nature of problem which team members are likely to face in team-work. etc. 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. This phenomenon may happen in teams in work organizations too. This effect can be described as 2+2=5 effect. in one experiment. that is. They rely on the fact the more reliable members will complete the project without their help. To the extent. However. 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. other factors remaining the same. a team is created to undertake a task which requires a variety of skills and single individual cannot perform that task alone.adjournment phase takes place in the case of those teams which are created for some special purposes like task force. 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. intense social relationship among members comes to an end. After the adjournment of the team. For example.” Thus. 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. Putting the concept of synergy in teamwork means members of the team are complementary to each other and they contribute positively to one another. how a particular element affects another and is affected by it. synergistic effect is not automatic but depends on the complementarity of different elements that are put together and the way they interact among themselves. team-work does not necessarily spurt group efforts. the team would be effective. the complementarity among members is achieved.

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

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

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

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

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. Survey feedback usually proceeds with sequential activities involving data collection.Training is required for enhancing knowledge. feedback of information. What is survey feedback as an intervention of OD? How does it provide base for other OD interventions? .11 Terminal Questions 1. What is Grid Training? How does it help in improving individual performance in an organization? 2. generation of new behavioral science knowledge. 2.10 Summary OD intervention strategies are various activities which a consultant and client organization performs for improving organizational performance. attitudes and beliefs. diagnosis. team-work does not necessarily spurt group efforts 4. Teambuilding is most important. Useful hypothesis are to be formulated and tested. group. skills and change in behavior. developing action plans based on feedback and follow-up. Grid training focuses on individuals and groups to assess their own strengths and weaknesses. Training is used both in ‘content orientation’ and process orientation’. The first step in survey feedback is ______ usually by a consultant based on a structured questionnaire. It focuses on skills. Grid Training was developed by –––––––––––– 3. In process consultation. Self Assessment Questions 1. knowledge and processes necessary for effectiveness at the individual. inter-group and total organization levels. ________is antithesis of synergy in team-work which suggests that people working together on a common task may actually decrease their individual efforts. 4. Data collection. Sensitivity training focuses on small group ranging from ten to twelve. widely accepted and applied OD intervention for organizational improvement. 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. 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.

8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 4.1 Introduction Objectives 5.2 Definitions and .12 Answers to SAQs and TQs SAQs: 1. Blake and Mouton.6 4. What is team-building? What are the stages of life cycle of a team? 4. Assumptions.3. Data collection 2. Beliefs in Organization Development Unit-05-Values. Assumptions. Explain Change agents and discuss the role of change agents in detail. and Beliefs in Organization Development Structure: 5. Refer section 4. Social loafing Answers to TQs: 1. 3.2 3. 4. Refer section 4. MU0002-Unit-05-Values.4 2. Refer section 4.

5 Implications of OD Values and Assumptions 5.3 Implications for Designing and Running Organizations 5. shaping the goals and methods of the field and distinguishing OD from other improvement strategies. you will be able to: · Explain the meaning of values.1 Introduction A set of values.7 Terminal Questions 5.5.3 Chronology of Events in Management and Organization Thought 5. and beliefs constitutes an integral part of organization development. it is a cognitive fact for the person. .5. and they continue to evolve as the field itself evolves.8 Answers to SAQs and TQs 5.1 Implications for Dealing with Individuals 5.2 Definitions A belief is a proposition about how the world works that the individual accepts as true.2 Implications for Dealing with Groups 5. · State the implications of OD values and assumptions.6 Summary Self Assessment Questions 5. Objectives: After studying this unit. · List the chronology of events of values. beliefs and assumptions. assumptions.5. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers.5. 5.4 Early Statements of OD Values and Assumptions 5. · Give the statement of OD values and assumptions. beliefs and assumptions. Most of these beliefs were formulated early in the development of the field.

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

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

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

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

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

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

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

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

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

4. _______________ gave theory X and theory Y. Taylor 3.8 Answers to SAQs and TQs SAQs: 1.2 2. Refer section 5. Hawthorne experiments 5.3 . 2. 5. Douglas McGregor Answers to TQs: 1. The concept of –––––––––– was introduced by MaxWeber. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. 5. 2. Values. W.3 3. The outcome of –––––––– was that people were not cogs and organizations were not machines. __________ is associated with scientific management. values. Refer section 5. Bureaucracy 4. beliefs and assumptions. and assumptions are all –––––––––– facts. beliefs. 3.7 Terminal Questions 1. Write a note about F.W. Refer section 5. 5. State the assumptions of Theory X and Theory Y. 3. Define concepts. F. Taylor’s principles of scientific management. Cognitive 2. What was the outcome of Hawthorne Experiments? 4.1.

3.3 Systems Theory 6.3 Copyright © 2009 SMU Powered by Sikkim Manipal University .1 Kurt Lewin and Friends 6.1 Introduction Objectives 6.4 Participation and Empowerment .3.3 Socio-technical Theory and Open Systems Planning 6.2.4.1 The Nature of Systems 6. Refer section 5.2 Models and Theories of Planned Change 6.2.2 Beyond the Quick Fix 6.3. Refer section 5.2.3.4 Porras and Robertson Model of Organizational Change 6.2.3 5.4 Open Systems Thinking 6.2 Congruence among System Elements 6.3 The Burke-Litwin Model of Organizational Change 6. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.

6 Parallel Learning Structures 6.5 Teams and Teamwork 6. Here we describe what we believe are the most important underpinnings for the field. · Explain the terms ‘participation’ and ‘empowerment’.11 Terminal Questions 6.9 Action Research Self Assessment Questions 6.10 Summary 6. We will examine the following concepts: . you will be able to: · Explain various models and theories of planned change. · Explain normative-re-educative strategy of changing The knowledge base of OD is extensive and is constantly growing. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning. · Realize the importance of teams and teamwork.7 A Normative – Re-educative Strategy of Changing 6. In this discussion.12 Answers to SAQs and TQs 6. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs. Objectives: After studying this unit. · Describe the parallel learning structures.6. art and science which form the knowledge base upon which OD is constructed.1 Introduction This unit describes the foundations of organization development theory and practice.8 Applied Behavioural Science 6. · Explain systems theory.

6. describe those features as variables. Although morale may get a little better or a little worse on occasion. He suggested that change is a three-stage process: . Several recent theories show great promise for increasing our understanding of what happens and how it happens in planned change. but pretty good for identifying the important variables involved. we can think of the production level of a manufacturing plant as a resultant equilibrium point in a field of forces. with some forces pushing toward higher levels of production and some forces pushing toward lower levels of production.1 Kurt Lewin and Friends Kurt Lewin introduced two ideas about change that have been influential since the 1940s. we can think of the level of morale in that plant as a resultant equilibrium point. The development of models of planned change facilitated the development of OD. Planned change theories are rudimentary as far as explaining relationships among variables. Likewise. Models and theories depict.2. This concept is useful for thinking about the dynamics of change situations. With a technique called the force-field analysis. in words or pictures. The production level tends to remain fairly constant because the field of forces remains fairly constant. That is. and specify the relationships among the variables. some forces pushing toward higher morale and some pushing toward lower morale. 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. it generally hovers around some equilibrium point that is the resultant in a field of forces. Here we provide a framework for thinking about planned change by exploring several models from the literature. Lewin’s second idea was a model of the change process itself.2 Models and Theories of Planned Change Organization development is planned change in an organizational context.· 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. the important features of some phenomenon. The first idea states that what is occurring at any point in time is a resultant in a field of opposing forces. the status quo-whatever is happening right now-is the result of forces pushing in opposing directions. For example.

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

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

Scheduling and implementing the "tracks" involve intervening in five critical leverage points. These problems and opportunities will be the targets of later interventions. Diagnosing the problems requires a thorough analysis of the problems and opportunities facing the organization. 4) Implementing the "tracks" 5) Evaluating the results. 3) Scheduling the "tracks". cause the organization to be successful. Kilmann’s five tracks are: 1) The culture track. 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. 2) The management skills track. 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. called "tracks.2) Diagnosing the problems. 3) The team-building track. communication. critique practices and procedures. The management-skills track provides all management personnel with new ways of coping with complex problems and hidden assumptions. information sharing. problem-solving sessions. and 5) The reward system track. Kilmann describes the five tracks: What does each track do for the organization? The culture track enhances trust. Interventions include training programs. when functioning properly. and so forth. 4) The strategy-structure track. ." that. Initiating the program entails securing commitment from top management.

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

and systems cause changes in work unit climate. management practices. Transactional leadership is sufficient for causing first-order change. interventions directed toward mission and strategy. The model also makes a distinction between transactional and transformational leadership styles. 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. leadership." Transformational leadership embodies inspiration which leads to new heights of performance. 6. and organization culture result in second-order change.1: The Transactional Factors Involved in First – Order Change . individual and organizational performance. Transactional leadership is required to make this change in organizational climate. 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. Changing structure. We will do so in several steps. Following figure shows the factors involved in first-order (transactional) change." Transactional leadership embodies a fair exchange between leader and follower that leads to "normal" performance.systems (policies and procedures) result in first-order change. in turn. Transformational leadership is required for causing second-order change. Fig. which change motivation and. Now let us look at the Burke-Litwin model. Transactional leaders are "leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements.

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

Interventions that focus on culture. 6. Organizational change occurs only when individuals change their behaviour.Fig. Interventions that focus on job design and work flow design will affect technology. Fig.4: Organizational Work-Setting Factors This model is extremely useful for OD practitioners and organizational leaders.3: The Burke Litwin Model of Organizational Performance and Change 6. and technology. and these behaviour changes occur when elements of the work setting have been modified by OD interventions. social factors. management style. For example. This model shows how OD interventions can be linked to factors in the work setting. physical setting. 6. The basic premise is that OD interventions alter features of the work setting causing changes in individuals’ behaviours. it is described in a discussion by Porras and Peter Robertson. The premise modeled here is that work setting factors influence organizational members’ cognitions (they learn what is expected. strategies. according to Porras and Robertson. and rewards will affect organizing arrangements.4 Porras and Robertson Model of Organizational Change Jerry Porras and his associates developed a model of how organization development works. . which influence on-the job behaviours. The work setting plays a central role in this model and consists of four factors: organizing arrangements. rewarded). which determine organizational performance and individual development. It is how OD works. which in turn lead to individual and organizational improvements. and interaction processes will affect social factors.2. Following figure shows the work setting in the larger organizational framework. required. OD interventions that focus on goals. 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 Katz and Kahn were the first to apply open systems theory to organizations in 1966. and interrelatedness among elements in a set that constitutes an identifiable whole or gestalt. The words ‘arrangement’ and ‘interrelated’ describe interdependent elements forming an entity. Fagen defines system as "a set of objects together with relationships between the objects and between their attributes.5: A Change-based Organizational Framework 6. Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950. ." Hanna says: "A system is an arrangement of interrelated parts. system denotes interdependency.system. describes the characteristics of systems. This section explains systems theory.Fig. or subsystems. which views organizations as open systems in active exchange with their environment. components." To summarize. Thus. unitary whole composed of two or more interdependent parts.3 Systems Theory A second foundation of organization development is systems theory. that is the system. and shows how systems theory enhances the practice of OD. one begins by identifying the individual parts and then seeks to understand the nature of their collective interaction." Kast and Rosenzweig define system as "an organized. and delineated by identifiable boundaries from its environmental supra. interconnectedness. Systems theory is one of the most powerful conceptual tools available for understanding the dynamics of organizations and organizational change. 6. when taking a systems approach." Von Bertalanffy refers to a system as a set of "elements standing in interaction.

Every system is delineated by a boundary. or transformation processes that change the inputs.6. and energy between system and environment. What is inside the boundary is the system. A good rule of thumb for drawing the boundary is that more energy exchange occurs within the boundary than across the boundary. Organizations achieve negative entropy when they are able to exchange their outputs for enough inputs to keep the system from running down. we examine the characteristics of open systems drawing OD expositions by Katz and Kahn and Hanna. Boundaries of open systems are permeable. dynamics. These purposes must align with purposes or needs in the environment. Therefore. Fig. the organization will cease to exist. raw material and so on. and if the environment does not want these outputs. For example. studying open systems leads to a good understanding of organizations. and what is outside the boundary is the environment. Here. and they export products to the environment in the form of outputs. They do something to the inputs via throughput. the organization’s purposes will be reflected in its outputs. . Each of these three system processes must work well if the system is to be effective and survive. money. resources. Open systems have purposes and goals. Organizations are open systems. and characteristics of open systems are well-known. people. Systems take inputs from the environment in the form of energy. the reasons for their existence.3.6: 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. All open systems are input-throughput-output mechanisms.1 The Nature of Systems The nature. conversion. information. 6. in that they permit exchange of information.

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

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

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

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

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

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

Union Pacific Railroad. 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. and individuals are trained as group leaders and group facilitators. He uses examples from EDS (Electronic Data Systems). Larson and LaFasto studied a number of high-performance teams. Teams periodically hold team-building meetings. Larson and LaFasto found eight characteristics always present: 1) A clear. 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.parallel learning structures. and set ever-higher goals. 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. The net effect is that teams perform at increasingly higher levels. heart transplant surgical teams. All these characteristics are required for superior team performance. When any one feature is lost. help each other. people are trained in group dynamics and group problem-solving skills. Asea Brown Boveri. autonomous. and that teamwork becomes more satisfying for team members. High-performance teams regulate the behaviour of team members. including collegiate football national champions. Investigators are discovering why some teams are successful while others are not. Team-building activities are now a way of life for many organizations. Tom Peters asserts in Liberation Management that cross-functional. find innovative ways around barriers. . Grid OD and techniques such as role analysis technique. team performance declines. cross-functional teams. and others. role negotiation technique. the crew of the USS Kitty Hawk. and the like. empowered teams are what the best organizations are using right now to outdistance the competition. temporary teams. These interventions apply to formal work teams as well as startup teams. and responsibility charting. to determine the characteristics that make them successful. that they achieve synergy. socio-technical systems programs.

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

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

on the basis of which he or she prescribes a solution that. failure negating it and thus requiring re-diagnosis. with their elaborations and implications constitute practice theory. re-establishes the equilibrium. by modifying a group norm or standards.” . for example. Greenwood states: “The diagnostic and treatment typologies are employed together.e. The principles of diagnosis and of treatment constitute the principles of practice. hopefully. OD is the application of behavioural science knowledge. This process is customarily referred to as diagnosis and treatment. and (2) "technology. applied science or practice. the major leverage point for change is at the group level. 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.8 Applied Behavioural Science This foundation of OD relates to the primary knowledge base of the field. i." Both diagnosis and treatment consist of observing a situation and. pressing problems. the treatment typology allows the practitioner to know what remedial efforts to apply to correct the problem. and skills in ongoing systems in collaboration with system members. practices. norms can best be changed by focusing on the group. Thus. success corroborating the diagnosis. not the individual. 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. On this point.. Although human behaviour in organizations is far from an exact science.” Norms help determine individual behaviour and a normative-re-educative strategy of changing pervades the practice of OD. The practitioner uses treatment as the empirical test of his diagnosis. placing it in a classification scheme or typology. The diagnostic typology allows the practitioner to know what category of situation he or she has examined. on the basis of selected variables." applied science. thereby solving the problem. The practitioner examines the problem situation. the object of which is knowledge for its own sake. Each type description of the diagnostic typology contains implications for a certain type of treatment. 6. OD emphasizes the latter. A conventional distinction is made between (1) "pure" or basic science. the object of which is knowledge to solve practical. OD practitioners know about these patterns through research and theory. or practice. Greenwood discusses the activities of the practitioner as follows: "The problem that confronts a practitioner is customarily a state of disequilibrium that requires rectification. lawful patterns of events produce effectiveness and ineffectiveness.Because norms are socially accepted beliefs held by groups about appropriate and inappropriate behaviours. behavioural science knowledge. The aim of this discussion is to look briefly at how behavioural science knowledge becomes applied behavioural science knowledge.

8: Composition of Applied Behavioural Science Organization development is both a result of applied behavioural science and a. perhaps more accurately. a comparative search on the conditions and effects of various forms of social action. Fig. Action research is especially well-suited for planned change programs. had this to say about it: “The research needed for social practice can best be characterized as research for social management or social engineering.” Concluding Comments: . represent contributions from pure or basic science. I am inclined to hold the opposite to be true. 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.9 Action Research The action research model – a data-based. Kurt Lewin. then selecting and implementing treatments based on the diagnosis. behavioural science research and two behavioural science theory. who developed the concept of action research. form of applied behavioural science. represent contributions from applied science. It is a type of action-research. Action research is a method that combines learning and doing – learning about the dynamics of organizational change. 6.From this "practice theory. the two top in puts. it is a program of applying behavioural science to organizations. and finally evaluating the effects of the treatments. and action planning based on the data. Action research involves three processes: data collection. practice research and practice theory." the OD practitioner works: first diagnosing the situation. and doing or implementing change efforts. problem-solving method that replicates the steps involved in the scientific method of inquiry underlies most OD activities. feedback of the data to the client system members. 6. The two bottom inputs.

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

Refer section 6.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .3 5.1 2.3 4.Refer section 6. What are the features of systems theory of organizational development? 5.2. Ralph Kilmann 3. System 5. Transactional change 4. Refer section 6. Refer section 6. MU0002-Unit-07-Organization Climate Unit-07-Organization Culture and Climate Structure: 7.2.” Comment on this statement. Unfreezing 2. Refer section 6.1 Introduction Objectives 7.12 Answers to SAQs and TQs SAQs: 1. “Work teams are building blocks of organizational development.2 3.4.2 Characteristics of Organization Culture Culture and .2. Synergy Answers to TQs: 1. 6.

Martin and Meyerson. Culture is comprised of the assumptions. values. You can tell the culture of an organization by looking at the arrangement of furniture. but everyone knows it when they sense it.3 Types of Organization Culture. organizational culture is the personality of the organization. what members wear. For example.8 Answers to SAQs and TQs 7. · Describe different types of Organization Culture · Explain organization culture and effectiveness.4 Organization Culture and Effectiveness 7. Practitioners are coming to realize that. 7. . and feeling in relation to these problems (Schein. Objectives: After studying this unit. Members of an organization soon come to sense the particular culture of an organization. for-profit corporation is quite different than that of a hospital which is quite different than that of a university. discovered.7. Comprehensively organization culture is the pattern of basic assumptions that is invented. organizational change must include not only changing structures and processes. norms and tangible signs (artifacts) of organization members and their behaviors. 1986). but also changing the corporate culture as well. and validated enough to be taught to new members as the correct ways of perceiving.1 Introduction Basically. what they brag about. etc. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration.5 Developing and changing Organization Culture Self Assessment Questions 7. thinking. The concept of culture is particularly important when attempting to manage organization-wide change. you will be able to: · Understand Organization Culture. Culture is one of those terms that’s difficult to express distinctly. – similar to what you can use to get a feeling about someone’s personality.6 Summary 7. the culture of a large. despite the best-laid plans.7 Terminal Questions 7.

Note that the Market organization is not one which is focused just on marketing. Norms. and the way members of the organization conduct themselves with customers or other outsiders. They often have well-defined policies. 7. and rituals related to deference and demeanor. Hierarchies have respect for position and power. Rules: There are strict guidelines related to getting along in the organization.· Discuss about developing and changing organization culture. Standards of behavior exist. processes and procedures. Philosophy: These are policies that set forth the organization’s beliefs about how employees and/or customers are to be treated. Some of the most readily agreed upon are the following: 1. Organizational climate: This is an overall “feeling” that is conveyed by the physical layout. but one where all transactions. Observed behavioral regularities. this was considered the only effective way of organizing and is still a basic element of the vast majority of organizations. 4. Dominate value: These are major values that the organization advocates and expects the participants to share. do not do too little?” 3. Hierarchical leaders are typically coordinators and organizers who keep a close eye on what is happening.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. the way participants interact. and in particular taking note of transaction cost.2 Characteristics of Organization Culture Organizational culture has a number of important characteristics. Which in many organizations come down to “Do not do too much. 6. 5. Low absenteeism and high efficiency. terminology. New-comers must learn those “ropes” in order to be accepted as full-fledged members of the group. 7. they use common language. including guidelines on how much work to do. 2. When organizational participants interact with one another. internal and external are viewed in market . Market The Market organization also seeks control but does so by looking outward. Typical examples are high product quality. For many years.

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

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

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

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

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

and strategic constituencies approach.3 3. Finally. Effectiveness of an organization can be increased through economic man approach and administrative man approach. Organizations to be successful must be efficient and effective.goal approach. .5 Copyright © 2009 SMU Powered by Sikkim Manipal University . Briefly explain different types of organizational culture. Artifacts 2.8 Answers to SAQs and TQs SAQs: 1.Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. 2. Causal variables Answers to TQs: 1. Factors in organizational effectiveness include casual variables. Explain the characteristics of organization culture. Discuss the development and change of organizational development. 7. Refer section 7. Market 3. Refer section 7. 3.2 2. 7.7 Terminal Questions 1. Organizational effectiveness can be measured through various approaches. Refer section 7. effectiveness through adaptive-coping cycle has been discussed. behavioural approach. system-resource approach. intervening variables and end-result variables and there exists interrelationship among these variables.

and for change to occur in an organization. Organization Development Unit-08.3 Two Faces of Power 8. Politics and Organization Development Structure: 8.” Organization development has been criticized for not taking into account power in organizations.1 Introduction Politics and Power and politics. power must be exercised.10 Terminal Questions 8. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics. indisputable facts of organizational life.1 Introduction Objectives 8.8 Acquiring and using Power Skills Self Assessment Questions 8.6 The Role of Power and Politics in the Practice of OD 8.4 Theories about the Sources of Social Power 8. That criticism was essentially correct for many years although it is less valid .9 Summary 8.5 Organizational Politics Defined and Explored 8. As Warner Burke observes: "Organization development signifies change. must be understood if one is to be effective in organizations.MU0002-Unit-08Power.11 Answers to SAQs and TQs 8.2 Power Defined and Explored 8.Power.7 Operating in a Political Environment 8. we examine power and politics in relation to organization development. In this unit.

" Analyzing these definitions shows some common elements: effectance-getting one’s way. We therefore define interpersonal power as the ability to get one’s way in a social situation. and behaviours of people. humankind would not have the standard of living it does today. Power-in-action may . humankind would not have much of the misery it does today. Without leadership (power) in medical. but kinetic power is the act of doing so. confiscation. political. The phenomenon of power is ubiquitous. financial. emotions. 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.actions and the decisions that precede them. and organizational activities. · Explain the role of power and politics in the practice of OD. you will be able to: · Define power and politics in organizations. the necessity of social interaction between two or more parties." “Power is the ability of those who possess power to bring about the outcomes they desire. Without leadership (power) directed toward warfare.” “A has power over B to the extent that he can get B to do something that B would otherwise not do. Objectives: After this studying this unit. and outcomes favoring one party over the other. The French word ‘pouvoir’ stands for both the noun ‘power’ and the verb ‘to be able. · Explain theories about the sources of power. to effect outcomes. 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. One person exerts power over another to the degree that he is able to exact compliance as desired.’ To have power is to be able to get desired things done. and repression. the act or ability of influencing others. · Acquire skills to handle power and politics in organizations. 8.2 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. spiritual. technological. Potential power is the capacity to do so.today. Without influence (power) people would have no cooperation and no society.

the positive face of power seeks to empower self and others. for organizations to function. the negative face of power is characterized by a primitive. an authority or power dimension is required." · French and Raven’s "Bases of Social Power. McClelland observed that while power has a negative connotation for most people." Her research in four organizations showed both kinds of power. In fact. In most organizations the positive face of power is much more prevalent than the negative face of power. not the possession of power as such. This positive face of power enables others to reach their goals as well as lets the person exercising power reach his or her goals. with collective. How do some people come to possess power? How is power generated. being exercised. power being the predominant mode. however. . hurting." · Salancik and Pfeffer’s "Strategic-Contingency Model of Power." A moment’s reflection. and lead. 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. The negative face of power seeks to dominate and control others. unsocialized need to dominate others. both positive and negative. we will examine four different views about who gets power and how: · Emerson’s "Power-Dependence theory.4 Theories about the Sources of Social Power Power exists in virtually all social situations. persuading-these are examples of positive uses of power. Power per se is probably neither good nor bad although Lord Acton observed that "power tends to corrupt. bestowed.take many forms. According to him. or positive. selling. Roberts came to a similar conclusion in her study of "collective power" and "competitive power. 8.3 Two Faces of Power David McClelland proposed an important distinction when he identified "two faces of power" – positive and negative. Crushing. It is especially salient in coordinated activities such as those found in organizations. influencing. or acquired? In this unit. suggests that many problems with power stem from the goals of persons with power and the means they use." · Mintzberg’s Observations on the Genesis of Power in Organizations. it is through the use of power that things get done in the world. influence. 8. coercing-these are examples of negative uses of power. absolute power corrupts absolutely. The positive face of power is characterized by a socialized need to initiate. We think this distinction provides a good insight into the concept of power. forcing. Leading.

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

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

Likewise we also treat authority as a subset of power. the last two definitions view politics as illegitimate or unsanctioned activities. viewing situations in win-win terms as much as possible. The first three definitions treat politics as a neutral set of activities. and a socialized need to lead. and how”. you must lose-rather than win-win terms. when. and choosing among alternative means and goals. “Organizational politics involve intentional acts of influence to enhance or protect the selfinterest of individuals or groups”. Both relate to pursuit of self-interest and overcoming the resistance of others. we view politics as a subset of power. These key areas are the battlefields where actors win and lose. a relative absence of the tactics of fighting. resource allocation. surprise. a tendency to view situations in win-lose terms-what I win.5 Organizational Politics Defined and Explored Harold Lasswell defined “politics simply as the study of who gets what. holding hidden agendas. it is engaging in activities to get one’s way. the power vested in office. unsocialized needs to dominate others. deceiving. like power. treating it as informal power. and conflict resolution processes. organizational politics is power-in-action in organizations. One important feature in these definitions should be examined further. illegitimate in nature. the capacity to get things done by virtue of the position held. conflict resolution. In fact. For our purposes. initiate. and predominant use of the tactics of fighting-secrecy.6 The Role of Power and Politics in the Practice OD . one gains a quick understanding of the overall "political climate" of an organization by studying its methods of resource allocation. withholding information. “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 negative face of politics is characterized by extreme pursuit of self-interest. 8.8. they are where the "goods" are distributed and the goals decided. develop and use power and other resources to obtain one’s preferred outcomes in a situation in which there is uncertainty about choices”. Both relate to getting one’s way-effectance. formal power. Analyzing these definitions suggests that the concepts of power and politics are similar. Thus. Organizational politics tend to be associated with decision-making. has two faces. “Organizational politics involve those activities taken within organizations to acquire. We are inclined to consider politics as neither good nor bad per se but believe that politics. and influence others. engaging in open problem solving followed by action and influencing. The positive face is characterized by a balanced pursuit of self-interest and the interests of others. but in this sense.

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

Success leads to credibility and stature."34 This maxim has been recognized for years under the heading of "get top-level support for the program. Competence: Demonstrated competence is the most important source of power. it will be strong externally. and possibly referent power (others may identify with and be attracted to the consultant). Paying attention to these sources of power will enhance the likelihood of success of OD programs. acceptability.7 Operating in a Political Environment We will present some general observations on operating in a political environment. the technology. 8. the values. 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. First.strength of OD derives from the strategy of change. Resource management: Power accrues to those who control resources-in this case. the OD consultant possesses power from the following bases: legitimate power (the OD program and consultant are authorized by the organization’s decision makers). Michael Beer has identified additional means by which an OD group can gain and wield power in organizations: 1. According to the framework of French and Raven. 5. expert power (the consultant possesses expert knowledge). 3. 6. If the OD group is cohesive and free of internal dissention. and ability to gain organizational support. Group support: If the OD group is strong internally. Sponsorship: "Organization development groups will gain power to the extent that they have sponsorship. the resources of OD expertise and ability to help organizational subunits solve their pressing problems. followed by some rules of thumb for the OD practitioner. and the roles of OD practitioners. organization development practitioners operate from a potentially strong power base they can use to advantage. These sources of influence produce a substantial power base that will enhance the likelihood of success. Early success in the OD program and its usefulness to key managers of the organization helps promote this reputation." 4. . it will gain more power. 2. Stature and credibility: Beer notes that power accrues to those who have been successful and effective. preferably multiple sponsorship. in powerful places. informational power (the consultant has a wealth of information about the strengths and weaknesses of the organization).

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

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

personal power and position power. This practical. Whetton and Cameron’s model is shown in following figure. and legitimacy. 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. a person’s power comes from two main sources. in turn. (Legitimacy refers to abiding by and promoting the values of the organization. arises from expertise. personal attraction. influence key powerholders to accept the OD program.) Position power derives from five sources: Centrality-access to information in a communication network. Personal power. which in turn will protect the interests of all concerned. then utilize a facilitative OD process in which the powerholders work on strategic business issues using consensus decision making to develop a corporate strategy. visibility-how much one’s work is seen by . effort. The power structure will realize that collaborative power is preferable to manipulation and deception.· 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. how-to book on power and organization development is well worth studying. 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. In this model. even those of little power. criticality-how important one’s job is flexibility-the amount of discretion in the job.

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

Strategic-contingency model of power asserts that power that accrues to the individuals. Organizational power is the ability of those who possess power to bring about the outcomes they desire. Power and politics are similar in nature. Methods for empowering others are the following: (1) involve subordinates in assigning work. (4) express confidence (5) foster initiative and responsibility. . 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. Define power in an organizational context and explain types of power.several means of resisting others’ influence attempts such as confrontation and using countervailing power. –––––––––– is made up of Charisma. when. Organizational politics involve intentional acts of influence to enhance or protect the self-interest of individuals or groups. 3. 8.10 Terminal Questions 1. 2. Concluding Comments: In this unit.9 Summary Power and politics are inseparable facts of organizational life. 8. _____________ has identified two faces of power.. and are amenable to positive control. and how. when and how. 5. (2) provide a positive. (3) reward and encourage others in visible and personal ways. Self Assessment Questions 1. and (6) build on success. units or departments is most important in solving organizational problems. Organizational politics is defined as the study of who gets what. 4. Power based on the power-receiver having identification with the power holder is called ––– ––––––––. arise from known conditions. Power and politics are similar in nature. emotions or behaviour of people. arise from known conditions. –––––– is the intentional influence over the beliefs. Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another. –––––––– defined politics as the study of who gets what. we have examined power and politics with the goals of understanding the phenomena and deriving implications for OD practitioners. and are amenable to positive control. Power can be either positive or negative. collaborative work environment. reputation and professional credibility. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics.

8. Refer section 8. 3.11 Answers to SAQs and TQs SAQs: 1.2 2. 4. Referent power 4. Describe briefly various theories of power.2.Refer section 8. 5. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9.1 Introduction . Refer section 8. Define organization politics. Power 2.6 5. Explain the role of power and politics in the practice of OD. Refer section 8. Refer section 8.5 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Personality Answers to TQs: 1. McClelland 3. Harold Lasswell 5.4 3. Identify the bases of individual power and the respective strategies for their success.

Objectives: . In this dynamic and fluid environment.7 Parallel Learning Structures 9. events intended to help an organization improve its performance and effectiveness. Nothing is permanent except change because change is permanently changing.2 Meaning and Definitions 9. These interventions vary from standardized program that have been developed and sometimes tailored program. organizational problems may repeat. An organization development intervention is a sequence of activities.6 Quality of Work Life Projects 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.4 Management By Objectives 9.3 Socio Technical Systems 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.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival.10 Summary 9. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design.Objectives 9. actions.8 Total Quality Management 9.5 Quality Circles 9.9 Reengineering Self Assessment Questions 9. These methods are receiving increasing attention in Organization Development.12 Answers to SAQs and TQs 9.11 Terminal Questions 9. These programs are derived from careful diagnosis.

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

consciously directed towards the effective and efficient achievement of organizational objectives. 9. is a technique and system which helps in improving organizational performance. therefore. Since then. a predictable cost Implementation of group strategies involves significant long-term man-hour and consultant costs. It could involve the following steps (Foster.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.critically. 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. Pasmore. 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. processes and functions to create a balance between the organization and its changing external environment. Though there are some variations in the practices of MBO and. The term MBO was coined by Drucker in 1964 when he emphasized the concept of managing by results. its definitional aspect. It endeavors to re-design the organization’s structure.” . Its basic idea has been derived from the concept of participative goal setting as a technique of OD. 1976.4 Management by Objectives Management by objectives (MBO). 1967. it has been defined as follows: MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. Cummings.

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

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.

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

It consists of small group of employees who meet voluntarily to identify and solve productivity problems. provides relevant information to all employees. Discuss Socio Technical Systems? 2.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . 9. Refer section 9. Quality circle Answers to TQs: 1.2 3. ties reward to performance and increase workers knowledge and skills through extensive training.Refer section 9. Drucker 3. It is also called continuous quality improvement.5 4.3 2. TQM pushes decision making power downwards in the organization.11 Terminal Questions 1. 9. Intervention 2. What are the advantages of structural interventions? 3. Refer section 9. . Refer section 9. Explain Management By Objectives? 4. Write a short note on Total Quality Management.circle represents a participative approach to employee involvement in problem solving and productivity improvement.12 Answers to SAQs and TQS SAQs: 1.

Hence.4 Causes for Resistance to Change.1 Introduction Objectives 10. organizational problems may repeat. 10.8 Terminal Questions 10.6 Methods of Reducing Resistance to Change.1 Introduction Change in Organizations are increasingly realizing the fact that change is the price of the survival. Self Assessment Questions 10.MU0002-Unit-10-Managing Organization Development Unit-10-Managing Change in Organization Development Structure: 10.3 Resistance to Change 10. 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.7 Summary 10.9 Answers to SAQs and TQs 10. Nothing is permanent except change because change is permanently changing. and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other.2 Nature of Change 10.5 Impact of Change on the Future Manager 10. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented). cope with the ongoing changes successfully in the first instance. Objectives: .

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

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

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

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

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

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

the introduction of a quality management program requires that production workers learn statistical process control techniques. Security: People who have a high need for security are likely to resist change because it threatens their feeling of safety. When Boeing announces its laying off 10.4 Cause for Resistance to Change Resistance to change doesn’t necessarily surface in standardized ways. As human beings. They may. we’re creatures of habit. For instance. some may fear they’ll be unable to do so. When we are confronted with change. and so on. engaging in a work showdown. For example. To cope with this complexity. we’ve categorized them by individual and organizational sources. this tendency to respond in our accustomed ways becomes a source of resistance. you find a single route and you use it regularly. or deferred. developing a new lunchtime routine. we all rely on habits. It is easiest for management to deal with resistance when it is overt and immediate. taking a new set of streets to work. For analytical purpose. therefore.000 people or Ford introduces new robotic equipment. So when your department is moved to a new office building across town. threatening to go on strike. when you go to work or school. immediate. many employees at these firms may fear that their jobs are in jeopardy. Training . Let’s look at the sources of resistance. Life is complex enough. 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. do you continually use the same route and streets? Probably if you’re like most people. Resistance can be overt. or programmed responses. the selection process systematically selects certain people in and certain people out. finding a new parking place. Habit Every day. it means you’re likely to have to change many habits: waking up 10 minutes earlier. adjusting to the new office layout. develop a negative attitude towards quality management or behave dysfunctionally if required to use statistical techniques. Organizational resistance Structural Inertia: Organizations have built-in mechanisms to produce stability. If for example. or the like. And people in general don’t like the unknown. especially when pay is closely tied to productivity.10. implicit. we don’t need to consider the full range of options for the hundreds of decisions we have to make every day. Fear of the Unknown: Change substitute ambiguity and uncertainty for the known. 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 same applies to employee.

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

Therefore. the following efforts can be taken: 1. However. In many cases. this is not a one-time action. 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.6 Methods of Reducing Resistance to Change One of the basic problems in managing change is to overcome people’s resistance to change successfully. it can make effectively by managing resistance effectively. the role of formal authority in implementing a change may not be effective all the times. the problems can be solved at the same level. 10. Problem solving now involves the people who are experts in the issue – not necessarily those in high positions in the organization. rather should be looked upon as a dialogue which continues over a period of time. In addition.The ultimate goal is to improve organizational performance by cutting production time or time to market. typically by way of computer network links. It may affect only a few while others may not be affected. This requires that managers think differently and teach employees to think differently.” Problem of overcoming resistance to change can be handled at two levels. It implies explanation and . Unless this problem is overcome properly. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. Involvement: Involvement is a process through which those who are affected by the change are brought to understand the change.” The newer organizational structures use term problem solving. at the level of individual and at the level of group. through group dynamics. Locavini observes that “the secret of real success is effective management of the emotional vulnerability that accompanies organizational change. that is. even the impact of change may be dysfunctional if change is imposed upon the people by the use of formal authority. They need to be adept at reading the trends in the environment and then determining what they mean specifically for their own organization. Stephen Robbins suggests that “…… managers in virtual structures spend most of their time coordinating and controlling external relations. managers must be more skilled at reading the environment and grasping the big picture. For example. strategic directions for the company must be identified in light of these changes. both at the formal and informal levels. Efforts at Individual Level A change is likely to affect some people in some way. For this purpose. When the resistance comes from the people at individual levels. More fluid structures require that managers improve their strategic orientation. the effect of the change may not be as functional as envisaged by the management. As organizations must be better equipped to respond to change in their external environment.

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

such aspects as the reasons for change. It would be prudent for management to take labour representatives into confidence before implementing any change. It purports how the results are. . The same is true of problem-solving. mere participation may not help. It implies a new equilibrium between different components of the organization – technology. Such training techniques provide understanding of behaviour. (iii) Group can get at the basic problem very rapidly as compared to a single individual. 3. _________ 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. many things about change can be made clear. Research studies also support this aspect. Participation: Participation helps to give people involved in the organizational change and inculcate a feeling of importance. the group itself should be the point of contact. Such training techniques include role playing. The group contact offers some specific advantages: (i) Through groups. The laboratory method provides a setting where group processes can be studied intensively. Self Assessment Questions 1. Those people who are directly affected by the change should be given opportunity to participate in that change before the final decisions are reached. (ii) In group. However. psychodrama. Group Dynamics Training for Change: Group dynamics also helps in providing various training programmes for accepting and implementing change. It makes people feel that the organization needs their opinions and ideas and is unwilling to go ahead without taking them into account. one can communicate with more people per unit of time. Through the group contact. structural arrangement. benefits of change. 2. there may be some person who may communicate to the same group. and sensitivity or T-group training. For this purpose. taking whole of the group into confidence helps in maintaining a cooperative attitude. They must be made a party to the change rather than an agent for resistance to change. Group Contact: Any effect to change is likely to succeed if the group accepts that change. This is more important in the case of workers who themselves treat a separate group and do not identify with the management. thereby the people can build up the climate based on mutual trust and understanding which are essential for bringing organizational changes successfully. sentiments and attitudes towards change. __________ are based on people’s emotions. job design and people. _________ helps to give people involved in the organizational change and inculcate a feeling of importance. and how members contribute. Even if only some of the members are affected by the change. and how the benefits of the meaningful and continuous dialogue are necessary. 3. 2.1. Free flow of information helps people to understand the real picture of the change and many misunderstandings may be avoided.

10. It is easiest for management to deal with resistance when it is overt and immediate. both at the formal and informal levels.8 Terminal Questions 1. For instance. Refer section 10. that is. Organizational change 2. or the like. a change is proposed and employees quickly respond by voicing complaints. It implies a new equilibrium between different components of the organization. Refer section 10. through group dynamics. Organizational change is the alteration of work environment in an organization. implicit. Reference: .2 2. Psychological factors 3. social factors.10. Economic factors.7 Summary Change is inevitable. psychological factors. Problem of overcoming resistance to change can be handled at two levels. Participation Answers to TQs: 1.6. Refer section 10. or deferred.9 Answers to SAQs and TQS SAQs: 1. at the level of individual and at the level of group. 10. Why do organizations resist change? 3. engaging in a work showdown. immediate. People tend to resist many types of changes because new habits or sacrifices are required. Resistance can be overt. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. threatening to go on strike. Explain the nature of change? 2. Discuss the methods of reducing resistance to change.4 3. Changes may be influenced by external and internal factors. group resistance and vested interests.

New Delhi. N. · T. E References            http://fds. Edward Freeman. Modern Organization Development and Change. · Cummings & Worley. Jain. Thomson · Daft Richard L. Organization Theory and Design. · L. Dhanpat Rai & Co. · James A.pdf http://www.managementtoday.ac.. Organizational Behaviour.bus.htm#TopOfPage http://www. Ltd.lib. Robbins.co.uk/search/article/634958/the-ceos-role-managing-change/ http://www. Principles & Practice of Management.kyoto-u. 12th edition.jp/~kyodo/kokyuroku/contents/pdf/1461-15. Prentice-Hall India.. · Stephen P. Chhabra. New Delhi.pdf http://www. Anmol Publications Pvt.umich. Organization Development & Change. Organizational Behaviour. · Harigopal K.edu/groups/learning/wp8. · Stephens P. Pvt.umich. Principles and Practices. Thomson South Western. · Laxmi Devi. M.jhu.oup.edu/cameronk/CULTURE%20BOOK-CHAPTER%201. P.oup. Prentice-Hall of India Private Limited. Jr. Organizational Development. Educatiional Publishers. Management.edu/journals/portal_libraries_and_the_academy/v005/5.Singh. Ltd. eighth edition.com/www.Response Books. Management. Sultan Chand & Sons.managementhelp. Organization Development.cfm http://www.org/docrep/w7503e/w7503e05. · J.com/opm/grtl/OLS/ols6.wdi.pdf http://www. Prasad. French and Cecil H.org/org_chng/org_chng.· Wendell L. Robbbins.pdf http://webuser.1lowry.edu/files/Publications/WorkingPapers/wp598. . Prentice-Hall of India. New Delhi.htm#anchor73776 Copyright © 2009 SMU Powered by Sikkim Manipal University . New Delhi. Stoner and R. Bell.htm www.kurims.com/articles/leadchange. Prentice-Hall of India. New Delhi. New Delhi.uk/pdf/bt/fincham/Chapter15.fao.work911.pdf www.humtech. Regal Publications New Delhi.co. N. P.umd.html http://muse. F.management of Organization Change.

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