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

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

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

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

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

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

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

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

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

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

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

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

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

_________. 3. public organisations sector and non-business private sector.8 Summary Management is concerned with getting things done through other people.10 Answers to SAQs and TQs SAQs: 1. middle and lower. 2. materials. Five M’s of management (________. Human skills are important at all managerial levels. Management 2.government offices.9 Terminal Questions 1. motivating and controlling the efforts of others towards a specific objective. Explain its characteristics. Bring out the difference between Administration and Management. 3. teamwork . co-ordinating. organisations. manpower 3. Self Assessment Questions in the 1. Money. Management creates ________ and motivates employees to work harder and better by providing necessary guidance. It is the management which transforms physical resources of an organization into productive resources. Management is largely found at the middle and lower levels and administration is found at the higher levels. ___________. Managers perform different roles to discharge their responsibilities. Discuss the importance of management. 2. There are three levels of management-top. __________is principally the task of planning. 1. Define management. 1. 1. machinery and methods or ways of doing things) depends to a great extent on the quality of management. Still management is not completely a profession. Lower level managers require and use a greater degree of technical skill and managers at higher levels use a greater degree of conceptual skill. counseling and effective leadership.

2 Process of Management 2.5 Staffing 2.1.10 Answers to SAQs and TQs .5 3.8 Summary 2.2. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.3 Planning 2.7 Motivating Self Assessment Questions 2. Refer section 1. Refer section 1.7 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 1.4 Organizing 2.Answers to TQs: 1.9 Terminal Questions 2.1 Introduction Objectives 2.3 2.6 Directing 2.

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

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

The SWOT analysis begins with a scan of the external environment. journals and reports (scientific. Are the facilities outdated? 3. professional or trade associations (conventions and exhibitions). state. international). Weaknesses. federal. What is our market share? 5. For assessing the strengths of the organization the following questions are important: 1. Are the technologies obsolete? For identifying opportunities the following elements need to be looked at: 1. customers (internal and external). Sources of information may include stakeholders like. What financing is available? 6. 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. Opportunities. In which areas is the competition not meeting customer needs? 2. governments (local. suppliers. 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. What are the possible new markets? . Conduct a situational or SWOT analysis A situation or SWOT (Strengths. Is research and development adequate? 4. How efficient is our manufacturing? 3. professional. and trade). What are the vulnerable areas of the organization that could be exploited? 2. How skilled is our workforce? 4. Analyzing strengths and weaknesses comprises the internal assessment of the organization.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 substitute products exist? In general terms. Are our rivals weak? 5. In turn. operational plans are based on the organization’s tactical plans. Is there a shortage of resources? 4. as well as gap analysis. What are the new regulations? 6. organizations have longterm objectives for factors such as. Are market tastes changing? 5. These are specific plans that are needed for each task or supportive activity comprising the whole. Are there new competitors? 3. What are the emerging technologies? 6.3. effectiveness. Strategic. Develop related strategies (tactical and operational) Tactical plans are based on the organization’s strategic plan. etc. Benchmarking systematically compares performance measures such as efficiency. In which areas does the competition meet customer needs more effectively? 2. or outcomes of an organization against similar measures from other internal or external organizations. Set goals and objectives Strategic goals and objectives are developed to fill the gap between current capability and the mission. What is the strength of the economy? 4. They are aligned with the mission and form the basis for the action plans of an organization. tactical. Generally. It also helps in setting minimum acceptable standards or common-sense minimums. Objectives are also called performance goals. the best strategy is one that fits the organization’s strengths to opportunities in the environment. The SWOT analysis is used as a baseline for future improvement. return on investment. Comparing the organization to external benchmarks (the best practices) is used to assess current capabilities. earnings per share. and operational planning . Is there a possibility of growth of existing market?) Identifying threats involves the following: 1.

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

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

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

It is an important function of management: Directing is an important management function which provides a connecting link between planning. sex. humanness and psychological health a person will show. guide. As Theo Haimann puts it. Continuous function: Directing is a continuous process. nothing or at the best very little would be accomplished”. from the basic to the complex. Direction has dual objectives. to provide superiors opportunities for some more important work which their subordinates cannot do. teach. 4. the number of subordinate he has and the other duties he is expected to perform. It emphasizes that a subordinate is to be directed by his own superior only. and the Two-Factor theory.4. “without the issuance of directives. 2. only unsatisfied needs can influence behavior. On the one hand. The person advances to the next level of needs only after the lower level need is at least minimally satisfied. Pervasive function: Directing is a managerial function performed by all mangers at all levels of the organization. without guiding and overseeing subordinates. thirst. human beings have wants and desires which influence their behaviour. proposed by Maslow (1943). The amount of time and effort an executive spends in directing however. the more individuality. it aims at getting things done by subordinates and. and other bodily needs . satisfied needs cannot. The manager never ceases to direct. organizing and staffing on one hand and controlling on the other. The further they progress up the hierarchy. Theories X and Y. 3. Direction imitates at the top level in the organization and follows to bottom through the hierarchy. coach and supervise his subordinates. 5.7 Motivating Motivating In the 1950s three specific theories were formulated and are the best known: Hierarchy of Needs theory. 2. Essence of performance: Directing is the process around which all performances revolve. The needs are arranged in order of importance. Directing is the process around which all performances revolve. shelter. Nature of Directing The nature of directing can be discussed under the following: 1. on the other. The five needs are: · Physiological: Includes hunger. Maslow’s Hierarchy of Needs Theory According to this theory. will vary depending upon his level.

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

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

Staffing Answers to TQs: 1.3 2. Write a short not on directing. Explain Staffing in detail 3. Reference 2. Follett 2. Reference 2. Reference 2.6 Copyright © 2009 SMU Powered by Sikkim Manipal University . What is planning? 2. SWOT 3. 2.9 Terminal Questions 1. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3.2.10 Answers to SAQs and TQs SAQs: 1.1 Introduction Objectives .5 3.

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

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

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

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

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

and procurement. members are trained in competencies such as planning.By intact work teams and other configurations. manufacturing. engineering. OD encourages collaboration between organization leaders and members in managing culture and processes. He uses the terms ‘multifunctional projectization’ and ‘horizontal systems’ to describe these teams and their work. 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. This method resulted in loss of synergy. and then disbanded with the people going on to new tasks. Specifically. But in many organizations today. When teams function well. much rework. firing. the process “threw the results over the wall” to the next functional unit. OD focuses on culture and processes. such as design. . These self-directed teams assume complete responsibility for planning and executing work assignments. When one function finished with its part of the project. constantly shifting teams will be the dominant configuration for getting work done. In Liberation Management. The current method for getting complex tasks done in organizations is to assemble a cross-functional team comprised of members from all the functional specialities required to get the job done. The old method was to have functional specialists work on the problem sequentially. 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. hiring. and using management information. Over time. The results are usually highly gratifying both for the team members and for the organization. and training. 2. We think teams are the basic building blocks of organizations. The most prevalent form of teams in organizations is intact work teams consisting of superior and subordinates with a specific job to perform. wasted time. Temporary. according to Peters. To summarize. The definition we have just analyzed contains the elements we believe are important for OD. here are the primary distinguishing characteristics of organization development: 1. Further. Today’s organizations increasingly use ad hoc teams that perform a specific task and disband when the task is completed. In addition to team building and role and goal clarification. self-directed teams control performance appraisals. and considerable antagonism among the separate functional specialists. team culture can be collaboratively managed to ensure effectiveness. maintaining quality control. individuals and the organization function well. 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. multifunctional. Team building and role and goal clarification interventions are standard activities in OD programs directed toward intact work teams.

4. 9. 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. OD practitioners are facilitators. OD views organization improvement as an ongoing process in the context of a constantly changing environment. This ‘planned’ emphasis separates OD efforts from other kinds of more haphazard changes that are frequently undertaken by organizations. temporary. and cyclic processes. Rather. Attempting to create “win-win” solutions is standard practice in OD programs. and co-learners with the client system. OD takes a developmental view that seeks the betterment of both individuals and the organization. OD focuses on the elevation of an organization to a higher level of functioning by improving the performance and satisfaction. OD relies on an action research model with extensive participation by client system members. OD focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. 5. It recognizes that organizational goals change.3. 3. Participation and involvement in problem-solving and decision-making by all levels of the organization are hallmarks of OD. 7. interactive. Planned Change: OD is a strategy of planned change for organizational improvement. An overarching goal is to make the client system able to solve its problems on its own by teaching the skills and knowledge of continuous learning through self-analytical methods. OD focuses on total system change and views organizations as complex social systems. dynamic and adaptive system. 6. 10. . Teams of all kinds are particularly important for accomplishing tasks and are targets for OD activities. 3. 2. or isolated problems. so that change is easily observed. Dynamic Process: OD is a dynamic process and includes the efforts to guide and direct changes as well as to cope with or adapt changes imposed. they are ongoing. Long-range Change: OD efforts are not meant for solving short-term. The concept of comprehensive change is based on the systems concept-open. Comprehensive Change: OD efforts focus on comprehensive change in the organization. OD efforts are not one-shot actions. Thus. 8. collaborators. rather.3 Characteristics of OD 1. 4. rather than focusing attention on individuals. so the methods of attaining these goals should also change.

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

and (d) The interventions are based on behavioural science theory and technology. 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.6 OD and Management Development . (i) To increase self-control and self-direction for people within the organization.5 Goals of Organization Development Following are the generally accepted goals of OD: (a) To create an open. (f) To develop a reward system which recognizes both the achievement of the organization’s goals (profit or service) and development of people. (b) To supplement the authority associated with role or status. (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. (j) To improve effectiveness of the organization. its underlying theory and assumptions and some of the pitfall and challenges in attempting to improve organizations through behavioural science. 3. 3. (c) To locate decision making and problem-solving responsibilities as close to sources of information as possible. with the authority of knowledge and competence. like other normative re-educative programmes. (e) To make competition more relevant to work goals and to maximize collaborative efforts. We need to examine carefully the techniques of Organization Development. (d) To build trust among persons and groups throughout an organization. This Organization Development progrmmes. problem solving climate throughout an organization.(c) The interventions are directed towards problem-solving and improved functioning for the client system.

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

substantial disenchantment with OD became evident because of many controversial OD techniques like sensitivity training. 6. To increase the level of enthusiasms and personal satisfaction at all levels of the organization. By 70s. however.Approach Time Educative and training Short-range. To treat each human being as a complex person with a complex set of needs important in his work and his life. plays key role in organizational improvement.8 Problems in Organization Development Organization development. To increase the level of trust and mutual emotional support among all organization members. Research studies have also failed to conclude . To create an environment in which authority of assigned role is augmented by authority based on knowledge and skills. OD can be utilized for the following results in the organization: 1. Problem-solving approach. Trained specialists required. Thus. Long-range strategy for organizational innovation and renewal. and laterally. 5. Since OD attempts to bring comprehensive change in the organization. To increase the openness of communications in all directions-vertically. 7. 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. Specialist No special requirement. 2. Much of the enthusiasm created at the beginning of OD programmes vanished over the period of time. however. 3. 3.7 Role of Organization Development Organization development. 4. has invited sharp criticism as a strategy to increase organizational viability and effectiveness because many OD programmes have failed. 3. confrontation techniques. horizontally. etc. as a long-term strategy for organizational change. In early 60s. OD became quite successful with many professional consultants offering high services and programmes to various organizations. To place emphasis on humanistic values and goals consistent with these vales. To increase the level of self and group responsibility in planning and its implementation. it is quite suitable for improving organizational performance on long-term basis.

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

Who is associated with the “Learning Organizations”? 5. Organization development should be led and supported by –––––––. ––––––– is associated with “Liberation Management”. But OD aims at changing the entire organizational climate where the managers work. 3. 3.10 Terminal Questions 1. What are the problems involved in the implementation of OD? 3. collaborative. Define OD. OD focuses on culture and processes. Empowerment . Distinguish between ‘organizational development’ and ‘management development’. OD is the ultimate remedy for organizational improvements and developments. Management development aims at developing the managers individually.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy.11 Answers to SAQs and TQs SAQs: 1. There is no ‘quick fix’ to organizations’ problems. 4. 4. 3. 2. 5. 3. Explain its salient features.Self Assessment Questions 1. Explain the various characteristics of OD. 2. The participative. Top management 2. Tom Peters 3. State the various roles of OD. _____________is a short-term strategy. ––––––––– is a process which includes leadership behaviours and human resource practices. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. problem-focused ‘nature of OD’ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization.

2 2. Refer section 3.2 Survey Feedback 4.1 Introduction Objectives 4.5 Leadership Development 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .3 3.7 5. Refer section 3.6 4. Refer section 3. Management development Answers to TQs: 1. Refer section 3.6 Team-building .4 Grid Training 4. MU0002-Unit-04. Peter Senge 5.3 Process Consultation 4.Organization Development – Interventions Unit-04.4. Refer section 3.Organization Development – Interventions Structure: 4.

Interventions constitute the action thrust of organization development. the classification of OD interventions shows variation.7 Inter Group Development 4. and organizational culture. People’s behaviour may be relevant to understand at individual level. process consultation. techno-structural activities. they make things happen. many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others. 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. For example. management grid. inter-group level.10 Summary 4. and organizational level. team-building. Therefore.12 Answers to SAQs and TQs 4.” There are various OD interventions and they are classified in different ways. survey feedback. French and Bell have suggested twelve families of OD interventions: diagnostic. Thus. mediation and negotiation activities. 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. interpersonal level. inter-group activities. group level. 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. 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. Further.8 Change Agents 4. the classification appears to be more relevant because it may specify the .9 Role of Change Agents Self Assessment Questions 4.11 Terminal Questions 4. various consultants and practitioners have different opinions about the activities which can be included in interventions. work group.4. Nevertheless. interventions may be required to change people at all these levels.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. education and training. However.

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

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

etc. time. and act upon the process events which occur in the client’s environment.information.C are as follows: 1. 4.3 Process Consultation Process Consultation (P. 3. group norms. and interview about the problems. 4. group decision-making and problemsolving. To understand how various organizational processes can be linked to objective achievement in the organization.C has defined it as follows: “The set of activities on the part of the consultant which help the client to perceive. 2. the client’s expectations and hoped-for results are also decided.” The basic objectives of P. 2. Steps in Process Consultation Schein has suggested following specific steps which the consultant would follow in a P. . 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. it provides base for action for change. Information collected is processed to diagnose the problems and their underlying causes. and inter-group co-operation and conflicts.C) is a technique for intervening in an ongoing system. A survey feedback is not a technique in itself for change. 1.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. At this stage. communication. Initiate Contact: This is beginning stage of P.C are communicated to them with a view that they co-operate with the consultant. client and consultant enter into agreement covering various aspects of consultancy services like fees. Define the Relationship: At this stage. the consultant is introduced to the organizational members and basic objectives of the P. the leading writer and consultant on P. The basic content of P. understand. Edgar Schein.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. At this stage. spelled out at the initial stage. Gather Data and Make a Diagnosis: Information is collected from various sources thorough the use of questionnaires. This data gathering occurs simultaneously with the entire consultative process. observations. and spelling out services. roles and functions of group members.C programme of OD. To bring desired change in the various organizational processes like leadership.

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

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

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

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

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

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. When the same individuals pulled on the rope of groups of three. The phenomenon of social loafing can be minimized by constituting effective team for group performance. team members may tend to contribute positively to the teamwork. In the above paragraph.6 pound of pressure while tugging on the rope. Dropping of average output in group efforts indicates that some members of the group were not contributing as much as they did individually. other factors remaining the same. If the organizational climate is not in tune with high achievement. From this statement. 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. Supportive Environment: A team loaded with skilled members cannot perform well if the organizational climate is not supportive for that. 2. we have mentioned that team effectiveness depends on the complementarity of team members. They averaged 138.2 pounds. Let us see how these factors make a team effective. The possibility of occurring of social loafing in a team-work increases because of the following reasons: 1. Individuals were asked to pull alone as hard as possible on a rope attached to a strain gauge. group efforts tend to slacken. Therefore. individual members do not contribute to the fullest extent. While skills are relevant for job performance. 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. Skills and Role Clarity: For an effective team. When the division of work cannot be accomplished properly and individual efforts are hard to determine. Thus. it appears that there are many factors in an effective team. 1. skills which are complementary to the team requirement and understanding of one’s own role as well as roles of other members. group of eight. 2. understanding of roles helps members to meet the requirement of one another thereby solving the problems which the team faces. .it was found that individuals’ total efforts were much higher than the group efforts. These factors are skills and role clarity. managers at higher levels particularly at the top level should set organizational climate and culture which enthuse team members to put their best. and attitudes. the individual average dropped down still lower68. When the group is not cohesive with high output norms. goals. supportive environment. two things are required from its members. Even if one member lacks behind.

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

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

group discussions. are disadvantaged because they usually have an inadequate understanding of the organization’s history. Outside consultants. internal management often will hire the services or outside consultants to provide advice and assistance. as the accelerator to build up momentum. changing (intervening) and refreezing. enabling the client to let off steam: as the ignition to spark action. culture. internal staff specialists or managers when acting as change agents. as the break for too quick action.8 Change Agents Change agents: Can be managers or nonmanagers. cases and experiential learning etc. 4. as the shock absorber when the going is rough. He has to educate people on the need and importance o change using a variety of methodologies – lectures. operating procedures. or outside consultants. can now be created for further diagnosis and to begin to formulate possible alternative actions that will improve relations. For major change efforts. presentations. In contrast. employees of the organization. however. Trainer A change agent needs to be a trainer and educator. films.Subgroups. . and personnel. The consultant may fulfill a variety of functions. 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”. Because they are from the outside these individuals an offer can offer an objective perspective often unavailable to insiders. or as fog lamp when the future is hazy. as the radiator absorbing some of the heat of the controversy. role-plays and instruments. 4. According to Curtis Mial: “The Consultant may serve as the exhaust value. may be more thoughtful (and possibly cautious) because they to live with the consequences of their actions.9 Role of Change Agents The change agent may play different roles according to the need of organization development . with members from each of the conflicting groups. The trainer role is most widely and intensively used at all stages of a change project: unfreezing.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.

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

MU0002-Unit-05-Values.3.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .12 Answers to SAQs and TQs SAQs: 1.4 2. 4.1 Introduction Objectives 5. and Beliefs in Organization Development Structure: 5. What is team-building? What are the stages of life cycle of a team? 4. Refer section 4. Refer section 4.6 4. 3. Explain Change agents and discuss the role of change agents in detail. Data collection 2. Assumptions. Refer section 4. Blake and Mouton.2 3.2 Definitions and . Assumptions. Beliefs in Organization Development Unit-05-Values. Social loafing Answers to TQs: 1. Refer section 4.

· List the chronology of events of values. and beliefs constitutes an integral part of organization development. Objectives: After studying this unit. assumptions.5. .6 Summary Self Assessment Questions 5. Most of these beliefs were formulated early in the development of the field. 5. beliefs and assumptions. and they continue to evolve as the field itself evolves.5.8 Answers to SAQs and TQs 5.2 Definitions A belief is a proposition about how the world works that the individual accepts as true.5.3 Chronology of Events in Management and Organization Thought 5.2 Implications for Dealing with Groups 5.7 Terminal Questions 5. you will be able to: · Explain the meaning of values. · Give the statement of OD values and assumptions.5.1 Introduction A set of values.5 Implications of OD Values and Assumptions 5. · State the implications of OD values and assumptions. it is a cognitive fact for the person.4 Early Statements of OD Values and Assumptions 5.1 Implications for Dealing with Individuals 5. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers. beliefs and assumptions. shaping the goals and methods of the field and distinguishing OD from other improvement strategies.3 Implications for Designing and Running Organizations 5.

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

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

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

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

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

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

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

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

and empowering. developmental. Values are also beliefs. they are the source of productivity and profits and should be treated with care. A belief is a proposition about how the world works that the individual accepts as true. OD values tend to be humanistic. Self Assessment Questions . it is possible to create organizations that on the one hand are humane. Chronology of events in management and OD tremendously influenced OD practitioners." as behavioural scientists and managers continue to develop better understanding of authority structures. This notion suggests it is good to have a developmental outlook and seek opportunities in which people can experience personal and professional growth. This discussion was intended to articulate an appreciation of OD values and explain where they came from. 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. Values. but are widely accepted today. The rapid technological.6 Summary The field of OD rests on a foundation of values and assumptions about people and organizations. By implication. beliefs and assumptions are cognitive facts. The belief that people are important tends to result in their being important. quality of output. assumptions and beliefs help to define what OD is and guide its implementation. Finally. organizing structures. The implication is that people are an organization’s most important resource. and on the other hand are high performing in terms of productivity. optimistic and democratic. and ways to optimize human potential. developmental set of assumptions about people is likely to reap rewards beneficial to both the organization and its members. Creating co-operative rather than competitive organizational dynamics is a primary task of the organization’s leaders. Evidence for this assumption comes from numerous examples where “putting people first” paid off handsomely in profits and performance. they change over time. and profitability. Values. an optimistic.over the long run and highlight the need for a “win win” attitude. societal. and organizational changes taking place assure that tomorrow will bring new definitions of what is "true" and new beliefs about what is "good. Such an orientation creates a self-fulfilling prophecy. Concluding Comment: The field of organization development rests on a foundation of values and assumptions about people and organizations. 5. These OD values were considered revolutionary when they emerged in the 1950s. Still. The belief that people can grow and develop in terms of personal and organizational competency tends to produce that result. These beliefs help to define what OD is and guide its implementation.

The concept of –––––––––– was introduced by MaxWeber. State the assumptions of Theory X and Theory Y. Taylor 3.3 . Refer section 5. 5. _______________ gave theory X and theory Y. beliefs. Bureaucracy 4. 2. The outcome of –––––––– was that people were not cogs and organizations were not machines.7 Terminal Questions 1. 3. 4. Write a note about F. values. 5. Douglas McGregor Answers to TQs: 1. W.8 Answers to SAQs and TQs SAQs: 1. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. Taylor’s principles of scientific management.1. Values. Refer section 5. Refer section 5.3 3. 5. and assumptions are all –––––––––– facts. beliefs and assumptions. F. __________ is associated with scientific management. Hawthorne experiments 5.W. What was the outcome of Hawthorne Experiments? 4. 3. Cognitive 2. Define concepts. 2.2 2.

3.2 Beyond the Quick Fix 6. Refer section 5.1 The Nature of Systems Kurt Lewin and Friends 6.3 The Burke-Litwin Model of Organizational Change 6.4 Porras and Robertson Model of Organizational Change 6. Refer section 5.3 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 Models and Theories of Planned Change 6.2.1 Introduction Objectives 6.3.4 Participation and Empowerment .2 Congruence among System Elements 6. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.4 Open Systems Thinking 6.4.3 5.3 Socio-technical Theory and Open Systems Planning 6.2.3 Systems Theory 6.2.2.

We will examine the following concepts: .1 Introduction This unit describes the foundations of organization development theory and practice. Objectives: After studying this unit. · Explain systems theory. · Explain normative-re-educative strategy of changing The knowledge base of OD is extensive and is constantly growing. In this discussion. Here we describe what we believe are the most important underpinnings for the field. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning.5 Teams and Teamwork 6. you will be able to: · Explain various models and theories of planned change. art and science which form the knowledge base upon which OD is constructed.11 Terminal Questions 6. · Realize the importance of teams and teamwork.6 Parallel Learning Structures 6.12 Answers to SAQs and TQs 6.8 Applied Behavioural Science 6.10 Summary 6. · Describe the parallel learning structures. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs.6.9 Action Research Self Assessment Questions 6.7 A Normative – Re-educative Strategy of Changing 6. · Explain the terms ‘participation’ and ‘empowerment’.

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

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

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

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

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

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

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

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

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

Each of these three system processes must work well if the system is to be effective and survive.3. the organization will cease to exist. raw material and so on. All open systems are input-throughput-output mechanisms. conversion. Organizations are open systems. in that they permit exchange of information. and what is outside the boundary is the environment. Organizations achieve negative entropy when they are able to exchange their outputs for enough inputs to keep the system from running down. money. Boundaries of open systems are permeable. we examine the characteristics of open systems drawing OD expositions by Katz and Kahn and Hanna. the reasons for their existence. people. and they export products to the environment in the form of outputs. information. or transformation processes that change the inputs. studying open systems leads to a good understanding of organizations. Every system is delineated by a boundary. What is inside the boundary is the system. Systems take inputs from the environment in the form of energy. . Open systems have purposes and goals.6. resources. They do something to the inputs via throughput.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. Therefore. the organization’s purposes will be reflected in its outputs. dynamics. Fig. and if the environment does not want these outputs. and energy between system and environment.1 The Nature of Systems The nature. These purposes must align with purposes or needs in the environment. 6. Here. A good rule of thumb for drawing the boundary is that more energy exchange occurs within the boundary than across the boundary. and characteristics of open systems are well-known. For example.

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

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

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

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

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

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

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

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

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

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

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

The Burke-Litwin model emphasized on first-order and second-order change.These foundations of organization development form the theoretical and practice underpinnings of the field. they constitute the beginning of a theory of organization development and change that has enormous potential for improving organizational performance and individual development. 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. A fundamental belief in OD is that work teams are the building blocks of organizations. which in turn lead to individual and organizational improvements is the principle of Porras and Robertson model organizational change. Explain Kurt Lewin’s models and theories of planned organizational change. 2. Action research model combines learning and doing. What are first-order and second order change according to Burke-Litwin Model of organizational change? Explain. 6. each is a powerful conceptual tool for thinking out and implementing change. 3. 2. 3.” 5. Systems theory views organizations as open systems in active exchange with their environment. –––––––––– gave the model “Beyond the Quick Fix”. –––––––––– means moving to new level of behaviour. _____________ means sum of the efforts of team members is far greater than the sum of individual efforts of members. OD interventions alter features of the work setting causing changes in individuals’ behaviours. A _____________ is defined as “a set of elements standing in interaction. Taken collectively. In parallel learning structures members have to think and behave in ways that are different from the normal roles and rules of the organization.10 Summary The foundations of organizational development form the theoretical and practice underpinnings of the field. Taken separately. Ralph Kilmann specified the critical leverage points for organizational change. . 6. 4.11 Terminal Questions 1. Self Assessment Questions 1. First—order change is also called ___________. Bring out the essence of “managing beyond the quick fix” model of organizational development.

1 Introduction Objectives 7. Ralph Kilmann 3.Refer section 6. Refer section 6. Refer section 6. What are the features of systems theory of organizational development? 5. “Work teams are building blocks of organizational development.2 3.2. Refer section 6. Refer section 6.4. Unfreezing 2. 6.1 2.2 Characteristics of Organization Culture Culture and . Synergy Answers to TQs: 1.3 5.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . System 5. Transactional change 4.12 Answers to SAQs and TQs SAQs: 1.2.” Comment on this statement. MU0002-Unit-07-Organization Climate Unit-07-Organization Culture and Climate Structure: 7.2.3 4.

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

but one where all transactions.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. Dominate value: These are major values that the organization advocates and expects the participants to share. Hierarchies have respect for position and power. and in particular taking note of transaction cost. terminology. Market The Market organization also seeks control but does so by looking outward. 7. They often have well-defined policies. 5. Note that the Market organization is not one which is focused just on marketing. Low absenteeism and high efficiency. do not do too little?” 3. Typical examples are high product quality. and rituals related to deference and demeanor. 6. Some of the most readily agreed upon are the following: 1. 7. Hierarchical leaders are typically coordinators and organizers who keep a close eye on what is happening. Organizational climate: This is an overall “feeling” that is conveyed by the physical layout. Standards of behavior exist. and the way members of the organization conduct themselves with customers or other outsiders. Philosophy: These are policies that set forth the organization’s beliefs about how employees and/or customers are to be treated. Rules: There are strict guidelines related to getting along in the organization. internal and external are viewed in market . 4.2 Characteristics of Organization Culture Organizational culture has a number of important characteristics. When organizational participants interact with one another. For many years. Norms. they use common language. 2. New-comers must learn those “ropes” in order to be accepted as full-fledged members of the group. this was considered the only effective way of organizing and is still a basic element of the vast majority of organizations. the way participants interact. Which in many organizations come down to “Do not do too much. Observed behavioral regularities.· Discuss about developing and changing organization culture. including guidelines on how much work to do. processes and procedures.

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

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

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

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

_____are the visible manifestations of culture as seen in the physical and social environment of the organization. Make changes from the top down. Assess the current culture. ___________are those factors that influence the course of development within an organization and its results or accomplishment. Expect to have some problems and find people who would rather move than change with the culture and. Guidelines for change Despite the significant barriers and resistance to change. and patterns of daily behavior. Move quickly and decisively to build momentum and to defuse resistance to the new culture. Include employees in the culture change process. the “culture contract” that individuals have bought into to guide their day-to-day thoughts. 8. 7. Self Assessment Questions 1. are particularly driven by results and are often very competitive. Recruit outside personnel with industry experience. commitment. Simple guidelines such as the following can be helpful. These emotions will be a major input into the clash or compatibility of the two cultures. 7. if possible. 9. 5. Emotions. especially when making changes in rules and processes. 2. 6. ________cultures are outward looking. 4.6 Summary .3. 3. 2. habits. The personal feelings. attitudes. This attempt to change culture can take many different forms. take these losses early. 3. so that they are able to interact well with the organizational personnel. Set realistic goals that impact on the bottom line. so that a consistent message is delivered from all management team members. organizational cultures can be managed and changed over time. Stay the course by being persistent. Take out all trappings that remind the personnel of the previous culture. 1.

Effectiveness of an organization can be increased through economic man approach and administrative man approach. Market 3. Finally. 2. Factors in organizational effectiveness include casual variables.7 Terminal Questions 1. Causal variables Answers to TQs: 1.goal approach. Refer section 7. system-resource approach. effectiveness through adaptive-coping cycle has been discussed.Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. Organizational effectiveness can be measured through various approaches. 3.3 3. intervening variables and end-result variables and there exists interrelationship among these variables. Discuss the development and change of organizational development. Briefly explain different types of organizational culture.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 7. behavioural approach. Organizations to be successful must be efficient and effective. Artifacts 2.8 Answers to SAQs and TQs SAQs: 1. 7. 7. Refer section 7. Explain the characteristics of organization culture. .2 2. and strategic constituencies approach.

10 Terminal Questions 8. and for change to occur in an organization.MU0002-Unit-08Power. As Warner Burke observes: "Organization development signifies change.9 Summary 8. That criticism was essentially correct for many years although it is less valid .” Organization development has been criticized for not taking into account power in organizations.7 Operating in a Political Environment 8. indisputable facts of organizational life. Politics and Organization Development Structure: 8.4 Theories about the Sources of Social Power 8.1 Introduction Objectives 8. In this unit.3 Two Faces of Power 8.Power.6 The Role of Power and Politics in the Practice of OD 8. power must be exercised.11 Answers to SAQs and TQs 8. must be understood if one is to be effective in organizations. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics.1 Introduction Politics and Power and politics.2 Power Defined and Explored 8. Organization Development Unit-08.8 Acquiring and using Power Skills Self Assessment Questions 8.5 Organizational Politics Defined and Explored 8. we examine power and politics in relation to organization development.

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

8." · French and Raven’s "Bases of Social Power." · Salancik and Pfeffer’s "Strategic-Contingency Model of Power.4 Theories about the Sources of Social Power Power exists in virtually all social situations. absolute power corrupts absolutely. In most organizations the positive face of power is much more prevalent than the negative face of power. or positive. and lead. being exercised. Roberts came to a similar conclusion in her study of "collective power" and "competitive power. selling. This positive face of power enables others to reach their goals as well as lets the person exercising power reach his or her goals. McClelland observed that while power has a negative connotation for most people. The negative face of power seeks to dominate and control others. 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. not the possession of power as such. We think this distinction provides a good insight into the concept of power. suggests that many problems with power stem from the goals of persons with power and the means they use. Crushing. hurting. According to him.3 Two Faces of Power David McClelland proposed an important distinction when he identified "two faces of power" – positive and negative. Leading." Her research in four organizations showed both kinds of power." A moment’s reflection. with collective. It is especially salient in coordinated activities such as those found in organizations.take many forms. both positive and negative. the positive face of power seeks to empower self and others. an authority or power dimension is required. The positive face of power is characterized by a socialized need to initiate. influencing. . or acquired? In this unit. for organizations to function. however. the negative face of power is characterized by a primitive. we will examine four different views about who gets power and how: · Emerson’s "Power-Dependence theory. How do some people come to possess power? How is power generated. forcing. persuading-these are examples of positive uses of power. 8. unsocialized need to dominate others. Power per se is probably neither good nor bad although Lord Acton observed that "power tends to corrupt." · Mintzberg’s Observations on the Genesis of Power in Organizations. bestowed. power being the predominant mode. In fact. it is through the use of power that things get done in the world. coercing-these are examples of negative uses of power. influence.

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

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

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

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

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

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

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

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

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

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

Refer section 8.2. Personality Answers to TQs: 1. Harold Lasswell 5. Referent power 4. Explain the role of power and politics in the practice of OD.11 Answers to SAQs and TQs SAQs: 1.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 8. Refer section 8.Refer section 8. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9.5 4. 4. Refer section 8. Describe briefly various theories of power. 8. Identify the bases of individual power and the respective strategies for their success. Define organization politics. Power 2. McClelland 3.2 2.1 Introduction .4 3. 5.6 5. 3.

1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival.6 Quality of Work Life Projects 9.11 Terminal Questions 9. In this dynamic and fluid environment.Objectives 9.12 Answers to SAQs and TQs 9. events intended to help an organization improve its performance and effectiveness. actions.2 Meaning and Definitions 9.7 Parallel Learning Structures 9.4 Management By Objectives 9. organizational problems may repeat. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design. Nothing is permanent except change because change is permanently changing. An organization development intervention is a sequence of activities. One important intervention technique is Technostructural interventions because these are related to technical and structural issues such as how to divide labour and how to coordinate department which is related to Restructuring organization. These programs are derived from careful diagnosis.8 Total Quality Management 9.5 Quality Circles 9. Objectives: . These methods are receiving increasing attention in Organization Development.9 Reengineering Self Assessment Questions 9.10 Summary 9. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future. These interventions vary from standardized program that have been developed and sometimes tailored program.3 Socio Technical Systems 9.

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

1967. processes and functions to create a balance between the organization and its changing external environment. Pasmore. therefore. It could involve the following steps (Foster. Though there are some variations in the practices of MBO and. 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. consciously directed towards the effective and efficient achievement of organizational objectives. many business and nonbusiness organizations have adopted this in some form or the other. It endeavors to re-design the organization’s structure. a predictable cost Implementation of group strategies involves significant long-term man-hour and consultant costs. is a technique and system which helps in improving organizational performance. The term MBO was coined by Drucker in 1964 when he emphasized the concept of managing by results. 9. its definitional aspect. Its basic idea has been derived from the concept of participative goal setting as a technique of OD. Since then. 1976. it has been defined as follows: MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner.critically. Cummings.4 Management by Objectives Management by objectives (MBO).” . though not strictly an OD intervention in the sense in which other interventions have been discussed so far.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.

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

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

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

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

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

TQM pushes decision making power downwards in the organization. 9. Discuss Socio Technical Systems? 2.12 Answers to SAQs and TQS SAQs: 1.3 2. Refer section 9. Drucker 3.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Quality circle Answers to TQs: 1. Explain Management By Objectives? 4.11 Terminal Questions 1. provides relevant information to all employees.2 3. It is also called continuous quality improvement. Refer section 9. . It consists of small group of employees who meet voluntarily to identify and solve productivity problems. Write a short note on Total Quality Management. ties reward to performance and increase workers knowledge and skills through extensive training. Refer section represents a participative approach to employee involvement in problem solving and productivity improvement. 9. Intervention 2.5 4.Refer section 9. What are the advantages of structural interventions? 3.

organizational problems may repeat. Nothing is permanent except change because change is permanently changing. Hence.3 Resistance to Change 10. cope with the ongoing changes successfully in the first instance.8 Terminal Questions 10. 10.2 Nature of Change 10.5 Impact of Change on the Future Manager 10. Objectives: .9 Answers to SAQs and TQs 10. In this dynamic and fluid environment.4 Causes for Resistance to Change.6 Methods of Reducing Resistance to Change.1 Introduction Objectives 10.1 Introduction Change in Organizations are increasingly realizing the fact that change is the price of the survival. and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other.MU0002-Unit-10-Managing Organization Development Unit-10-Managing Change in Organization Development Structure: 10. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented).7 Summary 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. Self Assessment Questions 10.

The type of new equilibrium depends on the degree of change and its impact on the organization. Newstrom and Davis have explained the impact of a change in any part of the organization on the total organization. which are major ones. job design and people.After studying this unit. we find that the shape of the entire balloon has changed. structural arrangement. · State the methods of reducing resistance to change. the change in organization does not occur purely on mechanical relationship. some parts may be affected directly. When change occurs in any part of the organization. indirectly. biological. some parts of organization may be affected more. Thus. the contour of the balloon visibly changes. they have concluded that the whole organization tends to be affected by change in any part of it. it has stretched slightly. 3. organizational change may have the following features: 1.2 Nature of Change The term ‘change’ refers to an alteration in a system. Thus. it disturbs the old equilibrium necessitating the development of a new equilibrium. However. you will be able to: · Explain the meaning of organization change. employees want to maintain a status quo. When a finger (which represents external force) is forced against a point on the balloon (which represents the organization). . if we look minutely. it becomes indented at the point of contact. While managers as change agents want to bring changes in the organization. Thus. organizational change is the alteration of work environment in an organization. Any change may effect the whole organization. 10. However. may require special change efforts. others. Though this phenomenon will be taken later. some changes which are of minor type may be absorbed by the existing equilibrium. Organizational change is a continuous process. · Impact of change on future managers. · Discuss the nature of change · Explain resistance to change and the factors which resist change. and others. However. less. It implies a new equilibrium between different components of the organization – technology.whether physical. and others. 2. or social. They have illustrated it by comparing an organization to an air-filled balloon. 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.

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

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

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

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. Sumantra Ghoshal. the organization may not bring it easily because it is accustomed to a particular system. dogmas.” This statement suggests that organizations tend to stabilize at a particular level and if the change efforts are not brought. first two reasons are basic and others are by-products of the first two. and institutes reward and punishment system. All these work in some circumstances. Many organizations are designed to be innovation-resisting. The system is stabilized and any change may be perceived as a threat by the organization itself. even the organization itself resists many changes because of certain reasons. prescribes rigid authority relationships. Strategies. The major reasons for organizational failure to change are: counting past successes. it may not be possible for the organization to bring necessary change. For example. Counting Past Successes: A major problem before the organizations which have past success stories is how to face challenges of the changing environment. 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. For example. nothing fails as spectacularly as spectacular success. It is called ‘The Failure of Success’. Resource Limitations: No doubt. Some of these reasons are basic while others are by-products of those. Organizational Resistance to Change: Not only individuals and groups within an organization resist change. Caterpillar.. e. has commented as follows: “Nothing fails like success. 2. Zerox or nearer home-TI cycles. millstones and routines. This is the reason why many old industrial houses are languishing far behind and their places are being taken away by newer organizations. resource limitations. Whether it is IBM. Feeling of Outside Interference: A change brought about by the change agent is considered to be interference in the working of people. It a change is required in these aspects. This phenomenon is heightened if the change agent belongs to another social class. For example. For example. If the organization is not fully equipped for meeting such demands. sunk cost. change initiated by managers affecting workers. stability of systems. Many powerful organizations of the past have failed to change and they have developed into routines. if new . and inter-organizational agreement. these organizations start falling. a professor of strategic leadership who is considered to be a management Guru. resources and processes of the most successful companies have in the past ossified into clichés. an organization has to adapt to its environment but the adaptation has its own cost. 1.g. Stability of Systems: The organization may design a system through which it may derive many benefits. 3.2. Since these organizations have achieved success by following a particular set of management practices. values. all these companies have been victims of corporate disease. Digital Equipment Corporation.

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

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

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

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

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

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

psychological factors. that is. For instance. Psychological factors 3. Economic factors. implicit. Changes may be influenced by external and internal factors. social factors. through group dynamics. Explain the nature of change? 2. or deferred. Organizational change 2. group resistance and vested interests. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. It is easiest for management to deal with resistance when it is overt and immediate. a change is proposed and employees quickly respond by voicing complaints. 10. It implies a new equilibrium between different components of the organization.8 Terminal Questions 1. 10. Resistance can be overt. Reference: . Discuss the methods of reducing resistance to change.7 Summary Change is inevitable. at the level of individual and at the level of group. Participation Answers to TQs: 1. Problem of overcoming resistance to change can be handled at two levels. Refer section 10. Organizational change is the alteration of work environment in an organization. People tend to resist many types of changes because new habits or sacrifices are required. Refer section 10. engaging in a work showdown.10. both at the formal and informal levels. Why do organizations resist change? 3.4 3. threatening to go on strike.9 Answers to SAQs and TQS SAQs: 1. Refer section 10. immediate.6.2 2. or the like.

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