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

Integrative Force: The essence of management is integration of human and other resources to achieve the desired objectives. directing and controlling. Goal-oriented: Management is a purposeful activity. All these resources are made available to those who manage. 4. 1. It is imperative that the organizational goals must be well-defined and properly understood by the mangers at various levels.course. Distinct Process: Management is a distinct process consisting of such functions as planning. Intangible Force: Management has been called an unseen force. And poor management is most often due to both inefficiency and ineffectiveness or to effectiveness achieved through inefficiency. These factors do not by themselves ensure production. although they can’t observe it during operation. 2. These functions are so interwoven that it is not possible to lay down exactly the sequence of various functions or their relative significance. capital and materials. buoyant spirit and adequate work output. the process of management involves decision-making and putting of decisions into practice. It is the force which assembles and integrates other resources. Managers also seek to harmonize the individuals’ goals with the organizational goals for the smooth working of the organization. organizing. One may not see with the naked eyes the functioning of management but its results are apparently known. Thus. feeling of management is result-oriented. 5. They must have the necessary ability and skills to get work accomplished through the efforts of others. . high efficiency is associated more typically with high effectiveness. management is an essential ingredient of an organization. It is the most critical input in the success of any organized group activity. The success of management is measured by the extent to which the organizational goals are achieved. 6. Thus. labour. experience and management principles for getting the results from the workers by the use of non-human resources. They must motivate the subordinates for the accomplishment of the tasks assigned to them. Results through Others: The managers cannot do everything themselves. Its presence is evidenced by the result of its efforts-orderliness. People often remark of the effectiveness (or ineffectiveness) of management on the basis of the end results. In essence. Managers apply knowledge. 3.3 Characteristics of Management Management is a distinct activity having the following salient features or characteristics: 1. staffing. Economic Resource: Management is one of the factors of production together with land. they require the catalyst of management to produce goods and services required by the society. labour and capital. namely. informed employees. It co-ordinates the efforts of workers to achieve the goals of the organization.

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

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

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

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

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

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

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

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

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

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

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

Explain its characteristics. Managers perform different roles to discharge their responsibilities. middle and lower. __________is principally the task of planning. materials. It is the management which transforms physical resources of an organization into productive resources. Human skills are important at all managerial levels. There are three levels of management-top. 1. 1. ___________. Still management is not completely a profession. Management is largely found at the middle and lower levels and administration is found at the higher levels. Lower level managers require and use a greater degree of technical skill and managers at higher levels use a greater degree of conceptual skill. machinery and methods or ways of doing things) depends to a great extent on the quality of management. 3.9 Terminal Questions 1. 2. co-ordinating. 1. 2. counseling and effective leadership. Define management. Management creates ________ and motivates employees to work harder and better by providing necessary guidance. Management 2. teamwork . motivating and controlling the efforts of others towards a specific objective.government offices.8 Summary Management is concerned with getting things done through other people. Self Assessment Questions in the 1. public organisations sector and non-business private sector.10 Answers to SAQs and TQs SAQs: 1. Money. Discuss the importance of management. organisations. Bring out the difference between Administration and Management. _________. Five M’s of management (________. manpower 3. 3.

Refer section 1.8 Summary 2.4 Organizing 2.5 3. Refer section 1.9 Terminal Questions 2.2.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .1. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.10 Answers to SAQs and TQs .5 Staffing 2.3 Planning 2.Answers to TQs: 1.3 2.2 Process of Management 2.6 Directing 2.7 Motivating Self Assessment Questions 2. Refer section 1.1 Introduction Objectives 2.

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

so. Decision – Making Taking decisions is a process. the decision to change the design of a product. overall goals. 2. it would be correct to assume that an objective is what you want to accomplish.3 Planning It involves the process of defining goals. 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. or where you want go to. Effective planning enables an organization adapt to change by identifying opportunities and avoiding problems. All levels of management engage in planning in their own way for achieving their preset goals. say a passenger car. should precede a good deal of research involving market surveys. It provides the direction for the other functions of management and for effective teamwork. However. Planning also enhances the decisionmaking process. Every organization needs to plan for change in order to reach its set goal. what distinguishers policies form objectives is that you first decide the objective. Objectives are the ends. Thus. planning is often referred to as strategic in nature and also termed as strategic planning. and then set out the method for achieving it. The tasks of the strategic planning process include the following steps: Define the mission: A mission is the purpose of the organization. cost structure and so on. thus. fuel and machine efficiency. planning begins with clearly defining the mission of the organization. Therefore. The mission statement is broad. In the football field. An explicit mission guides employees to work independently and yet collectively toward the realization of the organization’s potential. while a policy. general strategies. a process in which one chooses a course which one thinks is the best. and allocating resources. driving comfort. and developing plans to integrate and coordinate activities. studies on passenger comfort. 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. Planning in order to be useful must be linked to the strategic intent of an organization. policies are the means to achieve those ends. 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. summarizing what the organization does. The mission statement may be accompanied by an overarching . establishing strategies for achieving these goals.

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

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

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

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

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

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

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

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

2. Reference 2. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3.5 3. Reference 2. SWOT 3.10 Answers to SAQs and TQs SAQs: 1. Explain Staffing in detail 3.9 Terminal Questions 1. Reference 2. Follett 2. Write a short not on directing.1 Introduction Objectives . 2.6 Copyright © 2009 SMU Powered by Sikkim Manipal University . What is planning? 2.3 2. Staffing Answers to TQs: 1.

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.

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

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

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

4. OD views organization improvement as an ongoing process in the context of a constantly changing environment. collaborators. Thus. 8. they are ongoing. OD takes a developmental view that seeks the betterment of both individuals and the organization. so that change is easily observed. OD relies on an action research model with extensive participation by client system members. rather than focusing attention on individuals. 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. Comprehensive Change: OD efforts focus on comprehensive change in the organization. Teams of all kinds are particularly important for accomplishing tasks and are targets for OD activities. interactive. 4. so the methods of attaining these goals should also change. Participation and involvement in problem-solving and decision-making by all levels of the organization are hallmarks of OD. 2. .3 Characteristics of OD 1. 7. temporary. rather. and co-learners with the client system. OD practitioners are facilitators. 3. This ‘planned’ emphasis separates OD efforts from other kinds of more haphazard changes that are frequently undertaken by organizations. OD efforts are not one-shot actions. An overarching goal is to make the client system able to solve its problems on its own by teaching the skills and knowledge of continuous learning through self-analytical methods. OD focuses on the elevation of an organization to a higher level of functioning by improving the performance and satisfaction. OD focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. Rather. 3. Attempting to create “win-win” solutions is standard practice in OD programs. The concept of comprehensive change is based on the systems concept-open. 10. dynamic and adaptive system. OD focuses on total system change and views organizations as complex social systems. Planned Change: OD is a strategy of planned change for organizational improvement. It recognizes that organizational goals change. and cyclic processes. 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. 9. Long-range Change: OD efforts are not meant for solving short-term. or isolated problems. 5.3. 6.

Participation of Change Agent: Most OD experts emphasize the need for an outside. second. the element which links Organization Development with the scientific method of inquiry and. (b) The interventions are primarily directed towards problems and issues identified by the client group. Although Organization Development Programmes vary. This is done to arrive at certain desirable outcomes that may be in the form of increased effectiveness. and adaptability for the organization as a whole. . OD attempts to provide opportunities to be ‘human’ and to increase awareness. identity. or catalyst. collects relevant data. evaluates these data. 7. it is a programme with a purpose that is to guide present and future action. takes actions for intervention. Action research is the basis for such intervention. further more. (b) Problems of human satisfaction and development. problem-solving. growth. The relationship involves mutual trust. He designs intervention strategies based on these data. 6.4 Categories of OD Programmes In general. rather. and mutual influence. practitioners and the client laymen. Two important elements of Organization Development are. He shares a social philosophy about human values. A change agent in OD process does not just introspect the people and introduce changes. Organization Development is inextricably linked with action. and revitalization. the importance and centrality of goals and objectives and the different role requirements of the consultant change agent vis-à-vis the clients. At the individual level. first. and integrate individual and organizational goals. 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’. There is a close working relationship between the change agent and the target organizational members to be changed. 3. all types of experience requiring Organization Development efforts may be grouped into three categories: (a) Problems of destiny.5. joint goals and means. They discourage ‘do it yourself’ approach. yet following features are common to most of the programmes: (a) The client is a total system or major subunit of total system. Emphasis on Intervention and Action Research: OD approach results in an active intervention in the ongoing activities of the organization. third party change agent. participation. the collaborative relationships between the scientists. and (c) Problems of organizational effectiveness. The change agent is a humanist seeking to get a humanistic philosophy in the organization. he conducts surveys. Key areas are the normative type of model. and then.

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

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

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

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

Explain its salient features. Who is associated with the “Learning Organizations”? 5. Organization development should be led and supported by –––––––. Define OD. Explain the various characteristics of OD. 2. ––––––––– is a process which includes leadership behaviours and human resource practices. Empowerment . State the various roles of OD. But OD aims at changing the entire organizational climate where the managers work.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. Top management 2. _____________is a short-term strategy. 3. OD is the ultimate remedy for organizational improvements and developments. There is no ‘quick fix’ to organizations’ problems. 2. 5. The participative. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. Management development aims at developing the managers individually. OD focuses on culture and processes. collaborative. problem-focused ‘nature of OD’ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. 3. 4. What are the problems involved in the implementation of OD? 3. 3. Distinguish between ‘organizational development’ and ‘management development’.Self Assessment Questions 1. 4. 3.10 Terminal Questions 1. ––––––– is associated with “Liberation Management”. Tom Peters 3.11 Answers to SAQs and TQs SAQs: 1.

Refer section 3.Organization Development – Interventions Structure: 4. Refer section 3.2 2. Peter Senge 5. MU0002-Unit-04.4 Grid Training 4.4.5 Leadership Development 4.3 3.6 4.Organization Development – Interventions Unit-04.1 Introduction Objectives 4. Refer section 3.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 3.6 Team-building .7 5. Management development Answers to TQs: 1. Refer section 3.2 Survey Feedback 4.3 Process Consultation 4.

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

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

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

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

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

therefore. The individuals try to learn to become managers by practice. Managerial grid: It covers various aspects of assessing managerial styles. Each group may be given assignment to evolve strategy for making ideal organization with the help of the consultant. The members of the organization are trained for achieving this excellence. The thrust is on moving groups from conflict to co-operation. objective-setting. the focus is on inter-group behaviour and relations. and alike.1. grid training is a non-rigorous method. Furthermore. The strategy is then implemented. Implementing the Ideal Strategic Model: The implementation stage includes the building of the organization on the model of ideal organization on the basis of concepts developed under stage 4. in spite of these criticisms. They have maintained that “managerial and team effectiveness can be taught to managers with outside assistance. the various programmes may be redesigned. 4. Grid training programme is criticized on the basis that it lacks contingency approach and. Inter-group Development: At this phase. Action steps to move towards the ideal are developed and assigned to individuals who may be engaged in building co-operative inter-group relationships. The skills relating to planning. 6. the various efforts from phase 1 to phase 5 are evaluated and critical analysis is made. Systematic Critique: In this stage. Teamwork Development: The focus in this stage is to develop teamwork by analyzing team culture. Evaluation of Grid Training Most of the support of grid training has come from its originators-Blake and Mouton. communication skills. 5. Further. 2. The action is designed to identify the characteristics of the ideal organization. some of them have not supported the claims made by Blake and Mouton. and teamwork. it discounts reality. 4.5 Leadership Development . traditions. The analysis will bring out the shortcomings that may be there. In this light. grid training has some positive contributions for organizational effectiveness. the focus shifts to the total organization and to develop skills necessary for organizational excellence.” In a later work. problem-solving. and problemsolving are also developed. Developing Ideal Strategic Corporate Model: At this stage. 3. they maintained the same stand. Though research studies on the application of grid training are not many. Each group separately analyses the ideal inter-group relations. it appears that this type of educational strategy can help to make significant contributions to organizational effectiveness.

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

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

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

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

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

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

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

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

Assumptions.12 Answers to SAQs and TQs SAQs: 1. Blake and Mouton. Social loafing Answers to TQs: 1.4 2.3. Refer section 4. Refer section 4. Refer section 4.2 3. Data collection 2. and Beliefs in Organization Development Structure: 5. What is team-building? What are the stages of life cycle of a team? 4. MU0002-Unit-05-Values.6 4. 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . 3. Beliefs in Organization Development Unit-05-Values. Assumptions. Explain Change agents and discuss the role of change agents in detail. Refer section 4.2 Definitions and .1 Introduction Objectives 5.

2 Implications for Dealing with Groups 5.5. assumptions. and they continue to evolve as the field itself evolves.1 Implications for Dealing with Individuals 5. · State the implications of OD values and assumptions. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers.4 Early Statements of OD Values and Assumptions 5. beliefs and assumptions.3 Chronology of Events in Management and Organization Thought 5.5. and beliefs constitutes an integral part of organization development. . 5.8 Answers to SAQs and TQs 5. it is a cognitive fact for the person. Objectives: After studying this unit.6 Summary Self Assessment Questions 5. · Give the statement of OD values and assumptions.7 Terminal Questions 5. you will be able to: · Explain the meaning of values.2 Definitions A belief is a proposition about how the world works that the individual accepts as true.5. beliefs and assumptions.1 Introduction A set of values. shaping the goals and methods of the field and distinguishing OD from other improvement strategies. Most of these beliefs were formulated early in the development of the field.5.5 Implications of OD Values and Assumptions 5. · List the chronology of events of values.3 Implications for Designing and Running Organizations 5.

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

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

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

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

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

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

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

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

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

F. Define concepts. Bureaucracy 4.1. 2. Cognitive 2. Refer section 5. __________ is associated with scientific management.3 3. 5. What was the outcome of Hawthorne Experiments? 4.3 . Values. Taylor 3. 2. State the assumptions of Theory X and Theory Y.2 2.8 Answers to SAQs and TQs SAQs: 1.7 Terminal Questions 1. Hawthorne experiments 5. _______________ gave theory X and theory Y. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. 4. The outcome of –––––––– was that people were not cogs and organizations were not machines. The concept of –––––––––– was introduced by MaxWeber. 3. 5. and assumptions are all –––––––––– facts. beliefs and assumptions. Refer section 5. Taylor’s principles of scientific management. W. values. Refer section 5.W. 3. Douglas McGregor Answers to TQs: 1. Write a note about F. 5. beliefs.

2. Refer section 5. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.3 Socio-technical Theory and Open Systems Planning 6.3.4.2.3 Systems Theory 6.3 5.4 Open Systems Thinking 6.2 Congruence among System Elements 6.2.2 Models and Theories of Planned Change 6.1 The Nature of Systems 6.3 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 Beyond the Quick Fix 6. Refer section 5.1 Introduction Objectives 6.3.3.3 The Burke-Litwin Model of Organizational Change 6.3.4 Participation and Empowerment .1 Kurt Lewin and Friends 6.2.4 Porras and Robertson Model of Organizational Change 6.

you will be able to: · Explain various models and theories of planned change.12 Answers to SAQs and TQs 6. In this discussion. Objectives: After studying this unit.10 Summary 6. Here we describe what we believe are the most important underpinnings for the field.9 Action Research Self Assessment Questions 6.6 Parallel Learning Structures 6. We will examine the following concepts: . · Describe the parallel learning structures. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs. · Explain the terms ‘participation’ and ‘empowerment’. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning. art and science which form the knowledge base upon which OD is constructed.11 Terminal Questions 6.5 Teams and Teamwork 6.8 Applied Behavioural Science 6. · Realize the importance of teams and teamwork. · Explain systems theory. · Explain normative-re-educative strategy of changing The knowledge base of OD is extensive and is constantly growing.6.7 A Normative – Re-educative Strategy of Changing 6.1 Introduction This unit describes the foundations of organization development theory and practice.

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

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

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

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

then moving to the team-building track. and . First-order change goes by many different labels: transactional. then moving to the management skills track. or discontinuous change. radical. and so forth. or continuous change. and so forth. organizational culture is defined as deep-seated assumptions. departments. with an increasing emphasis on second-order transformational change. and Xerox with good results. friendly or unfriendly. Second-order change goes by many different labels: transformational. hard-working or easy-going. and its holistic view of organization change and development. OD programs are directed toward both first. Eastman Kodak. 6.3 The Burke-Litwin Model of Organizational Change The next model to be examined is the Burke-Litwin model of individual and organizational performance. General Foods. An OD consultant implements the tracks in a phased sequence. and difficult to change. These perceptions are relatively easy to change because they are built on employees’ reactions to current managerial and organization practices. Organizational climate is defined as people’s perceptions and attitudes about the organizationwhether it is a good or bad place to work. On the other hand. some features of the organization change but the fundamental nature of the organization remains the same. its identification of the five tracks as critical leverage points. The premise of the BurkeLitwin model is this: OD interventions directed toward structure. and co-operative team efforts within and among all work groups. management practices.2. work groups. incremental. evolutionary. often unconscious. the nature of the organization is fundamentally and substantially altered – the organization is transformed. revolutionary. One likes this model because of its comprehensive nature.and second-order change. Kilmann has tested his model at AT&T. In second-order change. developed by Warner Burke and George Litwin. In first-order change. The model distinguishes between organizational climate and organizational culture. values. the use of updated management skills. and beliefs that are enduring.The strategy-structure track develops either a completely new or a revised strategic plan for the firm and then aligns divisions. Changing culture is much more difficult than changing climate. TRW. beginning with the culture track. This model shows how to create first-order and second-order change (which the authors call “transactional change” and “transformational change”). jobs. The reward-system track establishes a performance-based reward system that sustains all improvements by officially sanctioning the new culture. Ford General Electric. adaptive. Westinghouse. and all resources with the new strategic direction.

Fig.1: The Transactional Factors Involved in First – Order Change . Transactional leadership is sufficient for causing first-order change. individual and organizational performance.systems (policies and procedures) result in first-order change. Changing structure. The model also makes a distinction between transactional and transformational leadership styles. and organization culture result in second-order change. Transactional leadership is required to make this change in organizational climate." Transformational leadership embodies inspiration which leads to new heights of performance." 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 not. Transformational leadership is required for causing second-order change. 6. Now let us look at the Burke-Litwin model. Following figure shows the factors involved in first-order (transactional) change. We will do so in several steps. in turn. Transactional leaders are "leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements. which change motivation and. interventions directed toward mission and strategy. management practices. and systems cause changes in work unit climate. leadership. 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.

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

OD interventions that focus on goals. It is how OD works. Interventions that focus on culture. Fig. required. rewarded). management style. Following figure shows the work setting in the larger organizational framework. The basic premise is that OD interventions alter features of the work setting causing changes in individuals’ behaviours. it is described in a discussion by Porras and Peter Robertson. which determine organizational performance and individual development. social factors.4 Porras and Robertson Model of Organizational Change Jerry Porras and his associates developed a model of how organization development works. and rewards will affect organizing arrangements.3: The Burke Litwin Model of Organizational Performance and Change 6.4: Organizational Work-Setting Factors This model is extremely useful for OD practitioners and organizational leaders. 6. For example. and interaction processes will affect social factors. This model shows how OD interventions can be linked to factors in the work setting. physical setting. 6. Organizational change occurs only when individuals change their behaviour. which influence on-the job behaviours. and technology. . The work setting plays a central role in this model and consists of four factors: organizing arrangements. which in turn lead to individual and organizational improvements.Fig.2. according to Porras and Robertson. Keep this framework in mind as you read the units on OD interventions because all interventions target one or more factors shown in figures. The premise modeled here is that work setting factors influence organizational members’ cognitions (they learn what is expected. Interventions that focus on job design and work flow design will affect technology. and these behaviour changes occur when elements of the work setting have been modified by OD interventions. strategies.

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

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

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

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

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

this combination is often used in designing high-performance organizations. 6.4 Participation of Empowerment One of the most important foundations of organization development is a participation/ empowerment model. For example. changing one part of a system influences other parts. and systems thinking. Viewing organizations from this perspective has several consequences. but seen in relation to other issues. systems thinking. there is no motivation to look at how the disciplines interrelate. according to Peter Senge. It keeps them from being separate gimmicks or the latest organization change fads. OD practitioners expect multiple effects. because most phenomena have more than one cause. And fifth. Senge believes that five disciplines must be mastered to create a learning organization: personal mastery. 6. team learning. Participation in OD programs is not restricted to elites or the top people. and incidents are not viewed as isolated phenomena. a systems approach encourages analysis of events in terms of multiple causation rather than single causation.3) Developing action plans to ensure that a desirable future occurs. Of all these disciplines. mental models.3. Learning organizations can cope effectively with rapidly changing environmental demands. one changes the system. By enhancing each of the other disciplines. forces. building shared vision. systems theory pervades the theory and practice of organization development. This idea moves the practitioner away from analyzing historical events and toward examining contemporary events and forces. not just its component parts. it is extended broadly throughout the organization. from diagnosis to intervention to evaluation. to change a system. He says of systems thinking: “It is the discipline that integrates the disciplines. is the most important. from their activities. Third.4 Open Systems Thinking Open systems thinking is required for creating learning organizations. the fifth discipline. according to field theory (Kurt Lewin). Without a systemic orientation. not single effects. Second. Increased participation and empowerment . Fourth. issues. the forces in the field at the time of the event are the relevant forces for analysis. therefore. fusing them into a coherent body of theory and practice. it continually reminds us that the whole can exceed the sum of its parts. events and forces. Most OD practitioners engaged in redesign projects use a combination of socio-technical systems theory and open systems planning.” In conclusion. First. events.

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

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

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

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

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

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

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

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

1 2. Transactional change 4.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . Unfreezing 2. System 5. “Work teams are building blocks of organizational development. Refer section 6.2.4. Ralph Kilmann 3.2.12 Answers to SAQs and TQs SAQs: 1. MU0002-Unit-07-Organization Climate Unit-07-Organization Culture and Climate Structure: 7. Refer section 6. 6. Refer section 6.Refer section 6.2.3 4. Refer section 6. What are the features of systems theory of organizational development? 5. Synergy Answers to TQs: 1.2 3.1 Introduction Objectives 7.3 5.2 Characteristics of Organization Culture Culture and .” Comment on this statement.

5 Developing and changing Organization Culture Self Assessment Questions 7. but everyone knows it when they sense it. but also changing the corporate culture as well. 7.8 Answers to SAQs and TQs 7. you will be able to: · Understand Organization Culture. what members wear. Objectives: After studying this unit.3 Types of Organization Culture. what they brag about. Culture is comprised of the assumptions. Practitioners are coming to realize that. and validated enough to be taught to new members as the correct ways of perceiving. . Members of an organization soon come to sense the particular culture of an organization.7.1 Introduction Basically. and feeling in relation to these problems (Schein.6 Summary 7. etc. Comprehensively organization culture is the pattern of basic assumptions that is invented. – similar to what you can use to get a feeling about someone’s personality. norms and tangible signs (artifacts) of organization members and their behaviors. Culture is one of those terms that’s difficult to express distinctly. 1986). or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. · Describe different types of Organization Culture · Explain organization culture and effectiveness. the culture of a large. discovered. values. despite the best-laid plans. You can tell the culture of an organization by looking at the arrangement of furniture.7 Terminal Questions 7. For example. organizational change must include not only changing structures and processes. The concept of culture is particularly important when attempting to manage organization-wide change. Martin and Meyerson. for-profit corporation is quite different than that of a hospital which is quite different than that of a university.4 Organization Culture and Effectiveness 7. organizational culture is the personality of the organization. thinking.

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

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

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

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

all in this core group believe that the idea is a good one. then such rapid change can be welcomed and accommodated with as little disruption and as few problems as possible. Changing Organizational Culture Sometimes an organization determines that its culture has to be changed. or even customers may support the existing culture. Where does the power and managerial decision making really reside? Corporate cultures range from autocratic extremes to total employee empowerment. and so on. 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. and is worth the investment of time. At this point. relationships. 2. However. roles. the industry in which the partners come from and now reside. and a common history begins to be built. and energy that will be required. money. The founder brings in one or more other key people and creates a core group that shares a common vision with the founder. Structure. Politics. others are brought into the organization. New product development and information technology is changing so rapidly that any example would be soon out-of –date. incorporating. 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?. is workable. These factors from the two cultures include the size. 3. Staffs. locating space. In addition. age. and whether products and/or services are involved. That is. A single person (founder) has an idea for a new enterprise. 2. management. and how this plays out among the partners will be important to cultural compatibility. The founding core group beings to act in concert to create an organization by raising funds. obtaining patents. Predictable obstacles include entrenched skills. and history of two firms. powerful stakeholders such as unions. the current environmental context has undergone drastic change and either the organization must adapt to these new conditions or it may not survive. is worth running some risks for. if the appropriate organization culture is in place. and structures that work together to reinforce traditional cultural patterns. the geographic location. For example. Even through some firms have had a culture in place to anticipate change. 4.1. . building.

Simple guidelines such as the following can be helpful. Take out all trappings that remind the personnel of the previous culture. 2. Stay the course by being persistent.6 Summary . commitment. These emotions will be a major input into the clash or compatibility of the two cultures. ________cultures are outward looking. Guidelines for change Despite the significant barriers and resistance to change. Self Assessment Questions 1. organizational cultures can be managed and changed over time. are particularly driven by results and are often very competitive. Make changes from the top down. attitudes. 1. 2. This attempt to change culture can take many different forms. 8. _____are the visible manifestations of culture as seen in the physical and social environment of the organization. Recruit outside personnel with industry experience. 9. ___________are those factors that influence the course of development within an organization and its results or accomplishment. Move quickly and decisively to build momentum and to defuse resistance to the new culture. so that a consistent message is delivered from all management team members. especially when making changes in rules and processes. 4. and patterns of daily behavior. habits. Expect to have some problems and find people who would rather move than change with the culture and. so that they are able to interact well with the organizational personnel. if possible. 5. Include employees in the culture change process. The personal feelings. 6. Assess the current culture. take these losses early. Emotions. the “culture contract” that individuals have bought into to guide their day-to-day thoughts. Set realistic goals that impact on the bottom line. 7. 7. 3. 3.3.

3. Refer section 7. Effectiveness of an organization can be increased through economic man approach and administrative man approach. Refer section 7.8 Answers to SAQs and TQs SAQs: 1. effectiveness through adaptive-coping cycle has been discussed. 7. intervening variables and end-result variables and there exists interrelationship among these variables.3 3. system-resource approach. and strategic constituencies approach. Market 3. Artifacts 2.goal approach. . Finally. Organizations to be successful must be efficient and effective. Causal variables Answers to TQs: 1. Factors in organizational effectiveness include casual variables. Refer section 7. 7. Explain the characteristics of organization culture. Briefly explain different types of organizational culture. Discuss the development and change of organizational development.2 2. Organizational effectiveness can be measured through various approaches. behavioural approach.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . 2.7 Terminal Questions 1.Organizational effectiveness is the degree to which organization is successful in accomplishing its goals.

As Warner Burke observes: "Organization development signifies change. In this unit. Politics and Organization Development Structure: 8. indisputable facts of organizational life.1 Introduction Objectives 8.7 Operating in a Political Environment 8. and for change to occur in an organization.8 Acquiring and using Power Skills Self Assessment Questions 8.9 Summary 8.3 Two Faces of Power 8. must be understood if one is to be effective in organizations.6 The Role of Power and Politics in the Practice of OD 8.Power.” Organization development has been criticized for not taking into account power in organizations. That criticism was essentially correct for many years although it is less valid .5 Organizational Politics Defined and Explored 8. power must be exercised.10 Terminal Questions 8.MU0002-Unit-08Power. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics.1 Introduction Politics and Power and politics.11 Answers to SAQs and TQs 8. Organization Development Unit-08. we examine power and politics in relation to organization development.4 Theories about the Sources of Social Power 8.2 Power Defined and Explored 8.

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

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

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

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

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

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

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

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

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

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

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

Power and politics are similar in nature. _____________ has identified two faces of power. –––––––– defined politics as the study of who gets what. Concluding Comments: In this unit. emotions or behaviour of people..9 Summary Power and politics are inseparable facts of organizational life. 2.10 Terminal Questions 1. Power can be either positive or negative. 8. arise from known conditions. 3. 4. collaborative work environment. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics. –––––––––– is made up of Charisma. Organizational politics is defined as the study of who gets what. Self Assessment Questions 1. when. when and how. Power based on the power-receiver having identification with the power holder is called ––– ––––––––. Power and politics are similar in nature. Define power in an organizational context and explain types of power. . 8. Methods for empowering others are the following: (1) involve subordinates in assigning work. 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. units or departments is most important in solving organizational problems. (3) reward and encourage others in visible and personal ways. (2) provide a positive. (4) express confidence (5) foster initiative and responsibility.several means of resisting others’ influence attempts such as confrontation and using countervailing power. 5. Organizational politics involve intentional acts of influence to enhance or protect the self-interest of individuals or groups. Organizational power is the ability of those who possess power to bring about the outcomes they desire. and are amenable to positive control. and (6) build on success. and are amenable to positive control. and how. Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another. reputation and professional credibility. –––––– is the intentional influence over the beliefs. we have examined power and politics with the goals of understanding the phenomena and deriving implications for OD practitioners. Strategic-contingency model of power asserts that power that accrues to the individuals. arise from known conditions.

Refer section 8. Refer section 8. Describe briefly various theories of power.1 Introduction .4 3. Personality Answers to TQs: 1. Explain the role of power and politics in the practice of OD. Referent power 4. 3.2 2. 8. Define organization politics.11 Answers to SAQs and TQs SAQs: 1. Identify the bases of individual power and the respective strategies for their success. 4.5 4. McClelland 3. Harold Lasswell 5.6 5.Refer section 8. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9.2.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 8. Refer section 8. 5. Power 2.

3 Socio Technical Systems 9.10 Summary 9.2 Meaning and Definitions 9. An organization development intervention is a sequence of activities.5 Quality Circles 9.7 Parallel Learning Structures 9. actions.Objectives 9. One important intervention technique is Technostructural interventions because these are related to technical and structural issues such as how to divide labour and how to coordinate department which is related to Restructuring organization.11 Terminal Questions 9. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design. Nothing is permanent except change because change is permanently changing.12 Answers to SAQs and TQs 9.4 Management By Objectives 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. In this dynamic and fluid environment.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival.8 Total Quality Management 9. events intended to help an organization improve its performance and effectiveness. These methods are receiving increasing attention in Organization Development.9 Reengineering Self Assessment Questions 9. Objectives: . organizational problems may repeat. These interventions vary from standardized program that have been developed and sometimes tailored program. These programs are derived from careful diagnosis.6 Quality of Work Life Projects 9.

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

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

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

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.

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

9. What are the advantages of structural interventions? 3.2 3.Refer section 9.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . provides relevant information to all employees. Intervention 2.12 Answers to SAQs and TQS SAQs: 1.circle represents a participative approach to employee involvement in problem solving and productivity improvement. ties reward to performance and increase workers knowledge and skills through extensive training. .5 4. Refer section 9. Write a short note on Total Quality Management. Refer section 9. It is also called continuous quality improvement. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. Explain Management By Objectives? 4. Discuss Socio Technical Systems? 2.11 Terminal Questions 1.3 2. Refer section 9. Quality circle Answers to TQs: 1. Drucker 3. TQM pushes decision making power downwards in the organization. 9.

6 Methods of Reducing Resistance to Change.1 Introduction Objectives 10.MU0002-Unit-10-Managing Organization Development Unit-10-Managing Change in Organization Development Structure: 10. 10. Objectives: . cope with the ongoing changes successfully in the first instance. Hence.5 Impact of Change on the Future Manager 10.1 Introduction Change in Organizations are increasingly realizing the fact that change is the price of the survival. In this dynamic and fluid environment.4 Causes for Resistance to Change.9 Answers to SAQs and TQs 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 10.2 Nature of Change 10. and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other. organizational problems may repeat.8 Terminal Questions 10.7 Summary 10. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented). Nothing is permanent except change because change is permanently changing.3 Resistance to Change 10.

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

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

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

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

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

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

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

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

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

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

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

8 Terminal Questions 1. group resistance and vested interests. Refer section 10. or deferred. People tend to resist many types of changes because new habits or sacrifices are required. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. that is. Psychological factors 3. It implies a new equilibrium between different components of the organization.9 Answers to SAQs and TQS SAQs: 1. Refer section 10. social factors. Participation Answers to TQs: 1. Changes may be influenced by external and internal factors.2 2. 10. immediate. psychological factors. Why do organizations resist change? 3.4 3. threatening to go on strike. through group dynamics.10. Economic factors. For instance. Problem of overcoming resistance to change can be handled at two levels. Explain the nature of change? 2.6. Discuss the methods of reducing resistance to change. Refer section 10. 10.7 Summary Change is inevitable. engaging in a work showdown. Organizational change is the alteration of work environment in an organization. Organizational change 2. a change is proposed and employees quickly respond by voicing complaints. Resistance can be overt. implicit. Reference: . at the level of individual and at the level of group. It is easiest for management to deal with resistance when it is overt and immediate. both at the formal and informal levels. or the like.

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