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

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

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

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

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

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

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

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

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

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

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

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

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

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

5 Staffing 2.1.9 Terminal Questions 2.7 Motivating Self Assessment Questions 2. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.5 3.1 Introduction Objectives 2. Refer section 1. Refer section 1.2 Process of Management 2.3 2.10 Answers to SAQs and TQs .4 Organizing 2.3 Planning 2.6 Directing 2.8 Summary 2.Answers to TQs: 1.2. Refer section 1.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .

There is a degree of overlap between the two.1 Introduction Follett (1933) defined management as "the art of getting things done through people”. One can also think of management functionally. Controlling However. 1949): 1. the two are not quite the same. You might well ask what the need for a policy is when objectives are already defined. as the action of measuring a quantity on a regular basis and of adjusting some initial plan.2.2 Management Process Peter Drucker said: “Management is doing things right. Policy Formulation We have noted earlier that all organizations have well-defined goals and objectives. Management functions are as follows (Fayol. Coordinating 5. It is difficult to say where objectives end and policies begin. leadership is doing the right things“. Organizing 3. · Explain Planning. Through leadership and management often overlap. Management is about accomplishing a goal efficiently. Motivating. leadership is about setting the desirable goals. Directing. Even . since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent. Planning 2. in recent time. Commanding 4. Organizing. management functions have been regrouped into four categories. Staffing. 2. you will be able to: · Define Management process. Objectives: After this studying this unit. · Explain different functions of management Process.

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

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

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

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

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

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

2. sex. 5. Essence of performance: Directing is the process around which all performances revolve. thirst. humanness and psychological health a person will show. Pervasive function: Directing is a managerial function performed by all mangers at all levels of the organization. and the Two-Factor theory.7 Motivating Motivating In the 1950s three specific theories were formulated and are the best known: Hierarchy of Needs theory. Direction has dual objectives. shelter. nothing or at the best very little would be accomplished”. As Theo Haimann puts it. the number of subordinate he has and the other duties he is expected to perform. from the basic to the complex. The further they progress up the hierarchy. without guiding and overseeing subordinates. guide. organizing and staffing on one hand and controlling on the other. Continuous function: Directing is a continuous process. Nature of Directing The nature of directing can be discussed under the following: 1. only unsatisfied needs can influence behavior. The five needs are: · Physiological: Includes hunger. It emphasizes that a subordinate is to be directed by his own superior only. it aims at getting things done by subordinates and. the more individuality. Theories X and Y. Direction imitates at the top level in the organization and follows to bottom through the hierarchy. “without the issuance of directives. Directing is the process around which all performances revolve. 3.4. The needs are arranged in order of importance. 4. satisfied needs cannot. On the one hand. proposed by Maslow (1943). will vary depending upon his level. to provide superiors opportunities for some more important work which their subordinates cannot do. teach. The amount of time and effort an executive spends in directing however. The manager never ceases to direct. and other bodily needs . It is an important function of management: Directing is an important management function which provides a connecting link between planning. human beings have wants and desires which influence their behaviour. Maslow’s Hierarchy of Needs Theory According to this theory. The person advances to the next level of needs only after the lower level need is at least minimally satisfied. 2. coach and supervise his subordinates. on the other.

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

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

3 2. Reference 2. What is planning? 2.1 Introduction Objectives . 2. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3.2. SWOT 3. Write a short not on directing.6 Copyright © 2009 SMU Powered by Sikkim Manipal University .5 3.9 Terminal Questions 1.10 Answers to SAQs and TQs SAQs: 1. Follett 2. Explain Staffing in detail 3. Reference 2. Reference 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.

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

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

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

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

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

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

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

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

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

2. There is no ‘quick fix’ to organizations’ problems. problem-focused ‘nature of OD’ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. OD focuses on culture and processes. OD is the ultimate remedy for organizational improvements and developments. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. _____________is a short-term strategy. State the various roles of OD. Tom Peters 3. 4. ––––––––– is a process which includes leadership behaviours and human resource practices. Empowerment . ––––––– is associated with “Liberation Management”. Define OD. Distinguish between ‘organizational development’ and ‘management development’. 5. 3. Who is associated with the “Learning Organizations”? 5. But OD aims at changing the entire organizational climate where the managers work. What are the problems involved in the implementation of OD? 3. Top management 2. Explain the various characteristics of OD. Management development aims at developing the managers individually. 2. 4. Explain its salient features. Organization development should be led and supported by –––––––.11 Answers to SAQs and TQs SAQs: 1. The participative.Self Assessment Questions 1. 3. 3. collaborative.10 Terminal Questions 1.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. 3.

6 4.7 5. Management development Answers to TQs: 1.Organization Development – Interventions Unit-04. Refer section 3. Refer section 3. Refer section 3.1 Introduction Objectives 4.6 Team-building . Peter Senge 5.Organization Development – Interventions Structure: 4. Refer section 3.5 Leadership Development 4. MU0002-Unit-04.2 Survey Feedback 4.4 Grid Training 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .3 Process Consultation 4.2 2. Refer section 3.4.3 3.

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

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

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

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

To study the organization as an interactive system and apply techniques of analysis in diagnosing its problems. However. 6. The grid organization development consists of six phases. he assists the organizational members to incorporate those changes. both these problems may be overcome by engaging a suitable consultant and developing willingness among the members for change. P. It is a comprehensive and systematic OD programme which aims at individuals. group. From this point of view. Though he is involved only in suggesting the various changes in the processes. coaching. enabling individuals and groups to assess their own strengths and weaknesses. However. feedback. inter-group. To evaluate the styles of leadership and techniques of participation to produce desirable results. and/or structural change. Evaluation of Process Consultation: Process consultation is quite in-depth activity of OD in which the consultant plays a major role. 3. the consultant disengages from the client organization by mutual agreement but leaves the door open for future involvement. Reduce Involvement and Terminate: When the work of P. and the organization as a whole. knowledge. In the review of various P. Process of Grid Training The basic content of grid organization development is managerial grid as discussed. To understand the importance and rationale of systematic change.C is very effective intervention for organizational improvement. One basic reason for this phenomenon may be the consultant’s inability to steer the organization out of troubles. 4.C is also not free from criticisms. P. significant correlation between the outcomes has not been found. and total organizational levels. Its specific objectives are as follows: 1.5. Intervene: At this stage.C programmes. like other OD intervention techniques.4 Grid Training Grid training is basically based on grid organization development developed by Blake and Mouton. It utilizes a considerable number of instruments.C is completed. the consultant intervenes in the organizational processes by using different interventions like agenda-setting. 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. 2. . The whole orientation is to develop managerial style through the application of behavioural science knowledge. and processes necessary for effectiveness at the individual. focuses on skills. groups.

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

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

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

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

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

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

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

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

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

4 2. Assumptions.1 Introduction Objectives 5.6 4. 3. 4. Assumptions.2 3.3.2 Definitions and . What is team-building? What are the stages of life cycle of a team? 4. Beliefs in Organization Development Unit-05-Values. Refer section 4. MU0002-Unit-05-Values. and Beliefs in Organization Development Structure: 5. Refer section 4. Refer section 4. Refer section 4. Data collection 2.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Social loafing Answers to TQs: 1. Blake and Mouton. Explain Change agents and discuss the role of change agents in detail.12 Answers to SAQs and TQs SAQs: 1.

· State the implications of OD values and assumptions. shaping the goals and methods of the field and distinguishing OD from other improvement strategies.4 Early Statements of OD Values and Assumptions 5.3 Implications for Designing and Running Organizations 5.5.5 Implications of OD Values and Assumptions 5. 5.2 Implications for Dealing with Groups 5.1 Introduction A set of values.7 Terminal Questions 5.5. and beliefs constitutes an integral part of organization development. · Give the statement of OD values and assumptions.5. beliefs and assumptions. Most of these beliefs were formulated early in the development of the field.3 Chronology of Events in Management and Organization Thought 5. beliefs and assumptions. .5.6 Summary Self Assessment Questions 5. · List the chronology of events of values. you will be able to: · Explain the meaning of values. assumptions.2 Definitions A belief is a proposition about how the world works that the individual accepts as true.8 Answers to SAQs and TQs 5. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers.1 Implications for Dealing with Individuals 5. and they continue to evolve as the field itself evolves. Objectives: After studying this unit. it is a cognitive fact for the person.

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

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

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

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

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

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." People affected by a change must be allowed active participation and a sense of ownership in the planning and conduct of the change. toward seeing them as being in process. An always relevant change goal is the reduction of inappropriate competition between parts of the organization and the development of a more collaborative condition. 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. . and individuals continuously manage their affairs against goals. Controls are interim measurements. 6. One goal of a healthy organization is to develop generally open communication. presented their view of OD values in a 1969 article. director of organization development. Organizations. · Away from utilizing an individual primarily with reference to his or her job description toward viewing an individual as a whole person. · Away from maskmanship and game-playing toward authentic behaviour. · Away from resisting and fearing individual differences toward accepting and utilizing them. a professor and Sheldon Davis. 3. 4. sub-units of organizations. Robert Tannenbaum. rather than in a particular role or level of hierarchy. · Away from distrusting people toward trusting them.2. · Away from walling off the expression of feelings toward making possible both appropriate expression and effective use. · Away from use of status for maintaining power and personal prestige toward use of status for organizationally relevant purposes. · Away from avoidance of negative evaluation of individuals toward confirming them as human beings. Decision-making in a healthy organization is located where the information sources are. 5. and confidence between and across levels. · Away from avoiding facing others with relevant data toward making appropriate confrontation. mutual trust. "People support what they help create. · Away from a view of individuals as fixed.

challenge. give responsibility. collaboration and co-operation. and arbitrary management practices as well as the dysfunctions of bureaucracies. permit failure. · Away from a primary emphasis on competition toward a much greater emphasis on collaboration.5 Implications of OD Values and Assumptions Let us examine specific assumptions and their implications for organization leaders and members. These values and assumptions may not seem profound today. support. autocratic. open communication. We answer the question: What are some of the implications of OD assumptions and values for dealing with individuals. appropriate uses of power. and are capable of making.2 Implications for Dealing with Groups . 5.5. The democratic values prompted a critique of authoritarian. The implications of these two assumptions are straightforward: Ask. set high standards. Most people want to develop their potential. a greater contribution to attaining organization goals than most organizational environments permit. The humanistic values prompted a search for better ways to run organizations and develop the people in them. The first assumption is that most individuals have drives toward personal growth and development if provided an environment that is both supportive and challenging.5. groups. The people doing the work are generally experts on how to do it and how to do it better. The second assumption is that most people desire to make. participation and contribution by all organization members. listen.· Away from avoidance of risk-taking toward willingness to risk.1 Implications for Dealing with Individuals Two basic assumptions about individuals in organizations pervade organization development. but in the 1950s and 1960s they represented a radical departure from accepted beliefs and assumptions. Beliefs such as trust and respect for the individual. the legitimacy of feelings. decentralized decision making. · Away from a view of process work as being unproductive effort toward seeing it as essential to effective task accomplishment. remove obstacles and barriers. encourage risk-taking. 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. authentic interpersonal relations. and reward success. 5. give autonomy. and so forth were seldom espoused and rarely implemented in the vast majority of organizations at that time. A tremendous amount of constructive energy can be tapped if organizations realize and act on these assumptions. and organizations? 5.

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

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

F. beliefs.7 Terminal Questions 1. 2. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. What was the outcome of Hawthorne Experiments? 4. 4. Values. 3. 5. Refer section 5.W. __________ is associated with scientific management.3 .2 2. W. Refer section 5. The concept of –––––––––– was introduced by MaxWeber. Define concepts. Cognitive 2.1. Taylor’s principles of scientific management. 5. Refer section 5. The outcome of –––––––– was that people were not cogs and organizations were not machines. Douglas McGregor Answers to TQs: 1. Write a note about F. 3. _______________ gave theory X and theory Y.3 3.8 Answers to SAQs and TQs SAQs: 1. 2. values. beliefs and assumptions. Hawthorne experiments 5. Bureaucracy 4. State the assumptions of Theory X and Theory Y. Taylor 3. and assumptions are all –––––––––– facts. 5.

3 Systems Theory 6.1 Introduction Objectives 6.3 The Burke-Litwin Model of Organizational Change 6.3 5. Refer section 5.1 The Nature of Systems 6.2 Beyond the Quick Fix 6.4. Refer section 5.2.3.2.2.1 Kurt Lewin and Friends 6.3.3.4 Open Systems Thinking 6. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.2 Congruence among System Elements 6.4 Participation and Empowerment .2 Models and Theories of Planned Change 6.3 Copyright © 2009 SMU Powered by Sikkim Manipal University .3 Socio-technical Theory and Open Systems Planning 6.2.4 Porras and Robertson Model of Organizational Change 6.3.

1 Introduction This unit describes the foundations of organization development theory and practice.8 Applied Behavioural Science 6.6 Parallel Learning Structures 6. · Explain the terms ‘participation’ and ‘empowerment’.11 Terminal Questions 6. you will be able to: · Explain various models and theories of planned change. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs. · Realize the importance of teams and teamwork.12 Answers to SAQs and TQs 6.9 Action Research Self Assessment Questions 6. Here we describe what we believe are the most important underpinnings for the field. · Explain normative-re-educative strategy of changing The knowledge base of OD is extensive and is constantly growing. We will examine the following concepts: .5 Teams and Teamwork 6. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning.7 A Normative – Re-educative Strategy of Changing 6.10 Summary 6. art and science which form the knowledge base upon which OD is constructed.6. In this discussion. · Describe the parallel learning structures. Objectives: After studying this unit. · Explain systems theory.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

” 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. Thus. hopefully. The diagnostic typology allows the practitioner to know what category of situation he or she has examined. on the basis of which he or she prescribes a solution that. applied science or practice. OD practitioners know about these patterns through research and theory. or practice." applied science. for example. not the individual.Because norms are socially accepted beliefs held by groups about appropriate and inappropriate behaviours. Greenwood discusses the activities of the practitioner as follows: "The problem that confronts a practitioner is customarily a state of disequilibrium that requires rectification. Although human behaviour in organizations is far from an exact science. on the basis of selected variables. the major leverage point for change is at the group level. The principles of diagnosis and of treatment constitute the principles of practice. placing it in a classification scheme or typology. norms can best be changed by focusing on the group. Each type description of the diagnostic typology contains implications for a certain type of treatment. The aim of this discussion is to look briefly at how behavioural science knowledge becomes applied behavioural science knowledge." Both diagnosis and treatment consist of observing a situation and.e. re-establishes the equilibrium. and (2) "technology. The practitioner uses treatment as the empirical test of his diagnosis. On this point. thereby solving the problem. behavioural science knowledge. A conventional distinction is made between (1) "pure" or basic science. OD is the application of behavioural science knowledge. the object of which is knowledge to solve practical. This process is customarily referred to as diagnosis and treatment. failure negating it and thus requiring re-diagnosis. the object of which is knowledge for its own sake. i. with their elaborations and implications constitute practice theory. practices.” .. 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. success corroborating the diagnosis. The practitioner examines the problem situation. pressing problems. Greenwood states: “The diagnostic and treatment typologies are employed together. lawful patterns of events produce effectiveness and ineffectiveness. OD emphasizes the latter. the treatment typology allows the practitioner to know what remedial efforts to apply to correct the problem. by modifying a group norm or standards. 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. 6.8 Applied Behavioural Science This foundation of OD relates to the primary knowledge base of the field.

Kurt Lewin. practice research and practice theory. Fig. and action planning based on the data. behavioural science research and two behavioural science theory. I am inclined to hold the opposite to be true. and doing or implementing change efforts. who developed the concept of action research. it is a program of applying behavioural science to organizations. 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. a comparative search on the conditions and effects of various forms of social action. represent contributions from applied science. Action research is a method that combines learning and doing – learning about the dynamics of organizational change. Action research is especially well-suited for planned change programs. feedback of the data to the client system members.9 Action Research The action research model – a data-based. problem-solving method that replicates the steps involved in the scientific method of inquiry underlies most OD activities. It is a type of action-research. represent contributions from pure or basic science. and finally evaluating the effects of the treatments." the OD practitioner works: first diagnosing the situation. Action research involves three processes: data collection. the two top in puts.” Concluding Comments: . The two bottom inputs. 6. perhaps more accurately. had this to say about it: “The research needed for social practice can best be characterized as research for social management or social engineering.From this "practice theory. 6.8: Composition of Applied Behavioural Science Organization development is both a result of applied behavioural science and a. form of applied behavioural science. then selecting and implementing treatments based on the diagnosis.

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

3 4. Refer section 6.2.2 3.Refer section 6.12 Answers to SAQs and TQs SAQs: 1.2.” Comment on this statement.4.1 Introduction Objectives 7. What are the features of systems theory of organizational development? 5. Refer section 6.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 6. Refer section 6.1 2. System 5. Synergy Answers to TQs: 1. Unfreezing 2.2 Characteristics of Organization Culture Culture and . “Work teams are building blocks of organizational development. Ralph Kilmann 3. 6. MU0002-Unit-07-Organization Climate Unit-07-Organization Culture and Climate Structure: 7.2.3 5. Transactional change 4.

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

For many years. Rules: There are strict guidelines related to getting along in the organization. Market The Market organization also seeks control but does so by looking outward. terminology. the way participants interact.3 Types of Organization Culture Hierarchy The hierarchy has a traditional approach to structure and control that flows from a strict chain of command as in Max Weber’s original view of bureaucracy. Dominate value: These are major values that the organization advocates and expects the participants to share. but one where all transactions. Standards of behavior exist. and the way members of the organization conduct themselves with customers or other outsiders. Typical examples are high product quality. and in particular taking note of transaction cost. Hierarchical leaders are typically coordinators and organizers who keep a close eye on what is happening. Hierarchies have respect for position and power. New-comers must learn those “ropes” in order to be accepted as full-fledged members of the group. Norms. this was considered the only effective way of organizing and is still a basic element of the vast majority of organizations. internal and external are viewed in market . Which in many organizations come down to “Do not do too much. processes and procedures. Note that the Market organization is not one which is focused just on marketing. 7. Philosophy: These are policies that set forth the organization’s beliefs about how employees and/or customers are to be treated. 6. Observed behavioral regularities. Organizational climate: This is an overall “feeling” that is conveyed by the physical layout. 5.2 Characteristics of Organization Culture Organizational culture has a number of important characteristics. 7. Low absenteeism and high efficiency. 4. and rituals related to deference and demeanor. They often have well-defined policies.· Discuss about developing and changing organization culture. including guidelines on how much work to do. Some of the most readily agreed upon are the following: 1. they use common language. When organizational participants interact with one another. do not do too little?” 3. 2.

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

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

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

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

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

Effectiveness of an organization can be increased through economic man approach and administrative man approach. . Factors in organizational effectiveness include casual variables.7 Terminal Questions 1. intervening variables and end-result variables and there exists interrelationship among these variables. Market 3. behavioural approach. 7.goal approach.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. Discuss the development and change of organizational development. Explain the characteristics of organization culture. Artifacts 2.3 3.8 Answers to SAQs and TQs SAQs: 1. Refer section 7.2 2. Organizations to be successful must be efficient and effective. Briefly explain different types of organizational culture. Refer section 7. and strategic constituencies approach. Refer section 7. Organizational effectiveness can be measured through various approaches. system-resource approach. Causal variables Answers to TQs: 1. 3. Finally. 2. 7. effectiveness through adaptive-coping cycle has been discussed.

4 Theories about the Sources of Social Power 8. indisputable facts of organizational life.1 Introduction Politics and Power and politics.” Organization development has been criticized for not taking into account power in organizations. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics.11 Answers to SAQs and TQs 8.9 Summary 8.2 Power Defined and Explored 8.Power.5 Organizational Politics Defined and Explored 8. Organization Development Unit-08. must be understood if one is to be effective in organizations.1 Introduction Objectives 8.8 Acquiring and using Power Skills Self Assessment Questions 8. As Warner Burke observes: "Organization development signifies change.6 The Role of Power and Politics in the Practice of OD 8.7 Operating in a Political Environment 8.3 Two Faces of Power 8. and for change to occur in an organization.MU0002-Unit-08Power. That criticism was essentially correct for many years although it is less valid . we examine power and politics in relation to organization development. Politics and Organization Development Structure: 8. In this unit. power must be exercised.10 Terminal Questions 8.

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

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

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

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

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

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

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

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

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

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

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

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

Refer section 8. McClelland 3. 3. Describe briefly various theories of power. Power 2. 8. Refer section 8.6 5. Personality Answers to TQs: 1. Refer section 8.1 Introduction .8 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 2.2. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9.11 Answers to SAQs and TQs SAQs: 1. Define organization politics. Identify the bases of individual power and the respective strategies for their success.5 4.4 3. Refer section 8. Referent power 4. Explain the role of power and politics in the practice of OD. Harold Lasswell 5. 5. 4. Refer section 8.

These interventions vary from standardized program that have been developed and sometimes tailored program.8 Total Quality Management 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. actions.3 Socio Technical Systems 9. organizational problems may repeat. An organization development intervention is a sequence of activities. These methods are receiving increasing attention in Organization Development. These programs are derived from careful diagnosis.Objectives 9. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design.12 Answers to SAQs and TQs 9. events intended to help an organization improve its performance and effectiveness. Nothing is permanent except change because change is permanently changing.5 Quality Circles 9.7 Parallel Learning Structures 9. Objectives: .6 Quality of Work Life Projects 9.4 Management By Objectives 9.10 Summary 9.2 Meaning and Definitions 9.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival.9 Reengineering Self Assessment Questions 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. In this dynamic and fluid environment.

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

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

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

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.

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

Write a short note on Total Quality Management. It is also called continuous quality improvement. Discuss Socio Technical Systems? 2. ties reward to performance and increase workers knowledge and skills through extensive training. TQM pushes decision making power downwards in the organization. . Intervention 2.circle represents a participative approach to employee involvement in problem solving and productivity improvement.3 2. Refer section 9. What are the advantages of structural interventions? 3. Refer section 9.11 Terminal Questions 1.12 Answers to SAQs and TQS SAQs: 1. Quality circle Answers to TQs: 1.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Drucker 3. provides relevant information to all employees. Refer section 9. Explain Management By Objectives? 4. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. 9.Refer section 9.5 4. 9.2 3.

7 Summary 10.5 Impact of Change on the Future Manager 10. 10.3 Resistance to Change 10. Self Assessment Questions 10. and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other. Hence.9 Answers to SAQs and TQs 10.8 Terminal Questions 10. Objectives: . the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented). In this dynamic and fluid environment.6 Methods of Reducing Resistance to Change.2 Nature of Change 10.4 Causes for Resistance to Change. Nothing is permanent except change because change is permanently changing.1 Introduction Change in Organizations are increasingly realizing the fact that change is the price of the survival. 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. organizational problems may repeat.MU0002-Unit-10-Managing Organization Development Unit-10-Managing Change in Organization Development Structure: 10. cope with the ongoing changes successfully in the first instance.1 Introduction Objectives 10.

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

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

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

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

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

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

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

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

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

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

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

or deferred. Economic factors. For instance. Organizational change is the alteration of work environment in an organization. at the level of individual and at the level of group. through group dynamics. Resistance can be overt.6. or the like. Psychological factors 3. implicit. Explain the nature of change? 2. both at the formal and informal levels. Changes may be influenced by external and internal factors. that is. It is easiest for management to deal with resistance when it is overt and immediate. Reference: . a change is proposed and employees quickly respond by voicing complaints. psychological factors.10. Refer section 10. threatening to go on strike. Why do organizations resist change? 3. Problem of overcoming resistance to change can be handled at two levels.8 Terminal Questions 1. It implies a new equilibrium between different components of the organization. social factors. immediate. 10. People tend to resist many types of changes because new habits or sacrifices are required.9 Answers to SAQs and TQS SAQs: 1. Discuss the methods of reducing resistance to change. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups.2 2. Organizational change 2. Participation Answers to TQs: 1. 10.7 Summary Change is inevitable. group resistance and vested interests. Refer section 10. Refer section 10. engaging in a work showdown.4 3.

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

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