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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
In essence. 1. Distinct Process: Management is a distinct process consisting of such functions as planning. They must motivate the subordinates for the accomplishment of the tasks assigned to them. One may not see with the naked eyes the functioning of management but its results are apparently known. It is imperative that the organizational goals must be well-defined and properly understood by the mangers at various levels. high efficiency is associated more typically with high effectiveness.3 Characteristics of Management Management is a distinct activity having the following salient features or characteristics: 1. Managers also seek to harmonize the individuals’ goals with the organizational goals for the smooth working of the organization. And poor management is most often due to both inefficiency and ineffectiveness or to effectiveness achieved through inefficiency. buoyant spirit and adequate work output. feeling of management is result-oriented. Intangible Force: Management has been called an unseen force. although they can’t observe it during operation. It co-ordinates the efforts of workers to achieve the goals of the organization.course. Thus. capital and materials. Thus. All these resources are made available to those who manage. People often remark of the effectiveness (or ineffectiveness) of management on the basis of the end results. the process of management involves decision-making and putting of decisions into practice. It is the force which assembles and integrates other resources. labour and capital. These factors do not by themselves ensure production. 6. 3. informed employees. It is the most critical input in the success of any organized group activity. Goal-oriented: Management is a purposeful activity. Its presence is evidenced by the result of its efforts-orderliness. they require the catalyst of management to produce goods and services required by the society. management is an essential ingredient of an organization. labour. namely. directing and controlling. . staffing. Integrative Force: The essence of management is integration of human and other resources to achieve the desired objectives. These functions are so interwoven that it is not possible to lay down exactly the sequence of various functions or their relative significance. The success of management is measured by the extent to which the organizational goals are achieved. experience and management principles for getting the results from the workers by the use of non-human resources. Economic Resource: Management is one of the factors of production together with land. 5. They must have the necessary ability and skills to get work accomplished through the efforts of others. organizing. 4. Managers apply knowledge. 2. Results through Others: The managers cannot do everything themselves.
Similarly. on-going concern. useful. System of Authority: Management as a team of managers represents a system of authority. · Management as a system of authority According to Herbison and Myers. The application of these concepts. military. machinery and methods or ways of doing things) depends to a great extent on the quality of management. Universal Application: Management is universal in character. · Management as an economic resource Management is one of the factors of production along with land.4 Scope of Management The scope of management is very wide. (ii) a system of authority. 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. According to Herbision and Myers. Basically. For instance. Generally. The principles and techniques of management are equally applicable in the fields of business. education. principles and techniques which have wide applications. management is viewed as an art. how effectively and economically the five M’s are combined together to produce desired results. it refers to three distinct ideas. manpower. Sociology and Operations Research have also contributed to the development of management science.e.7. 10. money and machines into a productive. Anthropology. According to Newman. the effective use of the five M’s of management (money. government and hospital. Sociology and Psychology. Much of the management literature is the result of association of these disciplines. materials. So it is treated as a science. Multi-disciplinary Subject: Management has grown as a field of study (i. labour and capital. management is the rule-making and rule-enforcing body. A Science and an Art: Management has an organized body of knowledge consisting of welldefined concepts. It is bound together by a web of relationships between superiors and subordinates. discipline) taking the help of so many other disciplines such as Engineering. management is required to covert the disorganized resources of men. 1. materials. Authority enables the managers to perform their functions effectively. In modern organizations. management may be understood as (i) an economic resource. a hierarchy of command and control. In other words. 8. and (iii) a class or elite. people . Since the skills acquired by a manager are his personal possession. that is. 9. Managers at different levels possess varying degrees of authority. Henri Fayol suggested that principles of management would apply more or less in every situation. the degree of authority gets gradually reduced. productivity orientation drew its inspiration from Industrial Engineering and human relations orientation from Psychology. as we move down in the managerial hierarchy. principles and techniques requires specialized knowledge and skills on the part of the manager.
ranks. As a separate group.. Administrative management is concerned with “thinking” functions such as laying down policy. Instructions and decisions downward and carry the problem and suggestions upward. or the General Manager or Executive Committee having key officers. Top management determines objectives and provides direction to enterprise activities. Considering the hierarchy of authority and responsibility. the term management refers to the group of individuals occupying managerial positions.e. 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. Operative management is concerned with the “doing” function such as implementation of policies. Managers working at top levels enjoy more authority than people working at lower levels. one can identify three levels of management namely: i) Top management of a company consists of owners/shareholders. finance manager. . Lower management (first line supervisors) is concerned with routine.) interprets and explains the policies framed by the top management. its Chairman.are bound by authority relationships. day-to-day matters. and directing the operations to attain the objectives of the enterprise. The levels of management depend upon its size. Middle management (departmental heads like work manage. and the range of production. Levels of Management An enterprise may have different levels of management. We generally come across two broad levels of management. or the Chief Executive. Managing Director. But in actual practice. Board of Directors. technical facilities. personnel manager etc. his job is to see that the decisions are implemented. · Management as a class or elite Sociologists view management as a distinct class in society having its own value system. (i) administrative management (i. Levels of management refer to a line of demarcation between various managerial positions in an enterprise. the upper level of management) and (ii) operating management (i.. but as head of wages and salary department. For instance.e. the lower level of management). The managerial class has become very important in modern organizations owing to its contribution to business success. planning and setting up of standards. or. viz. wage and salary director of a company may assist in fixing wages and salary structure as a member of the Board of Directors. All the managers form the chief executive to the first line supervisors are collectively addressed as ‘Management’ which refers to the group. The real significance of levels is that they explain authority relationships in an organization.
It serves as an essential link between the top management and the lower level or operative management. Marketing Manager. etc. d) To assemble the resources of money. They devote more time on the organization and motivation functions of management. f) To provide overall leadership to the enterprise. Foremen. policies and plans for the enterprise. etc. Middle management: The job of middle management is to implement the policies and plans framed by the top management. c) To prepare the organizational set up in their own departments for fulfilling the objectives implied in various business policies. and Divisional Sectional Officers working under these Functional Heads. e) To assign activities.ii) Middle management of a company consists of heads of functional departments namely. iii) Lower level or operative management of a company consists of Superintendents. It is also described as the policy-making group responsible for the overall direction and success of all company activities. machines and methods to put the plans into action. It devotes more time on planning and co-ordinating functions. They are responsible to the top management for the functioning of their department. Purchase Manager. The following are the main functions of middle management: a) To establish the objective or goals of the enterprise. Top management: Top management is the ultimate source of authority and it lays down goals. Production Manager. d) To recruit and select suitable operative and supervisory staff. The important functions of top management include: a) To establish the objectives or goals of the enterprise. . Without them the top management’s plans and ambitious expectations will not be fruitfully realized. e) To exercise effective control of the operations. b) To make policies and frame plans to attain the objectives laid. 1. It is accountable to the owners of the business of the overall management. 2. materials. b) To interpret the policies chalked out by top management.. Financial Controller. They provide the guidance and the structure for a purposeful enterprise. Supervisors. c) To set up an organizational framework to conduct the operations as per plans. men. duties and responsibilities for timely implementation of the plans.
They are also involved in the process of decisions-making. Management makes group effort more effective. The importance of management can be understood from the following points. They are in direct touch with the rank and file or workers. supervisors. the resources of production remain resources and never become production. (i) Optimum use of resources: Management ensures optimum utilization of resources by attempting to avoid wastage of all kinds. They pass on the instructions of the middle management to workers. 3. evaluate their performance and report to the middle level management. They interpret and divide the plans of the management into short-range operating plans. They allot various jobs to the workers. A right climate is created for workers to put in their best and show superior performance. and actual operations are the responsibility of this level of management. sales officers. 1. They have to get the work done through the workers. i) To collect reports and information on performance in their departments. It is the activating force that gets things done through people. They are concerned with direction and control functions of management. machines. Without management. Their authority and responsibility is limited.f) To compile all the instructions and issue them to supervisors under their control. the working of an enterprise will become random and haphazard in nature. In its absence. accounts officers and so on. an organization is merely a collection of men. It helps in putting the resources to the best advantage within the limitations set by the organization and its environment. 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. j) To report to top management. Lower or operative management: It is placed at the bottom of the hierarchy of management. (ii) Effective leadership and motivation: In the absence of management. It enables employees to move cooperatively and achieve goals in a coordinated manner. Management creates teamwork and . g) To motivate personnel to attain higher productivity and to reward them properly.5 Importance of Management According to Drucker. k) To make suitable recommendations to the top management for the better execution of plans and policies. It consists of foreman. management is the dynamic lift-giving element in every organization. They devote more time in the supervision of the workers. money and material. h) To co-operate with the other departments for ensuring a smooth functioning of the entire organization.
often threaten the survival of a firm. a profession possesses the following characteristics: i) A body of principles. Overlapping efforts and waste motions are avoided. techniques. Organize the resources properly. 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. An enterprise has to take note of these changes and adapt itself quickly. forecasting combined with efficient use of resources) and taking appropriate steps. According to McFarland. and specialized knowledge. Thus unnecessary deviations. 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. all these help in realizing goals with maximum efficiency. Objective can be achieved only when the human and non-human resources are combined in a proper way. manager tries to strike a happy balance between the demands of employees and organizational requirements. Managers help an organization by anticipating these changes (carefull planning. In the final analysis. etc.. procedures and reward systems.motivates employees to work harder and better by providing necessary guidance. ii) Formalized methods of acquiring training and experience. (iv) Achievement of goals: Management plays an important role in the achievement of objectives of an organization. competition. (c) Exploiting new ideas for the benefit of society as a whole and (d) developing employee talents and capabilities while at work and prompting them to show peak performance. They initiate prompt actions whenever workers express dissatisfaction over organizational rules. methods. counseling and effective leadership. Management as a profession By a professional manager. hire competent people and provide necessary guidance. (vi) Improves standard of living : Management improves the standard of living of people by (a) using scarce resources efficiently and turning out profits. (b) Ensuring the survival of the firm in the face of continued changes. iii) The establishment of a representative organization with professiona-lizing as its goal. 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. Management is goal-oriented. Industrial peace is an essential requirement for increasing productivity. (iii) Establishers sound industrial relations: Management minimizes industrial disputes and contributes to sound industrial relations in an undertaking. skills. To this end. . (v) Change and growth: Changes in technology. With a view to realize the predetermined goals-managers plan carefully.
We have a number of institutes of management and university departments of management which provide formal education in this field. however. Indeed such mobile managers are regarded as more progressive and modern than others. It has also developed a vast number of tools and techniques. Henry Mintzberg did a careful study of five chief executives at work. Management is also a profession in the sense that formalized methods of training is available to those who desire to be managers. It is a profession in the sense that there is a systematized body of management. A number of organizations such as the Administrative Staff College of India. 1. Some individual business organizations. none of them has the professionalizing of the management as its goal. managers in general. an art as well as a profession.6 Role of Management In the late 1960s. In fact. do not seem to adhere to the principle of “service above self”. a management degree is not a pre-requisite to become a manager.A. Furthermore. the American Management Association in U. and short-duration activities. bribing public officials to gain favours. and the university departments of management offer a variety of short-term management training programmes.iv) The formation of ethical codes for the guidance of conduct. sabotaging trade unions. There is no ethical code of conduct for managers as for doctors and lawyers. identifiable discipline. For instance. management is not as exact as natural sciences. However. Training facilities are provided in most companies by their training divisions. little regard is paid to the elevation of service over the desire for monetary compensation is evident by switching of jobs by managers. But unlike medicine or law. etc. It may be concluded from the above discussion that management is a science. in contrast to the predominant views at the time that managers were reflective thinkers who carefully and systematically processed information before making decisions. the Indian Institute of Management. Management is a profession to the extent it fulfils the above conditions. and it is not as fully a profession as medicine and law. Management does not fulfill the last two requirements of a profession. and it is distinct. try to develop a code of conduct for their own managers but there is no general and uniform code of conduct for all managers. and v) The charging of fees based on the nature of services.. As a social science.S. What he discovered challenged several long-held notions about the manager’s job. Management partially fulfils the third characteristic of profession. There was little time for reflective thinking because the managers encountered . There are a number of representative organizations of management practitioners almost in all countries such as the All India Management Association in India. manipulating prices and markets are by no means uncommon management practices. However. unpatterned. Mintberz found that his managers engaged in a large number of varied. Management Development Institute. the All India Management Association.
This role includes hiring. When that sales manager confers with other sales executives through a marketing trade association. signing perform a number of routine legal documents. fulfill informational roles-receiving and collecting information from organizations and institutions outside their own. Informational Roles: All managers.constant interruptions. Mintzberg concluded that managers perform ten different but highly interrelated roles. Managers also act as a conduit to transmit information to organizational members. and associated duties. 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. obliged to Greeting visitors. he or she has an outside liaison relationship. motivating. and the like. the transfer of information. Mintzberg provided a categorization scheme for defining what managers do based on actual managers on the job. Responsible for the motivation Performing virtually all and activation of subordinates. and disciplining employees. what competitors may be planning. Half of these managers’ activities lasted less than nine minutes each. Mintzberg called this the monitor role. subordinates. Interpersonal Roles: All managers are required to perform duties that are ceremonial and symbolic in nature – interpersonal roles. activities that involve responsible for staffing. training. These ten roles can be grouped as those primarily concerned with interpersonal relationships. The term ‘management roles’ refers to specific categories of managerial behaviour. he or she is acting in a figurehead role. they do so by reading magazines and talking with others to learn of changes in the public’s tastes.1: Mintzberg’s Managerial Roles Role Interpersonal Figurehead Description Identifiable Activities Leader Symbolic head. . to some degree. manages also perform a spokesperson role. All managers have a role as a leader. This is the disseminator role. Table 1. Typically. These sources are individuals or groups outside the manager’s unit. and may be inside or outside the organization. The sales manager who obtains information from the human resources manager in his or her same company has an internal liaison relationship. But in addition to these insights. Mintzberg described this activity as contacting external sources who provide the manager with information. The third role within the interpersonal grouping is the liaison role. training. and decision-making. duties of a legal or social nature. When they represent the organisation to outsiders.
network of outside contacts doing external board and informers who provide work. etc. projects” to bring about change. emerges as nerve center of internal and external information about the organization. requesting of organizational resources of authorization. supervises design of certain projects as well. understanding of organization and environment. Responsible for corrective Organizing strategy and action when organization faces review sessions that important. performing other favors and information. serves as expert on organization’s industry. the organization – some information is factual. making phone subordinates to members of calls to relay information. the making any activity that involves or approval of all significant budgeting and the Informational Monitor Disseminator Spokesperson Decisional Entrepreneur Disturbance handler Resource allocator . activities that involve outsiders. Seeks and receives wide variety Reading periodicals and of special information (much of reports. Transmits information received Holding informational from outsides or from other meetings. Transmits information to Holding board meetings. policies. some involves interpretation and integration of diverse value positions of organizational influencers. results. media. unexpected involve disturbances and disturbances crises Responsible for the allocation Scheduling.. outsiders on organization’s giving information of the plans. actions. performing all kinds – in effect. Searches organization and its Organizing strategy and environment for opportunities review sessions to and initiates “improvement develop new programs. maintaining it current) to develop thorough personal contacts.Liaison Maintains self-developed Acknowledging mail.
an accounts payable manager must be proficient in accounting rules and standardized . Publishers. Last. the emphasis that managers give to the various roles seems to change with hierarchical level.organizational decisions. and spokesperson are more important at the higher levels of the organization than at the lower ones. During the early 1970. liaison. The Nature of Managerial Work (New York: Harper & Row. managers are responsible for allocating human. 1973). Conversely. However. Mintzberg identified four decisional roles which revolve around the making of choices. are heavily involved in technical aspects of the organization’s operations. As entrepreneurs. figurehead. Managers need certain skills to perform the duties and activities associated with being a manager. and conceptual. pp 93-94 Copyright Ó 1973 by Hency Mintzberg. Source: Henry Mintzberg. negotiator. Negotiator programming of subordinates work. the leader role is more important for lowerlevel managers than it is for either middle-or-top-level managers. Inc. Responsible for representing Participating in union the organization at major contract negotiations. He also found that the relative importance of these skills varied according to the manager’s level within the organization. managers perform as negotiators when they discuss and bargain with other groups to gain advantages for their own units. research by Robert L. as well as many middle managers. Decisional Roles: Finally. Reprinted by permission of Harper & Row. managers take corrective action in response to previously unforeseen problems. physical and monetary resources. such as engineering. As disturbance handlers. 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. As resource allocators. Katz found that managers need three essential skills or competencies: technical. the roles of disseminator. Managerial Skills As you can see from the preceding discussion. For example. Technical skills include knowledge of and proficiency in a certain specialized field. Specifically. a manager’s job is varied and complex. human. computers. negotiations. finance. managers initiate and oversee new projects that will improve their organization’s performance. or manufacturing. Technical Skills: First-line managers. The evidence generally supports the idea that managers – regardless of the type of organization or level in the organization-perform similar roles.
But some English authors like Brech are of the opinion that management is a wider term including administration. even top managers need some proficiency in the organization’s speciality. Conceptual Skills: Managers also must have the ability to think and to conceptualize about abstract situations. Since managers deal directly with people. motivate. 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. These types of conceptual skills are needed by all managers at all levels but become more important as they move up the organizational hierarchy. They know how to communicate. lead. Spriegal and Lansburg. it remains just as important at the top levels of management as it is at the lower levels. Floerence and Tead. According to them. Managers with good human skills can get the best out of their people. ii) Management is a generic term and includes administration.7 Administration and Management The use of two terms ‘management’ and ‘administration’ has been a controversial issue in the management literature. They must be able to see the organization as a whole and the relationships among its various subunits and to visualize how the organization fits into its broader environment. Some writers do not see any difference between the two terms. These abilities are essential to effective decision-making. etc. Although technical skills become less important as manager moves into higher levels of management. this skill is crucial. Thus. Human Skills: The ability to work well with other people both individually and in a group is a human skill. and all managers are involved in making decisions. 1. management is a lower-level function and is concerned primarily with the execution of policies laid down by administration. while others maintain that administration and management are two different functions.forms so that she can resolve problems and answer questions that her accounts payable clerks might encounter. administration is a higher level function. and inspire enthusiasm and trust. Those who held management and administration distinct include Oliver Sheldon. Administration is a higher level function: . In fact. iii) There is no distinction between the terms ‘management’ and ‘administration’ and they are used interchangeably.
Scope It is concerned with It is concerned with the determination of major implementation of objectives and policies. plans and policies through and with others. 2. Thus.2: Distinction between Administration and Management: Basic 1. Administration is a determinative function.e. 3. operative workforce for the execution of plans. This view is held by Tead. is a doing function. Managers are Administrators are basically concerned mainly with concerned with planning and organisation and direction control. It is a execution of decisions.Administration refers to policy-making. Spriegel and Walter. policies. Direction of It is concerned with leading It is concerned with Human Resources and motivation of middle leading and motivation of level executives. Nature Administration relates to the Management relates to decision-making. 5. 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. 8. 6. making strategic plans to deal plans and policies of the effectively with the organisation. 7. whereas management refers to execution of policies laid down by administration.Administration determines Management decides who Making what is to be done and when shall implement the it is to be done. on the other hand. administrative decisions. 4.. of the organisation. at lower levels of management. Environment Administration has direct Management is mainly interaction with external concerned with internal environment of business and forces. Decision. environmental forces. Table 1. management as an executive function which is primarily concerned with carrying out of the broad policies laid down by the administration. Status Administration refers to Management is relevant higher levels of management. of human resources. It thinking function. objectives. Usage of Term The term ‘administration’ is The term ‘management’ is often associated with widely used in business . i. Meaning Administration Management Administration is concerned Management means with the formulation of getting the work done objectives. administration involves broad policy-making and management involves the execution of policies laid down by the administration.
__________is principally the task of planning. 1. materials.10 Answers to SAQs and TQs SAQs: 1. Management 2. There are three levels of management-top. Managers perform different roles to discharge their responsibilities. Management creates ________ and motivates employees to work harder and better by providing necessary guidance. ___________. middle and lower. Discuss the importance of management.8 Summary Management is concerned with getting things done through other people. Still management is not completely a profession. 3. 2. Bring out the difference between Administration and Management. 2.9 Terminal Questions 1. Money. organisations. co-ordinating. Human skills are important at all managerial levels. motivating and controlling the efforts of others towards a specific objective. Explain its characteristics. manpower 3. 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. Self Assessment Questions in the 1. counseling and effective leadership. public organisations sector and non-business private sector. _________.government offices. Define management. 3. teamwork . machinery and methods or ways of doing things) depends to a great extent on the quality of management. Management is largely found at the middle and lower levels and administration is found at the higher levels. It is the management which transforms physical resources of an organization into productive resources. 1. Five M’s of management (________.
Refer section 1. Refer section 1. Refer section 1.7 Motivating Self Assessment Questions 2.3 Planning 2.2.5 3.8 Summary 2.10 Answers to SAQs and TQs .Answers to TQs: 1.5 Staffing 2.1 Introduction Objectives 2.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .3 2.4 Organizing 2.9 Terminal Questions 2. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.1.2 Process of Management 2.6 Directing 2.
since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent. · Explain different functions of management Process. 2. Policy Formulation We have noted earlier that all organizations have well-defined goals and objectives. Even . Organizing. you will be able to: · Define Management process. as the action of measuring a quantity on a regular basis and of adjusting some initial plan. Organizing 3. There is a degree of overlap between the two. One can also think of management functionally. Coordinating 5. Motivating. It is difficult to say where objectives end and policies begin.2 Management Process Peter Drucker said: “Management is doing things right. Controlling However. management functions have been regrouped into four categories. 1949): 1.1 Introduction Follett (1933) defined management as "the art of getting things done through people”. Staffing. leadership is doing the right things“. Management is about accomplishing a goal efficiently. leadership is about setting the desirable goals.2. Planning 2. Management functions are as follows (Fayol. the two are not quite the same. You might well ask what the need for a policy is when objectives are already defined. Commanding 4. Objectives: After this studying this unit. · Explain Planning. Through leadership and management often overlap. Directing. in recent time.
a process in which one chooses a course which one thinks is the best. fuel and machine efficiency. A mission statement should be short – and should be easily understood and every employee should ideally be able to narrate it from memory. and then set out the method for achieving it. thus. planning is often referred to as strategic in nature and also termed as strategic planning. planning begins with clearly defining the mission of the organization. or where you want go to. policies are the means to achieve those ends. Therefore. Thus. and allocating resources. 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. it would be correct to assume that an objective is what you want to accomplish. overall goals. The mission statement may be accompanied by an overarching . what distinguishers policies form objectives is that you first decide the objective. 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. general strategies. Decision – Making Taking decisions is a process. cost structure and so on. say a passenger car. kicking the ball with the left foot or right foot is a reflex action. the decision to change the design of a product. 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. driving comfort.so. It provides the direction for the other functions of management and for effective teamwork. In the football field. and developing plans to integrate and coordinate activities. Planning also enhances the decisionmaking process. 2. Objectives are the ends. Effective planning enables an organization adapt to change by identifying opportunities and avoiding problems. should precede a good deal of research involving market surveys.3 Planning It involves the process of defining goals. All levels of management engage in planning in their own way for achieving their preset goals. it is not a decision in which any process is involved. However. The mission statement is broad. The tasks of the strategic planning process include the following steps: Define the mission: A mission is the purpose of the organization. while a policy. establishing strategies for achieving these goals. summarizing what the organization does. studies on passenger comfort. Planning in order to be useful must be linked to the strategic intent of an organization.
What financing is available? 6. Threats) analysis is vital for the creation of any strategic plan. Conduct a situational or SWOT analysis A situation or SWOT (Strengths. In which areas is the competition not meeting customer needs? 2. What makes the organization distinctive? 2. How skilled is our workforce? 4. The SWOT analysis begins with a scan of the external environment. Are the technologies obsolete? For identifying opportunities the following elements need to be looked at: 1. What is our market share? 5. Is research and development adequate? 4. Analyzing strengths and weaknesses comprises the internal assessment of the organization. What are the vulnerable areas of the organization that could be exploited? 2. Weaknesses.statement of philosophy or strategic purpose designed to convey a vision for the future as envisaged by top management. SWOT analysis provides the assumptions and facts on which a plan will be based. federal. Sources of information may include stakeholders like. international). What are the possible new markets? . Opportunities. state. customers (internal and external). For assessing the strengths of the organization the following questions are important: 1. professional or trade associations (conventions and exhibitions). professional. Organizations need to examine their business situation in order to map out the opportunities and threats present in their environments. journals and reports (scientific. Do we have a superior reputation? For assessing the weaknesses of the organization the following questions are important: 1. suppliers. governments (local. Are the facilities outdated? 3. and trade). How efficient is our manufacturing? 3.
These are specific plans that are needed for each task or supportive activity comprising the whole. Are market tastes changing? 5. Set goals and objectives Strategic goals and objectives are developed to fill the gap between current capability and the mission. etc. organizations have longterm objectives for factors such as. tactical. In which areas does the competition meet customer needs more effectively? 2. the best strategy is one that fits the organization’s strengths to opportunities in the environment. Objectives are also called performance goals. Strategic. Benchmarking systematically compares performance measures such as efficiency. What is the strength of the economy? 4.3. Are there new competitors? 3. Is there a shortage of resources? 4. It also helps in setting minimum acceptable standards or common-sense minimums. Comparing the organization to external benchmarks (the best practices) is used to assess current capabilities. Generally. as well as gap analysis. return on investment. What are the emerging technologies? 6. Develop related strategies (tactical and operational) Tactical plans are based on the organization’s strategic plan. Is there a possibility of growth of existing market?) Identifying threats involves the following: 1. What substitute products exist? In general terms. What are the new regulations? 6. effectiveness. They are aligned with the mission and form the basis for the action plans of an organization. In turn. The SWOT analysis is used as a baseline for future improvement. Are our rivals weak? 5. earnings per share. operational plans are based on the organization’s tactical plans. and operational planning . or outcomes of an organization against similar measures from other internal or external organizations.
This review is used for the next planning cycle and review.4 Organizing It involves designing. A key issue in accomplishing the goals identified in the planning process is structuring the work of the organization. Delegate authority to establish relationships between jobs and groups of jobs.5 Staffing . lines of authority. grouped. It is the process of determining what tasks are to be done. It is the official organizational structure conceived and built by top management. The purpose of the organizing function is to make the best use of the organization’s resources to achieve organizational goals. who reports to whom. structuring. Review plans 2. 2. Organizations are groups of people. and coordinating the work components to achieve organizational goal. and relationships between departments. List all tasks to be accomplished 3. and goals are clearly stated. Divide tasks into groups one person can accomplish – a job 4. It is the extent to which the units of the organization are explicitly defined and its policies. short-term standards for key variables that will tend to validate and support the long-range estimates must be established. and where decisions are to be made. An organization chart displays the organizational structure and shows job titles. Monitor the plan A systematic method of monitoring the environment must be adopted to continuously improve the strategic planning process. working toward common goals. who is to do. Feedback is encouraged and incorporated to determine if goals and objectives are feasible. procedures. The formal organization can be seen and represented in chart form. necessary to maintain competitive advantage in the said market. Group related jobs together in a logical and efficient manner 5. To develop an environmental monitoring procedure. Assign work to individuals 6. and coordinated. The steps in the organizing process include: 1.must be accompanied by controls to ensure proper implantation of the plans. Formalization is an important aspect of structure. 2. Organizational structure is the formal decision-making framework by which job tasks are divided. how the tasks are to be grouped. with ideas and resources.
Staffing refers to the managerial function of determining and improving the manpower requirements of an enterprise. growth and development of all those members of the organization whose function is to get things done through the efforts of other individuals”. training. O’Donnell & Weihrich have defined staffing as “filling positions in the organization structure through identifying work force requirements. . promotion. recruitment. recruitment. transport system and other physical resources that make the organization to achieve its goals but it is the competency and efficiency of the people who handle resources contributes for the accomplishment of objectives of the enterprise. 3. performance appraisal etc. appraisal. money. transfer and appraisal of personnel to fill the organizational positions. development. placement. 3. Deals with people: Staffing is a separate managerial function which deals with people in the organization. selection. It aims at right man at right position: Staffing aims at selection of right person for right place at right time and retaining them in the organization. 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. Koontz. compensation and training of needed people”. 2. Definition: 1. Therefore it is the responsibility of the management to secure and maintain competent and dedicated workforce including managers and operatives.It is not the machines. placement. materials. Managers of the concerned departments are responsible for the selection and development of qualified people for their department and maintain them in their department. Pervasiveness of Staffing: Effective execution of staffing function is the responsibility of all managers in the organization. 4. It involves many sub-functions such as manpower planning. This task has been referred to as staffing. selection. It has many sub-functions: Staffing involves determination of the manpower requirement. 2. inventorying the people available. Theo Haimann – “Concerned with the placement.
management initiates actions in the organization. 2. It is a continuous function: With the growth and expansion of business additional manpower is needed. induction. It is instructing people as to what to do. Direction is an important managerial function.e. vacancies arise out of retirement. Definition According to Koontz and O’Donnel. how to do and telling them to do to the best of their ability. Thus staffing deals with the future requirements also. It is a process: it is a process having a logical sequence i. 3. It is a continuing function. Direction function is performed at every level of management. Direction is continuous process and it continues throughout the life-time of the organization. Present positions must be filled keeping in mind the future requirements.6 Directing Direction is one of the functions of management. lead them and guide them on a continuous basis. Personnel policies and programs must be formulated as guides to perform the staffing function effectively. selection. . 6. training development and maintenance of personnel. Through direction. Characteristics of Direction The characteristic features of direction are as follow: 1. motivate them. It is an important managerial function. overseeing and leading people. promotion.5. A manger needs to give orders to his subordinates. identifying the manpower requirements. recruitment. resignation. It deals with future requirements: Staffing deals with current and future personnel requirements. Direction is the managerial function of guiding. directing is the “interpersonal aspect of managing by which subordinates are led to understand and co-ordinate effectively and efficiently to the attainment of enterprises goals”. 8. 2. 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. Thus staffing is an ongoing process through – out the life of an organization. etc. 7.
4. humanness and psychological health a person will show. 5. 2. The needs are arranged in order of importance. The five needs are: · Physiological: Includes hunger. the number of subordinate he has and the other duties he is expected to perform. The further they progress up the hierarchy. Direction imitates at the top level in the organization and follows to bottom through the hierarchy. on the other. Nature of Directing The nature of directing can be discussed under the following: 1. The person advances to the next level of needs only after the lower level need is at least minimally satisfied. without guiding and overseeing subordinates. the more individuality. only unsatisfied needs can influence behavior. As Theo Haimann puts it. shelter. Direction has dual objectives. 2. to provide superiors opportunities for some more important work which their subordinates cannot do. Maslow’s Hierarchy of Needs Theory According to this theory. thirst. 3. teach. will vary depending upon his level. it aims at getting things done by subordinates and.4. human beings have wants and desires which influence their behaviour. The amount of time and effort an executive spends in directing however. organizing and staffing on one hand and controlling on the other. On the one hand. and the Two-Factor theory. The manager never ceases to direct. proposed by Maslow (1943). “without the issuance of directives. coach and supervise his subordinates.7 Motivating Motivating In the 1950s three specific theories were formulated and are the best known: Hierarchy of Needs theory. and other bodily needs . Continuous function: Directing is a continuous process. It is an important function of management: Directing is an important management function which provides a connecting link between planning. sex. Pervasive function: Directing is a managerial function performed by all mangers at all levels of the organization. It emphasizes that a subordinate is to be directed by his own superior only. satisfied needs cannot. nothing or at the best very little would be accomplished”. Theories X and Y. Essence of performance: Directing is the process around which all performances revolve. from the basic to the complex. Directing is the process around which all performances revolve. guide.
Social. From the above. Higher-order needs are satisfied internally. autonomy. esteem. and exercise self-control. such as. 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. recognition. externally. Lower-order needs are predominantly satisfied. self-respect. if given the chance employees have the desire to be creative and forward thinking in the workplace. and self-fulfillment Maslow separated the five needs into higher and lower orders. It is also assumed that workers generally place security above all other factors and will display little ambition. Theory Y – In this theory management assumes employees may be ambitious. and attention · Self-actualization: The drive to become what one is capable of becoming. Herzberg’s Two Factor Theory . such as. belongingness. Theory X – In this theory management assumes employees are inherently lazy and will avoid work. anxious to accept greater responsibility. acceptance. self-direction. and achievement. achieving one’s potential. includes growth. it is clear that Theory X assumes that lower-order needs dominate individuals. status. Physiological and safety needs are described as lower-order. whereas. self-motivated. and self-actualization are classified as higherorder needs. It is believed that employees enjoy their mental and physical work duties. There is a chance for greater productivity by giving employees the freedom to perform to the best of their abilities without being bogged down by rules. It is also believed that. Theory Y assumes that higher-order needs dominate individuals. and friendship · Esteem: Includes internal esteem factors.· Safety: Includes security and protection from physical and emotional harm · Social: Includes affection. Workers need to be closely supervised and a comprehensive system of controls and a hierarchical structure is needed to supervise the workers closely. autonomy and empowerment. if they can.
These two factors are motivators and hygiene factors and this theory is also called motivation-hygiene theory. _______refers to the managerial function of determining and improving the manpower requirements of an enterprise. emphasize factors intrinsically rewarding that are associated with the work itself or to outcomes directly derived from it. performance appraisal etc. advancement. 2. and achievement. 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. Every organization needs to plan for change in order to reach its set goal. To motivate people. In summary. who reports to whom. Job satisfaction factors are separate and distinct from job dissatisfaction factors. Planning involves the process of defining goals. structuring. but their presence does not motivate or create satisfaction. Extrinsic factors. Hygiene factors on the other hand. Presence of these factors ensure job satisfaction. neither will they be satisfied. and developing plans to integrate and coordinate activities. Motivators are intrinsic factors. have to do with a person’s relationship to the context or environment in which she or he performs the job. recognition. interpersonal relations. It involves many sub-functions such as manpower planning. many related to the tasks being performed. supervision. When hygiene factors are adequate.Herzberg (1959) constructed a two-dimensional paradigm of factors affecting people’s attitudes about work. The _____analysis begins with a scan of the external environment. Removing dissatisfying characteristics from a job does not necessarily make the job satisfying. motivators describe a person’s relationship with what she or he does. Self Assessment Questions 1. such as. The absence of hygiene factors can create job dissatisfaction. 3. and salary are hygiene factors. working conditions. It is the process of determining what tasks are to be done. company policy. people will not be dissatisfied.8 Summary Management is the art of getting things done through people. recruitment. and coordinating the work components to achieve organizational goal. ____defined management as the art of getting things done through people. responsibility. establishing strategies for achieving these goals. 2. . and where decisions are to be made. such as. who is to do. Organization involves designing. Directing is the interpersonal aspect of managing by which subordinates are led to understand and co-ordinate effectively and efficiently to the attainment of enterprises goals. Staffing refers to the managerial function of determining and improving the manpower requirements of an enterprise. how the tasks are to be grouped.
Reference 2. What is planning? 2. Follett 2. Staffing Answers to TQs: 1.9 Terminal Questions 1. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3. 2.10 Answers to SAQs and TQs SAQs: 1. Write a short not on directing.3 2. SWOT 3. Reference 2.6 Copyright © 2009 SMU Powered by Sikkim Manipal University .1 Introduction Objectives .5 3. Reference 2.2. Explain Staffing in detail 3.
3.2 Definitions 3.3 Characteristics of OD 3.4 Categories of OD 3.5 Goals of OD 3.6 OD and Management Development 3.7 Role of OD 3.8 Problems in OD Self Assessment Questions 3.9 Summary 3.10 Terminal Questions 3.11 Answers to SAQs and TQs 3.1 Introduction Organization development is the applied behavioural science discipline dedicated to improving organizations and the people in them through the use of the theory and practice of planned change. Organizations face multiple challenges and threats today – threats to effectiveness, efficiency, and profitability; challenges from turbulent environments, increased competition, and changing customer demands; and the constant challenge to maintain congruence among organizational dimensions such as technology, strategy, culture, and processes. Keeping organizations healthy and viable in today’s world is a daunting task. Individuals in organizations likewise face multiple challenges – finding satisfaction in and through work, fighting obsolescence of one’s knowledge and skills, maintaining dignity and purpose in pursuit of organizational goals, and achieving human connectedness and community in the workplace. Simple survival – continuing to have an adequate job – is a major challenge today in the light of constant layoffs and cutbacks. Although new jobs are being created at record rates, old jobs are being destroyed at an accelerating pace. “Knowledge” work is replacing “muscle” work. In summary, organizations and the individuals in them face an enormously demanding present and future. Are any strategies available to help people and organizations cope, adapt, survive, and even prosper in these vexing times? Fortunately, the answer is “yes”. A variety of solutions exists. And organization development (OD) is one of them. Basically, organization development is a
process of teaching people how to solve problems, take advantage of opportunities, and learn how to do that better and better over time. OD focuses on issues related to the “human side” of organizations by finding ways to increase the effectiveness of individuals, teams, and the organization’s human and social processes. Organization development is a relatively recent invention. It started in the late 1950s when behavioural scientists steeped in the lore and technology of group dynamics attempted to apply that knowledge to improve team functioning and inter-group relations in organizations. Early returns were encouraging, and attention was soon directed toward other human and social processes in organizations such as the design of work tasks, organization structure, conflict resolution, strategy formulation and implementation, and the like. The field of OD grew rapidly in the 1970s and the 1980s with thousands of organizations in the private and public sectors using the theory and methods of OD with great success. Today, organization development represents one of the best strategies for coping with the rampant changes occurring in the marketplace and society. We predict that organization development will be preferred improvement strategy in future. Objectives: After studying this unit, you will be able to: · Define organization development. · Explain the characteristics of OD. · Discuss the categories of OD programme. · State the goals of OD. · Distinguish between OD and Management Development · Explore the problems in OD. 3.2 Definitions Organization Development (OD) is a response to change, a complex educational strategy intended to change the beliefs, attitudes, values and structure of organization so that they can better adapt to new technologies, markets, and challenges, and the dizzying rate of change itself. (Bennis, 1969). OD can be defined as a planned and sustained effort to apply behavioural science for system improvement, using reflexive, self-analytic methods. (Schmuck and Miles, 1971)
Organizational development is a process of planned change- change of an organization’s culture from one which avoids an examination of social processes (especially decision making, planning and communication) to one which institutionalizes and legitimizes this examination. (Burke and Hornstein, 1972) The aims of OD are: 1) Enhancing congruence between organizational structure, processes, strategy, people, and culture; 2) Developing new and creative organizational solutions; and 3) Developing the organization’s self-renewing capacity (Beer, 1980). Organization development is an organizational process for understanding and improving any and all substantive processes an organization may develop for performing any task and pursuing any objectives…. A “process for improving processes” – that is what OD has basically sought to be for approximately 25 years (Vaill, 1989) “Organizational development is a set of behavioural science-based theories, values, strategies, and techniques aimed at the planned change of the organizational work setting for the purpose of enhancing individual development and improving organizational performance, through the alteration of organizational members’ on-the-job behaviours.” (Porras and Robertson, 1992) “OD is a systematic application of behavioral science knowledge to the planned development and reinforcement of organizational strategies, structure, and processes for improving an organization’s effectiveness.” (Cummings and Worley, 1993) “Organization development is a planned process of change in an organization’s culture through the utilization of behavioural science technologies, research, and theory.” (Burke, 1994) As you can see, these definitions overlap a great deal (that’s encouraging), and contain several unique insights (that’s enlightening). All authors agree that OD applies behavioural science to achieve planned change. Likewise, they agree that the target of change is the total organization or system and that the goals are increased organizational effectiveness and individual development. Collectively, these definitions convey a sense of what organization development is and does. They describe in broad outline the nature and methods of OD. There is no set definition of OD and no agreement on the boundaries of the field, that is, what practices should be included and excluded. But these are not serious constraints given that the field is still evolving, and that practitioners share a central core of understanding as shown in the preceding definitions.
coherent. There is no “quick fix” when it comes to lasting organizational improvement. By long-term effort. learning. Organizational change is hard. and organizational learning.several years in most cases. but it includes a number of components that we consider essential. it must be built into the very fabric of the organization-its strategy. 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. Peter Senge describes learning organizations as “… organizations where people continually expand their capacity to create the results they truly desire. We will explain this definition in some detail. or became distracted with other duties. For empowerment to become fact of life. we mean that organizational change and development takes time. We do not propose it as the “right” definition. In fact. and shared picture of the nature of the products and services the organization offers. “Organization development is a long-term effort. and self-examining processes that facilitate individual. developing the strategy for getting there. led and supported by top management. processes. By visioning processes. and making it happen. One program or initiative moves the organization to a higher plateau. team. the ways those goods will be produced and delivered to customers. including action research. Most OD programs that fail do so because top management was ambivalent. and culture. we mean those leadership behaviours and human resource practices that enable organization members to develop and use their talents as fully as possible toward individual growth and organizational success. we mean those interacting. By empowerment. it includes pain and setbacks as well as success.Now let’s turn to our definition of organization development. structure. and what the organization and its members can expect from each other. The phrase led and supported by top management states an imperative: Top management must lead and actively encourage the change effort. we mean those processes through which organization members develop a viable. where new and expansive patterns of thinking are nurtured. listening. to improve an organization’s visioning. but as one that includes characteristics we think are important for the present and future of the field. it is more accurate to describe “improvement” as a never-ending journey of continuous change. serious business. empowerment.” This definition is lengthy. Visioning means creating a picture of the desired future that includes salient features of the human side of the organization and then working together to make that picture a reality. By learning processes. lost its commitment. where . By empowerment processes. through an ongoing. we mean involving large numbers of people in building the vision of tomorrow. Top management must initiate the improvement “journey” and be committed to seeing it through. and problem-solving processes. then another moves it to yet a higher plateau of effectiveness.
norms. and problem-solving processes. Processes are relatively easy to change. and continuous learning the organization is bound to succeed. activities. one of wide-spread participation in creating and managing a culture that satisfies that wants and needs of individuals at the same time that it fosters the organization’s purposes. and feel-that is why culture change is necessary for true organizational improvement. Edgar Schein clarifies the nature and power of culture in his definition: “Culture can now be defined as (a) a pattern of basic assumptions. therefore (e) is to be taught to new members as the (f) correct way to perceive. and take actions on problems. sentiments. and we highlight the importance of visioning. Still. and where people are continually learning how to learn together. Collaborative management of the culture means that everyone. Our definition also places considerable weight on organizational processes. strategy. structure. managing the culture should be a collaborative business. we mean. We further believe that having compelling. commitment. attitudes. make decisions. beliefs. and problem-solving processes are opportunities for collaboration in organization development. and each influences the others. interactions. culture is of primary importance. opportunities. we affirm our belief that culture is the bedrock of behaviour in organizations.collective aspiration is set free. not just a small group. By including culture so prominently in our definition. empowerment. By ongoing collaborative management of the organization’s culture. Michael Beer’s definition called for “developing new and creative organizational solutions”. think. Processes are how things get done. . solve problems. and feel in relation to those problems. The reciprocal influence among culture. and challenges in the organization’s environment and its internal functioning. think. We believe solutions to problems are enhanced by tapping deeply into the creativity. or developed by a given group. (b) invented. widely shared vision of a desired future creates the best climate for effective problem-solving by all the organization’s members. vitality. first. We believe that when the culture promotes collaboration. expectations. in contrast to having only a select few involved. values. empowerment. Empowerment means involving people in problems and decisions and letting them be responsible for results. But change becomes permanent when the culture changes and people accept the new ways as the “right” ways. so they are the place OD programs often begin – getting people to stop doing things one way and start doing them a different way. learning.” Problem-solving processes refer to the ways organization members diagnose situations. and artifacts. So culture consists of basic assumptions. (d) that has worked well enough to be considered valid and. empowerment. and norms of behaviour that are viewed as the correct way to perceive. learning. And second. (c) as it learns to cope with its problems of external adaptation and internal integration. and processes makes each important. that one of the most important things to manage in organizations is the culture: the prevailing pattern of values. Just as visioning. assumptions. discovered. has a stake in making the organization work. so is managing the culture. and common purposes of all members of the organization.
individuals and the organization function well. These self-directed teams assume complete responsibility for planning and executing work assignments. 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. such as design. 2. manufacturing. maintaining quality control. He uses the terms ‘multifunctional projectization’ and ‘horizontal systems’ to describe these teams and their work. OD focuses on culture and processes. Today’s organizations increasingly use ad hoc teams that perform a specific task and disband when the task is completed. Temporary. hiring. OD encourages collaboration between organization leaders and members in managing culture and processes. and training. Over time. firing. wasted time. 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. the process “threw the results over the wall” to the next functional unit. multifunctional. intact work teams do not have a boss in the traditional sense-the teams manage themselves. we recognize that teams are central to accomplishing work in organizations. . The most prevalent form of teams in organizations is intact work teams consisting of superior and subordinates with a specific job to perform. 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. When teams function well. much rework. The results are usually highly gratifying both for the team members and for the organization. and then disbanded with the people going on to new tasks. In addition to team building and role and goal clarification. This method resulted in loss of synergy. In Liberation Management. self-directed teams control performance appraisals. here are the primary distinguishing characteristics of organization development: 1. and procurement. Team building and role and goal clarification interventions are standard activities in OD programs directed toward intact work teams. The definition we have just analyzed contains the elements we believe are important for OD. and considerable antagonism among the separate functional specialists. We think teams are the basic building blocks of organizations. Specifically. When one function finished with its part of the project. according to Peters. The old method was to have functional specialists work on the problem sequentially. members are trained in competencies such as planning. But in many organizations today. team culture can be collaboratively managed to ensure effectiveness. and using management information. constantly shifting teams will be the dominant configuration for getting work done. engineering.By intact work teams and other configurations. Further. To summarize.
. Planned Change: OD is a strategy of planned change for organizational improvement. An overarching goal is to make the client system able to solve its problems on its own by teaching the skills and knowledge of continuous learning through self-analytical methods. 9. OD efforts are not one-shot actions. Thus. Attempting to create “win-win” solutions is standard practice in OD programs. 3. OD practitioners are facilitators. OD focuses on the elevation of an organization to a higher level of functioning by improving the performance and satisfaction. 8. OD relies on an action research model with extensive participation by client system members. 4. so the methods of attaining these goals should also change. 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. It recognizes that organizational goals change. so that change is easily observed. Teams of all kinds are particularly important for accomplishing tasks and are targets for OD activities.3 Characteristics of OD 1. dynamic and adaptive system. 6. 3. The concept of comprehensive change is based on the systems concept-open. temporary. they are ongoing. Rather. rather than focusing attention on individuals. Long-range Change: OD efforts are not meant for solving short-term. 4. 2. 5. or isolated problems. OD efforts take an organization as an interrelated whole and no part of it can be changed meaningfully without making corresponding changes in other parts. OD focuses on total system change and views organizations as complex social systems. Participation and involvement in problem-solving and decision-making by all levels of the organization are hallmarks of OD. OD takes a developmental view that seeks the betterment of both individuals and the organization. OD focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. 7. collaborators. Comprehensive Change: OD efforts focus on comprehensive change in the organization. OD views organization improvement as an ongoing process in the context of a constantly changing environment. and cyclic processes. and co-learners with the client system.3. 10. interactive. rather. This ‘planned’ emphasis separates OD efforts from other kinds of more haphazard changes that are frequently undertaken by organizations.
rather. Two important elements of Organization Development are. Action research is the basis for such intervention. (b) The interventions are primarily directed towards problems and issues identified by the client group. identity. Key areas are the normative type of model. the element which links Organization Development with the scientific method of inquiry and. participation. collects relevant data. growth. The change agent is a humanist seeking to get a humanistic philosophy in the organization. This is done to arrive at certain desirable outcomes that may be in the form of increased effectiveness. and mutual influence. and adaptability for the organization as a whole. The relationship involves mutual trust. evaluates these data. 3. At the individual level.5. the collaborative relationships between the scientists. the importance and centrality of goals and objectives and the different role requirements of the consultant change agent vis-à-vis the clients. further more. There is a close working relationship between the change agent and the target organizational members to be changed. it is a programme with a purpose that is to guide present and future action. . Participation of Change Agent: Most OD experts emphasize the need for an outside. He designs intervention strategies based on these data. practitioners and the client laymen. joint goals and means. second.4 Categories of OD Programmes In general. They discourage ‘do it yourself’ approach. and then. or catalyst. and revitalization. takes actions for intervention. Although Organization Development Programmes vary. and integrate individual and organizational goals. A change agent in OD process does not just introspect the people and introduce changes. all types of experience requiring Organization Development efforts may be grouped into three categories: (a) Problems of destiny. 6. problem-solving. He shares a social philosophy about human values. Organization Development is inextricably linked with action. 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’. (b) Problems of human satisfaction and development. 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. and (c) Problems of organizational effectiveness. OD attempts to provide opportunities to be ‘human’ and to increase awareness. first. 7. he conducts surveys.
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. (e) To make competition more relevant to work goals and to maximize collaborative efforts. 3. (b) To supplement the authority associated with role or status. (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. (f) To develop a reward system which recognizes both the achievement of the organization’s goals (profit or service) and development of people. (c) To locate decision making and problem-solving responsibilities as close to sources of information as possible. We need to examine carefully the techniques of Organization Development. 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 . This Organization Development progrmmes. problem solving climate throughout an organization. (d) To build trust among persons and groups throughout an organization. and (d) The interventions are based on behavioural science theory and technology. (j) To improve effectiveness of the organization. like other normative re-educative programmes.(c) The interventions are directed towards problem-solving and improved functioning for the client system.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. 3.
then would the results be functional for managing organization activity in a competitive world? Thus. whereas OD efforts within organizations may cause confusion and chaos for incoming human resources if the organization is underplayed and the humanistic dimension alone is emphasized. (iii) assertiveness. more attention to peer-groups. according to him. Miner has drawn difference between two processes. organization. not on the and managers to perform managers. have substantial influence in changing the capacity of the individual to perform his assignment better and in so doing are likely to increase his potential for future management assignment. The term ‘development’ refers broadly to the nature and direction of change induced in personnel through the process of training and education. Focus . and techniques adopted in both may overlap to some extent. However. If OD efforts train people towards anti-authority value. less individual competitiveness. These are: (i) a positive attitude towards authority. let us define management development as we have seen the definition of OD. According to him. it is beneficial to make a comparison between OD and Management Development (MD) as both have some common objectives that betterment of an organization. the former goes one step further and purports to change the entire organizational climate where the mangers work. and greater display of feelings and emotions. Based on this. with their existing objectives and structure.At this stage. OD tries to fit the organization to the men. and (iv) a sense of responsibility. management development has been defined as follows: “Management development is all those activities and programmes when recognized and controlled. Train and equip employees Focus on design. (ii) competitiveness. he appears to be biased against OD and the real distinction between OD and MD lies in between these two extremes. there are four attributes of effective managers in large organization. Burke and Schmidt have made this difference more clear which is presented in the following table. focus on achieving better in existing improvement in design. Difference between Management Development and OD Factors Objectives Management Development Organization Development Increasing manager’s Changing the nature of the contributions to goal organization. MD tries to fit the men to the organization. He feels that management development reinforces the above four qualities and helps managers cultivate and develop the will to manage. Before making a comparison between the two.” Organization development differs from management development. While the latter aims at developing the mangers individually for the accomplishment of better performance in organizational setting. accomplishments.
To increase the level of self and group responsibility in planning and its implementation. To increase the openness of communications in all directions-vertically. 5. OD can be utilized for the following results in the organization: 1.Approach Time Educative and training Short-range. as a long-term strategy for organizational change. Much of the enthusiasm created at the beginning of OD programmes vanished over the period of time. has invited sharp criticism as a strategy to increase organizational viability and effectiveness because many OD programmes have failed. Research studies have also failed to conclude . horizontally. etc. 3. and laterally. To create an environment in which authority of assigned role is augmented by authority based on knowledge and skills. 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.7 Role of Organization Development Organization development. To treat each human being as a complex person with a complex set of needs important in his work and his life. By 70s. Long-range strategy for organizational innovation and renewal. Trained specialists required. however. Specialist No special requirement. Problem-solving approach. To increase the level of trust and mutual emotional support among all organization members. Thus. it is quite suitable for improving organizational performance on long-term basis. 4. To increase the level of enthusiasms and personal satisfaction at all levels of the organization. 7.8 Problems in Organization Development Organization development. 3. In early 60s. plays key role in organizational improvement. 6. substantial disenchantment with OD became evident because of many controversial OD techniques like sensitivity training. confrontation techniques. OD became quite successful with many professional consultants offering high services and programmes to various organizations. 2. however. To place emphasis on humanistic values and goals consistent with these vales. Since OD attempts to bring comprehensive change in the organization. 3.
Hence. OD tries to achieve ideal without taking into account real. and (ii) failure to correctly model appropriate personnel behaviour in the programme. 3. OD can not be taken as panacea for curing all organizational problems. People realized its dysfunctional aspects only when many OD efforts failed. Organization must formulate the objectives of OD programme very clearly and specifically. particularly in bottom-line ones. Some of these efforts are as follows: 1. . Therefore. it is useless to try OD. 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. Only fully competent OD consultant should be pressed for the service and he should develop understanding with internal change agents. If an organization is laden with these people. in order to make best use of OD efforts. 5. and only large organizations can afford this luxury without any guarantee of positive outcome.significant contributions of OD in all organizations. There should be genuine support of OD programme from top management. and (iii) failure to increase employee motivation through participation and development of personal growth and self-esteem. OD makes people unfit for the real organizations world because no organization can fully adopt open system concept. Resistance to change is a natural phenomenon and OD puts undue pressure to change. 5. There should be proper use of OD interventions. some specific efforts are required. These should be based on the specific needs of the organization. It can be seen that many of these criticisms are based on reality and experience. OD is criticized on the following lines: 1. Enough time should be allowed so that the effects of OD programme are realized. 2. it fails even as a long-term strategy. There is discrepancy between ideal and real situations. For example. 3. Thus. OD programmes are often quite costly. OD fails to motivate people with low level of achievement needs. In general. However. 2. 4. it may be emphasized that OD programmes are likely to fail when these are not programmes and hence failure. it can be visualized that OD itself may not be dysfunctional but application may be. Therefore. 4.
5. Tom Peters 3.11 Answers to SAQs and TQs SAQs: 1. Management development aims at developing the managers individually. 2.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. 4. collaborative. Explain the various characteristics of OD. OD focuses on culture and processes. ––––––– is associated with “Liberation Management”. ––––––––– is a process which includes leadership behaviours and human resource practices. Organization development should be led and supported by –––––––. There is no ‘quick fix’ to organizations’ problems. The participative. What are the problems involved in the implementation of OD? 3. State the various roles of OD. OD is the ultimate remedy for organizational improvements and developments.10 Terminal Questions 1. Explain its salient features. problem-focused ‘nature of OD’ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. 3. 4. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. Top management 2. 3. 3. But OD aims at changing the entire organizational climate where the managers work. Define OD. _____________is a short-term strategy. 3.Self Assessment Questions 1. Empowerment . Distinguish between ‘organizational development’ and ‘management development’. Who is associated with the “Learning Organizations”? 5. 2.
4. Refer section 3.1 Introduction Objectives 4.2 2.3 3. Refer section 3.6 4.2 Survey Feedback 4. Refer section 3.3 Process Consultation 4. Refer section 3. Management development Answers to TQs: 1.Organization Development – Interventions Unit-04.7 5. Refer section 3.4 Grid Training 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .6 Team-building . MU0002-Unit-04.Organization Development – Interventions Structure: 4.5 Leadership Development 4. Peter Senge 5.
Thus. 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. team-building. many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others. French and Bell have defined OD intervention as: “Sets of structured activities in which selected organizational units (target groups or individuals) engage with a task or a sequence of tasks where the task goals are related directly or indirectly to organizational improvement.8 Change Agents 4. survey feedback. process consultation. education and training. mediation and negotiation activities. techno-structural activities. Nevertheless. and organizational level. For example. interventions may be required to change people at all these levels.7 Inter Group Development 4. and organizational culture. the classification of OD interventions shows variation. various consultants and practitioners have different opinions about the activities which can be included in interventions. However. Therefore. 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.” There are various OD interventions and they are classified in different ways. Further. interpersonal level.10 Summary 4. A meaningful classification of OD interventions may be based on the improvement in the behaviour of people in the organization as OD is basically a behavioural approach. the classification appears to be more relevant because it may specify the .12 Answers to SAQs and TQs 4. inter-group level. work group. Interventions constitute the action thrust of organization development.4.9 Role of Change Agents Self Assessment Questions 4. group level. inter-group activities.11 Terminal Questions 4. People’s behaviour may be relevant to understand at individual level. they make things happen. French and Bell have suggested twelve families of OD interventions: diagnostic.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. management grid.
the other major thrust in the development of OD has come from survey research and feedback of data. To assist the group members to improve the relationships through discussion of common problems. OD efforts were attempted through sensitivity training. managerial work facilitation. The basic objectives of survey feedback are as follows: 1. have been added. The questionnaire may include different aspects of organizational functioning.range of change that an organization requires. Data Collection: The first step in survey feedback is data collection usually by a consultant based on a structured questionnaire. you will be able to: · Describe survey feedback. peer support. USA developed a comprehensive questionnaire for conducting survey in different aspects of an organization. peer work facilitation. . peer goal emphasis. Though some type of survey method was prevalent in various organizations earlier. ISR has prepared a questionnaire which includes questions on leadership – managerial support. Process of Survey Feedback Survey feedback usually proceeds with sequential activities involving data collection. 4.2 Survey Feedback Besides laboratory training (sensitivity and grid). Historically. and follow up. 2. managerial goal emphasis. grid training. Institute for Social Research (ISR) of University of Michigan. Our further discussion follows this development. Subsequently. and participative goal-setting which has become more popular as management by objectives. · Role of change agents. team. · Realize the importance of team-building. · Explain grid training. 1. developing action plans based on feedback. feedback of information. Objectives: After studying this unit. and survey feedback method.building. To assist the organization in diagnosing its problems and developing action plan for problemsolving. other techniques like process consultation. · Describe process consultation. and peer interaction facilitation.
Evaluation of Survey Feedback Survey feedback provides a base for many managerial actions which has been confirmed by various research studies. Feedback of Information: After the data are analyzed. co-ordination between departments. 3. 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. 3. Second. even if valid and reliable information is collected. Decision-making and problem-solving abilities of organization can be improved tremendously because this approach applies the competence and knowledge throughout the organization and the problems faced by it. data are classified. 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. First. all attempts to diagnose the problems will be abortive and futile. satisfaction with the pay. tabulated. The feedback may be given either orally or in a written form. 2. it should be constructive and suggestive. and satisfaction with the work group. and analysis is made to arrive at some meaningful conclusions. In oral system of feedback. feedback is given to the persons who have participated in the fulfilling up of questionnaire. In particular. survey feedback contributes in the following manner: 1. decision-making. and general management. by the consultant. rather. Follow-up Action: Survey feedback programme is not meaningful unless some follow-up action is taken based on the data collected. Alternatively. control within the company. 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. follow-up action may be in the form of developing some specific OD interventions particularly process consultation and team-building. satisfaction with the job. The questionnaire is administered personally either by the members of consulting firm or by organization’s personnel. it is provided through group discussion or problem-solving sessions conducted by the consultant. It is cost-effective means of implementing a comprehensive OD programme making it a highly desirable technique. However. and satisfaction-satisfaction with the company. After the questionnaires are completed. 2. it is of no use unless follow-up action is taken based on the .organizational climate-communication with the company. If it is biased. satisfaction with the supervisor. Whatever the method of giving feedback is adopted. motivation. effectiveness of survey feedback depends on two factors. It generates great amount of information efficiently and quickly which can be used in solving problems faced by the organization and its members.
Information collected is processed to diagnose the problems and their underlying causes.information. and interview about the problems. and act upon the process events which occur in the client’s environment. 2.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. Edgar Schein. understand. time. Define the Relationship: At this stage. client and consultant enter into agreement covering various aspects of consultancy services like fees. it provides base for action for change. This data gathering occurs simultaneously with the entire consultative process. spelled out at the initial stage. group norms. roles and functions of group members. A survey feedback is not a technique in itself for change. The basic content of P. 4. 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. At this stage. communication. observations.” The basic objectives of P. Initiate Contact: This is beginning stage of P.C in which the client makes initial contact with the consultant with a view to solve the problems faced by the organization which cannot be solved by existing processes or resources.C are communicated to them with a view that they co-operate with the consultant. etc. To bring desired change in the various organizational processes like leadership. To understand how various organizational processes can be linked to objective achievement in the organization.3 Process Consultation Process Consultation (P. 3. At this stage.C are as follows: 1. 4. the leading writer and consultant on P. group decision-making and problemsolving.C programme of OD. and spelling out services. Gather Data and Make a Diagnosis: Information is collected from various sources thorough the use of questionnaires. and inter-group co-operation and conflicts.C has defined it as follows: “The set of activities on the part of the consultant which help the client to perceive. . the consultant is introduced to the organizational members and basic objectives of the P. the client’s expectations and hoped-for results are also decided. Steps in Process Consultation Schein has suggested following specific steps which the consultant would follow in a P. 1. 2.C) is a technique for intervening in an ongoing system.
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. enabling individuals and groups to assess their own strengths and weaknesses.4 Grid Training Grid training is basically based on grid organization development developed by Blake and Mouton. he assists the organizational members to incorporate those changes. To study the organization as an interactive system and apply techniques of analysis in diagnosing its problems. 4. significant correlation between the outcomes has not been found. groups. focuses on skills. Though he is involved only in suggesting the various changes in the processes. and processes necessary for effectiveness at the individual. both these problems may be overcome by engaging a suitable consultant and developing willingness among the members for change. From this point of view.C is also not free from criticisms. One basic reason for this phenomenon may be the consultant’s inability to steer the organization out of troubles. However. the consultant disengages from the client organization by mutual agreement but leaves the door open for future involvement. It is a comprehensive and systematic OD programme which aims at individuals. 6. P.C programmes.C is very effective intervention for organizational improvement. It utilizes a considerable number of instruments. 3. Intervene: At this stage. and/or structural change. Reduce Involvement and Terminate: When the work of P. Its specific objectives are as follows: 1. In the review of various P. . The whole orientation is to develop managerial style through the application of behavioural science knowledge. knowledge.5. Evaluation of Process Consultation: Process consultation is quite in-depth activity of OD in which the consultant plays a major role. P. To evaluate the styles of leadership and techniques of participation to produce desirable results. the consultant intervenes in the organizational processes by using different interventions like agenda-setting. The grid organization development consists of six phases. and total organizational levels. like other OD intervention techniques. To understand the importance and rationale of systematic change.C is completed. coaching. However. and the organization as a whole. inter-group. feedback. group. Process of Grid Training The basic content of grid organization development is managerial grid as discussed.
Action steps to move towards the ideal are developed and assigned to individuals who may be engaged in building co-operative inter-group relationships. 4. The thrust is on moving groups from conflict to co-operation. 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. and alike.5 Leadership Development .1. the focus shifts to the total organization and to develop skills necessary for organizational excellence. some of them have not supported the claims made by Blake and Mouton. 6. they maintained the same stand. it discounts reality. The skills relating to planning. the focus is on inter-group behaviour and relations. In this light. The members of the organization are trained for achieving this excellence. Evaluation of Grid Training Most of the support of grid training has come from its originators-Blake and Mouton. 5. therefore. Grid training programme is criticized on the basis that it lacks contingency approach and. Each group may be given assignment to evolve strategy for making ideal organization with the help of the consultant. grid training has some positive contributions for organizational effectiveness. 4. Systematic Critique: In this stage. Furthermore. The action is designed to identify the characteristics of the ideal organization.” In a later work. Developing Ideal Strategic Corporate Model: At this stage. Managerial grid: It covers various aspects of assessing managerial styles. and teamwork. 2. traditions. the various programmes may be redesigned. Each group separately analyses the ideal inter-group relations. grid training is a non-rigorous method. it appears that this type of educational strategy can help to make significant contributions to organizational effectiveness. Though research studies on the application of grid training are not many. Further. objective-setting. The strategy is then implemented. communication skills. The analysis will bring out the shortcomings that may be there. Inter-group Development: At this phase. the various efforts from phase 1 to phase 5 are evaluated and critical analysis is made. and problemsolving are also developed. problem-solving. in spite of these criticisms. Teamwork Development: The focus in this stage is to develop teamwork by analyzing team culture. 3. The individuals try to learn to become managers by practice. They have maintained that “managerial and team effectiveness can be taught to managers with outside assistance.
which. The literature on the subject indicates that the nature of the change is secondary to the perceptions that employees have regarding the ability. brings hope for better times in the future. For example. if allowed to go on for too long. competence. while at the same time recognizing that tough decisions need to be made. complete communication that is timely. problems in . Also during these times of change. have no faith in the system or in the ability of leaders to turn the organization around. and that makes coping with drastic change much easier. In a climate of distrust. employees will look towards the leaders for a number of things. employees learn that leaders will act in indecipherable ways and in ways that do not seem to be in anyone’s best interests.” A possible reason for this phenomenon is that people in the organization work in groups (teams) and the effectiveness of these groups ultimately determine organizational effectiveness. Unfortunately. how synergy is generated through team-work. As against these. and applied OD intervention for organizational improvement. but more importantly. if haven’t established a track record of effective leadership. and credibility of senior and middle management. by the time you have to deal with difficult changes. If you are to manage change effectively. Before going through how team-building exercise can be undertaken to develop effective teams. During drastic change times. results in an organization becoming completely nonfunctioning. The best way to summarize is that there is a climate of trust between leader and the rest of the team. must labor under the weight of employees who have given up. during and after change implementation is THE key to getting through the swamp. confident and effective decision-making. 4.When change is imposed (as in downsizing scenarios). The existence of this trust. We can call these Preparing For the Journey. Leadership before. and After Arrival. Slogging Through The Swamp.6 Team-building Various OD interventions discussed so far have their specific implications for OD and. Poor leadership means an absence of hope. are closely associated with a very few advocates and practitioners. employees expect nothing positive. it may be too late. and regular. In organizations characterized by poor leadership. teambuilding is the most important. concerned and committed to their welfare. The organization must deal with the practical impact of unpleasant change. you need to be aware that there are three distinct times zones where leadership is important. widely accepted. therefore. clearly the most important determinant of "getting through the swamp". lead. employees will expect effective and sensible planning. employees will perceive leadership as supportive. We will look more carefully at each of these. let us consider the life cycle of a team. is the ability of leadership to…well. 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. The Role of Leadership In an organization where there is faith in the abilities of formal leaders.
start to accept others. storming. and features of effective team so that team-building exercises focus more sharply on developing effective team. they learn to handle complex problems that come before the team. each team has to be adjourned.team-work. At this stage. 4. The team begins to move in a co-operative fashion and a tentative balance among competing forces too is struck. The . because of individual differences. Storming: After the forming stage which is mostly related to perceiving and assessing each other. they do represent a broad pattern that may be observed and predicted in many settings across team’s time together. At this stage. Life Cycle of a Team When a number of individuals begin to work at interdependent jobs. performing. team members get introduced to each other if they have not interacted earlier. norming. They share personal information. and arguing for appropriate strategies to be adopted for achieving team’s goals. and begin to turn their attention to the group tasks. These stages are: forming. 4. different members may experience varying degree of tension and anxiety out of this interaction pattern. Functional roles are performed and exchanged as needed.1: Life Cycle of a Team Though these are not followed rigidly. Adjourning: Adjourning is the end phase of cycle of a team. jockeying for relative control. and tasks are accompanied efficiently. These typical stages of life cycle of a team are described below: 1. and adjourning as shown below: Fig. 2. members start interaction among themselves in the form of competing for status. 5. Sooner or later. interaction among team members is often cautious especially when they are new to one another. team members start settling. even the most successful teams as they have completed their mission. Norming: After storming stage. Forming: At the first stage of the life cycle. 3. group norms emerge to guide individual behaviour which form the basis for co-operative feelings and behaviour among members. Performing: When team members interact among themselves on the basis of norms that have emerged in the team. 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. they often pass through several stages as they learn to work together as a team.
a team is created to undertake a task which requires a variety of skills and single individual cannot perform that task alone. This phenomenon may happen in teams in work organizations too. 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. that is. and so on. 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. other factors remaining the same. 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. etc. This effect can be described as 2+2=5 effect. Putting the concept of synergy in teamwork means members of the team are complementary to each other and they contribute positively to one another. and still expect to share the credit and obtain the same marks from the professor since he will be concerned with determining who worked and who did not. in one experiment. 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. committee. the team would be effective. intense social relationship among members comes to an end. fail to perform their assigned tasks. concept of stages is significant in the context of the nature of problem which team members are likely to face in team-work. students find that one or two students do not put their weight for the completion of the project. the complementarity among members is achieved. . 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. To the extent.adjournment phase takes place in the case of those teams which are created for some special purposes like task force. synergistic effect is not automatic but depends on the complementarity of different elements that are put together and the way they interact among themselves. team-work does not necessarily spurt group efforts.” Thus. They rely on the fact the more reliable members will complete the project without their help. After the adjournment of the team. In such an assignment. how a particular element affects another and is affected by it. A simple phenomenon of social loafing may be observed in a group assignment to students during their study. 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. However. In fact. For example.
Even if one member lacks behind.6 pound of pressure while tugging on the rope. 2. managers at higher levels particularly at the top level should set organizational climate and culture which enthuse team members to put their best. two things are required from its members. .2 pounds. Skills and Role Clarity: For an effective team. The possibility of occurring of social loafing in a team-work increases because of the following reasons: 1. They averaged 138. super-ordinate goals and team rewards. In the above paragraph. If the organizational climate is not in tune with high achievement. When the group is not cohesive with high output norms. and attitudes. Let us see how these factors make a team effective. skills which are complementary to the team requirement and understanding of one’s own role as well as roles of other members. Therefore. individual members do not contribute to the fullest extent. team members may tend to contribute positively to the teamwork. group efforts tend to slacken. group of eight. 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. he may tend to affect others because of chain reaction just like a rotten apple injures its companions.it was found that individuals’ total efforts were much higher than the group efforts. Dropping of average output in group efforts indicates that some members of the group were not contributing as much as they did individually. we have mentioned that team effectiveness depends on the complementarity of team members. When the division of work cannot be accomplished properly and individual efforts are hard to determine. goals. When the same individuals pulled on the rope of groups of three. other factors remaining the same. 1. supportive environment. understanding of roles helps members to meet the requirement of one another thereby solving the problems which the team faces. team members may not show high degree of enthusiasm and they will use only a part of their skills in performing the jobs. Effective Team An effective team is one which contributes to the achievement of organizational objectives by performing the task assigned to it and providing satisfaction to its members. These factors are skills and role clarity. From this statement. Individuals were asked to pull alone as hard as possible on a rope attached to a strain gauge. the individual average dropped down still lower68. Supportive Environment: A team loaded with skilled members cannot perform well if the organizational climate is not supportive for that. it appears that there are many factors in an effective team. The phenomenon of social loafing can be minimized by constituting effective team for group performance. While skills are relevant for job performance. Thus.
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.
(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
Once the causes of the difficulty have been identified. this has been a subject to which change efforts have been directed. 2. each group meets independently to develop lists of its perception of itself. listening. 2. It helps developing communication within the group and inter-group and overcoming many psychological barriers that block communication flow. and feedback skills). though. and perceptions that groups have of each other. team-building has been termed as one-sided effort and it suffers from the following limitations: 1. communicating. As a result. It seeks to change to attitudes. the other group. team-building has a positive outlook. stereotypes. the groups can move to the integration phase – working to develop solutions that will improve relations. It improves the organization’s problem-solving and decision-making ability. and how it believes the other group perceivers it. In this method. and the groups look for the causes of the disparities. Differences are clearly articulate. one of the more Popular methods emphasize problem solving. In general. etc. it is not that effective in isolation. However. The groups then share their lists. structure. . in different degrees. 3.. It helps in developing effective interpersonal relationships by stimulating the group members for that. there have been calls for combining team-building with organization behaviour modification approaches. Team-building becomes a complicated exercise when there is frequent change in team members. It focuses only on work groups and other major organizational variables such as technology. are not given adequate attention. In spite of these problems.organization’s outcomes. monitoring. Although there are several approaches for improving intergroup relations.7 Inter-group Development A major area of concern is OD is the dysfunctional conflict that exists between groups. One such suggestion is to use a task hierarchy to reinforce the team as it progresses up a behaviour skill hierarchy (for example. after which similarities and differences are discussed. 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. Therefore. team-building contributes to the organizational performance in the following manner: 1. 4. However.
cases and experiential learning etc. Because they are from the outside these individuals an offer can offer an objective perspective often unavailable to insiders. internal staff specialists or managers when acting as change agents. He has to educate people on the need and importance o change using a variety of methodologies – lectures. The consultant may fulfill a variety of functions. however. role-plays and instruments. employees of the organization. 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. Outside consultants. films. internal management often will hire the services or outside consultants to provide advice and assistance.9 Role of Change Agents The change agent may play different roles according to the need of organization development . changing (intervening) and refreezing. enabling the client to let off steam: as the ignition to spark action. but one thing he/she is not the driver”. as the shock absorber when the going is rough. may be more thoughtful (and possibly cautious) because they to live with the consequences of their actions. as the break for too quick action. culture. operating procedures. presentations. 4. 4. can now be created for further diagnosis and to begin to formulate possible alternative actions that will improve relations. .8 Change Agents Change agents: Can be managers or nonmanagers. For major change efforts. group discussions. and personnel. According to Curtis Mial: “The Consultant may serve as the exhaust value. or outside consultants. or as fog lamp when the future is hazy. are disadvantaged because they usually have an inadequate understanding of the organization’s history. with members from each of the conflicting groups.These three roles are having been brief described below: Consultant A consultant is a professional (internal or external) who applies behavioral Science knowledge in an ongoing organization (or client system) with clear objectives of managing change and improving effectiveness. as the radiator absorbing some of the heat of the controversy. The trainer role is most widely and intensively used at all stages of a change project: unfreezing. as the accelerator to build up momentum. In contrast.Subgroups. Trainer A change agent needs to be a trainer and educator.
diagnosis. What is Grid Training? How does it help in improving individual performance in an organization? 2. team-work does not necessarily spurt group efforts 4. attitudes and beliefs. Data collection.10 Summary OD intervention strategies are various activities which a consultant and client organization performs for improving organizational performance. 4. ________is antithesis of synergy in team-work which suggests that people working together on a common task may actually decrease their individual efforts. 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.11 Terminal Questions 1. It focuses on skills. feedback of information. knowledge and processes necessary for effectiveness at the individual. Training is used both in ‘content orientation’ and process orientation’.Training is required for enhancing knowledge. inter-group and total organization levels. Self Assessment Questions 1. Grid Training was developed by –––––––––––– 3. 2. evolving best strategies for change by assessing alternatives and the important stages in a change project where the change agent has to be a Researcher. What is survey feedback as an intervention of OD? How does it provide base for other OD interventions? . developing action plans based on feedback and follow-up. Survey feedback usually proceeds with sequential activities involving data collection. Teambuilding is most important. Sensitivity training focuses on small group ranging from ten to twelve. 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. generation of new behavioral science knowledge. group. In process consultation. skills and change in behavior. Useful hypothesis are to be formulated and tested. The first step in survey feedback is ______ usually by a consultant based on a structured questionnaire. widely accepted and applied OD intervention for organizational improvement. Grid training focuses on individuals and groups to assess their own strengths and weaknesses.
Refer section 4.6 4. Assumptions. Refer section 4. Refer section 4. 4.3. Explain Change agents and discuss the role of change agents in detail. and Beliefs in Organization Development Structure: 5.4 2.1 Introduction Objectives 5.2 Definitions and . Assumptions. Blake and Mouton. MU0002-Unit-05-Values.12 Answers to SAQs and TQs SAQs: 1. Data collection 2. What is team-building? What are the stages of life cycle of a team? 4. Refer section 4. Social loafing Answers to TQs: 1. 3. Beliefs in Organization Development Unit-05-Values.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 3.
3 Chronology of Events in Management and Organization Thought 5. · State the implications of OD values and assumptions. and beliefs constitutes an integral part of organization development.5. · List the chronology of events of values. assumptions. you will be able to: · Explain the meaning of values.6 Summary Self Assessment Questions 5.5 Implications of OD Values and Assumptions 5.2 Implications for Dealing with Groups 5. 5. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers. .5.4 Early Statements of OD Values and Assumptions 5.1 Implications for Dealing with Individuals 5.7 Terminal Questions 5.2 Definitions A belief is a proposition about how the world works that the individual accepts as true. shaping the goals and methods of the field and distinguishing OD from other improvement strategies.5. · Give the statement of OD values and assumptions. beliefs and assumptions.1 Introduction A set of values. beliefs and assumptions.3 Implications for Designing and Running Organizations 5. Most of these beliefs were formulated early in the development of the field.5. and they continue to evolve as the field itself evolves. Objectives: After studying this unit. it is a cognitive fact for the person.8 Answers to SAQs and TQs 5.
view all people as having the potential for growth and development. and goodwill are the tools for making progress. . dishonesty). strongly held. free speech) and what is undesirable or ‘bad’ (e.. assume that everyone has intrinsic worth. increasing awareness of the dysfunctions of bureaucracies.. optimistic. and the need for justice through the rule of law and due process. values. Thus. greater understanding of individual motivation and group dynamics. Major ingredients of the zeitgeist that influenced OD values and assumptions are presented here in a brief chronology.g. research on the effects of different leadership styles.3 Chronology of Events in Management and Organization Thought Frederick Winslow Taylor’s ‘The Principles of Scientific Management’ (1911) launched the scientific management movement with its emphasis on time and motion studies and breaking jobs into small. and the like. and democratic. the laboratory training movement. treat people with respect and dignity. Simple. assumptions." Assumptions are beliefs that are regarded as so valuable and obviously correct that they are taken for granted and rarely examined or questioned. relatively unexamined beliefs accepted as the truth. and beliefs provide structure and stability for people as they attempt to understand the world around them. reason. the importance of fair and equitable treatment for all. Values. Optimistic values posit that people are basically good." or slacking off. repetitive tasks minimized the skills required to do the job. As these ingredients accumulated. the right of people to be free from arbitrary misuse of power. 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. that progress is possible and desirable in human affairs. Taylor’s methods quickly swept the country and the world as the way to organize work. the human relations movement. repetitive tasks in an attempt to find "the one best way" to do each job. or spirit of the time. and assumptions being.Values are also beliefs and are defined as: "Beliefs about what is desirable or ‘good’ (e. Expert engineers and supervisors designed each task and ensured it was done correctly. Humanistic values proclaim the importance of the individual: respect the whole person. they were fashioned into a coherent value foundation for the theory and practice of organization development. the clash between fascism and democracy in World War II. 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 beliefs are all cognitive facts or propositions. and that rationality. OD values tend to be humanistic.g. 5. with values being beliefs about good and bad. assumptions. Democratic values assert the sanctity of the individual.
Their simple. and practice since the late 1920s have focused on the shortcomings of these two paradigms and how to overcome the limitations. wrote an article on “The Giving of Orders” advocating participative leadership and joint problem-solving by labour and management. impersonal rules. extensive division of labor. most efficient way to organize people. theory. The Famous Hawthorne Studies (1927 to 1932) were conducted at the Hawthorne plant of Western Electric Company. and White demonstrated that democratic leadership was superior to authoritarian leadership and laissez-faire leadership in affecting group climate and group performance. A strong hierarchy of authority. organizations were not machines. repetitive jobs left them feeling alienated and dispirited. In a sense. Lippitt (1939). much of the research. and by Homans in 1950 profoundly and irreversibly affected people’s beliefs about organizational behaviour. 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. authoritarian leadership caused dependency. their feelings and attitudes about the work. ‘The Functions of the Executive’ by Chester 1. Some early experiments were conducted in the late 1930s. Reports on these studies by Mayo in 1933 and 1945. . Group norms had more powerful effects on productivity than economic incentives. Barnard (1938) presented insights from his experiences as President of the New Jersey Bell Telephone Company. Research by Lewin. Democratic leadership seemed to bring out the best in the groups. Group Dynamics (1940) – The scientific study of groups using experimental research methods-was launched by Kurt Lewin and his students. These approaches possessed many desirable features. but also contained serious flaws that led to unintended consequences. Much of her career was devoted to finding ways to reduce adversarial relationships between workers and management. aggressiveness and poor performance. apathy. People were not cogs. People came to work as whole people. 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. Barnard viewed organizations as social systems that must be effective (achieve goals) and efficient (satisfy the needs of employees). and rigid procedures would create a well-oiled human machine called the organization. Mary Parker Follett (1926). and the supervisor determined their performance. a management theorist and astute observer of labourmanagement relations. by Roethlisberger and Dickson in 1939. His acceptance theory of authority proposed that authority derives from the willingness of subordinates to comply with directions rather than from position power. the work environment.
French’s (1948) article. Laboratory training taught people how to improve interpersonal relations. The Hawthorne Studies (1940s to 1960) spawned the human relations movement that was in full flower from the 1930s to the 1960s. proposed that the leadership functions of a group should be shared between the leader and group members and showed how that could be done. Motivation and Personality by Abraham Maslow (1954) presented a new view of human motivation. lack ambition.” 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. Rogers’ focus on effective interpersonal communications was applicable to superior-subordinate relations. 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. Those who subscribe to Theory X assume that people are lazy. Humanistic and democratic values suffused the movement. increase self-understanding. P. Lester Coch and John R. The theory postulated that when lowerlevel needs are satisfied. caring social climate. a direct precursor of OD. “Overcoming Resistance to Change. healthy adults. Carl Rogers’ Client-Centered Therapy (1951) demonstrated the efficacy of non-directive psychotherapy. greater attention to workers’ social needs. These years witnessed the beginnings of the laboratory training movement (1946 and 1947). Eric Trist and Ken Bamforth of the Tavistock Clinic (1951) published the results of their work in British coal mines. Douglas McGregor wrote ‘The Human Side of Enterprise’ (1960) in which he described his famous Theory X and Theory Y assumptions. pioneers in laboratory training. This article introduced the concept of organizations as sociotechnical systems. Ken Benne and Paul Sheats (1948). The human relations movement advocated participative management. training in interpersonal skills for supervisors. 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 a general “humanizing” of the workplace. dislike responsibility. higher-level needs become dominant. are self-centered. 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. and understand group dynamics. which holds that individuals have within themselves the capacity to assume responsibility for their behaviour and mental health when provided with a supportive.
and authoritarian leadership gave way to increasing doubts about these organizational practices as theory and research pointed up their limitations. and need to be led. and negative consequences. and introduced practicing managers to the concepts of need hierarchy and self-actualization. an organic organization form is preferred. practice. and organizations that is. In an environment of slow change. Organic structures encourage decentralized decision making and authority. open communications. The Addison-Wesley Publishing Company “OD Six-Pack. The task of management is to change organizational structures. to assume responsibility. and greater individual autonomy. and to pursue organizational goals if given the chance and the social environment to do so. The Bennis and Beckhard quotations come from their books in the Addison-Wesley Six-Pack. To summarize the intellectual climate of this period. a mechanistic organization structure may be appropriate. Values have always been an integral part of OD. Burns and Stalker (1961) described two very different forms of organization structuremechanistic and organic. one-on-one leadership style.indifferent to the organization’s needs. and observations utilized by OD practitioners. In addition to presenting Theory X and Y. We will examine three early statements regarding OD values that had a significant impact on the field. These six books presented the theory. goal-oriented. . optimistic. in an environment of high change. humanistic. Out of this zeitgeist.” (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. organization development practitioners formulated a set of values and assumptions regarding people. management practices. bureaucracy. as we have said. the initial enthusiasm for scientific management. 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 shares decision-making with the work group. summarized the state of organization development a decade or so after its inception. ‘The Social Psychology of Organizations’ by Daniel Katz and Robert L. Those who subscribe to Theory Y assume that people have the potential to develop. This chronology captures most of the significant influences from research. This leadership style was contrasted with an authoritarian. resist change. groups. and democratic. and values of the field. dysfunctions. Kahn (1966) presented the first comprehensive exposition of organizations as open systems. and human resource practices to allow individual potential to be released. this book popularized Maslow’s motivation theory.
and unprincipled power." Mechanical systems encourage "centralized decision-making" while organic systems encourage "wide sharing of responsibility and control." that is. the capacity for functional groups to work more competently. 1. Stalker used the term “mechanistic” in contrast to “mechanical." 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. In his 1969 book he described "several assumptions about the nature and functioning of organizations" held by OD practitioners. the basic units of change are groups." like pushing buttons. M. Therefore. Another major player in the field was Richard Beckhard. more choices become available and hence better decisions are made.” For example. The basic building blocks of an organization are groups (teams). Bennis clarified some of the salient differences between mechanical systems and organic systems. not individuals. Rather than the usual bureaucratic methods which rely mainly on suppression. · Development of more effective "team management. Here is his list. He listed these normative goals as follows: · Improvement in interpersonal competence. · Development of better methods of conflict resolution. ." Mechanical systems insist on "strict division of labour and hierarchical supervision" while organic systems foster "multi-group membership and responsibility. more rational and open methods of conflict resolution are sought.Writing in 1969. Warren Bennis proposed that OD practitioners (change agents) share a set of normative goals based on their humanistic/ democratic philosophy. mechanical systems rely on "authority-obedience relationships" while organic systems rely on "mutual confidence and trust. compromise. The earlier work by Tom Burns and G. · A shift in values so that human factors and feelings come to be considered legitimate. · Development of increased understanding between and within working groups in order to reduce tensions. · Development of organic rather than mechanical systems. This is a strong reaction against the idea of organizations as mechanisms which managers "work on. Through focused attention and through the collection and feedback of relevant data to relevant people.
and confidence between and across levels. · Away from walling off the expression of feelings toward making possible both appropriate expression and effective use. toward seeing them as being in process. rather than in a particular role or level of hierarchy. 5. · Away from avoiding facing others with relevant data toward making appropriate confrontation. and individuals continuously manage their affairs against goals. · Away from a view of individuals as fixed.2. Decision-making in a healthy organization is located where the information sources are. · Away from resisting and fearing individual differences toward accepting and utilizing them. Robert Tannenbaum. · Away from maskmanship and game-playing toward authentic behaviour. One goal of a healthy organization is to develop generally open communication. not the basis of managerial strategy. 3. a professor and Sheldon Davis. presented their view of OD values in a 1969 article. · Away from utilizing an individual primarily with reference to his or her job description toward viewing an individual as a whole person. · Away from avoidance of negative evaluation of individuals toward confirming them as human beings. 6. mutual trust. sub-units of organizations. 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. They asserted that an important shift in values was occurring and that this shift signaled a more appropriate and accurate view of people in organizations. · Away from use of status for maintaining power and personal prestige toward use of status for organizationally relevant purposes." People affected by a change must be allowed active participation and a sense of ownership in the planning and conduct of the change. Organizations. "People support what they help create. director of organization development. Controls are interim measurements. 4. . An always relevant change goal is the reduction of inappropriate competition between parts of the organization and the development of a more collaborative condition. · Away from distrusting people toward trusting them.
give autonomy. We think most organization development practitioners held these humanistic and democratic values with their implications for different and "better" ways to run organizations and deal with people. The first assumption is that most individuals have drives toward personal growth and development if provided an environment that is both supportive and challenging. decentralized decision making.1 Implications for Dealing with Individuals Two basic assumptions about individuals in organizations pervade organization development. authentic interpersonal relations.· Away from avoidance of risk-taking toward willingness to risk. remove obstacles and barriers. set high standards. and reward success. the legitimacy of feelings. participation and contribution by all organization members. encourage risk-taking. · Away from a primary emphasis on competition toward a much greater emphasis on collaboration. autocratic. 5. The second assumption is that most people desire to make. These values and assumptions may not seem profound today.5.5. Beliefs such as trust and respect for the individual. challenge. Most people want to develop their potential. permit failure. We answer the question: What are some of the implications of OD assumptions and values for dealing with individuals. · Away from a view of process work as being unproductive effort toward seeing it as essential to effective task accomplishment. support. The humanistic values prompted a search for better ways to run organizations and develop the people in them. A tremendous amount of constructive energy can be tapped if organizations realize and act on these assumptions. and arbitrary management practices as well as the dysfunctions of bureaucracies. and are capable of making. The implications of these two assumptions are straightforward: Ask. The democratic values prompted a critique of authoritarian.2 Implications for Dealing with Groups . give responsibility. a greater contribution to attaining organization goals than most organizational environments permit. and organizations? 5. collaboration and co-operation. The people doing the work are generally experts on how to do it and how to do it better.5 Implications of OD Values and Assumptions Let us examine specific assumptions and their implications for organization leaders and members. open communication. groups. appropriate uses of power. but in the 1950s and 1960s they represented a radical departure from accepted beliefs and assumptions. and so forth were seldom espoused and rarely implemented in the vast majority of organizations at that time. 5. listen.
5. invest training time and money to increase group members’ skills. Therefore. support. most people are capable of making greater contributions to a group’s effectiveness and development. 5. and so on-are obsolete. formalized cross-functional communication. personal growth. What occurs in the work group. Dealing appropriately with feelings and attitudes increases the level of interpersonal trust. And because suppressed feelings and attitudes adversely affect problem-solving. in which one side wins and the other side loses. The question becomes not how A can get B to perform better. Second. not individuals. group members should be encouraged to learn to deal effectively with positive and negative feelings. at both the formal and informal levels. group members should assist the leader with the multiple roles required for group effectiveness. One implication is that group members should receive training in group effectiveness skills such as group problem-solving and decision-making. emphasis on topdown directives. including how persons C. facilitation. conflict management. Frequently the challenge is broader. most people wish to be accepted and to interact co-operatively with at least one small reference group. Finally. such as a work group. This skill is a trainable one. 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. Hence. They cannot meet the demands of the marketplace. leaders need to give important work to teams. By implication. grouping by specialized function. and job satisfaction. and so on. Third. leaders should invest in groups: Invest the time required for group development. Implications of these assumptions are several.3 Implications for Designing and Running Organizations Clearly. traditional hierarchical forms of organization-fairly steep pyramid. in addition. are dysfunctional . First. Another assumption is that the formal leader cannot perform all the leadership and maintenance functions required for a group to optimize its effectiveness. It is especially important that leaders adopt a team leadership style. the family. including peers and boss. Such problems have the greatest chance of constructive solution if all parties in the system alter their mutual relationships. a church or club group. the assumption is that many attitudinal and motivational problems in organizations require interactive and transactional solutions. Also. invest energy and intelligence in creating a positive climate. experimenting with new organization structures and new forms of authority is imperative. and usually with more than one group. greatly influences feelings of satisfaction and competence. and co-operation within the group. and interpersonal communication.Several assumptions relate to the importance of work teams and the collaborative management of team culture. 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. one of the most psychologically relevant reference groups for most people is the work group. In addition. To do this. D. are the best way to satisfy social and emotional needs at work. not a one-on-one leadership style. adherence to the chain of command. a growing awareness that “win-lose” organizational situations. Let teams flourish because they are often the best way to get work done and. and E can support these changes.
This notion suggests it is good to have a developmental outlook and seek opportunities in which people can experience personal and professional growth. The rapid technological. optimistic and democratic." as behavioural scientists and managers continue to develop better understanding of authority structures. quality of output. and empowering. they are the source of productivity and profits and should be treated with care. Concluding Comment: The field of organization development rests on a foundation of values and assumptions about people and organizations. and organizational changes taking place assure that tomorrow will bring new definitions of what is "true" and new beliefs about what is "good. The belief that people can grow and develop in terms of personal and organizational competency tends to produce that result. Finally. OD values tend to be humanistic. These OD values were considered revolutionary when they emerged in the 1950s. societal.6 Summary The field of OD rests on a foundation of values and assumptions about people and organizations. The belief that people are important tends to result in their being important. Values. Values. values are never static. These beliefs help to define what OD is and guide its implementation. By implication. Such an orientation creates a self-fulfilling prophecy. developmental. they change over time. Chronology of events in management and OD tremendously influenced OD practitioners.over the long run and highlight the need for a “win win” attitude. A belief is a proposition about how the world works that the individual accepts as true. organizing structures. Still. developmental set of assumptions about people is likely to reap rewards beneficial to both the organization and its members. This discussion was intended to articulate an appreciation of OD values and explain where they came from. Values are also beliefs. Evidence for this assumption comes from numerous examples where “putting people first” paid off handsomely in profits and performance. Creating co-operative rather than competitive organizational dynamics is a primary task of the organization’s leaders. and ways to optimize human potential. it is possible to create organizations that on the one hand are humane. The implication is that people are an organization’s most important resource. an optimistic. beliefs and assumptions are cognitive facts. and profitability. but are widely accepted today. and on the other hand are high performing in terms of productivity. assumptions and beliefs help to define what OD is and guide its implementation. 5. A key assumption in organization development is that the needs and aspirations of human beings are the reasons for organized effort in society. Self Assessment Questions .
State the assumptions of Theory X and Theory Y. Taylor 3.3 3. 4. __________ is associated with scientific management. beliefs and assumptions. Taylor’s principles of scientific management.3 . The concept of –––––––––– was introduced by MaxWeber. 2. 5. beliefs. 5. and assumptions are all –––––––––– facts. 3. Values. The outcome of –––––––– was that people were not cogs and organizations were not machines.2 2. Write a note about F.8 Answers to SAQs and TQs SAQs: 1. What was the outcome of Hawthorne Experiments? 4. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. Refer section 5. 2. F.W.1. Define concepts. W. 5. values. Douglas McGregor Answers to TQs: 1. Hawthorne experiments 5. Cognitive 2. Refer section 5. Refer section 5.7 Terminal Questions 1. _______________ gave theory X and theory Y. 3. Bureaucracy 4.
3.3.4 Participation and Empowerment .2.3.3 220.127.116.11 Socio-technical Theory and Open Systems Planning 6. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.3.3 The Burke-Litwin Model of Organizational Change 6. Refer section 5.2 Congruence among System Elements 6.3 Systems Theory 6.2 Beyond the Quick Fix 6.3 Copyright © 2009 SMU Powered by Sikkim Manipal University .2. Refer section 5.1 Kurt Lewin and Friends 6.1 Introduction Objectives 6.4 Open Systems Thinking 6.1 The Nature of Systems 6.2.2 Models and Theories of Planned Change 6.4 Porras and Robertson Model of Organizational Change 6.
11 Terminal Questions 6.7 A Normative – Re-educative Strategy of Changing 6. · Explain normative-re-educative strategy of changing The knowledge base of OD is extensive and is constantly growing. · Explain systems theory. · Describe the parallel learning structures.5 Teams and Teamwork 6. you will be able to: · Explain various models and theories of planned change. Objectives: After studying this unit.8 Applied Behavioural Science 6. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs. In this discussion. We will examine the following concepts: .12 Answers to SAQs and TQs 6. · Explain the terms ‘participation’ and ‘empowerment’.1 Introduction This unit describes the foundations of organization development theory and practice. · Realize the importance of teams and teamwork.10 Summary 6. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning.9 Action Research Self Assessment Questions 6. Here we describe what we believe are the most important underpinnings for the field. art and science which form the knowledge base upon which OD is constructed.6.6 Parallel Learning Structures 6.
Lewin’s second idea was a model of the change process itself. Models and theories depict. we can think of the production level of a manufacturing plant as a resultant equilibrium point in a field of forces. The first idea states that what is occurring at any point in time is a resultant in a field of opposing forces.1 Kurt Lewin and Friends Kurt Lewin introduced two ideas about change that have been influential since the 1940s. and specify the relationships among the variables. This concept is useful for thinking about the dynamics of change situations. describe those features as variables. The development of models of planned change facilitated the development of OD. That is. For example. The production level tends to remain fairly constant because the field of forces remains fairly constant. He suggested that change is a three-stage process: . the important features of some phenomenon. 6. With a technique called the force-field analysis. some forces pushing toward higher morale and some pushing toward lower morale. the status quo-whatever is happening right now-is the result of forces pushing in opposing directions. but pretty good for identifying the important variables involved. Several recent theories show great promise for increasing our understanding of what happens and how it happens in planned change. with some forces pushing toward higher levels of production and some forces pushing toward lower levels of production. 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. Although morale may get a little better or a little worse on occasion.2.· 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. Here we provide a framework for thinking about planned change by exploring several models from the literature. it generally hovers around some equilibrium point that is the resultant in a field of forces.2 Models and Theories of Planned Change Organization development is planned change in an organizational context. in words or pictures. we can think of the level of morale in that plant as a resultant equilibrium point. Planned change theories are rudimentary as far as explaining relationships among variables. Likewise.
Take the example of a man who smokes cigarettes and wants to quit. That is. b. Change entails moving from one equilibrium point to another. Lewin’s three-stage model is a powerful tool for understanding change situations. In stage 1. mentor. etc. and react to things differently based on a new point of view obtained through a. . But unless the person feels comfortable with dropping the old behaviours and acquiring new ones. disconfirmation creates pain and discomfort.non-smoking becomes the new equilibrium point. the person must develop a sense of psychological safety in order to replace the old behaviours with new behaviours. that is. A Three-Stage Model of the Change Process: Stage 1: Unfreezing: Creating motivation and readiness to change through a. Edgar Schein took this excellent idea and improved it by specifying the psychological mechanisms involved in each stage. unfreezing. Provision of psychological safety Stage 2: Changing through Cognitive Restructuring: Helping the client to see things. judge things. Refreezing the desired behaviour requires establishing a new field of forces to support the new behaviour. which motivate the person to change. Finally. moving to new level of behaviour. b. Scanning the environment for new relevant information Stage 3: Refreezing: Helping the client to integrate the new point of view into a. Significant relationships. believe that cigarette smoking is bad for him and that he should stop smoking. change will not occur. Identifying with a new role model. that is. the non-smoking behaviour must become permanent. Creation of guilt or anxiety c. change his behaviour from being a smoker to being a non-smoker. Refreezing the behaviour at the new level. The three-stage model says he must first unfreeze the old behaviour of smoking. he must move. The total personality and self-concept.Unfreezing the old behaviour (or situation). Next. feel things. which cause guilt and anxiety. Disconfirmation or lack of confirmation b.
This motivating evidence is gained by. Phase 4: Examining alternative routes and goals. Similar models have been developed by Kolb and Frohman and by Burke. establishing goals and intentions of action. is to integrate the new behaviours into the person’s personality. They expanded the three-stage model into a seven-stage model representing the consulting process. Phase 2: Establishing a change relationship. and attitudes. Their seven stages are as follows: Phase 1: Developing a need for change. .2 Beyond the “Quick Fix” A comprehensive change model by Ralph Kilmann specifies the critical leverage points for organizational change. the person undergoes cognitive restructuring. That is. stabilizing the changes requires testing to see if they fit-fit with the individual. Phase 3: Clarifying or diagnosing the client system’s problem. Phase 6: Generalizing and stabilizing change. This seven-stage model lays out the logical steps involved in OD consulting. 4. moving. In this phase a client system in need of help and a change agent from outside the system establish a working relationship. for example. The primary task in stage 3. identifying with ex-smokers and learning about the health risks of smoking. This phase corresponds to Lewin’s unfreezing phase. The person acquires information and evidence showing that the change is desirable and possible. Jeanne Watson. and 5 correspond ro Lewin’s moving phase. that is. 6. refreezing.In stage 2. This model has five sequential stages: 1) Initiating the program. and Bruce Westley. terminating the client-consultant relationship. These "road maps" are useful for thinking about change. and fit with the individual’s social surroundings. This phase corresponds to Lewin’s refreezing phase. Phase 7: Achieving a terminal relationship. Phases 3.2. The phrase significant relationships refer to important people in the person’s social environment-do these significant others approve of the changes? Another modification of Lewin’s model was proposed by Ronald Lippitt. Phase 5: Transforming intentions into actual change efforts.
Kilmann’s five tracks are: 1) The culture track. Initiating the program entails securing commitment from top management. The team-building track infuses the new culture and updated management skills into each work unit – thereby instilling co-operation organization-wide so that complex problems can be addressed with all the expertise and information available. . and 5) The reward system track. 3) Scheduling the "tracks"." that. cause the organization to be successful. called "tracks. Interventions include training programs. Diagnosing the problems requires a thorough analysis of the problems and opportunities facing the organization. 4) Implementing the "tracks" 5) Evaluating the results. The management-skills track provides all management personnel with new ways of coping with complex problems and hidden assumptions. 2) The management skills track. 3) The team-building track. 4) The strategy-structure track. critique practices and procedures. These problems and opportunities will be the targets of later interventions.2) Diagnosing the problems. Change programs take from one to five years to complete. and so forth. and willingness to change among members the conditions that must exist before any other improvement effort can succeed. information sharing. Kilmann describes the five tracks: What does each track do for the organization? The culture track enhances trust. communication. Scheduling and implementing the "tracks" involve intervening in five critical leverage points. when functioning properly. problem-solving sessions.
departments. On the other hand. or continuous change. Westinghouse. evolutionary. Changing culture is much more difficult than changing climate.3 The Burke-Litwin Model of Organizational Change The next model to be examined is the Burke-Litwin model of individual and organizational performance. The premise of the BurkeLitwin model is this: OD interventions directed toward structure. First-order change goes by many different labels: transactional.and second-order change. These perceptions are relatively easy to change because they are built on employees’ reactions to current managerial and organization practices. and its holistic view of organization change and development. organizational culture is defined as deep-seated assumptions. Eastman Kodak. and co-operative team efforts within and among all work groups. TRW. An OD consultant implements the tracks in a phased sequence. developed by Warner Burke and George Litwin. Ford General Electric. and beliefs that are enduring. the nature of the organization is fundamentally and substantially altered – the organization is transformed. then moving to the management skills track. and . and Xerox with good results. its identification of the five tracks as critical leverage points. Organizational climate is defined as people’s perceptions and attitudes about the organizationwhether it is a good or bad place to work. In first-order change. The reward-system track establishes a performance-based reward system that sustains all improvements by officially sanctioning the new culture. 6. and so forth. beginning with the culture track. OD programs are directed toward both first. adaptive. Second-order change goes by many different labels: transformational. One likes this model because of its comprehensive nature. some features of the organization change but the fundamental nature of the organization remains the same. friendly or unfriendly. revolutionary. or discontinuous change. values. incremental. jobs. hard-working or easy-going. The model distinguishes between organizational climate and organizational culture.2. and all resources with the new strategic direction.The strategy-structure track develops either a completely new or a revised strategic plan for the firm and then aligns divisions. General Foods. In second-order change. This model shows how to create first-order and second-order change (which the authors call “transactional change” and “transformational change”). management practices. radical. the use of updated management skills. then moving to the team-building track. with an increasing emphasis on second-order transformational change. often unconscious. Kilmann has tested his model at AT&T. work groups. and so forth. and difficult to change.
and systems cause changes in work unit climate. Transformational leadership is required for causing second-order change. Changing structure. The model also makes a distinction between transactional and transformational leadership styles. and organization culture result in second-order change. We will do so in several steps." Transformational leadership embodies inspiration which leads to new heights of performance. Now let us look at the Burke-Litwin model. Transactional leadership is sufficient for causing first-order change.1: The Transactional Factors Involved in First – Order Change . interventions directed toward mission and strategy. individual and organizational performance. in turn. which change motivation and. management practices. These two concepts come from leadership research which found that some leaders are capable of obtaining extraordinary performance from followers while other leaders are not." Transactional leadership embodies a fair exchange between leader and follower that leads to "normal" performance. Fig. Following figure shows the factors involved in first-order (transactional) change. 6. leadership.systems (policies and procedures) result in first-order change. Transactional leaders are "leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements. Transactional leadership is required to make this change in organizational climate. Transformational leaders are "leaders who inspire followers to transcend their own self-interest for the good of the organization and who are capable of having a profound and extraordinary effect on their followers.
Fig. we must change mission and strategy. One set primarily is associated with the transactional level of human behaviour or the everyday interactions and exchanges that create the climate. and organization culture produce transformational change or fundamental change in the organization’s culture. determines the kind of change required (transactional or transformational). Interventions directed toward these factors transform the organization and cause a permanent change in organization culture. To summarize. and systems produce transactional change or change in organizational climate.2: The Transformational Factors Involved in Second – Order Change On the other hand. as shown in the above figure. The bottom half of figure displays the factors involved in transactional change. if we want to cause second-order (transformational) change. and organization culture. sudden "leaps" in behaviour. The second set of dynamics is concerned with processes of human transformation. and then targets interventions toward factors of the organization that produce the desired change. these transformational processes are required for genuine change in the culture of an organization.” We consider the Burke-Litwin model to be a significant advance in thinking about planned change. 6. that is. Research by Burke and his students suggests the model performs as intended. structure. which produces changes in individual and organizational performance. . The top half of figure displays the factors involved in transformational change. The above two figures together yield the full Burke-Litwin model shown in the following figure. Burke and Litwin propose that interventions directed toward leadership. These factors are able to change the climate. Interventions directed toward management practices. The OD practitioner sizes up the change situation. leadership styles. mission and strategy. Burke says: “Thus there are two distinct sets of organizational dynamics. These factors are powerful enough to change the culture fundamentally.
Keep this framework in mind as you read the units on OD interventions because all interventions target one or more factors shown in figures. according to Porras and Robertson.4 Porras and Robertson Model of Organizational Change Jerry Porras and his associates developed a model of how organization development works. and interaction processes will affect social factors. 6. For example.3: The Burke Litwin Model of Organizational Performance and Change 6. It is how OD works. Fig. and technology. Interventions that focus on job design and work flow design will affect technology. 6. Following figure shows the work setting in the larger organizational framework. The premise modeled here is that work setting factors influence organizational members’ cognitions (they learn what is expected. which determine organizational performance and individual development. OD interventions that focus on goals. which in turn lead to individual and organizational improvements. it is described in a discussion by Porras and Peter Robertson. Organizational change occurs only when individuals change their behaviour. rewarded).Fig. and these behaviour changes occur when elements of the work setting have been modified by OD interventions. physical setting. and rewards will affect organizing arrangements. social factors. The basic premise is that OD interventions alter features of the work setting causing changes in individuals’ behaviours. This model shows how OD interventions can be linked to factors in the work setting.2. Interventions that focus on culture. The work setting plays a central role in this model and consists of four factors: organizing arrangements. required. strategies. which influence on-the job behaviours.4: Organizational Work-Setting Factors This model is extremely useful for OD practitioners and organizational leaders. management style. .
unitary whole composed of two or more interdependent parts. components. and shows how systems theory enhances the practice of OD.5: A Change-based Organizational Framework 6. that is the system. one begins by identifying the individual parts and then seeks to understand the nature of their collective interaction." Kast and Rosenzweig define system as "an organized. system denotes interdependency. Systems theory is one of the most powerful conceptual tools available for understanding the dynamics of organizations and organizational change." To summarize. This section explains systems theory. which views organizations as open systems in active exchange with their environment. describes the characteristics of systems. and Katz and Kahn were the first to apply open systems theory to organizations in 1966." Hanna says: "A system is an arrangement of interrelated parts. . and delineated by identifiable boundaries from its environmental supra. Thus. and interrelatedness among elements in a set that constitutes an identifiable whole or gestalt.3 Systems Theory A second foundation of organization development is systems theory. 6. The words ‘arrangement’ and ‘interrelated’ describe interdependent elements forming an entity. Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950." Von Bertalanffy refers to a system as a set of "elements standing in interaction.system. or subsystems.Fig. Fagen defines system as "a set of objects together with relationships between the objects and between their attributes. interconnectedness. when taking a systems approach.
resources. Boundaries of open systems are permeable. Therefore. the organization’s purposes will be reflected in its outputs. All open systems are input-throughput-output mechanisms. we examine the characteristics of open systems drawing OD expositions by Katz and Kahn and Hanna. These purposes must align with purposes or needs in the environment. the organization will cease to exist. Organizations are open systems. Organizations achieve negative entropy when they are able to exchange their outputs for enough inputs to keep the system from running down.3. Every system is delineated by a boundary.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. Systems take inputs from the environment in the form of energy. information. dynamics. and what is outside the boundary is the environment. Open systems have purposes and goals. A good rule of thumb for drawing the boundary is that more energy exchange occurs within the boundary than across the boundary. What is inside the boundary is the system. studying open systems leads to a good understanding of organizations. 6.1 The Nature of Systems The nature. money. in that they permit exchange of information.6. For example. and they export products to the environment in the form of outputs. and if the environment does not want these outputs. or transformation processes that change the inputs. conversion. They do something to the inputs via throughput. Here. and energy between system and environment. . raw material and so on. Each of these three system processes must work well if the system is to be effective and survive. and characteristics of open systems are well-known. people. Fig. the reasons for their existence.
and makes a course correction. Another characteristic of systems is equifinality. Systems achieve a steady state or equilibrium point and seek to maintain this equilibrium against disruptive forces. For example. By the same token. the principle that there are multiple ways to arrive at a particular outcome or state – systems have multiple paths to goals. mining." Here is another example of negative and positive feedback. but most are not useful. Positive feedback measures whether or not the purpose and goals are aligned with environmental needs. Negative feedback measures whether or not the output is on course with the purpose and goals. negative and positive. The usefulness of the two concepts is that they demonstrate that it is not enough to merely measure our outputs versus the intended targets. "return to earth. however. For example. and the like. Systems "code" useful information and incorporate it. specialized. say. 6. Survival of the system is equally influenced by whether or not the targets themselves are appropriate. either internal or external. while screening out other information. and the production plan calls for 100 buggy whips per month. It is sometimes called deviation-amplifying feed back. it will signal whether the environment needs and/or wants buggy whips. differentiated. Subsystems exist within larger systems. The three major input factors are: . Negative feedback tells you if you are on track with your scheduled production output. eating fads.Information is important to systems in several ways. and the system adjusts to a new goal. increased integration and co-ordination are necessary. As Katz and Kahn say: “The basic principle is the preservation of the character of the system. Say your company makes buggy whips. Systems are bombarded by all kinds of information: some are useful.2 Congruence among System Elements David Nadler and associates at Delta Consulting Group developed the congruence model for understanding organizational dynamics and change. Systems require two kinds of feedback. aerospace.” Also. With increased differentiation. and so on.3. that information is called positive feedback. they usually ignore information about other industries such as electronics. it receives information to that effect in the form of negative feedback. and complex over time. These subsystems can be arranged into a hierarchy of systems moving from less important to more important. systems tend to get more elaborated. this process is called differentiation. It is also known as deviation-correcting feedback. if a rocket ship traveling to the moon strays off its trajectory. organizations in the fast-food industry pay a lot of attention to information about their industry-nutrition. competitors. This model depicts the organization as an input-throughput-output system. Positive feedback comes from the environment. Feedback is information from the environment about system performance. If the mission (target) changes. Another characteristic of open systems is steady state or dynamic homeostasis.
and critical decisions that still influence behaviour today. knowledge. In a company that is performing poorly. knowledge. formal organization. which includes the organization’s culture informal rules and understandings. the tasks people perform to create products and service markets people. Outputs are performance at the total organization level." and which elements . perceptions. performance will suffer. unit/group level. and informal organization. If the strategy calls for entrepreneurial quickness and risk-taking and the formal organization is bureaucratic and highly centralized. important events. Fig. if people don’t have the skills and knowledge required to do the work. processes. Elements of the organization per se are labeled strategy. and individual level. and 3) History which consists of memories of past successes. people." The premise is that alignment (harmony. and the workforce’s expectations. and systems for performing the work. and technology. If the organization’s culture (informal organization) praises individual accomplishments and the work requires teamwork and collaboration. .1) The environment. and 2) Evaluating the "goodness of fit" or how well the elements "go together. performance will suffer. which imposes constraints and opportunities about what the organization can and can not do. what the organization is trying to accomplish and how it plans to do it. 2) Resources available to the organization. performance will suffer. which includes skills. 6. failures. and how things really work (versus how they are supposed to work as defined by the formal organization). which includes formal structures. You can use this model to analyze organizations with which you are familiar. fit) must be present among the system’s components’ for the organization to produce satisfactory outputs. which components are "not functioning correctly. For example.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. such as capital. work.
and that changes in one system affect the other system. training group members in multiple skills. High-performance organizations almost always use principles from socio-technical systems theory. and others at the Tavistock Institute in the 1950s.socio-technical systems theory (STS) and open systems planning (OSP)-play an important role in organization development. controlling variance at the source. Their technology became known as Open systems Planning (OSP). The thesis of STS is that all organizations are comprised of two interdependent systems. STS is the principal conceptual foundation for efforts in work redesign and organization restructuring. 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. to the workers doing the job. both realistic (likely to happen if the organization continues on its current course) and ideal (what the organization would like to see happen). Fred Emery. A number of design principles have been developed to implement socio-technical systems theory.3. To achieve high productivity and employee satisfaction. Hanna writes: In the late 1960s a small team of consultants led by James Clark. Systems models are essential for the practice of OD. Charles Krone. organizations must optimize both systems. multi-skilled teams. Socio-technical systems theory was developed by Eric Trist. two active segments of OD today. Another important application of systems theory in organization development is open systems planning. and identifying core tasks help STS consultants structure organizations and tasks for maximum effectiveness and efficiency. giving information and feedback to the people doing the work.KI Jayaram. 6. G. Principles such as optimizing the social and technical systems. forming autonomous work groups. and information to the point of action. Open systems planning entails: 1) Scanning the environment to determine the expectations of external organizations and stake-holders. and .are poorly aligned? In companies showing outstanding performance. a social system and a technical system. especially autonomous work groups (self-regulated teams or self-direct teams). 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. that is. 2) Developing scenarios of possible futures.3 Socio-technical Systems Theory and Open Systems Planning Two major variations of open systems theory. and Will McWhinney developed a technology for addressing the interface between organization and the environment.
Third. because most phenomena have more than one cause. team learning. 6.4 Open Systems Thinking Open systems thinking is required for creating learning organizations. therefore. For example.3) Developing action plans to ensure that a desirable future occurs. 6. OD practitioners expect multiple effects. And fifth. events. changing one part of a system influences other parts. Viewing organizations from this perspective has several consequences. Fourth. Senge believes that five disciplines must be mastered to create a learning organization: personal mastery. Second. fusing them into a coherent body of theory and practice. Learning organizations can cope effectively with rapidly changing environmental demands. Of all these disciplines. First.4 Participation of Empowerment One of the most important foundations of organization development is a participation/ empowerment model. events and forces. from their activities. Most OD practitioners engaged in redesign projects use a combination of socio-technical systems theory and open systems planning.3. but seen in relation to other issues. It keeps them from being separate gimmicks or the latest organization change fads. Participation in OD programs is not restricted to elites or the top people. not just its component parts. systems thinking. By enhancing each of the other disciplines. the fifth discipline. Increased participation and empowerment . one changes the system. according to Peter Senge. He says of systems thinking: “It is the discipline that integrates the disciplines. systems theory pervades the theory and practice of organization development. not single effects. a systems approach encourages analysis of events in terms of multiple causation rather than single causation. is the most important. this combination is often used in designing high-performance organizations. building shared vision. and incidents are not viewed as isolated phenomena. according to field theory (Kurt Lewin). mental models. the forces in the field at the time of the event are the relevant forces for analysis. and systems thinking. from diagnosis to intervention to evaluation. forces. it is extended broadly throughout the organization. it continually reminds us that the whole can exceed the sum of its parts. This idea moves the practitioner away from analyzing historical events and toward examining contemporary events and forces. issues. Without a systemic orientation. there is no motivation to look at how the disciplines interrelate. to change a system.” In conclusion.
Quinn and Spreitzer conclude: “Empowerment. They believed that it was about risk-taking.have always been central goals and fundamental values of the field. Researchers found that group dynamics work to overcome resistance to change. which is done by giving individuals the authority to make decisions. they must if personally connected to . to contribute their ideas. OD interventions are deliberately designed to increase involvement and participation by organization leaders and members. survey feedback. OD interventions are basically methods for increasing participation. and change. Participation is a powerful elixir-it is good for people and performance. Participation is an especially effective form of empowerment. growth. The most important contrast between the two views involves the implicit but potentially volatile assumptions people make about trust and contro1. These pillars of OD practice are validated by both research and practice. to exert influence. Robert Quinn and Gretchen Spreitzer found two vastly different views of empowerment. quality of work life programs. and to be responsible. and growth. is not something that management does to employees. To empower is to give someone power. personal initiative. and the culture audit are all predicated on the belief that increased participation will lead to better solutions. involvement and participation energize greater performance. and give more power to more people. but rather a mind-set that employees have about their roles in the organization. is the more useful perspective. search conferences." These authors believe the organic view. with its emphasis on risk-taking. the organic approach unleashes talent and energy in people that are best channeled by providing clear guidelines and boundaries. But both views contain valid ideas: for example. produce better solutions to problems." and "Have decisions made by those who are closest to the problem. and greatly enhance acceptance of decisions. Further. While management can create a context that is more empowering. Rules of thumb such as "Involve all those who are part of the problem or part of the solution. increase commitment to the organization. Participation enhances empowerment. and empowerment in turn enhances performance and individual well-being. employees must choose to be empowered. which they call "mechanistic. called "organic. One view. reduce stress levels. The entire field of OD is about empowerment." direct leaders to push decision-making lower in the organization. They describe the organic view: "The other group of executives saw empowerment much differently." is a top-down delegation of decision-making with clear boundaries and strict accountability that increases managerial control. then. and generally make people feel better about themselves and their worlds. team building. This research demonstrated that most people desire increased involvement and participation. The other view." is bottom-up and less controlling. Research on group dynamics began in the 1940s and achieved exponential growth in the 1950s and 1960s. For example. They must see themselves as having freedom and discretion. quality circles. autonomous work groups. Empowerment meant trusting people and tolerating their imperfections. treat those closest to the problem as the relevant experts.
. Teams and teamwork are among the "hottest" things happening in organizations today – gurus extol the virtues of teams. The message of this section is that putting those empowered individuals into teams creates extraordinary effects on performance and satisfaction. processes. and relationships if they are to be effective. Examples are team-building. Fourth. and team-related acronyms abound-SDTs (self-directed teams). Second. we examine the potential of teams and teamwork. status. changes those norms and values. to name just a few. that is.5 Team and Teamwork A fundamental belief in organization development is that work teams are the building blocks of organizations. In this section. Teams at Motorola produced its bestselling cellular phones. teaming. as a team. and explore ways to realize that potential. people must work together to accomplish them. and practice attest to the central role teams play in organizational success. Theory. Team Taurus developed Ford’s best-selling automobile. teams at 3M generate the hundreds of innovations that keep 3M ahead of its competition. A second fundamental belief is that teams must manage their culture. Synergy is a principal reason teams are so important. crossfunctional "design-build" teams developed the Boeing 777. quality circles. the effects on individual behaviour are immediate and lasting. recognition. teams satisfy people’s needs for social interaction. systems. research. Teams and teamwork are "in. Third. much individual behaviour is rooted in the socio-cultural norms and values of the work team. Team Saturn produced the Saturn automobile. teams create synergy. If the team. The previous discussion focused on empowerment and concluded that the act of empowering individuals greatly increased their performance and satisfaction. the noun team has become a verb. inter-group team-building. and respectteams nurture human nature. Teams and teamwork are part of the foundation of organization development.the organization. HPOs (high-performance organizations). confident about their abilities. process consultation. Teams are important for a number of reasons: First. A number of OD interventions are specifically designed to improve team performance. "The evidence is abundantly clear: Effective teams produce results far beyond the performance of unrelated individuals. STS (socio-technical systems). and capable of having an impact on the system in which they are embedded. the sum of the efforts of team members is far greater than the sum of the individual efforts of people working alone.” 6. HPWSs (high-performance work systems). QCs (quality circles). many tasks are so complex they cannot be performed by individuals.
When any one feature is lost. find innovative ways around barriers. that they achieve synergy. The net effect is that teams perform at increasingly higher levels. socio-technical systems programs. empowered teams are what the best organizations are using right now to outdistance the competition. and responsibility charting. Asea Brown Boveri. 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. Investigators are discovering why some teams are successful while others are not. Organizations using autonomous work groups or self-directed teams devote considerable time and effort to ensure that team members possess the skills to be effective groups. and that teamwork becomes more satisfying for team members. . help each other. and set ever-higher goals. Tom Peters asserts in Liberation Management that cross-functional. These interventions apply to formal work teams as well as startup teams. He uses examples from EDS (Electronic Data Systems). and individuals are trained as group leaders and group facilitators. Grid OD and techniques such as role analysis technique. the crew of the USS Kitty Hawk.parallel learning structures. to determine the characteristics that make them successful. cross-functional teams. Larson and LaFasto found eight characteristics always present: 1) A clear. autonomous. Larson and LaFasto studied a number of high-performance teams. and the like. people are trained in group dynamics and group problem-solving skills. and others. Team-building activities are now a way of life for many organizations. heart transplant surgical teams. Larson and LaFasto also discovered that the most frequent cause of team failure was letting personal or political agendas take precedence over the clear and elevating team goal. Union Pacific Railroad. team performance declines. Teams periodically hold team-building meetings. High-performance teams regulate the behaviour of team members. temporary teams. All these characteristics are required for superior team performance. role negotiation technique. including collegiate football national champions.
6 Parallel Learning Structures Parallel learning structures. Parallel learning structures are a foundation of OD because they are prevalent in so many different OD programs.” Parallel structures help people break free of the normal constraints imposed by the organization. In essence. specially created organizational structures for planning and guiding change programs. Interestingly. and acting differently than normally takes place at work. Parallel learning structures are often the best way to initiate change in large bureaucratic organizations. 6. Most socio-technical systems redesign efforts and open systems planning programs use parallel structures. High-performance organizations often use parallel structures to co-ordinate self-directed teams. and report to one of your subordinates on another team. and initiate needed changes. and employees. projects will be performed by teams. The quality of work life programs of the 1970s and 1980s used parallel structures composed of union leaders.” The purpose of the collateral organization is to deal with "ill-structured" problems the formal organization is unable to resolve.7 A Normative – Re-educative Strategy of Changing . you don’t have a parallel structure. and continuous learning. normal hierarchical considerations become obsolete for these project teams-you could be the boss of one team.Titeflex. Projects are the work of the future. High responsibility. clear objectives. What’s important is that people act in a way that promotes learning and adaptation. flexible response. The charge to members of the parallel learning structure is to think and behave in ways that are different from the normal roles and rules of the organization. The most important and difficult task for the people creating the parallel learning structure is to create a different culture within it. Considerable experimentation with collateral organizations occurred in the 1970s and 1980s. It isn’t the supplemental structure that’s important. especially when the change involves a fundamental shift in the organization’s methods of work and/or culture. talking. Bushe and Shani say: “The key thing about parallel structures is that they create a bounded space and time for thinking. parallel structures are a vehicle for learning how to change the system. and countless other organizations to demonstrate the ability of small project teams to produce high quality. At Ford Motor Company. a steering committee and working groups were used to co-ordinate the employee involvement teams. 6. 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. engage in genuine inquiry and experimentation. deciding. If you don’t implement different norms and procedures. managers. and high accountability drive these project teams to outperform traditional organization structures on every measurable dimension. superior customer service. and then leading the process. constitute another important foundation of organization development.
Organization development involves change. information. will follow their rational self-interest. will occur only as the persons involved are brought to change their normative orientations to old patterns and develop commitments to new ones. OD clearly falls within the normativere-educative category. attitudes. Chin and Benne suggest that a normative-re-educative. values. and they give more options to both the clients and the practitioner. anxieties. they impel a collaborative effort rather than a "doing something to" effort. Chin and Benne indicate the nature of the normative-reductive strategy as follows: A second group of strategies we call normative-re-educative. doubts. and OD is based primarily on a normative-re-educative strategy and secondarily on a rational-empirical strategy. and will change if and when they come to realize change is advantageous to them. and it rests on a particular strategy for change that has implications for practitioners and organization members alike. and’ negative feelings are surfaced for "working through." Solutions to problems are not a priori assigned to greater technical information but may reside in values. These implications give clients considerable control over the situation. The client system members define what changes and improvements they want to make. The norms to be changed and the form of re-education are decided by the client system members. Anything hindering effective problem solving is brought to light and publicly examined. The first type is empirical rational strategies. that is. Chin and Benne describe three types of strategies for changing. and together they define problems and seek solutions. skills. based on the assumption that change is compliance of those who have less power with the desires of those who have are power. 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. . although often OD represents a combination of the normative-reeductive and the empirical-rational strategies. or intellectual rationales for action and practice. strategy has the following implications for the practice of OD. The point here is that different strategies are available for effecting change. based on the assumptions that norms form the basis for behaviour. Sociocultural norms are supported by the attitude and value systems of individuals-normative outlooks which undergird their commitments. the practitioner intervenes in a collaborative way with the clients. according to this view. based on the assumptions that people are rational. and significant relationships. The third set of strategies is the power-coercive strategies. rather than the OD practitioner. And changes in normative orientations involve changes in attitudes. Change in a pattern of practice or action. relationships and customary ways of doing things. The rationality and intelligence of men are not denied. Evaluated against these three change strategies. The second group of strategies is normative-re-educative strategies. These strategies build upon assumptions about human motivation different from those underlying the first. not just changes in knowledge.
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. hopefully. Although human behaviour in organizations is far from an exact science. The practitioner uses treatment as the empirical test of his diagnosis. This process is customarily referred to as diagnosis and treatment. The principles of diagnosis and of treatment constitute the principles of practice..e. failure negating it and thus requiring re-diagnosis. lawful patterns of events produce effectiveness and ineffectiveness. Each type description of the diagnostic typology contains implications for a certain type of treatment. i. the treatment typology allows the practitioner to know what remedial efforts to apply to correct the problem. for example. and (2) "technology. OD is the application of behavioural science knowledge. not the individual.” Norms help determine individual behaviour and a normative-re-educative strategy of changing pervades the practice of OD. placing it in a classification scheme or typology. Thus. The diagnostic typology allows the practitioner to know what category of situation he or she has examined." applied science. re-establishes the equilibrium. 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. OD practitioners know about these patterns through research and theory.Because norms are socially accepted beliefs held by groups about appropriate and inappropriate behaviours. norms can best be changed by focusing on the group. Greenwood discusses the activities of the practitioner as follows: "The problem that confronts a practitioner is customarily a state of disequilibrium that requires rectification." Both diagnosis and treatment consist of observing a situation and. success corroborating the diagnosis. applied science or practice. pressing problems. The practitioner examines the problem situation. and skills in ongoing systems in collaboration with system members. thereby solving the problem.8 Applied Behavioural Science This foundation of OD relates to the primary knowledge base of the field.” . the object of which is knowledge to solve practical. on the basis of which he or she prescribes a solution that. by modifying a group norm or standards. with their elaborations and implications constitute practice theory. the major leverage point for change is at the group level. A conventional distinction is made between (1) "pure" or basic science. Greenwood states: “The diagnostic and treatment typologies are employed together. The aim of this discussion is to look briefly at how behavioural science knowledge becomes applied behavioural science knowledge. On this point. on the basis of selected variables. behavioural science knowledge. practices. 6. OD emphasizes the latter. the object of which is knowledge for its own sake. or practice.
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. represent contributions from applied science.8: Composition of Applied Behavioural Science Organization development is both a result of applied behavioural science and a. behavioural science research and two behavioural science theory. feedback of the data to the client system members. practice research and practice theory. 6. the two top in puts. and finally evaluating the effects of the treatments. I am inclined to hold the opposite to be true. 6. Kurt Lewin. Action research involves three processes: data collection. Action research is a method that combines learning and doing – learning about the dynamics of organizational change. form of applied behavioural science. it is a program of applying behavioural science to organizations. and action planning based on the data. The two bottom inputs. Fig. then selecting and implementing treatments based on the diagnosis. problem-solving method that replicates the steps involved in the scientific method of inquiry underlies most OD activities.From this "practice theory.” Concluding Comments: . Action research is especially well-suited for planned change programs." the OD practitioner works: first diagnosing the situation. had this to say about it: “The research needed for social practice can best be characterized as research for social management or social engineering. perhaps more accurately. It is a type of action-research. represent contributions from pure or basic science. and doing or implementing change efforts.9 Action Research The action research model – a data-based. a comparative search on the conditions and effects of various forms of social action. who developed the concept of action research.
–––––––––– means moving to new level of behaviour. Self Assessment Questions 1. Taken separately. Ralph Kilmann specified the critical leverage points for organizational change. In parallel learning structures members have to think and behave in ways that are different from the normal roles and rules of the organization. 2.11 Terminal Questions 1. 6. which in turn lead to individual and organizational improvements is the principle of Porras and Robertson model organizational change. Explain Kurt Lewin’s models and theories of planned organizational change. they constitute the beginning of a theory of organization development and change that has enormous potential for improving organizational performance and individual development. 4. First—order change is also called ___________. _____________ means sum of the efforts of team members is far greater than the sum of individual efforts of members. 6.” 5. What are first-order and second order change according to Burke-Litwin Model of organizational change? Explain. 3.10 Summary The foundations of organizational development form the theoretical and practice underpinnings of the field.These foundations of organization development form the theoretical and practice underpinnings of the field. Bring out the essence of “managing beyond the quick fix” model of organizational development. . 2. 3. A fundamental belief in OD is that work teams are the building blocks of organizations. The Burke-Litwin model emphasized on first-order and second-order change. OD interventions alter features of the work setting causing changes in individuals’ behaviours. –––––––––– gave the model “Beyond the Quick Fix”. A _____________ is defined as “a set of elements standing in interaction. Systems theory views organizations as open systems in active exchange with their environment. each is a powerful conceptual tool for thinking out and implementing change. 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. Action research model combines learning and doing.
” Comment on this statement. 6. Refer section 18.104.22.168 Answers to SAQs and TQs SAQs: 1.2. Ralph Kilmann 3. “Work teams are building blocks of organizational development.Refer section 6.3 5.2.1 Introduction Objectives 7. Refer section 6.2 Characteristics of Organization Culture Culture and . Unfreezing 2. Synergy Answers to TQs: 1.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 6. Refer section 6.2 3. What are the features of systems theory of organizational development? 5.3 4. Transactional change 4. MU0002-Unit-07-Organization Climate Unit-07-Organization Culture and Climate Structure: 7.1 2. System 5.
3 Types of Organization Culture. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration.7 Terminal Questions 7. you will be able to: · Understand Organization Culture. Practitioners are coming to realize that. discovered. what they brag about. thinking. but everyone knows it when they sense it. and feeling in relation to these problems (Schein.8 Answers to SAQs and TQs 7. For example.7. values.4 Organization Culture and Effectiveness 7. and validated enough to be taught to new members as the correct ways of perceiving. etc. organizational culture is the personality of the organization. what members wear. . but also changing the corporate culture as well. · Describe different types of Organization Culture · Explain organization culture and effectiveness. Culture is comprised of the assumptions.1 Introduction Basically. Comprehensively organization culture is the pattern of basic assumptions that is invented. The concept of culture is particularly important when attempting to manage organization-wide change. the culture of a large. 1986). organizational change must include not only changing structures and processes. Members of an organization soon come to sense the particular culture of an organization. despite the best-laid plans. Objectives: After studying this unit.6 Summary 7. You can tell the culture of an organization by looking at the arrangement of furniture. Culture is one of those terms that’s difficult to express distinctly.5 Developing and changing Organization Culture Self Assessment Questions 7. norms and tangible signs (artifacts) of organization members and their behaviors. 7. Martin and Meyerson. for-profit corporation is quite different than that of a hospital which is quite different than that of a university. – similar to what you can use to get a feeling about someone’s personality.
Hierarchies have respect for position and power. do not do too little?” 3. They often have well-defined policies. 2. When organizational participants interact with one another. Philosophy: These are policies that set forth the organization’s beliefs about how employees and/or customers are to be treated.2 Characteristics of Organization Culture Organizational culture has a number of important characteristics. including guidelines on how much work to do. Rules: There are strict guidelines related to getting along in the organization. processes and procedures. terminology. 6.3 Types of Organization Culture Hierarchy The hierarchy has a traditional approach to structure and control that flows from a strict chain of command as in Max Weber’s original view of bureaucracy. and in particular taking note of transaction cost. New-comers must learn those “ropes” in order to be accepted as full-fledged members of the group. Low absenteeism and high efficiency. 7. For many years. 5. Note that the Market organization is not one which is focused just on marketing. Which in many organizations come down to “Do not do too much. 4. Typical examples are high product quality. but one where all transactions. internal and external are viewed in market . and the way members of the organization conduct themselves with customers or other outsiders. this was considered the only effective way of organizing and is still a basic element of the vast majority of organizations. Market The Market organization also seeks control but does so by looking outward. Norms. Organizational climate: This is an overall “feeling” that is conveyed by the physical layout. Observed behavioral regularities. and rituals related to deference and demeanor. Dominate value: These are major values that the organization advocates and expects the participants to share. Some of the most readily agreed upon are the following: 1. Hierarchical leaders are typically coordinators and organizers who keep a close eye on what is happening.· Discuss about developing and changing organization culture. they use common language. 7. the way participants interact. Standards of behavior exist.
Comprehensively organization culture is the pattern of basic assumptions that is invented. value flows between people and stakeholders with minimal cost and delay. Where market success goes to those with greatest speed and adaptability. Rather than strict rules and procedures. Adhocracy The Adhocracy has even greater independence and flexibility than the Clan. affecting the performance of every-one within the culture in positive or negative ways. the adhocracy will rapidly form teams to face new challenges. which is necessary in a rapidly changing business climate. Market cultures are outward looking. discovered. people are driven through vision. big-bang projects and development. 7. 1993). clans often have flat organizations and people and teams act more autonomousl. 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). In contrast to Hierarchies. In biological terms. and validated enough to be taught to new members as the correct ways of . Clan The Clan organization has less focus on structure and control and a greater concern for flexibility. are particularly driven by results and are often very competitive. culture is like the DNA of an organization. invisible to the naked eye. Leaders in market cultures are often hard-driving competitors who seek always to deliver the goods. Transactions are exchanges of value. although not necessarily documented. innovative entrepreneurs who take calculated risks to make significant gains. strongly driven by loyalty to one another and the shared cause. supportive way and may take on a parental role. 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. shared goals.4 Organization Culture and Effectiveness It is reflected in how things are done (Flanagan. but critical to shaping its behavior. 1995) and how problems are solved in an organization. outputs and outcomes. It will use prototyping and experimenting rather than long. Rules. It has an inward focus and a sense of family and people work well together. Clan leaders act in a facilitative. do still exist and are often communicated and inculcated socially. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. In an efficient market organization. Leaders in an adhocracy are visionary.terms.
Thus. productivity. These are the essential and enduring tenets of an organization. the way they dress etc. goals. the personality of the organization). plaques. Though an organization espouses a series of values. from the basis of its policies and action. 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. its core value are limited to a few in number. For example. The set of basic assumptions evolve into values artifacts and norms in terms of which an organization culture may be examined and understood.perceiving. and no unanimity is found in different approaches. also called as organizational success or growth. and procedures. Artifacts: The visible manifestations of culture as seen in the physical and social environment of the organization such as: · Its structure. IBM norms dictate that employees should actively listen and respond to customer demands and complaints. Martin and Meyerson. is defined and conceptualized in different ways. or standards held by members of an organization. and what is right and what is wrong. individually and collectively. Organization Effectiveness Organizational effectiveness. and doing. They are reflected in the core capabilities of a company. norms. Values: These are the social principles. various terms such as efficiency. believing. Identifying. and feeling in relation to these problems (Schein. the jargon they use. thinking. systems and subsystems. reflecting what is important in the organization and determining how the organization ought to be (the ethos. Though a large volume of literature is available on the concept and working of organizational effectiveness. · The observable behavior of its members (the way they talk. etc. and are generally not compromised for short-term benefits or financial gains. symbols. communicating.the informal rules of the fame telling employees what they are supposed to be saying. · Its rituals. · Public documents it releases and media reports and stories about it. rules. there is often contradiction in various approaches. 1986). Values evolve out of the basic assumption and form the core (or heart) of the culture. The various approaches are judgmental and open to question. .
These variables have been classified by Likert into three groups-causal. The intervening variables may be divided into two broad categories: (i) the intervening attitudinal. performance goals. organizational growth. intervening and end result. Causal variables include the structure of the organization and management’s policies. scrap loss. According to Likert. business and leadership strategies. These causal variables include only those independent variables which can be altered or changed by the organization and its management. Many of these variables are caused by causal variables.5 Developing and Changing Organization Culture How Organizational Cultures Start Although organizational cultures can develop in a number of different ways. communication. are often used interchangeably.profitability. motivational. Likert states that the intervening variables reflect the internal state and health of the organization. the process usually involves some version of the following steps: . Grouping variables into these categories aids greatly in the correct interpretation of the data and their use for diagnostic and other purposes. the loyalties. 3. From this point of view. the organizational analysis is incomplete for a practicing manager unless the factors underlying effectiveness are identifying. Whatever the criteria adopted for organizational effectiveness. decisions. Likert states that causal variables are independent variables which determine the course of developments within an organization and the results achieved by the organization. and (ii) the intervening behavioral cluster.which are useful in discussing organizational effectiveness over time. there are numerous variables. Intervening Variables: Intervening variables are those factors which are reflected as the internal state of organization. e. Though each individual’s effectiveness is significant but perhaps the most important aspect of effectiveness is its relationship to the entire organization. End – result Variables: End-result variable are those factors which are caused by causal and intervening variable and are often in terms of the factors in which managers are interested or measure their effectiveness. This is one part of effectiveness that many managers overlook because it emphasis long-term potential as well as short-term performance. to denote organizational effectiveness. and perceptual cluster. attitudes. Causal Variables: Causal variables are those factors that influence the course of development within an organization and its results or accomplishment. and behaviour. 2. 7. costs. and perceptions of all members and their collective capacity for effective interaction. and decision-making. end-result variables are the dependent variables which reflect the achievements in the organization such as its productivity. Intervening variables are concerned with building and developing the organization.g. skills. and earnings.. Causal variables include the structure of the organization and its management. motivations. 1. and they tend to be long-term goals.
building. and structures that work together to reinforce traditional cultural patterns. all in this core group believe that the idea is a good one. and is worth the investment of time. In addition. locating space. Predictable obstacles include entrenched skills. 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. 3. 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?.1. and how this plays out among the partners will be important to cultural compatibility. The founder brings in one or more other key people and creates a core group that shares a common vision with the founder. 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. if the appropriate organization culture is in place. These factors from the two cultures include the size. 2. money. Even through some firms have had a culture in place to anticipate change. and a common history begins to be built. New product development and information technology is changing so rapidly that any example would be soon out-of –date. Where does the power and managerial decision making really reside? Corporate cultures range from autocratic extremes to total employee empowerment. 4. and so on. relationships. 2. At this point. Staffs. For example. and energy that will be required. 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. . powerful stakeholders such as unions. That is. age. obtaining patents. roles. or even customers may support the existing culture. is workable. the industry in which the partners come from and now reside. others are brought into the organization. A single person (founder) has an idea for a new enterprise. and history of two firms. Changing Organizational Culture Sometimes an organization determines that its culture has to be changed. However. Politics. management. and whether products and/or services are involved. Structure. The founding core group beings to act in concert to create an organization by raising funds. incorporating.
Take out all trappings that remind the personnel of the previous culture. especially when making changes in rules and processes. Stay the course by being persistent. the “culture contract” that individuals have bought into to guide their day-to-day thoughts. 7. so that a consistent message is delivered from all management team members. attitudes. The personal feelings. 3. are particularly driven by results and are often very competitive. These emotions will be a major input into the clash or compatibility of the two cultures.3. 2. _____are the visible manifestations of culture as seen in the physical and social environment of the organization. 2. Self Assessment Questions 1. Expect to have some problems and find people who would rather move than change with the culture and. 5. so that they are able to interact well with the organizational personnel. Make changes from the top down. Move quickly and decisively to build momentum and to defuse resistance to the new culture. Guidelines for change Despite the significant barriers and resistance to change. Assess the current culture. 3. 7. if possible. Include employees in the culture change process. 1. Recruit outside personnel with industry experience. 4. ________cultures are outward looking. Simple guidelines such as the following can be helpful. 8. organizational cultures can be managed and changed over time. ___________are those factors that influence the course of development within an organization and its results or accomplishment. habits. This attempt to change culture can take many different forms. 9. Emotions. and patterns of daily behavior.6 Summary . take these losses early. commitment. Set realistic goals that impact on the bottom line. 6.
5 Copyright © 2009 SMU Powered by Sikkim Manipal University . 7.2 2.7 Terminal Questions 1. Discuss the development and change of organizational development. Refer section 7.goal approach. Market 3. . intervening variables and end-result variables and there exists interrelationship among these variables.8 Answers to SAQs and TQs SAQs: 1. Effectiveness of an organization can be increased through economic man approach and administrative man approach.Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. Organizations to be successful must be efficient and effective. Finally. Refer section 7.3 3. Refer section 7. behavioural approach. and strategic constituencies approach. Explain the characteristics of organization culture. Artifacts 2. Organizational effectiveness can be measured through various approaches. 7. system-resource approach. 3. Factors in organizational effectiveness include casual variables. Causal variables Answers to TQs: 1. 2. effectiveness through adaptive-coping cycle has been discussed. Briefly explain different types of organizational culture.
must be understood if one is to be effective in organizations. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics.3 Two Faces of Power 8.8 Acquiring and using Power Skills Self Assessment Questions 8.” Organization development has been criticized for not taking into account power in organizations.6 The Role of Power and Politics in the Practice of OD 8.11 Answers to SAQs and TQs 8.1 Introduction Politics and Power and politics. That criticism was essentially correct for many years although it is less valid . indisputable facts of organizational life. As Warner Burke observes: "Organization development signifies change. Organization Development Unit-08.7 Operating in a Political Environment 8.1 Introduction Objectives 8. power must be exercised. we examine power and politics in relation to organization development.Power.4 Theories about the Sources of Social Power 8.5 Organizational Politics Defined and Explored 8. Politics and Organization Development Structure: 8.10 Terminal Questions 8.2 Power Defined and Explored 8.9 Summary 8.MU0002-Unit-08Power. and for change to occur in an organization. In this unit.
and outcomes favoring one party over the other. Potential power is the capacity to do so. spiritual. confiscation. · Explain theories about the sources of power. 8. 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." “Power is the ability of those who possess power to bring about the outcomes they desire. and organizational activities. The French word ‘pouvoir’ stands for both the noun ‘power’ and the verb ‘to be able. The phenomenon of power is ubiquitous.” “A has power over B to the extent that he can get B to do something that B would otherwise not do. Objectives: After this studying this unit. to effect outcomes. · Explain the role of power and politics in the practice of OD. Without leadership (power) in medical. political. emotions. technological. but kinetic power is the act of doing so. One person exerts power over another to the degree that he is able to exact compliance as desired.actions and the decisions that precede them. Without leadership (power) directed toward warfare. the act or ability of influencing others.2 Power Defined and Explored "Power is the intentional influence over the beliefs. and behaviours of people." "Power is defined in this unit simply as the capacity to effect (or affect) organizational outcomes. We therefore define interpersonal power as the ability to get one’s way in a social situation. humankind would not have the standard of living it does today. you will be able to: · Define power and politics in organizations. Recent years have seen a sizable outpouring of theory and research on power and politics from which OD practitioners have derived implications and applications for the field but we are still in the early stages of knowing how power and organization development should be related. Power-in-action may . the necessity of social interaction between two or more parties. · Acquire skills to handle power and politics in organizations.’ To have power is to be able to get desired things done. financial. humankind would not have much of the misery it does today." Analyzing these definitions shows some common elements: effectance-getting one’s way.today. Without influence (power) people would have no cooperation and no society. and repression.
absolute power corrupts absolutely. We think this distinction provides a good insight into the concept of power. the positive face of power seeks to empower self and others. selling. for organizations to function. we will examine four different views about who gets power and how: · Emerson’s "Power-Dependence theory. In fact. bestowed. or positive. not the possession of power as such. however. influence. Roberts came to a similar conclusion in her study of "collective power" and "competitive power. . It is especially salient in coordinated activities such as those found in organizations. Power per se is probably neither good nor bad although Lord Acton observed that "power tends to corrupt. with collective. How do some people come to possess power? How is power generated. an authority or power dimension is required. influencing. 8. forcing. The negative face of power seeks to dominate and control others. it is through the use of power that things get done in the world.3 Two Faces of Power David McClelland proposed an important distinction when he identified "two faces of power" – positive and negative. Patchen studied organizational decision making and found that coercive tactics were "noticeable chiefly by their absence" while problem solving and consensus seeking were much more prevalent. Leading. suggests that many problems with power stem from the goals of persons with power and the means they use. power being the predominant mode. and lead." A moment’s reflection." · French and Raven’s "Bases of Social Power. persuading-these are examples of positive uses of power. The positive face of power is characterized by a socialized need to initiate." Her research in four organizations showed both kinds of power. being exercised. McClelland observed that while power has a negative connotation for most people. both positive and negative. unsocialized need to dominate others. In most organizations the positive face of power is much more prevalent than the negative face of power. or acquired? In this unit. coercing-these are examples of negative uses of power.4 Theories about the Sources of Social Power Power exists in virtually all social situations." · Mintzberg’s Observations on the Genesis of Power in Organizations. hurting. According to him. Crushing. 8. the negative face of power is characterized by a primitive.take many forms." · Salancik and Pfeffer’s "Strategic-Contingency Model of Power. This positive face of power enables others to reach their goals as well as lets the person exercising power reach his or her goals.
5. and so forth. to give something valued by the other. that is. Closely related to these ideas is the classic statement by John R. which posits that what goes on between persons is an exchange of social commodities: love. attraction. Referent power – power based on the power-receiver having an identification with (attraction to. French and Bertram Raven on "the bases of social power. 3. Viewed in this light. The sociologist. Expert power – power based on the powerholder possessing expert knowledge or expertise needed by the other. Reward power – power based on the ability of the powerholder to reward another. rewards) that are controlled by one party. 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. The components of this theory are a social relation between two parties and resources (commodities. giving someone power over us is the commodity we exchange when we are dependent on that person for something we want. when the net balance for us is negative. rejection. power. hate. goals. 2." In other words. 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. influence. Coercive power – power based on the ability of the powerholder to punish another. Social interaction represents an exchange of social goods and services. that person has power over us. if a person has something we want badly and we cannot get it any other place. .Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another. we will terminate or alter the relationship. that is. or feeling of oneness with) the power holder. Power-dependence theory is related to a broader framework of social interaction called social exchange theory." These authors suggested five sources. information. 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. Informational power is a form of expert power where the powerholder possesses important facts or information needed by the other. power belongs to those persons who control or mediate desired commodities. respect. Exchange theory and power-dependence theory are quite compatible with the ideas proposed by French and Raven. of social power as follows: 1. or bases. to give something negatively valued by the other. P. 4. praise. When the net balance for us is positive. we will continue the exchange relationship. and (2) inversely proportional to the availability of those goals to A outside of the A-B relation. blame. In this theory. and desired by the other.
These critical problems are generally "uncertainties" posed by the environment. . control of a body of knowledge. these four views of the sources of power are remarkably similar – power stems from possession of or mediation of desired resources. the unions. coupled with 2) The expenditure of energy in a 3) Politically skillful way. regulators. supports the notion that those who have something highly valued by. the top executives. control of a technical skill." The three basic conditions for the exercise of power are 1) Some source or basis of power. like the ones discussed previously. An organization has many potential influencers. that power-in-action requires will and skill. used by all who have it. Henry Mintzberg has developed a theory of organizational power drawn from the organization theory literature and his own creative synthesis abilities. and that the organization is the context for the exercise of power. the managers. "is built on the premise that organizational behavior is a power game in which various players. for power in the hands of the critical problem solvers helps the organization cope with the various realities it faces.others-in this case. to enhance their own survival through control of scarce critical resources. the ability to solve critical problems or exigencies-anything that creates dependence of one actor or set of actors on another. through the placement of allies in key positions. being in control of critical skills. and through the definition of organizational problems and policies. The resources may be ability to reward and punish. This theory. All of these must be critical to the organization. According to Mintzberg. suppliers. Salancik and Pfeffer further suggest how power is used: "Power is used by subunits. In addition to a base of power. the employees. such as the board of directors. seek to control the organization’s decisions and actions. and. The fourth basis is legal prerogatives-being given exclusive rights to impose choices. knowledge. first. In summary. the special expertise needed for the organization’s survival-have power." These authors view organizational power as a good thing. customers. third. A fifth basis of power is access to those who have power based on the first four bases. called influencers. and so forth. The important aspects of Mintzberg’s theory are that the sources of power derive from possession of a commodity desired by others. This theory. indeed. second. the influencer must have both the "will" and the "skill" to use it. the five possible bases of power are. or departments) most important for solving the organization’s most critical problems. units. control of a resource.The strategic-contingency model of power asserts that power in organizations accrues to the subunits (individuals. or information.
“Organizational politics is the management of influence to obtain ends not sanctioned by the organization or to obtain ends through non-sanctioned influence means”. These key areas are the battlefields where actors win and lose. The first three definitions treat politics as a neutral set of activities. initiate. you must lose-rather than win-win terms. engaging in open problem solving followed by action and influencing. and a socialized need to lead. conflict resolution. deceiving. one gains a quick understanding of the overall "political climate" of an organization by studying its methods of resource allocation. resource allocation. it is engaging in activities to get one’s way. formal power. withholding information. like power. 8. the last two definitions view politics as illegitimate or unsanctioned activities. and conflict resolution processes. the power vested in office. develop and use power and other resources to obtain one’s preferred outcomes in a situation in which there is uncertainty about choices”. Organizational politics tend to be associated with decision-making. Analyzing these definitions suggests that the concepts of power and politics are similar. The positive face is characterized by a balanced pursuit of self-interest and the interests of others. illegitimate in nature. holding hidden agendas.8. has two faces. and predominant use of the tactics of fighting-secrecy. Thus. We are inclined to consider politics as neither good nor bad per se but believe that politics. “Organizational politics involve intentional acts of influence to enhance or protect the selfinterest of individuals or groups”. The negative face of politics is characterized by extreme pursuit of self-interest. viewing situations in win-win terms as much as possible. a tendency to view situations in win-lose terms-what I win. unsocialized needs to dominate others. and how”.6 The Role of Power and Politics in the Practice OD . In fact. For our purposes. treating it as informal power.5 Organizational Politics Defined and Explored Harold Lasswell defined “politics simply as the study of who gets what. Both relate to getting one’s way-effectance. Both relate to pursuit of self-interest and overcoming the resistance of others. and choosing among alternative means and goals. a relative absence of the tactics of fighting. we view politics as a subset of power. they are where the "goods" are distributed and the goals decided. One important feature in these definitions should be examined further. Likewise we also treat authority as a subset of power. when. “Organizational politics involve those activities taken within organizations to acquire. organizational politics is power-in-action in organizations. and influence others. but in this sense. the capacity to get things done by virtue of the position held. surprise.
and weaknesses. but not with the negative face of power. and expertise. For example. "Power equalization" has long been described as one of the values of organization development. OD values are consistent with the positive face of power. and (3) to promote the client’s internal commitment to the choices made. the "interventionist" has three primary tasks: (1) to generate valid useful information. But organization members are free to accept or reject the practitioner. catalyst. second. it is instead a rational problem-solving approach that is incompatible with extreme poweroriented situations. The practitioner is not a political activist or power broker. power equalization. Values such as trust. The role of the OD practitioner is that of a facilitator. his or her program. These values are congruent with rational problem solving and incongruent with extremely political modes of operating. Cobb and Margulies caution that OD practitioners can get into trouble if they move from a facilitator role to a political role. not politics. public data about the organization’s culture. problem solving is usually superior to power coercion as a way to find solutions to problematic situations. public data are indispensable-for problem solving but anathema for organizational politics. and educator. Virtually. provides a service that the organization is free to "buy" or "not buy. OD interventions typically generate valid. as we discussed earlier. rather. all OD interventions promote problem-solving. Valid. Not only is organization development not a power/political intervention strategy. as a preferred way to get things accomplished. being one aspect of the positive face of power. co-operation. OD interventions do not deny or attempt to abolish the reality of power in organizations. (2) to promote free. problem solver. According to Chris Argyris. individual dignity. This major . and his or her values. 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. and effective pursuit of goals while decreasing reliance on the negative faces of power and politics. informed choice. OD interventions increase problem-solving. methods. like all consultants. organization development represents an approach and method to enable organization members to go beyond the negative face of power and politics. openness. The practitioner works to strengthen skills and knowledge in the organization. We know of no OD interventions designed to increase coercion or unilateral power. and promoting individual and organizational competence are part of the foundation of organization development. collaboration. strengths." The facilitator or educator role is incompatible with a political activist role because cooperation requires one set of behaviors and competition requires a different set of behaviors. In summary. Emphasis on power equalization stems from two beliefs: first. and by so doing adds power to the organization. increases the amount of power available to organization members. fact-finding. The OD consultant. they enhance the positive face of power.We have discussed a number of ideas concerning power and politics. processes. thereby making the negative face of power less prevalent and/or necessary. collaboration.
in powerful places. and the roles of OD practitioners. Early success in the OD program and its usefulness to key managers of the organization helps promote this reputation. acceptability." 4. it will be strong externally. expert power (the consultant possesses expert knowledge). 8. 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. the resources of OD expertise and ability to help organizational subunits solve their pressing problems. the OD consultant possesses power from the following bases: legitimate power (the OD program and consultant are authorized by the organization’s decision makers). 3. informational power (the consultant has a wealth of information about the strengths and weaknesses of the organization). 2. organization development practitioners operate from a potentially strong power base they can use to advantage. the technology. 6. Sponsorship: "Organization development groups will gain power to the extent that they have sponsorship. . and possibly referent power (others may identify with and be attracted to the consultant). the values. According to the framework of French and Raven. If the OD group is cohesive and free of internal dissention. Competence: Demonstrated competence is the most important source of power. Michael Beer has identified additional means by which an OD group can gain and wield power in organizations: 1. 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. it will gain more power.strength of OD derives from the strategy of change. followed by some rules of thumb for the OD practitioner. Paying attention to these sources of power will enhance the likelihood of success of OD programs. and ability to gain organizational support. Stature and credibility: Beer notes that power accrues to those who have been successful and effective. Success leads to credibility and stature. 5. First. preferably multiple sponsorship.7 Operating in a Political Environment We will present some general observations on operating in a political environment."34 This maxim has been recognized for years under the heading of "get top-level support for the program. Group support: If the OD group is strong internally.
Rule Four: Create win-win solutions. OD professionals who are skilled in conflict management techniques and OD programs that encompass conflict resolution activities become valued commodities. The OD program belongs to the manager. Rule One: Become a desired commodity. OD programs become desired commodities when they are instruments that allow individuals and organizations to reach their goals. Skills such as listening. The following rules describe ways to avoid becoming involved in one’s own or in others’ political struggles. to help them achieve their goals and solve their problems. and effective conflict management techniques are required to enhance stable. OD programs should be results-oriented. the manager will vigorously defend it. When the OD program serves the needs of top executives. those issues vital to the organization’s success. Many OD interventions promote win-win solutions for conflict situations. Rule Three: Make the OD program a valued commodity for multiple powerful people in the organization.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. OD consultants have a formal or informal contractual agreement with managers to help them do what they are trying to do-better. Sometimes OD practitioners overlook that they are hired by others. experience. The nature of organizations and the nature of organization development suggest this rule. Each is derived from one general principle: Mind your own business. Good OD practitioners will have learned and practiced these skills. Another way the OD program becomes a desired commodity is by focusing on important issues. constructive social relationships. problem solving. and expertise. both as a person and as a professional. coaching. Rule Five: Mind your own business. The role of the OD consultant is to help others upon request. which is to help someone else solve his or her major problems. communicating. 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. Organizations are social systems in which members have both a history and a future of interacting. . not the OD consultant. Rule Two: Make the OD program itself a desired commodity. Becoming a desired commodity as a person means being interpersonally competent and trustworthy. Beer and Walton argue that organization development should move from being practitioner centered to being manager-centered. OD practitioners are likely to have high interpersonal competence by virtue of their training. The preceding rules of thumb describe ways to increase or solidify one’s power base. it gains an aura of respect and protection that sets it above most political entanglements. counseling. usually managers. and showing appreciation for the strengths of others are components of interpersonal competence.
" OD practitioners have typically pursued a "playing it straight" strategy as their sole means of exerting power. As shown in the figure. problem solver. Networking is recognized as a potent. yet legitimate means of acquiring power. Abiding by this rule keeps the consultant from becoming entangled in politics. 8. and using contacts for information. Three successful power strategies are "playing it straight. and educator. which is to be an expert on process. Table 8. Attention to these rules can save OD practitioners time and energy that can be more profitably invested in the OD program.8 Acquiring and Using Power Skills The OD practitioner is neither power activist nor power broker.1: Power Base and Power Strategy Connection Individual Power Bases Knowledge Strategies for Success Playing It Straight . viable. 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. Earlier we stated that the OD practitioner should learn as much as possible about bargaining. not content. catalyst. Illegitimate behavior causes others to try to exert greater control over the situation. We believe the legitimate role of the OD practitioner is that of facilitator." "using social networks. We could propose more rules of thumb.Rule Six: Mind your own business. The authors propose adding the "using social networks" strategy to their repertoires. and the characteristics and behaviors of powerholders. not power activist or power broker. Illegitimate behavior encroaches on others’ legitimate "turf. dealing directly with powerholders and decision makers. the strategy and tactics of influence. such behavior is often interpreted as politically motivated. not by getting involved in the answers. but these give the flavor of the issues one must consider when operating in a political environment. and personality characteristics. but that does not mean practitioners must be naive or incompetent in the political arena. A subtle phenomenon is involved here: when people engage in illegitimate behavior. negotiations the nature of power and politics. thereby greatly expanding practitioner influence. others’ support. while at the same time increasing his or her usefulness to the organization’s powerholders. One carries out such a strategy by participating in alliances and coalitions." and "going around the formal system." which arouses defensive actions. Rule Seven: Mind your own business because to do otherwise is to invite political trouble. The principle is simple but powerful: know your legitimate business and stick to it. individual power derives from knowledge.
influence key powerholders to accept the OD program. visibility-how much one’s work is seen by . Personal power. The power structure will realize that collaborative power is preferable to manipulation and deception. (Legitimacy refers to abiding by and promoting the values of the organization. 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. Whetton and Cameron’s model is shown in following figure. and legitimacy. criticality-how important one’s job is flexibility-the amount of discretion in the job. This practical.) Position power derives from five sources: Centrality-access to information in a communication network. personal power and position power. in turn. In this model. then utilize a facilitative OD process in which the powerholders work on strategic business issues using consensus decision making to develop a corporate strategy. personal attraction. the authors propose a four-stage model for using the OD process to help the power elite transform the organization in ways beneficial for all concerned. a person’s power comes from two main sources. even those of little power. effort. how-to book on power and organization development is well worth studying. arises from expertise. which in turn will protect the interests of all concerned.· Expertise · Information · Tradition Others’ Support · Use data to convince · Focus on target group · Be persistent Using Social Networks · Alliances and coalitions · Deal with decision maker · Contacts for information Going Around Formal System · Work around roadblocks · (Don’t) use organization rules Political access Staff support Personality Charisma Reputation Professional credibility Finally.
and relevance-how important one’s task is in relation to organizational priorities. Retribution is not recommended except in unusual cases. Having power is one thing. power-in-use is called influence." And. and (3) empowering others. Reciprocity refers to exchange of favors.influential people. Three influence strategies can be used to influence others-reason. Whetton and Cameron suggest . actually using it to get things done is another. Usually reason is the preferred strategy. (2) selecting the proper influence strategy. They write: "Influence entails actually securing the consent of others to work with you in accomplishing an objective. Retribution refers to coercion and threats. Networks are critical to effective performance for one compelling reason: Except for routine jobs. 8. Fig. Reason refers to persuasion by facts. no one has the necessary information and resources to accomplish what’s expected of them. According to these authors. “One of the most important ways of gaining power in an organization is by establishing a broad network of task and interpersonal relationships. and retribution." Three things are involved in converting power into influence: (1) resisting other people’s inappropriate influence attempts.1: Model of Power and Influence Networking is used to increase both personal power and position power. "Power is converted into influence when the target individual consents to behave according to the desires of the power holder. one investigation of the determinants of effective management performance concluded that a key factor distinguishing high and low performers was the ability to establish informal relationships via networks”. reciprocity. Indeed. and reciprocity can be useful when reason fails.
. and are amenable to positive control. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics. Organizational politics involve intentional acts of influence to enhance or protect the self-interest of individuals or groups. reputation and professional credibility. _____________ has identified two faces of power. Organizational politics is defined as the study of who gets what. Power based on the power-receiver having identification with the power holder is called ––– ––––––––. arise from known conditions. when. arise from known conditions.9 Summary Power and politics are inseparable facts of organizational life. Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another. 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. Strategic-contingency model of power asserts that power that accrues to the individuals. emotions or behaviour of people. Methods for empowering others are the following: (1) involve subordinates in assigning work. when and how. we have examined power and politics with the goals of understanding the phenomena and deriving implications for OD practitioners. 8. –––––––– defined politics as the study of who gets what. Power and politics are similar in nature. 4. 8. and (6) build on success. (2) provide a positive. –––––––––– is made up of Charisma. and how. 5. collaborative work environment.several means of resisting others’ influence attempts such as confrontation and using countervailing power. Power can be either positive or negative.10 Terminal Questions 1. Power and politics are similar in nature. Organizational power is the ability of those who possess power to bring about the outcomes they desire. (3) reward and encourage others in visible and personal ways. 3.. units or departments is most important in solving organizational problems. Self Assessment Questions 1. 2. Concluding Comments: In this unit. –––––– is the intentional influence over the beliefs. (4) express confidence (5) foster initiative and responsibility. Define power in an organizational context and explain types of power. and are amenable to positive control.
4.Refer section 8. 3.2.1 Introduction . Identify the bases of individual power and the respective strategies for their success. Harold Lasswell 5. McClelland 3. Refer section 8. Personality Answers to TQs: 1. 8. Power 2.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Define organization politics. Describe briefly various theories of power.11 Answers to SAQs and TQs SAQs: 1. Refer section 8. Refer section 8. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9. 5.6 5.4 3. Explain the role of power and politics in the practice of OD. Referent power 4. Refer section 8.2 2.5 4.
4 Management By Objectives 9.11 Terminal Questions 9. organizational problems may repeat.3 Socio Technical Systems 9. Nothing is permanent except change because change is permanently changing. These interventions vary from standardized program that have been developed and sometimes tailored program. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design. actions. events intended to help an organization improve its performance and effectiveness.Objectives 9. In this dynamic and fluid environment. An organization development intervention is a sequence of activities.5 Quality Circles 9.9 Reengineering Self Assessment Questions 9.2 Meaning and Definitions 9.8 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.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival.10 Summary 9. One important intervention technique is Technostructural interventions because these are related to technical and structural issues such as how to divide labour and how to coordinate department which is related to Restructuring organization. These programs are derived from careful diagnosis.12 Answers to SAQs and TQs 9. Objectives: .6 Quality of Work Life Projects 9.7 Parallel Learning Structures 9. These methods are receiving increasing attention in Organization Development.
9. you will be able to: · Explain the Socio technical change. Advantages of Structural Interventions There are a number of reasons why a consultant should consider employing a structural intervention. Downsizing associated with restructuring. From a benefit cost analysis. This normally is a reasonable. Managers and administrators are notoriously pragmatic. Weeks and months of group effort are saved. and OD practice enables the change agent to estimate the probable consequences of the change. Once diagnosed and an appropriate correction developed. 2. Changes can involve decentralization and centralization. Organization Acceptance of Change.2 Meaning and Definitions Structural Intervention is related to the changes that relate elements of organization to one another. Succession Doesn’t Destroy Change Effort. · Discuss the Management By Objectives · Explain the Quality Circles. includes removing or adding layers to hierarchy. · Explain Total Quality Management. their attractiveness is also increased by the following advantages: 1. Structure changes are normally “institutionalized” and less subject to this problem. Greater Predictability.After studying this unit. Cost is Low. 3. 5. organization theory. Basic reinforcement theories. One problem with behavioral/ group interventions is the tendency for new managers or employees to discount or fail to continue the change program. Structural changes are consistent with their operating styles and are generally understood by practitioners. · Explain Reengineering. structural Interventions compare quite favorably with all other alternatives. In addition. meaning the major costs are associated with analysis and design of change. and more . The cost of structural change is generally “front-end” loaded. Rapidity of change. 4. change can be introduced relatively rapidly by top management. · Discuss the parallel Learning Structures.
Pasmore. It could involve the following steps (Foster.” . 1967. Cummings. many business and nonbusiness organizations have adopted this in some form or the other. it has been defined as follows: MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner.4 Management by Objectives Management by objectives (MBO). 9. It endeavors to re-design the organization’s structure. 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. processes and functions to create a balance between the organization and its changing external environment. Though there are some variations in the practices of MBO and. though not strictly an OD intervention in the sense in which other interventions have been discussed so far. The term MBO was coined by Drucker in 1964 when he emphasized the concept of managing by results.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. Since then. a predictable cost Implementation of group strategies involves significant long-term man-hour and consultant costs.critically. Its basic idea has been derived from the concept of participative goal setting as a technique of OD. therefore. is a technique and system which helps in improving organizational performance. 1976. its definitional aspect.
As an approach to management. Objectives are established for all the levels of the organization. 4. reward and punishment system is attached with the achievement of the objectives. Objectives in MBO provide guidelines for appropriate system and procedures. The basic emphasis of MBO is on objectives. 3. 5. its subsystems and people. . superiors and subordinates. delegation of authority. are determined on the basis of objectives. MBO employs several techniques but it is not merely the sum total of all these techniques. non-specialist. 2..” Based on the definition of MBO. This is possible because MBO tries to match objectives and resources. The total management process revolves round the objectives set jointly by the superior and the subordinate. with objective orientation as its essence. and human resources of the organization by integrating the individual with organization and organization with the environment. operational managerial process for the effective utilization of material. all the units or departments and individual manager. 6. In fact. MBO is the joint application of a number of principles and techniques. MBO is also concerned with determining what these results and resources should be. each manager takes active part in setting objectives for himself and also in evaluating his performance as to how he is performing. Certain degree of overlapping is there. The review is future-oriented because it provides basis for planning and corrective actions. The MBO is characterized by the participation of concerned managers in objective setting and performance reviews. It emphasises initiative and active role by the manger who is responsible for achieving objectives. Therefore. Whereas the various techniques of management help in measurement of results in resources.The integration of individual and organizational objectives through MBO has been emphasized by Chakravarty when he has defined MBO as follows: “MBO is a result-centered. MBO is an approach and philosophy to management and not merely a technique. Resource allocation. A management technique can be applied in selected parts of the organization and will have limited implications for its other parts. Objectives provide the means for integrating the organization with its environment. etc. The performance review is held regularly. It is a particular way of thinking about management. On the other hand. physical. It works as an integrating device. managers have the opportunities for clarifying their job relationships with peers. its features can be identified as follows: 1. MBO is bound to have some relationship with every management technique. Therefore. often MBO provides the stimulus for the introduction of new techniques of management and enhances the relevance and utility of the existing ones. Similarly. Periodic review of performance is an important feature of MBO. including the corporate level. normally once a year. This process clarifies the role very sharply in terms of what one is expected to achieve. MBO is likely to affect every management practice in the organization.
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. actions. such as cost. __________ represents a participative approach to employee involvement in problem solving and productivity improvement. · Continuous search for sources of defects with a goal of eliminating them entirely.10 Summary An organization development intervention is a sequence of activities. · A major emphasis on continuous learning. consciously directed towards the effective and efficient achievement of organizational objectives. 9. Reengineering focuses on visualizing and streamlining any or all business processes in the organization. 2. Reengineering is a top-down process. · Top management support on an ongoing basis. structural Interventions compare quite favorably with all other alternatives. The term MBO was coined by _________ in 1964. eliminating. · Participative management. · An emphasis on teams and teamwork. Self Assessment Questions 1. and speed. MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. events intended to help an organization improve its performance and effectiveness. quality. 3. 9. From a benefit cost analysis. service. or restructuring activities without regard to present hierarchical or control procedures.9 Reengineering It is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical.· Competitive benchmarking. events intended to help an organization improve its performance and effectiveness. An organization development __________ is a sequence of activities. assumes neither an upward flow of involvement nor that consensus decision making. Quality . It seeks to make such processes more efficient by combining. actions. contemporary measures of performance. Sociotechnical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs.
circle represents a participative approach to employee involvement in problem solving and productivity improvement. Discuss Socio Technical Systems? 2.5 4. Refer section 9. . TQM pushes decision making power downwards in the organization.Refer section 9.11 Terminal Questions 1. provides relevant information to all employees. What are the advantages of structural interventions? 3. Refer section 9.2 3. It consists of small group of employees who meet voluntarily to identify and solve productivity problems.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .12 Answers to SAQs and TQS SAQs: 1. Drucker 3. ties reward to performance and increase workers knowledge and skills through extensive training. Explain Management By Objectives? 4. Write a short note on Total Quality Management. 9.3 2. It is also called continuous quality improvement. Intervention 2. Refer section 9. Quality circle Answers to TQs: 1. 9.
8 Terminal Questions 10. organizational problems may repeat. cope with the ongoing changes successfully in the first instance.3 Resistance to Change 10.4 Causes for Resistance to Change. and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other.5 Impact of Change on the Future Manager 10.9 Answers to SAQs and TQs 10. In this dynamic and fluid environment. Hence.MU0002-Unit-10-Managing Organization Development Unit-10-Managing Change in Organization Development Structure: 10. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented). 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.1 Introduction Objectives 10. 10. 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.2 Nature of Change 10.6 Methods of Reducing Resistance to Change. Self Assessment Questions 10. Objectives: .7 Summary 10.
Though this phenomenon will be taken later. Thus. · State the methods of reducing resistance to change. Thus. However. When change occurs in any part of the organization. the contour of the balloon visibly changes. may require special change efforts. less. and others. However. others. it has stretched slightly. They have illustrated it by comparing an organization to an air-filled balloon. they have concluded that the whole organization tends to be affected by change in any part of it.After studying this unit. it disturbs the old equilibrium necessitating the development of a new equilibrium. When a finger (which represents external force) is forced against a point on the balloon (which represents the organization). or social.2 Nature of Change The term ‘change’ refers to an alteration in a system. organizational change is the alteration of work environment in an organization. · Impact of change on future managers. The type of new equilibrium depends on the degree of change and its impact on the organization. the change in organization does not occur purely on mechanical relationship. It implies a new equilibrium between different components of the organization – technology.whether physical. indirectly. While managers as change agents want to bring changes in the organization. some parts may be affected directly. However. some changes which are of minor type may be absorbed by the existing equilibrium. 3. structural arrangement. Any change may effect the whole organization. which are major ones. organizational change may have the following features: 1. employees want to maintain a status quo. biological. we find that the shape of the entire balloon has changed. 10. Thus. if we look minutely. job design and people. . it becomes indented at the point of contact. Newstrom and Davis have explained the impact of a change in any part of the organization on the total organization. · Discuss the nature of change · Explain resistance to change and the factors which resist change. Organizational change is a continuous process. some parts of organization may be affected more. you will be able to: · Explain the meaning of organization change. and others. 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. 2.
One example of Bajaj Auto Limited is relevant here. social systems tend to resist change because of homeostasis. Thus. the reality lies in between. Similarly. Madhur Bajaj. We saw resistance to change at the existing plant. We wanted a new culture and new layout. Resistance to change forces management to find out this reality which helps in managing change more effectively. resistance to change provides help in managing change in two ways: . While on negative side. so is the resistance to change. On this phenomenon.10. In fact. This leads to general proposition that people and their social systems will often resist change in organizations. the managers face the problem of resistance to change. people act to establish a steady state of need fulfillment and to secure themselves from disturbance of that balance. Resistance as Cost: Since all changes have some cost. We shall take new workers at the new place. Before we trace out the reasons for résistance to change. commented. but when a change is major or unusual. the organizational may not be able to introduce new phenomena in order to adapt environmental requirement. resistance to change is costly affair. adjustment is fairly routine. because it produces identical symptoms. it provides some benefits to the organization as its change agent. let us discuss whether resistance is always bad as it is generally perceived to be. there are two sides of resistance. Homeostasis implies self-correcting characteristics of organism to maintain equilibrium as a result of change. many organizations have been forced to abandon change programmes because of resistance to such programmes. and its basic survival may be jeopardized.3 Resistance to Change In the management of change effectively. People tend to resist many types of changes because new habits or sacrifices are required. Many companies have been forced to do so in the past.” Resistance as Benefit: On the one hand.as cost and as benefit. 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. more serious upsets may occur. that is. like shifting of the manufacturing plants at new locations. In fact. or they have been forced to adopt alternative strategies. fear of change can be as significantly disrupting as change itself. “The Pune plant is fully saturated. In fact. When change is minor and within the scope of correcting programme. Managing Director of Bajaj Auto. and on the other. If people resist to change. 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. In order to increase its manufacturing capacity of two-wheelers.
Factors in Resistance to Change People tend to evaluate the effect of change individually but they express it through group in collective form. reduce job options. may be seen in the context of three types of factors: economic. technology. it attracted a lot of resistance because of this reason. It also highlights real inadequacies in the proposed change and suggests better ways for developing and introducing changes. etc. whenever people sense that new machinery (change) poses a threat of replacing or degrading them. and turn into technological unemployment. either real or emotional. etc. 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. Economic Factors People feel attached to the organization for satisfying their needs and economic needsphysiological. These feelings. These feeling may be based either on reality or there may be emotional feeling towards the change. they will have lower opportunity to earn incentives and bonus as the new system requires additional skills. It may signal the need for more effective communication about the meaning and purpose of a change or need to rethink precisely how a proposed change will affect the organization and its members. bonus. people may feel that in the new system. psychological and social. Fear of Economic Loss: A change may create fear of economic loss in the sense that it may affect economic compensation adversely. Therefore. Degree of force in resistance depends on how people feel about change.1. 2. job security etc. Whenever there is change. they simply resist such a change.. precede over other needs. This feeling is created because people feel that those who can match the new requirements will be better off than those who cannot match. 2. Skill Obsolescence: A change is generally meant for better methods of working which may involve new techniques. 3. When computer was introduced in the business sector in India. People may perceive that they will be adversely affected by the change in terms of their needs satisfaction in the following ways: 1. Reduced Opportunities for Incentives: Employees are generally offered incentives linked to their output in the form of incentive schemes. Psychological Factors . All these are well-established in the old system.
Some people have very low level of tolerance for change and ambiguity as compared to others. these people resist any new idea. that is. low tolerance for change. people resist it. and fear of unknown. which people do not want. particularly social needs. These are qualitative and. 2. 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. sentiments and attitudes towards change. A change in itself suggests that everything is not right at a particular level.e. 3. they resist change. Therefore. status quo. everyone tries to avoid it. If people have low degree of confidence in the change agent. people resist change. the change may be perceived as an instrument for exposing the weakness of the people. The major factors causing resistance to change are: desire to retain existing social interaction and feeling of outside interference. Status Quo: People want status quo. 5. lack of trust in change agent. through their mutual compatible interactions. Social Factors People derive need satisfaction. Low Tolerance for Change: In the context of maintaining status quo. Major psychological factors responsible for resistance are: ego defensiveness. which is always uncertain. 1. people may differ. Therefore. Fear of Unknown: A change may be perceived as entering into unchartered area which is unknown. The change initiated by the organization disturbs such equilibrium and people have to obtain another equilibrium which is a painful exercise. When there is any change. The lack of adequate information about the likely impact of change further complicates the problems. . To the extent the satisfaction of these needs is affected by a change. 4.Psychological factors are based on people’s emotions. 1. they do not want any disturbance in their existing equilibrium of life and work pattern. Desire to Maintain Existing Social Interaction: People desire to maintain existing social interaction since it is a satisfying one. The change will bring results in future. therefore. their existing social interactions are likely to be changed. the person who initiates change. they show resistance to change efforts. Therefore. Thus. Lack of Trust in Change Agent: The effect of change is perceived in the context of change agent. may be logical from people’s point of view but may be illogical from the change agent’s point of view. They form their own social groups at the work place for the satisfaction of their social needs. i. Ego Defensiveness: A change may affect the ego of the people affected by the change and in order to defend their ego. This lack of certainty creates anxiety and stress in the minds of people and they want to avoid it.
Digital Equipment Corporation. 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. If the organization is not fully equipped for meeting such demands. Counting Past Successes: A major problem before the organizations which have past success stories is how to face challenges of the changing environment. Since these organizations have achieved success by following a particular set of management practices.” This statement suggests that organizations tend to stabilize at a particular level and if the change efforts are not brought. e. Resource Limitations: No doubt. Many organizations are designed to be innovation-resisting. 1. even the organization itself resists many changes because of certain reasons. stability of systems. Zerox or nearer home-TI cycles. values. they become too rigid to change and they hide their failure to change in the guise of past successes. an organization has to adapt to its environment but the adaptation has its own cost. Sumantra Ghoshal. millstones and routines.2. This phenomenon is heightened if the change agent belongs to another social class. Many powerful organizations of the past have failed to change and they have developed into routines. Whether it is IBM. dogmas. Organizational Resistance to Change: Not only individuals and groups within an organization resist change. For example. it may not be possible for the organization to bring necessary change. and institutes reward and punishment system. For example. Some of these reasons are basic while others are by-products of those. For example. first two reasons are basic and others are by-products of the first two. nothing fails as spectacularly as spectacular success. This is the reason why many old industrial houses are languishing far behind and their places are being taken away by newer organizations. All these work in some circumstances. The major reasons for organizational failure to change are: counting past successes. resource limitations. 2. has commented as follows: “Nothing fails like success. a professor of strategic leadership who is considered to be a management Guru. these organizations start falling. Stability of Systems: The organization may design a system through which it may derive many benefits. It a change is required in these aspects.g. Feeling of Outside Interference: A change brought about by the change agent is considered to be interference in the working of people. For example. Strategies. It is called ‘The Failure of Success’. The system is stabilized and any change may be perceived as a threat by the organization itself. all these companies have been victims of corporate disease. resources and processes of the most successful companies have in the past ossified into clichés. Caterpillar.. 3. if new . and inter-organizational agreement. a bureaucratic organization has certain fixed rules. change initiated by managers affecting workers. the organization may not bring it easily because it is accustomed to a particular system. sunk cost. prescribes rigid authority relationships.
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. 4. it will require resources to procure machine. 1. building and training for its personnel. 5. it may enter into agreement with other organizations over certain aspects of working. and has zeal for progress. centralized control. Therefore. 2. If it is risk-taking. and put less emphasis on environmental scanning. innovative. In such a case. Analyzers: Above two are the extreme cases of choice-making modes in between the analyzers and reactors. Analyzers act sometimes as defenders and sometimes as prospectors. Reactors: These organizations realize that their specific environment is changing but fail to relate themselves with the changing environment. and commensurate expenses on other items also. the organization may enter into agreement with labour union about not bringing any technological change. what will happen to these assets? Naturally. intensive planning. . It is necessary too that other organizations also agree to the change proposal. They go on searching new products/markets on regular basis. if any change is to be incorporated. Defenders: These are the firms which penetrate in a narrow market product domain and guard it. it is not necessary that his services are done away with. It an individual is not making commensurate contribution. 4. prospectors. Sunk cost cannot be only in terms of various physical things. In this interaction process. Once the assets are acquired. forward-looking.” This is the true reflection of difference between change-initiating companies and changeresisting companies. the organization has to take into consideration the wishes of other organizations too. Miles and Snow have classified them into four categories. they cannot survive. Let us see what someone has said long back: “There are three types of companies: those who make things happen. if the change is required. Inter-organizational Agreements: The organization interacts with its environment. 3. those who wonder what happened. For example. Prospectors: These firms use broad planning approaches. those who watch things happen. and reserve some resources unutilized for future use. They emphasize more on cost-effectiveness. broad environmental scanning. Sunk Cost: Most of the organizations have sunk cost involved in various assets. This can be in the form of people also. It depends more on the style of top management. Otherwise. Thus. decentralized controls. they have to behave in one of the above three ways. analyzers. Based on the aggressiveness which various companies show in changing themselves. and reactors. these can be used for specific period. the organization may take change programmes much more frequently.technology is adopted. Now. organization has to pay for his services though these may not be as useful.defenders.
adjusting to the new office layout. implicit. To cope with this complexity. we all rely on habits. Life is complex enough. or programmed responses. many employees at these firms may fear that their jobs are in jeopardy. some may fear they’ll be unable to do so. when you go to work or school. or deferred. especially when pay is closely tied to productivity. the introduction of a quality management program requires that production workers learn statistical process control techniques. engaging in a work showdown. It is easiest for management to deal with resistance when it is overt and immediate. threatening to go on strike. If for example. and so on. do you continually use the same route and streets? Probably if you’re like most people. immediate. For instance.4 Cause for Resistance to Change Resistance to change doesn’t necessarily surface in standardized ways. finding a new parking place. Fear of the Unknown: Change substitute ambiguity and uncertainty for the known. therefore. the selection process systematically selects certain people in and certain people out. Training . As human beings. a change is proposed and employees quickly respond by voicing complaints. When we are confronted with change. Resistance can be overt. we don’t need to consider the full range of options for the hundreds of decisions we have to make every day. it means you’re likely to have to change many habits: waking up 10 minutes earlier. 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. Let’s look at the sources of resistance. we’ve categorized them by individual and organizational sources. And people in general don’t like the unknown. So when your department is moved to a new office building across town. When Boeing announces its laying off 10. or the like. The same applies to employee. For example. For analytical purpose. Economic Factors: Another source of individual resistance is concern that changes will lower one’s income. They may.10. Organizational resistance Structural Inertia: Organizations have built-in mechanisms to produce stability. Habit Every day. this tendency to respond in our accustomed ways becomes a source of resistance. you find a single route and you use it regularly.000 people or Ford introduces new robotic equipment. develop a negative attitude towards quality management or behave dysfunctionally if required to use statistical techniques. developing a new lunchtime routine. taking a new set of streets to work. we’re creatures of habit. Security: People who have a high need for security are likely to resist change because it threatens their feeling of safety.
and benefits administration – has been resisted by many human resource departments. 10. if management changes the technological processes without simultaneously modifying the organization’s structure to match. rules and procedures for employees to follow. group norms may act as a constraint. So limited changes in subsystems tend to get nullified by the larger system. development of pay plans. The recent move by some companies to outsource many of their human resource activities – such as training. Changing Skill Sets More organizations are utilizing cross functional teams. Why? Because this outsourcing is a threat to the specialized skills held by people in HR departments. One area of organizations that continues its metamorphosis is the design itself. he’s likely to resist. The only constant in organizational life today appears to be the presence of continuous change. for instance. Thereat to Established Power Relationships: Any redistribution of decision-making authority can threaten long-established power relationship within the organization. For example. for instance. Limited Focus of Change: Organization is made up of interdependent subsystems. the way in which companies are configured today is changing. human resource people with engineers and finance individuals with operations employees. . mean a reduction in their budgets or a cut in their staff size? Those who most benefit from the current allocation of resources are often threatened by change that may affect future allocations. Threat to Expertise: Changes in organizational patterns may threaten the expertise of specialized groups. People from one functional department are placed on terms with people from other functional areas. An individual union member. That is. Will the change. Threat to Established Resource Allocations: the groups in the organization that control sizable resources often see change as a threat. the change in technology is not likely to be accepted. These teams are comprised of people from various areas within the company. Formalization provides job description. accountants work with marketers. 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.and other socialization techniques reinforce specific role requirements and skills.5 Impact of Change on Future Manager Organizations are changing nearly daily. may be willing to accept changes in his job suggested by management. For example. They tend to be content with the way things are. But if union norms dictate resisting any unilateral change made by management. You can’t change one without affecting the others. Group Inertia: Even if individuals want to change their behavior.
managers must be more skilled at reading the environment and grasping the big picture. Problem solving now involves the people who are experts in the issue – not necessarily those in high positions in the organization. Efforts at Individual Level A change is likely to affect some people in some way. Locavini observes that “the secret of real success is effective management of the emotional vulnerability that accompanies organizational change. 10. It implies explanation and . This requires that managers think differently and teach employees to think differently. Therefore. For example. at the level of individual and at the level of group. However. this is not a one-time action. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups.The ultimate goal is to improve organizational performance by cutting production time or time to market. strategic directions for the company must be identified in light of these changes. Involvement: Involvement is a process through which those who are affected by the change are brought to understand the change. In many cases. that is. the following efforts can be taken: 1. In addition.6 Methods of Reducing Resistance to Change One of the basic problems in managing change is to overcome people’s resistance to change successfully. through group dynamics. the problems can be solved at the same level. As organizations must be better equipped to respond to change in their external environment. the effect of the change may not be as functional as envisaged by the management. even the impact of change may be dysfunctional if change is imposed upon the people by the use of formal authority. rather should be looked upon as a dialogue which continues over a period of time. the role of formal authority in implementing a change may not be effective all the times. 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. Unless this problem is overcome properly. They need to be adept at reading the trends in the environment and then determining what they mean specifically for their own organization. It may affect only a few while others may not be affected. it can make effectively by managing resistance effectively. For this purpose.” Problem of overcoming resistance to change can be handled at two levels. 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. both at the formal and informal levels. More fluid structures require that managers improve their strategic orientation.” The newer organizational structures use term problem solving. typically by way of computer network links.
is an important trust-building task. It includes finding out from the members how they interpret the proposed changes and what they think about them. For using group as a means of overcoming resistance to change. education must be a part of the manager’s everyday activity on the job. the leader tries to overcome this resistance by leadership process. People always have some ideas and opinions about what is going on in the world and more specially if touches them personally. as discussed earlier. 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. Training and Psychological Counseling: The management can change the basic values of the people by training and psychological counseling. Commitment to take part in the change programme can be obtained in private from each individual. Thus. 2. it is more meaningful if it is done through group. understanding of change increases and personal involvement in the change increases. The fundamental idea in this process is to encourage the person to say something about any aspect of the change. Getting opinions out in the open. Obtaining Commitment: Commitment is an agreement to take an active part in the actual mechanics of the change. most of the times. instead of solving the problem at the individual level. and indoctrinated in new relationships. but a transformational leader can use personal reasons for change without arousing resistance. the level of resistance to change tends to decrease. its basic nature. 3. However. Efforts at Group Level Although agreement to a change can be obtained individually. Such educational process can be aided by training classes. helped to change attitudes. 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. meetings. They must be taught new skills. This helps in creating receptive environment in the organization. 4. A manager as weak leader presents change on the basis of the impersonal requirements of the situation. must be understood so that its effective use can be made. Though each person interprets the change individually often. People should be educated to become familiar with change. Usually. Thus. its process and working. An effective leader tries to time a change to fit the psychological needs of his followers. The decision to commit oneself is a dynamic process.then discussion of the proposed changes. 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. However. sometimes. and conferences. Group dynamics offers some basic help in this regard. he expresses it through a group. so that they are looked at and evaluated. As this process goes. to become effective. It grows slowly along with relationship. more than one person is involved in the change. either the subordinates do not resist or if they resist. Based on these characteristics of group as a means of change.
It implies a new equilibrium between different components of the organization – technology. 2. . Through the group contact. Such training techniques provide understanding of behaviour. Those people who are directly affected by the change should be given opportunity to participate in that change before the final decisions are reached. However. The organization must regard the participation as meaningful and share the results of the change with its members. The group contact offers some specific advantages: (i) Through groups. Even if only some of the members are affected by the change. the group itself should be the point of contact. 2. job design and people. Research studies also support this aspect. (iii) Group can get at the basic problem very rapidly as compared to a single individual. many things about change can be made clear. Group Contact: Any effect to change is likely to succeed if the group accepts that change. It purports how the results are. thereby the people can build up the climate based on mutual trust and understanding which are essential for bringing organizational changes successfully. and how the benefits of the meaningful and continuous dialogue are necessary. The same is true of problem-solving. (ii) In group. __________ are based on people’s emotions.such aspects as the reasons for change. Free flow of information helps people to understand the real picture of the change and many misunderstandings may be avoided. there may be some person who may communicate to the same group. and sensitivity or T-group training. taking whole of the group into confidence helps in maintaining a cooperative attitude. They must be made a party to the change rather than an agent for resistance to change. For this purpose.1. 3. and how members contribute. mere participation may not help. structural arrangement. 3. sentiments and attitudes towards change. It would be prudent for management to take labour representatives into confidence before implementing any change. _________ helps to give people involved in the organizational change and inculcate a feeling of importance. It makes people feel that the organization needs their opinions and ideas and is unwilling to go ahead without taking them into account. psychodrama. one can communicate with more people per unit of time. Such training techniques include role playing. Group Dynamics Training for Change: Group dynamics also helps in providing various training programmes for accepting and implementing change. benefits of change. Participation: Participation helps to give people involved in the organizational change and inculcate a feeling of importance. Self Assessment Questions 1. This is more important in the case of workers who themselves treat a separate group and do not identify with the management. _________ is the alteration of work environment in an organization. The laboratory method provides a setting where group processes can be studied intensively.
Refer section 10. Discuss the methods of reducing resistance to change. Explain the nature of change? 2. or the like. Reference: .9 Answers to SAQs and TQS SAQs: 1. Participation Answers to TQs: 1. threatening to go on strike.2 2. social factors.6. Changes may be influenced by external and internal factors. Organizational change 2. For instance. a change is proposed and employees quickly respond by voicing complaints. 10. group resistance and vested interests.4 3. that is. It is easiest for management to deal with resistance when it is overt and immediate. People tend to resist many types of changes because new habits or sacrifices are required.8 Terminal Questions 1. Refer section 10. 10. implicit. Why do organizations resist change? 3. Economic factors. both at the formal and informal levels. Refer section 10. through group dynamics. immediate.10. engaging in a work showdown. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. Organizational change is the alteration of work environment in an organization. psychological factors. Problem of overcoming resistance to change can be handled at two levels. or deferred. Psychological factors 3.7 Summary Change is inevitable. It implies a new equilibrium between different components of the organization. Resistance can be overt. at the level of individual and at the level of group.
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