MU0002-Unit-01-Introduction to Management

Unit-01-Introduction to Management Structure: 1.1 Introduction Objectives 1.2 Definitions of Management 1.3 Characteristics of Management 1.4 Scope and Levels of Management 1.5 Importance of Management 1.6 Role of Management 1.7 Administration and Management Self Assessment Questions 1.8 Summary 1.9 Terminal Questions 1.10 Answers to SAQs and TQs 1.1 Introduction Management is a global need. It is essential to every individual, a family, educational institution, hospital, religious organizations, team of players, a government, military systems, cultural body, urban centers and business enterprises. No individual can satisfy all his needs by himself. Men should join together and accomplish goals through co-operation. Whenever, there is an organized group of people working towards a common goal, some type of management is needed. A business enterprise must be directed and controlled by a group of people to achieve its goals. The resources of money, manpower, material and technology will be waste unless they are out to work in a co-ordinated manner. It is the ‘management’ which uses the available resources in such a manner that a business enterprise is able to earn ‘surplus’ to meet the needs of growth and expansion. Management is required to plan, organize, co-

ordinate and control the affairs of a business concern. It brings together all resources and motivates people to achieve the objectives of a business enterprise. Objectives: After studying this unit, you will be able to: · Define management. · Explain the characteristics of management. · Differentiate between management and administration. · State the principles of management. · Explain the roles of managers. · Explain managerial skills. 1.2 Definitions of Management Management may be defined in many different ways. Many eminent authors on the subject have defined the term “management”. Some of these definitions are reproduced below: According to Lawerence A. Appley – “Management is the development of people and not the direction of things.” In the words of George R. Terry – “Management is a distinct process consisting of planning, organizing, actuating and controlling performed to determine and accomplish the objectives by the use of people and resources.” According to James L. Lundy – “Management is principally the task of planning, co-ordinating, motivating and controlling the efforts of others towards a specific objective.” In the words of Henry Fayol – “To manage is to forecast and to plan, to organize, to command, to co-ordinate and to control.” According to Peter F. Drucker – “Management is a multi-purpose organ that manages a business and managers and manages worker and work”. In the words of Koontz and O’Donnel – “Management is defined as the creation and maintenance of an internal environment in an enterprise where individuals working together in groups can perform efficiently and effectively towards the attainment of group goals”.

According to Newman, Summer and Warren – “The job of management is to make co-operative endeavor to function properly. A Manager is one who gets things done by working with people and other resources.” From the definitions quoted above, it is clear that “management” is a technique of extracting work from others in an integrated and co-ordinated manner for realizing the specific objectives through productive use of material resources. Mobilizing the physical, human and financial resources and planning their utilization for business operations in such a manner as to reach the defined goals can be referred to as “management”. If the views of the various authorities are combined, management could be defined as a “distinct ongoing process of allocating inputs of an organization (human and economic resources) by typical managerial functions (planning, organizing, directing and controlling) for the purpose of achieving stated objectives, namelyoutput of goods and services desired by its customers (environment). In the process, work is performed with and through personnel of the organization in an ever-changing business environment.” From the above, it is clear that management refers to the process of getting activities completed efficiently and effectively with and through other people. The process represents the functions or primary activities engaged in by managers. These functions are typically labeled planning, organizing, leading, and controlling. Efficiency is a vital part of management. It refers to the relationship between inputs and outputs. If you can get more output from the given inputs, you have increased efficiency. Similarly, if you can get the same output from less input, you also have increased efficiency. Since managers deal with input resources that are scarce-mainly people, money and equipment-they are concerned with the efficient use of these resources. Management, therefore, is concerned with minimizing resource costs. Efficiency is often referred to as “doing things right”. However, it is not enough simply to be efficient. Management is also concerned with getting activities completed; i.e. it seeks effectiveness. When managers achieve their organization’s goals, we say they are effective. Effectiveness can be described as “doing the right things”. So efficiency is concerned with means and effectiveness with ends. Efficiency and effectiveness are interrelated. For instance, it is easier to be effective if one ignores efficiency. Timex could produce more accurate and attractive watches if it disregarded labour and material input costs. Some federal government agencies have been criticized regularly on the grounds that they are reasonably effective but extremely inefficient; that is, they get their jobs done but at a very high cost. Management is concerned, then, not only with getting activities completed (effectiveness), but also with doing so as efficiently as possible. Can organization be efficient and yet not effective? Yes, by doing the wrong things well. Many colleges have become highly efficient in processing students. By using computer-assisted learning, large lecture classes, and heavy reliance on part-time faculty, administrators have significantly cut the cost of educating each student. Yet students, alumni, and accrediting agencies have criticized some of these colleges for failing to educate their students properly. Of

All these resources are made available to those who manage. These factors do not by themselves ensure production. Goal-oriented: Management is a purposeful activity. It is imperative that the organizational goals must be well-defined and properly understood by the mangers at various levels.course. namely. People often remark of the effectiveness (or ineffectiveness) of management on the basis of the end results. Economic Resource: Management is one of the factors of production together with land. organizing. Managers apply knowledge. they require the catalyst of management to produce goods and services required by the society. Intangible Force: Management has been called an unseen force. Results through Others: The managers cannot do everything themselves. 6. directing and controlling. In essence. capital and materials. Distinct Process: Management is a distinct process consisting of such functions as planning. high efficiency is associated more typically with high effectiveness. 5. They must motivate the subordinates for the accomplishment of the tasks assigned to them. They must have the necessary ability and skills to get work accomplished through the efforts of others. management is an essential ingredient of an organization. labour and capital. . 2. although they can’t observe it during operation. It is the force which assembles and integrates other resources. staffing. labour. informed employees. Its presence is evidenced by the result of its efforts-orderliness. Integrative Force: The essence of management is integration of human and other resources to achieve the desired objectives. feeling of management is result-oriented. 4. the process of management involves decision-making and putting of decisions into practice. Thus. Thus. 1.3 Characteristics of Management Management is a distinct activity having the following salient features or characteristics: 1. These functions are so interwoven that it is not possible to lay down exactly the sequence of various functions or their relative significance. It is the most critical input in the success of any organized group activity. 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. experience and management principles for getting the results from the workers by the use of non-human resources. It co-ordinates the efforts of workers to achieve the goals of the organization. 3. buoyant spirit and adequate work output. The success of management is measured by the extent to which the organizational goals are achieved. One may not see with the naked eyes the functioning of management but its results are apparently known.

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

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

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

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

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

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

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

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

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

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

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

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

Refer section 1.9 Terminal Questions 2.3 Planning 2.10 Answers to SAQs and TQs .8 Summary 2.3 2.Answers to TQs: 1.6 Directing 2.7 Motivating Self Assessment Questions 2.5 3.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .1. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.2 Process of Management 2.4 Organizing 2.5 Staffing 2.2.1 Introduction Objectives 2. Refer section 1. Refer section 1.

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

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

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

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

Divide tasks into groups one person can accomplish – a job 4.4 Organizing It involves designing. Formalization is an important aspect of structure. An organization chart displays the organizational structure and shows job titles. with ideas and resources.must be accompanied by controls to ensure proper implantation of the plans. necessary to maintain competitive advantage in the said market. Review plans 2. Assign work to individuals 6. and coordinating the work components to achieve organizational goal. The purpose of the organizing function is to make the best use of the organization’s resources to achieve organizational goals. procedures. Organizations are groups of people. 2. A key issue in accomplishing the goals identified in the planning process is structuring the work of the organization. To develop an environmental monitoring procedure. and goals are clearly stated. Organizational structure is the formal decision-making framework by which job tasks are divided. and coordinated. who reports to whom. This review is used for the next planning cycle and review. Monitor the plan A systematic method of monitoring the environment must be adopted to continuously improve the strategic planning process. Delegate authority to establish relationships between jobs and groups of jobs.5 Staffing . Feedback is encouraged and incorporated to determine if goals and objectives are feasible. List all tasks to be accomplished 3. It is the process of determining what tasks are to be done. and relationships between departments. 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. It is the official organizational structure conceived and built by top management. Group related jobs together in a logical and efficient manner 5. how the tasks are to be grouped. grouped. who is to do. working toward common goals. lines of authority. structuring. The formal organization can be seen and represented in chart form. The steps in the organizing process include: 1. It is the extent to which the units of the organization are explicitly defined and its policies. 2.

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

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

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

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

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

Write a short not on directing.9 Terminal Questions 1. Reference 2. SWOT 3.6 Copyright © 2009 SMU Powered by Sikkim Manipal University .1 Introduction Objectives . Follett 2. Reference 2. What is planning? 2. Reference 2.5 3. Staffing Answers to TQs: 1. 2.3 2.2. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3.10 Answers to SAQs and TQs SAQs: 1. 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.

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

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

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

so that change is easily observed. 4. 7. 9. they are ongoing. This ‘planned’ emphasis separates OD efforts from other kinds of more haphazard changes that are frequently undertaken by organizations. OD takes a developmental view that seeks the betterment of both individuals and the organization. OD efforts take an organization as an interrelated whole and no part of it can be changed meaningfully without making corresponding changes in other parts.3. 5. Participation and involvement in problem-solving and decision-making by all levels of the organization are hallmarks of OD. It recognizes that organizational goals change. Long-range Change: OD efforts are not meant for solving short-term. and co-learners with the client system. 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. 10. OD focuses on total system change and views organizations as complex social systems. An overarching goal is to make the client system able to solve its problems on its own by teaching the skills and knowledge of continuous learning through self-analytical methods. OD views organization improvement as an ongoing process in the context of a constantly changing environment. or isolated problems. rather. OD efforts are not one-shot actions. OD relies on an action research model with extensive participation by client system members. OD focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. . 3. Rather. Thus. The concept of comprehensive change is based on the systems concept-open. and cyclic processes. 4. rather than focusing attention on individuals. 3. dynamic and adaptive system. interactive. 8. 6. so the methods of attaining these goals should also change. Planned Change: OD is a strategy of planned change for organizational improvement. Attempting to create “win-win” solutions is standard practice in OD programs. collaborators.3 Characteristics of OD 1. OD focuses on the elevation of an organization to a higher level of functioning by improving the performance and satisfaction. 2. temporary. Teams of all kinds are particularly important for accomplishing tasks and are targets for OD activities. Comprehensive Change: OD efforts focus on comprehensive change in the organization. OD practitioners are facilitators.

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

(d) To build trust among persons and groups throughout an organization. (j) To improve effectiveness of the organization. problem solving climate throughout an organization. its underlying theory and assumptions and some of the pitfall and challenges in attempting to improve organizations through behavioural science. (i) To increase self-control and self-direction for people within the organization.5 Goals of Organization Development Following are the generally accepted goals of OD: (a) To create an open. with the authority of knowledge and competence. and (d) The interventions are based on behavioural science theory and technology. We need to examine carefully the techniques of Organization Development. (g) To increase the sense of ‘ownership’ or organization’s objectives throughout the work force. (e) To make competition more relevant to work goals and to maximize collaborative efforts. (b) To supplement the authority associated with role or status. 3. (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.(c) The interventions are directed towards problem-solving and improved functioning for the client system. like other normative re-educative programmes. 3.6 OD and Management Development . (f) To develop a reward system which recognizes both the achievement of the organization’s goals (profit or service) and development of people. This Organization Development progrmmes. (c) To locate decision making and problem-solving responsibilities as close to sources of information as possible. 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.

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

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

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

_____________is a short-term strategy. What are the problems involved in the implementation of OD? 3. 3. Top management 2. Distinguish between ‘organizational development’ and ‘management development’. Tom Peters 3. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. There is no ‘quick fix’ to organizations’ problems. 2. 4.Self Assessment Questions 1. Define OD. 5. The participative.10 Terminal Questions 1. collaborative.11 Answers to SAQs and TQs SAQs: 1. 4. ––––––– is associated with “Liberation Management”.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. ––––––––– is a process which includes leadership behaviours and human resource practices. Who is associated with the “Learning Organizations”? 5. Organization development should be led and supported by –––––––. problem-focused ‘nature of OD’ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. 3. Explain the various characteristics of OD. Empowerment . But OD aims at changing the entire organizational climate where the managers work. OD is the ultimate remedy for organizational improvements and developments. 3. 3. Management development aims at developing the managers individually. 2. OD focuses on culture and processes. State the various roles of OD. Explain its salient features.

5 Leadership Development 4. Refer section 3.4.3 Process Consultation 4.3 3.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .1 Introduction Objectives 4.6 Team-building . Refer section 3. Management development Answers to TQs: 1.2 2. Peter Senge 5.Organization Development – Interventions Structure: 4.7 5. Refer section 3.4 Grid Training 4.Organization Development – Interventions Unit-04. Refer section 3.6 4.2 Survey Feedback 4. Refer section 3. MU0002-Unit-04.

inter-group level.7 Inter Group Development 4. work group. Interventions constitute the action thrust of organization development.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. For example. interpersonal level. the classification appears to be more relevant because it may specify the . Therefore.11 Terminal Questions 4. interventions may be required to change people at all these levels. Nevertheless. many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others. 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. the classification of OD interventions shows variation.12 Answers to SAQs and TQs 4.9 Role of Change Agents Self Assessment Questions 4. and organizational level. However. Thus. People’s behaviour may be relevant to understand at individual level. French and Bell have suggested twelve families of OD interventions: diagnostic. such a classification of interventions may not put them into mutually exclusive categories as a particular intervention may be applied at more than one level. Further. management grid. inter-group activities.4. they make things happen.10 Summary 4. education and training.8 Change Agents 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. various consultants and practitioners have different opinions about the activities which can be included in interventions. techno-structural activities. and organizational culture.” There are various OD interventions and they are classified in different ways. mediation and negotiation activities. team-building. group level. 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. survey feedback. process consultation.

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

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

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

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

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

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

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

a team is created to undertake a task which requires a variety of skills and single individual cannot perform that task alone. 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. 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. To the extent.” Thus. 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. committee. This phenomenon may happen in teams in work organizations too. These students may be called loafers (not attaching the same connotation which is attached with the term loafer in our social phenomenon) who frequently miss the project group’s meetings. etc. After the adjournment of the team. 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. concept of stages is significant in the context of the nature of problem which team members are likely to face in team-work. Other types of team like a department in an organization run on the basis of some permanency though there may be changes in team members. that is. intense social relationship among members comes to an end. For example. . the team would be effective. 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. synergistic effect is not automatic but depends on the complementarity of different elements that are put together and the way they interact among themselves. 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. students find that one or two students do not put their weight for the completion of the project. in one experiment. They rely on the fact the more reliable members will complete the project without their help. team-work does not necessarily spurt group efforts. In such an assignment.adjournment phase takes place in the case of those teams which are created for some special purposes like task force. the complementarity among members is achieved. and so on. other factors remaining the same. A simple phenomenon of social loafing may be observed in a group assignment to students during their study. how a particular element affects another and is affected by it. However. In fact. fail to perform their assigned tasks.

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

3. Super-ordinate Goals: Super-ordinate goals are those which are above the goals of a single team or a single individual. An individual works better if he is able to link how his goal attainment leads to the attainment of a higher-level goal. These super-ordinate goals, then, serve to focus attention, unify efforts, and stimulate more cohesive team efforts. 4. Team Rewards: Team performance depends on how reward is linked to team performance and how members perceive this linkage. If team members perceive that reward to contingent on team performance, they will put their maximum. Rewards of both types- financial and nonfinancial-should be taken into consideration. Further, organizations need to achieve a careful balance between encouraging and rewarding individual initiative and growth and stimulating full contributions to team success. Innovative non-financial team rewards for responsible behaviour may include the authority to select new members of the group, make recommendations regarding a new supervisor, or propose discipline for team members. The positive aspect of all these factors leads to team effectiveness and team members share common values regarding product quality, customer satisfaction, and share the responsibility for completing a project on schedule. Katzenbatch and Smith, management consultants, have suggested the concept of real team and they feel that this concept is relatively unexploited despite its capacity to outperform other groups and individuals. They define four characteristics of real teams: small size; complementary skills; common purpose, goals, and working approach: and willingness to be held mutually accountable. Real teams can be created and sustained by: 1. Selecting members for their complementary skills and potentials; 2. Developing clear rules of conduct and challenging performance goals; 3. Establishing a sense of urgency right from the first meeting. 4. Providing substantial time together in which new information is constantly shared; and 5. Providing positive feedback, recognition, and rewards. Team-building Process: Team-building attempts to improve effectiveness of the team by having team members to concentrate on: 1. Setting goals and priorities for the team. 2. Analyzing how team’s goals and priorities are linked to those of the organization. 3. Analyzing how the work is performed. 4. Analyzing how the team is working, and

5. Analyzing the relationships among the members who are performing the job. For achieving these, the team-building exercise proceeds in a particular way as shown in figure.

Fig. 4.2: Process of Team-building Various steps of team-building process are not one-shot action, rather, they are repetitive and cyclical as indicated by arrows in the figure. 1. Problem-sensing: There are a number of ways in which problems of a team can be obtained. Often the team itself defines which aspects of team-building it wishes to work on. This problem can better be identified in terms of what is hindering group effectiveness. At this stage, generally most of the members come forward with their arguments as to what the real problems are. The view may be quite different ranging from the organizational problem, group problems to even personal problem. In problem identification, the emphasis should be on consensus. The consensus-seeking part of the process necessitates that each person becomes thoroughly aware and understand clearly the basic concepts of team-development. Much of the problems may be solved through effective communication and training sessions. 2. Examining Differences: The perception of people on an issue differs because of their differing backgrounds, such as, their value systems, personality and attitudes. The perception may be brought to conformity through the process of exercise on perception which involves a number of psychological exercises particularly on perceptual differences. The role of communication is important in this context because it will help in clarifying the actual problems to the members. 3. Giving and Receiving Feedback: The step of perceiving things and listening to each other may be relayed back to the members as there is a possibility that such processes may create tense situation in the group. Often, members report about the painful feelings that they have at the time of evaluation of their feelings. The discussion should continue until all members of the team have commented. The feedback should be given to the members about their feelings, about the issue, the way people talk about the issue, the stying with the topic or going off on tangents, who was talking more or who was talking less, who was trying to resolve the differences, etc. Such feedback generally provides members to evaluate the values but at the same time, also provides opportunity to understand themselves. The concept of Johari Window may also be applied. This suggests that even people are not fully aware of themselves. 4. Developing Interactive Skills: The basic objective of this process is to increase the ability among the people as to how they should interact with others and engage in constructive behaviour. Following are the examples of constructive and negative behaviours:

Constructive Behaviour: (i) Building: developing and expanding the ideas of others. (ii) Bringing in: harmonizing, encouraging others to participate. (iii) Clarifying: resting, ensuring, understanding, seeking relevant information. (iv) Innovative: bringing in new relevant ideas, information, feelings, etc.
Negative Behaviour

(i) Over talk: interrupting, talking together with speaker. (ii) Attacking: deriding, belittling, criticizing person. (iii) Negative: cooling, cynicism, undermining morale. At the time of discussion of feedback, people themselves take assignments to increase specific constructive behaviours and decrease specific negative behaviours. If this process is adopted several times, there is a strong possibility that members may learn constructive behaviours and leave negative behaviours. This is quite helpful in developing teamwork. 5. Follow-up Action: This is the final stage in team-building. At this stage, the total team is convened to review what has been learned and to identify what the next step should be. Follow-up action also helps in overcoming the drawback involved at the initial stages of teambuilding. It involves deciding who will take care of each area of the team’s responsibilities, and who will be responsible for team projects in a group that has not developed a satisfactory division of responsibility; clarifying and setting differences in perception concerning responsibility and authority in the team, with complex division of responsibility and authority among members. These attempts bring co-operative and supportive feelings among people involved in the team functioning. When this exercise is undertaken at the initial stage, it contributes positively towards the feelings of the people. However, to encourage and sustain such feelings, management should take such actions at regular intervals so that members feel reinforced and sustain their positive behaviour. Such actions will go a long way in shaping the organizational climate quite conducive to members for their efficient working. Evaluation of Team-building As mentioned earlier, team-building as an OD intervention has attracted maximum attention. Many research studies have also confirmed the positive contributions of team-building on the

listening. one of the more Popular methods emphasize problem solving. 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. and the groups look for the causes of the disparities. team-building has been termed as one-sided effort and it suffers from the following limitations: 1.organization’s outcomes. the other group. . Team-building becomes a complicated exercise when there is frequent change in team members. there have been calls for combining team-building with organization behaviour modification approaches. stereotypes. One such suggestion is to use a task hierarchy to reinforce the team as it progresses up a behaviour skill hierarchy (for example. The groups then share their lists. and feedback skills). In this method. the groups can move to the integration phase – working to develop solutions that will improve relations. However. in different degrees. However. It seeks to change to attitudes. structure. In spite of these problems. communicating. Therefore. each group meets independently to develop lists of its perception of itself. 2. are not given adequate attention. and how it believes the other group perceivers it. 3. It helps developing communication within the group and inter-group and overcoming many psychological barriers that block communication flow. Differences are clearly articulate. 2. and perceptions that groups have of each other. It helps in developing effective interpersonal relationships by stimulating the group members for that. 4. It focuses only on work groups and other major organizational variables such as technology. etc. In general. Although there are several approaches for improving intergroup relations.. team-building has a positive outlook. this has been a subject to which change efforts have been directed. after which similarities and differences are discussed. Once the causes of the difficulty have been identified. monitoring. team-building contributes to the organizational performance in the following manner: 1.7 Inter-group Development A major area of concern is OD is the dysfunctional conflict that exists between groups. it is not that effective in isolation. It improves the organization’s problem-solving and decision-making ability. As a result. though.

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

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

2 Definitions and . Refer section 4. Assumptions. 3.1 Introduction Objectives 5.3.12 Answers to SAQs and TQs SAQs: 1. Refer section 4. Refer section 4. Assumptions. Social loafing Answers to TQs: 1.6 4. Explain Change agents and discuss the role of change agents in detail. Blake and Mouton. 4.4 2. What is team-building? What are the stages of life cycle of a team? 4. Refer section 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Data collection 2.2 3. and Beliefs in Organization Development Structure: 5. Beliefs in Organization Development Unit-05-Values. MU0002-Unit-05-Values.

2 Implications for Dealing with Groups 5.5 Implications of OD Values and Assumptions 5. and beliefs constitutes an integral part of organization development. · Give the statement of OD values and assumptions. · State the implications of OD values and assumptions. Objectives: After studying this unit. · List the chronology of events of values.5. shaping the goals and methods of the field and distinguishing OD from other improvement strategies. assumptions. it is a cognitive fact for the person. Most of these beliefs were formulated early in the development of the field.5.1 Introduction A set of values. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers. beliefs and assumptions. 5.5.7 Terminal Questions 5.2 Definitions A belief is a proposition about how the world works that the individual accepts as true. .6 Summary Self Assessment Questions 5.5.3 Chronology of Events in Management and Organization Thought 5.8 Answers to SAQs and TQs 5.3 Implications for Designing and Running Organizations 5.4 Early Statements of OD Values and Assumptions 5. and they continue to evolve as the field itself evolves. beliefs and assumptions.1 Implications for Dealing with Individuals 5. you will be able to: · Explain the meaning of values.

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

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

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

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

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

mutual trust. and individuals continuously manage their affairs against goals. Decision-making in a healthy organization is located where the information sources are. not the basis of managerial strategy. 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." People affected by a change must be allowed active participation and a sense of ownership in the planning and conduct of the change. director of organization development. · Away from maskmanship and game-playing toward authentic behaviour. 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. 5. "People support what they help create. · Away from a view of individuals as fixed. · Away from avoidance of negative evaluation of individuals toward confirming them as human beings. presented their view of OD values in a 1969 article. Controls are interim measurements. 4. . a professor and Sheldon Davis. · Away from use of status for maintaining power and personal prestige toward use of status for organizationally relevant purposes. One goal of a healthy organization is to develop generally open communication. · Away from walling off the expression of feelings toward making possible both appropriate expression and effective use. rather than in a particular role or level of hierarchy. toward seeing them as being in process. · Away from resisting and fearing individual differences toward accepting and utilizing them. An always relevant change goal is the reduction of inappropriate competition between parts of the organization and the development of a more collaborative condition. Organizations. · Away from avoiding facing others with relevant data toward making appropriate confrontation. · Away from distrusting people toward trusting them. · Away from utilizing an individual primarily with reference to his or her job description toward viewing an individual as a whole person. Robert Tannenbaum. and confidence between and across levels. 6.2. 3. sub-units of organizations.

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

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

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

F. Cognitive 2.W. Refer section 5. __________ is associated with scientific management. State the assumptions of Theory X and Theory Y. Bureaucracy 4. _______________ gave theory X and theory Y.2 2. Write a note about F.3 . 2. beliefs. 5.1. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. Taylor 3. Taylor’s principles of scientific management. The concept of –––––––––– was introduced by MaxWeber. What was the outcome of Hawthorne Experiments? 4. The outcome of –––––––– was that people were not cogs and organizations were not machines. 4. 5. 5.3 3. 3. and assumptions are all –––––––––– facts.8 Answers to SAQs and TQs SAQs: 1. 3.7 Terminal Questions 1. beliefs and assumptions. Refer section 5. Refer section 5. values. 2. Hawthorne experiments 5. W. Define concepts. Values. Douglas McGregor Answers to TQs: 1.

3.4 Participation and Empowerment .3 Socio-technical Theory and Open Systems Planning 6.2 Beyond the Quick Fix 6.2.1 The Nature of Systems 6.3 Introduction Objectives 6. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6. Refer section 5.3 Systems Theory 6.4 Open Systems Thinking 6.2.2 Models and Theories of Planned Change 6.2 Congruence among System Elements 6. Refer section 5.3 Copyright © 2009 SMU Powered by Sikkim Manipal University .2.2.3 The Burke-Litwin Model of Organizational Change 6.4 Porras and Robertson Model of Organizational Change 6.1 Kurt Lewin and Friends 6.3.

6 Parallel Learning Structures 6.5 Teams and Teamwork 6.1 Introduction This unit describes the foundations of organization development theory and practice. In this discussion.6. art and science which form the knowledge base upon which OD is constructed. you will be able to: · Explain various models and theories of planned change.9 Action Research Self Assessment Questions 6. · Explain the terms ‘participation’ and ‘empowerment’. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning.10 Summary 6. · Explain systems theory.7 A Normative – Re-educative Strategy of Changing 6. We will examine the following concepts: . · Explain normative-re-educative strategy of changing The knowledge base of OD is extensive and is constantly growing.12 Answers to SAQs and TQs 6. Here we describe what we believe are the most important underpinnings for the field.11 Terminal Questions 6. · Realize the importance of teams and teamwork.8 Applied Behavioural Science 6. Objectives: After studying this unit. · Describe the parallel learning structures. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs.

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

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

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

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

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

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

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

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

" Hanna says: "A system is an arrangement of interrelated parts. Systems theory is one of the most powerful conceptual tools available for understanding the dynamics of organizations and organizational change. when taking a systems approach. one begins by identifying the individual parts and then seeks to understand the nature of their collective interaction. and delineated by identifiable boundaries from its environmental supra. Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950. This section explains systems theory.Fig. components. 6.3 Systems Theory A second foundation of organization development is systems theory. or subsystems. and shows how systems theory enhances the practice of OD. Fagen defines system as "a set of objects together with relationships between the objects and between their attributes. unitary whole composed of two or more interdependent parts.5: A Change-based Organizational Framework 6. and Katz and Kahn were the first to apply open systems theory to organizations in 1966." To summarize. system denotes interdependency. Thus. which views organizations as open systems in active exchange with their environment. and interrelatedness among elements in a set that constitutes an identifiable whole or gestalt." Kast and Rosenzweig define system as "an organized.system. . The words ‘arrangement’ and ‘interrelated’ describe interdependent elements forming an entity. that is the system. interconnectedness." Von Bertalanffy refers to a system as a set of "elements standing in interaction. describes the characteristics of systems.

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

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

In a company that is performing poorly. and individual level. Outputs are performance at the total organization level. work. formal organization. performance will suffer. knowledge.7: The Congruence Model Showing the Organization as a System The congruence model’s value is as an analytical tool for: 1) Assessing the characteristics and functioning of each of the elements. and the workforce’s expectations." The premise is that alignment (harmony. and informal organization. . fit) must be present among the system’s components’ for the organization to produce satisfactory outputs. processes. 2) Resources available to the organization. what the organization is trying to accomplish and how it plans to do it. performance will suffer. important events. You can use this model to analyze organizations with which you are familiar. and 2) Evaluating the "goodness of fit" or how well the elements "go together. and critical decisions that still influence behaviour today. 6. For example. Fig. and 3) History which consists of memories of past successes. performance will suffer.1) The environment. which components are "not functioning correctly. perceptions. and how things really work (versus how they are supposed to work as defined by the formal organization). people. If the strategy calls for entrepreneurial quickness and risk-taking and the formal organization is bureaucratic and highly centralized. failures. knowledge. which imposes constraints and opportunities about what the organization can and can not do. unit/group level. the tasks people perform to create products and service markets people. and technology. Elements of the organization per se are labeled strategy. if people don’t have the skills and knowledge required to do the work. and systems for performing the work. which includes skills. which includes formal structures. such as capital." and which elements . which includes the organization’s culture informal rules and understandings. If the organization’s culture (informal organization) praises individual accomplishments and the work requires teamwork and collaboration.

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

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

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

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

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

and initiate needed changes. The quality of work life programs of the 1970s and 1980s used parallel structures composed of union leaders. Interestingly. and countless other organizations to demonstrate the ability of small project teams to produce high quality. In essence. Dale had introduced this concept in 1974 under the label collateral organization and defined it as “a supplemental organization coexisting with the usual formal organization. High responsibility. At Ford Motor Company. Projects are the work of the future. It isn’t the supplemental structure that’s important. normal hierarchical considerations become obsolete for these project teams-you could be the boss of one team. and employees. a steering committee and working groups were used to co-ordinate the employee involvement teams. Bushe and Shani say: “The key thing about parallel structures is that they create a bounded space and time for thinking.” The purpose of the collateral organization is to deal with "ill-structured" problems the formal organization is unable to resolve. engage in genuine inquiry and experimentation. 6. clear objectives. 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. and high accountability drive these project teams to outperform traditional organization structures on every measurable dimension. and then leading the process. parallel structures are a vehicle for learning how to change the system. Parallel learning structures are often the best way to initiate change in large bureaucratic organizations. specially created organizational structures for planning and guiding change programs.” Parallel structures help people break free of the normal constraints imposed by the organization. and acting differently than normally takes place at work. and report to one of your subordinates on another team. If you don’t implement different norms and procedures. flexible response. and continuous learning. especially when the change involves a fundamental shift in the organization’s methods of work and/or culture. deciding.Titeflex. The most important and difficult task for the people creating the parallel learning structure is to create a different culture within it. 6.6 Parallel Learning Structures Parallel learning structures. managers. constitute another important foundation of organization development. you don’t have a parallel structure. Considerable experimentation with collateral organizations occurred in the 1970s and 1980s. talking. 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. projects will be performed by teams.7 A Normative – Re-educative Strategy of Changing . superior customer service. What’s important is that people act in a way that promotes learning and adaptation. Parallel learning structures are a foundation of OD because they are prevalent in so many different OD programs.

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

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

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

Bring out the essence of “managing beyond the quick fix” model of organizational development.11 Terminal Questions 1.10 Summary The foundations of organizational development form the theoretical and practice underpinnings of the field. Action research model combines learning and doing. Self Assessment Questions 1. The Burke-Litwin model emphasized on first-order and second-order 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. _____________ means sum of the efforts of team members is far greater than the sum of individual efforts of members.These foundations of organization development form the theoretical and practice underpinnings of the field. they constitute the beginning of a theory of organization development and change that has enormous potential for improving organizational performance and individual development. . Taken collectively.” 5. 4. OD interventions alter features of the work setting causing changes in individuals’ behaviours. A fundamental belief in OD is that work teams are the building blocks of organizations. 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. Explain Kurt Lewin’s models and theories of planned organizational change. –––––––––– gave the model “Beyond the Quick Fix”. A _____________ is defined as “a set of elements standing in interaction. which in turn lead to individual and organizational improvements is the principle of Porras and Robertson model organizational change. Taken separately. 2. –––––––––– means moving to new level of behaviour. First—order change is also called ___________. What are first-order and second order change according to Burke-Litwin Model of organizational change? Explain. Ralph Kilmann specified the critical leverage points for organizational change. 3. each is a powerful conceptual tool for thinking out and implementing change. Systems theory views organizations as open systems in active exchange with their environment. 3. 6. 2. 6.

Refer section 6.4.2. Ralph Kilmann 3.1 2. MU0002-Unit-07-Organization Climate Unit-07-Organization Culture and Climate Structure: 7. Synergy Answers to TQs: 1. System 5.2.3 4. What are the features of systems theory of organizational development? 5. Refer section 6.1 Introduction Objectives 7.” Comment on this statement. Unfreezing 2.2 3.12 Answers to SAQs and TQs SAQs: 1.2 Characteristics of Organization Culture Culture and .Refer section 6. “Work teams are building blocks of organizational development.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .2. 6. Transactional change 4.3 5. Refer section 6. Refer section 6.

Martin and Meyerson. you will be able to: · Understand Organization Culture. organizational change must include not only changing structures and processes. etc.1 Introduction Basically. . the culture of a large. and feeling in relation to these problems (Schein. what members wear. 1986).5 Developing and changing Organization Culture Self Assessment Questions 7. You can tell the culture of an organization by looking at the arrangement of furniture. but also changing the corporate culture as well.7 Terminal Questions 7. but everyone knows it when they sense it.4 Organization Culture and Effectiveness 7. The concept of culture is particularly important when attempting to manage organization-wide change.7. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration.3 Types of Organization Culture. what they brag about. Members of an organization soon come to sense the particular culture of an organization. norms and tangible signs (artifacts) of organization members and their behaviors. For example. – similar to what you can use to get a feeling about someone’s personality. discovered. 7. Comprehensively organization culture is the pattern of basic assumptions that is invented. Culture is one of those terms that’s difficult to express distinctly. values. Culture is comprised of the assumptions. thinking. Objectives: After studying this unit.6 Summary 7.8 Answers to SAQs and TQs 7. organizational culture is the personality of the organization. and validated enough to be taught to new members as the correct ways of perceiving. Practitioners are coming to realize that. for-profit corporation is quite different than that of a hospital which is quite different than that of a university. despite the best-laid plans. · Describe different types of Organization Culture · Explain organization culture and effectiveness.

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

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

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

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

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

Recruit outside personnel with industry experience. Self Assessment Questions 1. especially when making changes in rules and processes. 9.3. attitudes. so that a consistent message is delivered from all management team members. commitment. 2. Move quickly and decisively to build momentum and to defuse resistance to the new culture. take these losses early. 3. Emotions. ________cultures are outward looking. Stay the course by being persistent. Include employees in the culture change process. Expect to have some problems and find people who would rather move than change with the culture and. organizational cultures can be managed and changed over time. 7. Set realistic goals that impact on the bottom line. 6. Assess the current culture. 4. 8. The personal feelings. 3. 1. This attempt to change culture can take many different forms. _____are the visible manifestations of culture as seen in the physical and social environment of the organization. Make changes from the top down. Take out all trappings that remind the personnel of the previous culture. Simple guidelines such as the following can be helpful.6 Summary . These emotions will be a major input into the clash or compatibility of the two cultures. and patterns of daily behavior. Guidelines for change Despite the significant barriers and resistance to change. 2. 5. habits. are particularly driven by results and are often very competitive. the “culture contract” that individuals have bought into to guide their day-to-day thoughts. ___________are those factors that influence the course of development within an organization and its results or accomplishment. if possible. so that they are able to interact well with the organizational personnel. 7.

and strategic constituencies approach. Briefly explain different types of organizational culture. 2. Effectiveness of an organization can be increased through economic man approach and administrative man approach. Finally.2 2. Market 3. 7. Discuss the development and change of organizational development.7 Terminal Questions 1. 3.goal approach. Causal variables Answers to TQs: 1. . Organizations to be successful must be efficient and effective.8 Answers to SAQs and TQs SAQs: 1. system-resource approach. Organizational effectiveness can be measured through various approaches. Factors in organizational effectiveness include casual variables. Artifacts 2. intervening variables and end-result variables and there exists interrelationship among these variables. effectiveness through adaptive-coping cycle has been discussed. 7. Refer section 7.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .3 3. Refer section 7. Refer section 7. Explain the characteristics of organization culture.Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. behavioural approach.

10 Terminal Questions 8.2 Power Defined and Explored 8.Power.” Organization development has been criticized for not taking into account power in organizations. In this unit. Organization Development Unit-08.5 Organizational Politics Defined and Explored 8.11 Answers to SAQs and TQs 8.7 Operating in a Political Environment 8.4 Theories about the Sources of Social Power 8. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics.9 Summary 8. As Warner Burke observes: "Organization development signifies change. power must be exercised.6 The Role of Power and Politics in the Practice of OD 8. we examine power and politics in relation to organization development. and for change to occur in an organization. That criticism was essentially correct for many years although it is less valid .8 Acquiring and using Power Skills Self Assessment Questions 8.1 Introduction Objectives 8.3 Two Faces of Power 8. must be understood if one is to be effective in organizations.MU0002-Unit-08Power. indisputable facts of organizational life. Politics and Organization Development Structure: 8.1 Introduction Politics and Power and politics.

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

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

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

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

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

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

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

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

" OD practitioners have typically pursued a "playing it straight" strategy as their sole means of exerting power. dealing directly with powerholders and decision makers. problem solver. Table 8. As shown in the figure." which arouses defensive actions. not content." "using social networks. Illegitimate behavior encroaches on others’ legitimate "turf. and using contacts for information. and educator." and "going around the formal system. not power activist or power broker. but these give the flavor of the issues one must consider when operating in a political environment. not by getting involved in the answers. Abiding by this rule keeps the consultant from becoming entangled in politics. individual power derives from knowledge. catalyst. Organizational politics revolve around decisions: Should we seek Goal A or Goal B? Should we use Means X or Means Y? Should we promote Mary or John? The proper role of OD consultants is to help decision makers by providing them with good decision-making processes.1: Power Base and Power Strategy Connection Individual Power Bases Knowledge Strategies for Success Playing It Straight . Networking is recognized as a potent. and the characteristics and behaviors of powerholders. which is to be an expert on process. The principle is simple but powerful: know your legitimate business and stick to it. We could propose more rules of thumb. and personality characteristics. The authors propose adding the "using social networks" strategy to their repertoires. negotiations the nature of power and politics. thereby greatly expanding practitioner influence. while at the same time increasing his or her usefulness to the organization’s powerholders. such behavior is often interpreted as politically motivated. One carries out such a strategy by participating in alliances and coalitions. 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. Illegitimate behavior causes others to try to exert greater control over the situation. others’ support. 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. viable. Earlier we stated that the OD practitioner should learn as much as possible about bargaining. the strategy and tactics of influence. yet legitimate means of acquiring power. Three successful power strategies are "playing it straight. Rule Seven: Mind your own business because to do otherwise is to invite political trouble. We believe the legitimate role of the OD practitioner is that of facilitator.Rule Six: Mind your own business.

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

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

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

6 5. Define organization politics. Identify the bases of individual power and the respective strategies for their success. Refer section 8. Refer section 8.1 Introduction . Personality Answers to TQs: 1. Describe briefly various theories of power.4 3.5 4. 5.2 2. 4. Harold Lasswell 5. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9.2. 8.Refer section 8. 3. Explain the role of power and politics in the practice of OD.11 Answers to SAQs and TQs SAQs: 1. Refer section 8. Refer section 8. Power 2. McClelland 3.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Referent power 4.

12 Answers to SAQs and TQs 9.11 Terminal Questions 9.2 Meaning and Definitions 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.9 Reengineering Self Assessment Questions 9.7 Parallel Learning Structures 9. organizational problems may repeat.6 Quality of Work Life Projects 9. An organization development intervention is a sequence of activities. These programs are derived from careful diagnosis.4 Management By Objectives 9.3 Socio Technical Systems 9.Objectives 9.8 Total Quality Management 9. Nothing is permanent except change because change is permanently changing. Objectives: .1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival.10 Summary 9. These methods are receiving increasing attention in Organization Development. events intended to help an organization improve its performance and effectiveness. 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. In this dynamic and fluid environment.5 Quality Circles 9. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design. These interventions vary from standardized program that have been developed and sometimes tailored program. actions.

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

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

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

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

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

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

· A major emphasis on continuous learning. It seeks to make such processes more efficient by combining. events intended to help an organization improve its performance and effectiveness. such as cost. Quality . The term MBO was coined by _________ in 1964. 2. service. · Top management support on an ongoing basis.· Competitive benchmarking. · Participative management. Sociotechnical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. 9.9 Reengineering It is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical. · An emphasis on teams and teamwork. 9.10 Summary An organization development intervention is a sequence of activities. An organization development __________ is a sequence of activities. eliminating. MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. 3. events intended to help an organization improve its performance and effectiveness. Reengineering is a top-down process. · Continuous search for sources of defects with a goal of eliminating them entirely. assumes neither an upward flow of involvement nor that consensus decision making. consciously directed towards the effective and efficient achievement of organizational objectives. contemporary measures of performance. Self Assessment Questions 1. actions. and speed. From a benefit cost analysis. structural Interventions compare quite favorably with all other alternatives. quality. actions. __________ represents a participative approach to employee involvement in problem solving and productivity improvement. There are a number of reasons why a consultant should consider employing a structural intervention. or restructuring activities without regard to present hierarchical or control procedures. Reengineering focuses on visualizing and streamlining any or all business processes in the organization.

Refer section 9. .12 Answers to SAQs and TQS SAQs: 1. Discuss Socio Technical Systems? 2.2 3.3 2. ties reward to performance and increase workers knowledge and skills through extensive training.11 Terminal Questions 1. Drucker 3.5 4. Quality circle Answers to TQs: 1. Write a short note on Total Quality represents a participative approach to employee involvement in problem solving and productivity improvement. TQM pushes decision making power downwards in the organization. Refer section 9. What are the advantages of structural interventions? 3. It consists of small group of employees who meet voluntarily to identify and solve productivity problems.Refer section 9.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . 9. provides relevant information to all employees. It is also called continuous quality improvement. Explain Management By Objectives? 4. 9. Refer section 9. Intervention 2.

4 Causes for Resistance to Change.9 Answers to SAQs and TQs 10.MU0002-Unit-10-Managing Organization Development Unit-10-Managing Change in Organization Development Structure: 10. organizational problems may repeat.1 Introduction Change in Organizations are increasingly realizing the fact that change is the price of the survival. Hence. In this dynamic and fluid environment.6 Methods of Reducing Resistance to Change.2 Nature of Change 10. Self Assessment Questions 10. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future. Nothing is permanent except change because change is permanently changing. cope with the ongoing changes successfully in the first instance.3 Resistance to Change 10. 10. Objectives: .8 Terminal Questions 10.5 Impact of Change on the Future Manager 10.1 Introduction Objectives 10. and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other.7 Summary 10. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented).

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

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

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

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

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

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

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

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

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

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

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

9 Answers to SAQs and TQS SAQs: 1. both at the formal and informal levels. Explain the nature of change? 2.8 Terminal Questions 1. group resistance and vested interests. Discuss the methods of reducing resistance to change. at the level of individual and at the level of group. Psychological factors 3. Why do organizations resist change? 3.7 Summary Change is inevitable. through group dynamics. Organizational change is the alteration of work environment in an organization. It implies a new equilibrium between different components of the organization.10. Changes may be influenced by external and internal factors. 10. For instance. Participation Answers to TQs: 1. Reference: . Refer section 10. It is easiest for management to deal with resistance when it is overt and immediate. or deferred. or the like. Resistance can be overt. psychological factors. immediate. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. that is. a change is proposed and employees quickly respond by voicing complaints. engaging in a work showdown. social factors. Organizational change 2. Refer section 10. threatening to go on strike.4 3.2 2. Refer section 10. 10. People tend to resist many types of changes because new habits or sacrifices are required. Economic factors. implicit. Problem of overcoming resistance to change can be handled at two levels.6.

· J. www. Organization Development. · Stephen P.htm www. · Harigopal of Organization http://www. 12th edition. Prentice-Hall of India Private Limited. E References            http://fds.kurims. Thomson South Western. Anmol Publications Pvt. · Stephens P. Jr. New Delhi. eighth edition. Stoner and R.pdf http://www. Management. Chhabra.oup.htm#anchor73776 Copyright © 2009 SMU Powered by Sikkim Manipal University . New Organizational Behaviour.humtech. F.pdf http://webuser.managementtoday. Prentice-Hall India. French and Cecil Ltd. P. New Delhi.1lowry. Thomson · Daft Richard L. New Delhi. · James Organization Development & Change. New Prentice-Hall of India. http://www.Response Books.html http://muse. Prasad. . Dhanpat Rai & Co. Educatiional Publishers. Principles & Practice of Management. Regal Publications New Delhi.. Jain. N. N.· Wendell L. · L. Organization Theory and Design.Singh. Sultan Chand & Sons. · Cummings & Worley.umich.pdf http://www.umich. Principles and Practices.jhu. Modern Organization Development and Prentice-Hall of India. New Delhi.oup. Edward Freeman. · Laxmi Devi.managementhelp. Organizational Development. · T.lib.umd. Robbbins. Organizational Behaviour.

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