MU0002-Unit-01-Introduction to Management

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

9 Terminal Questions 1. 3. teamwork . 1. Management 2. Bring out the difference between Administration and Management. _________. co-ordinating. Managers perform different roles to discharge their responsibilities. public organisations sector and non-business private sector. organisations. motivating and controlling the efforts of others towards a specific objective. __________is principally the task of planning. middle and lower. 2. There are three levels of management-top. It is the management which transforms physical resources of an organization into productive resources. Human skills are important at all managerial levels. 1. Self Assessment Questions in the 1. manpower 3. Discuss the importance of management. ___________. 2. Define management. counseling and effective leadership. Management is largely found at the middle and lower levels and administration is found at the higher levels. Management creates ________ and motivates employees to work harder and better by providing necessary guidance. Five M’s of management (________. Explain its characteristics. 1.8 Summary Management is concerned with getting things done through other people.10 Answers to SAQs and TQs SAQs: 1.government offices. machinery and methods or ways of doing things) depends to a great extent on the quality of management. Still management is not completely a profession. 3. Lower level managers require and use a greater degree of technical skill and managers at higher levels use a greater degree of conceptual skill. Money. materials.

2.1.9 Terminal Questions 2.8 Summary 2. Refer section 1. Refer section 1.Answers to TQs: 1.10 Answers to SAQs and TQs .3 Planning 2.5 Staffing 2. Refer section 1.3 2.5 3.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .6 Directing 2.2 Process of Management 2. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.1 Introduction Objectives 2.4 Organizing 2.7 Motivating Self Assessment Questions 2.

leadership is about setting the desirable goals.2 Management Process Peter Drucker said: “Management is doing things right. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent. 2. Directing. One can also think of management functionally. Motivating. · Explain different functions of management Process. Management is about accomplishing a goal efficiently. the two are not quite the same. in recent time. · Explain Planning. Commanding 4.1 Introduction Follett (1933) defined management as "the art of getting things done through people”. Organizing. as the action of measuring a quantity on a regular basis and of adjusting some initial plan. Through leadership and management often overlap. You might well ask what the need for a policy is when objectives are already defined. Organizing 3. leadership is doing the right things“. Policy Formulation We have noted earlier that all organizations have well-defined goals and objectives. you will be able to: · Define Management process. Controlling However. Management functions are as follows (Fayol. Coordinating 5. Staffing. Even .2. Objectives: After this studying this unit. There is a degree of overlap between the two. It is difficult to say where objectives end and policies begin. Planning 2. 1949): 1. management functions have been regrouped into four categories.

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

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

In turn. return on investment. What is the strength of the economy? 4. In which areas does the competition meet customer needs more effectively? 2. operational plans are based on the organization’s tactical plans. as well as gap analysis. Are there new competitors? 3.3. What are the emerging technologies? 6. Benchmarking systematically compares performance measures such as efficiency. The SWOT analysis is used as a baseline for future improvement. the best strategy is one that fits the organization’s strengths to opportunities in the environment. Set goals and objectives Strategic goals and objectives are developed to fill the gap between current capability and the mission. tactical. Strategic. etc. organizations have longterm objectives for factors such as. Is there a possibility of growth of existing market?) Identifying threats involves the following: 1. What are the new regulations? 6. It also helps in setting minimum acceptable standards or common-sense minimums. Is there a shortage of resources? 4. earnings per share. or outcomes of an organization against similar measures from other internal or external organizations. These are specific plans that are needed for each task or supportive activity comprising the whole. Develop related strategies (tactical and operational) Tactical plans are based on the organization’s strategic plan. Are our rivals weak? 5. effectiveness. Generally. Objectives are also called performance goals. They are aligned with the mission and form the basis for the action plans of an organization. What substitute products exist? In general terms. Are market tastes changing? 5. Comparing the organization to external benchmarks (the best practices) is used to assess current capabilities. and operational planning .

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

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

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

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

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

Herzberg (1959) constructed a two-dimensional paradigm of factors affecting people’s attitudes about work. such as. 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. structuring. It involves many sub-functions such as manpower planning. but their presence does not motivate or create satisfaction. responsibility. advancement. It is the process of determining what tasks are to be done. Hygiene factors on the other hand. emphasize factors intrinsically rewarding that are associated with the work itself or to outcomes directly derived from it. Removing dissatisfying characteristics from a job does not necessarily make the job satisfying. motivators describe a person’s relationship with what she or he does. _______refers to the managerial function of determining and improving the manpower requirements of an enterprise. people will not be dissatisfied. and developing plans to integrate and coordinate activities. Motivators are intrinsic factors. recruitment. To motivate people. working conditions. When hygiene factors are adequate. and achievement. establishing strategies for achieving these goals. have to do with a person’s relationship to the context or environment in which she or he performs the job. recognition. Extrinsic factors. performance appraisal etc. supervision. 2.8 Summary Management is the art of getting things done through people. how the tasks are to be grouped. Every organization needs to plan for change in order to reach its set goal. These two factors are motivators and hygiene factors and this theory is also called motivation-hygiene theory. Staffing refers to the managerial function of determining and improving the manpower requirements of an enterprise. Planning involves the process of defining goals. neither will they be satisfied. The _____analysis begins with a scan of the external environment. ____defined management as the art of getting things done through people. such as. Presence of these factors ensure job satisfaction. company policy. The absence of hygiene factors can create job dissatisfaction. and where decisions are to be made. Job satisfaction factors are separate and distinct from job dissatisfaction factors. . 2. interpersonal relations. Self Assessment Questions 1. who reports to whom. who is to do. 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. Organization involves designing. and coordinating the work components to achieve organizational goal. many related to the tasks being performed. 3. In summary. and salary are hygiene factors.

Reference 2. Write a short not on directing. Reference 2.1 Introduction Objectives . Reference 2. 2.9 Terminal Questions 1.2. Explain Staffing in detail 3. Follett 2.6 Copyright © 2009 SMU Powered by Sikkim Manipal University . SWOT 3. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3.3 2.10 Answers to SAQs and TQs SAQs: 1.5 3. What is planning? 2. Staffing Answers to TQs: 1.

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

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

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

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

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

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

temporary. 9. and co-learners with the client system. dynamic and adaptive system. This ‘planned’ emphasis separates OD efforts from other kinds of more haphazard changes that are frequently undertaken by organizations. 10. so the methods of attaining these goals should also change. 2. Long-range Change: OD efforts are not meant for solving short-term. OD focuses on the elevation of an organization to a higher level of functioning by improving the performance and satisfaction. rather. Planned Change: OD is a strategy of planned change for organizational improvement. 5. they are ongoing. 7. interactive. Rather. 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. 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. 8. The concept of comprehensive change is based on the systems concept-open. Thus.3. 3.3 Characteristics of OD 1. Attempting to create “win-win” solutions is standard practice in OD programs. or isolated problems. and cyclic processes. OD practitioners are facilitators. collaborators. 6. It recognizes that organizational goals change. OD views organization improvement as an ongoing process in the context of a constantly changing environment. 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. 4. OD takes a developmental view that seeks the betterment of both individuals and the organization. OD focuses on total system change and views organizations as complex social systems. Participation and involvement in problem-solving and decision-making by all levels of the organization are hallmarks of OD. . so that change is easily observed. 3. Teams of all kinds are particularly important for accomplishing tasks and are targets for OD activities. OD efforts are not one-shot actions. rather than focusing attention on individuals. OD focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. Comprehensive Change: OD efforts focus on comprehensive change in the organization. OD relies on an action research model with extensive participation by client system members. 4.

the collaborative relationships between the scientists. Although Organization Development Programmes vary. (b) The interventions are primarily directed towards problems and issues identified by the client group. Two important elements of Organization Development are. second. and revitalization. He shares a social philosophy about human values. participation. Organization Development is inextricably linked with action. the importance and centrality of goals and objectives and the different role requirements of the consultant change agent vis-à-vis the clients. Action research is the basis for such intervention. Participation of Change Agent: Most OD experts emphasize the need for an outside. growth. 6.5. third party change agent.4 Categories of OD Programmes In general. and mutual influence. He designs intervention strategies based on these data. collects relevant data. 3. There is a close working relationship between the change agent and the target organizational members to be changed. rather. and integrate individual and organizational goals. further more. and (c) Problems of organizational effectiveness. identity. 7. evaluates these data. first. OD attempts to provide opportunities to be ‘human’ and to increase awareness. This is done to arrive at certain desirable outcomes that may be in the form of increased effectiveness. A change agent in OD process does not just introspect the people and introduce changes. problem-solving. 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’. joint goals and means. practitioners and the client laymen. the element which links Organization Development with the scientific method of inquiry and. The change agent is a humanist seeking to get a humanistic philosophy in the organization. and then. yet following features are common to most of the programmes: (a) The client is a total system or major subunit of total system. The relationship involves mutual trust. and adaptability for the organization as a whole. Emphasis on Intervention and Action Research: OD approach results in an active intervention in the ongoing activities of the organization. Key areas are the normative type of model. . takes actions for intervention. all types of experience requiring Organization Development efforts may be grouped into three categories: (a) Problems of destiny. At the individual level. he conducts surveys. (b) Problems of human satisfaction and development. or catalyst. it is a programme with a purpose that is to guide present and future action. They discourage ‘do it yourself’ approach.

(e) To make competition more relevant to work goals and to maximize collaborative efforts. with the authority of knowledge and competence. (b) To supplement the authority associated with role or status. and (d) The interventions are based on behavioural science theory and technology. 3.6 OD and Management Development .(c) The interventions are directed towards problem-solving and improved functioning for the client system. (d) To build trust among persons and groups throughout an organization. We need to examine carefully the techniques of Organization Development. its underlying theory and assumptions and some of the pitfall and challenges in attempting to improve organizations through behavioural science. (i) To increase self-control and self-direction for people within the organization. (f) To develop a reward system which recognizes both the achievement of the organization’s goals (profit or service) and development of people. (c) To locate decision making and problem-solving responsibilities as close to sources of information as possible. (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. problem solving climate throughout an organization. should begin with a clear-cut statement of specific objectives and criteria for determining if these objectives have been met from the stand point of the employee/employees simply as team member or for the total group. (g) To increase the sense of ‘ownership’ or organization’s objectives throughout the work force. like other normative re-educative programmes. 3.5 Goals of Organization Development Following are the generally accepted goals of OD: (a) To create an open. (j) To improve effectiveness of the organization. This Organization Development progrmmes.

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

7. To increase the level of self and group responsibility in planning and its implementation. 4. however. it is quite suitable for improving organizational performance on long-term basis. Thus. 6. as a long-term strategy for organizational change. confrontation techniques.8 Problems in Organization Development Organization development. Specialist No special requirement. Long-range strategy for organizational innovation and renewal. OD became quite successful with many professional consultants offering high services and programmes to various organizations.7 Role of Organization Development Organization development. To increase the level of enthusiasms and personal satisfaction at all levels of the organization. To create an environment in which authority of assigned role is augmented by authority based on knowledge and skills. 3. Research studies have also failed to conclude . OD can be utilized for the following results in the organization: 1.Approach Time Educative and training Short-range. To treat each human being as a complex person with a complex set of needs important in his work and his life. By 70s. The basic problem in a change effort which is not comprehensive is that it does not work properly unless there is a proper change in the internal environment of the organization in which people work. and laterally. 5. 3. In early 60s. To place emphasis on humanistic values and goals consistent with these vales. Trained specialists required. etc. 3. has invited sharp criticism as a strategy to increase organizational viability and effectiveness because many OD programmes have failed. however. Problem-solving approach. 2. To increase the level of trust and mutual emotional support among all organization members. Much of the enthusiasm created at the beginning of OD programmes vanished over the period of time. Since OD attempts to bring comprehensive change in the organization. plays key role in organizational improvement. substantial disenchantment with OD became evident because of many controversial OD techniques like sensitivity training. To increase the openness of communications in all directions-vertically. horizontally.

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

Organization development should be led and supported by –––––––. _____________is a short-term strategy. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. Tom Peters 3. Management development aims at developing the managers individually. 4. There is no ‘quick fix’ to organizations’ problems.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. Distinguish between ‘organizational development’ and ‘management development’. Explain its salient features. Top management 2. 4. collaborative. ––––––– is associated with “Liberation Management”. 2.Self Assessment Questions 1. What are the problems involved in the implementation of OD? 3. The participative. problem-focused ‘nature of OD’ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. 2. OD is the ultimate remedy for organizational improvements and developments. 3. ––––––––– is a process which includes leadership behaviours and human resource practices. 3.10 Terminal Questions 1. Explain the various characteristics of OD. 3. 3. But OD aims at changing the entire organizational climate where the managers work. State the various roles of OD. Define OD. OD focuses on culture and processes. Empowerment . 5.11 Answers to SAQs and TQs SAQs: 1. Who is associated with the “Learning Organizations”? 5.

4 Grid Training 4.7 5. MU0002-Unit-04. Peter Senge 5.4. Management development Answers to TQs: 1.6 4. Refer section 3.Organization Development – Interventions Unit-04.Organization Development – Interventions Structure: 4.3 3.5 Leadership Development 4.3 Process Consultation 4. Refer section 3.1 Introduction Objectives 4.6 Team-building . Refer section 3. Refer section 3.2 Survey Feedback 4. Refer section 3.2 2.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .

interpersonal level. they make things happen.12 Answers to SAQs and TQs 4.7 Inter Group Development 4.11 Terminal Questions 4. education and training. Further. inter-group level. work group. group level. 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.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.8 Change Agents 4. Thus. process consultation. techno-structural activities. French and Bell have defined OD intervention as: “Sets of structured activities in which selected organizational units (target groups or individuals) engage with a task or a sequence of tasks where the task goals are related directly or indirectly to organizational improvement. and organizational level. However. People’s behaviour may be relevant to understand at individual level.9 Role of Change Agents Self Assessment Questions 4. team-building. the classification of OD interventions shows variation. management grid. various consultants and practitioners have different opinions about the activities which can be included in interventions. 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. For example. and organizational culture. French and Bell have suggested twelve families of OD interventions: diagnostic. mediation and negotiation activities. inter-group activities. survey feedback.10 Summary 4. Nevertheless. Therefore. Interventions constitute the action thrust of organization development.4. 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. interventions may be required to change people at all these levels. the classification appears to be more relevant because it may specify the .” There are various OD interventions and they are classified in different ways.

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

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

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

and total organizational levels. One basic reason for this phenomenon may be the consultant’s inability to steer the organization out of troubles. To evaluate the styles of leadership and techniques of participation to produce desirable results. In the review of various P. coaching. . The grid organization development consists of six phases. inter-group. To understand the importance and rationale of systematic change. Its specific objectives are as follows: 1. P. significant correlation between the outcomes has not been found. and the organization as a whole. The whole orientation is to develop managerial style through the application of behavioural science knowledge. To study the organization as an interactive system and apply techniques of analysis in diagnosing its problems. the consultant disengages from the client organization by mutual agreement but leaves the door open for future involvement. 2.5. focuses on skills. both these problems may be overcome by engaging a suitable consultant and developing willingness among the members for change. enabling individuals and groups to assess their own strengths and weaknesses.C is completed. 4. P.4 Grid Training Grid training is basically based on grid organization development developed by Blake and Mouton.C programmes. and processes necessary for effectiveness at the individual. It is a comprehensive and systematic OD programme which aims at individuals. 3. he assists the organizational members to incorporate those changes. knowledge. Reduce Involvement and Terminate: When the work of P. Process of Grid Training The basic content of grid organization development is managerial grid as discussed. However. 6. Intervene: At this stage. It utilizes a considerable number of instruments.C is also not free from criticisms. group. like other OD intervention techniques. and/or structural change. feedback. From this point of view. the consultant intervenes in the organizational processes by using different interventions like agenda-setting. However. 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. groups.C is very effective intervention for organizational improvement. Though he is involved only in suggesting the various changes in the processes. Evaluation of Process Consultation: Process consultation is quite in-depth activity of OD in which the consultant plays a major role.

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

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

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

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

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

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

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

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

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

Blake and Mouton. 4. Refer section 4. and Beliefs in Organization Development Structure: 5. Refer section 4. What is team-building? What are the stages of life cycle of a team? 4. Assumptions. Social loafing Answers to TQs: 1.3. 3.1 Introduction Objectives 5.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .6 4. Beliefs in Organization Development Unit-05-Values. Assumptions.4 2. MU0002-Unit-05-Values.2 Definitions and . Explain Change agents and discuss the role of change agents in detail. Refer section 4.2 3.12 Answers to SAQs and TQs SAQs: 1. Refer section 4. Data collection 2.

beliefs and assumptions.7 Terminal Questions 5. it is a cognitive fact for the person. you will be able to: · Explain the meaning of values. 5.6 Summary Self Assessment Questions 5.5. assumptions. beliefs and assumptions.2 Implications for Dealing with Groups 5.5.3 Implications for Designing and Running Organizations 5. and beliefs constitutes an integral part of organization development. Most of these beliefs were formulated early in the development of the field. and they continue to evolve as the field itself evolves. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers.5.2 Definitions A belief is a proposition about how the world works that the individual accepts as true. Objectives: After studying this unit. · State the implications of OD values and assumptions. · List the chronology of events of values. · Give the statement of OD values and assumptions.1 Implications for Dealing with Individuals 5.3 Chronology of Events in Management and Organization Thought 5.8 Answers to SAQs and TQs 5.5.5 Implications of OD Values and Assumptions 5.1 Introduction A set of values. .4 Early Statements of OD Values and Assumptions 5. shaping the goals and methods of the field and distinguishing OD from other improvement strategies.

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

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

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

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

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

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

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

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

Creating co-operative rather than competitive organizational dynamics is a primary task of the organization’s leaders. Self Assessment Questions . The belief that people can grow and develop in terms of personal and organizational competency tends to produce that result. These OD values were considered revolutionary when they emerged in the 1950s. they are the source of productivity and profits and should be treated with care. By implication. 5.6 Summary The field of OD rests on a foundation of values and assumptions about people and organizations. an optimistic. and empowering. beliefs and assumptions are cognitive facts. Still. Values are also beliefs. developmental. assumptions and beliefs help to define what OD is and guide its implementation. and organizational changes taking place assure that tomorrow will bring new definitions of what is "true" and new beliefs about what is "good. it is possible to create organizations that on the one hand are humane. Such an orientation creates a self-fulfilling prophecy. A belief is a proposition about how the world works that the individual accepts as true. quality of output. Evidence for this assumption comes from numerous examples where “putting people first” paid off handsomely in profits and performance. and on the other hand are high performing in terms of productivity. values are never static. Concluding Comment: The field of organization development rests on a foundation of values and assumptions about people and organizations. The belief that people are important tends to result in their being important. and profitability. Values. optimistic and democratic. Finally.over the long run and highlight the need for a “win win” attitude. societal. These beliefs help to define what OD is and guide its implementation. they change over time. but are widely accepted today. The rapid technological. and ways to optimize human potential. This notion suggests it is good to have a developmental outlook and seek opportunities in which people can experience personal and professional growth. OD values tend to be humanistic." as behavioural scientists and managers continue to develop better understanding of authority structures. developmental set of assumptions about people is likely to reap rewards beneficial to both the organization and its members. The implication is that people are an organization’s most important resource. A key assumption in organization development is that the needs and aspirations of human beings are the reasons for organized effort in society. Values. organizing structures. 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.

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

4 Open Systems Thinking 6.3 Copyright © 2009 SMU Powered by Sikkim Manipal University .3 5.3 Systems Theory 6.1 Kurt Lewin and Friends 6.2.4 Porras and Robertson Model of Organizational Change 6.4 Participation and Empowerment .1 The Nature of Systems 6.2.3. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.2.3.3. Refer section 5.4. Refer section 5.1 Introduction Objectives 6.3 The Burke-Litwin Model of Organizational Change 6.2 Models and Theories of Planned Change 6.2 Congruence among System Elements 6.2 Beyond the Quick Fix 6.3 Socio-technical Theory and Open Systems Planning 6.2.3.

· Explain normative-re-educative strategy of changing The knowledge base of OD is extensive and is constantly growing.11 Terminal Questions 6.9 Action Research Self Assessment Questions 6.6 Parallel Learning Structures 6. Here we describe what we believe are the most important underpinnings for the field. · Explain the terms ‘participation’ and ‘empowerment’. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs. · Realize the importance of teams and teamwork.7 A Normative – Re-educative Strategy of Changing 6. art and science which form the knowledge base upon which OD is constructed.12 Answers to SAQs and TQs 6.5 Teams and Teamwork 6. Objectives: After studying this unit.6. · Explain systems theory. We will examine the following concepts: . · Describe the parallel learning structures. you will be able to: · Explain various models and theories of planned change.10 Summary 6.8 Applied Behavioural Science 6. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning. In this discussion.1 Introduction This unit describes the foundations of organization development theory and practice.

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

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

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

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

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

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

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

and these behaviour changes occur when elements of the work setting have been modified by OD interventions. physical setting. Keep this framework in mind as you read the units on OD interventions because all interventions target one or more factors shown in figures.3: The Burke Litwin Model of Organizational Performance and Change 6. Interventions that focus on culture. which determine organizational performance and individual development. and rewards will affect organizing arrangements. 6. and interaction processes will affect social factors. The basic premise is that OD interventions alter features of the work setting causing changes in individuals’ behaviours. which influence on-the job behaviours. Fig. required.2.4 Porras and Robertson Model of Organizational Change Jerry Porras and his associates developed a model of how organization development works. management style. according to Porras and Robertson. Interventions that focus on job design and work flow design will affect technology. social factors. it is described in a discussion by Porras and Peter Robertson. For example. 6. Following figure shows the work setting in the larger organizational framework. Organizational change occurs only when individuals change their behaviour. OD interventions that focus on goals.Fig. strategies. which in turn lead to individual and organizational improvements.4: Organizational Work-Setting Factors This model is extremely useful for OD practitioners and organizational leaders. This model shows how OD interventions can be linked to factors in the work setting. The premise modeled here is that work setting factors influence organizational members’ cognitions (they learn what is expected. It is how OD works. . rewarded). The work setting plays a central role in this model and consists of four factors: organizing arrangements. and technology.

The words ‘arrangement’ and ‘interrelated’ describe interdependent elements forming an entity. . or subsystems. system denotes interdependency. one begins by identifying the individual parts and then seeks to understand the nature of their collective interaction. components. Fagen defines system as "a set of objects together with relationships between the objects and between their attributes.Fig. describes the characteristics of systems.system. Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950.3 Systems Theory A second foundation of organization development is systems theory." Von Bertalanffy refers to a system as a set of "elements standing in interaction.5: A Change-based Organizational Framework 6. and Katz and Kahn were the first to apply open systems theory to organizations in 1966. unitary whole composed of two or more interdependent parts. interconnectedness. 6. Thus. when taking a systems approach. that is the system." Hanna says: "A system is an arrangement of interrelated parts." Kast and Rosenzweig define system as "an organized. Systems theory is one of the most powerful conceptual tools available for understanding the dynamics of organizations and organizational change. and interrelatedness among elements in a set that constitutes an identifiable whole or gestalt. This section explains systems theory. which views organizations as open systems in active exchange with their environment. and delineated by identifiable boundaries from its environmental supra. and shows how systems theory enhances the practice of OD." To summarize.

Fig. and if the environment does not want these outputs. These purposes must align with purposes or needs in the environment. in that they permit exchange of information. Open systems have purposes and goals. They do something to the inputs via throughput. and they export products to the environment in the form of outputs. Every system is delineated by a boundary. Organizations achieve negative entropy when they are able to exchange their outputs for enough inputs to keep the system from running down. A good rule of thumb for drawing the boundary is that more energy exchange occurs within the boundary than across the boundary.6: A System in Interaction with its Environment The law of entropy states that all systems “run down” and disintegrate unless they reverse the entropic process by importing more energy than they use. people. For example. the organization will cease to exist. or transformation processes that change the inputs. Boundaries of open systems are permeable. dynamics. and characteristics of open systems are well-known. conversion. resources. Systems take inputs from the environment in the form of energy.3. . Therefore. money. 6. What is inside the boundary is the system. Organizations are open systems. and energy between system and environment. Here. information. we examine the characteristics of open systems drawing OD expositions by Katz and Kahn and Hanna.6.1 The Nature of Systems The nature. studying open systems leads to a good understanding of organizations. All open systems are input-throughput-output mechanisms. raw material and so on. Each of these three system processes must work well if the system is to be effective and survive. the organization’s purposes will be reflected in its outputs. the reasons for their existence. and what is outside the boundary is the environment.

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

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

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

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

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

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

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

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

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

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

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

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

3 4. System 5. Unfreezing 2.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . 6. Refer section 6.2. What are the features of systems theory of organizational development? 5.12 Answers to SAQs and TQs SAQs: 1.3 5. Ralph Kilmann 3.4.1 2. Transactional change 4. Refer section 6. “Work teams are building blocks of organizational development.Refer section 6. Refer section 6. MU0002-Unit-07-Organization Climate Unit-07-Organization Culture and Climate Structure: 7. Synergy Answers to TQs: 1.2 3. Refer section 6.” Comment on this statement.1 Introduction Objectives 7.2 Characteristics of Organization Culture Culture and .2.2.

1986). organizational culture is the personality of the organization.7 Terminal Questions 7.7.3 Types of Organization Culture. Objectives: After studying this unit. You can tell the culture of an organization by looking at the arrangement of furniture. but everyone knows it when they sense it. 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.4 Organization Culture and Effectiveness 7. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. etc. 7. Culture is one of those terms that’s difficult to express distinctly. For example. despite the best-laid plans. what members wear. organizational change must include not only changing structures and processes. Martin and Meyerson. Culture is comprised of the assumptions. you will be able to: · Understand Organization Culture. · Describe different types of Organization Culture · Explain organization culture and effectiveness. and feeling in relation to these problems (Schein. . values. for-profit corporation is quite different than that of a hospital which is quite different than that of a university. Comprehensively organization culture is the pattern of basic assumptions that is invented. Practitioners are coming to realize that.5 Developing and changing Organization Culture Self Assessment Questions 7. thinking. and validated enough to be taught to new members as the correct ways of perceiving. the culture of a large. what they brag about.6 Summary 7. The concept of culture is particularly important when attempting to manage organization-wide change.1 Introduction Basically. – similar to what you can use to get a feeling about someone’s personality. but also changing the corporate culture as well.8 Answers to SAQs and TQs 7. discovered.

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

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

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

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

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

Make changes from the top down. The personal feelings. 9. Set realistic goals that impact on the bottom line. Recruit outside personnel with industry experience. Emotions. _____are the visible manifestations of culture as seen in the physical and social environment of the organization. ________cultures are outward looking. Simple guidelines such as the following can be helpful. 3. This attempt to change culture can take many different forms. so that a consistent message is delivered from all management team members. if possible. attitudes. 6. take these losses early. 2. 8. and patterns of daily behavior. 7. 5. 7. commitment. 1. Self Assessment Questions 1. Include employees in the culture change process. Move quickly and decisively to build momentum and to defuse resistance to the new culture. 2.3. These emotions will be a major input into the clash or compatibility of the two cultures. habits. especially when making changes in rules and processes. 4. the “culture contract” that individuals have bought into to guide their day-to-day thoughts. Guidelines for change Despite the significant barriers and resistance to change. ___________are those factors that influence the course of development within an organization and its results or accomplishment. Expect to have some problems and find people who would rather move than change with the culture and. 3. Assess the current culture.6 Summary . so that they are able to interact well with the organizational personnel. organizational cultures can be managed and changed over time. Stay the course by being persistent. are particularly driven by results and are often very competitive. Take out all trappings that remind the personnel of the previous culture.

3. Organizations to be successful must be efficient and effective. Refer section 7. 2. Artifacts 2. Explain the characteristics of organization culture. Finally. Factors in organizational effectiveness include casual variables. 7. Causal variables Answers to TQs: 1.Organizational effectiveness is the degree to which organization is successful in accomplishing its goals.2 2.8 Answers to SAQs and TQs SAQs: 1.goal approach. 7.3 3. system-resource approach. and strategic constituencies approach. Refer section 7. Effectiveness of an organization can be increased through economic man approach and administrative man approach.7 Terminal Questions 1. effectiveness through adaptive-coping cycle has been discussed. Refer section 7. behavioural approach.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . Briefly explain different types of organizational culture. Market 3. Discuss the development and change of organizational development. . intervening variables and end-result variables and there exists interrelationship among these variables. Organizational effectiveness can be measured through various approaches.

Power.4 Theories about the Sources of Social Power 8.MU0002-Unit-08Power. must be understood if one is to be effective in organizations.3 Two Faces of Power 8.6 The Role of Power and Politics in the Practice of OD 8.10 Terminal Questions 8. As Warner Burke observes: "Organization development signifies change.11 Answers to SAQs and TQs 8.5 Organizational Politics Defined and Explored 8. Organization Development Unit-08. and for change to occur in an organization. we examine power and politics in relation to organization development. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics. indisputable facts of organizational life. Politics and Organization Development Structure: 8.8 Acquiring and using Power Skills Self Assessment Questions 8.” Organization development has been criticized for not taking into account power in organizations.1 Introduction Politics and Power and politics.2 Power Defined and Explored 8.7 Operating in a Political Environment 8. In this unit.1 Introduction Objectives 8. power must be exercised. That criticism was essentially correct for many years although it is less valid .9 Summary 8.

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

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

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

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

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

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

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

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

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

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

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

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

Refer section 8. Refer section 8.6 5. 8. McClelland 3. Identify the bases of individual power and the respective strategies for their success.2. Explain the role of power and politics in the practice of OD. 4. Describe briefly various theories of power.11 Answers to SAQs and TQs SAQs: 1. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9. Refer section 8.2 2. 3.4 3.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . 5. Refer section 8. Referent power 4.5 4. Power 2.1 Introduction . Personality Answers to TQs: 1. Refer section 8. Define organization politics. Harold Lasswell 5.

6 Quality of Work Life Projects 9.7 Parallel Learning Structures 9.4 Management By Objectives 9. One important intervention technique is Technostructural interventions because these are related to technical and structural issues such as how to divide labour and how to coordinate department which is related to Restructuring organization.5 Quality Circles 9. An organization development intervention is a sequence of activities.12 Answers to SAQs and TQs 9. organizational problems may repeat.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future.8 Total Quality Management 9.3 Socio Technical Systems 9. These interventions vary from standardized program that have been developed and sometimes tailored program. actions. These programs are derived from careful diagnosis. In this dynamic and fluid environment.9 Reengineering Self Assessment Questions 9.11 Terminal Questions 9. These methods are receiving increasing attention in Organization Development.Objectives 9. Objectives: .10 Summary 9. Nothing is permanent except change because change is permanently changing. events intended to help an organization improve its performance and effectiveness.2 Meaning and Definitions 9. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design.

and more . In addition. Downsizing associated with restructuring. Managers and administrators are notoriously pragmatic. you will be able to: · Explain the Socio technical change. Advantages of Structural Interventions There are a number of reasons why a consultant should consider employing a structural intervention. · Discuss the parallel Learning Structures. Greater Predictability. and OD practice enables the change agent to estimate the probable consequences of the change. their attractiveness is also increased by the following advantages: 1. organization theory. Cost is Low. 2.2 Meaning and Definitions Structural Intervention is related to the changes that relate elements of organization to one another. Organization Acceptance of Change. The cost of structural change is generally “front-end” loaded. change can be introduced relatively rapidly by top management. Once diagnosed and an appropriate correction developed.After studying this unit. · Discuss the Management By Objectives · Explain the Quality Circles. 4. structural Interventions compare quite favorably with all other alternatives. Structural changes are consistent with their operating styles and are generally understood by practitioners. 3. Rapidity of change. · Explain Reengineering. Structure changes are normally “institutionalized” and less subject to this problem. Succession Doesn’t Destroy Change Effort. · Explain Total Quality Management. Changes can involve decentralization and centralization. One problem with behavioral/ group interventions is the tendency for new managers or employees to discount or fail to continue the change program. meaning the major costs are associated with analysis and design of change. 9. 5. includes removing or adding layers to hierarchy. This normally is a reasonable. Basic reinforcement theories. Weeks and months of group effort are saved. From a benefit cost analysis.

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

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

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.

actions. 9. There are a number of reasons why a consultant should consider employing a structural intervention. It seeks to make such processes more efficient by combining. · A major emphasis on continuous learning. actions. events intended to help an organization improve its performance and effectiveness. 3. · Top management support on an ongoing basis. consciously directed towards the effective and efficient achievement of organizational objectives. such as cost. 2.10 Summary An organization development intervention is a sequence of activities. structural Interventions compare quite favorably with all other alternatives. The term MBO was coined by _________ in 1964. · An emphasis on teams and teamwork. or restructuring activities without regard to present hierarchical or control procedures. __________ represents a participative approach to employee involvement in problem solving and productivity improvement. Reengineering focuses on visualizing and streamlining any or all business processes in the organization. assumes neither an upward flow of involvement nor that consensus decision making.9 Reengineering It is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical. An organization development __________ is a sequence of activities. Quality . Self Assessment Questions 1. quality. · Participative management. events intended to help an organization improve its performance and effectiveness. Sociotechnical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. · Continuous search for sources of defects with a goal of eliminating them entirely. contemporary measures of performance. eliminating. service. 9. and speed. MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. Reengineering is a top-down process.· Competitive benchmarking. From a benefit cost analysis.

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. Refer section 9. TQM pushes decision making power downwards in the organization. Discuss Socio Technical Systems? 2. Intervention 2. 9. It is also called continuous quality improvement.2 3. . Drucker 3. 9.3 2.12 Answers to SAQs and TQS SAQs: 1.circle represents a participative approach to employee involvement in problem solving and productivity improvement. Quality circle Answers to TQs: 1.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Explain Management By Objectives? 4. Refer section 9.11 Terminal Questions 1. Write a short note on Total Quality Management. provides relevant information to all employees. ties reward to performance and increase workers knowledge and skills through extensive training. Refer section 9.5 4.

and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other. 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.4 Causes for Resistance to Change.1 Introduction Change in Organizations are increasingly realizing the fact that change is the price of the survival.3 Resistance to Change 10. Objectives: .2 Nature of Change 10. Nothing is permanent except change because change is permanently changing.6 Methods of Reducing Resistance to Change.9 Answers to SAQs and TQs 10. Hence. organizational problems may repeat.MU0002-Unit-10-Managing Organization Development Unit-10-Managing Change in Organization Development Structure: 10.8 Terminal Questions 10.1 Introduction Objectives 10. Self Assessment Questions 10. 10. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented).5 Impact of Change on the Future Manager 10.7 Summary 10. In this dynamic and fluid environment. cope with the ongoing changes successfully in the first instance.

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

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

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

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

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

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

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

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

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

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

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

or deferred. immediate. group resistance and vested interests.8 Terminal Questions 1. at the level of individual and at the level of group. Organizational change 2. engaging in a work showdown. Organizational change is the alteration of work environment in an organization. a change is proposed and employees quickly respond by voicing complaints. Economic factors. Refer section 10. For instance. It is easiest for management to deal with resistance when it is overt and immediate. Changes may be influenced by external and internal factors. implicit. Refer section 10. Problem of overcoming resistance to change can be handled at two levels. threatening to go on strike. or the like.10. through group dynamics.6. 10. 10.2 2.4 3. Discuss the methods of reducing resistance to change. Explain the nature of change? 2. Psychological factors 3.9 Answers to SAQs and TQS SAQs: 1. that is. Why do organizations resist change? 3.7 Summary Change is inevitable. Refer section 10. both at the formal and informal levels. psychological factors. People tend to resist many types of changes because new habits or sacrifices are required. social factors. Resistance can be overt. It implies a new equilibrium between different components of the organization. Reference: . Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. Participation Answers to TQs: 1.

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