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

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

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

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

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

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

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

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

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

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

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

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

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

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

10 Answers to SAQs and TQs . Refer section 1.8 Summary 2.6 Directing 2.Answers to TQs: 1.9 Terminal Questions 2.5 3.1.5 Staffing 2. Refer section 1.3 2.2 Process of Management 2.7 Copyright © 2009 SMU Powered by Sikkim Manipal University . MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2. Refer section 1.7 Motivating Self Assessment Questions 2.2.4 Organizing 2.3 Planning 2.1 Introduction Objectives 2.

Management is about accomplishing a goal efficiently. Policy Formulation We have noted earlier that all organizations have well-defined goals and objectives. Planning 2. 1949): 1. leadership is about setting the desirable goals. Through leadership and management often overlap. Controlling However. It is difficult to say where objectives end and policies begin. There is a degree of overlap between the two. You might well ask what the need for a policy is when objectives are already defined. 2. One can also think of management functionally. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent. Staffing. Objectives: After this studying this unit. Organizing.2 Management Process Peter Drucker said: “Management is doing things right. management functions have been regrouped into four categories. · Explain different functions of management Process. the two are not quite the same. Commanding 4. Management functions are as follows (Fayol. · Explain Planning. leadership is doing the right things“. Coordinating 5. Even . Organizing 3.1 Introduction Follett (1933) defined management as "the art of getting things done through people”. as the action of measuring a quantity on a regular basis and of adjusting some initial plan. in recent time. Directing. you will be able to: · Define Management process. Motivating.2.

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

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

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

procedures. It is the official organizational structure conceived and built by top management. and coordinated. Feedback is encouraged and incorporated to determine if goals and objectives are feasible. how the tasks are to be grouped. List all tasks to be accomplished 3. Group related jobs together in a logical and efficient manner 5. To develop an environmental monitoring procedure.5 Staffing . and coordinating the work components to achieve organizational goal. Assign work to individuals 6. lines of authority. working toward common goals. It is the extent to which the units of the organization are explicitly defined and its policies. short-term standards for key variables that will tend to validate and support the long-range estimates must be established. who is to do. The formal organization can be seen and represented in chart form. Formalization is an important aspect of structure. It is the process of determining what tasks are to be done. The purpose of the organizing function is to make the best use of the organization’s resources to achieve organizational goals. A key issue in accomplishing the goals identified in the planning process is structuring the work of the organization. 2. 2. who reports to whom. Delegate authority to establish relationships between jobs and groups of jobs. Organizational structure is the formal decision-making framework by which job tasks are divided. Divide tasks into groups one person can accomplish – a job 4. Review plans 2.4 Organizing It involves designing. Monitor the plan A systematic method of monitoring the environment must be adopted to continuously improve the strategic planning process. This review is used for the next planning cycle and review. grouped. and relationships between departments. and where decisions are to be made. and goals are clearly stated. The steps in the organizing process include: 1. Organizations are groups of people. necessary to maintain competitive advantage in the said market. structuring.must be accompanied by controls to ensure proper implantation of the plans. An organization chart displays the organizational structure and shows job titles. with ideas and resources.

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

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

without guiding and overseeing subordinates. The five needs are: · Physiological: Includes hunger. coach and supervise his subordinates. Directing is the process around which all performances revolve. Pervasive function: Directing is a managerial function performed by all mangers at all levels of the organization. Essence of performance: Directing is the process around which all performances revolve. it aims at getting things done by subordinates and. guide. and the Two-Factor theory. Continuous function: Directing is a continuous process. only unsatisfied needs can influence behavior. 5. 4. The needs are arranged in order of importance. “without the issuance of directives. proposed by Maslow (1943). human beings have wants and desires which influence their behaviour. The amount of time and effort an executive spends in directing however. The further they progress up the hierarchy. 3.7 Motivating Motivating In the 1950s three specific theories were formulated and are the best known: Hierarchy of Needs theory. The manager never ceases to direct. 2. shelter. from the basic to the complex. It is an important function of management: Directing is an important management function which provides a connecting link between planning. satisfied needs cannot. Direction imitates at the top level in the organization and follows to bottom through the hierarchy. and other bodily needs . Direction has dual objectives. organizing and staffing on one hand and controlling on the other. Nature of Directing The nature of directing can be discussed under the following: 1. On the one hand. humanness and psychological health a person will show. the number of subordinate he has and the other duties he is expected to perform. Maslow’s Hierarchy of Needs Theory According to this theory.4. teach. the more individuality. Theories X and Y. to provide superiors opportunities for some more important work which their subordinates cannot do. As Theo Haimann puts it. The person advances to the next level of needs only after the lower level need is at least minimally satisfied. on the other. 2. nothing or at the best very little would be accomplished”. It emphasizes that a subordinate is to be directed by his own superior only. thirst. sex. will vary depending upon his level.

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

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

Explain Staffing in detail 3.5 3. SWOT 3. What is planning? 2. Reference 2. Reference 2.1 Introduction Objectives .9 Terminal Questions 1. Reference 2.3 2.2.6 Copyright © 2009 SMU Powered by Sikkim Manipal University .10 Answers to SAQs and TQs SAQs: 1. Staffing Answers to TQs: 1. 2. Follett 2. Write a short not on directing. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3.

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

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

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

and culture. Organizational change is hard. empowerment. serious business. to improve an organization’s visioning. and what the organization and its members can expect from each other. we mean those processes through which organization members develop a viable. We will explain this definition in some detail. coherent. and shared picture of the nature of the products and services the organization offers. processes. we mean involving large numbers of people in building the vision of tomorrow. or became distracted with other duties. structure. Top management must initiate the improvement “journey” and be committed to seeing it through. and self-examining processes that facilitate individual. 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. The phrase led and supported by top management states an imperative: Top management must lead and actively encourage the change effort. lost its commitment. Peter Senge describes learning organizations as “… organizations where people continually expand their capacity to create the results they truly desire. through an ongoing.several years in most cases. it is more accurate to describe “improvement” as a never-ending journey of continuous change. the ways those goods will be produced and delivered to customers. we mean those interacting. it includes pain and setbacks as well as success. where . There is no “quick fix” when it comes to lasting organizational improvement. we mean those leadership behaviours and human resource practices that enable organization members to develop and use their talents as fully as possible toward individual growth and organizational success. By empowerment processes. and problem-solving processes. then another moves it to yet a higher plateau of effectiveness. For empowerment to become fact of life. including action research. we mean that organizational change and development takes time. but as one that includes characteristics we think are important for the present and future of the field. By long-term effort. it must be built into the very fabric of the organization-its strategy. and organizational learning. “Organization development is a long-term effort. One program or initiative moves the organization to a higher plateau. By visioning processes. By learning processes. Most OD programs that fail do so because top management was ambivalent.Now let’s turn to our definition of organization development.” This definition is lengthy. led and supported by top management. In fact. team. By empowerment. where new and expansive patterns of thinking are nurtured. developing the strategy for getting there. listening. learning. We do not propose it as the “right” definition. and making it happen. but it includes a number of components that we consider essential. 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 change becomes permanent when the culture changes and people accept the new ways as the “right” ways. culture is of primary importance. think. expectations. empowerment. therefore (e) is to be taught to new members as the (f) correct way to perceive. empowerment. norms. and common purposes of all members of the organization. or developed by a given group. not just a small group. Our definition also places considerable weight on organizational processes. and problem-solving processes are opportunities for collaboration in organization development. (d) that has worked well enough to be considered valid and. learning. in contrast to having only a select few involved. beliefs. and take actions on problems. Just as visioning.” Problem-solving processes refer to the ways organization members diagnose situations. Collaborative management of the culture means that everyone. commitment. By including culture so prominently in our definition. Processes are relatively easy to change. and continuous learning the organization is bound to succeed. (b) invented. values. Empowerment means involving people in problems and decisions and letting them be responsible for results. The reciprocal influence among culture. interactions. So culture consists of basic assumptions. first. attitudes. make decisions. And second. and feel-that is why culture change is necessary for true organizational improvement. 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. Still. strategy. We believe that when the culture promotes collaboration. and artifacts. . and each influences the others. we affirm our belief that culture is the bedrock of behaviour in organizations. widely shared vision of a desired future creates the best climate for effective problem-solving by all the organization’s members. opportunities. We further believe that having compelling. Edgar Schein clarifies the nature and power of culture in his definition: “Culture can now be defined as (a) a pattern of basic assumptions. Michael Beer’s definition called for “developing new and creative organizational solutions”. and feel in relation to those problems. and we highlight the importance of visioning. think. By ongoing collaborative management of the organization’s culture. and norms of behaviour that are viewed as the correct way to perceive. has a stake in making the organization work. and where people are continually learning how to learn together. solve problems. that one of the most important things to manage in organizations is the culture: the prevailing pattern of values. managing the culture should be a collaborative business. and challenges in the organization’s environment and its internal functioning. we mean. vitality. so is managing the culture. and processes makes each important. activities. so they are the place OD programs often begin – getting people to stop doing things one way and start doing them a different way. sentiments. (c) as it learns to cope with its problems of external adaptation and internal integration. discovered. We believe solutions to problems are enhanced by tapping deeply into the creativity. empowerment. structure. Processes are how things get done. and problem-solving processes. assumptions.collective aspiration is set free.

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

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

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

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

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

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

3. OD is criticized on the following lines: 1. in order to make best use of OD efforts. particularly in bottom-line ones. . It can be seen that many of these criticisms are based on reality and experience. it fails even as a long-term strategy. Only fully competent OD consultant should be pressed for the service and he should develop understanding with internal change agents. 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. and (ii) failure to correctly model appropriate personnel behaviour in the programme. There should be genuine support of OD programme from top management. Some of these efforts are as follows: 1. Therefore. 5. In general. 2. OD programmes are often quite costly. There should be proper use of OD interventions. However. and only large organizations can afford this luxury without any guarantee of positive outcome. Therefore. OD fails to motivate people with low level of achievement needs. OD tries to achieve ideal without taking into account real. it is useless to try OD. Organization must formulate the objectives of OD programme very clearly and specifically. Enough time should be allowed so that the effects of OD programme are realized. 3. 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. People realized its dysfunctional aspects only when many OD efforts failed. 5. These should be based on the specific needs of the organization. 4. If an organization is laden with these people. Thus. For example. some specific efforts are required. it may be emphasized that OD programmes are likely to fail when these are not programmes and hence failure. Hence. Resistance to change is a natural phenomenon and OD puts undue pressure to change. and (iii) failure to increase employee motivation through participation and development of personal growth and self-esteem. 2. 4. OD can not be taken as panacea for curing all organizational problems. There is discrepancy between ideal and real situations.significant contributions of OD in all organizations.

Explain the various characteristics of OD. ––––––––– is a process which includes leadership behaviours and human resource practices. Explain its salient features. ––––––– is associated with “Liberation Management”. Define OD. 2. Top management 2. Who is associated with the “Learning Organizations”? 5. problem-focused ‘nature of OD’ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. Tom Peters 3.Self Assessment Questions 1. There is no ‘quick fix’ to organizations’ problems. 5. 3. collaborative.10 Terminal Questions 1. What are the problems involved in the implementation of OD? 3. OD focuses on culture and processes. 4. The participative. Distinguish between ‘organizational development’ and ‘management development’. 3. OD is the ultimate remedy for organizational improvements and developments. But OD aims at changing the entire organizational climate where the managers work. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. 4. State the various roles of OD. Organization development should be led and supported by –––––––.11 Answers to SAQs and TQs SAQs: 1. Management development aims at developing the managers individually. 2. 3. 3.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. Empowerment . _____________is a short-term strategy.

8 Copyright © 2009 SMU Powered by Sikkim Manipal University .7 5. Refer section 3.6 4.2 Survey Feedback 4. Peter Senge 5. Refer section 3.2 2. Refer section 3.3 3.Organization Development – Interventions Unit-04.1 Introduction Objectives 4. MU0002-Unit-04. Refer section 3.3 Process Consultation 4. Management development Answers to TQs: 1. Refer section 3.6 Team-building .4 Grid Training 4.4.5 Leadership Development 4.Organization Development – Interventions Structure: 4.

4. Thus. interpersonal level. French and Bell have suggested twelve families of OD interventions: diagnostic. process consultation.7 Inter Group Development 4. 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. Nevertheless. interventions may be required to change people at all these levels. People’s behaviour may be relevant to understand at individual level. they make things happen.” There are various OD interventions and they are classified in different ways. the classification appears to be more relevant because it may specify the .12 Answers to SAQs and TQs 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. various consultants and practitioners have different opinions about the activities which can be included in interventions. inter-group level. the classification of OD interventions shows variation. survey feedback. 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. education and training. techno-structural activities. inter-group activities. management grid. and organizational level. mediation and negotiation activities. However. Further.11 Terminal Questions 4. Interventions constitute the action thrust of organization development. group level. work group.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. 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. team-building. Therefore. many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others.9 Role of Change Agents Self Assessment Questions 4.8 Change Agents 4. and organizational culture.10 Summary 4.

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

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

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

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

the focus is on inter-group behaviour and relations. the various efforts from phase 1 to phase 5 are evaluated and critical analysis is made. Inter-group Development: At this phase. and teamwork. Developing Ideal Strategic Corporate Model: At this stage. Managerial grid: It covers various aspects of assessing managerial styles. problem-solving. The individuals try to learn to become managers by practice. In this light. the focus shifts to the total organization and to develop skills necessary for organizational excellence.” In a later work. 6. 5. 4. The members of the organization are trained for achieving this excellence. the various programmes may be redesigned. Each group separately analyses the ideal inter-group relations. They have maintained that “managerial and team effectiveness can be taught to managers with outside assistance. The action is designed to identify the characteristics of the ideal organization. communication skills. it discounts reality.1.5 Leadership Development . and alike. Though research studies on the application of grid training are not many. 4. grid training has some positive contributions for organizational effectiveness. they maintained the same stand. The strategy is then implemented. Furthermore. 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. traditions. The analysis will bring out the shortcomings that may be there. The skills relating to planning. The thrust is on moving groups from conflict to co-operation. Grid training programme is criticized on the basis that it lacks contingency approach and. grid training is a non-rigorous method. Systematic Critique: In this stage. Evaluation of Grid Training Most of the support of grid training has come from its originators-Blake and Mouton. objective-setting. Each group may be given assignment to evolve strategy for making ideal organization with the help of the consultant. Action steps to move towards the ideal are developed and assigned to individuals who may be engaged in building co-operative inter-group relationships. 2. therefore. some of them have not supported the claims made by Blake and Mouton. and problemsolving are also developed. Teamwork Development: The focus in this stage is to develop teamwork by analyzing team culture. 3. Further. in spite of these criticisms. it appears that this type of educational strategy can help to make significant contributions to organizational effectiveness.

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

4. and arguing for appropriate strategies to be adopted for achieving team’s goals. At this stage. and features of effective team so that team-building exercises focus more sharply on developing effective team. different members may experience varying degree of tension and anxiety out of this interaction pattern. 4. Adjourning: Adjourning is the end phase of cycle of a team. members start interaction among themselves in the form of competing for status. Forming: At the first stage of the life cycle. even the most successful teams as they have completed their mission. team members start settling. group norms emerge to guide individual behaviour which form the basis for co-operative feelings and behaviour among members. start to accept others. 5.1: Life Cycle of a Team Though these are not followed rigidly. Storming: After the forming stage which is mostly related to perceiving and assessing each other. they do represent a broad pattern that may be observed and predicted in many settings across team’s time together. Functional roles are performed and exchanged as needed. jockeying for relative control. 3. team members get introduced to each other if they have not interacted earlier.team-work. and begin to turn their attention to the group tasks. They share personal information. These typical stages of life cycle of a team are described below: 1. 2. and tasks are accompanied efficiently. they learn to handle complex problems that come before the team. performing. 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. The . and adjourning as shown below: Fig. These stages are: forming. At this stage. Norming: After storming stage. Performing: When team members interact among themselves on the basis of norms that have emerged in the team. norming. each team has to be adjourned. The team begins to move in a co-operative fashion and a tentative balance among competing forces too is struck. interaction among team members is often cautious especially when they are new to one another. because of individual differences. storming. they often pass through several stages as they learn to work together as a team. Sooner or later. Life Cycle of a Team When a number of individuals begin to work at interdependent jobs.

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

While skills are relevant for job performance.it was found that individuals’ total efforts were much higher than the group efforts. 2. Individuals were asked to pull alone as hard as possible on a rope attached to a strain gauge. group of eight. The phenomenon of social loafing can be minimized by constituting effective team for group performance. . Even if one member lacks behind. understanding of roles helps members to meet the requirement of one another thereby solving the problems which the team faces. 1. In the above paragraph. Thus. team members may tend to contribute positively to the teamwork.2 pounds. skills which are complementary to the team requirement and understanding of one’s own role as well as roles of other members. other factors remaining the same. 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. it appears that there are many factors in an effective team. Let us see how these factors make a team effective. and attitudes. individual members do not contribute to the fullest extent. These factors are skills and role clarity. team members may not show high degree of enthusiasm and they will use only a part of their skills in performing the jobs. two things are required from its members. Supportive Environment: A team loaded with skilled members cannot perform well if the organizational climate is not supportive for that. When the group is not cohesive with high output norms. 2. he may tend to affect others because of chain reaction just like a rotten apple injures its companions. Therefore. The possibility of occurring of social loafing in a team-work increases because of the following reasons: 1.6 pound of pressure while tugging on the rope. Skills and Role Clarity: For an effective team. When the division of work cannot be accomplished properly and individual efforts are hard to determine. goals. group efforts tend to slacken. Dropping of average output in group efforts indicates that some members of the group were not contributing as much as they did individually. super-ordinate goals and team rewards. managers at higher levels particularly at the top level should set organizational climate and culture which enthuse team members to put their best. If the organizational climate is not in tune with high achievement. From this statement. supportive environment. When the same individuals pulled on the rope of groups of three. we have mentioned that team effectiveness depends on the complementarity of team members. the individual average dropped down still lower68. 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. They averaged 138.

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

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

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

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

Social loafing Answers to TQs: 1. Blake and Mouton. Refer section 4. 4.12 Answers to SAQs and TQs SAQs: 1. Assumptions.3.4 2. and Beliefs in Organization Development Structure: 5.1 Introduction Objectives 5. Assumptions.2 Definitions and . Beliefs in Organization Development Unit-05-Values. Refer section 4. Explain Change agents and discuss the role of change agents in detail. Refer section 4. Data collection 2. What is team-building? What are the stages of life cycle of a team? 4.6 4. Refer section 4. MU0002-Unit-05-Values. 3.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 3.

Most of these beliefs were formulated early in the development of the field.8 Answers to SAQs and TQs 5. shaping the goals and methods of the field and distinguishing OD from other improvement strategies. beliefs and assumptions.3 Chronology of Events in Management and Organization Thought 5. 5. Objectives: After studying this unit.2 Implications for Dealing with Groups 5. assumptions.1 Implications for Dealing with Individuals 5.7 Terminal Questions 5. you will be able to: · Explain the meaning of values.1 Introduction A set of values.6 Summary Self Assessment Questions 5.5.5. · List the chronology of events of values. · Give the statement of OD values and assumptions.5.3 Implications for Designing and Running Organizations 5.5.5 Implications of OD Values and Assumptions 5. .2 Definitions A belief is a proposition about how the world works that the individual accepts as true. it is a cognitive fact for the person. and beliefs constitutes an integral part of organization development. beliefs and assumptions.4 Early Statements of OD Values and Assumptions 5. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers. · State the implications of OD values and assumptions. and they continue to evolve as the field itself evolves.

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

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

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

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

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

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

5. authentic interpersonal relations. challenge. the legitimacy of feelings. · Away from a view of process work as being unproductive effort toward seeing it as essential to effective task accomplishment. open communication. decentralized decision making. The first assumption is that most individuals have drives toward personal growth and development if provided an environment that is both supportive and challenging. 5.1 Implications for Dealing with Individuals Two basic assumptions about individuals in organizations pervade organization development. a greater contribution to attaining organization goals than most organizational environments permit. give responsibility. collaboration and co-operation. participation and contribution by all organization members. but in the 1950s and 1960s they represented a radical departure from accepted beliefs and assumptions. The implications of these two assumptions are straightforward: Ask. The people doing the work are generally experts on how to do it and how to do it better.2 Implications for Dealing with Groups . and arbitrary management practices as well as the dysfunctions of bureaucracies. and so forth were seldom espoused and rarely implemented in the vast majority of organizations at that time. These values and assumptions may not seem profound today. and are capable of making. autocratic. Beliefs such as trust and respect for the individual.· Away from avoidance of risk-taking toward willingness to risk. 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. and reward success. give autonomy.5. The humanistic values prompted a search for better ways to run organizations and develop the people in them.5. set high standards. The second assumption is that most people desire to make. listen. encourage risk-taking. · Away from a primary emphasis on competition toward a much greater emphasis on collaboration. remove obstacles and barriers. groups. Most people want to develop their potential. permit failure.5 Implications of OD Values and Assumptions Let us examine specific assumptions and their implications for organization leaders and members. appropriate uses of power. A tremendous amount of constructive energy can be tapped if organizations realize and act on these assumptions. The democratic values prompted a critique of authoritarian. We answer the question: What are some of the implications of OD assumptions and values for dealing with individuals. support. and organizations? 5.

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

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

values.3 . _______________ gave theory X and theory Y. 5.1. Refer section 5. 5. Write a note about F. Taylor’s principles of scientific management.7 Terminal Questions 1.3 3. Douglas McGregor Answers to TQs: 1. and assumptions are all –––––––––– facts. What was the outcome of Hawthorne Experiments? 4. F. The concept of –––––––––– was introduced by MaxWeber. State the assumptions of Theory X and Theory Y. Cognitive 2. beliefs. 4. beliefs and assumptions. 3. W. Refer section 5. 5. 2. Define concepts.W.8 Answers to SAQs and TQs SAQs: 1. Taylor 3. Values. 3.2 2. 2. Bureaucracy 4. __________ is associated with scientific management. Refer section 5. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. Hawthorne experiments 5. The outcome of –––––––– was that people were not cogs and organizations were not machines.

1 The Nature of Systems 6.4 Porras and Robertson Model of Organizational Change 6.3 5.3.2 Beyond the Quick Fix 6.1 Kurt Lewin and Friends 6.4 Participation and Empowerment .2 Congruence among System Elements 6.3 Socio-technical Theory and Open Systems Planning 6.2 Models and Theories of Planned Change 6.3. Refer section 5. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.4.3.2.3 Systems Theory 6.2.3 The Burke-Litwin Model of Organizational Change 6.2.2. Refer section 5.1 Introduction Objectives 6.4 Open Systems Thinking 6.3.3 Copyright © 2009 SMU Powered by Sikkim Manipal University .

9 Action Research Self Assessment Questions 6.6.1 Introduction This unit describes the foundations of organization development theory and practice. In this discussion. you will be able to: · Explain various models and theories of planned change. We will examine the following concepts: .7 A Normative – Re-educative Strategy of Changing 6. Here we describe what we believe are the most important underpinnings for the field. · Explain systems theory.6 Parallel Learning Structures 6.11 Terminal Questions 6.5 Teams and Teamwork 6. · Describe the parallel learning structures.10 Summary 6. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs. Objectives: After studying this unit. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning. · Explain normative-re-educative strategy of changing The knowledge base of OD is extensive and is constantly growing.12 Answers to SAQs and TQs 6. · Realize the importance of teams and teamwork. art and science which form the knowledge base upon which OD is constructed.8 Applied Behavioural Science 6. · Explain the terms ‘participation’ and ‘empowerment’.

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

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

This seven-stage model lays out the logical steps involved in OD consulting. Similar models have been developed by Kolb and Frohman and by Burke. stabilizing the changes requires testing to see if they fit-fit with the individual. This phase corresponds to Lewin’s unfreezing phase. terminating the client-consultant relationship. Jeanne Watson. Their seven stages are as follows: Phase 1: Developing a need for change. 6. identifying with ex-smokers and learning about the health risks of smoking. . that is. The primary task in stage 3. Phase 6: Generalizing and stabilizing change. This model has five sequential stages: 1) Initiating the program. This phase corresponds to Lewin’s refreezing phase. Phase 7: Achieving a terminal relationship. Phase 3: Clarifying or diagnosing the client system’s problem. refreezing. 4.2. is to integrate the new behaviours into the person’s personality. and Bruce Westley. These "road maps" are useful for thinking about change. They expanded the three-stage model into a seven-stage model representing the consulting process. That is. In this phase a client system in need of help and a change agent from outside the system establish a working relationship.2 Beyond the “Quick Fix” A comprehensive change model by Ralph Kilmann specifies the critical leverage points for organizational change. Phase 4: Examining alternative routes and goals. moving. for example. and 5 correspond ro Lewin’s moving phase. The phrase significant relationships refer to important people in the person’s social environment-do these significant others approve of the changes? Another modification of Lewin’s model was proposed by Ronald Lippitt. and attitudes. and fit with the individual’s social surroundings.In stage 2. Phases 3. the person undergoes cognitive restructuring. establishing goals and intentions of action. The person acquires information and evidence showing that the change is desirable and possible. This motivating evidence is gained by. Phase 5: Transforming intentions into actual change efforts. Phase 2: Establishing a change relationship.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

” . OD practitioners know about these patterns through research and theory. behavioural science knowledge." Both diagnosis and treatment consist of observing a situation and." applied science. The principles of diagnosis and of treatment constitute the principles of practice. by modifying a group norm or standards. OD is the application of behavioural science knowledge. i. The practitioner examines the problem situation. for example.. Each type description of the diagnostic typology contains implications for a certain type of treatment. thereby solving the problem. on the basis of which he or she prescribes a solution that. or practice. not the individual. This process is customarily referred to as diagnosis and treatment. hopefully. and skills in ongoing systems in collaboration with system members. and (2) "technology. 6. success corroborating the diagnosis. the object of which is knowledge to solve practical. The diagnostic typology allows the practitioner to know what category of situation he or she has examined. the object of which is knowledge for its own sake. On this point. Burke writes: “If one attempts to change an attitude or the behaviour of an individual without attempting to change the same attitude or behaviour in the group to which the individual belongs. the major leverage point for change is at the group level. norms can best be changed by focusing on the group. Thus.8 Applied Behavioural Science This foundation of OD relates to the primary knowledge base of the field. on the basis of selected variables. The practitioner uses treatment as the empirical test of his diagnosis. Greenwood discusses the activities of the practitioner as follows: "The problem that confronts a practitioner is customarily a state of disequilibrium that requires rectification. with their elaborations and implications constitute practice theory. OD emphasizes the latter.Because norms are socially accepted beliefs held by groups about appropriate and inappropriate behaviours. practices. lawful patterns of events produce effectiveness and ineffectiveness. 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. applied science or practice. The aim of this discussion is to look briefly at how behavioural science knowledge becomes applied behavioural science knowledge. A conventional distinction is made between (1) "pure" or basic science. Greenwood states: “The diagnostic and treatment typologies are employed together.e. failure negating it and thus requiring re-diagnosis. placing it in a classification scheme or typology. re-establishes the equilibrium. pressing problems. the treatment typology allows the practitioner to know what remedial efforts to apply to correct the problem.” Norms help determine individual behaviour and a normative-re-educative strategy of changing pervades the practice of OD. Although human behaviour in organizations is far from an exact science.

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

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

4.” Comment on this statement. MU0002-Unit-07-Organization Climate Unit-07-Organization Culture and Climate Structure: 7.3 4. Refer section 6.1 2.1 Introduction Objectives 7.3 5. Transactional change 4. System 5.2.12 Answers to SAQs and TQs SAQs: 1.Refer section 6. Ralph Kilmann 3. Synergy Answers to TQs: 1.2. What are the features of systems theory of organizational development? 5. 6. Unfreezing 2. Refer section 6.2 3. Refer section 6.2 Characteristics of Organization Culture Culture and .2.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 6. “Work teams are building blocks of organizational development.

what members wear.8 Answers to SAQs and TQs 7. and validated enough to be taught to new members as the correct ways of perceiving.7. but also changing the corporate culture as well. values. discovered. thinking. .7 Terminal Questions 7.1 Introduction Basically. Culture is comprised of the assumptions. The concept of culture is particularly important when attempting to manage organization-wide change. · Describe different types of Organization Culture · Explain organization culture and effectiveness.6 Summary 7. Comprehensively organization culture is the pattern of basic assumptions that is invented. – similar to what you can use to get a feeling about someone’s personality. you will be able to: · Understand Organization Culture. what they brag about. Martin and Meyerson. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. 7.5 Developing and changing Organization Culture Self Assessment Questions 7. for-profit corporation is quite different than that of a hospital which is quite different than that of a university.3 Types of Organization Culture. For example.4 Organization Culture and Effectiveness 7. but everyone knows it when they sense it. norms and tangible signs (artifacts) of organization members and their behaviors. Members of an organization soon come to sense the particular culture of an organization. Culture is one of those terms that’s difficult to express distinctly. etc. organizational change must include not only changing structures and processes. You can tell the culture of an organization by looking at the arrangement of furniture. despite the best-laid plans. the culture of a large. Objectives: After studying this unit. organizational culture is the personality of the organization. 1986). Practitioners are coming to realize that. and feeling in relation to these problems (Schein.

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

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

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

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

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

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

Refer section 7.3 3. Artifacts 2. Finally. Organizations to be successful must be efficient and effective.7 Terminal Questions 1. Market 3.8 Answers to SAQs and TQs SAQs: 1.goal approach.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. 7. and strategic constituencies approach.2 2. Refer section 7. . 2. Causal variables Answers to TQs: 1. Explain the characteristics of organization culture. system-resource approach. Discuss the development and change of organizational development. 7. 3. Refer section 7. behavioural approach. intervening variables and end-result variables and there exists interrelationship among these variables. Factors in organizational effectiveness include casual variables. Effectiveness of an organization can be increased through economic man approach and administrative man approach. Briefly explain different types of organizational culture. Organizational effectiveness can be measured through various approaches. effectiveness through adaptive-coping cycle has been discussed.

we examine power and politics in relation to organization development. Politics and Organization Development Structure: 8.1 Introduction Politics and Power and politics. must be understood if one is to be effective in organizations. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics.Power.MU0002-Unit-08Power. Organization Development Unit-08.4 Theories about the Sources of Social Power 8.7 Operating in a Political Environment 8.6 The Role of Power and Politics in the Practice of OD 8. power must be exercised. indisputable facts of organizational life.3 Two Faces of Power 8.5 Organizational Politics Defined and Explored 8. and for change to occur in an organization.10 Terminal Questions 8.” Organization development has been criticized for not taking into account power in organizations.9 Summary 8. In this unit.2 Power Defined and Explored 8.11 Answers to SAQs and TQs 8.8 Acquiring and using Power Skills Self Assessment Questions 8.1 Introduction Objectives 8. That criticism was essentially correct for many years although it is less valid . As Warner Burke observes: "Organization development signifies change.

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

Roberts came to a similar conclusion in her study of "collective power" and "competitive power. Leading." A moment’s reflection. absolute power corrupts absolutely. we will examine four different views about who gets power and how: · Emerson’s "Power-Dependence theory. 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. with collective. In fact. the negative face of power is characterized by a primitive. unsocialized need to dominate others. The positive face of power is characterized by a socialized need to initiate. It is especially salient in coordinated activities such as those found in organizations. influencing. forcing. 8. Crushing. influence. an authority or power dimension is required. coercing-these are examples of negative uses of power. persuading-these are examples of positive uses of power. bestowed. however. suggests that many problems with power stem from the goals of persons with power and the means they use. being exercised. hurting. Power per se is probably neither good nor bad although Lord Acton observed that "power tends to corrupt.3 Two Faces of Power David McClelland proposed an important distinction when he identified "two faces of power" – positive and negative." Her research in four organizations showed both kinds of power. In most organizations the positive face of power is much more prevalent than the negative face of power. . or acquired? In this unit.take many forms. the positive face of power seeks to empower self and others. 8.4 Theories about the Sources of Social Power Power exists in virtually all social situations. How do some people come to possess power? How is power generated. or positive. it is through the use of power that things get done in the world. and lead. The negative face of power seeks to dominate and control others. not the possession of power as such. McClelland observed that while power has a negative connotation for most people. both positive and negative. This positive face of power enables others to reach their goals as well as lets the person exercising power reach his or her goals. selling." · Mintzberg’s Observations on the Genesis of Power in Organizations." · French and Raven’s "Bases of Social Power. We think this distinction provides a good insight into the concept of power. for organizations to function. power being the predominant mode. According to him." · Salancik and Pfeffer’s "Strategic-Contingency Model of Power.

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

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

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

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

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

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

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

which in turn will protect the interests of all concerned. personal power and position power. (Legitimacy refers to abiding by and promoting the values of the organization. then utilize a facilitative OD process in which the powerholders work on strategic business issues using consensus decision making to develop a corporate strategy. 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. visibility-how much one’s work is seen by . criticality-how important one’s job is flexibility-the amount of discretion in the job. even those of little power. The power structure will realize that collaborative power is preferable to manipulation and deception. a person’s power comes from two main sources. in turn. This practical. and legitimacy. Personal power.· Expertise · Information · Tradition Others’ Support   · Use data to convince · Focus on target group · Be persistent Using Social Networks · Alliances and coalitions · Deal with decision maker · Contacts for information Going Around Formal System · Work around roadblocks · (Don’t) use organization rules Political access Staff support Personality    Charisma Reputation Professional credibility Finally. 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. personal attraction. influence key powerholders to accept the OD program. effort. how-to book on power and organization development is well worth studying. arises from expertise. In this model. Whetton and Cameron’s model is shown in following figure.) Position power derives from five sources: Centrality-access to information in a communication network.

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

and are amenable to positive control. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics. emotions or behaviour of people. when and how. Methods for empowering others are the following: (1) involve subordinates in assigning work. Power and politics are similar in nature. and (6) build on success. units or departments is most important in solving organizational problems. Organizational politics involve intentional acts of influence to enhance or protect the self-interest of individuals or groups. (3) reward and encourage others in visible and personal ways. reputation and professional credibility. Concluding Comments: In this unit. Define power in an organizational context and explain types of power. 2. 4.10 Terminal Questions 1. Self Assessment Questions 1.9 Summary Power and politics are inseparable facts of organizational life. collaborative work environment. when.. Strategic-contingency model of power asserts that power that accrues to the individuals. 3. 8. –––––– is the intentional influence over the beliefs. Power based on the power-receiver having identification with the power holder is called ––– ––––––––. Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another. Our suggestions for using power to operate effectively in organizations may help practitioner avoid the perils and pitfalls of power that "go with the territory" of organizational change. we have examined power and politics with the goals of understanding the phenomena and deriving implications for OD practitioners. and how. 8. arise from known conditions.several means of resisting others’ influence attempts such as confrontation and using countervailing power. –––––––––– is made up of Charisma. –––––––– defined politics as the study of who gets what. (4) express confidence (5) foster initiative and responsibility. arise from known conditions. (2) provide a positive. Power can be either positive or negative. . Organizational power is the ability of those who possess power to bring about the outcomes they desire. 5. Organizational politics is defined as the study of who gets what. _____________ has identified two faces of power. Power and politics are similar in nature. and are amenable to positive control.

5. Personality Answers to TQs: 1.Refer section 8.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 8. Refer section 8.5 4. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9.11 Answers to SAQs and TQs SAQs: 1. Refer section 8.4 3. Refer section 8.2 2. McClelland 3.1 Introduction .6 5. 8. Referent power 4. Power 2. Describe briefly various theories of power. Explain the role of power and politics in the practice of OD. Identify the bases of individual power and the respective strategies for their success.2. 4. 3. Define organization politics. Harold Lasswell 5.

4 Management By Objectives 9. actions.12 Answers to SAQs and TQs 9.3 Socio Technical Systems 9.8 Total Quality Management 9.Objectives 9.10 Summary 9.11 Terminal Questions 9. An organization development intervention is a sequence of activities. Objectives: . These methods are receiving increasing attention in Organization Development.9 Reengineering Self Assessment Questions 9.2 Meaning and Definitions 9. These interventions vary from standardized program that have been developed and sometimes tailored program.5 Quality Circles 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. organizational problems may repeat.6 Quality of Work Life Projects 9. In this dynamic and fluid environment.7 Parallel Learning Structures 9. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design. These programs are derived from careful diagnosis.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. Nothing is permanent except change because change is permanently changing. events intended to help an organization improve its performance and effectiveness.

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

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

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

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.

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

Drucker 3.11 Terminal Questions 1.5 4. Write a short note on Total Quality Management. Explain Management By Objectives? 4. Refer section 9. It is also called continuous quality improvement. ties reward to performance and increase workers knowledge and skills through extensive training. TQM pushes decision making power downwards in the organization.circle represents a participative approach to employee involvement in problem solving and productivity improvement.12 Answers to SAQs and TQS SAQs: 1. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. .3 2. provides relevant information to all employees.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . 9. What are the advantages of structural interventions? 3.Refer section 9. Quality circle Answers to TQs: 1. 9. Refer section 9. Discuss Socio Technical Systems? 2. Refer section 9.2 3. Intervention 2.

10. In this dynamic and fluid environment. Self Assessment Questions 10. cope with the ongoing changes successfully in the first instance.7 Summary 10.1 Introduction Objectives 10.MU0002-Unit-10-Managing Organization Development Unit-10-Managing Change in Organization Development Structure: 10.6 Methods of Reducing Resistance to Change.4 Causes for Resistance to Change.2 Nature of Change 10.8 Terminal Questions 10.1 Introduction Change in Organizations are increasingly realizing the fact that change is the price of the survival. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future. organizational problems may repeat. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented).3 Resistance to Change 10.9 Answers to SAQs and TQs 10. Hence. Objectives: . and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other.5 Impact of Change on the Future Manager 10. Nothing is permanent except change because change is permanently changing.

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

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

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

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

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

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

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

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

In many cases. rather should be looked upon as a dialogue which continues over a period of time. strategic directions for the company must be identified in light of these changes. This requires that managers think differently and teach employees to think differently. at the level of individual and at the level of group. even the impact of change may be dysfunctional if change is imposed upon the people by the use of formal authority. the role of formal authority in implementing a change may not be effective all the times. For this purpose. They need to be adept at reading the trends in the environment and then determining what they mean specifically for their own organization. typically by way of computer network links. that is. Unless this problem is overcome properly.The ultimate goal is to improve organizational performance by cutting production time or time to market. the problems can be solved at the same level. the following efforts can be taken: 1.6 Methods of Reducing Resistance to Change One of the basic problems in managing change is to overcome people’s resistance to change successfully.” Problem of overcoming resistance to change can be handled at two levels. 10. It may affect only a few while others may not be affected. Locavini observes that “the secret of real success is effective management of the emotional vulnerability that accompanies organizational change. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. it can make effectively by managing resistance effectively. More fluid structures require that managers improve their strategic orientation. Efforts at Individual Level A change is likely to affect some people in some way. It implies explanation and . the effect of the change may not be as functional as envisaged by the management.” The newer organizational structures use term problem solving. this is not a one-time action. Involvement: Involvement is a process through which those who are affected by the change are brought to understand the change. Decision making is becoming more and more comfortable for those throughout the organization as the need to make decisions is distributed more evenly across all organizational levels. When the resistance comes from the people at individual levels. Stephen Robbins suggests that “…… managers in virtual structures spend most of their time coordinating and controlling external relations. managers must be more skilled at reading the environment and grasping the big picture. both at the formal and informal levels. As organizations must be better equipped to respond to change in their external environment. However. Therefore. through group dynamics. Problem solving now involves the people who are experts in the issue – not necessarily those in high positions in the organization. For example. In addition.

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

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

through group dynamics.6.10. For instance. Discuss the methods of reducing resistance to change. or deferred. Changes may be influenced by external and internal factors. both at the formal and informal levels. group resistance and vested interests.4 3. People tend to resist many types of changes because new habits or sacrifices are required.8 Terminal Questions 1. Refer section 10. Psychological factors 3.9 Answers to SAQs and TQS SAQs: 1. It is easiest for management to deal with resistance when it is overt and immediate. implicit. that is. a change is proposed and employees quickly respond by voicing complaints. Explain the nature of change? 2. at the level of individual and at the level of group. Participation Answers to TQs: 1. Refer section 10. Refer section 10. psychological factors. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. Problem of overcoming resistance to change can be handled at two levels. Organizational change 2. It implies a new equilibrium between different components of the organization. 10. Reference: . social factors. 10.7 Summary Change is inevitable. threatening to go on strike. Why do organizations resist change? 3. engaging in a work showdown. Organizational change is the alteration of work environment in an organization. Resistance can be overt. or the like. Economic factors.2 2. immediate.

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