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

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

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

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

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

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

government policy. . skills.motivates employees to work harder and better by providing necessary guidance. They try to put everything on the right tract. a profession possesses the following characteristics: i) A body of principles. An enterprise has to take note of these changes and adapt itself quickly. (vi) Improves standard of living : Management improves the standard of living of people by (a) using scarce resources efficiently and turning out profits. Objective can be achieved only when the human and non-human resources are combined in a proper way. iii) The establishment of a representative organization with professiona-lizing as its goal. hire competent people and provide necessary guidance. counseling and effective leadership. all these help in realizing goals with maximum efficiency. etc. competition. According to McFarland. forecasting combined with efficient use of resources) and taking appropriate steps. (b) Ensuring the survival of the firm in the face of continued changes. techniques. often threaten the survival of a firm. Successful managers are the ones who anticipate and adjust to changing circumstances rather than being passively swept along or caught unprepared. (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. procedures and reward systems. manager tries to strike a happy balance between the demands of employees and organizational requirements. Industrial peace is an essential requirement for increasing productivity. Management is goal-oriented.. To this end. Thus unnecessary deviations. (iv) Achievement of goals: Management plays an important role in the achievement of objectives of an organization. and specialized knowledge. Failure to take note of customer’s needs regarding full efficiently has spelt doom for ‘Ideal java’ in the two-wheeler market in India. Overlapping efforts and waste motions are avoided. ii) Formalized methods of acquiring training and experience. With a view to realize the predetermined goals-managers plan carefully. methods. Organize the resources properly. we generally mean a manager who undertakes management as a career and is not interested in acquiring ownership share in the enterprise which he manages. In the final analysis. Managers help an organization by anticipating these changes (carefull planning. (v) Change and growth: Changes in technology. (iii) Establishers sound industrial relations: Management minimizes industrial disputes and contributes to sound industrial relations in an undertaking. They initiate prompt actions whenever workers express dissatisfaction over organizational rules. Management as a profession By a professional manager.

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

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

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

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

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

Status Administration refers to Management is relevant higher levels of management. Scope It is concerned with It is concerned with the determination of major implementation of objectives and policies. operative workforce for the execution of plans.. It is a execution of decisions. 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. This view is held by Tead. 2. of human resources.Administration determines Management decides who Making what is to be done and when shall implement the it is to be done.e. Thus. 8.2: Distinction between Administration and Management: Basic 1. It thinking function. Meaning Administration Management Administration is concerned Management means with the formulation of getting the work done objectives. on the other hand. 7. is a doing function. 3. Usage of Term The term ‘administration’ is The term ‘management’ is often associated with widely used in business . 6. environmental forces. of the organisation. Direction of It is concerned with leading It is concerned with Human Resources and motivation of middle leading and motivation of level executives. i. Table 1. 5. policies. management as an executive function which is primarily concerned with carrying out of the broad policies laid down by the administration. plans and policies through and with others. administrative decisions. Managers are Administrators are basically concerned mainly with concerned with planning and organisation and direction control. whereas management refers to execution of policies laid down by administration. administration involves broad policy-making and management involves the execution of policies laid down by the administration. Spriegel and Walter. 4.Administration refers to policy-making. objectives. making strategic plans to deal plans and policies of the effectively with the organisation. Nature Administration relates to the Management relates to decision-making. Administration is a determinative function. Decision. Environment Administration has direct Management is mainly interaction with external concerned with internal environment of business and forces. at lower levels of management.

Five M’s of management (________. Management 2. machinery and methods or ways of doing things) depends to a great extent on the quality of management. 1. middle and lower. Human skills are important at all managerial levels. Discuss the importance of management. Bring out the difference between Administration and Management. counseling and effective leadership. manpower 3. Managers perform different roles to discharge their responsibilities. organisations.8 Summary Management is concerned with getting things done through other people. 1. Management creates ________ and motivates employees to work harder and better by providing necessary guidance. __________is principally the task of planning. 1. public organisations sector and non-business private sector. Self Assessment Questions in the 1.9 Terminal Questions 1. Money. 2. 3. Define management. 2. _________. Explain its characteristics. motivating and controlling the efforts of others towards a specific objective. teamwork . ___________. Lower level managers require and use a greater degree of technical skill and managers at higher levels use a greater degree of conceptual skill. materials. There are three levels of management-top. It is the management which transforms physical resources of an organization into productive resources. 3. Still management is not completely a profession.10 Answers to SAQs and TQs SAQs: 1. co-ordinating. Management is largely found at the middle and lower levels and administration is found at the higher levels.government offices.

Refer section 1.6 Directing 2.5 3.2 Process of Management 2.Answers to TQs: 1.10 Answers to SAQs and TQs .2.1.9 Terminal Questions 2.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .4 Organizing 2.1 Introduction Objectives 2.8 Summary 2. Refer section 1. Refer section 1. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.3 Planning 2.3 2.7 Motivating Self Assessment Questions 2.5 Staffing 2.

There is a degree of overlap between the two. · Explain Planning. Organizing. Commanding 4. Directing. in recent time. Planning 2. you will be able to: · Define Management process. Even .2. One can also think of management functionally. leadership is doing the right things“. Coordinating 5.2 Management Process Peter Drucker said: “Management is doing things right. leadership is about setting the desirable goals. 2. Controlling However. the two are not quite the same. It is difficult to say where objectives end and policies begin. as the action of measuring a quantity on a regular basis and of adjusting some initial plan.1 Introduction Follett (1933) defined management as "the art of getting things done through people”. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent. management functions have been regrouped into four categories. You might well ask what the need for a policy is when objectives are already defined. Through leadership and management often overlap. 1949): 1. Management is about accomplishing a goal efficiently. Organizing 3. Motivating. Management functions are as follows (Fayol. Staffing. Policy Formulation We have noted earlier that all organizations have well-defined goals and objectives. Objectives: After this studying this unit. · Explain different functions of management Process.

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

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

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

2. working toward common goals. grouped. who reports to whom. Formalization is an important aspect of structure. and where decisions are to be made. To develop an environmental monitoring procedure. and coordinated. Group related jobs together in a logical and efficient manner 5. An organization chart displays the organizational structure and shows job titles. The steps in the organizing process include: 1.4 Organizing It involves designing. 2. The purpose of the organizing function is to make the best use of the organization’s resources to achieve organizational goals. It is the process of determining what tasks are to be done. Assign work to individuals 6. This review is used for the next planning cycle and review.5 Staffing . who is to do. procedures. Review plans 2. Monitor the plan A systematic method of monitoring the environment must be adopted to continuously improve the strategic planning process. Feedback is encouraged and incorporated to determine if goals and objectives are feasible. A key issue in accomplishing the goals identified in the planning process is structuring the work of the organization. necessary to maintain competitive advantage in the said market. Organizational structure is the formal decision-making framework by which job tasks are divided. and goals are clearly stated. and coordinating the work components to achieve organizational goal. The formal organization can be seen and represented in chart form. It is the extent to which the units of the organization are explicitly defined and its policies. and relationships between departments. Organizations are groups of people. Divide tasks into groups one person can accomplish – a job 4. List all tasks to be accomplished 3. It is the official organizational structure conceived and built by top management. structuring. how the tasks are to be grouped. Delegate authority to establish relationships between jobs and groups of jobs. short-term standards for key variables that will tend to validate and support the long-range estimates must be established.must be accompanied by controls to ensure proper implantation of the plans. with ideas and resources. lines of authority.

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

recruitment. identifying the manpower requirements. It is a process: it is a process having a logical sequence i. Direction is an important managerial function. Direction function is performed at every level of management. Direction is continuous process and it continues throughout the life-time of the organization. It is a continuous function: With the growth and expansion of business additional manpower is needed. Definition According to Koontz and O’Donnel. promotion. resignation.e. It is a continuing function. overseeing and leading people. 2. Thus staffing deals with the future requirements also. Through direction. It deals with future requirements: Staffing deals with current and future personnel requirements.5. 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”. Direction is the managerial function of guiding. how to do and telling them to do to the best of their ability. 8. 6.6 Directing Direction is one of the functions of management. etc. Characteristics of Direction The characteristic features of direction are as follow: 1. Present positions must be filled keeping in mind the future requirements. vacancies arise out of retirement. training development and maintenance of personnel. 3. motivate them. 7. . Personnel policies and programs must be formulated as guides to perform the staffing function effectively. management initiates actions in the organization. lead them and guide them on a continuous basis. It is an important managerial function. 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. selection. Thus staffing is an ongoing process through – out the life of an organization. It is instructing people as to what to do. 2. A manger needs to give orders to his subordinates. induction.

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

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

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

Reference 2. Explain Staffing in detail 3. Reference 2.1 Introduction Objectives . 2.10 Answers to SAQs and TQs SAQs: 1. SWOT 3.9 Terminal Questions 1. Reference 2.6 Copyright © 2009 SMU Powered by Sikkim Manipal University . Follett 2. Staffing Answers to TQs: 1.5 3.3 2. What is planning? 2. Write a short not on directing.2. 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.

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

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

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

Attempting to create “win-win” solutions is standard practice in OD programs. It recognizes that organizational goals change. 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 views organization improvement as an ongoing process in the context of a constantly changing environment. 4. 2. and co-learners with the client system. OD efforts are not one-shot actions. 10. OD takes a developmental view that seeks the betterment of both individuals and the organization. Participation and involvement in problem-solving and decision-making by all levels of the organization are hallmarks of OD. so the methods of attaining these goals should also change. 3. OD focuses on total system change and views organizations as complex social systems. collaborators. 9.3. OD relies on an action research model with extensive participation by client system members. interactive. 6. so that change is easily observed. they are ongoing. An overarching goal is to make the client system able to solve its problems on its own by teaching the skills and knowledge of continuous learning through self-analytical methods. OD practitioners are facilitators.3 Characteristics of OD 1. temporary. 8. Thus. rather than focusing attention on individuals. 3. Rather. 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. Planned Change: OD is a strategy of planned change for organizational improvement. 7. 4. Long-range Change: OD efforts are not meant for solving short-term. . OD focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. or isolated problems. The concept of comprehensive change is based on the systems concept-open. 5. Teams of all kinds are particularly important for accomplishing tasks and are targets for OD activities. dynamic and adaptive system. and cyclic processes. This ‘planned’ emphasis separates OD efforts from other kinds of more haphazard changes that are frequently undertaken by organizations. OD focuses on the elevation of an organization to a higher level of functioning by improving the performance and satisfaction. Comprehensive Change: OD efforts focus on comprehensive change in the organization. rather.

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

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

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

7 Role of Organization Development Organization development. however. Long-range strategy for organizational innovation and renewal. In early 60s.Approach Time Educative and training Short-range. 3. etc. plays key role in organizational improvement. however. To treat each human being as a complex person with a complex set of needs important in his work and his life. By 70s. 7. has invited sharp criticism as a strategy to increase organizational viability and effectiveness because many OD programmes have failed. Trained specialists required. Research studies have also failed to conclude . To increase the level of trust and mutual emotional support among all organization members. 5.8 Problems in Organization Development Organization development. OD became quite successful with many professional consultants offering high services and programmes to various organizations. substantial disenchantment with OD became evident because of many controversial OD techniques like sensitivity training. OD can be utilized for the following results in the organization: 1. it is quite suitable for improving organizational performance on long-term basis. To increase the level of self and group responsibility in planning and its implementation. Specialist No special requirement. 4. To increase the openness of communications in all directions-vertically. To place emphasis on humanistic values and goals consistent with these vales. Much of the enthusiasm created at the beginning of OD programmes vanished over the period of time. To create an environment in which authority of assigned role is augmented by authority based on knowledge and skills. Problem-solving approach. confrontation techniques. 2. Since OD attempts to bring comprehensive change in the organization. and laterally. horizontally. 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. 3. Thus. as a long-term strategy for organizational change. To increase the level of enthusiasms and personal satisfaction at all levels of the organization. 6.

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

5. Empowerment . 2.10 Terminal Questions 1. _____________is a short-term strategy. ––––––––– is a process which includes leadership behaviours and human resource practices.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. Organization development should be led and supported by –––––––. The participative. 3. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. Tom Peters 3.Self Assessment Questions 1. 4. 4. ––––––– is associated with “Liberation Management”. Distinguish between ‘organizational development’ and ‘management development’. Explain the various characteristics of OD. 2. collaborative. Who is associated with the “Learning Organizations”? 5. OD focuses on culture and processes. Define OD. 3. There is no ‘quick fix’ to organizations’ problems. Explain its salient features. Top management 2. OD is the ultimate remedy for organizational improvements and developments. problem-focused ‘nature of OD’ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. What are the problems involved in the implementation of OD? 3. But OD aims at changing the entire organizational climate where the managers work. Management development aims at developing the managers individually.11 Answers to SAQs and TQs SAQs: 1. 3. State the various roles of OD. 3.

Peter Senge 5.2 2.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 Survey Feedback 4.3 3.1 Introduction Objectives 4.6 Team-building .6 4. Refer section 3. Refer section 3. Refer section 3.Organization Development – Interventions Unit-04.3 Process Consultation 4.4 Grid Training 4. Refer section 3. MU0002-Unit-04.Organization Development – Interventions Structure: 4.4.7 5. Management development Answers to TQs: 1. Refer section 3.5 Leadership Development 4.

the classification appears to be more relevant because it may specify the . However. inter-group level. interpersonal level. Nevertheless. Interventions constitute the action thrust of organization development. management grid.8 Change Agents 4.11 Terminal Questions 4. Therefore. People’s behaviour may be relevant to understand at individual level. techno-structural activities.12 Answers to SAQs and TQs 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. and organizational level. Thus. group level. the classification of OD interventions shows variation.9 Role of Change Agents Self Assessment Questions 4.4. work group. process consultation.1 Introduction OD interventions refer to various activities which a consultant and client organization perform for improving organizational performance through enabling organizational members better manage their behaviour. For example. Further. interventions may be required to change people at all these levels. 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. French and Bell have suggested twelve families of OD interventions: diagnostic. and organizational culture. they make things happen. 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. education and training. 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. mediation and negotiation activities.7 Inter Group Development 4.10 Summary 4. various consultants and practitioners have different opinions about the activities which can be included in interventions.” There are various OD interventions and they are classified in different ways. team-building. many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others. inter-group activities.

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

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

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

Though he is involved only in suggesting the various changes in the processes. group. The whole orientation is to develop managerial style through the application of behavioural science knowledge. P. The grid organization development consists of six phases. like other OD intervention techniques.C programmes. Reduce Involvement and Terminate: When the work of P. both these problems may be overcome by engaging a suitable consultant and developing willingness among the members for change. However. It is a comprehensive and systematic OD programme which aims at individuals.C is very effective intervention for organizational improvement. inter-group. feedback. Intervene: At this stage.5. Process of Grid Training The basic content of grid organization development is managerial grid as discussed. 6. 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. . knowledge. From this point of view. In the review of various P. the consultant disengages from the client organization by mutual agreement but leaves the door open for future involvement.C is completed. To understand the importance and rationale of systematic change. 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. However. the consultant intervenes in the organizational processes by using different interventions like agenda-setting. focuses on skills. and processes necessary for effectiveness at the individual. P. enabling individuals and groups to assess their own strengths and weaknesses. groups. Its specific objectives are as follows: 1. To evaluate the styles of leadership and techniques of participation to produce desirable results. 2. 3. To study the organization as an interactive system and apply techniques of analysis in diagnosing its problems.4 Grid Training Grid training is basically based on grid organization development developed by Blake and Mouton. 4. One basic reason for this phenomenon may be the consultant’s inability to steer the organization out of troubles. and total organizational levels. coaching. and the organization as a whole. It utilizes a considerable number of instruments.C is also not free from criticisms. and/or structural change. significant correlation between the outcomes has not been found.

grid training is a non-rigorous method. Managerial grid: It covers various aspects of assessing managerial styles. and problemsolving are also developed. The action is designed to identify the characteristics of the ideal organization. The individuals try to learn to become managers by practice. objective-setting. Inter-group Development: At this phase. Each group may be given assignment to evolve strategy for making ideal organization with the help of the consultant. They have maintained that “managerial and team effectiveness can be taught to managers with outside assistance. grid training has some positive contributions for organizational effectiveness. Grid training programme is criticized on the basis that it lacks contingency approach and. the various programmes may be redesigned. Each group separately analyses the ideal inter-group relations. some of them have not supported the claims made by Blake and Mouton. it appears that this type of educational strategy can help to make significant contributions to organizational effectiveness. the focus shifts to the total organization and to develop skills necessary for organizational excellence. it discounts reality. 5. The strategy is then implemented. Systematic Critique: In this stage. 2.5 Leadership Development . 4. problem-solving.” In a later work. The thrust is on moving groups from conflict to co-operation. therefore. and teamwork. The analysis will bring out the shortcomings that may be there. Furthermore. The skills relating to planning. Teamwork Development: The focus in this stage is to develop teamwork by analyzing team culture. 4. communication skills. Developing Ideal Strategic Corporate Model: At this stage. Further. the focus is on inter-group behaviour and relations. 3. Though research studies on the application of grid training are not many. in spite of these criticisms. and alike. The members of the organization are trained for achieving this excellence. Evaluation of Grid Training Most of the support of grid training has come from its originators-Blake and Mouton. 6. 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. they maintained the same stand. traditions. In this light.1. the various efforts from phase 1 to phase 5 are evaluated and critical analysis is made. Action steps to move towards the ideal are developed and assigned to individuals who may be engaged in building co-operative inter-group relationships.

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

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

how a particular element affects another and is affected by it. In such an assignment. a team is created to undertake a task which requires a variety of skills and single individual cannot perform that task alone. After the adjournment of the team. intense social relationship among members comes to an end. concept of stages is significant in the context of the nature of problem which team members are likely to face in team-work. Putting the concept of synergy in teamwork means members of the team are complementary to each other and they contribute positively to one another. and so on. committee. team-work does not necessarily spurt group efforts.” Thus. A simple phenomenon of social loafing may be observed in a group assignment to students during their study. .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. other factors remaining the same. 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. The concept of synergy is quite popular in strategic management and it is defined as follows: “Synergy is the process of putting two or more elements together to achieve a sum total greater than the sum total of individual elements separately. etc. For example. students find that one or two students do not put their weight for the completion of the project. Social Loafing Social loafing is antithesis of synergy in team-work which suggests that people working together on a common task may actually decrease their individual efforts. in one experiment. that is. fail to perform their assigned tasks. In fact. synergistic effect is not automatic but depends on the complementarity of different elements that are put together and the way they interact among themselves. the team would be effective. 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. 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. 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. This effect can be described as 2+2=5 effect. 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 phenomenon may happen in teams in work organizations too. However.

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

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

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

He has to educate people on the need and importance o change using a variety of methodologies – lectures. internal staff specialists or managers when acting as change agents. The consultant may fulfill a variety of functions. Trainer A change agent needs to be a trainer and educator. presentations. cases and experiential learning etc. According to Curtis Mial: “The Consultant may serve as the exhaust value. Because they are from the outside these individuals an offer can offer an objective perspective often unavailable to insiders. culture. as the break for too quick action. as the radiator absorbing some of the heat of the controversy.9 Role of Change Agents The change agent may play different roles according to the need of organization development . The trainer role is most widely and intensively used at all stages of a change project: unfreezing. with members from each of the conflicting groups. 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. and personnel. operating procedures. may be more thoughtful (and possibly cautious) because they to live with the consequences of their actions.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. but one thing he/she is not the driver”. enabling the client to let off steam: as the ignition to spark action. In contrast. however. or as fog lamp when the future is hazy. For major change efforts.Subgroups. can now be created for further diagnosis and to begin to formulate possible alternative actions that will improve relations. as the accelerator to build up momentum. Outside consultants. films. group discussions. . or outside consultants. changing (intervening) and refreezing. as the shock absorber when the going is rough. 4. are disadvantaged because they usually have an inadequate understanding of the organization’s history. internal management often will hire the services or outside consultants to provide advice and assistance. role-plays and instruments. 4.8 Change Agents Change agents: Can be managers or nonmanagers. employees of the organization.

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

Refer section 4.1 Introduction Objectives 5. 4. Assumptions.3. Explain Change agents and discuss the role of change agents in detail.2 3.12 Answers to SAQs and TQs SAQs: 1. Beliefs in Organization Development Unit-05-Values. Data collection 2.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . and Beliefs in Organization Development Structure: 5. Social loafing Answers to TQs: 1. Assumptions. Refer section 4.4 2. Refer section 4. Refer section 4. What is team-building? What are the stages of life cycle of a team? 4.6 4. 3.2 Definitions and . Blake and Mouton. MU0002-Unit-05-Values.

5 Implications of OD Values and Assumptions 5.7 Terminal Questions 5. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers.4 Early Statements of OD Values and Assumptions 5.6 Summary Self Assessment Questions 5.1 Implications for Dealing with Individuals 5.3 Chronology of Events in Management and Organization Thought 5. assumptions. beliefs and assumptions.2 Definitions A belief is a proposition about how the world works that the individual accepts as true.8 Answers to SAQs and TQs 5.2 Implications for Dealing with Groups 5.5. and beliefs constitutes an integral part of organization development. · State the implications of OD values and assumptions. 5. beliefs and assumptions. · Give the statement of OD values and assumptions.1 Introduction A set of values. Objectives: After studying this unit. shaping the goals and methods of the field and distinguishing OD from other improvement strategies. it is a cognitive fact for the person.5.5. · List the chronology of events of values. you will be able to: · Explain the meaning of values.3 Implications for Designing and Running Organizations 5. and they continue to evolve as the field itself evolves.5. Most of these beliefs were formulated early in the development of the field. .

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

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

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

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

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

One goal of a healthy organization is to develop generally open communication. · Away from maskmanship and game-playing toward authentic behaviour. rather than in a particular role or level of hierarchy. An always relevant change goal is the reduction of inappropriate competition between parts of the organization and the development of a more collaborative condition. presented their view of OD values in a 1969 article. 3.2. · Away from resisting and fearing individual differences toward accepting and utilizing them. · Away from a view of individuals as fixed. sub-units of organizations. · Away from use of status for maintaining power and personal prestige toward use of status for organizationally relevant purposes. · Away from walling off the expression of feelings toward making possible both appropriate expression and effective use. 4. · Away from avoiding facing others with relevant data toward making appropriate confrontation. . Decision-making in a healthy organization is located where the information sources are. · Away from avoidance of negative evaluation of individuals toward confirming them as human beings. They asserted that an important shift in values was occurring and that this shift signaled a more appropriate and accurate view of people in organizations. They listed these “values in transition” as follows: · Away from a view of people as essentially bad toward a view of people as basically good." People affected by a change must be allowed active participation and a sense of ownership in the planning and conduct of the change. not the basis of managerial strategy. Robert Tannenbaum. 6. · Away from distrusting people toward trusting them. director of organization development. a professor and Sheldon Davis. Organizations. mutual trust. · Away from utilizing an individual primarily with reference to his or her job description toward viewing an individual as a whole person. "People support what they help create. Controls are interim measurements. and confidence between and across levels. and individuals continuously manage their affairs against goals. toward seeing them as being in process. 5.

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

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

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

What was the outcome of Hawthorne Experiments? 4.2 2. 2.3 3. Write a note about F. Refer section 5. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. values. beliefs and assumptions. State the assumptions of Theory X and Theory Y. Refer section 5. Taylor 3. Bureaucracy 4.7 Terminal Questions 1.1. 5. F. The concept of –––––––––– was introduced by MaxWeber. Define concepts.3 . W. The outcome of –––––––– was that people were not cogs and organizations were not machines. 4. 2. and assumptions are all –––––––––– facts. __________ is associated with scientific management. beliefs. 3. Values. Refer section 5. Hawthorne experiments 5. Cognitive 2. 3. Taylor’s principles of scientific management. Douglas McGregor Answers to TQs: 1.8 Answers to SAQs and TQs SAQs: 1. 5.W. 5. _______________ gave theory X and theory Y.

3 The Burke-Litwin Model of Organizational Change 6.2.2 Congruence among System Elements 6.3.3. Refer section 5.2 Beyond the Quick Fix 6.4 Open Systems Thinking 6.1 Introduction Objectives 6.3.3 Systems Theory 6.2 Models and Theories of Planned Change 6.2. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.3 Socio-technical Theory and Open Systems Planning 6.2.1 The Nature of Systems 6.1 Kurt Lewin and Friends 6.2.4.3. Refer section 5.3 Copyright © 2009 SMU Powered by Sikkim Manipal University .3 5.4 Porras and Robertson Model of Organizational Change 6.4 Participation and Empowerment .

5 Teams and Teamwork 6. · Explain systems theory. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning.6. art and science which form the knowledge base upon which OD is constructed. · 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. In this discussion. you will be able to: · Explain various models and theories of planned change.7 A Normative – Re-educative Strategy of Changing 6. Here we describe what we believe are the most important underpinnings for the field. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs.6 Parallel Learning Structures 6. Objectives: After studying this unit.1 Introduction This unit describes the foundations of organization development theory and practice. · Explain the terms ‘participation’ and ‘empowerment’.8 Applied Behavioural Science 6. · Realize the importance of teams and teamwork.9 Action Research Self Assessment Questions 6.10 Summary 6. We will examine the following concepts: .11 Terminal Questions 6. · Describe the parallel learning structures.

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

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

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

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

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

Transactional leadership is sufficient for causing first-order change." Transformational leadership embodies inspiration which leads to new heights of performance. management practices. in turn. interventions directed toward mission and strategy. 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. We will do so in several steps. These two concepts come from leadership research which found that some leaders are capable of obtaining extraordinary performance from followers while other leaders are not." Transactional leadership embodies a fair exchange between leader and follower that leads to "normal" performance. Fig. Now let us look at the Burke-Litwin model.1: The Transactional Factors Involved in First – Order Change . and systems cause changes in work unit climate.systems (policies and procedures) result in first-order change. Transformational leadership is required for causing second-order change. which change motivation and. individual and organizational performance. and organization culture result in second-order change. Following figure shows the factors involved in first-order (transactional) change. The model also makes a distinction between transactional and transformational leadership styles. Transactional leaders are "leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements. Transactional leadership is required to make this change in organizational climate. leadership. Changing structure. 6.

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

This model shows how OD interventions can be linked to factors in the work setting. Organizational change occurs only when individuals change their behaviour.Fig. management style. . and rewards will affect organizing arrangements. The premise modeled here is that work setting factors influence organizational members’ cognitions (they learn what is expected. 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.2. OD interventions that focus on goals. which determine organizational performance and individual development. Fig.3: The Burke Litwin Model of Organizational Performance and Change 6.4: Organizational Work-Setting Factors This model is extremely useful for OD practitioners and organizational leaders. which influence on-the job behaviours. social factors. 6. and technology. it is described in a discussion by Porras and Peter Robertson. The basic premise is that OD interventions alter features of the work setting causing changes in individuals’ behaviours. 6. rewarded). The work setting plays a central role in this model and consists of four factors: organizing arrangements. Interventions that focus on job design and work flow design will affect technology. strategies. It is how OD works. and interaction processes will affect social factors. required. For example. Interventions that focus on culture. Following figure shows the work setting in the larger organizational framework. and these behaviour changes occur when elements of the work setting have been modified by OD interventions. according to Porras and Robertson. physical setting.4 Porras and Robertson Model of Organizational Change Jerry Porras and his associates developed a model of how organization development works.

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

in that they permit exchange of information. Each of these three system processes must work well if the system is to be effective and survive. Systems take inputs from the environment in the form of energy. conversion. Here. people. resources. raw material and so on. Every system is delineated by a boundary. They do something to the inputs via throughput. we examine the characteristics of open systems drawing OD expositions by Katz and Kahn and Hanna.6: A System in Interaction with its Environment The law of entropy states that all systems “run down” and disintegrate unless they reverse the entropic process by importing more energy than they use. and characteristics of open systems are well-known. Therefore. studying open systems leads to a good understanding of organizations. or transformation processes that change the inputs. money. the reasons for their existence. and if the environment does not want these outputs. What is inside the boundary is the system. Open systems have purposes and goals. 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. Organizations are open systems. Fig.3.6. and energy between system and environment. information. dynamics. and they export products to the environment in the form of outputs. Boundaries of open systems are permeable. the organization will cease to exist.1 The Nature of Systems The nature. For example. the organization’s purposes will be reflected in its outputs. . A good rule of thumb for drawing the boundary is that more energy exchange occurs within the boundary than across the boundary. All open systems are input-throughput-output mechanisms. and what is outside the boundary is the environment.

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

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

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

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

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

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

Larson and LaFasto found eight characteristics always present: 1) A clear. and set ever-higher goals. Union Pacific Railroad. Organizations using autonomous work groups or self-directed teams devote considerable time and effort to ensure that team members possess the skills to be effective groups. Grid OD and techniques such as role analysis technique. that they achieve synergy. socio-technical systems programs. The net effect is that teams perform at increasingly higher levels. Larson and LaFasto studied a number of high-performance teams. Larson and LaFasto also discovered that the most frequent cause of team failure was letting personal or political agendas take precedence over the clear and elevating team goal. and responsibility charting. heart transplant surgical teams. autonomous. empowered teams are what the best organizations are using right now to outdistance the competition. cross-functional teams.parallel learning structures. . Investigators are discovering why some teams are successful while others are not. people are trained in group dynamics and group problem-solving skills. and the like. All these characteristics are required for superior team performance. and that teamwork becomes more satisfying for team members. When any one feature is lost. to determine the characteristics that make them successful. elevating goal 2) A results-driven structure 3) Competent team members 4) Unified commitment 5) A collaborative climate 6) Standards of excellence 7) External support and recognition Principled leadership. and others. find innovative ways around barriers. role negotiation technique. and individuals are trained as group leaders and group facilitators. Asea Brown Boveri. help each other. the crew of the USS Kitty Hawk. High-performance teams regulate the behaviour of team members. Team-building activities are now a way of life for many organizations. team performance declines. Teams periodically hold team-building meetings. Tom Peters asserts in Liberation Management that cross-functional. including collegiate football national champions. He uses examples from EDS (Electronic Data Systems). These interventions apply to formal work teams as well as startup teams. temporary teams.

If you don’t implement different norms and procedures. parallel structures are a vehicle for learning how to change the system. clear objectives.” Parallel structures help people break free of the normal constraints imposed by the organization. 6. Interestingly. you don’t have a parallel structure. In essence. a steering committee and working groups were used to co-ordinate the employee involvement teams. and then leading the process. normal hierarchical considerations become obsolete for these project teams-you could be the boss of one team. At Ford Motor Company.6 Parallel Learning Structures Parallel learning structures. and acting differently than normally takes place at work. talking. and report to one of your subordinates on another team. engage in genuine inquiry and experimentation. and countless other organizations to demonstrate the ability of small project teams to produce high quality. specially created organizational structures for planning and guiding change programs. and high accountability drive these project teams to outperform traditional organization structures on every measurable dimension. especially when the change involves a fundamental shift in the organization’s methods of work and/or culture. What’s important is that people act in a way that promotes learning and adaptation. High-performance organizations often use parallel structures to co-ordinate self-directed teams. 6.7 A Normative – Re-educative Strategy of Changing . and employees. projects will be performed by 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. flexible response. Parallel learning structures are a foundation of OD because they are prevalent in so many different OD programs. deciding. 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. superior customer service. High responsibility. Considerable experimentation with collateral organizations occurred in the 1970s and 1980s. managers. Bushe and Shani say: “The key thing about parallel structures is that they create a bounded space and time for thinking. It isn’t the supplemental structure that’s important. and continuous learning. and initiate needed changes. Projects are the work of the future.Titeflex. constitute another important foundation of organization development.” The purpose of the collateral organization is to deal with "ill-structured" problems the formal organization is unable to resolve. Dale had introduced this concept in 1974 under the label collateral organization and defined it as “a supplemental organization coexisting with the usual formal organization. Parallel learning structures are often the best way to initiate change in large bureaucratic organizations. Most socio-technical systems redesign efforts and open systems planning programs use parallel structures.

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

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

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

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

Ralph Kilmann 3.2 Characteristics of Organization Culture Culture and . What are the features of systems theory of organizational development? 5.1 2. Refer section 6.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . Synergy Answers to TQs: 1. MU0002-Unit-07-Organization Climate Unit-07-Organization Culture and Climate Structure: 7. Transactional change 4.4. “Work teams are building blocks of organizational development.2. System 5. Refer section 6. 6.1 Introduction Objectives 7.” Comment on this statement.3 4.Refer section 6. Unfreezing 2.2 3. Refer section 6. Refer section 6.2.12 Answers to SAQs and TQs SAQs: 1.2.3 5.

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

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

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

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

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

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

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

intervening variables and end-result variables and there exists interrelationship among these variables. Artifacts 2. Refer section 7. Briefly explain different types of organizational culture. system-resource approach. Factors in organizational effectiveness include casual variables.8 Answers to SAQs and TQs SAQs: 1. Finally. and strategic constituencies approach.3 3. Organizational effectiveness can be measured through various approaches.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . 7. effectiveness through adaptive-coping cycle has been discussed.Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. Discuss the development and change of organizational development. Causal variables Answers to TQs: 1.7 Terminal Questions 1. 7. Explain the characteristics of organization culture.2 2. Organizations to be successful must be efficient and effective. behavioural approach. 2. Market 3. Effectiveness of an organization can be increased through economic man approach and administrative man approach. . 3. Refer section 7. Refer section 7.goal approach.

In this unit.” Organization development has been criticized for not taking into account power in organizations.10 Terminal Questions 8.7 Operating in a Political Environment 8. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics. we examine power and politics in relation to organization development.5 Organizational Politics Defined and Explored 8. and for change to occur in an organization.3 Two Faces of Power 8. power must be exercised.9 Summary 8.8 Acquiring and using Power Skills Self Assessment Questions 8.1 Introduction Politics and Power and politics.11 Answers to SAQs and TQs 8.4 Theories about the Sources of Social Power 8.MU0002-Unit-08Power.Power.2 Power Defined and Explored 8. That criticism was essentially correct for many years although it is less valid . indisputable facts of organizational life.1 Introduction Objectives 8. As Warner Burke observes: "Organization development signifies change. must be understood if one is to be effective in organizations. Politics and Organization Development Structure: 8.6 The Role of Power and Politics in the Practice of OD 8. Organization Development Unit-08.

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

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

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

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

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

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

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

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

The principle is simple but powerful: know your legitimate business and stick to it. We believe the legitimate role of the OD practitioner is that of facilitator. and the characteristics and behaviors of powerholders." and "going around the formal system. dealing directly with powerholders and decision makers. Earlier we stated that the OD practitioner should learn as much as possible about bargaining.1: Power Base and Power Strategy Connection Individual Power Bases Knowledge Strategies for Success Playing It Straight . Illegitimate behavior causes others to try to exert greater control over the situation. and personality characteristics. Table 8.8 Acquiring and Using Power Skills The OD practitioner is neither power activist nor power broker. but these give the flavor of the issues one must consider when operating in a political environment. not by getting involved in the answers. Three successful power strategies are "playing it straight. 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.Rule Six: Mind your own business. which is to be an expert on process. not content. One carries out such a strategy by participating in alliances and coalitions. We could propose more rules of thumb. yet legitimate means of acquiring power. catalyst. thereby greatly expanding practitioner influence. Rule Seven: Mind your own business because to do otherwise is to invite political trouble. and using contacts for information. while at the same time increasing his or her usefulness to the organization’s powerholders. others’ support. and educator. but that does not mean practitioners must be naive or incompetent in the political arena. A subtle phenomenon is involved here: when people engage in illegitimate behavior. such behavior is often interpreted as politically motivated. Networking is recognized as a potent. individual power derives from knowledge. Illegitimate behavior encroaches on others’ legitimate "turf." which arouses defensive actions. Abiding by this rule keeps the consultant from becoming entangled in politics. not power activist or power broker. the strategy and tactics of influence. Attention to these rules can save OD practitioners time and energy that can be more profitably invested in the OD program. negotiations the nature of power and politics. 8. As shown in the figure." "using social networks. problem solver. viable." OD practitioners have typically pursued a "playing it straight" strategy as their sole means of exerting power. The authors propose adding the "using social networks" strategy to their repertoires.

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

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

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

MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9. Referent power 4. Identify the bases of individual power and the respective strategies for their success. Refer section 8.2. 5. 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Power 2.1 Introduction .11 Answers to SAQs and TQs SAQs: 1. Harold Lasswell 5. Refer section 8.5 4. 3. McClelland 3.4 3. Explain the role of power and politics in the practice of OD. Refer section 8. Describe briefly various theories of power. Refer section 8. Define organization politics.6 5. Personality Answers to TQs: 1.Refer section 8.2 2. 8.

Objectives: .6 Quality of Work Life Projects 9.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. One important intervention technique is Technostructural interventions because these are related to technical and structural issues such as how to divide labour and how to coordinate department which is related to Restructuring organization. These programs are derived from careful diagnosis.Objectives 9.3 Socio Technical Systems 9. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design.4 Management By Objectives 9. Nothing is permanent except change because change is permanently changing.2 Meaning and Definitions 9. organizational problems may repeat.11 Terminal Questions 9.9 Reengineering Self Assessment Questions 9.10 Summary 9.8 Total Quality Management 9. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future.7 Parallel Learning Structures 9.5 Quality Circles 9.12 Answers to SAQs and TQs 9. In this dynamic and fluid environment. These interventions vary from standardized program that have been developed and sometimes tailored program. An organization development intervention is a sequence of activities. actions. events intended to help an organization improve its performance and effectiveness. These methods are receiving increasing attention in Organization Development.

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

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

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

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

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

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

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

It consists of small group of employees who meet voluntarily to identify and solve productivity problems.5 4. Discuss Socio Technical Systems? 2. Write a short note on Total Quality Management.Refer section 9. provides relevant information to all employees.11 Terminal Questions 1. Quality circle Answers to TQs: 1. ties reward to performance and increase workers knowledge and skills through extensive training. Refer section 9. 9. Refer section 9.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .circle represents a participative approach to employee involvement in problem solving and productivity improvement. Explain Management By Objectives? 4. Refer section 9. It is also called continuous quality improvement.3 2.2 3. 9.12 Answers to SAQs and TQS SAQs: 1. TQM pushes decision making power downwards in the organization. . What are the advantages of structural interventions? 3. Drucker 3. Intervention 2.

2 Nature of Change 10. organizational problems may repeat.8 Terminal Questions 10.5 Impact of Change on the Future Manager 10. Objectives: .7 Summary 10. 10. In this dynamic and fluid environment. cope with the ongoing changes successfully in the first instance. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented).9 Answers to SAQs and TQs 10.3 Resistance to Change 10.6 Methods of Reducing Resistance to Change. Hence. and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other. Nothing is permanent except change because change is permanently changing. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future.1 Introduction Objectives 10. Self Assessment Questions 10.1 Introduction Change in Organizations are increasingly realizing the fact that change is the price of the survival.4 Causes for Resistance to Change.MU0002-Unit-10-Managing Organization Development Unit-10-Managing Change in Organization Development Structure: 10.

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

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

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

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

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

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

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

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

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

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

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

Refer section 10. both at the formal and informal levels.4 3. at the level of individual and at the level of group. Organizational change is the alteration of work environment in an organization. Problem of overcoming resistance to change can be handled at two levels.2 2. Psychological factors 3.6. Reference: . Refer section 10. It is easiest for management to deal with resistance when it is overt and immediate. Why do organizations resist change? 3. For instance. group resistance and vested interests. Explain the nature of change? 2. Economic factors. It implies a new equilibrium between different components of the organization.8 Terminal Questions 1. social factors. through group dynamics. Resistance can be overt. threatening to go on strike. implicit.10. Organizational change 2. or the like. that is. or deferred. 10. 10. engaging in a work showdown.7 Summary Change is inevitable. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. Participation Answers to TQs: 1. psychological factors. Refer section 10. a change is proposed and employees quickly respond by voicing complaints. Discuss the methods of reducing resistance to change.9 Answers to SAQs and TQS SAQs: 1. immediate. People tend to resist many types of changes because new habits or sacrifices are required. Changes may be influenced by external and internal factors.

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