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Unit-01-Introduction to Management Structure: 1.1 Introduction Objectives 1.2 Definitions of Management 1.3 Characteristics of Management 1.4 Scope and Levels of Management 1.5 Importance of Management 1.6 Role of Management 1.7 Administration and Management Self Assessment Questions 1.8 Summary 1.9 Terminal Questions 1.10 Answers to SAQs and TQs 1.1 Introduction Management is a global need. It is essential to every individual, a family, educational institution, hospital, religious organizations, team of players, a government, military systems, cultural body, urban centers and business enterprises. No individual can satisfy all his needs by himself. Men should join together and accomplish goals through co-operation. Whenever, there is an organized group of people working towards a common goal, some type of management is needed. A business enterprise must be directed and controlled by a group of people to achieve its goals. The resources of money, manpower, material and technology will be waste unless they are out to work in a co-ordinated manner. It is the ‘management’ which uses the available resources in such a manner that a business enterprise is able to earn ‘surplus’ to meet the needs of growth and expansion. Management is required to plan, organize, co-
ordinate and control the affairs of a business concern. It brings together all resources and motivates people to achieve the objectives of a business enterprise. Objectives: After studying this unit, you will be able to: · Define management. · Explain the characteristics of management. · Differentiate between management and administration. · State the principles of management. · Explain the roles of managers. · Explain managerial skills. 1.2 Definitions of Management Management may be defined in many different ways. Many eminent authors on the subject have defined the term “management”. Some of these definitions are reproduced below: According to Lawerence A. Appley – “Management is the development of people and not the direction of things.” In the words of George R. Terry – “Management is a distinct process consisting of planning, organizing, actuating and controlling performed to determine and accomplish the objectives by the use of people and resources.” According to James L. Lundy – “Management is principally the task of planning, co-ordinating, motivating and controlling the efforts of others towards a specific objective.” In the words of Henry Fayol – “To manage is to forecast and to plan, to organize, to command, to co-ordinate and to control.” According to Peter F. Drucker – “Management is a multi-purpose organ that manages a business and managers and manages worker and work”. In the words of Koontz and O’Donnel – “Management is defined as the creation and maintenance of an internal environment in an enterprise where individuals working together in groups can perform efficiently and effectively towards the attainment of group goals”.
According to Newman, Summer and Warren – “The job of management is to make co-operative endeavor to function properly. A Manager is one who gets things done by working with people and other resources.” From the definitions quoted above, it is clear that “management” is a technique of extracting work from others in an integrated and co-ordinated manner for realizing the specific objectives through productive use of material resources. Mobilizing the physical, human and financial resources and planning their utilization for business operations in such a manner as to reach the defined goals can be referred to as “management”. If the views of the various authorities are combined, management could be defined as a “distinct ongoing process of allocating inputs of an organization (human and economic resources) by typical managerial functions (planning, organizing, directing and controlling) for the purpose of achieving stated objectives, namelyoutput of goods and services desired by its customers (environment). In the process, work is performed with and through personnel of the organization in an ever-changing business environment.” From the above, it is clear that management refers to the process of getting activities completed efficiently and effectively with and through other people. The process represents the functions or primary activities engaged in by managers. These functions are typically labeled planning, organizing, leading, and controlling. Efficiency is a vital part of management. It refers to the relationship between inputs and outputs. If you can get more output from the given inputs, you have increased efficiency. Similarly, if you can get the same output from less input, you also have increased efficiency. Since managers deal with input resources that are scarce-mainly people, money and equipment-they are concerned with the efficient use of these resources. Management, therefore, is concerned with minimizing resource costs. Efficiency is often referred to as “doing things right”. However, it is not enough simply to be efficient. Management is also concerned with getting activities completed; i.e. it seeks effectiveness. When managers achieve their organization’s goals, we say they are effective. Effectiveness can be described as “doing the right things”. So efficiency is concerned with means and effectiveness with ends. Efficiency and effectiveness are interrelated. For instance, it is easier to be effective if one ignores efficiency. Timex could produce more accurate and attractive watches if it disregarded labour and material input costs. Some federal government agencies have been criticized regularly on the grounds that they are reasonably effective but extremely inefficient; that is, they get their jobs done but at a very high cost. Management is concerned, then, not only with getting activities completed (effectiveness), but also with doing so as efficiently as possible. Can organization be efficient and yet not effective? Yes, by doing the wrong things well. Many colleges have become highly efficient in processing students. By using computer-assisted learning, large lecture classes, and heavy reliance on part-time faculty, administrators have significantly cut the cost of educating each student. Yet students, alumni, and accrediting agencies have criticized some of these colleges for failing to educate their students properly. Of
Its presence is evidenced by the result of its efforts-orderliness. They must have the necessary ability and skills to get work accomplished through the efforts of others. Results through Others: The managers cannot do everything themselves. The success of management is measured by the extent to which the organizational goals are achieved. These factors do not by themselves ensure production. high efficiency is associated more typically with high effectiveness. buoyant spirit and adequate work output. It co-ordinates the efforts of workers to achieve the goals of the organization. organizing. although they can’t observe it during operation. experience and management principles for getting the results from the workers by the use of non-human resources.course. All these resources are made available to those who manage. Thus. informed employees. 5. staffing. 4. 3.3 Characteristics of Management Management is a distinct activity having the following salient features or characteristics: 1. Goal-oriented: Management is a purposeful activity. 1. Distinct Process: Management is a distinct process consisting of such functions as planning. labour. Thus. 6. . Managers also seek to harmonize the individuals’ goals with the organizational goals for the smooth working of the organization. the process of management involves decision-making and putting of decisions into practice. 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. It is the force which assembles and integrates other resources. namely. feeling of management is result-oriented. It is imperative that the organizational goals must be well-defined and properly understood by the mangers at various levels. management is an essential ingredient of an organization. People often remark of the effectiveness (or ineffectiveness) of management on the basis of the end results. they require the catalyst of management to produce goods and services required by the society. directing and controlling. One may not see with the naked eyes the functioning of management but its results are apparently known. And poor management is most often due to both inefficiency and ineffectiveness or to effectiveness achieved through inefficiency. In essence. It is the most critical input in the success of any organized group activity. 2. These functions are so interwoven that it is not possible to lay down exactly the sequence of various functions or their relative significance. Managers apply knowledge. capital and materials. They must motivate the subordinates for the accomplishment of the tasks assigned to them. labour and capital. Intangible Force: Management has been called an unseen force.
people . materials. machinery and methods or ways of doing things) depends to a great extent on the quality of management. According to Newman. The application of these concepts.7. management is the rule-making and rule-enforcing body. a hierarchy of command and control. government and hospital. Similarly. Sociology and Operations Research have also contributed to the development of management science. · Management as a system of authority According to Herbison and Myers. Much of the management literature is the result of association of these disciplines. principles and techniques which have wide applications. System of Authority: Management as a team of managers represents a system of authority. and (iii) a class or elite.4 Scope of Management The scope of management is very wide. · Management as an economic resource Management is one of the factors of production along with land. on-going concern. Generally. 8. manpower. 9. labour and capital. Basically. In other words. education. discipline) taking the help of so many other disciplines such as Engineering. Universal Application: Management is universal in character. productivity orientation drew its inspiration from Industrial Engineering and human relations orientation from Psychology. Sociology and Psychology. Since the skills acquired by a manager are his personal possession. as we move down in the managerial hierarchy. Authority enables the managers to perform their functions effectively. the degree of authority gets gradually reduced. A Science and an Art: Management has an organized body of knowledge consisting of welldefined concepts. military. the effective use of the five M’s of management (money. useful. Managers at different levels possess varying degrees of authority. 1. The principles and techniques of management are equally applicable in the fields of business. materials. Multi-disciplinary Subject: Management has grown as a field of study (i. 10. (ii) a system of authority. money and machines into a productive. 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. Anthropology. how effectively and economically the five M’s are combined together to produce desired results. Henri Fayol suggested that principles of management would apply more or less in every situation. In modern organizations. it refers to three distinct ideas. that is. According to Herbision and Myers. principles and techniques requires specialized knowledge and skills on the part of the manager. So it is treated as a science.e. For instance. management is required to covert the disorganized resources of men. management may be understood as (i) an economic resource. It is bound together by a web of relationships between superiors and subordinates. management is viewed as an art.
) interprets and explains the policies framed by the top management. its Chairman. The managerial class has become very important in modern organizations owing to its contribution to business success. day-to-day matters. Levels of Management An enterprise may have different levels of management. planning and setting up of standards.are bound by authority relationships. Managing Director. the lower level of management). or the Chief Executive. and the range of production. or. the upper level of management) and (ii) operating management (i. But in actual practice. or the General Manager or Executive Committee having key officers.. ranks. Board of Directors. Managers working at top levels enjoy more authority than people working at lower levels. For instance. · Management as a class or elite Sociologists view management as a distinct class in society having its own value system. The levels of management depend upon its size. As a separate group. Operative management is concerned with the “doing” function such as implementation of policies. (i) administrative management (i. but as head of wages and salary department. Top management determines objectives and provides direction to enterprise activities. Levels of management refer to a line of demarcation between various managerial positions in an enterprise. Considering the hierarchy of authority and responsibility. Instructions and decisions downward and carry the problem and suggestions upward. technical facilities.e. 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. personnel manager etc. wage and salary director of a company may assist in fixing wages and salary structure as a member of the Board of Directors. . finance manager. They transmit orders. The real significance of levels is that they explain authority relationships in an organization. Middle management (departmental heads like work manage. We generally come across two broad levels of management. All the managers form the chief executive to the first line supervisors are collectively addressed as ‘Management’ which refers to the group. his job is to see that the decisions are implemented. the term management refers to the group of individuals occupying managerial positions. one can identify three levels of management namely: i) Top management of a company consists of owners/shareholders. Lower management (first line supervisors) is concerned with routine.e. Administrative management is concerned with “thinking” functions such as laying down policy.. viz. and directing the operations to attain the objectives of the enterprise.
and Divisional Sectional Officers working under these Functional Heads. It serves as an essential link between the top management and the lower level or operative management. Without them the top management’s plans and ambitious expectations will not be fruitfully realized. f) To provide overall leadership to the enterprise. materials. 2. etc. Production Manager. Top management: Top management is the ultimate source of authority and it lays down goals. etc. e) To exercise effective control of the operations.. It is also described as the policy-making group responsible for the overall direction and success of all company activities. b) To interpret the policies chalked out by top management. machines and methods to put the plans into action. They provide the guidance and the structure for a purposeful enterprise. Financial Controller. They devote more time on the organization and motivation functions of management. d) To assemble the resources of money. Marketing Manager. Purchase Manager. e) To assign activities. The important functions of top management include: a) To establish the objectives or goals of the enterprise. Middle management: The job of middle management is to implement the policies and plans framed by the top management. d) To recruit and select suitable operative and supervisory staff. Supervisors. duties and responsibilities for timely implementation of the plans.ii) Middle management of a company consists of heads of functional departments namely. It devotes more time on planning and co-ordinating functions. c) To set up an organizational framework to conduct the operations as per plans. They are responsible to the top management for the functioning of their department. The following are the main functions of middle management: a) To establish the objective or goals of the enterprise. iii) Lower level or operative management of a company consists of Superintendents. 1. policies and plans for the enterprise. It is accountable to the owners of the business of the overall management. Foremen. c) To prepare the organizational set up in their own departments for fulfilling the objectives implied in various business policies. men. . b) To make policies and frame plans to attain the objectives laid.
It is the activating force that gets things done through people. 3. They are also involved in the process of decisions-making. management is the dynamic lift-giving element in every organization. the working of an enterprise will become random and haphazard in nature. g) To motivate personnel to attain higher productivity and to reward them properly. machines. Without management. supervisors. the resources of production remain resources and never become production. Management makes group effort more effective. k) To make suitable recommendations to the top management for the better execution of plans and policies. They are in direct touch with the rank and file or workers. Lower or operative management: It is placed at the bottom of the hierarchy of management. It consists of foreman. The importance of management can be understood from the following points. i) To collect reports and information on performance in their departments. 1. accounts officers and so on. Employees feel a sense of security when they find a body of individual’s working day and night for the continued growth of an organization. They interpret and divide the plans of the management into short-range operating plans. They devote more time in the supervision of the workers. j) To report to top management. evaluate their performance and report to the middle level management.f) To compile all the instructions and issue them to supervisors under their control. In its absence. They pass on the instructions of the middle management to workers. They allot various jobs to the workers. Management creates teamwork and .5 Importance of Management According to Drucker. sales officers. (ii) Effective leadership and motivation: In the absence of management. A right climate is created for workers to put in their best and show superior performance. (i) Optimum use of resources: Management ensures optimum utilization of resources by attempting to avoid wastage of all kinds. They have to get the work done through the workers. It enables employees to move cooperatively and achieve goals in a coordinated manner. and actual operations are the responsibility of this level of management. It helps in putting the resources to the best advantage within the limitations set by the organization and its environment. an organization is merely a collection of men. They are concerned with direction and control functions of management. Their authority and responsibility is limited. h) To co-operate with the other departments for ensuring a smooth functioning of the entire organization. money and material.
An enterprise has to take note of these changes and adapt itself quickly. all these help in realizing goals with maximum efficiency. With a view to realize the predetermined goals-managers plan carefully. Successful managers are the ones who anticipate and adjust to changing circumstances rather than being passively swept along or caught unprepared. To this end. Industrial peace is an essential requirement for increasing productivity. iii) The establishment of a representative organization with professiona-lizing as its goal. skills.motivates employees to work harder and better by providing necessary guidance. government policy. competition. hire competent people and provide necessary guidance. Management as a profession By a professional manager. Managers help an organization by anticipating these changes (carefull planning. According to McFarland. methods. manager tries to strike a happy balance between the demands of employees and organizational requirements. often threaten the survival of a firm. (iii) Establishers sound industrial relations: Management minimizes industrial disputes and contributes to sound industrial relations in an undertaking. procedures and reward systems. Thus unnecessary deviations. (vi) Improves standard of living : Management improves the standard of living of people by (a) using scarce resources efficiently and turning out profits.. (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. and specialized knowledge. techniques. 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. They try to put everything on the right tract. (v) Change and growth: Changes in technology. Failure to take note of customer’s needs regarding full efficiently has spelt doom for ‘Ideal java’ in the two-wheeler market in India. (iv) Achievement of goals: Management plays an important role in the achievement of objectives of an organization. Management is goal-oriented. Objective can be achieved only when the human and non-human resources are combined in a proper way. (b) Ensuring the survival of the firm in the face of continued changes. In the final analysis. etc. forecasting combined with efficient use of resources) and taking appropriate steps. Overlapping efforts and waste motions are avoided. Organize the resources properly. a profession possesses the following characteristics: i) A body of principles. ii) Formalized methods of acquiring training and experience. They initiate prompt actions whenever workers express dissatisfaction over organizational rules. . counseling and effective leadership.
In fact. It may be concluded from the above discussion that management is a science. and the university departments of management offer a variety of short-term management training programmes. Some individual business organizations. There is no ethical code of conduct for managers as for doctors and lawyers.S. There are a number of representative organizations of management practitioners almost in all countries such as the All India Management Association in India. identifiable discipline. do not seem to adhere to the principle of “service above self”.A. As a social science. the Indian Institute of Management. unpatterned. Mintberz found that his managers engaged in a large number of varied. What he discovered challenged several long-held notions about the manager’s job. There was little time for reflective thinking because the managers encountered . Management is a profession to the extent it fulfils the above conditions.. bribing public officials to gain favours. Management does not fulfill the last two requirements of a profession. Management is also a profession in the sense that formalized methods of training is available to those who desire to be managers. and v) The charging of fees based on the nature of services. and it is distinct. It has also developed a vast number of tools and techniques. managers in general. etc. However. an art as well as a profession. 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 Development Institute. management is not as exact as natural sciences. sabotaging trade unions. A number of organizations such as the Administrative Staff College of India. However. Henry Mintzberg did a careful study of five chief executives at work. 1. For instance. a management degree is not a pre-requisite to become a manager. It is a profession in the sense that there is a systematized body of management. none of them has the professionalizing of the management as its goal. Furthermore. in contrast to the predominant views at the time that managers were reflective thinkers who carefully and systematically processed information before making decisions. however. Management partially fulfils the third characteristic of profession. the All India Management Association. But unlike medicine or law. We have a number of institutes of management and university departments of management which provide formal education in this field. manipulating prices and markets are by no means uncommon management practices. Indeed such mobile managers are regarded as more progressive and modern than others.iv) The formation of ethical codes for the guidance of conduct. the American Management Association in U. and it is not as fully a profession as medicine and law. Training facilities are provided in most companies by their training divisions.6 Role of Management In the late 1960s. little regard is paid to the elevation of service over the desire for monetary compensation is evident by switching of jobs by managers. and short-duration activities.
what competitors may be planning. he or she has an outside liaison relationship. and the like. motivating. training. When the president of a college hands out diplomas at commencement or a factory supervisor gives a group of high school students a tour of the plant. The sales manager who obtains information from the human resources manager in his or her same company has an internal liaison relationship. These sources are individuals or groups outside the manager’s unit. they do so by reading magazines and talking with others to learn of changes in the public’s tastes. These ten roles can be grouped as those primarily concerned with interpersonal relationships. and may be inside or outside the organization. activities that involve responsible for staffing. The third role within the interpersonal grouping is the liaison role. Typically.1: Mintzberg’s Managerial Roles Role Interpersonal Figurehead Description Identifiable Activities Leader Symbolic head. and associated duties. When they represent the organisation to outsiders. the transfer of information. obliged to Greeting visitors. training. When that sales manager confers with other sales executives through a marketing trade association. he or she is acting in a figurehead role. . signing perform a number of routine legal documents. and disciplining employees. Mintzberg provided a categorization scheme for defining what managers do based on actual managers on the job. to some degree. Interpersonal Roles: All managers are required to perform duties that are ceremonial and symbolic in nature – interpersonal roles. All managers have a role as a leader.constant interruptions. This is the disseminator role. manages also perform a spokesperson role. duties of a legal or social nature. fulfill informational roles-receiving and collecting information from organizations and institutions outside their own. Mintzberg concluded that managers perform ten different but highly interrelated roles. But in addition to these insights. Managers also act as a conduit to transmit information to organizational members. Informational Roles: All managers. Half of these managers’ activities lasted less than nine minutes each. and decision-making. Mintzberg described this activity as contacting external sources who provide the manager with information. Responsible for the motivation Performing virtually all and activation of subordinates. This role includes hiring. Mintzberg called this the monitor role. Table 1. subordinates. The term ‘management roles’ refers to specific categories of managerial behaviour.
emerges as nerve center of internal and external information about the organization. Transmits information to Holding board meetings. outsiders on organization’s giving information of the plans. activities that involve outsiders. etc. requesting of organizational resources of authorization. Transmits information received Holding informational from outsides or from other meetings. Seeks and receives wide variety Reading periodicals and of special information (much of reports. Searches organization and its Organizing strategy and environment for opportunities review sessions to and initiates “improvement develop new programs. Responsible for corrective Organizing strategy and action when organization faces review sessions that important. results. performing all kinds – in effect. supervises design of certain projects as well. projects” to bring about change. policies. understanding of organization and environment. making phone subordinates to members of calls to relay information. the organization – some information is factual. maintaining it current) to develop thorough personal contacts. some involves interpretation and integration of diverse value positions of organizational influencers. performing other favors and information.Liaison Maintains self-developed Acknowledging mail. media. actions. unexpected involve disturbances and disturbances crises Responsible for the allocation Scheduling. network of outside contacts doing external board and informers who provide work.. serves as expert on organization’s industry. the making any activity that involves or approval of all significant budgeting and the Informational Monitor Disseminator Spokesperson Decisional Entrepreneur Disturbance handler Resource allocator .
liaison. As disturbance handlers. As resource allocators. research by Robert L. are heavily involved in technical aspects of the organization’s operations. Last. However. He also found that the relative importance of these skills varied according to the manager’s level within the organization. computers. Technical skills include knowledge of and proficiency in a certain specialized field. the roles of disseminator. Reprinted by permission of Harper & Row. the leader role is more important for lowerlevel managers than it is for either middle-or-top-level managers. Mintzberg identified four decisional roles which revolve around the making of choices. managers take corrective action in response to previously unforeseen problems. managers are responsible for allocating human. 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. 1973). and conceptual. Managerial Skills As you can see from the preceding discussion. Managers need certain skills to perform the duties and activities associated with being a manager. The evidence generally supports the idea that managers – regardless of the type of organization or level in the organization-perform similar roles. physical and monetary resources. or manufacturing. negotiations. the emphasis that managers give to the various roles seems to change with hierarchical level. During the early 1970. Decisional Roles: Finally. As entrepreneurs. figurehead. as well as many middle managers. pp 93-94 Copyright Ó 1973 by Hency Mintzberg. Source: Henry Mintzberg. Conversely. human. such as engineering. a manager’s job is varied and complex. Responsible for representing Participating in union the organization at major contract negotiations. Negotiator programming of subordinates work. and spokesperson are more important at the higher levels of the organization than at the lower ones. Specifically. managers perform as negotiators when they discuss and bargain with other groups to gain advantages for their own units. managers initiate and oversee new projects that will improve their organization’s performance.organizational decisions. Technical Skills: First-line managers. negotiator. The Nature of Managerial Work (New York: Harper & Row. For example. Inc. an accounts payable manager must be proficient in accounting rules and standardized . Publishers. finance. Katz found that managers need three essential skills or competencies: technical.
lead. In fact. Administration is a higher level function: . Some writers do not see any difference between the two terms. Although technical skills become less important as manager moves into higher levels of management. 1. and all managers are involved in making decisions. 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. Floerence and Tead. administration is a higher level function. These types of conceptual skills are needed by all managers at all levels but become more important as they move up the organizational hierarchy. it remains just as important at the top levels of management as it is at the lower levels. These abilities are essential to effective decision-making. while others maintain that administration and management are two different functions. But some English authors like Brech are of the opinion that management is a wider term including administration. etc. even top managers need some proficiency in the organization’s speciality. Since managers deal directly with people. Managers with good human skills can get the best out of their people. According to them. motivate. They know how to communicate. this skill is crucial. and inspire enthusiasm and trust. Human Skills: The ability to work well with other people both individually and in a group is a human skill. ii) Management is a generic term and includes administration. Conceptual Skills: Managers also must have the ability to think and to conceptualize about abstract situations. iii) There is no distinction between the terms ‘management’ and ‘administration’ and they are used interchangeably. This controversy is discussed as under in three heads: i) Administration is concerned with the determination of policies and management with the implementation of policies.7 Administration and Management The use of two terms ‘management’ and ‘administration’ has been a controversial issue in the management literature. Thus. Those who held management and administration distinct include Oliver Sheldon.forms so that she can resolve problems and answer questions that her accounts payable clerks might encounter. management is a lower-level function and is concerned primarily with the execution of policies laid down by administration. Spriegal and Lansburg.
4. 6. It is a execution of decisions. i.. 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. operative workforce for the execution of plans. Environment Administration has direct Management is mainly interaction with external concerned with internal environment of business and forces. 5. Spriegel and Walter. Status Administration refers to Management is relevant higher levels of management. policies. Direction of It is concerned with leading It is concerned with Human Resources and motivation of middle leading and motivation of level executives. plans and policies through and with others. environmental forces.Administration refers to policy-making. objectives. Managers are Administrators are basically concerned mainly with concerned with planning and organisation and direction control. at lower levels of management.2: Distinction between Administration and Management: Basic 1. Table 1. Thus. administration involves broad policy-making and management involves the execution of policies laid down by the administration. 2. 7. Nature Administration relates to the Management relates to decision-making. Usage of Term The term ‘administration’ is The term ‘management’ is often associated with widely used in business . of human resources. making strategic plans to deal plans and policies of the effectively with the organisation. 3. management as an executive function which is primarily concerned with carrying out of the broad policies laid down by the administration.Administration determines Management decides who Making what is to be done and when shall implement the it is to be done. Scope It is concerned with It is concerned with the determination of major implementation of objectives and policies. on the other hand. Administration is a determinative function. 8. of the organisation.e. whereas management refers to execution of policies laid down by administration. is a doing function. This view is held by Tead. Meaning Administration Management Administration is concerned Management means with the formulation of getting the work done objectives. Decision. It thinking function. administrative decisions.
10 Answers to SAQs and TQs SAQs: 1. Management creates ________ and motivates employees to work harder and better by providing necessary guidance. materials. organisations. Money. 2. counseling and effective leadership. Managers perform different roles to discharge their responsibilities. Self Assessment Questions in the 1. ___________. Human skills are important at all managerial levels. Bring out the difference between Administration and Management. 1. __________is principally the task of planning. Define management. Still management is not completely a profession. 2. 1. 3. It is the management which transforms physical resources of an organization into productive resources. manpower 3. Discuss the importance of management. Lower level managers require and use a greater degree of technical skill and managers at higher levels use a greater degree of conceptual skill. 1. co-ordinating. Five M’s of management (________. Management is largely found at the middle and lower levels and administration is found at the higher levels. teamwork . middle and lower. _________. There are three levels of management-top.8 Summary Management is concerned with getting things done through other people. 3.government offices.9 Terminal Questions 1. public organisations sector and non-business private sector. machinery and methods or ways of doing things) depends to a great extent on the quality of management. Management 2. motivating and controlling the efforts of others towards a specific objective. Explain its characteristics.
Refer section 1.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .5 Staffing 2.7 Motivating Self Assessment Questions 2. Refer section 1.10 Answers to SAQs and TQs .4 Organizing 2.5 3. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.2 Process of Management 2.Answers to TQs: 1.6 Directing 2.8 Summary 2.2. Refer section 1.9 Terminal Questions 2.1.3 Planning 2.3 2.1 Introduction Objectives 2.
2 Management Process Peter Drucker said: “Management is doing things right. Organizing.2. Controlling However. leadership is doing the right things“. Even . One can also think of management functionally. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent. 2. you will be able to: · Define Management process. Coordinating 5. It is difficult to say where objectives end and policies begin. in recent time. as the action of measuring a quantity on a regular basis and of adjusting some initial plan. Management is about accomplishing a goal efficiently. management functions have been regrouped into four categories. leadership is about setting the desirable goals. · Explain Planning. Objectives: After this studying this unit. · Explain different functions of management Process. You might well ask what the need for a policy is when objectives are already defined. Planning 2. the two are not quite the same. Through leadership and management often overlap. Staffing. Organizing 3.1 Introduction Follett (1933) defined management as "the art of getting things done through people”. There is a degree of overlap between the two. Management functions are as follows (Fayol. Commanding 4. 1949): 1. Motivating. Directing. Policy Formulation We have noted earlier that all organizations have well-defined goals and objectives.
general strategies. thus. However. All levels of management engage in planning in their own way for achieving their preset goals. should precede a good deal of research involving market surveys. establishing strategies for achieving these goals. Strategic Planning: Top level managers engage chiefly in strategic planning or long range planning Strategic planning is the process of developing and analyzing the organization’s mission. policies are the means to achieve those ends. summarizing what the organization does. Objectives are the ends. Planning also enhances the decisionmaking process. It provides the direction for the other functions of management and for effective teamwork. Decision – Making Taking decisions is a process. what distinguishers policies form objectives is that you first decide the objective. cost structure and so on. say a passenger car. it is not a decision in which any process is involved. a process in which one chooses a course which one thinks is the best.3 Planning It involves the process of defining goals. studies on passenger comfort. 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. 2. and then set out the method for achieving it. and allocating resources. Thus. and developing plans to integrate and coordinate activities. or where you want go to. Planning in order to be useful must be linked to the strategic intent of an organization. planning is often referred to as strategic in nature and also termed as strategic planning. In the football field. fuel and machine efficiency. Therefore.so. it would be correct to assume that an objective is what you want to accomplish. The mission statement is broad. while a policy. kicking the ball with the left foot or right foot is a reflex action. planning begins with clearly defining the mission of the organization. the decision to change the design of a product. The mission statement may be accompanied by an overarching . Every organization needs to plan for change in order to reach its set goal. The tasks of the strategic planning process include the following steps: Define the mission: A mission is the purpose of the organization. Effective planning enables an organization adapt to change by identifying opportunities and avoiding problems. An explicit mission guides employees to work independently and yet collectively toward the realization of the organization’s potential. A mission statement should be short – and should be easily understood and every employee should ideally be able to narrate it from memory. overall goals. driving comfort.
What makes the organization distinctive? 2. What are the vulnerable areas of the organization that could be exploited? 2. SWOT analysis provides the assumptions and facts on which a plan will be based. How skilled is our workforce? 4. Threats) analysis is vital for the creation of any strategic plan. professional. Opportunities. Organizations need to examine their business situation in order to map out the opportunities and threats present in their environments. Are the facilities outdated? 3. international). Is research and development adequate? 4. Weaknesses. state. journals and reports (scientific. and trade). Conduct a situational or SWOT analysis A situation or SWOT (Strengths.statement of philosophy or strategic purpose designed to convey a vision for the future as envisaged by top management. Are the technologies obsolete? For identifying opportunities the following elements need to be looked at: 1. professional or trade associations (conventions and exhibitions). suppliers. What financing is available? 6. federal. In which areas is the competition not meeting customer needs? 2. customers (internal and external). governments (local. For assessing the strengths of the organization the following questions are important: 1. Analyzing strengths and weaknesses comprises the internal assessment of the organization. What are the possible new markets? . The SWOT analysis begins with a scan of the external environment. Sources of information may include stakeholders like. What is our market share? 5. How efficient is our manufacturing? 3. Do we have a superior reputation? For assessing the weaknesses of the organization the following questions are important: 1.
and operational planning . effectiveness. as well as gap analysis. Benchmarking systematically compares performance measures such as efficiency. Set goals and objectives Strategic goals and objectives are developed to fill the gap between current capability and the mission. What is the strength of the economy? 4. Are our rivals weak? 5. Is there a shortage of resources? 4. Strategic. Is there a possibility of growth of existing market?) Identifying threats involves the following: 1. etc. The SWOT analysis is used as a baseline for future improvement. Develop related strategies (tactical and operational) Tactical plans are based on the organization’s strategic plan. Generally. They are aligned with the mission and form the basis for the action plans of an organization. tactical. operational plans are based on the organization’s tactical plans. Are market tastes changing? 5. What substitute products exist? In general terms. It also helps in setting minimum acceptable standards or common-sense minimums. Objectives are also called performance goals. What are the new regulations? 6. or outcomes of an organization against similar measures from other internal or external organizations. Comparing the organization to external benchmarks (the best practices) is used to assess current capabilities. return on investment. In which areas does the competition meet customer needs more effectively? 2. In turn. the best strategy is one that fits the organization’s strengths to opportunities in the environment. earnings per share. Are there new competitors? 3. organizations have longterm objectives for factors such as. What are the emerging technologies? 6. These are specific plans that are needed for each task or supportive activity comprising the whole.3.
and coordinating the work components to achieve organizational goal. and relationships between departments. To develop an environmental monitoring procedure. how the tasks are to be grouped. with ideas and resources. Group related jobs together in a logical and efficient manner 5. The purpose of the organizing function is to make the best use of the organization’s resources to achieve organizational goals. The formal organization can be seen and represented in chart form. who is to do.must be accompanied by controls to ensure proper implantation of the plans. Divide tasks into groups one person can accomplish – a job 4. grouped. and coordinated. Review plans 2.4 Organizing It involves designing. procedures. It is the process of determining what tasks are to be done. A key issue in accomplishing the goals identified in the planning process is structuring the work of the organization. 2. Monitor the plan A systematic method of monitoring the environment must be adopted to continuously improve the strategic planning process. The steps in the organizing process include: 1. This review is used for the next planning cycle and review. lines of authority. An organization chart displays the organizational structure and shows job titles. Feedback is encouraged and incorporated to determine if goals and objectives are feasible. 2. Formalization is an important aspect of structure. It is the official organizational structure conceived and built by top management. structuring. Delegate authority to establish relationships between jobs and groups of jobs. and goals are clearly stated. List all tasks to be accomplished 3. who reports to whom.5 Staffing . Organizations are groups of people. short-term standards for key variables that will tend to validate and support the long-range estimates must be established. necessary to maintain competitive advantage in the said market. working toward common goals. and where decisions are to be made. Organizational structure is the formal decision-making framework by which job tasks are divided. Assign work to individuals 6. It is the extent to which the units of the organization are explicitly defined and its policies.
recruitment. Curther Geelick Cyndall Urwick – “Staffing is the whole personnel function of brining in and training the staff and marinating of favorable conditions of work” Features of Staffing The analysis of the above definitions highlights the following features: 1.It is not the machines. 3. Deals with people: Staffing is a separate managerial function which deals with people in the organization. . It involves many sub-functions such as manpower planning. Definition: 1. This task has been referred to as staffing. materials. It has many sub-functions: Staffing involves determination of the manpower requirement. 2. 2. Managers of the concerned departments are responsible for the selection and development of qualified people for their department and maintain them in their department. 3. 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. 4. Staffing refers to the managerial function of determining and improving the manpower requirements of an enterprise. Theo Haimann – “Concerned with the placement. money. training. promotion. Therefore it is the responsibility of the management to secure and maintain competent and dedicated workforce including managers and operatives. transfer and appraisal of personnel to fill the organizational positions. growth and development of all those members of the organization whose function is to get things done through the efforts of other individuals”. Koontz. selection. Pervasiveness of Staffing: Effective execution of staffing function is the responsibility of all managers in the organization. performance appraisal etc. inventorying the people available. selection. placement. compensation and training of needed people”. recruitment. placement. O’Donnell & Weihrich have defined staffing as “filling positions in the organization structure through identifying work force requirements. development. 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. appraisal.
Direction is the managerial function of guiding.6 Directing Direction is one of the functions of management. It is an important managerial function. It is instructing people as to what to do.e. Characteristics of Direction The characteristic features of direction are as follow: 1. 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. 7. .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”. resignation. 3. selection. recruitment. Through direction. identifying the manpower requirements. It deals with future requirements: Staffing deals with current and future personnel requirements. Definition According to Koontz and O’Donnel. It is a continuing function. motivate them. etc. training development and maintenance of personnel. A manger needs to give orders to his subordinates. Direction is an important managerial function. It is a continuous function: With the growth and expansion of business additional manpower is needed. Thus staffing deals with the future requirements also. how to do and telling them to do to the best of their ability. Direction is continuous process and it continues throughout the life-time of the organization. 8. Thus staffing is an ongoing process through – out the life of an organization. Present positions must be filled keeping in mind the future requirements. vacancies arise out of retirement. 2. induction. promotion. 6. It is a process: it is a process having a logical sequence i. overseeing and leading people. Direction function is performed at every level of management. management initiates actions in the organization. Personnel policies and programs must be formulated as guides to perform the staffing function effectively. lead them and guide them on a continuous basis. 2.
on the other. The needs are arranged in order of importance. humanness and psychological health a person will show.7 Motivating Motivating In the 1950s three specific theories were formulated and are the best known: Hierarchy of Needs theory. and the Two-Factor theory. On the one hand.4. the number of subordinate he has and the other duties he is expected to perform. only unsatisfied needs can influence behavior. Continuous function: Directing is a continuous process. 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. sex. 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. guide. organizing and staffing on one hand and controlling on the other. satisfied needs cannot. Essence of performance: Directing is the process around which all performances revolve. Maslow’s Hierarchy of Needs Theory According to this theory. from the basic to the complex. will vary depending upon his level. The manager never ceases to direct. to provide superiors opportunities for some more important work which their subordinates cannot do. 3. proposed by Maslow (1943). thirst. Direction has dual objectives. “without the issuance of directives. Pervasive function: Directing is a managerial function performed by all mangers at all levels of the organization. coach and supervise his subordinates. nothing or at the best very little would be accomplished”. As Theo Haimann puts it. and other bodily needs . it aims at getting things done by subordinates and. It is an important function of management: Directing is an important management function which provides a connecting link between planning. shelter. Theories X and Y. human beings have wants and desires which influence their behaviour. The five needs are: · Physiological: Includes hunger. Nature of Directing The nature of directing can be discussed under the following: 1. 4. without guiding and overseeing subordinates. the more individuality. teach. It emphasizes that a subordinate is to be directed by his own superior only. The amount of time and effort an executive spends in directing however. 5. 2.
status. anxious to accept greater responsibility. and exercise self-control. such as. whereas. From the above. self-respect. It is also assumed that workers generally place security above all other factors and will display little ambition. autonomy. if they can. and achievement. and external esteem factors. Theory Y – In this theory management assumes employees may be ambitious. Herzberg’s Two Factor Theory . Workers need to be closely supervised and a comprehensive system of controls and a hierarchical structure is needed to supervise the workers closely. 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. Theory Y assumes that higher-order needs dominate individuals. belongingness. recognition. and self-fulfillment Maslow separated the five needs into higher and lower orders. if given the chance employees have the desire to be creative and forward thinking in the workplace. includes growth. such as. acceptance. Lower-order needs are predominantly satisfied. Social. It is also believed that. Physiological and safety needs are described as lower-order. Higher-order needs are satisfied internally. and attention · Self-actualization: The drive to become what one is capable of becoming. it is clear that Theory X assumes that lower-order needs dominate individuals. and self-actualization are classified as higherorder needs. autonomy and empowerment. self-motivated.· Safety: Includes security and protection from physical and emotional harm · Social: Includes affection. It is believed that employees enjoy their mental and physical work duties. externally. 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. and friendship · Esteem: Includes internal esteem factors. self-direction. esteem. achieving one’s potential. Theory X – In this theory management assumes employees are inherently lazy and will avoid work.
. people will not be dissatisfied. company policy. Self Assessment Questions 1. The absence of hygiene factors can create job dissatisfaction. The _____analysis begins with a scan of the external environment. When hygiene factors are adequate. Removing dissatisfying characteristics from a job does not necessarily make the job satisfying. how the tasks are to be grouped.8 Summary Management is the art of getting things done through people. To motivate people. 2. ____defined management as the art of getting things done through people. recognition. It is the process of determining what tasks are to be done. and where decisions are to be made. establishing strategies for achieving these goals. These two factors are motivators and hygiene factors and this theory is also called motivation-hygiene theory. Extrinsic factors. such as. 3. neither will they be satisfied. Presence of these factors ensure job satisfaction. advancement. responsibility. who is to do. Planning involves the process of defining goals. have to do with a person’s relationship to the context or environment in which she or he performs the job. Motivators are intrinsic factors. many related to the tasks being performed.Herzberg (1959) constructed a two-dimensional paradigm of factors affecting people’s attitudes about work. It involves many sub-functions such as manpower planning. 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. Directing is the interpersonal aspect of managing by which subordinates are led to understand and co-ordinate effectively and efficiently to the attainment of enterprises goals. structuring. Staffing refers to the managerial function of determining and improving the manpower requirements of an enterprise. and salary are hygiene factors. motivators describe a person’s relationship with what she or he does. and coordinating the work components to achieve organizational goal. _______refers to the managerial function of determining and improving the manpower requirements of an enterprise. 2. Hygiene factors on the other hand. working conditions. performance appraisal etc. emphasize factors intrinsically rewarding that are associated with the work itself or to outcomes directly derived from it. In summary. who reports to whom. Every organization needs to plan for change in order to reach its set goal. interpersonal relations. Job satisfaction factors are separate and distinct from job dissatisfaction factors. Organization involves designing. but their presence does not motivate or create satisfaction. and developing plans to integrate and coordinate activities. such as. and achievement. recruitment. supervision.
Follett 2. Staffing Answers to TQs: 1. 2.2. Write a short not on directing.9 Terminal Questions 1. Reference 2. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3.3 2. SWOT 3. Reference 2. Reference 2.10 Answers to SAQs and TQs SAQs: 1.5 3.1 Introduction Objectives .6 Copyright © 2009 SMU Powered by Sikkim Manipal University . Explain Staffing in detail 3. What is planning? 2.
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.
it is more accurate to describe “improvement” as a never-ending journey of continuous change. or became distracted with other duties. where new and expansive patterns of thinking are nurtured. We will explain this definition in some detail. and self-examining processes that facilitate individual. Organizational change is hard. and making it happen. By visioning processes. led and supported by top management. and problem-solving processes. coherent.Now let’s turn to our definition of organization development. we mean involving large numbers of people in building the vision of tomorrow. By learning processes. structure. we mean those interacting. Peter Senge describes learning organizations as “… organizations where people continually expand their capacity to create the results they truly desire.several years in most cases. through an ongoing. listening. “Organization development is a long-term effort. By long-term effort. In fact. but as one that includes characteristics we think are important for the present and future of the field. processes. team. 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. Visioning means creating a picture of the desired future that includes salient features of the human side of the organization and then working together to make that picture a reality. By empowerment. lost its commitment. where . Top management must initiate the improvement “journey” and be committed to seeing it through. The phrase led and supported by top management states an imperative: Top management must lead and actively encourage the change effort. We do not propose it as the “right” definition. and what the organization and its members can expect from each other. One program or initiative moves the organization to a higher plateau. it includes pain and setbacks as well as success. including action research. the ways those goods will be produced and delivered to customers. learning. it must be built into the very fabric of the organization-its strategy. then another moves it to yet a higher plateau of effectiveness. but it includes a number of components that we consider essential. and shared picture of the nature of the products and services the organization offers. Most OD programs that fail do so because top management was ambivalent. and culture. By empowerment processes. There is no “quick fix” when it comes to lasting organizational improvement. 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. For empowerment to become fact of life. empowerment. and organizational learning. to improve an organization’s visioning. we mean that organizational change and development takes time. we mean those processes through which organization members develop a viable. serious business. developing the strategy for getting there.” This definition is lengthy.
think. beliefs. sentiments. . We believe solutions to problems are enhanced by tapping deeply into the creativity. and problem-solving processes. and feel-that is why culture change is necessary for true organizational improvement. expectations. The reciprocal influence among culture. commitment. widely shared vision of a desired future creates the best climate for effective problem-solving by all the organization’s members. think. empowerment. we affirm our belief that culture is the bedrock of behaviour in organizations.” Problem-solving processes refer to the ways organization members diagnose situations. Our definition also places considerable weight on organizational processes. empowerment. learning. 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 common purposes of all members of the organization. And second. learning. and problem-solving processes are opportunities for collaboration in organization development. managing the culture should be a collaborative business. vitality. Just as visioning. and feel in relation to those problems. Empowerment means involving people in problems and decisions and letting them be responsible for results. But change becomes permanent when the culture changes and people accept the new ways as the “right” ways. and continuous learning the organization is bound to succeed. Processes are relatively easy to change. norms. By including culture so prominently in our definition. interactions. solve problems. opportunities. discovered. Still. culture is of primary importance. we mean. and artifacts. attitudes. Collaborative management of the culture means that everyone. and challenges in the organization’s environment and its internal functioning.collective aspiration is set free. activities. (d) that has worked well enough to be considered valid and. (c) as it learns to cope with its problems of external adaptation and internal integration. By ongoing collaborative management of the organization’s culture. has a stake in making the organization work. We believe that when the culture promotes collaboration. So culture consists of basic assumptions. or developed by a given group. 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 take actions on problems. not just a small group. Edgar Schein clarifies the nature and power of culture in his definition: “Culture can now be defined as (a) a pattern of basic assumptions. Michael Beer’s definition called for “developing new and creative organizational solutions”. Processes are how things get done. and each influences the others. structure. first. empowerment. and where people are continually learning how to learn together. so is managing the culture. therefore (e) is to be taught to new members as the (f) correct way to perceive. that one of the most important things to manage in organizations is the culture: the prevailing pattern of values. We further believe that having compelling. and we highlight the importance of visioning. and processes makes each important. make decisions. and norms of behaviour that are viewed as the correct way to perceive. (b) invented. values. assumptions. strategy. in contrast to having only a select few involved.
2. In Liberation Management. manufacturing. 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. Team building and role and goal clarification interventions are standard activities in OD programs directed toward intact work teams. firing. we recognize that teams are central to accomplishing work in organizations. and then disbanded with the people going on to new tasks. and procurement. The most prevalent form of teams in organizations is intact work teams consisting of superior and subordinates with a specific job to perform. In addition to team building and role and goal clarification. here are the primary distinguishing characteristics of organization development: 1. intact work teams do not have a boss in the traditional sense-the teams manage themselves. engineering. Over time. according to Peters. and using management information. When teams function well. This method resulted in loss of synergy. 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. The old method was to have functional specialists work on the problem sequentially. To summarize. 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. and training. team culture can be collaboratively managed to ensure effectiveness. Further. maintaining quality control. 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. hiring. But in many organizations today. Today’s organizations increasingly use ad hoc teams that perform a specific task and disband when the task is completed. When one function finished with its part of the project. OD encourages collaboration between organization leaders and members in managing culture and processes. . Specifically. Temporary. The definition we have just analyzed contains the elements we believe are important for OD. constantly shifting teams will be the dominant configuration for getting work done. multifunctional. The results are usually highly gratifying both for the team members and for the organization. We think teams are the basic building blocks of organizations. He uses the terms ‘multifunctional projectization’ and ‘horizontal systems’ to describe these teams and their work. and considerable antagonism among the separate functional specialists. much rework. self-directed teams control performance appraisals. wasted time. such as design. individuals and the organization function well.By intact work teams and other configurations. OD focuses on culture and processes. members are trained in competencies such as planning.
and co-learners with the client system. OD relies on an action research model with extensive participation by client system members. they are ongoing. Attempting to create “win-win” solutions is standard practice in OD programs. 7. Teams of all kinds are particularly important for accomplishing tasks and are targets for OD activities. 4. and cyclic processes. OD focuses on the elevation of an organization to a higher level of functioning by improving the performance and satisfaction. 6. Long-range Change: OD efforts are not meant for solving short-term. OD practitioners are facilitators. This ‘planned’ emphasis separates OD efforts from other kinds of more haphazard changes that are frequently undertaken by organizations. 2. . so the methods of attaining these goals should also change. Planned Change: OD is a strategy of planned change for organizational improvement. dynamic and adaptive system. 8. It recognizes that organizational goals change. collaborators. OD takes a developmental view that seeks the betterment of both individuals and the organization. temporary. Comprehensive Change: OD efforts focus on comprehensive change in the organization. The concept of comprehensive change is based on the systems concept-open. 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.3. OD views organization improvement as an ongoing process in the context of a constantly changing environment. 9. or isolated problems. Thus.3 Characteristics of OD 1. OD focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. rather than focusing attention on individuals. 10. OD efforts are not one-shot actions. 3. Rather. 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. rather. so that change is easily observed. 3. 4. 5. Participation and involvement in problem-solving and decision-making by all levels of the organization are hallmarks of OD. 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 focuses on total system change and views organizations as complex social systems. interactive.
(b) Problems of human satisfaction and development.4 Categories of OD Programmes In general. the element which links Organization Development with the scientific method of inquiry and. There is a close working relationship between the change agent and the target organizational members to be changed. 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’. third party change agent. and then. the importance and centrality of goals and objectives and the different role requirements of the consultant change agent vis-à-vis the clients. and (c) Problems of organizational effectiveness. . Two important elements of Organization Development are. He designs intervention strategies based on these data. rather. They discourage ‘do it yourself’ approach.5. identity. Action research is the basis for such intervention. (b) The interventions are primarily directed towards problems and issues identified by the client group. Key areas are the normative type of model. further more. Although Organization Development Programmes vary. growth. and revitalization. and integrate individual and organizational goals. first. it is a programme with a purpose that is to guide present and future action. he conducts surveys. Emphasis on Intervention and Action Research: OD approach results in an active intervention in the ongoing activities of the organization. The relationship involves mutual trust. joint goals and means. or catalyst. participation. practitioners and the client laymen. At the individual level. collects relevant data. 3. evaluates these data. He shares a social philosophy about human values. and adaptability for the organization as a whole. Organization Development is inextricably linked with action. This is done to arrive at certain desirable outcomes that may be in the form of increased effectiveness. the collaborative relationships between the scientists. Participation of Change Agent: Most OD experts emphasize the need for an outside. and mutual influence. 6. takes actions for intervention. 7. second. A change agent in OD process does not just introspect the people and introduce changes. yet following features are common to most of the programmes: (a) The client is a total system or major subunit of total system. problem-solving. The change agent is a humanist seeking to get a humanistic philosophy in the organization. OD attempts to provide opportunities to be ‘human’ and to increase awareness. all types of experience requiring Organization Development efforts may be grouped into three categories: (a) Problems of destiny.
6 OD and Management Development .(c) The interventions are directed towards problem-solving and improved functioning for the client system. This Organization Development progrmmes. 3. with the authority of knowledge and competence. (g) To increase the sense of ‘ownership’ or organization’s objectives throughout the work force. (d) To build trust among persons and groups throughout an organization. (h) To help managers to manage according to relevant objectives rather than according to past practices or according to objectives which do not make sense for one’s area of responsibility. and (d) The interventions are based on behavioural science theory and technology. like other normative re-educative programmes. (f) To develop a reward system which recognizes both the achievement of the organization’s goals (profit or service) and development of people. (c) To locate decision making and problem-solving responsibilities as close to sources of information as possible. problem solving climate throughout an organization. 3. its underlying theory and assumptions and some of the pitfall and challenges in attempting to improve organizations through behavioural science. (b) To supplement the authority associated with role or status. (j) To improve effectiveness of the organization. (i) To increase self-control and self-direction for people within the organization. We need to examine carefully the techniques of Organization Development. (e) To make competition more relevant to work goals and to maximize collaborative efforts. 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.5 Goals of Organization Development Following are the generally accepted goals of OD: (a) To create an open.
OD tries to fit the organization to the men. and (iv) a sense of responsibility. 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. While the latter aims at developing the mangers individually for the accomplishment of better performance in organizational setting. less individual competitiveness. according to him. (ii) competitiveness. MD tries to fit the men to the organization. and techniques adopted in both may overlap to some extent. (iii) assertiveness.At this stage. more attention to peer-groups. The term ‘development’ refers broadly to the nature and direction of change induced in personnel through the process of training and education. organization. management development has been defined as follows: “Management development is all those activities and programmes when recognized and controlled. Before making a comparison between the two. then would the results be functional for managing organization activity in a competitive world? Thus. 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. let us define management development as we have seen the definition of OD. and greater display of feelings and emotions. with their existing objectives and structure. 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. not on the and managers to perform managers. he appears to be biased against OD and the real distinction between OD and MD lies in between these two extremes. If OD efforts train people towards anti-authority value. According to him. Difference between Management Development and OD Factors Objectives Management Development Organization Development Increasing manager’s Changing the nature of the contributions to goal organization. Focus . it is beneficial to make a comparison between OD and Management Development (MD) as both have some common objectives that betterment of an organization.” Organization development differs from management development. focus on achieving better in existing improvement in design. there are four attributes of effective managers in large organization. Based on this. However. the former goes one step further and purports to change the entire organizational climate where the mangers work. Train and equip employees Focus on design. Miner has drawn difference between two processes. accomplishments.
3. has invited sharp criticism as a strategy to increase organizational viability and effectiveness because many OD programmes have failed. it is quite suitable for improving organizational performance on long-term basis. substantial disenchantment with OD became evident because of many controversial OD techniques like sensitivity training. Research studies have also failed to conclude . and laterally. Thus. Specialist No special requirement. 6. 2.7 Role of Organization Development Organization development. plays key role in organizational improvement. To place emphasis on humanistic values and goals consistent with these vales. Trained specialists required. as a long-term strategy for organizational change. OD became quite successful with many professional consultants offering high services and programmes to various organizations.Approach Time Educative and training Short-range. Long-range strategy for organizational innovation and renewal. Much of the enthusiasm created at the beginning of OD programmes vanished over the period of time. 3. To treat each human being as a complex person with a complex set of needs important in his work and his life. To create an environment in which authority of assigned role is augmented by authority based on knowledge and skills. By 70s. however. Since OD attempts to bring comprehensive change in the organization. 4. In early 60s. Problem-solving approach. The basic problem in a change effort which is not comprehensive is that it does not work properly unless there is a proper change in the internal environment of the organization in which people work. To increase the openness of communications in all directions-vertically. confrontation techniques. however. To increase the level of trust and mutual emotional support among all organization members. horizontally.8 Problems in Organization Development Organization development. 5. 7. To increase the level of enthusiasms and personal satisfaction at all levels of the organization. 3. OD can be utilized for the following results in the organization: 1. etc. To increase the level of self and group responsibility in planning and its implementation.
. There is discrepancy between ideal and real situations. Organization must formulate the objectives of OD programme very clearly and specifically. However. it fails even as a long-term strategy. it can be visualized that OD itself may not be dysfunctional but application may be. and only large organizations can afford this luxury without any guarantee of positive outcome. in order to make best use of OD efforts. OD fails to motivate people with low level of achievement needs. OD makes people unfit for the real organizations world because no organization can fully adopt open system concept. 4. OD is criticized on the following lines: 1. People realized its dysfunctional aspects only when many OD efforts failed. 5. Thus. 5. Enough time should be allowed so that the effects of OD programme are realized. OD programmes are often quite costly. There should be proper use of OD interventions. In general. Therefore. For example. 2. 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. OD can not be taken as panacea for curing all organizational problems. and (ii) failure to correctly model appropriate personnel behaviour in the programme. 3. it is useless to try OD. 4. There should be genuine support of OD programme from top management.significant contributions of OD in all organizations. If an organization is laden with these people. particularly in bottom-line ones. Only fully competent OD consultant should be pressed for the service and he should develop understanding with internal change agents. It can be seen that many of these criticisms are based on reality and experience. Hence. Resistance to change is a natural phenomenon and OD puts undue pressure to change. it may be emphasized that OD programmes are likely to fail when these are not programmes and hence failure. OD tries to achieve ideal without taking into account real. These should be based on the specific needs of the organization. 2. Therefore. some specific efforts are required. 3. and (iii) failure to increase employee motivation through participation and development of personal growth and self-esteem. Some of these efforts are as follows: 1.
3.Self Assessment Questions 1.11 Answers to SAQs and TQs SAQs: 1.10 Terminal Questions 1.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. problem-focused ‘nature of OD’ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. ––––––––– is a process which includes leadership behaviours and human resource practices. What are the problems involved in the implementation of OD? 3. Explain its salient features. 4. 2. 3. collaborative. Who is associated with the “Learning Organizations”? 5. ––––––– is associated with “Liberation Management”. Tom Peters 3. 4. 3. State the various roles of OD. But OD aims at changing the entire organizational climate where the managers work. Management development aims at developing the managers individually. Define OD. Empowerment . 5. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. OD focuses on culture and processes. There is no ‘quick fix’ to organizations’ problems. OD is the ultimate remedy for organizational improvements and developments. 3. Distinguish between ‘organizational development’ and ‘management development’. Top management 2. _____________is a short-term strategy. The participative. 2. Organization development should be led and supported by –––––––. Explain the various characteristics of OD.
4.3 3.1 Introduction Objectives 4.2 Survey Feedback 4. Management development Answers to TQs: 1.3 Process Consultation 4.Organization Development – Interventions Unit-04. Peter Senge 5. Refer section 3. Refer section 3.5 Leadership Development 4.2 2. Refer section 3.Organization Development – Interventions Structure: 4. Refer section 3.6 Team-building .7 5. Refer section 3.6 4. MU0002-Unit-04.4 Grid Training 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .
techno-structural activities. they make things happen. Nevertheless.11 Terminal Questions 4. the classification appears to be more relevant because it may specify the . and organizational culture. education and training. Further. inter-group activities.8 Change Agents 4. management grid.12 Answers to SAQs and TQs 4.10 Summary 4. interventions may be required to change people at all these levels. interpersonal level. team-building. 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. survey feedback.4. various consultants and practitioners have different opinions about the activities which can be included in interventions. However.7 Inter Group Development 4. such a classification of interventions may not put them into mutually exclusive categories as a particular intervention may be applied at more than one level. work group.9 Role of Change Agents Self Assessment Questions 4. A meaningful classification of OD interventions may be based on the improvement in the behaviour of people in the organization as OD is basically a behavioural approach. and organizational level.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. mediation and negotiation activities. process consultation. French and Bell have suggested twelve families of OD interventions: diagnostic. group level. Thus. many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others. For example. inter-group level. Interventions constitute the action thrust of organization development. 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.” There are various OD interventions and they are classified in different ways. the classification of OD interventions shows variation. People’s behaviour may be relevant to understand at individual level. Therefore.
feedback of information. Process of Survey Feedback Survey feedback usually proceeds with sequential activities involving data collection. and peer interaction facilitation. Institute for Social Research (ISR) of University of Michigan. Our further discussion follows this development. . Data Collection: The first step in survey feedback is data collection usually by a consultant based on a structured questionnaire. 1. The basic objectives of survey feedback are as follows: 1.building. 2. · Describe process consultation. the other major thrust in the development of OD has come from survey research and feedback of data. Though some type of survey method was prevalent in various organizations earlier. other techniques like process consultation. Historically.2 Survey Feedback Besides laboratory training (sensitivity and grid). and follow up. and survey feedback method. OD efforts were attempted through sensitivity training. peer work facilitation. · Realize the importance of team-building. · Explain grid training. grid training. peer goal emphasis. Subsequently. · Role of change agents. 4. peer support. To assist the organization in diagnosing its problems and developing action plan for problemsolving. you will be able to: · Describe survey feedback. team. To assist the group members to improve the relationships through discussion of common problems. developing action plans based on feedback. managerial goal emphasis. Objectives: After studying this unit. managerial work facilitation.range of change that an organization requires. have been added. USA developed a comprehensive questionnaire for conducting survey in different aspects of an organization. and participative goal-setting which has become more popular as management by objectives. The questionnaire may include different aspects of organizational functioning. ISR has prepared a questionnaire which includes questions on leadership – managerial support.
Second. control within the company. feedback may be given in the form of a written summary of findings. motivation. and analysis is made to arrive at some meaningful conclusions. 3. questionnaire used and method adopted for its administration should be reliable and valid. and satisfaction with the work group. satisfaction with the supervisor. However. tabulated. It is cost-effective means of implementing a comprehensive OD programme making it a highly desirable technique. First. decision-making. it is of no use unless follow-up action is taken based on the . The feedback may be given either orally or in a written form.organizational climate-communication with the company. One such follow-up action may be to advise the participants to develop their own action plans to overcome the problems revealed through a feedback or as is more commonly the case. If it is biased. and general management. even if valid and reliable information is collected. Evaluation of Survey Feedback Survey feedback provides a base for many managerial actions which has been confirmed by various research studies. After the questionnaires are completed. Whatever the method of giving feedback is adopted. by the consultant. In particular. feedback is given to the persons who have participated in the fulfilling up of questionnaire. satisfaction with the job. threatening and emotion-hurting as survey feedback is aimed at identifying weaknesses which must be overcome through follow-up actions and not the fault-finding technique for criticism. 2. all attempts to diagnose the problems will be abortive and futile. and satisfaction-satisfaction with the company. co-ordination between departments. 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. Follow-up Action: Survey feedback programme is not meaningful unless some follow-up action is taken based on the data collected. data are classified. Alternatively. it is provided through group discussion or problem-solving sessions conducted by the consultant. survey feedback contributes in the following manner: 1. It generates great amount of information efficiently and quickly which can be used in solving problems faced by the organization and its members. Feedback of Information: After the data are analyzed. The questionnaire is administered personally either by the members of consulting firm or by organization’s personnel. rather. satisfaction with the pay. 3. In oral system of feedback. effectiveness of survey feedback depends on two factors. 2. follow-up action may be in the form of developing some specific OD interventions particularly process consultation and team-building. it should be constructive and suggestive.
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.C are as follows: 1. communication. time. 4. and inter-group co-operation and conflicts. Edgar Schein. To understand how various organizational processes can be linked to objective achievement in the organization. observations.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. understand. This data gathering occurs simultaneously with the entire consultative process. group norms. Gather Data and Make a Diagnosis: Information is collected from various sources thorough the use of questionnaires.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. Information collected is processed to diagnose the problems and their underlying causes. the consultant is introduced to the organizational members and basic objectives of the P.C has defined it as follows: “The set of activities on the part of the consultant which help the client to perceive.3 Process Consultation Process Consultation (P. the leading writer and consultant on P. Initiate Contact: This is beginning stage of P.C) is a technique for intervening in an ongoing system. group decision-making and problemsolving. and spelling out services.information. 2. Define the Relationship: At this stage. . Steps in Process Consultation Schein has suggested following specific steps which the consultant would follow in a P. 3. 1. At this stage. The basic content of P. and interview about the problems. 4. roles and functions of group members.C are communicated to them with a view that they co-operate with the consultant. it provides base for action for change. A survey feedback is not a technique in itself for change.C programme of OD. the client’s expectations and hoped-for results are also decided. 2. At this stage. etc. client and consultant enter into agreement covering various aspects of consultancy services like fees. spelled out at the initial stage. To bring desired change in the various organizational processes like leadership. and act upon the process events which occur in the client’s environment.” The basic objectives of P.
feedback. In the review of various P. like other OD intervention techniques. 4.4 Grid Training Grid training is basically based on grid organization development developed by Blake and Mouton. 6. focuses on skills. groups. . Though he is involved only in suggesting the various changes in the processes. inter-group. significant correlation between the outcomes has not been found. 2. knowledge. and the organization as a whole. To study the organization as an interactive system and apply techniques of analysis in diagnosing its problems. he assists the organizational members to incorporate those changes. enabling individuals and groups to assess their own strengths and weaknesses. both these problems may be overcome by engaging a suitable consultant and developing willingness among the members for change. It is a comprehensive and systematic OD programme which aims at individuals. P.C programmes.C is also not free from criticisms. Reduce Involvement and Terminate: When the work of P. 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.C is completed. and/or structural change.5. 3. and total organizational levels. It utilizes a considerable number of instruments. However. and processes necessary for effectiveness at the individual. P. However.C is very effective intervention for organizational improvement. To evaluate the styles of leadership and techniques of participation to produce desirable results. Its specific objectives are as follows: 1. The grid organization development consists of six phases. The whole orientation is to develop managerial style through the application of behavioural science knowledge. Evaluation of Process Consultation: Process consultation is quite in-depth activity of OD in which the consultant plays a major role. coaching. Intervene: At this stage. the consultant intervenes in the organizational processes by using different interventions like agenda-setting. the consultant disengages from the client organization by mutual agreement but leaves the door open for future involvement. To understand the importance and rationale of systematic change. From this point of view. One basic reason for this phenomenon may be the consultant’s inability to steer the organization out of troubles. Process of Grid Training The basic content of grid organization development is managerial grid as discussed. group.
Though research studies on the application of grid training are not many. and alike. 3. objective-setting. 2. The skills relating to planning. some of them have not supported the claims made by Blake and Mouton. the focus is on inter-group behaviour and relations. traditions. The action is designed to identify the characteristics of the ideal organization. grid training is a non-rigorous method. and teamwork.” In a later work. they maintained the same stand. 4. problem-solving. The members of the organization are trained for achieving this excellence. Developing Ideal Strategic Corporate Model: At this stage. grid training has some positive contributions for organizational effectiveness. The analysis will bring out the shortcomings that may be there.1. the focus shifts to the total organization and to develop skills necessary for organizational excellence. in spite of these criticisms. 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. The individuals try to learn to become managers by practice. 4. therefore. In this light. The strategy is then implemented. Teamwork Development: The focus in this stage is to develop teamwork by analyzing team culture. The thrust is on moving groups from conflict to co-operation. the various efforts from phase 1 to phase 5 are evaluated and critical analysis is made. They have maintained that “managerial and team effectiveness can be taught to managers with outside assistance. 5. Managerial grid: It covers various aspects of assessing managerial styles. Action steps to move towards the ideal are developed and assigned to individuals who may be engaged in building co-operative inter-group relationships. Inter-group Development: At this phase. and problemsolving are also developed. Furthermore. it discounts reality. 6.5 Leadership Development . Further. Each group may be given assignment to evolve strategy for making ideal organization with the help of the consultant. it appears that this type of educational strategy can help to make significant contributions to organizational effectiveness. Grid training programme is criticized on the basis that it lacks contingency approach and. Each group separately analyses the ideal inter-group relations. communication skills. the various programmes may be redesigned. Systematic Critique: In this stage. Evaluation of Grid Training Most of the support of grid training has come from its originators-Blake and Mouton.
We can call these Preparing For the Journey. In organizations characterized by poor leadership. teambuilding is the most important. if haven’t established a track record of effective leadership. As against these. and that makes coping with drastic change much easier. is the ability of leadership to…well. results in an organization becoming completely nonfunctioning. Before going through how team-building exercise can be undertaken to develop effective teams. confident and effective decision-making. and After Arrival. competence. Unfortunately. During drastic change times. We will look more carefully at each of these. let us consider the life cycle of a team. and credibility of senior and middle management. clearly the most important determinant of "getting through the swamp". If you are to manage change effectively. therefore. if allowed to go on for too long. while at the same time recognizing that tough decisions need to be made. lead. The literature on the subject indicates that the nature of the change is secondary to the perceptions that employees have regarding the ability. concerned and committed to their welfare. 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. complete communication that is timely. The Role of Leadership In an organization where there is faith in the abilities of formal leaders. have no faith in the system or in the ability of leaders to turn the organization around. problems in . you need to be aware that there are three distinct times zones where leadership is important. Also during these times of change. employees learn that leaders will act in indecipherable ways and in ways that do not seem to be in anyone’s best interests. during and after change implementation is THE key to getting through the swamp. 4. The existence of this trust. and regular. Slogging Through The Swamp. For example. and applied OD intervention for organizational improvement. employees expect nothing positive. In a climate of distrust. The organization must deal with the practical impact of unpleasant change. The best way to summarize is that there is a climate of trust between leader and the rest of the team. Poor leadership means an absence of hope.” 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.When change is imposed (as in downsizing scenarios). brings hope for better times in the future. widely accepted. employees will perceive leadership as supportive. but more importantly. it may be too late. Leadership before. by the time you have to deal with difficult changes. employees will expect effective and sensible planning. which. employees will look towards the leaders for a number of things. must labor under the weight of employees who have given up. how synergy is generated through team-work.6 Team-building Various OD interventions discussed so far have their specific implications for OD and. are closely associated with a very few advocates and practitioners.
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. At this stage. even the most successful teams as they have completed their mission. and features of effective team so that team-building exercises focus more sharply on developing effective team. because of individual differences. and adjourning as shown below: Fig. Life Cycle of a Team When a number of individuals begin to work at interdependent jobs. These stages are: forming.1: Life Cycle of a Team Though these are not followed rigidly.team-work. Storming: After the forming stage which is mostly related to perceiving and assessing each other. 2. Norming: After storming stage. 4. Functional roles are performed and exchanged as needed. At this stage. and arguing for appropriate strategies to be adopted for achieving team’s goals. storming. members start interaction among themselves in the form of competing for status. The team begins to move in a co-operative fashion and a tentative balance among competing forces too is struck. The . each team has to be adjourned. team members start settling. they often pass through several stages as they learn to work together as a team. interaction among team members is often cautious especially when they are new to one another. Adjourning: Adjourning is the end phase of cycle of a team. performing. team members get introduced to each other if they have not interacted earlier. group norms emerge to guide individual behaviour which form the basis for co-operative feelings and behaviour among members. They share personal information. different members may experience varying degree of tension and anxiety out of this interaction pattern. Forming: At the first stage of the life cycle. Performing: When team members interact among themselves on the basis of norms that have emerged in the team. 3. These typical stages of life cycle of a team are described below: 1. and begin to turn their attention to the group tasks. 5. jockeying for relative control. they do represent a broad pattern that may be observed and predicted in many settings across team’s time together. norming. Sooner or later. start to accept others. they learn to handle complex problems that come before the team. 4. and tasks are accompanied efficiently.
Putting the concept of synergy in teamwork means members of the team are complementary to each other and they contribute positively to one another. other factors remaining the same. in one experiment. To the extent.adjournment phase takes place in the case of those teams which are created for some special purposes like task force. In such an assignment.” Thus. 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. concept of stages is significant in the context of the nature of problem which team members are likely to face in team-work. etc. intense social relationship among members comes to an end. and so on. In fact. 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. 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. A simple phenomenon of social loafing may be observed in a group assignment to students during their study. For example. that is. the team would be effective. After the adjournment of the team. a team is created to undertake a task which requires a variety of skills and single individual cannot perform that task alone. 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. fail to perform their assigned tasks. This effect can be described as 2+2=5 effect. students find that one or two students do not put their weight for the completion of the project. Other types of team like a department in an organization run on the basis of some permanency though there may be changes in team members. The 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. the complementarity among members is achieved. synergistic effect is not automatic but depends on the complementarity of different elements that are put together and the way they interact among themselves. committee. However. how a particular element affects another and is affected by it. team-work does not necessarily spurt group efforts. This phenomenon may happen in teams in work organizations too. 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.
Dropping of average output in group efforts indicates that some members of the group were not contributing as much as they did individually. When the same individuals pulled on the rope of groups of three. and attitudes. While skills are relevant for job performance. Supportive Environment: A team loaded with skilled members cannot perform well if the organizational climate is not supportive for that. Thus. group of eight. 1. goals. They averaged 138. If the organizational climate is not in tune with high achievement. skills which are complementary to the team requirement and understanding of one’s own role as well as roles of other members. Therefore. Even if one member lacks behind. The phenomenon of social loafing can be minimized by constituting effective team for group performance. 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. These factors are skills and role clarity.2 pounds. When the group is not cohesive with high output norms. In the above paragraph. Skills and Role Clarity: For an effective team. he may tend to affect others because of chain reaction just like a rotten apple injures its companions. . 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. 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. team members may not show high degree of enthusiasm and they will use only a part of their skills in performing the jobs. team members may tend to contribute positively to the teamwork. understanding of roles helps members to meet the requirement of one another thereby solving the problems which the team faces. two things are required from its members. Individuals were asked to pull alone as hard as possible on a rope attached to a strain gauge. 2. Let us see how these factors make a team effective. From this statement. it appears that there are many factors in an effective team. individual members do not contribute to the fullest extent. the individual average dropped down still lower68. group efforts tend to slacken. When the division of work cannot be accomplished properly and individual efforts are hard to determine. other factors remaining the same. 2. supportive environment. super-ordinate goals and team rewards. The possibility of occurring of social loafing in a team-work increases because of the following reasons: 1. we have mentioned that team effectiveness depends on the complementarity of team members.6 pound of pressure while tugging on the rope.
3. Super-ordinate Goals: Super-ordinate goals are those which are above the goals of a single team or a single individual. An individual works better if he is able to link how his goal attainment leads to the attainment of a higher-level goal. These super-ordinate goals, then, serve to focus attention, unify efforts, and stimulate more cohesive team efforts. 4. Team Rewards: Team performance depends on how reward is linked to team performance and how members perceive this linkage. If team members perceive that reward to contingent on team performance, they will put their maximum. Rewards of both types- financial and nonfinancial-should be taken into consideration. Further, organizations need to achieve a careful balance between encouraging and rewarding individual initiative and growth and stimulating full contributions to team success. Innovative non-financial team rewards for responsible behaviour may include the authority to select new members of the group, make recommendations regarding a new supervisor, or propose discipline for team members. The positive aspect of all these factors leads to team effectiveness and team members share common values regarding product quality, customer satisfaction, and share the responsibility for completing a project on schedule. Katzenbatch and Smith, management consultants, have suggested the concept of real team and they feel that this concept is relatively unexploited despite its capacity to outperform other groups and individuals. They define four characteristics of real teams: small size; complementary skills; common purpose, goals, and working approach: and willingness to be held mutually accountable. Real teams can be created and sustained by: 1. Selecting members for their complementary skills and potentials; 2. Developing clear rules of conduct and challenging performance goals; 3. Establishing a sense of urgency right from the first meeting. 4. Providing substantial time together in which new information is constantly shared; and 5. Providing positive feedback, recognition, and rewards. Team-building Process: Team-building attempts to improve effectiveness of the team by having team members to concentrate on: 1. Setting goals and priorities for the team. 2. Analyzing how team’s goals and priorities are linked to those of the organization. 3. Analyzing how the work is performed. 4. Analyzing how the team is working, and
5. Analyzing the relationships among the members who are performing the job. For achieving these, the team-building exercise proceeds in a particular way as shown in figure.
Fig. 4.2: Process of Team-building Various steps of team-building process are not one-shot action, rather, they are repetitive and cyclical as indicated by arrows in the figure. 1. Problem-sensing: There are a number of ways in which problems of a team can be obtained. Often the team itself defines which aspects of team-building it wishes to work on. This problem can better be identified in terms of what is hindering group effectiveness. At this stage, generally most of the members come forward with their arguments as to what the real problems are. The view may be quite different ranging from the organizational problem, group problems to even personal problem. In problem identification, the emphasis should be on consensus. The consensus-seeking part of the process necessitates that each person becomes thoroughly aware and understand clearly the basic concepts of team-development. Much of the problems may be solved through effective communication and training sessions. 2. Examining Differences: The perception of people on an issue differs because of their differing backgrounds, such as, their value systems, personality and attitudes. The perception may be brought to conformity through the process of exercise on perception which involves a number of psychological exercises particularly on perceptual differences. The role of communication is important in this context because it will help in clarifying the actual problems to the members. 3. Giving and Receiving Feedback: The step of perceiving things and listening to each other may be relayed back to the members as there is a possibility that such processes may create tense situation in the group. Often, members report about the painful feelings that they have at the time of evaluation of their feelings. The discussion should continue until all members of the team have commented. The feedback should be given to the members about their feelings, about the issue, the way people talk about the issue, the stying with the topic or going off on tangents, who was talking more or who was talking less, who was trying to resolve the differences, etc. Such feedback generally provides members to evaluate the values but at the same time, also provides opportunity to understand themselves. The concept of Johari Window may also be applied. This suggests that even people are not fully aware of themselves. 4. Developing Interactive Skills: The basic objective of this process is to increase the ability among the people as to how they should interact with others and engage in constructive behaviour. Following are the examples of constructive and negative behaviours:
Constructive Behaviour: (i) Building: developing and expanding the ideas of others. (ii) Bringing in: harmonizing, encouraging others to participate. (iii) Clarifying: resting, ensuring, understanding, seeking relevant information. (iv) Innovative: bringing in new relevant ideas, information, feelings, etc.
(i) Over talk: interrupting, talking together with speaker. (ii) Attacking: deriding, belittling, criticizing person. (iii) Negative: cooling, cynicism, undermining morale. At the time of discussion of feedback, people themselves take assignments to increase specific constructive behaviours and decrease specific negative behaviours. If this process is adopted several times, there is a strong possibility that members may learn constructive behaviours and leave negative behaviours. This is quite helpful in developing teamwork. 5. Follow-up Action: This is the final stage in team-building. At this stage, the total team is convened to review what has been learned and to identify what the next step should be. Follow-up action also helps in overcoming the drawback involved at the initial stages of teambuilding. It involves deciding who will take care of each area of the team’s responsibilities, and who will be responsible for team projects in a group that has not developed a satisfactory division of responsibility; clarifying and setting differences in perception concerning responsibility and authority in the team, with complex division of responsibility and authority among members. These attempts bring co-operative and supportive feelings among people involved in the team functioning. When this exercise is undertaken at the initial stage, it contributes positively towards the feelings of the people. However, to encourage and sustain such feelings, management should take such actions at regular intervals so that members feel reinforced and sustain their positive behaviour. Such actions will go a long way in shaping the organizational climate quite conducive to members for their efficient working. Evaluation of Team-building As mentioned earlier, team-building as an OD intervention has attracted maximum attention. Many research studies have also confirmed the positive contributions of team-building on the
It helps in developing effective interpersonal relationships by stimulating the group members for that. Team-building becomes a complicated exercise when there is frequent change in team members. team-building has a positive outlook. the groups can move to the integration phase – working to develop solutions that will improve relations. However. after which similarities and differences are discussed. Although there are several approaches for improving intergroup relations. The groups then share their lists. Once the causes of the difficulty have been identified. In this method. 3. Differences are clearly articulate. and how it believes the other group perceivers it. It focuses only on work groups and other major organizational variables such as technology. 2. 2. structure. it is not that effective in isolation. though.organization’s outcomes. In general. and feedback skills). team-building contributes to the organizational performance in the following manner: 1. and the groups look for the causes of the disparities. It helps developing communication within the group and inter-group and overcoming many psychological barriers that block communication flow. However. In spite of these problems. are not given adequate attention. . and perceptions that groups have of each other.7 Inter-group Development A major area of concern is OD is the dysfunctional conflict that exists between groups. 4. one of the more Popular methods emphasize problem solving. the other group. stereotypes. New member may find it difficult to adjust with the team because of his confusion over his roles in terms of task performance and building good relationships. listening. One such suggestion is to use a task hierarchy to reinforce the team as it progresses up a behaviour skill hierarchy (for example. each group meets independently to develop lists of its perception of itself. monitoring. It seeks to change to attitudes. Therefore. in different degrees. this has been a subject to which change efforts have been directed.. etc. It improves the organization’s problem-solving and decision-making ability. there have been calls for combining team-building with organization behaviour modification approaches. team-building has been termed as one-sided effort and it suffers from the following limitations: 1. communicating. As a result.
The consultant may fulfill a variety of functions. enabling the client to let off steam: as the ignition to spark action. as the radiator absorbing some of the heat of the controversy. or outside consultants. may be more thoughtful (and possibly cautious) because they to live with the consequences of their actions. as the break for too quick action. 4. however. For major change efforts. group discussions. films. with members from each of the conflicting groups. According to Curtis Mial: “The Consultant may serve as the exhaust value. 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. internal management often will hire the services or outside consultants to provide advice and assistance.8 Change Agents Change agents: Can be managers or nonmanagers. and personnel. role-plays and instruments. Trainer A change agent needs to be a trainer and educator. . In contrast.9 Role of Change Agents The change agent may play different roles according to the need of organization development . cases and experiential learning etc. or as fog lamp when the future is hazy. He has to educate people on the need and importance o change using a variety of methodologies – lectures.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. changing (intervening) and refreezing. The trainer role is most widely and intensively used at all stages of a change project: unfreezing. presentations. 4. operating procedures. but one thing he/she is not the driver”. can now be created for further diagnosis and to begin to formulate possible alternative actions that will improve relations. are disadvantaged because they usually have an inadequate understanding of the organization’s history. Because they are from the outside these individuals an offer can offer an objective perspective often unavailable to insiders. culture. as the shock absorber when the going is rough. internal staff specialists or managers when acting as change agents. as the accelerator to build up momentum. employees of the organization. Outside consultants.Subgroups.
skills and change in behavior. In process consultation. group. Training is used both in ‘content orientation’ and process orientation’. 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. 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.10 Summary OD intervention strategies are various activities which a consultant and client organization performs for improving organizational performance. diagnosis. team-work does not necessarily spurt group efforts 4. inter-group and total organization levels. What is Grid Training? How does it help in improving individual performance in an organization? 2.11 Terminal Questions 1. What is survey feedback as an intervention of OD? How does it provide base for other OD interventions? . 2. generation of new behavioral science knowledge. ________is antithesis of synergy in team-work which suggests that people working together on a common task may actually decrease their individual efforts. widely accepted and applied OD intervention for organizational improvement. 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. Grid Training was developed by –––––––––––– 3. 4. It focuses on skills. Sensitivity training focuses on small group ranging from ten to twelve. developing action plans based on feedback and follow-up. Data collection. attitudes and beliefs.Training is required for enhancing knowledge. The first step in survey feedback is ______ usually by a consultant based on a structured questionnaire. knowledge and processes necessary for effectiveness at the individual. Survey feedback usually proceeds with sequential activities involving data collection. Grid training focuses on individuals and groups to assess their own strengths and weaknesses. Useful hypothesis are to be formulated and tested. Teambuilding is most important. feedback of information.
Social loafing Answers to TQs: 1.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Data collection 2. Blake and Mouton.2 3.4 2. Beliefs in Organization Development Unit-05-Values.3. Refer section 4. Refer section 4. and Beliefs in Organization Development Structure: 5.1 Introduction Objectives 5. Assumptions.6 4. Refer section 4.12 Answers to SAQs and TQs SAQs: 1. Refer section 4. What is team-building? What are the stages of life cycle of a team? 4. Explain Change agents and discuss the role of change agents in detail.2 Definitions and . 3. Assumptions. 4. MU0002-Unit-05-Values.
7 Terminal Questions 5.4 Early Statements of OD Values and Assumptions 5.5. assumptions. · State the implications of OD values and assumptions. · Give the statement of OD values and assumptions.1 Introduction A set of values.2 Definitions A belief is a proposition about how the world works that the individual accepts as true. and beliefs constitutes an integral part of organization development. and they continue to evolve as the field itself evolves.5.1 Implications for Dealing with Individuals 5. 5.5.6 Summary Self Assessment Questions 5.2 Implications for Dealing with Groups 5. Most of these beliefs were formulated early in the development of the field. beliefs and assumptions. Objectives: After studying this unit. . it is a cognitive fact for the person. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers.3 Chronology of Events in Management and Organization Thought 5.8 Answers to SAQs and TQs 5.3 Implications for Designing and Running Organizations 5.5 Implications of OD Values and Assumptions 5. beliefs and assumptions. shaping the goals and methods of the field and distinguishing OD from other improvement strategies. · List the chronology of events of values. you will be able to: · Explain the meaning of values.5.
view all people as having the potential for growth and development. Values and assumptions do not spring full grown from individuals or societies they are formed from the collective beliefs of an era-the zeitgeist. and the need for justice through the rule of law and due process. and goodwill are the tools for making progress. repetitive tasks in an attempt to find "the one best way" to do each job. dishonesty). . Humanistic values proclaim the importance of the individual: respect the whole person." Assumptions are beliefs that are regarded as so valuable and obviously correct that they are taken for granted and rarely examined or questioned. research on the effects of different leadership styles. 5. Values. greater understanding of individual motivation and group dynamics. and the like. the right of people to be free from arbitrary misuse of power. assumptions. Thus. they were fashioned into a coherent value foundation for the theory and practice of organization development. the clash between fascism and democracy in World War II. values. Expert engineers and supervisors designed each task and ensured it was done correctly.3 Chronology of Events in Management and Organization Thought Frederick Winslow Taylor’s ‘The Principles of Scientific Management’ (1911) launched the scientific management movement with its emphasis on time and motion studies and breaking jobs into small. the importance of fair and equitable treatment for all. the laboratory training movement. optimistic. As these ingredients accumulated.. or spirit of the time. and democratic. assumptions. increasing awareness of the dysfunctions of bureaucracies.Values are also beliefs and are defined as: "Beliefs about what is desirable or ‘good’ (e." or slacking off. Democratic values assert the sanctity of the individual..g. Optimistic values posit that people are basically good. and that rationality. and beliefs are all cognitive facts or propositions. OD values tend to be humanistic. and beliefs provide structure and stability for people as they attempt to understand the world around them. the human relations movement.g. reason. assume that everyone has intrinsic worth. free speech) and what is undesirable or ‘bad’ (e. repetitive tasks minimized the skills required to do the job. and assumptions being. treat people with respect and dignity. with values being beliefs about good and bad. relatively unexamined beliefs accepted as the truth. Simple. Major ingredients of the zeitgeist that influenced OD values and assumptions are presented here in a brief chronology. Taylor’s methods quickly swept the country and the world as the way to organize work. Evidence for the validity of these values and their supporting assumptions comes from many sources – the Hawthorne studies. Piece-rate pay systems were designed to increase motivation and to prevent "soldiering. that progress is possible and desirable in human affairs. strongly held.
A strong hierarchy of authority. Much of her career was devoted to finding ways to reduce adversarial relationships between workers and management. 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. and the supervisor determined their performance. Some early experiments were conducted in the late 1930s. impersonal rules. Barnard viewed organizations as social systems that must be effective (achieve goals) and efficient (satisfy the needs of employees). Barnard (1938) presented insights from his experiences as President of the New Jersey Bell Telephone Company. by Roethlisberger and Dickson in 1939. much of the research. a management theorist and astute observer of labourmanagement relations. Lippitt (1939). theory. aggressiveness and poor performance. In a sense. People came to work as whole people. extensive division of labor. and practice since the late 1920s have focused on the shortcomings of these two paradigms and how to overcome the limitations. Democratic leadership seemed to bring out the best in the groups. The Famous Hawthorne Studies (1927 to 1932) were conducted at the Hawthorne plant of Western Electric Company. Reports on these studies by Mayo in 1933 and 1945. authoritarian leadership caused dependency. and by Homans in 1950 profoundly and irreversibly affected people’s beliefs about organizational behaviour. apathy. His acceptance theory of authority proposed that authority derives from the willingness of subordinates to comply with directions rather than from position power. ‘The Functions of the Executive’ by Chester 1. and rigid procedures would create a well-oiled human machine called the organization. The great German sociologist Max Weber (1922) introduced the concept of “bureaucracy” as the best. The research demonstrated the primacy of social factors on productivity and morale. . most efficient way to organize people. People were not cogs. the work environment. their feelings and attitudes about the work. repetitive jobs left them feeling alienated and dispirited. wrote an article on “The Giving of Orders” advocating participative leadership and joint problem-solving by labour and management. and White demonstrated that democratic leadership was superior to authoritarian leadership and laissez-faire leadership in affecting group climate and group performance. but also contained serious flaws that led to unintended consequences. Mary Parker Follett (1926). Group Dynamics (1940) – The scientific study of groups using experimental research methods-was launched by Kurt Lewin and his students. Research by Lewin. Their simple. organizations were not machines. Group norms had more powerful effects on productivity than economic incentives. These approaches possessed many desirable features.
Rogers’ focus on effective interpersonal communications was applicable to superior-subordinate relations.” 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. a direct precursor of OD. Laboratory training taught people how to improve interpersonal relations. Douglas McGregor wrote ‘The Human Side of Enterprise’ (1960) in which he described his famous Theory X and Theory Y assumptions. lack ambition. French’s (1948) article. The human relations movement advocated participative management. The Hawthorne Studies (1940s to 1960) spawned the human relations movement that was in full flower from the 1930s to the 1960s. Carl Rogers’ Client-Centered Therapy (1951) demonstrated the efficacy of non-directive psychotherapy. The theory postulated that when lowerlevel needs are satisfied. Eric Trist and Ken Bamforth of the Tavistock Clinic (1951) published the results of their work in British coal mines. 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. 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. proposed that the leadership functions of a group should be shared between the leader and group members and showed how that could be done. These years witnessed the beginnings of the laboratory training movement (1946 and 1947). greater attention to workers’ social needs. P. increase self-understanding. training in interpersonal skills for supervisors. pioneers in laboratory training. which holds that individuals have within themselves the capacity to assume responsibility for their behaviour and mental health when provided with a supportive. and a general “humanizing” of the workplace. higher-level needs become dominant. are self-centered. caring social climate. Humanistic and democratic values suffused the movement. healthy adults. Lester Coch and John R. This article introduced the concept of organizations as sociotechnical systems. and understand group dynamics. . 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. Motivation and Personality by Abraham Maslow (1954) presented a new view of human motivation. “Overcoming Resistance to Change. Ken Benne and Paul Sheats (1948). Those who subscribe to Theory X assume that people are lazy.
and need to be led. theory. Values have always been an integral part of OD. and values of the field. practice. Tannenbaum and Davis presented their ideas in an article appearing in Industrial Management Review. the initial enthusiasm for scientific management. and shares decision-making with the work group. 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. management practices. The Bennis and Beckhard quotations come from their books in the Addison-Wesley Six-Pack. This chronology captures most of the significant influences from research. a mechanistic organization structure may be appropriate. open communications. to assume responsibility. in an environment of high change. ‘The Social Psychology of Organizations’ by Daniel Katz and Robert L. bureaucracy. and human resource practices to allow individual potential to be released. optimistic. as we have said. and greater individual autonomy. This leadership style was contrasted with an authoritarian. and democratic. and to pursue organizational goals if given the chance and the social environment to do so. summarized the state of organization development a decade or so after its inception. In an environment of slow change. In addition to presenting Theory X and Y. We will examine three early statements regarding OD values that had a significant impact on the field. Burns and Stalker (1961) described two very different forms of organization structuremechanistic and organic. To summarize the intellectual climate of this period.indifferent to the organization’s needs. and organizations that is. The Addison-Wesley Publishing Company “OD Six-Pack. resist change.” (1969) a set of six little books on OD by prominent practitioners. groups. goal-oriented. one-on-one leadership style. These six books presented the theory. this book popularized Maslow’s motivation theory. . The task of management is to change organizational structures. organization development practitioners formulated a set of values and assumptions regarding people. and authoritarian leadership gave way to increasing doubts about these organizational practices as theory and research pointed up their limitations. and negative consequences. Organic structures encourage decentralized decision making and authority. Out of this zeitgeist. and introduced practicing managers to the concepts of need hierarchy and self-actualization. Kahn (1966) presented the first comprehensive exposition of organizations as open systems. Those who subscribe to Theory Y assume that people have the potential to develop. humanistic. dysfunctions. and observations utilized by OD practitioners. an organic organization form is preferred.
and unprincipled power.Writing in 1969. He listed these normative goals as follows: · Improvement in interpersonal competence. This is a strong reaction against the idea of organizations as mechanisms which managers "work on. · Development of more effective "team management. The earlier work by Tom Burns and G. Through focused attention and through the collection and feedback of relevant data to relevant people. Here is his list. more choices become available and hence better decisions are made. not individuals. more rational and open methods of conflict resolution are sought. Another major player in the field was Richard Beckhard. Bennis clarified some of the salient differences between mechanical systems and organic systems. Rather than the usual bureaucratic methods which rely mainly on suppression. In his 1969 book he described "several assumptions about the nature and functioning of organizations" held by OD practitioners." that is. . The basic building blocks of an organization are groups (teams). the capacity for functional groups to work more competently." 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 better methods of conflict resolution. Warren Bennis proposed that OD practitioners (change agents) share a set of normative goals based on their humanistic/ democratic philosophy. · A shift in values so that human factors and feelings come to be considered legitimate." like pushing buttons. Stalker used the term “mechanistic” in contrast to “mechanical.” For example. the basic units of change are groups. 1. M. Therefore." Mechanical systems insist on "strict division of labour and hierarchical supervision" while organic systems foster "multi-group membership and responsibility. mechanical systems rely on "authority-obedience relationships" while organic systems rely on "mutual confidence and trust. compromise. · Development of organic rather than mechanical systems." Mechanical systems encourage "centralized decision-making" while organic systems encourage "wide sharing of responsibility and control. · Development of increased understanding between and within working groups in order to reduce tensions.
· Away from walling off the expression of feelings toward making possible both appropriate expression and effective use. Robert Tannenbaum. a professor and Sheldon Davis. director of organization development. rather than in a particular role or level of hierarchy. Decision-making in a healthy organization is located where the information sources are. · Away from maskmanship and game-playing toward authentic behaviour. and confidence between and across levels. and individuals continuously manage their affairs against goals. · Away from use of status for maintaining power and personal prestige toward use of status for organizationally relevant purposes. 4. not the basis of managerial strategy. . Controls are interim measurements. · Away from distrusting people toward trusting them. · Away from resisting and fearing individual differences toward accepting and utilizing them. "People support what they help create. presented their view of OD values in a 1969 article. · Away from avoidance of negative evaluation of individuals toward confirming them as human beings. · Away from a view of individuals as fixed. Organizations." People affected by a change must be allowed active participation and a sense of ownership in the planning and conduct of the change. An always relevant change goal is the reduction of inappropriate competition between parts of the organization and the development of a more collaborative condition. · Away from avoiding facing others with relevant data toward making appropriate confrontation. 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. toward seeing them as being in process. One goal of a healthy organization is to develop generally open communication. 3.2. 5. 6. mutual trust. · Away from utilizing an individual primarily with reference to his or her job description toward viewing an individual as a whole person. 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. sub-units of organizations.
give autonomy. The democratic values prompted a critique of authoritarian. remove obstacles and barriers. permit failure.5 Implications of OD Values and Assumptions Let us examine specific assumptions and their implications for organization leaders and members. 5. The humanistic values prompted a search for better ways to run organizations and develop the people in them. Most people want to develop their potential. and organizations? 5. give responsibility. and so forth were seldom espoused and rarely implemented in the vast majority of organizations at that time. autocratic. open communication.· Away from avoidance of risk-taking toward willingness to risk. The second assumption is that most people desire to make. The first assumption is that most individuals have drives toward personal growth and development if provided an environment that is both supportive and challenging. A tremendous amount of constructive energy can be tapped if organizations realize and act on these assumptions. participation and contribution by all organization members. decentralized decision making. 5. These values and assumptions may not seem profound today. and are capable of making. and reward success.2 Implications for Dealing with Groups . and arbitrary management practices as well as the dysfunctions of bureaucracies.5. The implications of these two assumptions are straightforward: Ask. a greater contribution to attaining organization goals than most organizational environments permit. Beliefs such as trust and respect for the individual. set high standards. encourage risk-taking. groups. We answer the question: What are some of the implications of OD assumptions and values for dealing with individuals.1 Implications for Dealing with Individuals Two basic assumptions about individuals in organizations pervade organization development. listen. the legitimacy of feelings. but in the 1950s and 1960s they represented a radical departure from accepted beliefs and assumptions. · Away from a view of process work as being unproductive effort toward seeing it as essential to effective task accomplishment. We think most organization development practitioners held these humanistic and democratic values with their implications for different and "better" ways to run organizations and deal with people. appropriate uses of power. challenge. · Away from a primary emphasis on competition toward a much greater emphasis on collaboration. collaboration and co-operation.5. The people doing the work are generally experts on how to do it and how to do it better. support. authentic interpersonal relations.
Let teams flourish because they are often the best way to get work done and. and usually with more than one group. such as a work group. most people are capable of making greater contributions to a group’s effectiveness and development. grouping by specialized function. One implication is that group members should receive training in group effectiveness skills such as group problem-solving and decision-making. And because suppressed feelings and attitudes adversely affect problem-solving. not a one-on-one leadership style. conflict management. a church or club group. invest energy and intelligence in creating a positive climate. including peers and boss. What occurs in the work group. invest training time and money to increase group members’ skills. They cannot meet the demands of the marketplace. leaders should invest in groups: Invest the time required for group development. not individuals. the assumption is that many attitudinal and motivational problems in organizations require interactive and transactional solutions.5. Finally. Second. adherence to the chain of command. group members should assist the leader with the multiple roles required for group effectiveness. The question becomes not how A can get B to perform better. and job satisfaction. In addition. the family. and co-operation within the group. Another assumption is that the formal leader cannot perform all the leadership and maintenance functions required for a group to optimize its effectiveness. Implications of these assumptions are several. 5. Therefore. most people wish to be accepted and to interact co-operatively with at least one small reference group. in which one side wins and the other side loses.Several assumptions relate to the importance of work teams and the collaborative management of team culture. group members should be encouraged to learn to deal effectively with positive and negative feelings. one of the most psychologically relevant reference groups for most people is the work group. greatly influences feelings of satisfaction and competence. This skill is a trainable one. It is especially important that leaders adopt a team leadership style. leaders need to give important work to teams. Such problems have the greatest chance of constructive solution if all parties in the system alter their mutual relationships. facilitation. emphasis on topdown directives. are dysfunctional . Dealing appropriately with feelings and attitudes increases the level of interpersonal trust. D. and E can support these changes. at both the formal and informal levels. Hence. in addition. Third. experimenting with new organization structures and new forms of authority is imperative. and so on-are obsolete. Also. By implication. 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. including how persons C. traditional hierarchical forms of organization-fairly steep pyramid. a growing awareness that “win-lose” organizational situations.3 Implications for Designing and Running Organizations Clearly. To do this. and so on. personal growth. are the best way to satisfy social and emotional needs at work. and interpersonal communication. support. Frequently the challenge is broader. First. formalized cross-functional communication. 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.
it is possible to create organizations that on the one hand are humane. they change over time. These OD values were considered revolutionary when they emerged in the 1950s. quality of output. developmental set of assumptions about people is likely to reap rewards beneficial to both the organization and its members. By implication. Chronology of events in management and OD tremendously influenced OD practitioners. assumptions and beliefs help to define what OD is and guide its implementation." as behavioural scientists and managers continue to develop better understanding of authority structures. optimistic and democratic. Values. they are the source of productivity and profits and should be treated with care. Still. The belief that people are important tends to result in their being important. an optimistic. developmental. Concluding Comment: The field of organization development rests on a foundation of values and assumptions about people and organizations. beliefs and assumptions are cognitive facts. Creating co-operative rather than competitive organizational dynamics is a primary task of the organization’s leaders. The belief that people can grow and develop in terms of personal and organizational competency tends to produce that result. OD values tend to be humanistic. 5. Self Assessment Questions . A belief is a proposition about how the world works that the individual accepts as true. A key assumption in organization development is that the needs and aspirations of human beings are the reasons for organized effort in society. These beliefs help to define what OD is and guide its implementation. and organizational changes taking place assure that tomorrow will bring new definitions of what is "true" and new beliefs about what is "good.over the long run and highlight the need for a “win win” attitude. The implication is that people are an organization’s most important resource. and empowering. Values. organizing structures. Values are also beliefs. This notion suggests it is good to have a developmental outlook and seek opportunities in which people can experience personal and professional growth. values are never static. and on the other hand are high performing in terms of productivity. Such an orientation creates a self-fulfilling prophecy. and profitability. The rapid technological. societal. This discussion was intended to articulate an appreciation of OD values and explain where they came from. Finally. Evidence for this assumption comes from numerous examples where “putting people first” paid off handsomely in profits and performance. but are widely accepted today.6 Summary The field of OD rests on a foundation of values and assumptions about people and organizations. and ways to optimize human potential.
State the assumptions of Theory X and Theory Y. Refer section 5. values. Cognitive 2. W.2 2.W. Taylor’s principles of scientific management. Douglas McGregor Answers to TQs: 1. 3. Taylor 3. Bureaucracy 4. Refer section 5.7 Terminal Questions 1. _______________ gave theory X and theory Y. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. 5. 2. Define concepts. 5. 4. F.8 Answers to SAQs and TQs SAQs: 1. beliefs and assumptions. The outcome of –––––––– was that people were not cogs and organizations were not machines. Values. 2. __________ is associated with scientific management. beliefs. and assumptions are all –––––––––– facts. 3.3 . Write a note about F.3 3. Refer section 5.1. The concept of –––––––––– was introduced by MaxWeber. What was the outcome of Hawthorne Experiments? 4. Hawthorne experiments 5. 5.
220.127.116.11.3 5.3 Systems Theory 6.3 Socio-technical Theory and Open Systems Planning 6.2.4 Porras and Robertson Model of Organizational Change 6.3.2 Congruence among System Elements 6.2 Models and Theories of Planned Change 6.2. Refer section 5. Refer section 5.2 Beyond the Quick Fix 6.4 Participation and Empowerment .1 The Nature of Systems 6.3 Copyright © 2009 SMU Powered by Sikkim Manipal University .4 Open Systems Thinking 6.1 Kurt Lewin and Friends 6.1 Introduction Objectives 18.104.22.168 The Burke-Litwin Model of Organizational Change 6. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.
· Explain normative-re-educative strategy of changing The knowledge base of OD is extensive and is constantly growing.9 Action Research Self Assessment Questions 6. We will examine the following concepts: .11 Terminal Questions 6. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs. art and science which form the knowledge base upon which OD is constructed. In this discussion.6 Parallel Learning Structures 6. · Explain the terms ‘participation’ and ‘empowerment’. · Realize the importance of teams and teamwork.1 Introduction This unit describes the foundations of organization development theory and practice. Objectives: After studying this unit.7 A Normative – Re-educative Strategy of Changing 6. · Describe the parallel learning structures.8 Applied Behavioural Science 6.12 Answers to SAQs and TQs 6. Here we describe what we believe are the most important underpinnings for the field. · Explain systems theory.5 Teams and Teamwork 6. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning.6.10 Summary 6. you will be able to: · Explain various models and theories of planned change.
the status quo-whatever is happening right now-is the result of forces pushing in opposing directions.2. 6.· 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. we can think of the production level of a manufacturing plant as a resultant equilibrium point in a field of forces. He suggested that change is a three-stage process: . The first idea states that what is occurring at any point in time is a resultant in a field of opposing forces. Several recent theories show great promise for increasing our understanding of what happens and how it happens in planned change. some forces pushing toward higher morale and some pushing toward lower morale. 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.2 Models and Theories of Planned Change Organization development is planned change in an organizational context. we can think of the level of morale in that plant as a resultant equilibrium point. the important features of some phenomenon. The production level tends to remain fairly constant because the field of forces remains fairly constant. Likewise. The development of models of planned change facilitated the development of OD. Models and theories depict. Although morale may get a little better or a little worse on occasion. Lewin’s second idea was a model of the change process itself. For example.1 Kurt Lewin and Friends Kurt Lewin introduced two ideas about change that have been influential since the 1940s. With a technique called the force-field analysis. Planned change theories are rudimentary as far as explaining relationships among variables. This concept is useful for thinking about the dynamics of change situations. and specify the relationships among the variables. Here we provide a framework for thinking about planned change by exploring several models from the literature. with some forces pushing toward higher levels of production and some forces pushing toward lower levels of production. in words or pictures. describe those features as variables. but pretty good for identifying the important variables involved. That is.
Lewin’s three-stage model is a powerful tool for understanding change situations. Disconfirmation or lack of confirmation b. etc. Provision of psychological safety Stage 2: Changing through Cognitive Restructuring: Helping the client to see things. change his behaviour from being a smoker to being a non-smoker.non-smoking becomes the new equilibrium point. feel things. b. the person must develop a sense of psychological safety in order to replace the old behaviours with new behaviours. which motivate the person to change. b. Edgar Schein took this excellent idea and improved it by specifying the psychological mechanisms involved in each stage. A Three-Stage Model of the Change Process: Stage 1: Unfreezing: Creating motivation and readiness to change through a. Creation of guilt or anxiety c. The three-stage model says he must first unfreeze the old behaviour of smoking. that is. and react to things differently based on a new point of view obtained through a. he must move. Change entails moving from one equilibrium point to another. that is. disconfirmation creates pain and discomfort. Refreezing the behaviour at the new level. the non-smoking behaviour must become permanent. believe that cigarette smoking is bad for him and that he should stop smoking. which cause guilt and anxiety. Significant relationships. unfreezing. moving to new level of behaviour. Next. The total personality and self-concept. Take the example of a man who smokes cigarettes and wants to quit. That is. . mentor. change will not occur. Scanning the environment for new relevant information Stage 3: Refreezing: Helping the client to integrate the new point of view into a. Refreezing the desired behaviour requires establishing a new field of forces to support the new behaviour. judge things. But unless the person feels comfortable with dropping the old behaviours and acquiring new ones. In stage 1. Identifying with a new role model. Finally.Unfreezing the old behaviour (or situation).
This model has five sequential stages: 1) Initiating the program. This phase corresponds to Lewin’s unfreezing phase. Phase 3: Clarifying or diagnosing the client system’s problem. for example.2 Beyond the “Quick Fix” A comprehensive change model by Ralph Kilmann specifies the critical leverage points for organizational change.In stage 2. and 5 correspond ro Lewin’s moving phase. That is. 6. This phase corresponds to Lewin’s refreezing phase. the person undergoes cognitive restructuring. establishing goals and intentions of action. In this phase a client system in need of help and a change agent from outside the system establish a working relationship. 4. stabilizing the changes requires testing to see if they fit-fit with the individual. The person acquires information and evidence showing that the change is desirable and possible. Phases 3. Phase 7: Achieving a terminal relationship. They expanded the three-stage model into a seven-stage model representing the consulting process. The primary task in stage 3. These "road maps" are useful for thinking about change. Phase 6: Generalizing and stabilizing change. Their seven stages are as follows: Phase 1: Developing a need for change. is to integrate the new behaviours into the person’s personality. 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. that is. refreezing. and fit with the individual’s social surroundings. Phase 4: Examining alternative routes and goals. moving. This seven-stage model lays out the logical steps involved in OD consulting. . This motivating evidence is gained by. Jeanne Watson. and Bruce Westley. Similar models have been developed by Kolb and Frohman and by Burke. Phase 2: Establishing a change relationship.2. identifying with ex-smokers and learning about the health risks of smoking. and attitudes. terminating the client-consultant relationship. Phase 5: Transforming intentions into actual change efforts.
Scheduling and implementing the "tracks" involve intervening in five critical leverage points.2) Diagnosing the problems. and 5) The reward system track. Change programs take from one to five years to complete. Initiating the program entails securing commitment from top management. The management-skills track provides all management personnel with new ways of coping with complex problems and hidden assumptions. problem-solving sessions. 3) Scheduling the "tracks". 3) The team-building track. . and willingness to change among members the conditions that must exist before any other improvement effort can succeed. 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. information sharing. cause the organization to be successful. Diagnosing the problems requires a thorough analysis of the problems and opportunities facing the organization. called "tracks. critique practices and procedures. and so forth. when functioning properly. 4) Implementing the "tracks" 5) Evaluating the results. Interventions include training programs. Kilmann’s five tracks are: 1) The culture track. These problems and opportunities will be the targets of later interventions." that. 4) The strategy-structure track. Kilmann describes the five tracks: What does each track do for the organization? The culture track enhances trust. 2) The management skills track. communication.
This model shows how to create first-order and second-order change (which the authors call “transactional change” and “transformational change”). adaptive. developed by Warner Burke and George Litwin.3 The Burke-Litwin Model of Organizational Change The next model to be examined is the Burke-Litwin model of individual and organizational performance. often unconscious. and so forth. General Foods. radical. and co-operative team efforts within and among all work groups. hard-working or easy-going. The premise of the BurkeLitwin model is this: OD interventions directed toward structure. In second-order change. and . values. Second-order change goes by many different labels: transformational. jobs. Westinghouse. OD programs are directed toward both first. and Xerox with good results. First-order change goes by many different labels: transactional. These perceptions are relatively easy to change because they are built on employees’ reactions to current managerial and organization practices. The model distinguishes between organizational climate and organizational culture. management practices. and its holistic view of organization change and development. organizational culture is defined as deep-seated assumptions. the nature of the organization is fundamentally and substantially altered – the organization is transformed. the use of updated management skills. and beliefs that are enduring. Changing culture is much more difficult than changing climate. Eastman Kodak. incremental.2. and difficult to change. departments. with an increasing emphasis on second-order transformational change. The reward-system track establishes a performance-based reward system that sustains all improvements by officially sanctioning the new culture. One likes this model because of its comprehensive nature. then moving to the team-building track. then moving to the management skills track.The strategy-structure track develops either a completely new or a revised strategic plan for the firm and then aligns divisions. revolutionary. and so forth. and all resources with the new strategic direction. its identification of the five tracks as critical leverage points.and second-order change. Organizational climate is defined as people’s perceptions and attitudes about the organizationwhether it is a good or bad place to work. 6. In first-order change. work groups. some features of the organization change but the fundamental nature of the organization remains the same. friendly or unfriendly. Ford General Electric. evolutionary. TRW. beginning with the culture track. Kilmann has tested his model at AT&T. or continuous change. or discontinuous change. An OD consultant implements the tracks in a phased sequence. On the other hand.
We will do so in several steps. and organization culture result in second-order change. Now let us look at the Burke-Litwin model. individual and organizational performance. and systems cause changes in work unit climate. 6. management practices. in turn. These two concepts come from leadership research which found that some leaders are capable of obtaining extraordinary performance from followers while other leaders are not. interventions directed toward mission and strategy.1: The Transactional Factors Involved in First – Order Change . The model also makes a distinction between transactional and transformational leadership styles. Transactional leadership is sufficient for causing first-order change." Transformational leadership embodies inspiration which leads to new heights of performance. Transformational leadership is required for causing second-order change. Changing structure. Transactional leadership is required to make this change in organizational climate. Transformational leaders are "leaders who inspire followers to transcend their own self-interest for the good of the organization and who are capable of having a profound and extraordinary effect on their followers. which change motivation and." Transactional leadership embodies a fair exchange between leader and follower that leads to "normal" performance. leadership. Fig. Following figure shows the factors involved in first-order (transactional) change. Transactional leaders are "leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements.systems (policies and procedures) result in first-order change.
The above two figures together yield the full Burke-Litwin model shown in the following figure. Interventions directed toward management practices. These factors are powerful enough to change the culture fundamentally. To summarize. The bottom half of figure displays the factors involved in transactional change. Burke says: “Thus there are two distinct sets of organizational dynamics. Burke and Litwin propose that interventions directed toward leadership. which produces changes in individual and organizational performance. The top half of figure displays the factors involved in transformational change. Research by Burke and his students suggests the model performs as intended.” We consider the Burke-Litwin model to be a significant advance in thinking about planned change. and organization culture produce transformational change or fundamental change in the organization’s culture. as shown in the above figure. leadership styles. that is. sudden "leaps" in behaviour. Interventions directed toward these factors transform the organization and cause a permanent change in organization culture. The OD practitioner sizes up the change situation. . The second set of dynamics is concerned with processes of human transformation. determines the kind of change required (transactional or transformational). 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. These factors are able to change the climate.Fig. 6. if we want to cause second-order (transformational) change. these transformational processes are required for genuine change in the culture of an organization. and then targets interventions toward factors of the organization that produce the desired change. structure. mission and strategy.2: The Transformational Factors Involved in Second – Order Change On the other hand. and organization culture. and systems produce transactional change or change in organizational climate.
OD interventions that focus on goals. and interaction processes will affect social factors.2. rewarded). which in turn lead to individual and organizational improvements. The basic premise is that OD interventions alter features of the work setting causing changes in individuals’ behaviours. it is described in a discussion by Porras and Peter Robertson. The work setting plays a central role in this model and consists of four factors: organizing arrangements. Following figure shows the work setting in the larger organizational framework. management style.3: The Burke Litwin Model of Organizational Performance and Change 6. 6. social factors.4: Organizational Work-Setting Factors This model is extremely useful for OD practitioners and organizational leaders.4 Porras and Robertson Model of Organizational Change Jerry Porras and his associates developed a model of how organization development works. and these behaviour changes occur when elements of the work setting have been modified by OD interventions. It is how OD works. The premise modeled here is that work setting factors influence organizational members’ cognitions (they learn what is expected. and rewards will affect organizing arrangements. This model shows how OD interventions can be linked to factors in the work setting. which influence on-the job behaviours. required. physical setting. Keep this framework in mind as you read the units on OD interventions because all interventions target one or more factors shown in figures. Interventions that focus on job design and work flow design will affect technology. strategies. . according to Porras and Robertson.Fig. Fig. which determine organizational performance and individual development. Organizational change occurs only when individuals change their behaviour. For example. and technology. Interventions that focus on culture. 6.
unitary whole composed of two or more interdependent parts. 6. system denotes interdependency.system.3 Systems Theory A second foundation of organization development is systems theory. one begins by identifying the individual parts and then seeks to understand the nature of their collective interaction. .Fig. and Katz and Kahn were the first to apply open systems theory to organizations in 1966." Hanna says: "A system is an arrangement of interrelated parts." Von Bertalanffy refers to a system as a set of "elements standing in interaction. This section explains systems theory. and interrelatedness among elements in a set that constitutes an identifiable whole or gestalt. interconnectedness. which views organizations as open systems in active exchange with their environment. that is the system. The words ‘arrangement’ and ‘interrelated’ describe interdependent elements forming an entity. describes the characteristics of systems." To summarize. or subsystems.5: A Change-based Organizational Framework 6. Fagen defines system as "a set of objects together with relationships between the objects and between their attributes. Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950. Thus. Systems theory is one of the most powerful conceptual tools available for understanding the dynamics of organizations and organizational change. and delineated by identifiable boundaries from its environmental supra." Kast and Rosenzweig define system as "an organized. components. when taking a systems approach. and shows how systems theory enhances the practice of OD.
the organization will cease to exist. or transformation processes that change the inputs. resources. conversion. money. Therefore. the organization’s purposes will be reflected in its outputs. and if the environment does not want these outputs. and what is outside the boundary is the environment. 6. Each of these three system processes must work well if the system is to be effective and survive. What is inside the boundary is the system. dynamics. Organizations are open systems. raw material and so on. and they export products to the environment in the form of outputs. the reasons for their existence.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.1 The Nature of Systems The nature. and energy between system and environment. studying open systems leads to a good understanding of organizations. Here. Open systems have purposes and goals. Every system is delineated by a boundary.3.6. Fig. . in that they permit exchange of information. and characteristics of open systems are well-known. people. Boundaries of open systems are permeable. They do something to the inputs via throughput. These purposes must align with purposes or needs in the environment. information. All open systems are input-throughput-output mechanisms. A good rule of thumb for drawing the boundary is that more energy exchange occurs within the boundary than across the boundary. we examine the characteristics of open systems drawing OD expositions by Katz and Kahn and Hanna. Organizations achieve negative entropy when they are able to exchange their outputs for enough inputs to keep the system from running down. For example. Systems take inputs from the environment in the form of energy.
Subsystems exist within larger systems. specialized. Another characteristic of systems is equifinality. Say your company makes buggy whips. but most are not useful. increased integration and co-ordination are necessary. if a rocket ship traveling to the moon strays off its trajectory. differentiated. By the same token. Systems achieve a steady state or equilibrium point and seek to maintain this equilibrium against disruptive forces. say. It is sometimes called deviation-amplifying feed back. For example. the principle that there are multiple ways to arrive at a particular outcome or state – systems have multiple paths to goals. while screening out other information. eating fads. Positive feedback measures whether or not the purpose and goals are aligned with environmental needs. The three major input factors are: . it will signal whether the environment needs and/or wants buggy whips. mining. Systems require two kinds of feedback. It is also known as deviation-correcting feedback. Feedback is information from the environment about system performance. Negative feedback tells you if you are on track with your scheduled production output. "return to earth. and so on. As Katz and Kahn say: “The basic principle is the preservation of the character of the system. These subsystems can be arranged into a hierarchy of systems moving from less important to more important. Positive feedback comes from the environment. that information is called positive feedback. Negative feedback measures whether or not the output is on course with the purpose and goals. it receives information to that effect in the form of negative feedback. For example. Systems "code" useful information and incorporate it. and the system adjusts to a new goal. 6. competitors. they usually ignore information about other industries such as electronics. this process is called differentiation. negative and positive. organizations in the fast-food industry pay a lot of attention to information about their industry-nutrition. Systems are bombarded by all kinds of information: some are useful.Information is important to systems in several ways. aerospace. either internal or external. and makes a course correction. however. This model depicts the organization as an input-throughput-output system." Here is another example of negative and positive feedback. and the like. and the production plan calls for 100 buggy whips per month. Another characteristic of open systems is steady state or dynamic homeostasis. With increased differentiation. systems tend to get more elaborated. Survival of the system is equally influenced by whether or not the targets themselves are appropriate. and complex over time.2 Congruence among System Elements David Nadler and associates at Delta Consulting Group developed the congruence model for understanding organizational dynamics and change.3. If the mission (target) changes.” Also. The usefulness of the two concepts is that they demonstrate that it is not enough to merely measure our outputs versus the intended targets.
Fig. and technology. formal organization. knowledge. perceptions." The premise is that alignment (harmony. and informal organization. which imposes constraints and opportunities about what the organization can and can not do. . You can use this model to analyze organizations with which you are familiar.1) The environment. performance will suffer. Elements of the organization per se are labeled strategy. which includes skills. For example. if people don’t have the skills and knowledge required to do the work. and the workforce’s expectations. such as capital. 6. If the organization’s culture (informal organization) praises individual accomplishments and the work requires teamwork and collaboration. In a company that is performing poorly. fit) must be present among the system’s components’ for the organization to produce satisfactory outputs. important events. knowledge. and individual level. 2) Resources available to the organization. If the strategy calls for entrepreneurial quickness and risk-taking and the formal organization is bureaucratic and highly centralized. the tasks people perform to create products and service markets people. processes. performance will suffer. which includes the organization’s culture informal rules and understandings.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. which includes formal structures. performance will suffer. and 3) History which consists of memories of past successes." and which elements . people. and 2) Evaluating the "goodness of fit" or how well the elements "go together. unit/group level. which components are "not functioning correctly. Outputs are performance at the total organization level. and systems for performing the work. what the organization is trying to accomplish and how it plans to do it. work. and how things really work (versus how they are supposed to work as defined by the formal organization). and critical decisions that still influence behaviour today. failures.
controlling variance at the source. Charles Krone.socio-technical systems theory (STS) and open systems planning (OSP)-play an important role in organization development. Another important application of systems theory in organization development is open systems planning. 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. Hanna writes: In the late 1960s a small team of consultants led by James Clark. organizations must optimize both systems. Open systems planning entails: 1) Scanning the environment to determine the expectations of external organizations and stake-holders. 6. forming autonomous work groups.3. 2) Developing scenarios of possible futures. a social system and a technical system. both realistic (likely to happen if the organization continues on its current course) and ideal (what the organization would like to see happen). especially autonomous work groups (self-regulated teams or self-direct teams).are poorly aligned? In companies showing outstanding performance. and identifying core tasks help STS consultants structure organizations and tasks for maximum effectiveness and efficiency. Their technology became known as Open systems Planning (OSP). Principles such as optimizing the social and technical systems. G. A number of design principles have been developed to implement socio-technical systems theory. training group members in multiple skills. multi-skilled teams. and that changes in one system affect the other system. 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. two active segments of OD today.KI Jayaram. that is. to the workers doing the job. Systems models are essential for the practice of OD.3 Socio-technical Systems Theory and Open Systems Planning Two major variations of open systems theory. and others at the Tavistock Institute in the 1950s. giving information and feedback to the people doing the work. Fred Emery. Socio-technical systems theory was developed by Eric Trist. and Will McWhinney developed a technology for addressing the interface between organization and the environment. The thesis of STS is that all organizations are comprised of two interdependent systems. and . and information to the point of action. To achieve high productivity and employee satisfaction. High-performance organizations almost always use principles from socio-technical systems theory. STS is the principal conceptual foundation for efforts in work redesign and organization restructuring.
from diagnosis to intervention to evaluation. Most OD practitioners engaged in redesign projects use a combination of socio-technical systems theory and open systems planning. changing one part of a system influences other parts.” In conclusion. Of all these disciplines. and incidents are not viewed as isolated phenomena. and systems thinking.4 Open Systems Thinking Open systems thinking is required for creating learning organizations. Increased participation and empowerment .3) Developing action plans to ensure that a desirable future occurs. For example. He says of systems thinking: “It is the discipline that integrates the disciplines. from their activities. one changes the system. the fifth discipline. 6. this combination is often used in designing high-performance organizations. building shared vision. according to Peter Senge. is the most important. systems thinking. mental models. it is extended broadly throughout the organization.3. events. systems theory pervades the theory and practice of organization development. Senge believes that five disciplines must be mastered to create a learning organization: personal mastery. because most phenomena have more than one cause. fusing them into a coherent body of theory and practice.4 Participation of Empowerment One of the most important foundations of organization development is a participation/ empowerment model. It keeps them from being separate gimmicks or the latest organization change fads. 6. Second. issues. therefore. Participation in OD programs is not restricted to elites or the top people. OD practitioners expect multiple effects. according to field theory (Kurt Lewin). a systems approach encourages analysis of events in terms of multiple causation rather than single causation. By enhancing each of the other disciplines. but seen in relation to other issues. Third. First. there is no motivation to look at how the disciplines interrelate. team learning. to change a system. Learning organizations can cope effectively with rapidly changing environmental demands. This idea moves the practitioner away from analyzing historical events and toward examining contemporary events and forces. forces. the forces in the field at the time of the event are the relevant forces for analysis. Viewing organizations from this perspective has several consequences. events and forces. it continually reminds us that the whole can exceed the sum of its parts. Without a systemic orientation. And fifth. Fourth. not single effects. not just its component parts.
But both views contain valid ideas: for example. called "organic. search conferences. but rather a mind-set that employees have about their roles in the organization. and greatly enhance acceptance of decisions. to contribute their ideas. Robert Quinn and Gretchen Spreitzer found two vastly different views of empowerment. and empowerment in turn enhances performance and individual well-being. autonomous work groups." is bottom-up and less controlling. the organic approach unleashes talent and energy in people that are best channeled by providing clear guidelines and boundaries. and to be responsible. is not something that management does to employees. produce better solutions to problems. Participation is a powerful elixir-it is good for people and performance." is a top-down delegation of decision-making with clear boundaries and strict accountability that increases managerial control. they must if personally connected to . The entire field of OD is about empowerment. They believed that it was about risk-taking. personal initiative. Participation enhances empowerment. team building. quality of work life programs." direct leaders to push decision-making lower in the organization. which they call "mechanistic. employees must choose to be empowered. is the more useful perspective.have always been central goals and fundamental values of the field. The most important contrast between the two views involves the implicit but potentially volatile assumptions people make about trust and contro1. and change. Rules of thumb such as "Involve all those who are part of the problem or part of the solution. increase commitment to the organization." and "Have decisions made by those who are closest to the problem. These pillars of OD practice are validated by both research and practice. with its emphasis on risk-taking. to exert influence. which is done by giving individuals the authority to make decisions. They describe the organic view: "The other group of executives saw empowerment much differently. Quinn and Spreitzer conclude: “Empowerment. and growth. Participation is an especially effective form of empowerment. Research on group dynamics began in the 1940s and achieved exponential growth in the 1950s and 1960s. quality circles. and give more power to more people." These authors believe the organic view. To empower is to give someone power. OD interventions are deliberately designed to increase involvement and participation by organization leaders and members. involvement and participation energize greater performance. reduce stress levels. treat those closest to the problem as the relevant experts. The other view. One view. growth. This research demonstrated that most people desire increased involvement and participation. Empowerment meant trusting people and tolerating their imperfections. and generally make people feel better about themselves and their worlds. survey feedback. While management can create a context that is more empowering. and the culture audit are all predicated on the belief that increased participation will lead to better solutions. For example. Further. then. OD interventions are basically methods for increasing participation. Researchers found that group dynamics work to overcome resistance to change. They must see themselves as having freedom and discretion.
Fourth. and capable of having an impact on the system in which they are embedded. inter-group team-building. A second fundamental belief is that teams must manage their culture. quality circles. many tasks are so complex they cannot be performed by individuals. status. processes. The previous discussion focused on empowerment and concluded that the act of empowering individuals greatly increased their performance and satisfaction.” 6. . changes those norms and values. and relationships if they are to be effective. the effects on individual behaviour are immediate and lasting. "The evidence is abundantly clear: Effective teams produce results far beyond the performance of unrelated individuals. teaming. The message of this section is that putting those empowered individuals into teams creates extraordinary effects on performance and satisfaction. process consultation. confident about their abilities. Teams at Motorola produced its bestselling cellular phones. research. Team Taurus developed Ford’s best-selling automobile. Teams and teamwork are among the "hottest" things happening in organizations today – gurus extol the virtues of teams.the organization. much individual behaviour is rooted in the socio-cultural norms and values of the work team. In this section. teams create synergy. teams at 3M generate the hundreds of innovations that keep 3M ahead of its competition. If the team.5 Team and Teamwork A fundamental belief in organization development is that work teams are the building blocks of organizations. Synergy is a principal reason teams are so important. STS (socio-technical systems). the sum of the efforts of team members is far greater than the sum of the individual efforts of people working alone. Second. HPWSs (high-performance work systems). and explore ways to realize that potential. as a team. Third. crossfunctional "design-build" teams developed the Boeing 777. Teams and teamwork are "in. and team-related acronyms abound-SDTs (self-directed teams). HPOs (high-performance organizations). Team Saturn produced the Saturn automobile. that is. recognition. QCs (quality circles). teams satisfy people’s needs for social interaction. to name just a few. Examples are team-building. Teams and teamwork are part of the foundation of organization development. systems. we examine the potential of teams and teamwork. people must work together to accomplish them. Theory. Teams are important for a number of reasons: First. A number of OD interventions are specifically designed to improve team performance. the noun team has become a verb. and practice attest to the central role teams play in organizational success. and respectteams nurture human nature.
When any one feature is lost. the crew of the USS Kitty Hawk. Teams periodically hold team-building meetings. and set ever-higher goals. . heart transplant surgical teams. cross-functional teams. socio-technical systems programs. autonomous.parallel learning structures. Tom Peters asserts in Liberation Management that cross-functional. team performance declines. The net effect is that teams perform at increasingly higher levels. to determine the characteristics that make them successful. Asea Brown Boveri. 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. temporary teams. including collegiate football national champions. and the like. and responsibility charting. that they achieve synergy. Team-building activities are now a way of life for many organizations. Larson and LaFasto found eight characteristics always present: 1) A clear. help each other. role negotiation technique. Union Pacific Railroad. He uses examples from EDS (Electronic Data Systems). 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. empowered teams are what the best organizations are using right now to outdistance the competition. High-performance teams regulate the behaviour of team members. and others. Grid OD and techniques such as role analysis technique. and individuals are trained as group leaders and group facilitators. people are trained in group dynamics and group problem-solving skills. find innovative ways around barriers. and that teamwork becomes more satisfying for team members. Investigators are discovering why some teams are successful while others are not. All these characteristics are required for superior team performance. elevating goal 2) A results-driven structure 3) Competent team members 4) Unified commitment 5) A collaborative climate 6) Standards of excellence 7) External support and recognition Principled leadership. These interventions apply to formal work teams as well as startup teams. Larson and LaFasto studied a number of high-performance teams.
The quality of work life programs of the 1970s and 1980s used parallel structures composed of union leaders. superior customer service. parallel structures are a vehicle for learning how to change the system.6 Parallel Learning Structures Parallel learning structures. 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. and report to one of your subordinates on another team. talking. Bushe and Shani say: “The key thing about parallel structures is that they create a bounded space and time for thinking. If you don’t implement different norms and procedures. What’s important is that people act in a way that promotes learning and adaptation. Parallel learning structures are often the best way to initiate change in large bureaucratic organizations. 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. managers. projects will be performed by teams.” The purpose of the collateral organization is to deal with "ill-structured" problems the formal organization is unable to resolve. you don’t have a parallel structure. High responsibility. specially created organizational structures for planning and guiding change programs. In essence.” Parallel structures help people break free of the normal constraints imposed by the organization. Most socio-technical systems redesign efforts and open systems planning programs use parallel structures. deciding. and then leading the process. engage in genuine inquiry and experimentation. 6. normal hierarchical considerations become obsolete for these project teams-you could be the boss of one team. and continuous learning. The most important and difficult task for the people creating the parallel learning structure is to create a different culture within it. flexible response. constitute another important foundation of organization development. 6. and acting differently than normally takes place at work. High-performance organizations often use parallel structures to co-ordinate self-directed teams. It isn’t the supplemental structure that’s important. Projects are the work of the future. and countless other organizations to demonstrate the ability of small project teams to produce high quality. Parallel learning structures are a foundation of OD because they are prevalent in so many different OD programs.Titeflex. especially when the change involves a fundamental shift in the organization’s methods of work and/or culture. and high accountability drive these project teams to outperform traditional organization structures on every measurable dimension. and employees. clear objectives. Considerable experimentation with collateral organizations occurred in the 1970s and 1980s. a steering committee and working groups were used to co-ordinate the employee involvement teams.7 A Normative – Re-educative Strategy of Changing . and initiate needed changes. At Ford Motor Company. Interestingly.
and change comes through re-education in which old norms are discarded and supplanted by new ones. information. Anything hindering effective problem solving is brought to light and publicly examined. based on the assumption that change is compliance of those who have less power with the desires of those who have are power. based on the assumptions that people are rational. anxieties. Change in a pattern of practice or action. Chin and Benne indicate the nature of the normative-reductive strategy as follows: A second group of strategies we call normative-re-educative. . skills. the practitioner intervenes in a collaborative way with the clients. The rationality and intelligence of men are not denied. although often OD represents a combination of the normative-reeductive and the empirical-rational strategies. according to this view. The norms to be changed and the form of re-education are decided by the client system members. Chin and Benne suggest that a normative-re-educative." Solutions to problems are not a priori assigned to greater technical information but may reside in values. and will change if and when they come to realize change is advantageous to them. and it rests on a particular strategy for change that has implications for practitioners and organization members alike. and OD is based primarily on a normative-re-educative strategy and secondarily on a rational-empirical strategy. values. doubts. and’ negative feelings are surfaced for "working through.Organization development involves change. and they give more options to both the clients and the practitioner. Evaluated against these three change strategies. and together they define problems and seek solutions. they impel a collaborative effort rather than a "doing something to" effort. rather than the OD practitioner. Sociocultural norms are supported by the attitude and value systems of individuals-normative outlooks which undergird their commitments. And changes in normative orientations involve changes in attitudes. based on the assumptions that norms form the basis for behaviour. Chin and Benne describe three types of strategies for changing. not just changes in knowledge. strategy has the following implications for the practice of OD. that is. The third set of strategies is the power-coercive strategies. will follow their rational self-interest. or intellectual rationales for action and practice. The point here is that different strategies are available for effecting change. attitudes. These strategies build upon assumptions about human motivation different from those underlying the first. relationships and customary ways of doing things. The second group of strategies is normative-re-educative strategies. OD clearly falls within the normativere-educative category. and significant relationships. The client system members define what changes and improvements they want to make. The first type is empirical rational strategies. These implications give clients considerable control over the situation. Patterns of action and practice are supported – by socio-cultural norms and by commitments on the part of the individuals to these norms. will occur only as the persons involved are brought to change their normative orientations to old patterns and develop commitments to new ones.
norms can best be changed by focusing on the group. Although human behaviour in organizations is far from an exact science. i.” Norms help determine individual behaviour and a normative-re-educative strategy of changing pervades the practice of OD. or practice. by modifying a group norm or standards. On this point. on the basis of selected variables. A conventional distinction is made between (1) "pure" or basic science. Thus." applied science. Greenwood states: “The diagnostic and treatment typologies are employed together. The practitioner uses treatment as the empirical test of his diagnosis.. with their elaborations and implications constitute practice theory. 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. The aim of this discussion is to look briefly at how behavioural science knowledge becomes applied behavioural science knowledge. behavioural science knowledge. This process is customarily referred to as diagnosis and treatment. not the individual. and (2) "technology. re-establishes the equilibrium. hopefully. 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 major leverage point for change is at the group level. OD emphasizes the latter. Greenwood discusses the activities of the practitioner as follows: "The problem that confronts a practitioner is customarily a state of disequilibrium that requires rectification. The diagnostic typology allows the practitioner to know what category of situation he or she has examined. the object of which is knowledge for its own sake. practices. lawful patterns of events produce effectiveness and ineffectiveness. on the basis of which he or she prescribes a solution that. and skills in ongoing systems in collaboration with system members.e.8 Applied Behavioural Science This foundation of OD relates to the primary knowledge base of the field. Each type description of the diagnostic typology contains implications for a certain type of treatment. pressing problems. The principles of diagnosis and of treatment constitute the principles of practice. for example. thereby solving the problem. The practitioner examines the problem situation. the object of which is knowledge to solve practical. placing it in a classification scheme or typology. success corroborating the diagnosis." Both diagnosis and treatment consist of observing a situation and. 6. OD is the application of behavioural science knowledge.Because norms are socially accepted beliefs held by groups about appropriate and inappropriate behaviours. Burke writes: “If one attempts to change an attitude or the behaviour of an individual without attempting to change the same attitude or behaviour in the group to which the individual belongs. applied science or practice. OD practitioners know about these patterns through research and theory.
Fig. The two bottom inputs. problem-solving method that replicates the steps involved in the scientific method of inquiry underlies most OD activities. and doing or implementing change efforts. who developed the concept of action research. represent contributions from pure or basic science. form of applied behavioural science. and action planning based on the data. a comparative search on the conditions and effects of various forms of social action. then selecting and implementing treatments based on the diagnosis. Action research involves three processes: data collection. I am inclined to hold the opposite to be true. feedback of the data to the client system members. represent contributions from applied science. Action research is a method that combines learning and doing – learning about the dynamics of organizational change. It is a type of action-research.” Concluding Comments: .8: Composition of Applied Behavioural Science Organization development is both a result of applied behavioural science and a.9 Action Research The action research model – a data-based.From this "practice theory. perhaps more accurately. Action research is especially well-suited for planned change programs. the two top in puts. 6. 6. practice research and practice theory." the OD practitioner works: first diagnosing the situation. 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. Kurt Lewin. and finally evaluating the effects of the treatments. it is a program of applying behavioural science to organizations. behavioural science research and two behavioural science theory. had this to say about it: “The research needed for social practice can best be characterized as research for social management or social engineering.
Systems theory views organizations as open systems in active exchange with their environment. 3. each is a powerful conceptual tool for thinking out and implementing change. –––––––––– gave the model “Beyond the Quick Fix”. 4. Action research model combines learning and doing. –––––––––– means moving to new level of behaviour.These foundations of organization development form the theoretical and practice underpinnings of the field.10 Summary The foundations of organizational development form the theoretical and practice underpinnings of the field. Taken separately. 2. OD interventions alter features of the work setting causing changes in individuals’ behaviours. Bring out the essence of “managing beyond the quick fix” model of organizational development.” 5. which in turn lead to individual and organizational improvements is the principle of Porras and Robertson model organizational change. Explain Kurt Lewin’s models and theories of planned organizational change. Self Assessment Questions 1. they constitute the beginning of a theory of organization development and change that has enormous potential for improving organizational performance and individual development.11 Terminal Questions 1. Taken collectively. A fundamental belief in OD is that work teams are the building blocks of organizations. The Burke-Litwin model emphasized on first-order and second-order change. 3. First—order change is also called ___________. What are first-order and second order change according to Burke-Litwin Model of organizational change? Explain. 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. _____________ means sum of the efforts of team members is far greater than the sum of individual efforts of members. A _____________ is defined as “a set of elements standing in interaction. . 6. In parallel learning structures members have to think and behave in ways that are different from the normal roles and rules of the organization. Ralph Kilmann specified the critical leverage points for organizational change. 6. 2.
Refer section 6. What are the features of systems theory of organizational development? 5. System 5. Refer section 6. Ralph Kilmann 3.1 Introduction Objectives 7.” Comment on this statement. Refer section 6. 6. Refer section 6.3 4.2 Characteristics of Organization Culture Culture and . Synergy Answers to TQs: 1. “Work teams are building blocks of organizational development. Unfreezing 2.1 2.2. MU0002-Unit-07-Organization Climate Unit-07-Organization Culture and Climate Structure: 7.4.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .2.12 Answers to SAQs and TQs SAQs: 1.2.2 3.3 5.Refer section 6. Transactional change 4.
You can tell the culture of an organization by looking at the arrangement of furniture.4 Organization Culture and Effectiveness 7. and validated enough to be taught to new members as the correct ways of perceiving. organizational change must include not only changing structures and processes.6 Summary 7. the culture of a large. despite the best-laid plans. 1986). etc. values. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. Objectives: After studying this unit. Martin and Meyerson.8 Answers to SAQs and TQs 7. discovered. and feeling in relation to these problems (Schein. For example. Culture is comprised of the assumptions.3 Types of Organization Culture.7 Terminal Questions 7. · Describe different types of Organization Culture · Explain organization culture and effectiveness. 7. Practitioners are coming to realize that. thinking.5 Developing and changing Organization Culture Self Assessment Questions 7. what they brag about. organizational culture is the personality of the organization. but also changing the corporate culture as well. . norms and tangible signs (artifacts) of organization members and their behaviors. for-profit corporation is quite different than that of a hospital which is quite different than that of a university. The concept of culture is particularly important when attempting to manage organization-wide change. – similar to what you can use to get a feeling about someone’s personality.1 Introduction Basically. what members wear. but everyone knows it when they sense it. Culture is one of those terms that’s difficult to express distinctly. you will be able to: · Understand Organization Culture. Members of an organization soon come to sense the particular culture of an organization.7. Comprehensively organization culture is the pattern of basic assumptions that is invented.
Market The Market organization also seeks control but does so by looking outward. Standards of behavior exist. Some of the most readily agreed upon are the following: 1. and rituals related to deference and demeanor. the way participants interact. do not do too little?” 3. 7. they use common language.2 Characteristics of Organization Culture Organizational culture has a number of important characteristics. Observed behavioral regularities. terminology. 7. For many years.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. Hierarchical leaders are typically coordinators and organizers who keep a close eye on what is happening. Dominate value: These are major values that the organization advocates and expects the participants to share. processes and procedures.· Discuss about developing and changing organization culture. but one where all transactions. Note that the Market organization is not one which is focused just on marketing. 6. Low absenteeism and high efficiency. Typical examples are high product quality. Which in many organizations come down to “Do not do too much. 4. including guidelines on how much work to do. Rules: There are strict guidelines related to getting along in the organization. this was considered the only effective way of organizing and is still a basic element of the vast majority of organizations. 2. Organizational climate: This is an overall “feeling” that is conveyed by the physical layout. internal and external are viewed in market . Norms. and in particular taking note of transaction cost. When organizational participants interact with one another. Hierarchies have respect for position and power. and the way members of the organization conduct themselves with customers or other outsiders. New-comers must learn those “ropes” in order to be accepted as full-fledged members of the group. 5. They often have well-defined policies. Philosophy: These are policies that set forth the organization’s beliefs about how employees and/or customers are to be treated.
strongly driven by loyalty to one another and the shared cause.terms. Clan The Clan organization has less focus on structure and control and a greater concern for flexibility. It has an inward focus and a sense of family and people work well together.4 Organization Culture and Effectiveness It is reflected in how things are done (Flanagan. Rather than strict rules and procedures. 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 an efficient market organization. Rules. value flows between people and stakeholders with minimal cost and delay. the adhocracy will rapidly form teams to face new challenges. Clan leaders act in a facilitative. but critical to shaping its behavior. Leaders in an adhocracy are visionary. Leaders in market cultures are often hard-driving competitors who seek always to deliver the goods. clans often have flat organizations and people and teams act more autonomousl. outputs and outcomes. In contrast to Hierarchies. shared goals. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. Adhocracy The Adhocracy has even greater independence and flexibility than the Clan. Comprehensively organization culture is the pattern of basic assumptions that is invented. affecting the performance of every-one within the culture in positive or negative ways. are particularly driven by results and are often very competitive. It will use prototyping and experimenting rather than long. In biological terms. supportive way and may take on a parental role. invisible to the naked eye. people are driven through vision. Where market success goes to those with greatest speed and adaptability. 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). which is necessary in a rapidly changing business climate. do still exist and are often communicated and inculcated socially. culture is like the DNA of an organization. 7. innovative entrepreneurs who take calculated risks to make significant gains. and validated enough to be taught to new members as the correct ways of . Market cultures are outward looking. although not necessarily documented. big-bang projects and development. 1995) and how problems are solved in an organization. 1993). Transactions are exchanges of value. discovered.
· Public documents it releases and media reports and stories about it. plaques. Values: These are the social principles. Thus. These are the essential and enduring tenets of an organization. and are generally not compromised for short-term benefits or financial gains.perceiving. Values evolve out of the basic assumption and form the core (or heart) of the culture.the informal rules of the fame telling employees what they are supposed to be saying. various terms such as efficiency. the jargon they use. IBM norms dictate that employees should actively listen and respond to customer demands and complaints. and what is right and what is wrong. individually and collectively. the personality of the organization). also called as organizational success or growth. rules. the way they dress etc. 1986). Though a large volume of literature is available on the concept and working of organizational effectiveness. from the basis of its policies and action. The various approaches are judgmental and open to question. goals. its core value are limited to a few in number. and doing. is defined and conceptualized in different ways. 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. believing. communicating. For example. . reflecting what is important in the organization and determining how the organization ought to be (the ethos. thinking. Artifacts: The visible manifestations of culture as seen in the physical and social environment of the organization such as: · Its structure. · The observable behavior of its members (the way they talk. there is often contradiction in various approaches. systems and subsystems. Though an organization espouses a series of values. symbols. Identifying. Organization Effectiveness Organizational effectiveness. etc. and feeling in relation to these problems (Schein. They are reflected in the core capabilities of a company. · Its rituals. The set of basic assumptions evolve into values artifacts and norms in terms of which an organization culture may be examined and understood. Martin and Meyerson. productivity. and procedures. or standards held by members of an organization. and no unanimity is found in different approaches. norms.
business and leadership strategies. This is one part of effectiveness that many managers overlook because it emphasis long-term potential as well as short-term performance. and earnings. are often used interchangeably. These causal variables include only those independent variables which can be altered or changed by the organization and its management. scrap loss.. The intervening variables may be divided into two broad categories: (i) the intervening attitudinal. attitudes. Intervening Variables: Intervening variables are those factors which are reflected as the internal state of organization. Likert states that causal variables are independent variables which determine the course of developments within an organization and the results achieved by the organization. and (ii) the intervening behavioral cluster. and behaviour. skills. From this point of view. End – result Variables: End-result variable are those factors which are caused by causal and intervening variable and are often in terms of the factors in which managers are interested or measure their effectiveness. Likert states that the intervening variables reflect the internal state and health of the organization. Though each individual’s effectiveness is significant but perhaps the most important aspect of effectiveness is its relationship to the entire organization. Many of these variables are caused by causal variables. These variables have been classified by Likert into three groups-causal. According to Likert. Intervening variables are concerned with building and developing the organization.profitability. 7. organizational growth. decisions. e.g. 3.5 Developing and Changing Organization Culture How Organizational Cultures Start Although organizational cultures can develop in a number of different ways. the loyalties. communication.which are useful in discussing organizational effectiveness over time. 1. costs. there are numerous variables. Whatever the criteria adopted for organizational effectiveness. Grouping variables into these categories aids greatly in the correct interpretation of the data and their use for diagnostic and other purposes. motivations. end-result variables are the dependent variables which reflect the achievements in the organization such as its productivity. the organizational analysis is incomplete for a practicing manager unless the factors underlying effectiveness are identifying. motivational. and they tend to be long-term goals. Causal Variables: Causal variables are those factors that influence the course of development within an organization and its results or accomplishment. performance goals. to denote organizational effectiveness. Causal variables include the structure of the organization and its management. the process usually involves some version of the following steps: . 2. and perceptions of all members and their collective capacity for effective interaction. Causal variables include the structure of the organization and management’s policies. intervening and end result. and decision-making. and perceptual cluster.
For example. management. or even customers may support the existing culture.1. 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?. incorporating. The case of Mergers and Acquisitions The clash between the two cultures in a merger or acquisition can be focused into three major areas: 1. 3. and is worth the investment of time. money. Structure. is worth running some risks for. Where does the power and managerial decision making really reside? Corporate cultures range from autocratic extremes to total employee empowerment. the industry in which the partners come from and now reside. relationships. At this point. These factors from the two cultures include the size. New product development and information technology is changing so rapidly that any example would be soon out-of –date. obtaining patents. and energy that will be required. then such rapid change can be welcomed and accommodated with as little disruption and as few problems as possible. The founder brings in one or more other key people and creates a core group that shares a common vision with the founder. That is. 4. is workable. 2. and a common history begins to be built. locating space. 2. and so on. and how this plays out among the partners will be important to cultural compatibility. roles. In addition. the geographic location. and history of two firms. . However. A single person (founder) has an idea for a new enterprise. and whether products and/or services are involved. Changing Organizational Culture Sometimes an organization determines that its culture has to be changed. Politics. Even through some firms have had a culture in place to anticipate change. Staffs. Predictable obstacles include entrenched skills. powerful stakeholders such as unions. The founding core group beings to act in concert to create an organization by raising funds. and structures that work together to reinforce traditional cultural patterns. age. building. if the appropriate organization culture is in place. others are brought into the organization. all in this core group believe that the idea is a good one. the current environmental context has undergone drastic change and either the organization must adapt to these new conditions or it may not survive.
9.3. habits. Take out all trappings that remind the personnel of the previous culture. and patterns of daily behavior. 5. the “culture contract” that individuals have bought into to guide their day-to-day thoughts. are particularly driven by results and are often very competitive. 3. _____are the visible manifestations of culture as seen in the physical and social environment of the organization. ________cultures are outward looking. commitment. 3. 7. if possible. Simple guidelines such as the following can be helpful. so that they are able to interact well with the organizational personnel. These emotions will be a major input into the clash or compatibility of the two cultures. 2. Emotions.6 Summary . so that a consistent message is delivered from all management team members. organizational cultures can be managed and changed over time. Set realistic goals that impact on the bottom line. take these losses early. ___________are those factors that influence the course of development within an organization and its results or accomplishment. 2. Guidelines for change Despite the significant barriers and resistance to change. Stay the course by being persistent. 8. This attempt to change culture can take many different forms. The personal feelings. 4. Recruit outside personnel with industry experience. especially when making changes in rules and processes. Make changes from the top down. attitudes. Self Assessment Questions 1. Move quickly and decisively to build momentum and to defuse resistance to the new culture. 6. Include employees in the culture change process. Assess the current culture. Expect to have some problems and find people who would rather move than change with the culture and. 7. 1.
Causal variables Answers to TQs: 1. intervening variables and end-result variables and there exists interrelationship among these variables. . Explain the characteristics of organization culture. 7.8 Answers to SAQs and TQs SAQs: 1. system-resource approach.goal approach. Briefly explain different types of organizational culture. 7. Effectiveness of an organization can be increased through economic man approach and administrative man approach. Discuss the development and change of organizational development. Organizations to be successful must be efficient and effective.7 Terminal Questions 1. behavioural approach.2 2.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . Market 3. 2. Organizational effectiveness can be measured through various approaches. Finally.3 3. 3. Refer section 7. effectiveness through adaptive-coping cycle has been discussed. and strategic constituencies approach. Factors in organizational effectiveness include casual variables. Refer section 7. Artifacts 2. Refer section 7.Organizational effectiveness is the degree to which organization is successful in accomplishing its goals.
In this unit.1 Introduction Objectives 8.9 Summary 8. Politics and Organization Development Structure: 8.” Organization development has been criticized for not taking into account power in organizations. and for change to occur in an organization. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics.10 Terminal Questions 8.Power.3 Two Faces of Power 8.4 Theories about the Sources of Social Power 8.1 Introduction Politics and Power and politics.8 Acquiring and using Power Skills Self Assessment Questions 8.5 Organizational Politics Defined and Explored 8. we examine power and politics in relation to organization development. power must be exercised. must be understood if one is to be effective in organizations. Organization Development Unit-08. As Warner Burke observes: "Organization development signifies change.11 Answers to SAQs and TQs 8. indisputable facts of organizational life.2 Power Defined and Explored 8. That criticism was essentially correct for many years although it is less valid .MU0002-Unit-08Power.7 Operating in a Political Environment 8.6 The Role of Power and Politics in the Practice of OD 8.
” “A has power over B to the extent that he can get B to do something that B would otherwise not do. and outcomes favoring one party over the other. Potential power is the capacity to do so. spiritual. emotions. humankind would not have much of the misery it does today.today." “Power is the ability of those who possess power to bring about the outcomes they desire. · Acquire skills to handle power and politics in organizations. Power-in-action may . Objectives: After this studying this unit. the act or ability of influencing others." Analyzing these definitions shows some common elements: effectance-getting one’s way.2 Power Defined and Explored "Power is the intentional influence over the beliefs. the necessity of social interaction between two or more parties. · Explain theories about the sources of power. 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. to effect outcomes." "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 French word ‘pouvoir’ stands for both the noun ‘power’ and the verb ‘to be able. and repression. financial.actions and the decisions that precede them. and organizational activities. One person exerts power over another to the degree that he is able to exact compliance as desired. and behaviours of people. you will be able to: · Define power and politics in organizations. technological. The phenomenon of power is ubiquitous. Without leadership (power) in medical. Without leadership (power) directed toward warfare.’ To have power is to be able to get desired things done. political. 8. We therefore define interpersonal power as the ability to get one’s way in a social situation. · Explain the role of power and politics in the practice of OD. Without influence (power) people would have no cooperation and no society. confiscation. but kinetic power is the act of doing so.
being exercised." Her research in four organizations showed both kinds of power. Leading. This positive face of power enables others to reach their goals as well as lets the person exercising power reach his or her goals. Roberts came to a similar conclusion in her study of "collective power" and "competitive power. absolute power corrupts absolutely. McClelland observed that while power has a negative connotation for most people. unsocialized need to dominate others. selling." · French and Raven’s "Bases of Social Power. forcing. bestowed. we will examine four different views about who gets power and how: · Emerson’s "Power-Dependence theory. suggests that many problems with power stem from the goals of persons with power and the means they use." · Salancik and Pfeffer’s "Strategic-Contingency Model of Power. or acquired? In this unit. influence. In most organizations the positive face of power is much more prevalent than the negative face of power. 8. an authority or power dimension is required. 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.4 Theories about the Sources of Social Power Power exists in virtually all social situations. According to him. coercing-these are examples of negative uses of power. persuading-these are examples of positive uses of power." A moment’s reflection. How do some people come to possess power? How is power generated. We think this distinction provides a good insight into the concept of power." · Mintzberg’s Observations on the Genesis of Power in Organizations. hurting. power being the predominant mode. it is through the use of power that things get done in the world. Power per se is probably neither good nor bad although Lord Acton observed that "power tends to corrupt. and lead. It is especially salient in coordinated activities such as those found in organizations. influencing. the positive face of power seeks to empower self and others.3 Two Faces of Power David McClelland proposed an important distinction when he identified "two faces of power" – positive and negative. both positive and negative.take many forms. for organizations to function. 8. Crushing. . with collective. not the possession of power as such. however. In fact. or positive. The positive face of power is characterized by a socialized need to initiate. the negative face of power is characterized by a primitive. The negative face of power seeks to dominate and control others.
Social interaction represents an exchange of social goods and services. Viewed in this light. to give something negatively valued by the other. or feeling of oneness with) the power holder. The components of this theory are a social relation between two parties and resources (commodities. When the net balance for us is positive. attraction. 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. Exchange theory and power-dependence theory are quite compatible with the ideas proposed by French and Raven." In other words. respect. we will terminate or alter the relationship. and desired by the other. rewards) that are controlled by one party. Legitimate power – power based on everyone’s belief that the powerholder has a legitimate right to exert influence and that the power-receiver has a legitimate obligation to accept the influence. goals. Expert power – power based on the powerholder possessing expert knowledge or expertise needed by the other. influence. that is. and (2) inversely proportional to the availability of those goals to A outside of the A-B relation. Informational power is a form of expert power where the powerholder possesses important facts or information needed by the other. rejection. 4. 2. we will continue the exchange relationship. . 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.Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another. P. if a person has something we want badly and we cannot get it any other place. praise. giving someone power over us is the commodity we exchange when we are dependent on that person for something we want. Reward power – power based on the ability of the powerholder to reward another. 3. Referent power – power based on the power-receiver having an identification with (attraction to. and so forth. 5. hate. power belongs to those persons who control or mediate desired commodities." These authors suggested five sources. when the net balance for us is negative. Coercive power – power based on the ability of the powerholder to punish another. blame. of social power as follows: 1. In this theory. The sociologist. that person has power over us. Power-dependence theory is related to a broader framework of social interaction called social exchange theory. information. to give something valued by the other. Closely related to these ideas is the classic statement by John R. or bases. power. which posits that what goes on between persons is an exchange of social commodities: love. French and Bertram Raven on "the bases of social power. that is.
All of these must be critical to the organization. and through the definition of organizational problems and policies. The fourth basis is legal prerogatives-being given exclusive rights to impose choices. control of a resource. and so forth. coupled with 2) The expenditure of energy in a 3) Politically skillful way. These critical problems are generally "uncertainties" posed by the environment. second. control of a technical skill. In addition to a base of power. seek to control the organization’s decisions and actions. knowledge. This theory. the employees. such as the board of directors. being in control of critical skills. or information. used by all who have it. the unions. like the ones discussed previously. called influencers. "is built on the premise that organizational behavior is a power game in which various players. . for power in the hands of the critical problem solvers helps the organization cope with the various realities it faces. first. The important aspects of Mintzberg’s theory are that the sources of power derive from possession of a commodity desired by others. In summary. through the placement of allies in key positions. to enhance their own survival through control of scarce critical resources. control of a body of knowledge.others-in this case. the ability to solve critical problems or exigencies-anything that creates dependence of one actor or set of actors on another. Salancik and Pfeffer further suggest how power is used: "Power is used by subunits. This theory." These authors view organizational power as a good thing. suppliers. the influencer must have both the "will" and the "skill" to use it. and. the top executives. the five possible bases of power are. customers. According to Mintzberg. or departments) most important for solving the organization’s most critical problems.The strategic-contingency model of power asserts that power in organizations accrues to the subunits (individuals. regulators. the managers. The resources may be ability to reward and punish. that power-in-action requires will and skill. supports the notion that those who have something highly valued by. indeed. An organization has many potential influencers." The three basic conditions for the exercise of power are 1) Some source or basis of power. units. third. and that the organization is the context for the exercise of power. the special expertise needed for the organization’s survival-have power. A fifth basis of power is access to those who have power based on the first four bases. these four views of the sources of power are remarkably similar – power stems from possession of or mediation of desired resources. Henry Mintzberg has developed a theory of organizational power drawn from the organization theory literature and his own creative synthesis abilities.
8. the power vested in office. These key areas are the battlefields where actors win and lose.6 The Role of Power and Politics in the Practice OD . One important feature in these definitions should be examined further. deceiving. like power. conflict resolution. they are where the "goods" are distributed and the goals decided. “Organizational politics involve intentional acts of influence to enhance or protect the selfinterest of individuals or groups”. viewing situations in win-win terms as much as possible. unsocialized needs to dominate 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”. you must lose-rather than win-win terms. the capacity to get things done by virtue of the position held. treating it as informal power. Analyzing these definitions suggests that the concepts of power and politics are similar. initiate. and choosing among alternative means and goals. has two faces. and how”. and predominant use of the tactics of fighting-secrecy. In fact. The negative face of politics is characterized by extreme pursuit of self-interest. we view politics as a subset of power. it is engaging in activities to get one’s way. withholding information. but in this sense. Organizational politics tend to be associated with decision-making. The positive face is characterized by a balanced pursuit of self-interest and the interests of others. engaging in open problem solving followed by action and influencing. the last two definitions view politics as illegitimate or unsanctioned activities.8. one gains a quick understanding of the overall "political climate" of an organization by studying its methods of resource allocation. holding hidden agendas. surprise. We are inclined to consider politics as neither good nor bad per se but believe that politics. when. Thus. Both relate to pursuit of self-interest and overcoming the resistance of others. resource allocation. formal power. and influence others. illegitimate in nature. Likewise we also treat authority as a subset of power. organizational politics is power-in-action in organizations. and a socialized need to lead.5 Organizational Politics Defined and Explored Harold Lasswell defined “politics simply as the study of who gets what. a relative absence of the tactics of fighting. For our purposes. develop and use power and other resources to obtain one’s preferred outcomes in a situation in which there is uncertainty about choices”. Both relate to getting one’s way-effectance. a tendency to view situations in win-lose terms-what I win. “Organizational politics involve those activities taken within organizations to acquire. The first three definitions treat politics as a neutral set of activities. and conflict resolution processes.
and promoting individual and organizational competence are part of the foundation of organization development. In summary. and his or her values. thereby making the negative face of power less prevalent and/or necessary. public data are indispensable-for problem solving but anathema for organizational politics. This major . collaboration. problem solving is usually superior to power coercion as a way to find solutions to problematic situations. provides a service that the organization is free to "buy" or "not buy. power equalization. second. processes. public data about the organization’s culture.We have discussed a number of ideas concerning power and politics. Valid. it is instead a rational problem-solving approach that is incompatible with extreme poweroriented situations. increases the amount of power available to organization members. 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. Not only is organization development not a power/political intervention strategy. OD interventions increase problem-solving. "Power equalization" has long been described as one of the values of organization development. informed choice. Emphasis on power equalization stems from two beliefs: first. According to Chris Argyris. like all consultants. catalyst. openness. methods. and effective pursuit of goals while decreasing reliance on the negative faces of power and politics. OD interventions typically generate valid. being one aspect of the positive face of power. collaboration. But organization members are free to accept or reject the practitioner. co-operation. The OD consultant. individual dignity. but not with the negative face of power. These values are congruent with rational problem solving and incongruent with extremely political modes of operating. problem solver." The facilitator or educator role is incompatible with a political activist role because cooperation requires one set of behaviors and competition requires a different set of behaviors. his or her program. as we discussed earlier. and by so doing adds power to the organization. OD interventions do not deny or attempt to abolish the reality of power in organizations. the "interventionist" has three primary tasks: (1) to generate valid useful information. and expertise. and educator. The practitioner works to strengthen skills and knowledge in the organization. (2) to promote free. We know of no OD interventions designed to increase coercion or unilateral power. as a preferred way to get things accomplished. For example. The practitioner is not a political activist or power broker. Virtually. rather. fact-finding. all OD interventions promote problem-solving. and (3) to promote the client’s internal commitment to the choices made. strengths. OD values are consistent with the positive face of power. they enhance the positive face of power. Cobb and Margulies caution that OD practitioners can get into trouble if they move from a facilitator role to a political role. and weaknesses. not politics. The role of the OD practitioner is that of a facilitator. organization development represents an approach and method to enable organization members to go beyond the negative face of power and politics. Values such as trust.
First. Group support: If the OD group is strong internally. it will be strong externally. These sources of influence produce a substantial power base that will enhance the likelihood of success. . According to the framework of French and Raven." 4. the OD consultant possesses power from the following bases: legitimate power (the OD program and consultant are authorized by the organization’s decision makers). 6. and possibly referent power (others may identify with and be attracted to the consultant). Stature and credibility: Beer notes that power accrues to those who have been successful and effective. If the OD group is cohesive and free of internal dissention. Resource management: Power accrues to those who control resources-in this case. 3. 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. Paying attention to these sources of power will enhance the likelihood of success of OD programs. Michael Beer has identified additional means by which an OD group can gain and wield power in organizations: 1. it will gain more power. preferably multiple sponsorship. informational power (the consultant has a wealth of information about the strengths and weaknesses of the organization). and ability to gain organizational support. and the roles of OD practitioners.7 Operating in a Political Environment We will present some general observations on operating in a political environment."34 This maxim has been recognized for years under the heading of "get top-level support for the program. 8.strength of OD derives from the strategy of change. expert power (the consultant possesses expert knowledge). Success leads to credibility and stature. the values. organization development practitioners operate from a potentially strong power base they can use to advantage. acceptability. 5. followed by some rules of thumb for the OD practitioner. the resources of OD expertise and ability to help organizational subunits solve their pressing problems. the technology. Early success in the OD program and its usefulness to key managers of the organization helps promote this reputation. Sponsorship: "Organization development groups will gain power to the extent that they have sponsorship. 2. in powerful places. Competence: Demonstrated competence is the most important source of power.
OD consultants have a formal or informal contractual agreement with managers to help them do what they are trying to do-better. it gains an aura of respect and protection that sets it above most political entanglements. both as a person and as a professional. Each is derived from one general principle: Mind your own business. Skills such as listening. communicating. the manager will vigorously defend it. usually managers. Rule Two: Make the OD program itself a desired commodity. Rule Four: Create win-win solutions. The OD program belongs to the manager. . Another way the OD program becomes a desired commodity is by focusing on important issues. A valuable by-product of this fact is that if the program runs into political turbulence. Beer and Walton argue that organization development should move from being practitioner centered to being manager-centered. coaching. Becoming a desired commodity as a person means being interpersonally competent and trustworthy. Good OD practitioners will have learned and practiced these skills. OD programs should be results-oriented. The preceding rules of thumb describe ways to increase or solidify one’s power base. counseling. constructive social relationships. which is to help someone else solve his or her major problems. OD professionals who are skilled in conflict management techniques and OD programs that encompass conflict resolution activities become valued commodities. 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. Sometimes OD practitioners overlook that they are hired by others. Rule Three: Make the OD program a valued commodity for multiple powerful people in the organization. to help them achieve their goals and solve their problems. Rule One: Become a desired commodity. those issues vital to the organization’s success. Rule Five: Mind your own business. OD programs become desired commodities when they are instruments that allow individuals and organizations to reach their goals. The following rules describe ways to avoid becoming involved in one’s own or in others’ political struggles. OD practitioners are likely to have high interpersonal competence by virtue of their training. Many OD interventions promote win-win solutions for conflict situations. and effective conflict management techniques are required to enhance stable. and expertise. experience. problem solving. Organizations are social systems in which members have both a history and a future of interacting. not the OD consultant. The nature of organizations and the nature of organization development suggest this rule. The role of the OD consultant is to help others upon request.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. When the OD program serves the needs of top executives. and showing appreciation for the strengths of others are components of interpersonal competence.
" OD practitioners have typically pursued a "playing it straight" strategy as their sole means of exerting power. Table 8. Illegitimate behavior causes others to try to exert greater control over the situation. One carries out such a strategy by participating in alliances and coalitions. We believe the legitimate role of the OD practitioner is that of facilitator." which arouses defensive actions. As shown in the figure. Rule Seven: Mind your own business because to do otherwise is to invite political trouble. Attention to these rules can save OD practitioners time and energy that can be more profitably invested in the OD program.8 Acquiring and Using Power Skills The OD practitioner is neither power activist nor power broker. but that does not mean practitioners must be naive or incompetent in the political arena.1: Power Base and Power Strategy Connection Individual Power Bases Knowledge Strategies for Success Playing It Straight . The principle is simple but powerful: know your legitimate business and stick to it. and educator. Earlier we stated that the OD practitioner should learn as much as possible about bargaining. yet legitimate means of acquiring power. A subtle phenomenon is involved here: when people engage in illegitimate behavior. 8. which is to be an expert on process. Networking is recognized as a potent. individual power derives from knowledge. the strategy and tactics of influence. not content. others’ support." and "going around the formal system. dealing directly with powerholders and decision makers. thereby greatly expanding practitioner influence. Illegitimate behavior encroaches on others’ legitimate "turf. The authors propose adding the "using social networks" strategy to their repertoires. catalyst. and using contacts for information. such behavior is often interpreted as politically motivated. negotiations the nature of power and politics. and the characteristics and behaviors of powerholders. Abiding by this rule keeps the consultant from becoming entangled in politics. Three successful power strategies are "playing it straight. problem solver. We could propose more rules of thumb. 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." "using social networks. but these give the flavor of the issues one must consider when operating in a political environment. and personality characteristics. while at the same time increasing his or her usefulness to the organization’s powerholders. viable. not power activist or power broker.Rule Six: Mind your own business. not by getting involved in the answers.
in turn. personal power and position power. effort. then utilize a facilitative OD process in which the powerholders work on strategic business issues using consensus decision making to develop a corporate strategy. a person’s power comes from two main sources. arises from expertise. and legitimacy. (Legitimacy refers to abiding by and promoting the values of the organization.) Position power derives from five sources: Centrality-access to information in a communication network. criticality-how important one’s job is flexibility-the amount of discretion in the job. Personal power. 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. 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. This practical. The power structure will realize that collaborative power is preferable to manipulation and deception. personal attraction.· 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. which in turn will protect the interests of all concerned. how-to book on power and organization development is well worth studying. In this model. influence key powerholders to accept the OD program. even those of little power. visibility-how much one’s work is seen by . Whetton and Cameron’s model is shown in following figure.
Reason refers to persuasion by facts. Three influence strategies can be used to influence others-reason. reciprocity. actually using it to get things done is another. and retribution. Fig. no one has the necessary information and resources to accomplish what’s expected of them. Whetton and Cameron suggest .1: Model of Power and Influence Networking is used to increase both personal power and position power. Indeed. Usually reason is the preferred strategy. power-in-use is called influence. and (3) empowering others. Networks are critical to effective performance for one compelling reason: Except for routine jobs. According to these authors. and reciprocity can be useful when reason fails. and relevance-how important one’s task is in relation to organizational priorities. Reciprocity refers to exchange of favors. 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. They write: "Influence entails actually securing the consent of others to work with you in accomplishing an objective.influential people. Having power is one thing." And." Three things are involved in converting power into influence: (1) resisting other people’s inappropriate influence attempts. (2) selecting the proper influence strategy. 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”. "Power is converted into influence when the target individual consents to behave according to the desires of the power holder. Retribution is not recommended except in unusual cases. 8.
Strategic-contingency model of power asserts that power that accrues to the individuals. units or departments is most important in solving organizational problems. (3) reward and encourage others in visible and personal ways. (2) provide a positive. Define power in an organizational context and explain types of power. Power based on the power-receiver having identification with the power holder is called ––– ––––––––. and are amenable to positive control.. –––––––––– is made up of Charisma. 8. collaborative work environment. Concluding Comments: In this unit. Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another. Organizational power is the ability of those who possess power to bring about the outcomes they desire. when. reputation and professional credibility. 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. 2. . arise from known conditions. and how.10 Terminal Questions 1. –––––––– defined politics as the study of who gets what. –––––– is the intentional influence over the beliefs. 3. Self Assessment Questions 1. (4) express confidence (5) foster initiative and responsibility. we have examined power and politics with the goals of understanding the phenomena and deriving implications for OD practitioners. _____________ has identified two faces of power.9 Summary Power and politics are inseparable facts of organizational life. 8.several means of resisting others’ influence attempts such as confrontation and using countervailing power. Methods for empowering others are the following: (1) involve subordinates in assigning work. emotions or behaviour of people. Organizational politics involve intentional acts of influence to enhance or protect the self-interest of individuals or groups. Power can be either positive or negative. Power and politics are similar in nature. and (6) build on success. arise from known conditions. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics. 4. when and how. and are amenable to positive control. Power and politics are similar in nature. 5. Organizational politics is defined as the study of who gets what.
6 5.2.2 2. Define organization politics.4 3.1 Introduction . Refer section 8. Power 2.5 4.11 Answers to SAQs and TQs SAQs: 1. 4. Harold Lasswell 5. Referent power 4. Personality Answers to TQs: 1. Describe briefly various theories of power. Refer section 8.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9. McClelland 3. Refer section 8. 5. 3. Refer section 8. Identify the bases of individual power and the respective strategies for their success. 8.Refer section 8. Explain the role of power and politics in the practice of OD.
events intended to help an organization improve its performance and effectiveness. Nothing is permanent except change because change is permanently changing.5 Quality Circles 9.3 Socio Technical Systems 9. An organization development intervention is a sequence of activities.11 Terminal Questions 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. These interventions vary from standardized program that have been developed and sometimes tailored program. These methods are receiving increasing attention in Organization Development.12 Answers to SAQs and TQs 9.10 Summary 9. These programs are derived from careful diagnosis. In this dynamic and fluid environment. Objectives: .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.8 Total Quality Management 9.4 Management By Objectives 9.6 Quality of Work Life Projects 9. organizational problems may repeat.9 Reengineering Self Assessment Questions 9.7 Parallel Learning Structures 9.2 Meaning and Definitions 9. actions.Objectives 9. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design.
Cost is Low. One problem with behavioral/ group interventions is the tendency for new managers or employees to discount or fail to continue the change program.After studying this unit. In addition. Succession Doesn’t Destroy Change Effort. 4. Structure changes are normally “institutionalized” and less subject to this problem. · Explain Total Quality Management. and OD practice enables the change agent to estimate the probable consequences of the change. 3. Structural changes are consistent with their operating styles and are generally understood by practitioners. Rapidity of change. Advantages of Structural Interventions There are a number of reasons why a consultant should consider employing a structural intervention. includes removing or adding layers to hierarchy. their attractiveness is also increased by the following advantages: 1. Basic reinforcement theories. The cost of structural change is generally “front-end” loaded. 5. · Discuss the parallel Learning Structures. Once diagnosed and an appropriate correction developed. meaning the major costs are associated with analysis and design of change. Weeks and months of group effort are saved. Changes can involve decentralization and centralization. · Discuss the Management By Objectives · Explain the Quality Circles. 2. organization theory. Downsizing associated with restructuring. Managers and administrators are notoriously pragmatic. and more . structural Interventions compare quite favorably with all other alternatives. · Explain Reengineering. 9. From a benefit cost analysis.2 Meaning and Definitions Structural Intervention is related to the changes that relate elements of organization to one another. Greater Predictability. you will be able to: · Explain the Socio technical change. This normally is a reasonable. change can be introduced relatively rapidly by top management. Organization Acceptance of Change.
The term MBO was coined by Drucker in 1964 when he emphasized the concept of managing by results. 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 9.3 Socio Technical Systems Socio-technical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. Since then. many business and nonbusiness organizations have adopted this in some form or the other. a predictable cost Implementation of group strategies involves significant long-term man-hour and consultant costs. Its basic idea has been derived from the concept of participative goal setting as a technique of OD. though not strictly an OD intervention in the sense in which other interventions have been discussed so far. It could involve the following steps (Foster. Cummings.4 Management by Objectives Management by objectives (MBO). Though there are some variations in the practices of MBO and. 1976. consciously directed towards the effective and efficient achievement of organizational objectives. processes and functions to create a balance between the organization and its changing external environment. 1967. Pasmore.” . therefore. its definitional aspect. 9.critically. It endeavors to re-design the organization’s structure. it has been defined as follows: MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. is a technique and system which helps in improving organizational performance.
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. physical.. including the corporate level. 3. etc. delegation of authority. each manager takes active part in setting objectives for himself and also in evaluating his performance as to how he is performing. Therefore. Therefore. A management technique can be applied in selected parts of the organization and will have limited implications for its other parts. The basic emphasis of MBO is on objectives. It works as an integrating device. 5. Whereas the various techniques of management help in measurement of results in resources. 2. superiors and subordinates. The review is future-oriented because it provides basis for planning and corrective actions. Resource allocation. operational managerial process for the effective utilization of material. MBO is bound to have some relationship with every management technique. MBO is likely to affect every management practice in the organization. On the other hand. Objectives are established for all the levels of the organization. . MBO employs several techniques but it is not merely the sum total of all these techniques. managers have the opportunities for clarifying their job relationships with peers. The performance review is held regularly. In fact. are determined on the basis of objectives. its features can be identified as follows: 1. It is a particular way of thinking about management. 6.” Based on the definition of MBO. It emphasises initiative and active role by the manger who is responsible for achieving objectives. MBO is the joint application of a number of principles and techniques. As an approach to management. non-specialist. its subsystems and people. Periodic review of performance is an important feature of MBO. often MBO provides the stimulus for the introduction of new techniques of management and enhances the relevance and utility of the existing ones. 4. normally once a year. The MBO is characterized by the participation of concerned managers in objective setting and performance reviews. all the units or departments and individual manager. Objectives in MBO provide guidelines for appropriate system and procedures. This process clarifies the role very sharply in terms of what one is expected to achieve. with objective orientation as its essence. The total management process revolves round the objectives set jointly by the superior and the subordinate. MBO is an approach and philosophy to management and not merely a technique. This is possible because MBO tries to match objectives and resources. and human resources of the organization by integrating the individual with organization and organization with the environment. Objectives provide the means for integrating the organization with its environment. Certain degree of overlapping is there. Similarly. MBO is also concerned with determining what these results and resources should be. reward and punishment system is attached with the achievement of the 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.
9. Sociotechnical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. __________ represents a participative approach to employee involvement in problem solving and productivity improvement. · A major emphasis on continuous learning. and speed. consciously directed towards the effective and efficient achievement of organizational objectives. quality. structural Interventions compare quite favorably with all other alternatives. An organization development __________ is a sequence of activities. actions. From a benefit cost analysis. actions. Reengineering is a top-down process.9 Reengineering It is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical. service. It seeks to make such processes more efficient by combining.10 Summary An organization development intervention is a sequence of activities. 3. · Participative management. · Continuous search for sources of defects with a goal of eliminating them entirely. events intended to help an organization improve its performance and effectiveness. Self Assessment Questions 1. Quality . 2. There are a number of reasons why a consultant should consider employing a structural intervention. events intended to help an organization improve its performance and effectiveness. · An emphasis on teams and teamwork. assumes neither an upward flow of involvement nor that consensus decision making. · Top management support on an ongoing basis. eliminating. 9.· Competitive benchmarking. Reengineering focuses on visualizing and streamlining any or all business processes in the organization. The term MBO was coined by _________ in 1964. MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. such as cost. contemporary measures of performance. or restructuring activities without regard to present hierarchical or control procedures.
Intervention 2.2 3.Refer section 9. 9.circle represents a participative approach to employee involvement in problem solving and productivity improvement. Write a short note on Total Quality Management. Quality circle Answers to TQs: 1.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 9. It is also called continuous quality improvement. Explain Management By Objectives? 4.11 Terminal Questions 1. Refer section 9. TQM pushes decision making power downwards in the organization. Drucker 3. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. 9.5 4. Refer section 9. What are the advantages of structural interventions? 3. provides relevant information to all employees.3 2. Discuss Socio Technical Systems? 2. ties reward to performance and increase workers knowledge and skills through extensive training. .12 Answers to SAQs and TQS SAQs: 1.
1 Introduction Change in Organizations are increasingly realizing the fact that change is the price of the survival. 10.2 Nature of Change 10.9 Answers to SAQs and TQs 10.8 Terminal Questions 10. and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other. Objectives: .3 Resistance to Change 10. organizational problems may repeat.MU0002-Unit-10-Managing Organization Development Unit-10-Managing Change in Organization Development Structure: 10.6 Methods of Reducing Resistance to Change.7 Summary 10.4 Causes for Resistance to Change. In this dynamic and fluid environment. Nothing is permanent except change because change is permanently changing.5 Impact of Change on the Future Manager 10. Self Assessment Questions 10.1 Introduction Objectives 10. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented). cope with the ongoing changes successfully in the first instance. Hence. 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.
employees want to maintain a status quo. organizational change may have the following features: 1. Though this phenomenon will be taken later. and others.whether physical. job design and people. However. the change in organization does not occur purely on mechanical relationship. some changes which are of minor type may be absorbed by the existing equilibrium. others. organizational change is the alteration of work environment in an organization. Thus. · Discuss the nature of change · Explain resistance to change and the factors which resist change. While managers as change agents want to bring changes in the organization. some parts of organization may be affected more. . if we look minutely.2 Nature of Change The term ‘change’ refers to an alteration in a system. it becomes indented at the point of contact. The type of new equilibrium depends on the degree of change and its impact on the organization. · Impact of change on future managers. less. Newstrom and Davis have explained the impact of a change in any part of the organization on the total organization. you will be able to: · Explain the meaning of organization change. However. · State the methods of reducing resistance to change. They have illustrated it by comparing an organization to an air-filled balloon. and others. may require special change efforts. indirectly. the contour of the balloon visibly changes. they have concluded that the whole organization tends to be affected by change in any part of it. which are major ones. Thus. structural arrangement. Any change may effect the whole organization. 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. 3. some parts may be affected directly. It implies a new equilibrium between different components of the organization – technology. When a finger (which represents external force) is forced against a point on the balloon (which represents the organization). When change occurs in any part of the organization. 10. it has stretched slightly. 2.After studying this unit. However. we find that the shape of the entire balloon has changed. biological. or social. Thus. it disturbs the old equilibrium necessitating the development of a new equilibrium. Organizational change is a continuous process.
We wanted a new culture and new layout. Thus. resistance to change provides help in managing change in two ways: . resistance to change is costly affair. If people resist to change. In fact. people act to establish a steady state of need fulfillment and to secure themselves from disturbance of that balance. it provides some benefits to the organization as its change agent. or they have been forced to adopt alternative strategies. Resistance as Cost: Since all changes have some cost. We shall take new workers at the new place.” Resistance as Benefit: On the one hand. On this phenomenon. but when a change is major or unusual. Managing Director of Bajaj Auto. because it produces identical symptoms. Homeostasis implies self-correcting characteristics of organism to maintain equilibrium as a result of change.10. more serious upsets may occur. In fact. 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. so is the resistance to change. commented. We saw resistance to change at the existing plant. that is. While on negative side. adjustment is fairly routine. When change is minor and within the scope of correcting programme. In fact. the organizational may not be able to introduce new phenomena in order to adapt environmental requirement. Madhur Bajaj. fear of change can be as significantly disrupting as change itself. and its basic survival may be jeopardized. many organizations have been forced to abandon change programmes because of resistance to such programmes. social systems tend to resist change because of homeostasis.3 Resistance to Change In the management of change effectively. and on the other. Resistance to change forces management to find out this reality which helps in managing change more effectively. People tend to resist many types of changes because new habits or sacrifices are required. let us discuss whether resistance is always bad as it is generally perceived to be. the reality lies in between. “The Pune plant is fully saturated. there are two sides of resistance. This leads to general proposition that people and their social systems will often resist change in organizations. One example of Bajaj Auto Limited is relevant here. Similarly. In order to increase its manufacturing capacity of two-wheelers. 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. like shifting of the manufacturing plants at new locations.as cost and as benefit. Many companies have been forced to do so in the past. Before we trace out the reasons for résistance to change. the managers face the problem of resistance to change.
2. Economic Factors People feel attached to the organization for satisfying their needs and economic needsphysiological. All these are well-established in the old system. etc. they simply resist such a change. Reduced Opportunities for Incentives: Employees are generally offered incentives linked to their output in the form of incentive schemes. people may feel that in the new system. Whenever there is change. psychological and social. These feelings. Psychological Factors . and turn into technological unemployment. It also highlights real inadequacies in the proposed change and suggests better ways for developing and introducing changes. Skill Obsolescence: A change is generally meant for better methods of working which may involve new techniques. technology. they will have lower opportunity to earn incentives and bonus as the new system requires additional skills. 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. 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.1. whenever people sense that new machinery (change) poses a threat of replacing or degrading them. etc. This feeling is created because people feel that those who can match the new requirements will be better off than those who cannot match. Degree of force in resistance depends on how people feel about change. Therefore. 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. precede over other needs. reduce job options. Factors in Resistance to Change People tend to evaluate the effect of change individually but they express it through group in collective form. bonus. may be seen in the context of three types of factors: economic. 3. These feeling may be based either on reality or there may be emotional feeling towards the change. When computer was introduced in the business sector in India. it attracted a lot of resistance because of this reason.. Fear of Economic Loss: A change may create fear of economic loss in the sense that it may affect economic compensation adversely. job security etc. 2.
They form their own social groups at the work place for the satisfaction of their social needs. When there is any change. Ego Defensiveness: A change may affect the ego of the people affected by the change and in order to defend their ego. low tolerance for change. they show resistance to change efforts. Therefore. The lack of adequate information about the likely impact of change further complicates the problems. i. These are qualitative and. . This lack of certainty creates anxiety and stress in the minds of people and they want to avoid it. 5. that is. Major psychological factors responsible for resistance are: ego defensiveness. Some people have very low level of tolerance for change and ambiguity as compared to others. Low Tolerance for Change: In the context of maintaining status quo. 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. and fear of unknown. which people do not want. To the extent the satisfaction of these needs is affected by a change. they resist change. The change initiated by the organization disturbs such equilibrium and people have to obtain another equilibrium which is a painful exercise. therefore. The change will bring results in future. sentiments and attitudes towards change. people may differ. A change in itself suggests that everything is not right at a particular level. Status Quo: People want status quo. 1. 1.e. 2. people resist change. status quo. Desire to Maintain Existing Social Interaction: People desire to maintain existing social interaction since it is a satisfying one. Lack of Trust in Change Agent: The effect of change is perceived in the context of change agent. their existing social interactions are likely to be changed. through their mutual compatible interactions. these people resist any new idea. 3. Fear of Unknown: A change may be perceived as entering into unchartered area which is unknown. The major factors causing resistance to change are: desire to retain existing social interaction and feeling of outside interference. which is always uncertain. the person who initiates change. Therefore. everyone tries to avoid it. If people have low degree of confidence in the change agent.Psychological factors are based on people’s emotions. particularly social needs. people resist it. may be logical from people’s point of view but may be illogical from the change agent’s point of view. the change may be perceived as an instrument for exposing the weakness of the people. lack of trust in change agent. Thus. Therefore. Social Factors People derive need satisfaction. they do not want any disturbance in their existing equilibrium of life and work pattern. 4.
This is the reason why many old industrial houses are languishing far behind and their places are being taken away by newer organizations. resource limitations. and institutes reward and punishment system. Resource Limitations: No doubt. stability of systems. Counting Past Successes: A major problem before the organizations which have past success stories is how to face challenges of the changing environment. it may not be possible for the organization to bring necessary change. a professor of strategic leadership who is considered to be a management Guru. Many organizations are designed to be innovation-resisting. The system is stabilized and any change may be perceived as a threat by the organization itself. It a change is required in these aspects. Whether it is IBM. e.” This statement suggests that organizations tend to stabilize at a particular level and if the change efforts are not brought. 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. Digital Equipment Corporation. an organization has to adapt to its environment but the adaptation has its own cost. Caterpillar. and inter-organizational agreement. Strategies. 3. Some of these reasons are basic while others are by-products of those. 2. prescribes rigid authority relationships. change initiated by managers affecting workers. a bureaucratic organization has certain fixed rules. Since these organizations have achieved success by following a particular set of management practices. values. the organization may not bring it easily because it is accustomed to a particular system. The major reasons for organizational failure to change are: counting past successes. nothing fails as spectacularly as spectacular success. Sumantra Ghoshal. For example. they become too rigid to change and they hide their failure to change in the guise of past successes. It is called ‘The Failure of Success’. sunk cost. even the organization itself resists many changes because of certain reasons. resources and processes of the most successful companies have in the past ossified into clichés. Many powerful organizations of the past have failed to change and they have developed into routines. All these work in some circumstances.. Stability of Systems: The organization may design a system through which it may derive many benefits. 1. For example.2. For example.g. dogmas. For example. if new . Zerox or nearer home-TI cycles. has commented as follows: “Nothing fails like success. first two reasons are basic and others are by-products of the first two. these organizations start falling. Organizational Resistance to Change: Not only individuals and groups within an organization resist change. millstones and routines. Feeling of Outside Interference: A change brought about by the change agent is considered to be interference in the working of people. all these companies have been victims of corporate disease. This phenomenon is heightened if the change agent belongs to another social class. If the organization is not fully equipped for meeting such demands.
Analyzers: Above two are the extreme cases of choice-making modes in between the analyzers and reactors. 4. Miles and Snow have classified them into four categories. it is not necessary that his services are done away with. It an individual is not making commensurate contribution. Thus. what will happen to these assets? Naturally. intensive planning. if any change is to be incorporated. It is necessary too that other organizations also agree to the change proposal. these can be used for specific period. 1. and reactors. If it is risk-taking. They emphasize more on cost-effectiveness. 3. It depends more on the style of top management. 4. they cannot survive. if the change is required. They go on searching new products/markets on regular basis. the organization will like to make a comparison between the outcomes of changed programme and continuing with old programme in the light of this sunk cost. the organization has to take into consideration the wishes of other organizations too. Once the assets are acquired. Reactors: These organizations realize that their specific environment is changing but fail to relate themselves with the changing environment. Sunk cost cannot be only in terms of various physical things. Defenders: These are the firms which penetrate in a narrow market product domain and guard it. decentralized controls. Therefore. Analyzers act sometimes as defenders and sometimes as prospectors.defenders.technology is adopted. Sunk Cost: Most of the organizations have sunk cost involved in various assets. Inter-organizational Agreements: The organization interacts with its environment. Prospectors: These firms use broad planning approaches. This can be in the form of people also. . centralized control. prospectors. and commensurate expenses on other items also. organization has to pay for his services though these may not be as useful. 2. and reserve some resources unutilized for future use. analyzers. Now. 5. and has zeal for progress. broad environmental scanning. forward-looking.” This is the true reflection of difference between change-initiating companies and changeresisting companies. those who watch things happen. In such a case. Let us see what someone has said long back: “There are three types of companies: those who make things happen. For example. and put less emphasis on environmental scanning. In this interaction process. they have to behave in one of the above three ways. it will require resources to procure machine. Based on the aggressiveness which various companies show in changing themselves. Otherwise. building and training for its personnel. the organization may take change programmes much more frequently. those who wonder what happened. it may enter into agreement with other organizations over certain aspects of working. the organization may enter into agreement with labour union about not bringing any technological change. innovative.
Economic Factors: Another source of individual resistance is concern that changes will lower one’s income. threatening to go on strike. and so on. immediate. do you continually use the same route and streets? Probably if you’re like most people. some may fear they’ll be unable to do so. many employees at these firms may fear that their jobs are in jeopardy. implicit. The same applies to employee. Life is complex enough. For example. we’ve categorized them by individual and organizational sources. When Boeing announces its laying off 10. Habit Every day. Let’s look at the sources of resistance. Fear of the Unknown: Change substitute ambiguity and uncertainty for the known. taking a new set of streets to work. or the like.10. To cope with this complexity. engaging in a work showdown. developing a new lunchtime routine. As human beings. So when your department is moved to a new office building across town. adjusting to the new office layout. If for example. therefore. finding a new parking place. especially when pay is closely tied to productivity. or programmed responses. Security: People who have a high need for security are likely to resist change because it threatens their feeling of safety. we’re creatures of habit.000 people or Ford introduces new robotic equipment. For instance. They may. develop a negative attitude towards quality management or behave dysfunctionally if required to use statistical techniques. And people in general don’t like the unknown. the introduction of a quality management program requires that production workers learn statistical process control techniques. Training . it means you’re likely to have to change many habits: waking up 10 minutes earlier. a change is proposed and employees quickly respond by voicing complaints. when you go to work or school. we all rely on habits. 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. It is easiest for management to deal with resistance when it is overt and immediate. Resistance can be overt.4 Cause for Resistance to Change Resistance to change doesn’t necessarily surface in standardized ways. For analytical purpose. you find a single route and you use it regularly. Organizational resistance Structural Inertia: Organizations have built-in mechanisms to produce stability. or deferred. we don’t need to consider the full range of options for the hundreds of decisions we have to make every day. When we are confronted with change. the selection process systematically selects certain people in and certain people out. this tendency to respond in our accustomed ways becomes a source of resistance.
for instance. and benefits administration – has been resisted by many human resource departments. So limited changes in subsystems tend to get nullified by the larger system. But if union norms dictate resisting any unilateral change made by management. Limited Focus of Change: Organization is made up of interdependent subsystems. Formalization provides job description. An individual union member. accountants work with marketers. One area of organizations that continues its metamorphosis is the design itself. For example. Thereat to Established Power Relationships: Any redistribution of decision-making authority can threaten long-established power relationship within the organization. Threat to Expertise: Changes in organizational patterns may threaten the expertise of specialized groups. human resource people with engineers and finance individuals with operations employees. Introduction of participative decision making or self-managed work teams are examples of changes that often are seen as threats to the power of supervisors and middle managers. the way in which companies are configured today is changing. Changing Skill Sets More organizations are utilizing cross functional teams. rules and procedures for employees to follow. for instance. The only constant in organizational life today appears to be the presence of continuous change. group norms may act as a constraint. Threat to Established Resource Allocations: the groups in the organization that control sizable resources often see change as a threat. Why? Because this outsourcing is a threat to the specialized skills held by people in HR departments. Will the change. For example. That is. if management changes the technological processes without simultaneously modifying the organization’s structure to match. The recent move by some companies to outsource many of their human resource activities – such as training. the change in technology is not likely to be accepted. They tend to be content with the way things are.5 Impact of Change on Future Manager Organizations are changing nearly daily. You can’t change one without affecting the others.and other socialization techniques reinforce specific role requirements and skills. development of pay plans. he’s likely to resist. People from one functional department are placed on terms with people from other functional areas. Group Inertia: Even if individuals want to change their behavior. may be willing to accept changes in his job suggested by management. 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. 10. . These teams are comprised of people from various areas within the company.
For example. 10.” The newer organizational structures use term problem solving.The ultimate goal is to improve organizational performance by cutting production time or time to market. In addition. When the resistance comes from the people at individual levels. As organizations must be better equipped to respond to change in their external environment. More fluid structures require that managers improve their strategic orientation. However. the following efforts can be taken: 1. the role of formal authority in implementing a change may not be effective all the times. strategic directions for the company must be identified in light of these changes. They need to be adept at reading the trends in the environment and then determining what they mean specifically for their own organization. the effect of the change may not be as functional as envisaged by the management. that is. For this purpose. This requires that managers think differently and teach employees to think differently. It may affect only a few while others may not be affected. Unless this problem is overcome properly. it can make effectively by managing resistance effectively.” Problem of overcoming resistance to change can be handled at two levels. In many cases. this is not a one-time action. even the impact of change may be dysfunctional if change is imposed upon the people by the use of formal authority. Involvement: Involvement is a process through which those who are affected by the change are brought to understand the change. Therefore. at the level of individual and at the level of group. Efforts at Individual Level A change is likely to affect some people in some way. managers must be more skilled at reading the environment and grasping the big picture. 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. It implies explanation and . through group dynamics. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. Problem solving now involves the people who are experts in the issue – not necessarily those in high positions in the organization. Stephen Robbins suggests that “…… managers in virtual structures spend most of their time coordinating and controlling external relations. 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. Locavini observes that “the secret of real success is effective management of the emotional vulnerability that accompanies organizational change. rather should be looked upon as a dialogue which continues over a period of time. typically by way of computer network links.
as discussed earlier. Commitment to take part in the change programme can be obtained in private from each individual. Efforts at Group Level Although agreement to a change can be obtained individually.then discussion of the proposed changes. Getting opinions out in the open. For using group as a means of overcoming resistance to change. so that they are looked at and evaluated. the manager can form strategies for overcoming resistance in the following manner: . meetings. Thus. helped to change attitudes. As this process goes. Thus. getting a man to commit himself in private to change programme may yield fewer results than if he voluntarily and publicly gives his commitment to an idea of change. The decision to commit oneself is a dynamic process. Usually. Such educational process can be aided by training classes. The fundamental idea in this process is to encourage the person to say something about any aspect of the change. it is desirable at the group level to get better acceptability of change. and conferences. must be understood so that its effective use can be made. 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. instead of solving the problem at the individual level. its process and working. education must be a part of the manager’s everyday activity on the job. the leader tries to overcome this resistance by leadership process. Training and Psychological Counseling: The management can change the basic values of the people by training and psychological counseling. A manager as weak leader presents change on the basis of the impersonal requirements of the situation. They must be taught new skills. Though each person interprets the change individually often. 4. sometimes. However. An effective leader tries to time a change to fit the psychological needs of his followers. either the subordinates do not resist or if they resist. understanding of change increases and personal involvement in the change increases. This helps in creating receptive environment in the organization. People always have some ideas and opinions about what is going on in the world and more specially if touches them personally. is an important trust-building task. most of the times. but a transformational leader can use personal reasons for change without arousing resistance. to become effective. 3. its basic nature. However. Obtaining Commitment: Commitment is an agreement to take an active part in the actual mechanics of the change. the level of resistance to change tends to decrease. it is more meaningful if it is done through group. It grows slowly along with relationship. Group dynamics offers some basic help in this regard. People should be educated to become familiar with change. more than one person is involved in the change. he expresses it through a group. 2. Based on these characteristics of group as a means of change. and indoctrinated in new relationships. It includes finding out from the members how they interpret the proposed changes and what they think about them.
The group contact offers some specific advantages: (i) Through groups. _________ helps to give people involved in the organizational change and inculcate a feeling of importance. Free flow of information helps people to understand the real picture of the change and many misunderstandings may be avoided. and how the benefits of the meaningful and continuous dialogue are necessary. . Research studies also support this aspect. and how members contribute. 2. Group Contact: Any effect to change is likely to succeed if the group accepts that change. It makes people feel that the organization needs their opinions and ideas and is unwilling to go ahead without taking them into account. Participation: Participation helps to give people involved in the organizational change and inculcate a feeling of importance. job design and people. Group Dynamics Training for Change: Group dynamics also helps in providing various training programmes for accepting and implementing 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. sentiments and attitudes towards change. Such training techniques include role playing. They must be made a party to the change rather than an agent for resistance to change. and sensitivity or T-group training.such aspects as the reasons for change. Such training techniques provide understanding of behaviour. many things about change can be made clear. taking whole of the group into confidence helps in maintaining a cooperative attitude. It would be prudent for management to take labour representatives into confidence before implementing any change. the group itself should be the point of contact. This is more important in the case of workers who themselves treat a separate group and do not identify with the management. Even if only some of the members are affected by the change. psychodrama. However. _________ is the alteration of work environment in an organization.1. benefits of change. there may be some person who may communicate to the same group. 2. It implies a new equilibrium between different components of the organization – technology. 3. structural arrangement. The laboratory method provides a setting where group processes can be studied intensively. Self Assessment Questions 1. one can communicate with more people per unit of time. The same is true of problem-solving. (ii) In group. For this purpose. __________ are based on people’s emotions. The organization must regard the participation as meaningful and share the results of the change with its members. mere participation may not help. It purports how the results are. 3. thereby the people can build up the climate based on mutual trust and understanding which are essential for bringing organizational changes successfully. (iii) Group can get at the basic problem very rapidly as compared to a single individual. Through the group contact.
Refer section 10. For instance. People tend to resist many types of changes because new habits or sacrifices are required. Organizational change is the alteration of work environment in an organization. Refer section 10. or the like. Changes may be influenced by external and internal factors. Why do organizations resist change? 3. psychological factors. threatening to go on strike. Economic factors. that is. immediate.6. Psychological factors 3. It is easiest for management to deal with resistance when it is overt and immediate. Resistance can be overt. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. social factors. at the level of individual and at the level of group. or deferred.10. group resistance and vested interests. Reference: . both at the formal and informal levels. engaging in a work showdown.4 3. Organizational change 2. a change is proposed and employees quickly respond by voicing complaints. Explain the nature of change? 2. 10.8 Terminal Questions 1. Participation Answers to TQs: 1. through group dynamics.9 Answers to SAQs and TQS SAQs: 1. It implies a new equilibrium between different components of the organization.7 Summary Change is inevitable. Discuss the methods of reducing resistance to change. 10. Refer section 10. Problem of overcoming resistance to change can be handled at two levels. implicit.2 2.
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