MU0002-Unit-01-Introduction to Management

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

3 2. Refer section 1.8 Summary 2.1.3 Planning 2.5 Staffing 2. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.6 Directing 2.10 Answers to SAQs and TQs .Answers to TQs: 1. Refer section 1.2 Process of Management 2.5 3. Refer section 1.7 Motivating Self Assessment Questions 2.2.9 Terminal Questions 2.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .1 Introduction Objectives 2.4 Organizing 2.

1 Introduction Follett (1933) defined management as "the art of getting things done through people”. Policy Formulation We have noted earlier that all organizations have well-defined goals and objectives. Objectives: After this studying this unit. Controlling However. You might well ask what the need for a policy is when objectives are already defined. Even . 2. Management is about accomplishing a goal efficiently. in recent time. Organizing 3.2. Commanding 4. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent. Motivating. Directing. leadership is doing the right things“. Management functions are as follows (Fayol. Coordinating 5. Through leadership and management often overlap. the two are not quite the same. leadership is about setting the desirable goals. One can also think of management functionally. It is difficult to say where objectives end and policies begin. · Explain different functions of management Process.2 Management Process Peter Drucker said: “Management is doing things right. as the action of measuring a quantity on a regular basis and of adjusting some initial plan. management functions have been regrouped into four categories. Staffing. you will be able to: · Define Management process. 1949): 1. There is a degree of overlap between the two. · Explain Planning. Planning 2. Organizing.

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

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

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

This review is used for the next planning cycle and review. Review plans 2. short-term standards for key variables that will tend to validate and support the long-range estimates must be established. Group related jobs together in a logical and efficient manner 5. It is the official organizational structure conceived and built by top management. An organization chart displays the organizational structure and shows job titles. necessary to maintain competitive advantage in the said market. The formal organization can be seen and represented in chart form. 2.5 Staffing . working toward common goals. structuring. and where decisions are to be made. The steps in the organizing process include: 1.4 Organizing It involves designing. Feedback is encouraged and incorporated to determine if goals and objectives are feasible. and relationships between departments.must be accompanied by controls to ensure proper implantation of the plans. It is the process of determining what tasks are to be done. how the tasks are to be grouped. List all tasks to be accomplished 3. who is to do. Organizational structure is the formal decision-making framework by which job tasks are divided. lines of authority. Divide tasks into groups one person can accomplish – a job 4. Assign work to individuals 6. 2. grouped. Formalization is an important aspect of structure. and goals are clearly stated. The purpose of the organizing function is to make the best use of the organization’s resources to achieve organizational goals. and coordinated. A key issue in accomplishing the goals identified in the planning process is structuring the work of the organization. who reports to whom. Monitor the plan A systematic method of monitoring the environment must be adopted to continuously improve the strategic planning process. It is the extent to which the units of the organization are explicitly defined and its policies. To develop an environmental monitoring procedure. Delegate authority to establish relationships between jobs and groups of jobs. with ideas and resources. procedures. Organizations are groups of people. and coordinating the work components to achieve organizational goal.

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

training development and maintenance of personnel. Direction is continuous process and it continues throughout the life-time of the organization. vacancies arise out of retirement. lead them and guide them on a continuous basis. It deals with future requirements: Staffing deals with current and future personnel requirements. It is a process: it is a process having a logical sequence i. A manger needs to give orders to his subordinates. Thus staffing is an ongoing process through – out the life of an organization. Thus staffing deals with the future requirements also. 6. 2. motivate them. . Direction function is performed at every level of management. Personnel policies and programs must be formulated as guides to perform the staffing function effectively. overseeing and leading people. promotion. 8.6 Directing Direction is one of the functions of management. It is a continuous function: With the growth and expansion of business additional manpower is needed. recruitment. 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”. 3. It is an important managerial function. induction. 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. 2.e. Definition According to Koontz and O’Donnel. identifying the manpower requirements.5. Through direction. etc. It is instructing people as to what to do. selection. Direction is an important managerial function. Present positions must be filled keeping in mind the future requirements. management initiates actions in the organization. 7. resignation. Direction is the managerial function of guiding. how to do and telling them to do to the best of their ability. Characteristics of Direction The characteristic features of direction are as follow: 1. It is a continuing function.

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

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

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

1 Introduction Objectives .5 3. Reference 2. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3.10 Answers to SAQs and TQs SAQs: 1. Staffing Answers to TQs: 1. Write a short not on directing. Follett 2. What is planning? 2.3 2. Reference 2. Reference 2.6 Copyright © 2009 SMU Powered by Sikkim Manipal University . Explain Staffing in detail 3.9 Terminal Questions 1. SWOT 3.2. 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.

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

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

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

4. It recognizes that organizational goals change. 7.3. Teams of all kinds are particularly important for accomplishing tasks and are targets for OD activities. Long-range Change: OD efforts are not meant for solving short-term. collaborators. Attempting to create “win-win” solutions is standard practice in OD programs. OD focuses on the elevation of an organization to a higher level of functioning by improving the performance and satisfaction. they are ongoing. 2. 9. 8. dynamic and adaptive system. rather than focusing attention on individuals. Comprehensive Change: OD efforts focus on comprehensive change in the organization. OD efforts are not one-shot actions. OD practitioners are facilitators. OD focuses on total system change and views organizations as complex social systems.3 Characteristics of OD 1. temporary. 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. rather. 3. . 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. so that change is easily observed. OD focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. or isolated problems. 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. Planned Change: OD is a strategy of planned change for organizational improvement. 3. and co-learners with the client system. OD relies on an action research model with extensive participation by client system members. OD takes a developmental view that seeks the betterment of both individuals and the organization. 4. OD views organization improvement as an ongoing process in the context of a constantly changing environment. Rather. and cyclic processes. Participation and involvement in problem-solving and decision-making by all levels of the organization are hallmarks of OD. so the methods of attaining these goals should also change. The concept of comprehensive change is based on the systems concept-open. This ‘planned’ emphasis separates OD efforts from other kinds of more haphazard changes that are frequently undertaken by organizations. Thus. 10. 6. 5. interactive.

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

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

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

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

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

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

1 Introduction Objectives 4.2 Survey Feedback 4.7 5.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .4 Grid Training 4. Refer section 3.Organization Development – Interventions Unit-04.3 3. Peter Senge 5. Refer section 3.Organization Development – Interventions Structure: 4.6 4. Refer section 3. Management development Answers to TQs: 1.4. Refer section 3. MU0002-Unit-04.5 Leadership Development 4.6 Team-building .3 Process Consultation 4. Refer section 3.2 2.

However.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. and organizational level. mediation and negotiation activities. and organizational culture. People’s behaviour may be relevant to understand at individual level. For example.12 Answers to SAQs and TQs 4. 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. work group. inter-group level. management grid. interpersonal level.11 Terminal Questions 4. French and Bell have suggested twelve families of OD interventions: diagnostic.4. such a classification of interventions may not put them into mutually exclusive categories as a particular intervention may be applied at more than one level. interventions may be required to change people at all these levels.10 Summary 4. team-building. many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others. Thus. education and training.8 Change Agents 4. French and Bell have defined OD intervention as: “Sets of structured activities in which selected organizational units (target groups or individuals) engage with a task or a sequence of tasks where the task goals are related directly or indirectly to organizational improvement. Interventions constitute the action thrust of organization development. Further. Nevertheless. 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.9 Role of Change Agents Self Assessment Questions 4. they make things happen. survey feedback.7 Inter Group Development 4. process consultation. inter-group activities.” There are various OD interventions and they are classified in different ways. the classification appears to be more relevant because it may specify the . various consultants and practitioners have different opinions about the activities which can be included in interventions. the classification of OD interventions shows variation. Therefore. techno-structural activities. group level.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Social loafing Answers to TQs: 1.12 Answers to SAQs and TQs SAQs: 1. MU0002-Unit-05-Values. Blake and Mouton.3. Refer section 4.4 2. Assumptions. Refer section 4. Refer section 4. and Beliefs in Organization Development Structure: 5. Explain Change agents and discuss the role of change agents in detail. Refer section 4. 3.6 4.1 Introduction Objectives 5. What is team-building? What are the stages of life cycle of a team? 4. Beliefs in Organization Development Unit-05-Values.2 Definitions and . Assumptions. Data collection 2. 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 3.

and beliefs constitutes an integral part of organization development. · State the implications of OD values and assumptions. · List the chronology of events of values. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers.6 Summary Self Assessment Questions 5. it is a cognitive fact for the person.3 Chronology of Events in Management and Organization Thought 5.5. you will be able to: · Explain the meaning of values. . assumptions.4 Early Statements of OD Values and Assumptions 5.5 Implications of OD Values and Assumptions 5.5.1 Introduction A set of values.3 Implications for Designing and Running Organizations 5. and they continue to evolve as the field itself evolves.7 Terminal Questions 5.2 Implications for Dealing with Groups 5. · Give the statement of OD values and assumptions.2 Definitions A belief is a proposition about how the world works that the individual accepts as true.8 Answers to SAQs and TQs 5. Most of these beliefs were formulated early in the development of the field.1 Implications for Dealing with Individuals 5.5.5. shaping the goals and methods of the field and distinguishing OD from other improvement strategies. Objectives: After studying this unit. beliefs and assumptions. beliefs and assumptions. 5.

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

by Roethlisberger and Dickson in 1939. His acceptance theory of authority proposed that authority derives from the willingness of subordinates to comply with directions rather than from position power. People were not cogs. People came to work as whole people. Group Dynamics (1940) – The scientific study of groups using experimental research methods-was launched by Kurt Lewin and his students. Lippitt (1939). Scientific management as the way to organize work and bureaucracy as the way to organize people were the prevailing paradigms for organizations in the early 1900s. Research by Lewin. Mary Parker Follett (1926). and by Homans in 1950 profoundly and irreversibly affected people’s beliefs about organizational behaviour. theory.       . much of the research. Their simple. ‘The Functions of the Executive’ by Chester 1. Barnard viewed organizations as social systems that must be effective (achieve goals) and efficient (satisfy the needs of employees). most efficient way to organize people. organizations were not machines. These approaches possessed many desirable features. Group norms had more powerful effects on productivity than economic incentives. Much of her career was devoted to finding ways to reduce adversarial relationships between workers and management. The research demonstrated the primacy of social factors on productivity and morale. and White demonstrated that democratic leadership was superior to authoritarian leadership and laissez-faire leadership in affecting group climate and group performance. impersonal rules. Some early experiments were conducted in the late 1930s. aggressiveness and poor performance. the work environment. The Famous Hawthorne Studies (1927 to 1932) were conducted at the Hawthorne plant of Western Electric Company. apathy. and the supervisor determined their performance. their feelings and attitudes about the work. repetitive jobs left them feeling alienated and dispirited. Barnard (1938) presented insights from his experiences as President of the New Jersey Bell Telephone Company. A strong hierarchy of authority. In a sense. Democratic leadership seemed to bring out the best in the groups. Reports on these studies by Mayo in 1933 and 1945. wrote an article on “The Giving of Orders” advocating participative leadership and joint problem-solving by labour and management. but also contained serious flaws that led to unintended consequences. authoritarian leadership caused dependency. extensive division of labor. 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. and practice since the late 1920s have focused on the shortcomings of these two paradigms and how to overcome the limitations. a management theorist and astute observer of labourmanagement relations.

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

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

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

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

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

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

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

3. The outcome of –––––––– was that people were not cogs and organizations were not machines.W.3 . values. State the assumptions of Theory X and Theory Y. W. Cognitive 2. 4. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5.1. __________ is associated with scientific management. Hawthorne experiments 5. and assumptions are all –––––––––– facts. 5. 5. beliefs. 5. Write a note about F. Bureaucracy 4. Taylor’s principles of scientific management. 2. Taylor 3. Values. Refer section 5. Refer section 5. The concept of –––––––––– was introduced by MaxWeber.7 Terminal Questions 1. _______________ gave theory X and theory Y. F. 2. Douglas McGregor Answers to TQs: 1. 3.8 Answers to SAQs and TQs SAQs: 1. What was the outcome of Hawthorne Experiments? 4.2 2. Define concepts. beliefs and assumptions. Refer section 5.3 3. Introduction Objectives 6.2 Congruence among System Elements 6.4 Participation and Empowerment . Refer section 5.2.4 Porras and Robertson Model of Organizational Change 6.1 Kurt Lewin and Friends 6.2.3. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.1 The Nature of Systems 6. Refer section 5.3 Systems Theory 6.3 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 Beyond the Quick Fix 6.3 The Burke-Litwin Model of Organizational Change 6.3 Socio-technical Theory and Open Systems Planning 6.3 5.2 Models and Theories of Planned Change 6.4 Open Systems Thinking

Objectives: After studying this unit. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs.6 Parallel Learning Structures 6.12 Answers to SAQs and TQs 6.5 Teams and Teamwork 6.9 Action Research Self Assessment Questions 6.7 A Normative – Re-educative Strategy of Changing 6. · Realize the importance of teams and teamwork. · Explain systems theory. We will examine the following concepts: . · Explain the terms ‘participation’ and ‘empowerment’. art and science which form the knowledge base upon which OD is constructed.6. · Explain normative-re-educative strategy of changing The knowledge base of OD is extensive and is constantly growing.8 Applied Behavioural Science 6.1 Introduction This unit describes the foundations of organization development theory and practice.11 Terminal Questions 6. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning. In this discussion. · Describe the parallel learning structures.10 Summary 6. Here we describe what we believe are the most important underpinnings for the field. you will be able to: · Explain various models and theories of planned change.

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

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

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

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

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

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

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

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

or subsystems.Fig. describes the characteristics of systems. components. which views organizations as open systems in active exchange with their environment." Kast and Rosenzweig define system as "an organized. Fagen defines system as "a set of objects together with relationships between the objects and between their attributes." Hanna says: "A system is an arrangement of interrelated parts. Systems theory is one of the most powerful conceptual tools available for understanding the dynamics of organizations and organizational change. when taking a systems approach. system denotes interdependency. and shows how systems theory enhances the practice of OD. one begins by identifying the individual parts and then seeks to understand the nature of their collective interaction.system. 6.5: A Change-based Organizational Framework 6. and interrelatedness among elements in a set that constitutes an identifiable whole or gestalt.3 Systems Theory A second foundation of organization development is systems theory." To summarize. and delineated by identifiable boundaries from its environmental supra. unitary whole composed of two or more interdependent parts. and Katz and Kahn were the first to apply open systems theory to organizations in 1966. interconnectedness." Von Bertalanffy refers to a system as a set of "elements standing in interaction. Thus. . Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950. The words ‘arrangement’ and ‘interrelated’ describe interdependent elements forming an entity. This section explains systems theory. that is the system.

Organizations are open systems. the reasons for their existence. people. They do something to the inputs via throughput. money. the organization will cease to exist. or transformation processes that change the inputs. raw material and so on.6: A System in Interaction with its Environment The law of entropy states that all systems “run down” and disintegrate unless they reverse the entropic process by importing more energy than they use. and if the environment does not want these outputs. resources. dynamics. studying open systems leads to a good understanding of organizations. Therefore. Open systems have purposes and goals. 6. Each of these three system processes must work well if the system is to be effective and survive.6.3. For example. Fig. conversion. All open systems are input-throughput-output mechanisms. and energy between system and environment. in that they permit exchange of information. Boundaries of open systems are permeable. What is inside the boundary is the system. the organization’s purposes will be reflected in its outputs. we examine the characteristics of open systems drawing OD expositions by Katz and Kahn and Hanna. . and they export products to the environment in the form of outputs. Organizations achieve negative entropy when they are able to exchange their outputs for enough inputs to keep the system from running down. A good rule of thumb for drawing the boundary is that more energy exchange occurs within the boundary than across the boundary. Every system is delineated by a boundary. Systems take inputs from the environment in the form of energy. and what is outside the boundary is the environment. and characteristics of open systems are well-known. Here.1 The Nature of Systems The nature. These purposes must align with purposes or needs in the environment. information.

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

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

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

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

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

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

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

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

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

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

Fig. and doing or implementing change efforts." the OD practitioner works: first diagnosing the situation. form of applied behavioural science. The two bottom inputs. perhaps more accurately. had this to say about it: “The research needed for social practice can best be characterized as research for social management or social engineering. problem-solving method that replicates the steps involved in the scientific method of inquiry underlies most OD activities. Action research involves three processes: data collection. 6.8: Composition of Applied Behavioural Science Organization development is both a result of applied behavioural science and a. feedback of the data to the client system members. who developed the concept of action research. then selecting and implementing treatments based on the diagnosis. and finally evaluating the effects of the treatments.From this "practice theory. I am inclined to hold the opposite to be true. 6. 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.9 Action Research The action research model – a data-based. represent contributions from pure or basic science. It is a type of action-research. and action planning based on the data. Action research is especially well-suited for planned change programs. practice research and practice theory. the two top in puts. represent contributions from applied science. Action research is a method that combines learning and doing – learning about the dynamics of organizational change. Kurt Lewin.” Concluding Comments: . behavioural science research and two behavioural science theory. a comparative search on the conditions and effects of various forms of social action. it is a program of applying behavioural science to organizations.

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

Refer section 6. What are the features of systems theory of organizational development? 5. Unfreezing 2. Ralph Kilmann 3.” Comment on this statement.2 3. Transactional change 4.2.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . Synergy Answers to TQs: 1.4. System 5.1 2. Refer section 6. “Work teams are building blocks of organizational development. 6. Refer section 6. Refer section 6.2.3 5.2 Characteristics of Organization Culture Culture and .12 Answers to SAQs and TQs SAQs: 1.Refer section 6.1 Introduction Objectives 7.3 4.2. MU0002-Unit-07-Organization Climate Unit-07-Organization Culture and Climate Structure: 7.

The concept of culture is particularly important when attempting to manage organization-wide change.3 Types of Organization Culture. thinking. but also changing the corporate culture as well.5 Developing and changing Organization Culture Self Assessment Questions 7. what they brag about. Culture is one of those terms that’s difficult to express distinctly. Practitioners are coming to realize that. Culture is comprised of the assumptions. and validated enough to be taught to new members as the correct ways of perceiving. for-profit corporation is quite different than that of a hospital which is quite different than that of a university. Comprehensively organization culture is the pattern of basic assumptions that is invented. etc.7.6 Summary 7. discovered. you will be able to: · Understand Organization Culture.4 Organization Culture and Effectiveness 7. despite the best-laid plans. – similar to what you can use to get a feeling about someone’s personality. organizational change must include not only changing structures and processes.8 Answers to SAQs and TQs 7. values.1 Introduction Basically. 7. You can tell the culture of an organization by looking at the arrangement of furniture. 1986). or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. but everyone knows it when they sense it. Martin and Meyerson. Objectives: After studying this unit. the culture of a large. · Describe different types of Organization Culture · Explain organization culture and effectiveness. . and feeling in relation to these problems (Schein. Members of an organization soon come to sense the particular culture of an organization.7 Terminal Questions 7. what members wear. organizational culture is the personality of the organization. norms and tangible signs (artifacts) of organization members and their behaviors. For example.

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

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

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

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

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

8. Self Assessment Questions 1. and patterns of daily behavior. especially when making changes in rules and processes. 4. attitudes. Emotions. ___________are those factors that influence the course of development within an organization and its results or accomplishment. Include employees in the culture change process. 3. organizational cultures can be managed and changed over time. Stay the course by being persistent. Recruit outside personnel with industry experience. _____are the visible manifestations of culture as seen in the physical and social environment of the organization. Set realistic goals that impact on the bottom line. The personal feelings. take these losses early. are particularly driven by results and are often very competitive. the “culture contract” that individuals have bought into to guide their day-to-day thoughts. 1. Assess the current culture. habits. commitment. 7. Guidelines for change Despite the significant barriers and resistance to change. ________cultures are outward looking. 3. so that they are able to interact well with the organizational personnel. 5. so that a consistent message is delivered from all management team members. 2. Make changes from the top down. 9.6 Summary .3. 7. Simple guidelines such as the following can be helpful. Expect to have some problems and find people who would rather move than change with the culture and. 6. Take out all trappings that remind the personnel of the previous culture. Move quickly and decisively to build momentum and to defuse resistance to the new culture. These emotions will be a major input into the clash or compatibility of the two cultures. if possible. 2. This attempt to change culture can take many different forms.

and strategic constituencies approach. Artifacts 2.2 2. Refer section 7.Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. Discuss the development and change of organizational development. Causal variables Answers to TQs: 1.3 3. Refer section 7. intervening variables and end-result variables and there exists interrelationship among these variables. 7. Market 3. Organizational effectiveness can be measured through various approaches. Effectiveness of an organization can be increased through economic man approach and administrative man approach. behavioural approach. Finally. Briefly explain different types of organizational culture.7 Terminal Questions 1.8 Answers to SAQs and TQs SAQs: 1.goal approach.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . effectiveness through adaptive-coping cycle has been discussed. 2. Factors in organizational effectiveness include casual variables. 7. Refer section 7. 3. Explain the characteristics of organization culture. Organizations to be successful must be efficient and effective. system-resource approach. .

1 Introduction Politics and Power and politics.” Organization development has been criticized for not taking into account power in organizations. power must be exercised.5 Organizational Politics Defined and Explored 8.3 Two Faces of Power 8. Organization Development Unit-08. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics. In this unit.10 Terminal Questions 8.2 Power Defined and Explored 8.4 Theories about the Sources of Social Power 8. must be understood if one is to be effective in organizations.Power. Politics and Organization Development Structure: 8.1 Introduction Objectives 8. we examine power and politics in relation to organization development. and for change to occur in an organization. That criticism was essentially correct for many years although it is less valid .8 Acquiring and using Power Skills Self Assessment Questions 8. indisputable facts of organizational life.9 Summary 8.7 Operating in a Political Environment 8. As Warner Burke observes: "Organization development signifies change.6 The Role of Power and Politics in the Practice of OD 8.MU0002-Unit-08Power.11 Answers to SAQs and TQs 8.

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

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

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

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

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

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

2. the values. Group support: If the OD group is strong internally. the resources of OD expertise and ability to help organizational subunits solve their pressing problems. the technology. Sponsorship: "Organization development groups will gain power to the extent that they have sponsorship.strength of OD derives from the strategy of change. Competence: Demonstrated competence is the most important source of power. 6. 8.7 Operating in a Political Environment We will present some general observations on operating in a political environment. and ability to gain organizational support. Paying attention to these sources of power will enhance the likelihood of success of OD programs. it will be strong externally. Success leads to credibility and stature. 5. According to the framework of French and Raven. in powerful places. informational power (the consultant has a wealth of information about the strengths and weaknesses of the organization). it will gain more power. the OD consultant possesses power from the following bases: legitimate power (the OD program and consultant are authorized by the organization’s decision makers). . followed by some rules of thumb for the OD practitioner. Michael Beer has identified additional means by which an OD group can gain and wield power in organizations: 1. Early success in the OD program and its usefulness to key managers of the organization helps promote this reputation. These sources of influence produce a substantial power base that will enhance the likelihood of success. Resource management: Power accrues to those who control resources-in this case. Stature and credibility: Beer notes that power accrues to those who have been successful and effective." 4. 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. expert power (the consultant possesses expert knowledge)."34 This maxim has been recognized for years under the heading of "get top-level support for the program. organization development practitioners operate from a potentially strong power base they can use to advantage. and possibly referent power (others may identify with and be attracted to the consultant). preferably multiple sponsorship. acceptability. If the OD group is cohesive and free of internal dissention. and the roles of OD practitioners. First.

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

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

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

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

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

Refer section 8.2. Refer section 8.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . 3. Refer section 8. 5. 8. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9.Refer section 8. Referent power 4. Explain the role of power and politics in the practice of OD. Define organization politics. Personality Answers to TQs: 1.5 4. Refer section 8.6 5.4 3.1 Introduction . McClelland 3. Describe briefly various theories of power. Power 2. 4.2 2. Harold Lasswell 5.11 Answers to SAQs and TQs SAQs: 1. Identify the bases of individual power and the respective strategies for their success.

8 Total Quality Management 9.7 Parallel Learning Structures 9.4 Management By Objectives 9. These interventions vary from standardized program that have been developed and sometimes tailored program.12 Answers to SAQs and TQs 9. Nothing is permanent except change because change is permanently changing.10 Summary 9.3 Socio Technical Systems 9.9 Reengineering Self Assessment Questions 9. In this dynamic and fluid environment.2 Meaning and Definitions 9. These methods are receiving increasing attention in Organization Development.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. Objectives: . An organization development intervention is a sequence of activities. These programs are derived from careful diagnosis.5 Quality Circles 9. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design.11 Terminal Questions 9. events intended to help an organization improve its performance and effectiveness. One important intervention technique is Technostructural interventions because these are related to technical and structural issues such as how to divide labour and how to coordinate department which is related to Restructuring organization.6 Quality of Work Life Projects 9. organizational problems may repeat.Objectives 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. actions.

Once diagnosed and an appropriate correction developed. includes removing or adding layers to hierarchy. Weeks and months of group effort are saved. 9. Greater Predictability. you will be able to: · Explain the Socio technical change. Succession Doesn’t Destroy Change Effort. Changes can involve decentralization and centralization. Basic reinforcement theories. Cost is Low. meaning the major costs are associated with analysis and design of change. · Discuss the Management By Objectives · Explain the Quality Circles. This normally is a reasonable. Rapidity of change. Advantages of Structural Interventions There are a number of reasons why a consultant should consider employing a structural intervention. 5. and OD practice enables the change agent to estimate the probable consequences of the change. and more . Structure changes are normally “institutionalized” and less subject to this problem. The cost of structural change is generally “front-end” loaded. 2. Downsizing associated with restructuring. From a benefit cost analysis. Organization Acceptance of Change.After studying this unit. their attractiveness is also increased by the following advantages: 1. structural Interventions compare quite favorably with all other alternatives. 3. organization theory. One problem with behavioral/ group interventions is the tendency for new managers or employees to discount or fail to continue the change program. change can be introduced relatively rapidly by top management. · Explain Total Quality Management. · Discuss the parallel Learning Structures. · Explain Reengineering. 4.2 Meaning and Definitions Structural Intervention is related to the changes that relate elements of organization to one another. Structural changes are consistent with their operating styles and are generally understood by practitioners. Managers and administrators are notoriously pragmatic. In addition.

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

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

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.

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

5 4. Refer section 9.11 Terminal Questions 1. Refer section 9. Quality circle Answers to TQs: 1. What are the advantages of structural interventions? 3. Drucker represents a participative approach to employee involvement in problem solving and productivity improvement.3 2. Write a short note on Total Quality Management.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . ties reward to performance and increase workers knowledge and skills through extensive training. Refer section 9. Explain Management By Objectives? 4.12 Answers to SAQs and TQS SAQs: 1. provides relevant information to all employees.2 3. TQM pushes decision making power downwards in the organization. 9. Discuss Socio Technical Systems? 2. 9. . It consists of small group of employees who meet voluntarily to identify and solve productivity problems.Refer section 9. It is also called continuous quality improvement. Intervention 2.

5 Impact of Change on the Future Manager 10. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future.1 Introduction Objectives 10. Hence. organizational problems may repeat.9 Answers to SAQs and TQs 10.6 Methods of Reducing Resistance to Change. In this dynamic and fluid environment.4 Causes for Resistance to Change. cope with the ongoing changes successfully in the first instance.7 Summary 10. and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other. 10.1 Introduction Change in Organizations are increasingly realizing the fact that change is the price of the survival. Objectives: .3 Resistance to Change 10. Nothing is permanent except change because change is permanently changing.MU0002-Unit-10-Managing Organization Development Unit-10-Managing Change in Organization Development Structure: 10.2 Nature of Change 10. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented).8 Terminal Questions 10. Self Assessment Questions 10.

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

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

etc. Reduced Opportunities for Incentives: Employees are generally offered incentives linked to their output in the form of incentive schemes. they will have lower opportunity to earn incentives and bonus as the new system requires additional skills. and turn into technological unemployment. When computer was introduced in the business sector in India. These feeling may be based either on reality or there may be emotional feeling towards the change. technology. 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. All these are well-established in the old system. etc. These feelings. bonus. Degree of force in resistance depends on how people feel about change. either real or emotional. Economic Factors People feel attached to the organization for satisfying their needs and economic needsphysiological. People may perceive that they will be adversely affected by the change in terms of their needs satisfaction in the following ways: 1. 3.1. Whenever there is change. psychological and social. people may feel that in the new system. This feeling is created because people feel that those who can match the new requirements will be better off than those who cannot match. job security etc. It also highlights real inadequacies in the proposed change and suggests better ways for developing and introducing changes. they simply resist such a change. Factors in Resistance to Change People tend to evaluate the effect of change individually but they express it through group in collective form. Fear of Economic Loss: A change may create fear of economic loss in the sense that it may affect economic compensation adversely. Skill Obsolescence: A change is generally meant for better methods of working which may involve new techniques. may be seen in the context of three types of factors: economic. 2. whenever people sense that new machinery (change) poses a threat of replacing or degrading them. 2. 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. it attracted a lot of resistance because of this reason.. Therefore. Psychological Factors . reduce job options.

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

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

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

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

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

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

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

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

10. Refer section 10. Resistance can be overt. a change is proposed and employees quickly respond by voicing complaints. Organizational change is the alteration of work environment in an organization.2 2. or the like. Refer section 10. social factors.9 Answers to SAQs and TQS SAQs: 1. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. threatening to go on strike. It is easiest for management to deal with resistance when it is overt and immediate. Why do organizations resist change? 3. People tend to resist many types of changes because new habits or sacrifices are required. Reference: . psychological factors. implicit. For instance.6. through group dynamics. Changes may be influenced by external and internal factors. that is. Discuss the methods of reducing resistance to change. engaging in a work showdown. 10. Refer section 10.8 Terminal Questions 1. or deferred. both at the formal and informal levels. 10. immediate. Economic factors. It implies a new equilibrium between different components of the organization. group resistance and vested interests. Explain the nature of change? 2. at the level of individual and at the level of group. Problem of overcoming resistance to change can be handled at two levels. Psychological factors 3.4 3. Participation Answers to TQs: 1.7 Summary Change is inevitable. Organizational change 2.

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