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Unit-01-Introduction to Management Structure: 1.1 Introduction Objectives 1.2 Definitions of Management 1.3 Characteristics of Management 1.4 Scope and Levels of Management 1.5 Importance of Management 1.6 Role of Management 1.7 Administration and Management Self Assessment Questions 1.8 Summary 1.9 Terminal Questions 1.10 Answers to SAQs and TQs 1.1 Introduction Management is a global need. It is essential to every individual, a family, educational institution, hospital, religious organizations, team of players, a government, military systems, cultural body, urban centers and business enterprises. No individual can satisfy all his needs by himself. Men should join together and accomplish goals through co-operation. Whenever, there is an organized group of people working towards a common goal, some type of management is needed. A business enterprise must be directed and controlled by a group of people to achieve its goals. The resources of money, manpower, material and technology will be waste unless they are out to work in a co-ordinated manner. It is the ‘management’ which uses the available resources in such a manner that a business enterprise is able to earn ‘surplus’ to meet the needs of growth and expansion. Management is required to plan, organize, co-
ordinate and control the affairs of a business concern. It brings together all resources and motivates people to achieve the objectives of a business enterprise. Objectives: After studying this unit, you will be able to: · Define management. · Explain the characteristics of management. · Differentiate between management and administration. · State the principles of management. · Explain the roles of managers. · Explain managerial skills. 1.2 Definitions of Management Management may be defined in many different ways. Many eminent authors on the subject have defined the term “management”. Some of these definitions are reproduced below: According to Lawerence A. Appley – “Management is the development of people and not the direction of things.” In the words of George R. Terry – “Management is a distinct process consisting of planning, organizing, actuating and controlling performed to determine and accomplish the objectives by the use of people and resources.” According to James L. Lundy – “Management is principally the task of planning, co-ordinating, motivating and controlling the efforts of others towards a specific objective.” In the words of Henry Fayol – “To manage is to forecast and to plan, to organize, to command, to co-ordinate and to control.” According to Peter F. Drucker – “Management is a multi-purpose organ that manages a business and managers and manages worker and work”. In the words of Koontz and O’Donnel – “Management is defined as the creation and maintenance of an internal environment in an enterprise where individuals working together in groups can perform efficiently and effectively towards the attainment of group goals”.
According to Newman, Summer and Warren – “The job of management is to make co-operative endeavor to function properly. A Manager is one who gets things done by working with people and other resources.” From the definitions quoted above, it is clear that “management” is a technique of extracting work from others in an integrated and co-ordinated manner for realizing the specific objectives through productive use of material resources. Mobilizing the physical, human and financial resources and planning their utilization for business operations in such a manner as to reach the defined goals can be referred to as “management”. If the views of the various authorities are combined, management could be defined as a “distinct ongoing process of allocating inputs of an organization (human and economic resources) by typical managerial functions (planning, organizing, directing and controlling) for the purpose of achieving stated objectives, namelyoutput of goods and services desired by its customers (environment). In the process, work is performed with and through personnel of the organization in an ever-changing business environment.” From the above, it is clear that management refers to the process of getting activities completed efficiently and effectively with and through other people. The process represents the functions or primary activities engaged in by managers. These functions are typically labeled planning, organizing, leading, and controlling. Efficiency is a vital part of management. It refers to the relationship between inputs and outputs. If you can get more output from the given inputs, you have increased efficiency. Similarly, if you can get the same output from less input, you also have increased efficiency. Since managers deal with input resources that are scarce-mainly people, money and equipment-they are concerned with the efficient use of these resources. Management, therefore, is concerned with minimizing resource costs. Efficiency is often referred to as “doing things right”. However, it is not enough simply to be efficient. Management is also concerned with getting activities completed; i.e. it seeks effectiveness. When managers achieve their organization’s goals, we say they are effective. Effectiveness can be described as “doing the right things”. So efficiency is concerned with means and effectiveness with ends. Efficiency and effectiveness are interrelated. For instance, it is easier to be effective if one ignores efficiency. Timex could produce more accurate and attractive watches if it disregarded labour and material input costs. Some federal government agencies have been criticized regularly on the grounds that they are reasonably effective but extremely inefficient; that is, they get their jobs done but at a very high cost. Management is concerned, then, not only with getting activities completed (effectiveness), but also with doing so as efficiently as possible. Can organization be efficient and yet not effective? Yes, by doing the wrong things well. Many colleges have become highly efficient in processing students. By using computer-assisted learning, large lecture classes, and heavy reliance on part-time faculty, administrators have significantly cut the cost of educating each student. Yet students, alumni, and accrediting agencies have criticized some of these colleges for failing to educate their students properly. Of
feeling of management is result-oriented. organizing. Intangible Force: Management has been called an unseen force. . Results through Others: The managers cannot do everything themselves. It is the most critical input in the success of any organized group activity. directing and controlling. They must have the necessary ability and skills to get work accomplished through the efforts of others. labour and capital. It co-ordinates the efforts of workers to achieve the goals of the organization. 3. Its presence is evidenced by the result of its efforts-orderliness.3 Characteristics of Management Management is a distinct activity having the following salient features or characteristics: 1. informed employees. Integrative Force: The essence of management is integration of human and other resources to achieve the desired objectives. Thus. management is an essential ingredient of an organization. although they can’t observe it during operation. namely. It is imperative that the organizational goals must be well-defined and properly understood by the mangers at various levels. Goal-oriented: Management is a purposeful activity. And poor management is most often due to both inefficiency and ineffectiveness or to effectiveness achieved through inefficiency. Managers also seek to harmonize the individuals’ goals with the organizational goals for the smooth working of the organization. It is the force which assembles and integrates other resources. the process of management involves decision-making and putting of decisions into practice. capital and materials. 1. 4. Managers apply knowledge. staffing. Economic Resource: Management is one of the factors of production together with land. These functions are so interwoven that it is not possible to lay down exactly the sequence of various functions or their relative significance. they require the catalyst of management to produce goods and services required by the society. experience and management principles for getting the results from the workers by the use of non-human resources. They must motivate the subordinates for the accomplishment of the tasks assigned to them. 6. Distinct Process: Management is a distinct process consisting of such functions as planning. Thus. 2.course. high efficiency is associated more typically with high effectiveness. People often remark of the effectiveness (or ineffectiveness) of management on the basis of the end results. 5. buoyant spirit and adequate work output. One may not see with the naked eyes the functioning of management but its results are apparently known. The success of management is measured by the extent to which the organizational goals are achieved. labour. These factors do not by themselves ensure production. In essence. All these resources are made available to those who manage.
Multi-disciplinary Subject: Management has grown as a field of study (i. education. 10. The application of these concepts. people . the effective use of the five M’s of management (money. 1. · Management as a system of authority According to Herbison and Myers. a hierarchy of command and control. as we move down in the managerial hierarchy. Authority enables the managers to perform their functions effectively. materials. Anthropology. So it is treated as a science. money and machines into a productive. Basically. that is. Sociology and Psychology. management is the rule-making and rule-enforcing body. materials. The principles and techniques of management are equally applicable in the fields of business. discipline) taking the help of so many other disciplines such as Engineering. Henri Fayol suggested that principles of management would apply more or less in every situation. Sociology and Operations Research have also contributed to the development of management science. · Management as an economic resource Management is one of the factors of production along with land. manpower. 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. how effectively and economically the five M’s are combined together to produce desired results. A Science and an Art: Management has an organized body of knowledge consisting of welldefined concepts. management may be understood as (i) an economic resource. Similarly. government and hospital. Since the skills acquired by a manager are his personal possession. For instance. principles and techniques which have wide applications.7. productivity orientation drew its inspiration from Industrial Engineering and human relations orientation from Psychology. 8. System of Authority: Management as a team of managers represents a system of authority. In other words. According to Newman. According to Herbision and Myers. useful. It is bound together by a web of relationships between superiors and subordinates. In modern organizations.4 Scope of Management The scope of management is very wide. Managers at different levels possess varying degrees of authority. management is viewed as an art. principles and techniques requires specialized knowledge and skills on the part of the manager. it refers to three distinct ideas. labour and capital.e. military. and (iii) a class or elite. 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. 9. (ii) a system of authority. management is required to covert the disorganized resources of men. on-going concern. Generally. Much of the management literature is the result of association of these disciplines. Universal Application: Management is universal in character.
the upper level of management) and (ii) operating management (i. 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. its Chairman. his job is to see that the decisions are implemented. or the Chief Executive. wage and salary director of a company may assist in fixing wages and salary structure as a member of the Board of Directors. Top management determines objectives and provides direction to enterprise activities. planning and setting up of standards. Operative management is concerned with the “doing” function such as implementation of policies. Managers working at top levels enjoy more authority than people working at lower levels. and the range of production. the lower level of management). day-to-day matters. Middle management (departmental heads like work manage. the term management refers to the group of individuals occupying managerial positions. . technical facilities.e. Managing Director. Levels of management refer to a line of demarcation between various managerial positions in an enterprise. Considering the hierarchy of authority and responsibility. ranks. For instance.. one can identify three levels of management namely: i) Top management of a company consists of owners/shareholders. The levels of management depend upon its size. Levels of Management An enterprise may have different levels of management. and directing the operations to attain the objectives of the enterprise. As a separate group. We generally come across two broad levels of management. Board of Directors.. They transmit orders. The managerial class has become very important in modern organizations owing to its contribution to business success. All the managers form the chief executive to the first line supervisors are collectively addressed as ‘Management’ which refers to the group. Instructions and decisions downward and carry the problem and suggestions upward. or the General Manager or Executive Committee having key officers. or. personnel manager etc. Administrative management is concerned with “thinking” functions such as laying down policy. finance manager. but as head of wages and salary department. (i) administrative management (i. But in actual practice. viz. · Management as a class or elite Sociologists view management as a distinct class in society having its own value system.e.are bound by authority relationships.) interprets and explains the policies framed by the top management. The real significance of levels is that they explain authority relationships in an organization. Lower management (first line supervisors) is concerned with routine.
They are responsible to the top management for the functioning of their department.ii) Middle management of a company consists of heads of functional departments namely. They provide the guidance and the structure for a purposeful enterprise. f) To provide overall leadership to the enterprise. . Without them the top management’s plans and ambitious expectations will not be fruitfully realized. 2.. Financial Controller. men. They devote more time on the organization and motivation functions of management. machines and methods to put the plans into action. e) To assign activities. iii) Lower level or operative management of a company consists of Superintendents. Purchase Manager. It devotes more time on planning and co-ordinating functions. policies and plans for the enterprise. Supervisors. etc. It is accountable to the owners of the business of the overall management. b) To make policies and frame plans to attain the objectives laid. It serves as an essential link between the top management and the lower level or operative management. Middle management: The job of middle management is to implement the policies and plans framed by the top management. It is also described as the policy-making group responsible for the overall direction and success of all company activities. The important functions of top management include: a) To establish the objectives or goals of the enterprise. 1. c) To set up an organizational framework to conduct the operations as per plans. b) To interpret the policies chalked out by top management. The following are the main functions of middle management: a) To establish the objective or goals of the enterprise. materials. and Divisional Sectional Officers working under these Functional Heads. d) To recruit and select suitable operative and supervisory staff. Production Manager. duties and responsibilities for timely implementation of the plans. Marketing Manager. e) To exercise effective control of the operations. c) To prepare the organizational set up in their own departments for fulfilling the objectives implied in various business policies. Top management: Top management is the ultimate source of authority and it lays down goals. etc. d) To assemble the resources of money. Foremen.
Their authority and responsibility is limited. an organization is merely a collection of men. The importance of management can be understood from the following points. 1. 3. h) To co-operate with the other departments for ensuring a smooth functioning of the entire organization.f) To compile all the instructions and issue them to supervisors under their control. A right climate is created for workers to put in their best and show superior performance. It enables employees to move cooperatively and achieve goals in a coordinated manner.5 Importance of Management According to Drucker. Without management. They are also involved in the process of decisions-making. They are concerned with direction and control functions of management. accounts officers and so on. machines. It is the activating force that gets things done through people. It consists of foreman. g) To motivate personnel to attain higher productivity and to reward them properly. the resources of production remain resources and never become production. and actual operations are the responsibility of this level of management. (ii) Effective leadership and motivation: In the absence of management. They have to get the work done through the workers. They allot various jobs to the workers. Employees feel a sense of security when they find a body of individual’s working day and night for the continued growth of an organization. Management creates teamwork and . sales officers. k) To make suitable recommendations to the top management for the better execution of plans and policies. They pass on the instructions of the middle management to workers. money and material. Lower or operative management: It is placed at the bottom of the hierarchy of management. j) To report to top management. (i) Optimum use of resources: Management ensures optimum utilization of resources by attempting to avoid wastage of all kinds. It helps in putting the resources to the best advantage within the limitations set by the organization and its environment. They are in direct touch with the rank and file or workers. the working of an enterprise will become random and haphazard in nature. i) To collect reports and information on performance in their departments. supervisors. In its absence. evaluate their performance and report to the middle level management. They devote more time in the supervision of the workers. Management makes group effort more effective. management is the dynamic lift-giving element in every organization. They interpret and divide the plans of the management into short-range operating plans.
In the final analysis. 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. Management is goal-oriented. With a view to realize the predetermined goals-managers plan carefully. They try to put everything on the right tract. procedures and reward systems. manager tries to strike a happy balance between the demands of employees and organizational requirements. skills. and specialized knowledge. Successful managers are the ones who anticipate and adjust to changing circumstances rather than being passively swept along or caught unprepared. . techniques. government policy. etc.. Management as a profession By a professional manager. iii) The establishment of a representative organization with professiona-lizing as its goal. An enterprise has to take note of these changes and adapt itself quickly. Managers help an organization by anticipating these changes (carefull planning. (iv) Achievement of goals: Management plays an important role in the achievement of objectives of an organization. often threaten the survival of a firm. According to McFarland. Failure to take note of customer’s needs regarding full efficiently has spelt doom for ‘Ideal java’ in the two-wheeler market in India. all these help in realizing goals with maximum efficiency. (vi) Improves standard of living : Management improves the standard of living of people by (a) using scarce resources efficiently and turning out profits. To this end. a profession possesses the following characteristics: i) A body of principles. competition. (b) Ensuring the survival of the firm in the face of continued changes. (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. hire competent people and provide necessary guidance. ii) Formalized methods of acquiring training and experience. forecasting combined with efficient use of resources) and taking appropriate steps. methods. (v) Change and growth: Changes in technology. Organize the resources properly. Industrial peace is an essential requirement for increasing productivity. Thus unnecessary deviations. They initiate prompt actions whenever workers express dissatisfaction over organizational rules.motivates employees to work harder and better by providing necessary guidance. Overlapping efforts and waste motions are avoided. Objective can be achieved only when the human and non-human resources are combined in a proper way. (iii) Establishers sound industrial relations: Management minimizes industrial disputes and contributes to sound industrial relations in an undertaking. counseling and effective leadership.
however. Management is a profession to the extent it fulfils the above conditions. an art as well as a profession. Management Development Institute. What he discovered challenged several long-held notions about the manager’s job. Some individual business organizations. a management degree is not a pre-requisite to become a manager. There are a number of representative organizations of management practitioners almost in all countries such as the All India Management Association in India.6 Role of Management In the late 1960s. Henry Mintzberg did a careful study of five chief executives at work. the American Management Association in U. manipulating prices and markets are by no means uncommon management practices. in contrast to the predominant views at the time that managers were reflective thinkers who carefully and systematically processed information before making decisions. little regard is paid to the elevation of service over the desire for monetary compensation is evident by switching of jobs by managers. Management partially fulfils the third characteristic of profession. and it is distinct. As a social science. the All India Management Association. management is not as exact as natural sciences. and v) The charging of fees based on the nature of services. There is no ethical code of conduct for managers as for doctors and lawyers. do not seem to adhere to the principle of “service above self”. 1. Management does not fulfill the last two requirements of a profession. etc. For instance. the Indian Institute of Management.. But unlike medicine or law.S. Management is also a profession in the sense that formalized methods of training is available to those who desire to be managers.iv) The formation of ethical codes for the guidance of conduct. bribing public officials to gain favours. none of them has the professionalizing of the management as its goal. managers in general. Training facilities are provided in most companies by their training divisions. In fact. identifiable discipline. Furthermore. Indeed such mobile managers are regarded as more progressive and modern than others. try to develop a code of conduct for their own managers but there is no general and uniform code of conduct for all managers. However. sabotaging trade unions. We have a number of institutes of management and university departments of management which provide formal education in this field. Mintberz found that his managers engaged in a large number of varied. A number of organizations such as the Administrative Staff College of India. and short-duration activities. unpatterned. 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. However.A. and it is not as fully a profession as medicine and law. and the university departments of management offer a variety of short-term management training programmes. It may be concluded from the above discussion that management is a science. There was little time for reflective thinking because the managers encountered .
When they represent the organisation to outsiders.constant interruptions. he or she is acting in a figurehead role. and may be inside or outside the organization. signing perform a number of routine legal documents. Informational Roles: All managers. the transfer of information. . But in addition to these insights. Mintzberg concluded that managers perform ten different but highly interrelated roles. obliged to Greeting visitors. what competitors may be planning. Managers also act as a conduit to transmit information to organizational members.1: Mintzberg’s Managerial Roles Role Interpersonal Figurehead Description Identifiable Activities Leader Symbolic head. Responsible for the motivation Performing virtually all and activation of subordinates. duties of a legal or social nature. The term ‘management roles’ refers to specific categories of managerial behaviour. they do so by reading magazines and talking with others to learn of changes in the public’s tastes. This role includes hiring. Typically. Mintzberg provided a categorization scheme for defining what managers do based on actual managers on the job. and associated duties. Half of these managers’ activities lasted less than nine minutes each. Mintzberg described this activity as contacting external sources who provide the manager with information. he or she has an outside liaison relationship. and disciplining employees. When that sales manager confers with other sales executives through a marketing trade association. These ten roles can be grouped as those primarily concerned with interpersonal relationships. motivating. subordinates. The sales manager who obtains information from the human resources manager in his or her same company has an internal liaison relationship. This is the disseminator role. All managers have a role as a leader. Interpersonal Roles: All managers are required to perform duties that are ceremonial and symbolic in nature – interpersonal roles. fulfill informational roles-receiving and collecting information from organizations and institutions outside their own. Mintzberg called this the monitor role. These sources are individuals or groups outside the manager’s unit. training. and the like. training. activities that involve responsible for staffing. manages also perform a spokesperson role. to some degree. The third role within the interpersonal grouping is the liaison role. Table 1. 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. and decision-making.
some involves interpretation and integration of diverse value positions of organizational influencers. performing other favors and information. Transmits information to Holding board meetings. results. maintaining it current) to develop thorough personal contacts. projects” to bring about change. performing all kinds – in effect. making phone subordinates to members of calls to relay information. outsiders on organization’s giving information of the plans. etc. the making any activity that involves or approval of all significant budgeting and the Informational Monitor Disseminator Spokesperson Decisional Entrepreneur Disturbance handler Resource allocator . understanding of organization and environment. unexpected involve disturbances and disturbances crises Responsible for the allocation Scheduling. serves as expert on organization’s industry. emerges as nerve center of internal and external information about the organization. policies. media. Searches organization and its Organizing strategy and environment for opportunities review sessions to and initiates “improvement develop new programs. supervises design of certain projects as well. requesting of organizational resources of authorization. actions. activities that involve outsiders. Responsible for corrective Organizing strategy and action when organization faces review sessions that important.Liaison Maintains self-developed Acknowledging mail.. Transmits information received Holding informational from outsides or from other meetings. Seeks and receives wide variety Reading periodicals and of special information (much of reports. the organization – some information is factual. network of outside contacts doing external board and informers who provide work.
and spokesperson are more important at the higher levels of the organization than at the lower ones. The evidence generally supports the idea that managers – regardless of the type of organization or level in the organization-perform similar roles. negotiations. The Nature of Managerial Work (New York: Harper & Row. Responsible for representing Participating in union the organization at major contract negotiations. human. are heavily involved in technical aspects of the organization’s operations. physical and monetary resources. As disturbance handlers. However. Specifically. Conversely. such as engineering. Technical Skills: First-line managers. Negotiator programming of subordinates work. finance. Source: Henry Mintzberg. computers. An Evaluation: A number of follow-up studies have tested the validity of Mintzberg’s role categories across different types of organizations and at different levels within given organizations. the emphasis that managers give to the various roles seems to change with hierarchical level. a manager’s job is varied and complex. Decisional Roles: Finally. figurehead. the leader role is more important for lowerlevel managers than it is for either middle-or-top-level managers. During the early 1970. research by Robert L. He also found that the relative importance of these skills varied according to the manager’s level within the organization. Managerial Skills As you can see from the preceding discussion. Inc. managers perform as negotiators when they discuss and bargain with other groups to gain advantages for their own units. as well as many middle managers. pp 93-94 Copyright Ó 1973 by Hency Mintzberg. managers take corrective action in response to previously unforeseen problems. As resource allocators. 1973). liaison. For example. the roles of disseminator. Katz found that managers need three essential skills or competencies: technical. Mintzberg identified four decisional roles which revolve around the making of choices. Reprinted by permission of Harper & Row. managers are responsible for allocating human. or manufacturing. Last. As entrepreneurs. negotiator.organizational decisions. Managers need certain skills to perform the duties and activities associated with being a manager. Technical skills include knowledge of and proficiency in a certain specialized field. and conceptual. managers initiate and oversee new projects that will improve their organization’s performance. an accounts payable manager must be proficient in accounting rules and standardized . Publishers.
administration is a higher level function. it remains just as important at the top levels of management as it is at the lower levels. But some English authors like Brech are of the opinion that management is a wider term including administration. Managers with good human skills can get the best out of their people. Some writers do not see any difference between the two terms.7 Administration and Management The use of two terms ‘management’ and ‘administration’ has been a controversial issue in the management literature. Administration is a higher level function: . this skill is crucial. 1. 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. They know how to communicate. 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. According to them. Conceptual Skills: Managers also must have the ability to think and to conceptualize about abstract situations. Since managers deal directly with people. Although technical skills become less important as manager moves into higher levels of management.forms so that she can resolve problems and answer questions that her accounts payable clerks might encounter. etc. These types of conceptual skills are needed by all managers at all levels but become more important as they move up the organizational hierarchy. ii) Management is a generic term and includes administration. Thus. These abilities are essential to effective decision-making. In fact. iii) There is no distinction between the terms ‘management’ and ‘administration’ and they are used interchangeably. even top managers need some proficiency in the organization’s speciality. Spriegal and Lansburg. lead. management is a lower-level function and is concerned primarily with the execution of policies laid down by administration. and all managers are involved in making decisions. Those who held management and administration distinct include Oliver Sheldon. Floerence and Tead. while others maintain that administration and management are two different functions. and inspire enthusiasm and trust. Human Skills: The ability to work well with other people both individually and in a group is a human skill. motivate.
at lower levels of management. Spriegel and Walter. Thus. Scope It is concerned with It is concerned with the determination of major implementation of objectives and policies.. is a doing function. Administration is a determinative function. whereas management refers to execution of policies laid down by administration. policies. of the organisation. administrative decisions. administration involves broad policy-making and management involves the execution of policies laid down by the administration. 5. environmental forces.Administration determines Management decides who Making what is to be done and when shall implement the it is to be done. Managers are Administrators are basically concerned mainly with concerned with planning and organisation and direction control. making strategic plans to deal plans and policies of the effectively with the organisation. 6. management as an executive function which is primarily concerned with carrying out of the broad policies laid down by the administration. 4.e. Environment Administration has direct Management is mainly interaction with external concerned with internal environment of business and forces. objectives. Table 1. on the other hand. 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. Nature Administration relates to the Management relates to decision-making. of human resources. operative workforce for the execution of plans.2: Distinction between Administration and Management: Basic 1. Meaning Administration Management Administration is concerned Management means with the formulation of getting the work done objectives. i. plans and policies through and with others. 7. This view is held by Tead. Status Administration refers to Management is relevant higher levels of management. 8. 3. Direction of It is concerned with leading It is concerned with Human Resources and motivation of middle leading and motivation of level executives.Administration refers to policy-making. It thinking function. Usage of Term The term ‘administration’ is The term ‘management’ is often associated with widely used in business . It is a execution of decisions. Decision. 2.
counseling and effective leadership. Money. There are three levels of management-top. Managers perform different roles to discharge their responsibilities. Explain its characteristics. Five M’s of management (________. 2. co-ordinating. 1. 3. Still management is not completely a profession. Management 2.government offices. 1. Human skills are important at all managerial levels. machinery and methods or ways of doing things) depends to a great extent on the quality of management. middle and lower. __________is principally the task of planning.8 Summary Management is concerned with getting things done through other people. _________.10 Answers to SAQs and TQs SAQs: 1. teamwork . 3.9 Terminal Questions 1. It is the management which transforms physical resources of an organization into productive resources. 2. 1. Management is largely found at the middle and lower levels and administration is found at the higher levels. ___________. motivating and controlling the efforts of others towards a specific objective. manpower 3. Bring out the difference between Administration and Management. materials. Discuss the importance of management. Lower level managers require and use a greater degree of technical skill and managers at higher levels use a greater degree of conceptual skill. Management creates ________ and motivates employees to work harder and better by providing necessary guidance. Define management. public organisations sector and non-business private sector. Self Assessment Questions in the 1. organisations.
10 Answers to SAQs and TQs .9 Terminal Questions 2.4 Organizing 2. Refer section 1.3 2.6 Directing 2.5 3. Refer section 1. Refer section 1.2 Process of Management 2.1.7 Motivating Self Assessment Questions 2.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .3 Planning 2.Answers to TQs: 1.2.1 Introduction Objectives 2.5 Staffing 2.8 Summary 2. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.
as the action of measuring a quantity on a regular basis and of adjusting some initial plan. Planning 2. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent. One can also think of management functionally. Management is about accomplishing a goal efficiently. 2. Through leadership and management often overlap. · Explain Planning. Coordinating 5. Staffing. 1949): 1. in recent time. It is difficult to say where objectives end and policies begin. Organizing. Policy Formulation We have noted earlier that all organizations have well-defined goals and objectives.1 Introduction Follett (1933) defined management as "the art of getting things done through people”. Controlling However. You might well ask what the need for a policy is when objectives are already defined.2 Management Process Peter Drucker said: “Management is doing things right. leadership is about setting the desirable goals. the two are not quite the same.2. Management functions are as follows (Fayol. · Explain different functions of management Process. management functions have been regrouped into four categories. Organizing 3. you will be able to: · Define Management process. leadership is doing the right things“. Motivating. Objectives: After this studying this unit. Directing. There is a degree of overlap between the two. Commanding 4. Even .
summarizing what the organization does. Effective planning enables an organization adapt to change by identifying opportunities and avoiding problems. or where you want go to. kicking the ball with the left foot or right foot is a reflex action. and then set out the method for achieving it. planning begins with clearly defining the mission of the organization. it is not a decision in which any process is involved. a process in which one chooses a course which one thinks is the best. Planning also enhances the decisionmaking process. 2. However. and developing plans to integrate and coordinate activities. the decision to change the design of a product. cost structure and so on. Every organization needs to plan for change in order to reach its set goal. policies are the means to achieve those ends. An explicit mission guides employees to work independently and yet collectively toward the realization of the organization’s potential. studies on passenger comfort. 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. overall goals. say a passenger car. it would be correct to assume that an objective is what you want to accomplish. should precede a good deal of research involving market surveys. 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. Thus. what distinguishers policies form objectives is that you first decide the objective. A mission statement should be short – and should be easily understood and every employee should ideally be able to narrate it from memory. and allocating resources. In the football field. Objectives are the ends. All levels of management engage in planning in their own way for achieving their preset goals. Therefore. It provides the direction for the other functions of management and for effective teamwork. thus. driving comfort. The mission statement is broad. planning is often referred to as strategic in nature and also termed as strategic planning. fuel and machine efficiency. Decision – Making Taking decisions is a process.3 Planning It involves the process of defining goals. Planning in order to be useful must be linked to the strategic intent of an organization.so. general strategies. establishing strategies for achieving these goals. while a policy. The mission statement may be accompanied by an overarching . The tasks of the strategic planning process include the following steps: Define the mission: A mission is the purpose of the organization.
Opportunities. What are the vulnerable areas of the organization that could be exploited? 2. Is research and development adequate? 4. journals and reports (scientific. federal. professional or trade associations (conventions and exhibitions). Analyzing strengths and weaknesses comprises the internal assessment of the organization. What are the possible new markets? . customers (internal and external). For assessing the strengths of the organization the following questions are important: 1. international). Are the facilities outdated? 3. Organizations need to examine their business situation in order to map out the opportunities and threats present in their environments. Threats) analysis is vital for the creation of any strategic plan. Do we have a superior reputation? For assessing the weaknesses of the organization the following questions are important: 1. What financing is available? 6.statement of philosophy or strategic purpose designed to convey a vision for the future as envisaged by top management. and trade). How skilled is our workforce? 4. state. What makes the organization distinctive? 2. Conduct a situational or SWOT analysis A situation or SWOT (Strengths. Weaknesses. Sources of information may include stakeholders like. suppliers. SWOT analysis provides the assumptions and facts on which a plan will be based. governments (local. Are the technologies obsolete? For identifying opportunities the following elements need to be looked at: 1. What is our market share? 5. In which areas is the competition not meeting customer needs? 2. The SWOT analysis begins with a scan of the external environment. professional. How efficient is our manufacturing? 3.
and operational planning . What are the new regulations? 6. Develop related strategies (tactical and operational) Tactical plans are based on the organization’s strategic plan. It also helps in setting minimum acceptable standards or common-sense minimums. effectiveness. Benchmarking systematically compares performance measures such as efficiency. Strategic. organizations have longterm objectives for factors such as. Set goals and objectives Strategic goals and objectives are developed to fill the gap between current capability and the mission. Is there a possibility of growth of existing market?) Identifying threats involves the following: 1. What substitute products exist? In general terms. etc. They are aligned with the mission and form the basis for the action plans of an organization. the best strategy is one that fits the organization’s strengths to opportunities in the environment. Are market tastes changing? 5. return on investment. or outcomes of an organization against similar measures from other internal or external organizations. Are our rivals weak? 5. Generally. In turn. What is the strength of the economy? 4. These are specific plans that are needed for each task or supportive activity comprising the whole. earnings per share. Comparing the organization to external benchmarks (the best practices) is used to assess current capabilities. Are there new competitors? 3. In which areas does the competition meet customer needs more effectively? 2. Is there a shortage of resources? 4. What are the emerging technologies? 6.3. tactical. The SWOT analysis is used as a baseline for future improvement. Objectives are also called performance goals. operational plans are based on the organization’s tactical plans. as well as gap analysis.
Organizations are groups of people. structuring. short-term standards for key variables that will tend to validate and support the long-range estimates must be established. and where decisions are to be made. It is the process of determining what tasks are to be done. grouped. who reports to whom. List all tasks to be accomplished 3.must be accompanied by controls to ensure proper implantation of the plans. lines of authority. Organizational structure is the formal decision-making framework by which job tasks are divided. necessary to maintain competitive advantage in the said market. and relationships between departments. 2.4 Organizing It involves designing. A key issue in accomplishing the goals identified in the planning process is structuring the work of the organization. Assign work to individuals 6. The steps in the organizing process include: 1. and goals are clearly stated. It is the official organizational structure conceived and built by top management. Monitor the plan A systematic method of monitoring the environment must be adopted to continuously improve the strategic planning process. how the tasks are to be grouped. Group related jobs together in a logical and efficient manner 5. working toward common goals. Divide tasks into groups one person can accomplish – a job 4.5 Staffing . It is the extent to which the units of the organization are explicitly defined and its policies. with ideas and resources. Formalization is an important aspect of structure. Delegate authority to establish relationships between jobs and groups of jobs. This review is used for the next planning cycle and review. The purpose of the organizing function is to make the best use of the organization’s resources to achieve organizational goals. An organization chart displays the organizational structure and shows job titles. To develop an environmental monitoring procedure. and coordinating the work components to achieve organizational goal. and coordinated. procedures. Feedback is encouraged and incorporated to determine if goals and objectives are feasible. 2. who is to do. The formal organization can be seen and represented in chart form. Review plans 2.
Pervasiveness of Staffing: Effective execution of staffing function is the responsibility of all managers in the organization. Definition: 1. recruitment. 3. appraisal. transfer and appraisal of personnel to fill the organizational positions. This task has been referred to as staffing. 3. Therefore it is the responsibility of the management to secure and maintain competent and dedicated workforce including managers and operatives. selection. training. promotion. Theo Haimann – “Concerned with the placement. selection. transport system and other physical resources that make the organization to achieve its goals but it is the competency and efficiency of the people who handle resources contributes for the accomplishment of objectives of the enterprise.It is not the machines. . development. Deals with people: Staffing is a separate managerial function which deals with people in the organization. Staffing refers to the managerial function of determining and improving the manpower requirements of an enterprise. It involves many sub-functions such as manpower planning. money. 2. 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. materials. inventorying the people available. recruitment. performance appraisal etc. 4. compensation and training of needed people”. placement. growth and development of all those members of the organization whose function is to get things done through the efforts of other individuals”. 2. It has many sub-functions: Staffing involves determination of the manpower requirement. Managers of the concerned departments are responsible for the selection and development of qualified people for their department and maintain them in their department. Koontz. placement. It aims at right man at right position: Staffing aims at selection of right person for right place at right time and retaining them in the organization. O’Donnell & Weihrich have defined staffing as “filling positions in the organization structure through identifying work force requirements.
promotion. . directing is the “interpersonal aspect of managing by which subordinates are led to understand and co-ordinate effectively and efficiently to the attainment of enterprises goals”.e. induction. 3. identifying the manpower requirements. vacancies arise out of retirement. Thus staffing is an ongoing process through – out the life of an organization. lead them and guide them on a continuous basis. training development and maintenance of personnel. It is an important managerial function.5. It is instructing people as to what to do. Definition According to Koontz and O’Donnel. Direction is continuous process and it continues throughout the life-time of the organization. management initiates actions in the organization. how to do and telling them to do to the best of their ability. It is a continuing function. selection. Personnel policies and programs must be formulated as guides to perform the staffing function effectively. motivate them. 8. 6. Direction is the managerial function of guiding. Direction function is performed at every level of management. 7. It is a continuous function: With the growth and expansion of business additional manpower is needed. Present positions must be filled keeping in mind the future requirements. 2. Direction is an important managerial function. Characteristics of Direction The characteristic features of direction are as follow: 1. A manger needs to give orders to his subordinates. recruitment. It is a process: it is a process having a logical sequence i. etc. 2. resignation. It deals with future requirements: Staffing deals with current and future personnel requirements. overseeing and leading people.6 Directing Direction is one of the functions of management. Thus staffing deals with the future requirements also. Through direction. 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.
without guiding and overseeing subordinates. Direction imitates at the top level in the organization and follows to bottom through the hierarchy. organizing and staffing on one hand and controlling on the other. The needs are arranged in order of importance. humanness and psychological health a person will show. teach. As Theo Haimann puts it. 5. guide. 3. nothing or at the best very little would be accomplished”. Theories X and Y. coach and supervise his subordinates.7 Motivating Motivating In the 1950s three specific theories were formulated and are the best known: Hierarchy of Needs theory. 2. The further they progress up the hierarchy. will vary depending upon his level. The manager never ceases to direct. human beings have wants and desires which influence their behaviour. it aims at getting things done by subordinates and. The amount of time and effort an executive spends in directing however.4. thirst. Directing is the process around which all performances revolve. sex. the more individuality. The person advances to the next level of needs only after the lower level need is at least minimally satisfied. “without the issuance of directives. only unsatisfied needs can influence behavior. Continuous function: Directing is a continuous process. the number of subordinate he has and the other duties he is expected to perform. Pervasive function: Directing is a managerial function performed by all mangers at all levels of the organization. The five needs are: · Physiological: Includes hunger. Nature of Directing The nature of directing can be discussed under the following: 1. It emphasizes that a subordinate is to be directed by his own superior only. 4. to provide superiors opportunities for some more important work which their subordinates cannot do. Essence of performance: Directing is the process around which all performances revolve. Maslow’s Hierarchy of Needs Theory According to this theory. It is an important function of management: Directing is an important management function which provides a connecting link between planning. from the basic to the complex. On the one hand. proposed by Maslow (1943). shelter. and the Two-Factor theory. Direction has dual objectives. on the other. and other bodily needs . satisfied needs cannot. 2.
Workers need to be closely supervised and a comprehensive system of controls and a hierarchical structure is needed to supervise the workers closely. it is clear that Theory X assumes that lower-order needs dominate individuals. if they can. autonomy. status. self-direction. It is believed that employees enjoy their mental and physical work duties. esteem. such as. includes growth. and achievement. whereas. if given the chance employees have the desire to be creative and forward thinking in the workplace. Physiological and safety needs are described as lower-order. It is also believed that. Theory Y – In this theory management assumes employees may be ambitious. belongingness. Herzberg’s Two Factor Theory .· Safety: Includes security and protection from physical and emotional harm · Social: Includes affection. and friendship · Esteem: Includes internal esteem factors. achieving one’s potential. acceptance. Lower-order needs are predominantly satisfied. and external esteem factors. 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. externally. autonomy and empowerment. self-respect. Theory X – In this theory management assumes employees are inherently lazy and will avoid work. From the above. and exercise self-control. and self-actualization are classified as higherorder needs. and attention · Self-actualization: The drive to become what one is capable of becoming. 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. Higher-order needs are satisfied internally. It is also assumed that workers generally place security above all other factors and will display little ambition. and self-fulfillment Maslow separated the five needs into higher and lower orders. Social. recognition. Theory Y assumes that higher-order needs dominate individuals. anxious to accept greater responsibility. such as. self-motivated.
_______refers to the managerial function of determining and improving the manpower requirements of an enterprise. supervision. company policy. Planning involves the process of defining goals. ____defined management as the art of getting things done through people. . and salary are hygiene factors.8 Summary Management is the art of getting things done through people. who is to do. Self Assessment Questions 1. Presence of these factors ensure job satisfaction. many related to the tasks being performed. Job satisfaction factors are separate and distinct from job dissatisfaction factors. Organization involves designing. motivators describe a person’s relationship with what she or he does. interpersonal relations. emphasize factors intrinsically rewarding that are associated with the work itself or to outcomes directly derived from it. such as. recognition. people will not be dissatisfied. 2. To motivate people. have to do with a person’s relationship to the context or environment in which she or he performs the job. 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. structuring. Directing is the interpersonal aspect of managing by which subordinates are led to understand and co-ordinate effectively and efficiently to the attainment of enterprises goals. and achievement. 2. These two factors are motivators and hygiene factors and this theory is also called motivation-hygiene theory. recruitment. how the tasks are to be grouped. The _____analysis begins with a scan of the external environment. establishing strategies for achieving these goals. The absence of hygiene factors can create job dissatisfaction.Herzberg (1959) constructed a two-dimensional paradigm of factors affecting people’s attitudes about work. and coordinating the work components to achieve organizational goal. advancement. who reports to whom. performance appraisal etc. Extrinsic factors. Hygiene factors on the other hand. When hygiene factors are adequate. In summary. responsibility. but their presence does not motivate or create satisfaction. such as. Removing dissatisfying characteristics from a job does not necessarily make the job satisfying. Staffing refers to the managerial function of determining and improving the manpower requirements of an enterprise. 3. neither will they be satisfied. Motivators are intrinsic factors. Every organization needs to plan for change in order to reach its set goal. and developing plans to integrate and coordinate activities. It is the process of determining what tasks are to be done. and where decisions are to be made. It involves many sub-functions such as manpower planning. working conditions.
6 Copyright © 2009 SMU Powered by Sikkim Manipal University .5 3.1 Introduction Objectives .10 Answers to SAQs and TQs SAQs: 1.3 2. Staffing Answers to TQs: 1. Reference 2. Reference 2.9 Terminal Questions 1. Follett 2. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3. 2. Write a short not on directing. Reference 2.2. What is planning? 2. Explain Staffing in detail 3. SWOT 3.
3.2 Definitions 3.3 Characteristics of OD 3.4 Categories of OD 3.5 Goals of OD 3.6 OD and Management Development 3.7 Role of OD 3.8 Problems in OD Self Assessment Questions 3.9 Summary 3.10 Terminal Questions 3.11 Answers to SAQs and TQs 3.1 Introduction Organization development is the applied behavioural science discipline dedicated to improving organizations and the people in them through the use of the theory and practice of planned change. Organizations face multiple challenges and threats today – threats to effectiveness, efficiency, and profitability; challenges from turbulent environments, increased competition, and changing customer demands; and the constant challenge to maintain congruence among organizational dimensions such as technology, strategy, culture, and processes. Keeping organizations healthy and viable in today’s world is a daunting task. Individuals in organizations likewise face multiple challenges – finding satisfaction in and through work, fighting obsolescence of one’s knowledge and skills, maintaining dignity and purpose in pursuit of organizational goals, and achieving human connectedness and community in the workplace. Simple survival – continuing to have an adequate job – is a major challenge today in the light of constant layoffs and cutbacks. Although new jobs are being created at record rates, old jobs are being destroyed at an accelerating pace. “Knowledge” work is replacing “muscle” work. In summary, organizations and the individuals in them face an enormously demanding present and future. Are any strategies available to help people and organizations cope, adapt, survive, and even prosper in these vexing times? Fortunately, the answer is “yes”. A variety of solutions exists. And organization development (OD) is one of them. Basically, organization development is a
process of teaching people how to solve problems, take advantage of opportunities, and learn how to do that better and better over time. OD focuses on issues related to the “human side” of organizations by finding ways to increase the effectiveness of individuals, teams, and the organization’s human and social processes. Organization development is a relatively recent invention. It started in the late 1950s when behavioural scientists steeped in the lore and technology of group dynamics attempted to apply that knowledge to improve team functioning and inter-group relations in organizations. Early returns were encouraging, and attention was soon directed toward other human and social processes in organizations such as the design of work tasks, organization structure, conflict resolution, strategy formulation and implementation, and the like. The field of OD grew rapidly in the 1970s and the 1980s with thousands of organizations in the private and public sectors using the theory and methods of OD with great success. Today, organization development represents one of the best strategies for coping with the rampant changes occurring in the marketplace and society. We predict that organization development will be preferred improvement strategy in future. Objectives: After studying this unit, you will be able to: · Define organization development. · Explain the characteristics of OD. · Discuss the categories of OD programme. · State the goals of OD. · Distinguish between OD and Management Development · Explore the problems in OD. 3.2 Definitions Organization Development (OD) is a response to change, a complex educational strategy intended to change the beliefs, attitudes, values and structure of organization so that they can better adapt to new technologies, markets, and challenges, and the dizzying rate of change itself. (Bennis, 1969). OD can be defined as a planned and sustained effort to apply behavioural science for system improvement, using reflexive, self-analytic methods. (Schmuck and Miles, 1971)
Organizational development is a process of planned change- change of an organization’s culture from one which avoids an examination of social processes (especially decision making, planning and communication) to one which institutionalizes and legitimizes this examination. (Burke and Hornstein, 1972) The aims of OD are: 1) Enhancing congruence between organizational structure, processes, strategy, people, and culture; 2) Developing new and creative organizational solutions; and 3) Developing the organization’s self-renewing capacity (Beer, 1980). Organization development is an organizational process for understanding and improving any and all substantive processes an organization may develop for performing any task and pursuing any objectives…. A “process for improving processes” – that is what OD has basically sought to be for approximately 25 years (Vaill, 1989) “Organizational development is a set of behavioural science-based theories, values, strategies, and techniques aimed at the planned change of the organizational work setting for the purpose of enhancing individual development and improving organizational performance, through the alteration of organizational members’ on-the-job behaviours.” (Porras and Robertson, 1992) “OD is a systematic application of behavioral science knowledge to the planned development and reinforcement of organizational strategies, structure, and processes for improving an organization’s effectiveness.” (Cummings and Worley, 1993) “Organization development is a planned process of change in an organization’s culture through the utilization of behavioural science technologies, research, and theory.” (Burke, 1994) As you can see, these definitions overlap a great deal (that’s encouraging), and contain several unique insights (that’s enlightening). All authors agree that OD applies behavioural science to achieve planned change. Likewise, they agree that the target of change is the total organization or system and that the goals are increased organizational effectiveness and individual development. Collectively, these definitions convey a sense of what organization development is and does. They describe in broad outline the nature and methods of OD. There is no set definition of OD and no agreement on the boundaries of the field, that is, what practices should be included and excluded. But these are not serious constraints given that the field is still evolving, and that practitioners share a central core of understanding as shown in the preceding definitions.
and shared picture of the nature of the products and services the organization offers. processes. where . Top management must initiate the improvement “journey” and be committed to seeing it through. it must be built into the very fabric of the organization-its strategy. through an ongoing. to improve an organization’s visioning. and organizational learning. but as one that includes characteristics we think are important for the present and future of the field. the ways those goods will be produced and delivered to customers. or became distracted with other duties. we mean those interacting. There is no “quick fix” when it comes to lasting organizational improvement. serious business. 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. we mean those processes through which organization members develop a viable. We do not propose it as the “right” definition. Peter Senge describes learning organizations as “… organizations where people continually expand their capacity to create the results they truly desire. team. empowerment. and culture.several years in most cases. it is more accurate to describe “improvement” as a never-ending journey of continuous change. Organizational change is hard. “Organization development is a long-term effort. developing the strategy for getting there. we mean that organizational change and development takes time. By long-term effort. By learning processes. We will explain this definition in some detail. learning.Now let’s turn to our definition of organization development. and making it happen. then another moves it to yet a higher plateau of effectiveness. By empowerment. Most OD programs that fail do so because top management was ambivalent. coherent. and self-examining processes that facilitate individual.” This definition is lengthy. For empowerment to become fact of life. where new and expansive patterns of thinking are nurtured. 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. we mean involving large numbers of people in building the vision of tomorrow. In fact. and what the organization and its members can expect from each other. 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. One program or initiative moves the organization to a higher plateau. it includes pain and setbacks as well as success. By empowerment processes. By visioning processes. structure. The phrase led and supported by top management states an imperative: Top management must lead and actively encourage the change effort. and problem-solving processes. led and supported by top management. including action research. but it includes a number of components that we consider essential. listening. lost its commitment.
Our definition also places considerable weight on organizational processes. and common purposes of all members of the organization. and problem-solving processes. (b) invented. so they are the place OD programs often begin – getting people to stop doing things one way and start doing them a different way. values. activities. one of wide-spread participation in creating and managing a culture that satisfies that wants and needs of individuals at the same time that it fosters the organization’s purposes. and feel in relation to those problems. in contrast to having only a select few involved. interactions. strategy. So culture consists of basic assumptions. sentiments. learning. expectations. opportunities. commitment. structure. Still. has a stake in making the organization work.collective aspiration is set free. and artifacts. We believe solutions to problems are enhanced by tapping deeply into the creativity. empowerment. We believe that when the culture promotes collaboration. Empowerment means involving people in problems and decisions and letting them be responsible for results. or developed by a given group. and challenges in the organization’s environment and its internal functioning. (d) that has worked well enough to be considered valid and. discovered.” Problem-solving processes refer to the ways organization members diagnose situations. . and we highlight the importance of visioning. we mean. assumptions. widely shared vision of a desired future creates the best climate for effective problem-solving by all the organization’s members. culture is of primary importance. norms. The reciprocal influence among culture. make decisions. learning. managing the culture should be a collaborative business. empowerment. and processes makes each important. Michael Beer’s definition called for “developing new and creative organizational solutions”. vitality. and take actions on problems. so is managing the culture. And second. By including culture so prominently in our definition. By ongoing collaborative management of the organization’s culture. think. that one of the most important things to manage in organizations is the culture: the prevailing pattern of values. Processes are how things get done. we affirm our belief that culture is the bedrock of behaviour in organizations. and continuous learning the organization is bound to succeed. first. But change becomes permanent when the culture changes and people accept the new ways as the “right” ways. solve problems. and feel-that is why culture change is necessary for true organizational improvement. We further believe that having compelling. Collaborative management of the culture means that everyone. beliefs. not just a small group. (c) as it learns to cope with its problems of external adaptation and internal integration. and problem-solving processes are opportunities for collaboration in organization development. and where people are continually learning how to learn together. and norms of behaviour that are viewed as the correct way to perceive. attitudes. think. therefore (e) is to be taught to new members as the (f) correct way to perceive. Just as visioning. empowerment. Edgar Schein clarifies the nature and power of culture in his definition: “Culture can now be defined as (a) a pattern of basic assumptions. Processes are relatively easy to change. and each influences the others.
self-directed teams control performance appraisals. But in many organizations today. the process “threw the results over the wall” to the next functional unit. individuals and the organization function well. manufacturing. 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. hiring. and then disbanded with the people going on to new tasks. In Liberation Management. Temporary. multifunctional. He uses the terms ‘multifunctional projectization’ and ‘horizontal systems’ to describe these teams and their work. The old method was to have functional specialists work on the problem sequentially. Today’s organizations increasingly use ad hoc teams that perform a specific task and disband when the task is completed. We think teams are the basic building blocks of organizations. engineering. intact work teams do not have a boss in the traditional sense-the teams manage themselves. The most prevalent form of teams in organizations is intact work teams consisting of superior and subordinates with a specific job to perform. These self-directed teams assume complete responsibility for planning and executing work assignments. 2. such as design. OD encourages collaboration between organization leaders and members in managing culture and processes. according to Peters. and considerable antagonism among the separate functional specialists. wasted time. Further. In addition to team building and role and goal clarification. Specifically. When one function finished with its part of the project. constantly shifting teams will be the dominant configuration for getting work done. much rework. This method resulted in loss of synergy. we recognize that teams are central to accomplishing work in organizations. To summarize. team culture can be collaboratively managed to ensure effectiveness. and using management information. members are trained in competencies such as planning. Over time.By intact work teams and other configurations. The definition we have just analyzed contains the elements we believe are important for OD. OD focuses on culture and processes. and training. here are the primary distinguishing characteristics of organization development: 1. . firing. Team building and role and goal clarification interventions are standard activities in OD programs directed toward intact work teams. maintaining quality control. and procurement. 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. The results are usually highly gratifying both for the team members and for the organization. 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. When teams function well.
rather than focusing attention on individuals. interactive. Teams of all kinds are particularly important for accomplishing tasks and are targets for OD activities. 8. and co-learners with the client system.3 Characteristics of OD 1. collaborators. It recognizes that organizational goals change. Attempting to create “win-win” solutions is standard practice in OD programs. OD views organization improvement as an ongoing process in the context of a constantly changing environment. OD focuses on total system change and views organizations as complex social systems. Thus. 9. 4. Rather. This ‘planned’ emphasis separates OD efforts from other kinds of more haphazard changes that are frequently undertaken by organizations.3. OD focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. OD takes a developmental view that seeks the betterment of both individuals and the organization. temporary. Participation and involvement in problem-solving and decision-making by all levels of the organization are hallmarks of OD. 10. and cyclic processes. 3. 3. OD practitioners are facilitators. 7. 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 efforts are not one-shot actions. Planned Change: OD is a strategy of planned change for organizational improvement. so the methods of attaining these goals should also change. 5. Long-range Change: OD efforts are not meant for solving short-term. OD efforts take an organization as an interrelated whole and no part of it can be changed meaningfully without making corresponding changes in other parts. rather. Comprehensive Change: OD efforts focus on comprehensive change in the organization. 2. 4. they are ongoing. The concept of comprehensive change is based on the systems concept-open. OD focuses on the elevation of an organization to a higher level of functioning by improving the performance and satisfaction. or isolated problems. 6. dynamic and adaptive system. OD relies on an action research model with extensive participation by client system members. . 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.
problem-solving. OD attempts to provide opportunities to be ‘human’ and to increase awareness. or catalyst. second. rather. first. and mutual influence. (b) Problems of human satisfaction and development. There is a close working relationship between the change agent and the target organizational members to be changed. and revitalization. the collaborative relationships between the scientists. This is done to arrive at certain desirable outcomes that may be in the form of increased effectiveness. the element which links Organization Development with the scientific method of inquiry and. third party change agent. He shares a social philosophy about human values. . growth. They discourage ‘do it yourself’ approach. A change agent in OD process does not just introspect the people and introduce changes. 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’. At the individual level. takes actions for intervention. 6. participation. evaluates these data. further more. (b) The interventions are primarily directed towards problems and issues identified by the client group. collects relevant data. 7. Organization Development is inextricably linked with action. it is a programme with a purpose that is to guide present and future action.5. all types of experience requiring Organization Development efforts may be grouped into three categories: (a) Problems of destiny. joint goals and means. and adaptability for the organization as a whole.4 Categories of OD Programmes In general. and then. Emphasis on Intervention and Action Research: OD approach results in an active intervention in the ongoing activities of the organization. Although Organization Development Programmes vary. and (c) Problems of organizational effectiveness. He designs intervention strategies based on these data. The change agent is a humanist seeking to get a humanistic philosophy in the organization. yet following features are common to most of the programmes: (a) The client is a total system or major subunit of total system. identity. 3. Two important elements of Organization Development are. Key areas are the normative type of model. practitioners and the client laymen. Action research is the basis for such intervention. and integrate individual and organizational goals. he conducts surveys. the importance and centrality of goals and objectives and the different role requirements of the consultant change agent vis-à-vis the clients. The relationship involves mutual trust. Participation of Change Agent: Most OD experts emphasize the need for an outside.
6 OD and Management Development . (d) To build trust among persons and groups throughout an organization.5 Goals of Organization Development Following are the generally accepted goals of OD: (a) To create an open. like other normative re-educative programmes. (g) To increase the sense of ‘ownership’ or organization’s objectives throughout the work force. (b) To supplement the authority associated with role or status. and (d) The interventions are based on behavioural science theory and technology. This Organization Development progrmmes. its underlying theory and assumptions and some of the pitfall and challenges in attempting to improve organizations through behavioural science. 3. (j) To improve effectiveness of the organization. (f) To develop a reward system which recognizes both the achievement of the organization’s goals (profit or service) and development of people. 3. with the authority of knowledge and competence. We need to examine carefully the techniques of Organization Development. (i) To increase self-control and self-direction for people within the organization.(c) The interventions are directed towards problem-solving and improved functioning for the client system. (c) To locate decision making and problem-solving responsibilities as close to sources of information as possible. 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. (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. (e) To make competition more relevant to work goals and to maximize collaborative efforts. problem solving climate throughout an organization.
focus on achieving better in existing improvement in design. However. more attention to peer-groups. Train and equip employees Focus on design. Burke and Schmidt have made this difference more clear which is presented in the following table. The term ‘development’ refers broadly to the nature and direction of change induced in personnel through the process of training and education. Miner has drawn difference between two processes. and (iv) a sense of responsibility. Based on this. MD tries to fit the men to the organization.At this stage. there are four attributes of effective managers in large organization. according to him. 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. While the latter aims at developing the mangers individually for the accomplishment of better performance in organizational setting. and techniques adopted in both may overlap to some extent. Difference between Management Development and OD Factors Objectives Management Development Organization Development Increasing manager’s Changing the nature of the contributions to goal organization. According to him. let us define management development as we have seen the definition of OD. 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. accomplishments. and greater display of feelings and emotions. These are: (i) a positive attitude towards authority. management development has been defined as follows: “Management development is all those activities and programmes when recognized and controlled. (ii) competitiveness. not on the and managers to perform managers. then would the results be functional for managing organization activity in a competitive world? Thus. less individual competitiveness. the former goes one step further and purports to change the entire organizational climate where the mangers work. organization. Focus . If OD efforts train people towards anti-authority value. he appears to be biased against OD and the real distinction between OD and MD lies in between these two extremes. He feels that management development reinforces the above four qualities and helps managers cultivate and develop the will to manage. OD tries to fit the organization to the men. (iii) assertiveness. with their existing objectives and structure. it is beneficial to make a comparison between OD and Management Development (MD) as both have some common objectives that betterment of an organization. Before making a comparison between the two.” Organization development differs from management development.
By 70s. Trained specialists required. 3. 6.Approach Time Educative and training Short-range. Long-range strategy for organizational innovation and renewal. Much of the enthusiasm created at the beginning of OD programmes vanished over the period of time. Problem-solving approach. The basic problem in a change effort which is not comprehensive is that it does not work properly unless there is a proper change in the internal environment of the organization in which people work. Thus. confrontation techniques. To treat each human being as a complex person with a complex set of needs important in his work and his life. horizontally. To increase the openness of communications in all directions-vertically. To place emphasis on humanistic values and goals consistent with these vales. substantial disenchantment with OD became evident because of many controversial OD techniques like sensitivity training. OD became quite successful with many professional consultants offering high services and programmes to various organizations. 4.8 Problems in Organization Development Organization development. In early 60s. Research studies have also failed to conclude . 5. 7. To increase the level of enthusiasms and personal satisfaction at all levels of the organization. as a long-term strategy for organizational change. To increase the level of self and group responsibility in planning and its implementation. 3. To increase the level of trust and mutual emotional support among all organization members. 2. Since OD attempts to bring comprehensive change in the organization. etc. Specialist No special requirement. and laterally. however. it is quite suitable for improving organizational performance on long-term basis. plays key role in organizational improvement. has invited sharp criticism as a strategy to increase organizational viability and effectiveness because many OD programmes have failed. however. To create an environment in which authority of assigned role is augmented by authority based on knowledge and skills. 3. OD can be utilized for the following results in the organization: 1.7 Role of Organization Development Organization development.
3. it fails even as a long-term strategy. and only large organizations can afford this luxury without any guarantee of positive outcome.significant contributions of OD in all organizations. Only fully competent OD consultant should be pressed for the service and he should develop understanding with internal change agents. 3. However. Therefore. In general. There should be proper use of OD interventions. Resistance to change is a natural phenomenon and OD puts undue pressure to change. Hence. 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. 5. particularly in bottom-line ones. Organization must formulate the objectives of OD programme very clearly and specifically. 2. Thus. OD programmes are often quite costly. 4. OD can not be taken as panacea for curing all organizational problems. it is useless to try OD. There is discrepancy between ideal and real situations. OD is criticized on the following lines: 1. There should be genuine support of OD programme from top management. it can be visualized that OD itself may not be dysfunctional but application may be. and (ii) failure to correctly model appropriate personnel behaviour in the programme. People realized its dysfunctional aspects only when many OD efforts failed. Therefore. 2. some specific efforts are required. OD tries to achieve ideal without taking into account real. Some of these efforts are as follows: 1. 5. . For example. These should be based on the specific needs of the organization. it may be emphasized that OD programmes are likely to fail when these are not programmes and hence failure. It can be seen that many of these criticisms are based on reality and experience. in order to make best use of OD efforts. 4. and (iii) failure to increase employee motivation through participation and development of personal growth and self-esteem. OD makes people unfit for the real organizations world because no organization can fully adopt open system concept. OD fails to motivate people with low level of achievement needs. If an organization is laden with these people. Enough time should be allowed so that the effects of OD programme are realized.
Organization development should be led and supported by –––––––. 2. problem-focused ‘nature of OD’ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. ––––––––– is a process which includes leadership behaviours and human resource practices. 3. OD focuses on culture and processes. Who is associated with the “Learning Organizations”? 5. Explain the various characteristics of OD. But OD aims at changing the entire organizational climate where the managers work. State the various roles of OD. There is no ‘quick fix’ to organizations’ problems. Explain its salient features. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. OD is the ultimate remedy for organizational improvements and developments. ––––––– is associated with “Liberation Management”. collaborative. Top management 2. What are the problems involved in the implementation of OD? 3. 5. 4. _____________is a short-term strategy. Empowerment . The participative.10 Terminal Questions 1. Management development aims at developing the managers individually. 4. 3.11 Answers to SAQs and TQs SAQs: 1. Distinguish between ‘organizational development’ and ‘management development’. 3. Tom Peters 3. Define OD. 2.Self Assessment Questions 1. 3.
6 4. Refer section 3. MU0002-Unit-04.1 Introduction Objectives 4.2 Survey Feedback 4. Refer section 3. Refer section 3.Organization Development – Interventions Structure: 4.Organization Development – Interventions Unit-04.2 2. Peter Senge 5. Refer section 3.7 5. Management development Answers to TQs: 1. Refer section 3.3 Process Consultation 4.6 Team-building .4.5 Leadership Development 4.4 Grid Training 4.3 3.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .
work group. Nevertheless. French and Bell have suggested twelve families of OD interventions: diagnostic.7 Inter Group Development 4. interpersonal level.4. techno-structural activities. the classification of OD interventions shows variation.8 Change Agents 4. various consultants and practitioners have different opinions about the activities which can be included in interventions. inter-group activities. process consultation. For example. 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.11 Terminal Questions 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. Further.” There are various OD interventions and they are classified in different ways.12 Answers to SAQs and TQs 4. the classification appears to be more relevant because it may specify the .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. Interventions constitute the action thrust of organization development. Therefore.9 Role of Change Agents Self Assessment Questions 4. French and Bell have defined OD intervention as: “Sets of structured activities in which selected organizational units (target groups or individuals) engage with a task or a sequence of tasks where the task goals are related directly or indirectly to organizational improvement. and organizational level. 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. mediation and negotiation activities. and organizational culture. they make things happen. team-building. However.10 Summary 4. survey feedback. management grid. People’s behaviour may be relevant to understand at individual level. Thus. inter-group level. education and training. many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others. interventions may be required to change people at all these levels. group level.
Institute for Social Research (ISR) of University of Michigan. peer support. you will be able to: · Describe survey feedback. To assist the group members to improve the relationships through discussion of common problems. and participative goal-setting which has become more popular as management by objectives. 1. Process of Survey Feedback Survey feedback usually proceeds with sequential activities involving data collection. Data Collection: The first step in survey feedback is data collection usually by a consultant based on a structured questionnaire. and follow up. The basic objectives of survey feedback are as follows: 1. Our further discussion follows this development. and peer interaction facilitation. Though some type of survey method was prevalent in various organizations earlier. developing action plans based on feedback. feedback of information.range of change that an organization requires. managerial work facilitation.2 Survey Feedback Besides laboratory training (sensitivity and grid). USA developed a comprehensive questionnaire for conducting survey in different aspects of an organization. Historically. and survey feedback method. peer goal emphasis. · Role of change agents. managerial goal emphasis. team. ISR has prepared a questionnaire which includes questions on leadership – managerial support. · Realize the importance of team-building. The questionnaire may include different aspects of organizational functioning. 4. other techniques like process consultation. OD efforts were attempted through sensitivity training. have been added. peer work facilitation.building. Subsequently. Objectives: After studying this unit. . · Describe process consultation. 2. grid training. the other major thrust in the development of OD has come from survey research and feedback of data. To assist the organization in diagnosing its problems and developing action plan for problemsolving. · Explain grid training.
and satisfaction with the work group. Second. it is of no use unless follow-up action is taken based on the . However. co-ordination between departments. The feedback may be given either orally or in a written form. tabulated. If it is biased. even if valid and reliable information is collected. and analysis is made to arrive at some meaningful conclusions. by the consultant. and satisfaction-satisfaction with the company. Follow-up Action: Survey feedback programme is not meaningful unless some follow-up action is taken based on the data collected. all attempts to diagnose the problems will be abortive and futile. In oral system of feedback. rather. 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. 2. Feedback of Information: After the data are analyzed. After the questionnaires are completed. Alternatively. feedback is given to the persons who have participated in the fulfilling up of questionnaire. satisfaction with the pay. it should be constructive and suggestive. satisfaction with the job. First. data are classified. Whatever the method of giving feedback is adopted. In particular. It generates great amount of information efficiently and quickly which can be used in solving problems faced by the organization and its members. It is cost-effective means of implementing a comprehensive OD programme making it a highly desirable technique. The questionnaire is administered personally either by the members of consulting firm or by organization’s personnel. decision-making. satisfaction with the supervisor. survey feedback contributes in the following manner: 1.organizational climate-communication with the company. 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. follow-up action may be in the form of developing some specific OD interventions particularly process consultation and team-building. and general management. motivation. it is provided through group discussion or problem-solving sessions conducted by the consultant. feedback may be given in the form of a written summary of findings. questionnaire used and method adopted for its administration should be reliable and valid. 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. 2. 3. 3. 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. control within the company.
the consultant is introduced to the organizational members and basic objectives of the P. . the leading writer and consultant on P. Steps in Process Consultation Schein has suggested following specific steps which the consultant would follow in a P. To understand how various organizational processes can be linked to objective achievement in the organization.C are communicated to them with a view that they co-operate with the consultant. communication. and spelling out services. Information collected is processed to diagnose the problems and their underlying causes. 2. This data gathering occurs simultaneously with the entire consultative process. At this stage.” The basic objectives of P. 4. and inter-group co-operation and conflicts. 1.information. 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. Define the Relationship: At this stage. The basic content of P. and interview about the problems.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. Edgar Schein. At this stage. A survey feedback is not a technique in itself for change. time.3 Process Consultation Process Consultation (P. 3. client and consultant enter into agreement covering various aspects of consultancy services like fees. the client’s expectations and hoped-for results are also decided.C are as follows: 1.C programme of OD. group decision-making and problemsolving. observations. group norms. 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. 2. To bring desired change in the various organizational processes like leadership. understand.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. 4. etc. roles and functions of group members. it provides base for action for change. Gather Data and Make a Diagnosis: Information is collected from various sources thorough the use of questionnaires. Initiate Contact: This is beginning stage of P.C) is a technique for intervening in an ongoing system.
From this point of view. To study the organization as an interactive system and apply techniques of analysis in diagnosing its problems. inter-group. the consultant disengages from the client organization by mutual agreement but leaves the door open for future involvement. he assists the organizational members to incorporate those changes. Though he is involved only in suggesting the various changes in the processes. The whole orientation is to develop managerial style through the application of behavioural science knowledge. 6. knowledge. and total organizational levels. . and processes necessary for effectiveness at the individual. like other OD intervention techniques. 2. Process of Grid Training The basic content of grid organization development is managerial grid as discussed. P. To understand the importance and rationale of systematic change. One basic reason for this phenomenon may be the consultant’s inability to steer the organization out of troubles. Evaluation of Process Consultation: Process consultation is quite in-depth activity of OD in which the consultant plays a major role. However. feedback.C is very effective intervention for organizational improvement. significant correlation between the outcomes has not been found. both these problems may be overcome by engaging a suitable consultant and developing willingness among the members for change. It is a comprehensive and systematic OD programme which aims at individuals. Reduce Involvement and Terminate: When the work of P. Its specific objectives are as follows: 1. It utilizes a considerable number of instruments. 3. In the review of various P. groups. the consultant intervenes in the organizational processes by using different interventions like agenda-setting.C programmes. P.C is completed. 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. enabling individuals and groups to assess their own strengths and weaknesses. focuses on skills. However. 4. To evaluate the styles of leadership and techniques of participation to produce desirable results. group.5. coaching. and the organization as a whole. and/or structural change. The grid organization development consists of six phases.4 Grid Training Grid training is basically based on grid organization development developed by Blake and Mouton. Intervene: At this stage.C is also not free from criticisms.
The individuals try to learn to become managers by practice. Inter-group Development: At this phase. the various efforts from phase 1 to phase 5 are evaluated and critical analysis is made. it appears that this type of educational strategy can help to make significant contributions to organizational effectiveness. some of them have not supported the claims made by Blake and Mouton. Grid training programme is criticized on the basis that it lacks contingency approach and. communication skills. 4. The analysis will bring out the shortcomings that may be there. The members of the organization are trained for achieving this excellence. the focus shifts to the total organization and to develop skills necessary for organizational excellence. grid training is a non-rigorous method. Each group separately analyses the ideal inter-group relations. they maintained the same stand. grid training has some positive contributions for organizational effectiveness. Though research studies on the application of grid training are not many. it discounts reality. Managerial grid: It covers various aspects of assessing managerial styles. Each group may be given assignment to evolve strategy for making ideal organization with the help of the consultant.1. The action is designed to identify the characteristics of the ideal organization. Furthermore. problem-solving. 3. objective-setting. the various programmes may be redesigned. The skills relating to planning. in spite of these criticisms. the focus is on inter-group behaviour and relations. In this light. 6. and alike. Developing Ideal Strategic Corporate Model: At this stage. Teamwork Development: The focus in this stage is to develop teamwork by analyzing team culture. Evaluation of Grid Training Most of the support of grid training has come from its originators-Blake and Mouton. The strategy is then implemented. 2. The thrust is on moving groups from conflict to co-operation. Action steps to move towards the ideal are developed and assigned to individuals who may be engaged in building co-operative inter-group relationships. Further. 5.5 Leadership Development . 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. and teamwork. 4. traditions. and problemsolving are also developed. Systematic Critique: In this stage. They have maintained that “managerial and team effectiveness can be taught to managers with outside assistance. therefore.” In a later work.
employees will perceive leadership as supportive. competence.When change is imposed (as in downsizing scenarios). results in an organization becoming completely nonfunctioning. which. are closely associated with a very few advocates and practitioners. If you are to manage change effectively. clearly the most important determinant of "getting through the swamp". must labor under the weight of employees who have given up. and After Arrival. The existence of this trust. Poor leadership means an absence of hope. We will look more carefully at each of these. and credibility of senior and middle management. you need to be aware that there are three distinct times zones where leadership is important. The organization must deal with the practical impact of unpleasant change. The best way to summarize is that there is a climate of trust between leader and the rest of the team. Slogging Through The Swamp. The literature on the subject indicates that the nature of the change is secondary to the perceptions that employees have regarding the ability. employees learn that leaders will act in indecipherable ways and in ways that do not seem to be in anyone’s best interests. As against these. widely accepted. problems in . if allowed to go on for too long. complete communication that is timely. but more importantly. concerned and committed to their welfare. let us consider the life cycle of a team. if haven’t established a track record of effective leadership. lead. In a climate of distrust. confident and effective decision-making. We can call these Preparing For the Journey. Unfortunately. therefore. is the ability of leadership to…well. while at the same time recognizing that tough decisions need to be made. 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. teambuilding is the most important. it may be too late. and regular. 4.” 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. by the time you have to deal with difficult changes. and applied OD intervention for organizational improvement. 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.6 Team-building Various OD interventions discussed so far have their specific implications for OD and. employees expect nothing positive. employees will expect effective and sensible planning. In organizations characterized by poor leadership. Also during these times of change. Before going through how team-building exercise can be undertaken to develop effective teams. how synergy is generated through team-work. During drastic change times. employees will look towards the leaders for a number of things. during and after change implementation is THE key to getting through the swamp. brings hope for better times in the future. The Role of Leadership In an organization where there is faith in the abilities of formal leaders. For example. Leadership before.
The team begins to move in a co-operative fashion and a tentative balance among competing forces too is struck. Norming: After storming stage. At this stage. The . they learn to handle complex problems that come before the team. Sooner or later. start to accept others. jockeying for relative control. Storming: After the forming stage which is mostly related to perceiving and assessing each other. 3.team-work. group norms emerge to guide individual behaviour which form the basis for co-operative feelings and behaviour among members. These stages are: forming. At this stage. Adjourning: Adjourning is the end phase of cycle of a team. Performing: When team members interact among themselves on the basis of norms that have emerged in the team. These typical stages of life cycle of a team are described below: 1. team members get introduced to each other if they have not interacted earlier. 2. Life Cycle of a Team When a number of individuals begin to work at interdependent jobs. norming. and arguing for appropriate strategies to be adopted for achieving team’s goals. different members may experience varying degree of tension and anxiety out of this interaction pattern. interaction among team members is often cautious especially when they are new to one another. 5. because of individual differences. team members start settling. 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. and adjourning as shown below: Fig. members start interaction among themselves in the form of competing for status. 4.1: Life Cycle of a Team Though these are not followed rigidly. and features of effective team so that team-building exercises focus more sharply on developing effective team. Forming: At the first stage of the life cycle. performing. Functional roles are performed and exchanged as needed. They share personal information. and tasks are accompanied efficiently. they do represent a broad pattern that may be observed and predicted in many settings across team’s time together. and begin to turn their attention to the group tasks. storming. each team has to be adjourned. they often pass through several stages as they learn to work together as a team. even the most successful teams as they have completed their mission. 4.
These students may be called loafers (not attaching the same connotation which is attached with the term loafer in our social phenomenon) who frequently miss the project group’s meetings. team-work does not necessarily spurt group efforts.adjournment phase takes place in the case of those teams which are created for some special purposes like task force. the team would be effective. synergistic effect is not automatic but depends on the complementarity of different elements that are put together and the way they interact among themselves. 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. A simple phenomenon of social loafing may be observed in a group assignment to students during their study. intense social relationship among members comes to an end. 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. 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. students find that one or two students do not put their weight for the completion of the project. . This effect can be described as 2+2=5 effect. a team is created to undertake a task which requires a variety of skills and single individual cannot perform that task alone. This phenomenon may happen in teams in work organizations too. other factors remaining the same.” Thus. Putting the concept of synergy in teamwork means members of the team are complementary to each other and they contribute positively to one another. They rely on the fact the more reliable members will complete the project without their help. etc. 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. that is. To the extent. For example. However. In such an assignment. concept of stages is significant in the context of the nature of problem which team members are likely to face in team-work. 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. committee. the complementarity among members is achieved. how a particular element affects another and is affected by it. and so on. 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. After the adjournment of the team. fail to perform their assigned tasks. in one experiment. In fact.
managers at higher levels particularly at the top level should set organizational climate and culture which enthuse team members to put their best. 2. individual members do not contribute to the fullest extent. two things are required from its members. and attitudes. The phenomenon of social loafing can be minimized by constituting effective team for group performance. Therefore. . When the same individuals pulled on the rope of groups of three. The possibility of occurring of social loafing in a team-work increases because of the following reasons: 1. While skills are relevant for job performance. They averaged 138.it was found that individuals’ total efforts were much higher than the group efforts. Supportive Environment: A team loaded with skilled members cannot perform well if the organizational climate is not supportive for that. goals. other factors remaining the same. 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. In the above paragraph. skills which are complementary to the team requirement and understanding of one’s own role as well as roles of other members. Thus. super-ordinate goals and team rewards.6 pound of pressure while tugging on the rope. Even if one member lacks behind. team members may not show high degree of enthusiasm and they will use only a part of their skills in performing the jobs. it appears that there are many factors in an effective team. 2. Individuals were asked to pull alone as hard as possible on a rope attached to a strain gauge. From this statement. the individual average dropped down still lower68.2 pounds. These factors are skills and role clarity. team members may tend to contribute positively to the teamwork. Dropping of average output in group efforts indicates that some members of the group were not contributing as much as they did individually. group of eight. supportive environment. group efforts tend to slacken. If the organizational climate is not in tune with high achievement. Skills and Role Clarity: For an effective team. we have mentioned that team effectiveness depends on the complementarity of team members. Let us see how these factors make a team effective. When the division of work cannot be accomplished properly and individual efforts are hard to determine. he may tend to affect others because of chain reaction just like a rotten apple injures its companions. When the group is not cohesive with high output norms. 1. understanding of roles helps members to meet the requirement of one another thereby solving the problems which the team faces. 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.
3. Super-ordinate Goals: Super-ordinate goals are those which are above the goals of a single team or a single individual. An individual works better if he is able to link how his goal attainment leads to the attainment of a higher-level goal. These super-ordinate goals, then, serve to focus attention, unify efforts, and stimulate more cohesive team efforts. 4. Team Rewards: Team performance depends on how reward is linked to team performance and how members perceive this linkage. If team members perceive that reward to contingent on team performance, they will put their maximum. Rewards of both types- financial and nonfinancial-should be taken into consideration. Further, organizations need to achieve a careful balance between encouraging and rewarding individual initiative and growth and stimulating full contributions to team success. Innovative non-financial team rewards for responsible behaviour may include the authority to select new members of the group, make recommendations regarding a new supervisor, or propose discipline for team members. The positive aspect of all these factors leads to team effectiveness and team members share common values regarding product quality, customer satisfaction, and share the responsibility for completing a project on schedule. Katzenbatch and Smith, management consultants, have suggested the concept of real team and they feel that this concept is relatively unexploited despite its capacity to outperform other groups and individuals. They define four characteristics of real teams: small size; complementary skills; common purpose, goals, and working approach: and willingness to be held mutually accountable. Real teams can be created and sustained by: 1. Selecting members for their complementary skills and potentials; 2. Developing clear rules of conduct and challenging performance goals; 3. Establishing a sense of urgency right from the first meeting. 4. Providing substantial time together in which new information is constantly shared; and 5. Providing positive feedback, recognition, and rewards. Team-building Process: Team-building attempts to improve effectiveness of the team by having team members to concentrate on: 1. Setting goals and priorities for the team. 2. Analyzing how team’s goals and priorities are linked to those of the organization. 3. Analyzing how the work is performed. 4. Analyzing how the team is working, and
5. Analyzing the relationships among the members who are performing the job. For achieving these, the team-building exercise proceeds in a particular way as shown in figure.
Fig. 4.2: Process of Team-building Various steps of team-building process are not one-shot action, rather, they are repetitive and cyclical as indicated by arrows in the figure. 1. Problem-sensing: There are a number of ways in which problems of a team can be obtained. Often the team itself defines which aspects of team-building it wishes to work on. This problem can better be identified in terms of what is hindering group effectiveness. At this stage, generally most of the members come forward with their arguments as to what the real problems are. The view may be quite different ranging from the organizational problem, group problems to even personal problem. In problem identification, the emphasis should be on consensus. The consensus-seeking part of the process necessitates that each person becomes thoroughly aware and understand clearly the basic concepts of team-development. Much of the problems may be solved through effective communication and training sessions. 2. Examining Differences: The perception of people on an issue differs because of their differing backgrounds, such as, their value systems, personality and attitudes. The perception may be brought to conformity through the process of exercise on perception which involves a number of psychological exercises particularly on perceptual differences. The role of communication is important in this context because it will help in clarifying the actual problems to the members. 3. Giving and Receiving Feedback: The step of perceiving things and listening to each other may be relayed back to the members as there is a possibility that such processes may create tense situation in the group. Often, members report about the painful feelings that they have at the time of evaluation of their feelings. The discussion should continue until all members of the team have commented. The feedback should be given to the members about their feelings, about the issue, the way people talk about the issue, the stying with the topic or going off on tangents, who was talking more or who was talking less, who was trying to resolve the differences, etc. Such feedback generally provides members to evaluate the values but at the same time, also provides opportunity to understand themselves. The concept of Johari Window may also be applied. This suggests that even people are not fully aware of themselves. 4. Developing Interactive Skills: The basic objective of this process is to increase the ability among the people as to how they should interact with others and engage in constructive behaviour. Following are the examples of constructive and negative behaviours:
Constructive Behaviour: (i) Building: developing and expanding the ideas of others. (ii) Bringing in: harmonizing, encouraging others to participate. (iii) Clarifying: resting, ensuring, understanding, seeking relevant information. (iv) Innovative: bringing in new relevant ideas, information, feelings, etc.
(i) Over talk: interrupting, talking together with speaker. (ii) Attacking: deriding, belittling, criticizing person. (iii) Negative: cooling, cynicism, undermining morale. At the time of discussion of feedback, people themselves take assignments to increase specific constructive behaviours and decrease specific negative behaviours. If this process is adopted several times, there is a strong possibility that members may learn constructive behaviours and leave negative behaviours. This is quite helpful in developing teamwork. 5. Follow-up Action: This is the final stage in team-building. At this stage, the total team is convened to review what has been learned and to identify what the next step should be. Follow-up action also helps in overcoming the drawback involved at the initial stages of teambuilding. It involves deciding who will take care of each area of the team’s responsibilities, and who will be responsible for team projects in a group that has not developed a satisfactory division of responsibility; clarifying and setting differences in perception concerning responsibility and authority in the team, with complex division of responsibility and authority among members. These attempts bring co-operative and supportive feelings among people involved in the team functioning. When this exercise is undertaken at the initial stage, it contributes positively towards the feelings of the people. However, to encourage and sustain such feelings, management should take such actions at regular intervals so that members feel reinforced and sustain their positive behaviour. Such actions will go a long way in shaping the organizational climate quite conducive to members for their efficient working. Evaluation of Team-building As mentioned earlier, team-building as an OD intervention has attracted maximum attention. Many research studies have also confirmed the positive contributions of team-building on the
and perceptions that groups have of each other. communicating. each group meets independently to develop lists of its perception of itself. Therefore.7 Inter-group Development A major area of concern is OD is the dysfunctional conflict that exists between groups.. In spite of these problems. and the groups look for the causes of the disparities. It focuses only on work groups and other major organizational variables such as technology. It seeks to change to attitudes. are not given adequate attention. this has been a subject to which change efforts have been directed. it is not that effective in isolation. there have been calls for combining team-building with organization behaviour modification approaches. listening. the groups can move to the integration phase – working to develop solutions that will improve relations. stereotypes. One such suggestion is to use a task hierarchy to reinforce the team as it progresses up a behaviour skill hierarchy (for example. one of the more Popular methods emphasize problem solving. It helps developing communication within the group and inter-group and overcoming many psychological barriers that block communication flow. Differences are clearly articulate. In this method. It improves the organization’s problem-solving and decision-making ability. In general. in different degrees. and how it believes the other group perceivers it. team-building has a positive outlook. 2. The groups then share their lists. . However. team-building has been termed as one-sided effort and it suffers from the following limitations: 1. 4. As a result. after which similarities and differences are discussed. and feedback skills). the other group.organization’s outcomes. However. 3. structure. Once the causes of the difficulty have been identified. etc. Although there are several approaches for improving intergroup relations. It helps in developing effective interpersonal relationships by stimulating the group members for that. though. monitoring. Team-building becomes a complicated exercise when there is frequent change in team members. New member may find it difficult to adjust with the team because of his confusion over his roles in terms of task performance and building good relationships. team-building contributes to the organizational performance in the following manner: 1. 2.
role-plays and instruments. as the radiator absorbing some of the heat of the controversy. 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. can now be created for further diagnosis and to begin to formulate possible alternative actions that will improve relations. He has to educate people on the need and importance o change using a variety of methodologies – lectures. presentations. cases and experiential learning etc. changing (intervening) and refreezing. Because they are from the outside these individuals an offer can offer an objective perspective often unavailable to insiders. operating procedures. 4. In contrast. may be more thoughtful (and possibly cautious) because they to live with the consequences of their actions. Outside consultants. as the shock absorber when the going is rough. or as fog lamp when the future is hazy. employees of the organization. films. Trainer A change agent needs to be a trainer and educator. group discussions.9 Role of Change Agents The change agent may play different roles according to the need of organization development . enabling the client to let off steam: as the ignition to spark action. and personnel. however. culture. The consultant may fulfill a variety of functions. According to Curtis Mial: “The Consultant may serve as the exhaust value. For major change efforts. internal staff specialists or managers when acting as change agents. internal management often will hire the services or outside consultants to provide advice and assistance.Subgroups.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. The trainer role is most widely and intensively used at all stages of a change project: unfreezing. or outside consultants.8 Change Agents Change agents: Can be managers or nonmanagers. 4. are disadvantaged because they usually have an inadequate understanding of the organization’s history. but one thing he/she is not the driver”. as the accelerator to build up momentum. . as the break for too quick action. with members from each of the conflicting groups.
widely accepted and applied OD intervention for organizational improvement. feedback of information. 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. Teambuilding is most important. skills and change in behavior. attitudes and beliefs.11 Terminal Questions 1. 4. generation of new behavioral science knowledge. What is survey feedback as an intervention of OD? How does it provide base for other OD interventions? . Grid training focuses on individuals and groups to assess their own strengths and weaknesses. 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. diagnosis.10 Summary OD intervention strategies are various activities which a consultant and client organization performs for improving organizational performance. Sensitivity training focuses on small group ranging from ten to twelve. inter-group and total organization levels. team-work does not necessarily spurt group efforts 4.Training is required for enhancing knowledge. Training is used both in ‘content orientation’ and process orientation’. the consultant works with individuals and groups in the organization to help them learn about human and social processes and to solve problems that stem from process events. 2. Self Assessment Questions 1. Grid Training was developed by –––––––––––– 3. knowledge and processes necessary for effectiveness at the individual. The first step in survey feedback is ______ usually by a consultant based on a structured questionnaire. Survey feedback usually proceeds with sequential activities involving data collection. evolving best strategies for change by assessing alternatives and the important stages in a change project where the change agent has to be a Researcher. In process consultation. group. It focuses on skills. Data collection. 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.
3. Blake and Mouton.12 Answers to SAQs and TQs SAQs: 1. Data collection 2. Refer section 4. Refer section 4. What is team-building? What are the stages of life cycle of a team? 4. MU0002-Unit-05-Values. Assumptions. 4.2 Definitions and .6 4.4 2. Refer section 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Assumptions.3.1 Introduction Objectives 5. Refer section 4. Explain Change agents and discuss the role of change agents in detail. Beliefs in Organization Development Unit-05-Values. and Beliefs in Organization Development Structure: 5.2 3. Social loafing Answers to TQs: 1.
assumptions. beliefs and assumptions.5.3 Chronology of Events in Management and Organization Thought 5.6 Summary Self Assessment Questions 5. · Give the statement of OD values and assumptions.5. . These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers.8 Answers to SAQs and TQs 5.1 Implications for Dealing with Individuals 5.5. Most of these beliefs were formulated early in the development of the field.5 Implications of OD Values and Assumptions 5. shaping the goals and methods of the field and distinguishing OD from other improvement strategies.1 Introduction A set of values.5. and beliefs constitutes an integral part of organization development. and they continue to evolve as the field itself evolves. 5. Objectives: After studying this unit.7 Terminal Questions 5. it is a cognitive fact for the person. · State the implications of OD values and assumptions. · List the chronology of events of values.4 Early Statements of OD Values and Assumptions 5. you will be able to: · Explain the meaning of values.2 Implications for Dealing with Groups 5.3 Implications for Designing and Running Organizations 5. beliefs and assumptions.2 Definitions A belief is a proposition about how the world works that the individual accepts as true.
that progress is possible and desirable in human affairs. dishonesty). treat people with respect and dignity. OD values tend to be humanistic. view all people as having the potential for growth and development. and goodwill are the tools for making progress.g. Values and assumptions do not spring full grown from individuals or societies they are formed from the collective beliefs of an era-the zeitgeist. Humanistic values proclaim the importance of the individual: respect the whole person.. and democratic. Piece-rate pay systems were designed to increase motivation and to prevent "soldiering. increasing awareness of the dysfunctions of bureaucracies.. they were fashioned into a coherent value foundation for the theory and practice of organization development. and beliefs are all cognitive facts or propositions. or spirit of the time. Taylor’s methods quickly swept the country and the world as the way to organize work. Simple. the importance of fair and equitable treatment for all. Expert engineers and supervisors designed each task and ensured it was done correctly. assumptions. and that rationality.g. . repetitive tasks in an attempt to find "the one best way" to do each job. and assumptions being. greater understanding of individual motivation and group dynamics. repetitive tasks minimized the skills required to do the job. research on the effects of different leadership styles. strongly held. the laboratory training movement. relatively unexamined beliefs accepted as the truth. and the like. the right of people to be free from arbitrary misuse of power. Values. and the need for justice through the rule of law and due process.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." or slacking off. Evidence for the validity of these values and their supporting assumptions comes from many sources – the Hawthorne studies. with values being beliefs about good and bad. assumptions.Values are also beliefs and are defined as: "Beliefs about what is desirable or ‘good’ (e. As these ingredients accumulated. free speech) and what is undesirable or ‘bad’ (e. 5. and beliefs provide structure and stability for people as they attempt to understand the world around them. Democratic values assert the sanctity of the individual. the clash between fascism and democracy in World War II. Thus. Major ingredients of the zeitgeist that influenced OD values and assumptions are presented here in a brief chronology. the human relations movement." Assumptions are beliefs that are regarded as so valuable and obviously correct that they are taken for granted and rarely examined or questioned. assume that everyone has intrinsic worth. optimistic. Optimistic values posit that people are basically good. reason. values.
These approaches possessed many desirable features. apathy. Reports on these studies by Mayo in 1933 and 1945. Scientific management as the way to organize work and bureaucracy as the way to organize people were the prevailing paradigms for organizations in the early 1900s. their feelings and attitudes about the work. repetitive jobs left them feeling alienated and dispirited. but also contained serious flaws that led to unintended consequences. by Roethlisberger and Dickson in 1939. and rigid procedures would create a well-oiled human machine called the organization. and the supervisor determined their performance. Democratic leadership seemed to bring out the best in the groups. The great German sociologist Max Weber (1922) introduced the concept of “bureaucracy” as the best. impersonal rules. Some early experiments were conducted in the late 1930s. In a sense. and by Homans in 1950 profoundly and irreversibly affected people’s beliefs about organizational behaviour. The research demonstrated the primacy of social factors on productivity and morale. Research by Lewin. authoritarian leadership caused dependency. a management theorist and astute observer of labourmanagement relations. aggressiveness and poor performance. theory. most efficient way to organize people. and White demonstrated that democratic leadership was superior to authoritarian leadership and laissez-faire leadership in affecting group climate and group performance. Much of her career was devoted to finding ways to reduce adversarial relationships between workers and management. Lippitt (1939). Group Dynamics (1940) – The scientific study of groups using experimental research methods-was launched by Kurt Lewin and his students. much of the research. . His acceptance theory of authority proposed that authority derives from the willingness of subordinates to comply with directions rather than from position power. the work environment. ‘The Functions of the Executive’ by Chester 1. The Famous Hawthorne Studies (1927 to 1932) were conducted at the Hawthorne plant of Western Electric Company. Group norms had more powerful effects on productivity than economic incentives. A strong hierarchy of authority. organizations were not machines. Mary Parker Follett (1926). extensive division of labor. wrote an article on “The Giving of Orders” advocating participative leadership and joint problem-solving by labour and management. Barnard viewed organizations as social systems that must be effective (achieve goals) and efficient (satisfy the needs of employees). and practice since the late 1920s have focused on the shortcomings of these two paradigms and how to overcome the limitations. People were not cogs. People came to work as whole people. Their simple. Barnard (1938) presented insights from his experiences as President of the New Jersey Bell Telephone Company.
Motivation and Personality by Abraham Maslow (1954) presented a new view of human motivation. training in interpersonal skills for supervisors. healthy adults. The Hawthorne Studies (1940s to 1960) spawned the human relations movement that was in full flower from the 1930s to the 1960s. Lester Coch and John R. pioneers in laboratory training. are self-centered. Rogers’ focus on effective interpersonal communications was applicable to superior-subordinate relations. which holds that individuals have within themselves the capacity to assume responsibility for their behaviour and mental health when provided with a supportive. . Those who subscribe to Theory X assume that people are lazy. a direct precursor of OD. French’s (1948) article. The human relations movement advocated participative management. 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. Carl Rogers’ Client-Centered Therapy (1951) demonstrated the efficacy of non-directive psychotherapy. 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. Douglas McGregor wrote ‘The Human Side of Enterprise’ (1960) in which he described his famous Theory X and Theory Y assumptions. “Overcoming Resistance to Change. lack ambition. Laboratory training taught people how to improve interpersonal relations. greater attention to workers’ social needs. 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. The theory postulated that when lowerlevel needs are satisfied.” 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. Ken Benne and Paul Sheats (1948). dislike responsibility. This article introduced the concept of organizations as sociotechnical systems. caring social climate. Eric Trist and Ken Bamforth of the Tavistock Clinic (1951) published the results of their work in British coal mines. proposed that the leadership functions of a group should be shared between the leader and group members and showed how that could be done. Humanistic and democratic values suffused the movement. and understand group dynamics. increase self-understanding. P. and a general “humanizing” of the workplace. These years witnessed the beginnings of the laboratory training movement (1946 and 1947). higher-level needs become dominant.
summarized the state of organization development a decade or so after its inception. Values have always been an integral part of OD. and need to be led. and greater individual autonomy.” (1969) a set of six little books on OD by prominent practitioners. and democratic. Tannenbaum and Davis presented their ideas in an article appearing in Industrial Management Review. bureaucracy. a mechanistic organization structure may be appropriate. management practices. theory. Out of this zeitgeist. In addition to presenting Theory X and Y. humanistic. groups. dysfunctions. . The task of management is to change organizational structures. open communications. Organic structures encourage decentralized decision making and authority. ‘The Social Psychology of Organizations’ by Daniel Katz and Robert L. organization development practitioners formulated a set of values and assumptions regarding people. and to pursue organizational goals if given the chance and the social environment to do so. the initial enthusiasm for scientific management. optimistic. to assume responsibility. practice. To summarize the intellectual climate of this period. goal-oriented. one-on-one leadership style. and organizations that is. Kahn (1966) presented the first comprehensive exposition of organizations as open systems. and values of the field. The Bennis and Beckhard quotations come from their books in the Addison-Wesley Six-Pack. as we have said. and shares decision-making with the work group.indifferent to the organization’s needs. and negative consequences. 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. This chronology captures most of the significant influences from research. These six books presented the theory. and authoritarian leadership gave way to increasing doubts about these organizational practices as theory and research pointed up their limitations. and observations utilized by OD practitioners. This leadership style was contrasted with an authoritarian. resist change. an organic organization form is preferred. Burns and Stalker (1961) described two very different forms of organization structuremechanistic and organic. In an environment of slow change. Those who subscribe to Theory Y assume that people have the potential to develop. in an environment of high change. this book popularized Maslow’s motivation theory. The Addison-Wesley Publishing Company “OD Six-Pack. We will examine three early statements regarding OD values that had a significant impact on the field. and human resource practices to allow individual potential to be released. and introduced practicing managers to the concepts of need hierarchy and self-actualization.
· Development of more effective "team management. This is a strong reaction against the idea of organizations as mechanisms which managers "work on. Bennis clarified some of the salient differences between mechanical systems and organic systems. M. 1. Another major player in the field was Richard Beckhard. · Development of better methods of conflict resolution. · Development of increased understanding between and within working groups in order to reduce tensions. Rather than the usual bureaucratic methods which rely mainly on suppression. In his 1969 book he described "several assumptions about the nature and functioning of organizations" held by OD practitioners. Warren Bennis proposed that OD practitioners (change agents) share a set of normative goals based on their humanistic/ democratic philosophy. compromise. The basic building blocks of an organization are groups (teams)." Mechanical systems encourage "centralized decision-making" while organic systems encourage "wide sharing of responsibility and control.” For example." like pushing buttons. Therefore. the capacity for functional groups to work more competently." that is. more rational and open methods of conflict resolution are sought. . · A shift in values so that human factors and feelings come to be considered legitimate.Writing in 1969. Stalker used the term “mechanistic” in contrast to “mechanical. mechanical systems rely on "authority-obedience relationships" while organic systems rely on "mutual confidence and trust. · Development of organic rather than mechanical systems." 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. He listed these normative goals as follows: · Improvement in interpersonal competence. Through focused attention and through the collection and feedback of relevant data to relevant people. more choices become available and hence better decisions are made. The earlier work by Tom Burns and G." Mechanical systems insist on "strict division of labour and hierarchical supervision" while organic systems foster "multi-group membership and responsibility. Here is his list. the basic units of change are groups. and unprincipled power. not individuals.
4. presented their view of OD values in a 1969 article.2. not the basis of managerial strategy. Decision-making in a healthy organization is located where the information sources are." People affected by a change must be allowed active participation and a sense of ownership in the planning and conduct of the change. mutual trust. One goal of a healthy organization is to develop generally open communication. · Away from maskmanship and game-playing toward authentic behaviour. · Away from utilizing an individual primarily with reference to his or her job description toward viewing an individual as a whole person. "People support what they help create. Robert Tannenbaum. toward seeing them as being in process. rather than in a particular role or level of hierarchy. and confidence between and across levels. 5. 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. · Away from avoiding facing others with relevant data toward making appropriate confrontation. · Away from resisting and fearing individual differences toward accepting and utilizing them. director of organization development. Organizations. · Away from distrusting people toward trusting them. . sub-units of organizations. · Away from avoidance of negative evaluation of individuals toward confirming them as human beings. · Away from a view of individuals as fixed. 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. 6. 3. and individuals continuously manage their affairs against goals. · Away from use of status for maintaining power and personal prestige toward use of status for organizationally relevant purposes. a professor and Sheldon Davis. · Away from walling off the expression of feelings toward making possible both appropriate expression and effective use. Controls are interim measurements.
5. and organizations? 5. The second assumption is that most people desire to make. 5. 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. · Away from a primary emphasis on competition toward a much greater emphasis on collaboration. appropriate uses of power. permit failure.1 Implications for Dealing with Individuals Two basic assumptions about individuals in organizations pervade organization development. · Away from a view of process work as being unproductive effort toward seeing it as essential to effective task accomplishment. Most people want to develop their potential. challenge. Beliefs such as trust and respect for the individual.· Away from avoidance of risk-taking toward willingness to risk. open communication.5. The first assumption is that most individuals have drives toward personal growth and development if provided an environment that is both supportive and challenging. The people doing the work are generally experts on how to do it and how to do it better. These values and assumptions may not seem profound today.2 Implications for Dealing with Groups . We answer the question: What are some of the implications of OD assumptions and values for dealing with individuals. collaboration and co-operation. and so forth were seldom espoused and rarely implemented in the vast majority of organizations at that time. and arbitrary management practices as well as the dysfunctions of bureaucracies. The democratic values prompted a critique of authoritarian. support. encourage risk-taking. A tremendous amount of constructive energy can be tapped if organizations realize and act on these assumptions. set high standards. give autonomy. remove obstacles and barriers. but in the 1950s and 1960s they represented a radical departure from accepted beliefs and assumptions. authentic interpersonal relations. and are capable of making. groups. autocratic. participation and contribution by all organization members. the legitimacy of feelings. listen. The humanistic values prompted a search for better ways to run organizations and develop the people in them. 5.5 Implications of OD Values and Assumptions Let us examine specific assumptions and their implications for organization leaders and members. The implications of these two assumptions are straightforward: Ask. decentralized decision making. give responsibility. and reward success. a greater contribution to attaining organization goals than most organizational environments permit.
greatly influences feelings of satisfaction and competence. are dysfunctional . First. Also. invest training time and money to increase group members’ skills. at both the formal and informal levels. What occurs in the work group. and interpersonal communication. D. The question becomes not how A can get B to perform better. and co-operation within the group. Hence. formalized cross-functional communication. Second. not individuals. Third. experimenting with new organization structures and new forms of authority is imperative. support. Finally. invest energy and intelligence in creating a positive climate. leaders should invest in groups: Invest the time required for group development. the assumption is that many attitudinal and motivational problems in organizations require interactive and transactional solutions. This skill is a trainable one. And because suppressed feelings and attitudes adversely affect problem-solving. most people are capable of making greater contributions to a group’s effectiveness and development. traditional hierarchical forms of organization-fairly steep pyramid. such as a work group. Such problems have the greatest chance of constructive solution if all parties in the system alter their mutual relationships.5. Implications of these assumptions are several. most people wish to be accepted and to interact co-operatively with at least one small reference group. 5. in addition. are the best way to satisfy social and emotional needs at work. in which one side wins and the other side loses. Another assumption is that the formal leader cannot perform all the leadership and maintenance functions required for a group to optimize its effectiveness. Dealing appropriately with feelings and attitudes increases the level of interpersonal trust. and so on-are obsolete. By implication. Frequently the challenge is broader. grouping by specialized function. including peers and boss. emphasis on topdown directives. one of the most psychologically relevant reference groups for most people is the work group. It is especially important that leaders adopt a team leadership style. and so on. the family. group members should assist the leader with the multiple roles required for group effectiveness. To do this. including how persons C. One implication is that group members should receive training in group effectiveness skills such as group problem-solving and decision-making. a church or club group. Therefore. and job satisfaction.3 Implications for Designing and Running Organizations Clearly. personal growth. adherence to the chain of command. leaders need to give important work to teams. this group perspective requires a shift from viewing problems as "within the problem person" to viewing problems and solutions as transactional and as embedded in a system. In addition. and usually with more than one group. a growing awareness that “win-lose” organizational situations.Several assumptions relate to the importance of work teams and the collaborative management of team culture. group members should be encouraged to learn to deal effectively with positive and negative feelings. Let teams flourish because they are often the best way to get work done and. and E can support these changes. facilitation. not a one-on-one leadership style. They cannot meet the demands of the marketplace. conflict management. 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.
5. optimistic and democratic. and ways to optimize human potential. and organizational changes taking place assure that tomorrow will bring new definitions of what is "true" and new beliefs about what is "good. By implication. Chronology of events in management and OD tremendously influenced OD practitioners. beliefs and assumptions are cognitive facts. and profitability. These OD values were considered revolutionary when they emerged in the 1950s. Values are also beliefs. and empowering. The implication is that people are an organization’s most important resource." as behavioural scientists and managers continue to develop better understanding of authority structures. Values. Such an orientation creates a self-fulfilling prophecy. societal. Finally. This discussion was intended to articulate an appreciation of OD values and explain where they came from. Evidence for this assumption comes from numerous examples where “putting people first” paid off handsomely in profits and performance. A key assumption in organization development is that the needs and aspirations of human beings are the reasons for organized effort in society.6 Summary The field of OD rests on a foundation of values and assumptions about people and organizations. OD values tend to be humanistic. they are the source of productivity and profits and should be treated with care. Concluding Comment: The field of organization development rests on a foundation of values and assumptions about people and organizations. Self Assessment Questions . it is possible to create organizations that on the one hand are humane. The belief that people are important tends to result in their being important. developmental set of assumptions about people is likely to reap rewards beneficial to both the organization and its members. Values. values are never static. A belief is a proposition about how the world works that the individual accepts as true. they change over time. The belief that people can grow and develop in terms of personal and organizational competency tends to produce that result. These beliefs help to define what OD is and guide its implementation. but are widely accepted today. This notion suggests it is good to have a developmental outlook and seek opportunities in which people can experience personal and professional growth. assumptions and beliefs help to define what OD is and guide its implementation.over the long run and highlight the need for a “win win” attitude. an optimistic. organizing structures. The rapid technological. quality of output. Still. developmental. and on the other hand are high performing in terms of productivity. Creating co-operative rather than competitive organizational dynamics is a primary task of the organization’s leaders.
F. Hawthorne experiments 5. The outcome of –––––––– was that people were not cogs and organizations were not machines. Refer section 5.2 2. 5.3 3. Douglas McGregor Answers to TQs: 1. 5. Cognitive 2. __________ is associated with scientific management. Taylor’s principles of scientific management.8 Answers to SAQs and TQs SAQs: 1.7 Terminal Questions 1. Bureaucracy 4. Values. Taylor 3. 5. 3. Refer section 5. 3. values. 2. What was the outcome of Hawthorne Experiments? 4.1. Define concepts. 4. Write a note about F.3 .W. _______________ gave theory X and theory Y. beliefs. 2. W. State the assumptions of Theory X and Theory Y. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. The concept of –––––––––– was introduced by MaxWeber. and assumptions are all –––––––––– facts. Refer section 5. beliefs and assumptions.
4 Porras and Robertson Model of Organizational Change 6.3 Socio-technical Theory and Open Systems Planning 6.1 Kurt Lewin and Friends 6. Refer section 184.108.40.206 Introduction Objectives 6.3 Systems Theory 220.127.116.11 Copyright © 2009 SMU Powered by Sikkim Manipal University .4 Open Systems Thinking 6.2 Models and Theories of Planned Change 6.4.1 The Nature of Systems 6.2 Beyond the Quick Fix 6.2 Congruence among System Elements 6.3. Refer section 18.104.22.168 5. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.3 The Burke-Litwin Model of Organizational Change 6.4 Participation and Empowerment .3.
Here we describe what we believe are the most important underpinnings for the field. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning.9 Action Research Self Assessment Questions 6.8 Applied Behavioural Science 6.12 Answers to SAQs and TQs 6.7 A Normative – Re-educative Strategy of Changing 6. Objectives: After studying this unit. We will examine the following concepts: .1 Introduction This unit describes the foundations of organization development theory and practice. art and science which form the knowledge base upon which OD is constructed. In this discussion. · Explain the terms ‘participation’ and ‘empowerment’. · Explain normative-re-educative strategy of changing The knowledge base of OD is extensive and is constantly growing. you will be able to: · Explain various models and theories of planned change. · Realize the importance of teams and teamwork. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs.6 Parallel Learning Structures 6. · Describe the parallel learning structures. · Explain systems theory.11 Terminal Questions 6.10 Summary 6.6.5 Teams and Teamwork 6.
For example.1 Kurt Lewin and Friends Kurt Lewin introduced two ideas about change that have been influential since the 1940s. it generally hovers around some equilibrium point that is the resultant in a field of forces. Likewise. Here we provide a framework for thinking about planned change by exploring several models from the literature. and specify the relationships among the variables. He suggested that change is a three-stage process: . The first idea states that what is occurring at any point in time is a resultant in a field of opposing forces. the important features of some phenomenon.· 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. With a technique called the force-field analysis. 6. Planned change theories are rudimentary as far as explaining relationships among variables. Lewin’s second idea was a model of the change process itself. Models and theories depict. This concept is useful for thinking about the dynamics of change situations. That is. some forces pushing toward higher morale and some pushing toward lower morale. 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. the status quo-whatever is happening right now-is the result of forces pushing in opposing directions. with some forces pushing toward higher levels of production and some forces pushing toward lower levels of production. Although morale may get a little better or a little worse on occasion. we can think of the level of morale in that plant as a resultant equilibrium point. we can think of the production level of a manufacturing plant as a resultant equilibrium point in a field of forces. The development of models of planned change facilitated the development of OD.2. 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. in words or pictures. The production level tends to remain fairly constant because the field of forces remains fairly constant. Several recent theories show great promise for increasing our understanding of what happens and how it happens in planned change. describe those features as variables.
disconfirmation creates pain and discomfort. But unless the person feels comfortable with dropping the old behaviours and acquiring new ones. unfreezing.non-smoking becomes the new equilibrium point. Refreezing the desired behaviour requires establishing a new field of forces to support the new behaviour. That is. etc. change his behaviour from being a smoker to being a non-smoker. In stage 1. Significant relationships. the non-smoking behaviour must become permanent. moving to new level of behaviour. Lewin’s three-stage model is a powerful tool for understanding change situations. Scanning the environment for new relevant information Stage 3: Refreezing: Helping the client to integrate the new point of view into a. Identifying with a new role model. Disconfirmation or lack of confirmation b. Next. that is. Edgar Schein took this excellent idea and improved it by specifying the psychological mechanisms involved in each stage. believe that cigarette smoking is bad for him and that he should stop smoking. Provision of psychological safety Stage 2: Changing through Cognitive Restructuring: Helping the client to see things. Change entails moving from one equilibrium point to another. Refreezing the behaviour at the new level. judge things. . Finally. that is. which motivate the person to change. The total personality and self-concept. change will not occur. A Three-Stage Model of the Change Process: Stage 1: Unfreezing: Creating motivation and readiness to change through a. The three-stage model says he must first unfreeze the old behaviour of smoking.Unfreezing the old behaviour (or situation). the person must develop a sense of psychological safety in order to replace the old behaviours with new behaviours. feel things. mentor. which cause guilt and anxiety. b. b. he must move. Take the example of a man who smokes cigarettes and wants to quit. Creation of guilt or anxiety c. and react to things differently based on a new point of view obtained through a.
They expanded the three-stage model into a seven-stage model representing the consulting process.In stage 2. In this phase a client system in need of help and a change agent from outside the system establish a working relationship. . that is. Phase 7: Achieving a terminal relationship. Phase 6: Generalizing and stabilizing change. the person undergoes cognitive restructuring. is to integrate the new behaviours into the person’s personality. Similar models have been developed by Kolb and Frohman and by Burke. Phase 4: Examining alternative routes and goals. Phase 2: Establishing a change relationship. The primary task in stage 3. and 5 correspond ro Lewin’s moving phase. moving. 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. This seven-stage model lays out the logical steps involved in OD consulting. and attitudes. 6. This phase corresponds to Lewin’s unfreezing phase. This phase corresponds to Lewin’s refreezing phase. Jeanne Watson. This model has five sequential stages: 1) Initiating the program. stabilizing the changes requires testing to see if they fit-fit with the individual. These "road maps" are useful for thinking about change. That is. refreezing. Phase 3: Clarifying or diagnosing the client system’s problem. for example.2. Phases 3.2 Beyond the “Quick Fix” A comprehensive change model by Ralph Kilmann specifies the critical leverage points for organizational change. and Bruce Westley. This motivating evidence is gained by. and fit with the individual’s social surroundings. terminating the client-consultant relationship. 4. establishing goals and intentions of action. The person acquires information and evidence showing that the change is desirable and possible. Phase 5: Transforming intentions into actual change efforts. Their seven stages are as follows: Phase 1: Developing a need for change. identifying with ex-smokers and learning about the health risks of smoking.
3) Scheduling the "tracks". Diagnosing the problems requires a thorough analysis of the problems and opportunities facing the organization. information sharing. Interventions include training programs. and willingness to change among members the conditions that must exist before any other improvement effort can succeed. Initiating the program entails securing commitment from top management. . 2) The management skills track. 3) The team-building track. 4) Implementing the "tracks" 5) Evaluating the results. Kilmann’s five tracks are: 1) The culture track. when functioning properly. problem-solving sessions. The management-skills track provides all management personnel with new ways of coping with complex problems and hidden assumptions. and so forth. Change programs take from one to five years to complete. 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.2) Diagnosing the problems. These problems and opportunities will be the targets of later interventions. 4) The strategy-structure track. Kilmann describes the five tracks: What does each track do for the organization? The culture track enhances trust. communication. called "tracks. critique practices and procedures. Scheduling and implementing the "tracks" involve intervening in five critical leverage points. and 5) The reward system track." that. cause the organization to be successful.
Changing culture is much more difficult than changing climate. the nature of the organization is fundamentally and substantially altered – the organization is transformed. or continuous change. often unconscious. then moving to the team-building track. and all resources with the new strategic direction. radical. Westinghouse. organizational culture is defined as deep-seated assumptions. and co-operative team efforts within and among all work groups. Kilmann has tested his model at AT&T. with an increasing emphasis on second-order transformational change. hard-working or easy-going. departments.2. TRW. adaptive. and . and beliefs that are enduring. Organizational climate is defined as people’s perceptions and attitudes about the organizationwhether it is a good or bad place to work. then moving to the management skills track. General Foods. jobs. management practices. Eastman Kodak. An OD consultant implements the tracks in a phased sequence. or discontinuous change. values. beginning with the culture track.3 The Burke-Litwin Model of Organizational Change The next model to be examined is the Burke-Litwin model of individual and organizational performance. some features of the organization change but the fundamental nature of the organization remains the same. revolutionary. On the other hand. Second-order change goes by many different labels: transformational. The premise of the BurkeLitwin model is this: OD interventions directed toward structure. evolutionary. the use of updated management skills. and its holistic view of organization change and development. In first-order change. Ford General Electric. and difficult to change. and Xerox with good results. and so forth. friendly or unfriendly. 6. First-order change goes by many different labels: transactional. and so forth. OD programs are directed toward both first. The model distinguishes between organizational climate and organizational culture. One likes this model because of its comprehensive nature. These perceptions are relatively easy to change because they are built on employees’ reactions to current managerial and organization practices. incremental. The reward-system track establishes a performance-based reward system that sustains all improvements by officially sanctioning the new culture.and second-order change. In second-order change. its identification of the five tracks as critical leverage points.The strategy-structure track develops either a completely new or a revised strategic plan for the firm and then aligns divisions. work groups. developed by Warner Burke and George Litwin. This model shows how to create first-order and second-order change (which the authors call “transactional change” and “transformational change”).
individual and organizational performance. in turn. Transactional leaders are "leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements. Transactional leadership is required to make this change in organizational climate. Changing structure. which change motivation and. 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. leadership.1: The Transactional Factors Involved in First – Order Change . and organization culture result in second-order change. Following figure shows the factors involved in first-order (transactional) change.systems (policies and procedures) result in first-order change. We will do so in several steps. management practices. These two concepts come from leadership research which found that some leaders are capable of obtaining extraordinary performance from followers while other leaders are not. interventions directed toward mission and strategy. Transactional leadership is sufficient for causing first-order change. and systems cause changes in work unit climate. Fig." Transformational leadership embodies inspiration which leads to new heights of performance. 6. Transformational leadership is required for causing second-order change. The model also makes a distinction between transactional and transformational leadership styles." Transactional leadership embodies a fair exchange between leader and follower that leads to "normal" performance. Now let us look at the Burke-Litwin model.
2: The Transformational Factors Involved in Second – Order Change On the other hand. and organization culture produce transformational change or fundamental change in the organization’s culture. The second set of dynamics is concerned with processes of human transformation. . leadership styles. Interventions directed toward management practices. mission and strategy. as shown in the above figure. Interventions directed toward these factors transform the organization and cause a permanent change in organization culture. these transformational processes are required for genuine change in the culture of an organization. To summarize. and then targets interventions toward factors of the organization that produce the desired change. Burke and Litwin propose that interventions directed toward leadership. One set primarily is associated with the transactional level of human behaviour or the everyday interactions and exchanges that create the climate. sudden "leaps" in behaviour. Research by Burke and his students suggests the model performs as intended. and systems produce transactional change or change in organizational climate. The OD practitioner sizes up the change situation. which produces changes in individual and organizational performance. The above two figures together yield the full Burke-Litwin model shown in the following figure. if we want to cause second-order (transformational) change. we must change mission and strategy. structure.Fig. determines the kind of change required (transactional or transformational). These factors are able to change the climate. These factors are powerful enough to change the culture fundamentally. Burke says: “Thus there are two distinct sets of organizational dynamics. The top half of figure displays the factors involved in transformational change. that is.” We consider the Burke-Litwin model to be a significant advance in thinking about planned change. and organization culture. The bottom half of figure displays the factors involved in transactional change. 6.
it is described in a discussion by Porras and Peter Robertson. OD interventions that focus on goals. For example.Fig. and rewards will affect organizing arrangements. physical setting.4 Porras and Robertson Model of Organizational Change Jerry Porras and his associates developed a model of how organization development works.4: Organizational Work-Setting Factors This model is extremely useful for OD practitioners and organizational leaders. social factors. and interaction processes will affect social factors. It is how OD works. This model shows how OD interventions can be linked to factors in the work setting. 6. strategies. .3: The Burke Litwin Model of Organizational Performance and Change 6. Organizational change occurs only when individuals change their behaviour. Interventions that focus on job design and work flow design will affect technology. rewarded).2. which in turn lead to individual and organizational improvements. which influence on-the job behaviours. which determine organizational performance and individual development. Following figure shows the work setting in the larger organizational framework. 6. and these behaviour changes occur when elements of the work setting have been modified by OD interventions. Fig. and technology. Keep this framework in mind as you read the units on OD interventions because all interventions target one or more factors shown in figures. required. according to Porras and Robertson. management style. The basic premise is that OD interventions alter features of the work setting causing changes in individuals’ behaviours. The work setting plays a central role in this model and consists of four factors: organizing arrangements. The premise modeled here is that work setting factors influence organizational members’ cognitions (they learn what is expected. Interventions that focus on culture.
Fig. and interrelatedness among elements in a set that constitutes an identifiable whole or gestalt. Systems theory is one of the most powerful conceptual tools available for understanding the dynamics of organizations and organizational change. unitary whole composed of two or more interdependent parts. This section explains systems theory. and Katz and Kahn were the first to apply open systems theory to organizations in 1966. Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950.system. and delineated by identifiable boundaries from its environmental supra." To summarize. system denotes interdependency." Von Bertalanffy refers to a system as a set of "elements standing in interaction. . The words ‘arrangement’ and ‘interrelated’ describe interdependent elements forming an entity. interconnectedness. or subsystems. and shows how systems theory enhances the practice of OD." Hanna says: "A system is an arrangement of interrelated parts. one begins by identifying the individual parts and then seeks to understand the nature of their collective interaction. that is the system. when taking a systems approach.5: A Change-based Organizational Framework 6.3 Systems Theory A second foundation of organization development is systems theory. 6. describes the characteristics of systems. Thus. which views organizations as open systems in active exchange with their environment. components. Fagen defines system as "a set of objects together with relationships between the objects and between their attributes." Kast and Rosenzweig define system as "an organized.
For example.3. raw material and so on. Systems take inputs from the environment in the form of energy. Here. and what is outside the boundary is the environment. in that they permit exchange of information. Every system is delineated by a boundary. What is inside the boundary is the system. people. the organization will cease to exist. information. These purposes must align with purposes or needs in the environment. studying open systems leads to a good understanding of organizations. Each of these three system processes must work well if the system is to be effective and survive. and characteristics of open systems are well-known. the reasons for their existence. conversion. . Organizations achieve negative entropy when they are able to exchange their outputs for enough inputs to keep the system from running down. and they export products to the environment in the form of outputs. 6. Boundaries of open systems are permeable. money. They do something to the inputs via throughput. Fig.6. Open systems have purposes and goals. A good rule of thumb for drawing the boundary is that more energy exchange occurs within the boundary than across the boundary. Therefore. resources. All open systems are input-throughput-output mechanisms. dynamics. the organization’s purposes will be reflected in its outputs. and energy between system and environment.1 The Nature of Systems The nature. or transformation processes that change the inputs. Organizations are open systems. and if the environment does not want these outputs. we examine the characteristics of open systems drawing OD expositions by Katz and Kahn and Hanna.6: A System in Interaction with its Environment The law of entropy states that all systems “run down” and disintegrate unless they reverse the entropic process by importing more energy than they use.
however. systems tend to get more elaborated. Positive feedback comes from the environment. eating fads.Information is important to systems in several ways. organizations in the fast-food industry pay a lot of attention to information about their industry-nutrition. either internal or external. and complex over time. It is sometimes called deviation-amplifying feed back. For example. if a rocket ship traveling to the moon strays off its trajectory. Say your company makes buggy whips. Negative feedback measures whether or not the output is on course with the purpose and goals. These subsystems can be arranged into a hierarchy of systems moving from less important to more important. "return to earth. negative and positive." Here is another example of negative and positive feedback. competitors. it receives information to that effect in the form of negative feedback. say. Systems require two kinds of feedback.2 Congruence among System Elements David Nadler and associates at Delta Consulting Group developed the congruence model for understanding organizational dynamics and change. they usually ignore information about other industries such as electronics.3. For example. and the like. As Katz and Kahn say: “The basic principle is the preservation of the character of the system. and so on. It is also known as deviation-correcting feedback. Systems are bombarded by all kinds of information: some are useful. that information is called positive feedback. while screening out other information. and makes a course correction. and the production plan calls for 100 buggy whips per month. 6. If the mission (target) changes. Feedback is information from the environment about system performance. differentiated. but most are not useful. this process is called differentiation. Systems "code" useful information and incorporate it.” Also. Survival of the system is equally influenced by whether or not the targets themselves are appropriate. and the system adjusts to a new goal. aerospace. With increased differentiation. Another characteristic of open systems is steady state or dynamic homeostasis. increased integration and co-ordination are necessary. Another characteristic of systems is equifinality. specialized. the principle that there are multiple ways to arrive at a particular outcome or state – systems have multiple paths to goals. Subsystems exist within larger systems. The usefulness of the two concepts is that they demonstrate that it is not enough to merely measure our outputs versus the intended targets. By the same token. Systems achieve a steady state or equilibrium point and seek to maintain this equilibrium against disruptive forces. Positive feedback measures whether or not the purpose and goals are aligned with environmental needs. The three major input factors are: . mining. This model depicts the organization as an input-throughput-output system. Negative feedback tells you if you are on track with your scheduled production output. it will signal whether the environment needs and/or wants buggy whips.
performance will suffer. perceptions. For example. and informal organization. people. You can use this model to analyze organizations with which you are familiar. performance will suffer. and systems for performing the work. If the strategy calls for entrepreneurial quickness and risk-taking and the formal organization is bureaucratic and highly centralized. formal organization. which includes skills. If the organization’s culture (informal organization) praises individual accomplishments and the work requires teamwork and collaboration.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. and technology. and how things really work (versus how they are supposed to work as defined by the formal organization). performance will suffer.1) The environment. unit/group level. which imposes constraints and opportunities about what the organization can and can not do. the tasks people perform to create products and service markets people. knowledge. 6. processes. and critical decisions that still influence behaviour today. fit) must be present among the system’s components’ for the organization to produce satisfactory outputs. knowledge. failures." The premise is that alignment (harmony. In a company that is performing poorly. and the workforce’s expectations. which components are "not functioning correctly. 2) Resources available to the organization. which includes the organization’s culture informal rules and understandings. Fig. and individual level. and 3) History which consists of memories of past successes. and 2) Evaluating the "goodness of fit" or how well the elements "go together. what the organization is trying to accomplish and how it plans to do it." and which elements . work. if people don’t have the skills and knowledge required to do the work. which includes formal structures. important events. . Elements of the organization per se are labeled strategy. such as capital. Outputs are performance at the total organization level.
Systems models are essential for the practice of OD.socio-technical systems theory (STS) and open systems planning (OSP)-play an important role in organization development.KI Jayaram. training group members in multiple skills. G. controlling variance at the source. especially autonomous work groups (self-regulated teams or self-direct teams). 6. to the workers doing the job. and information to the point of action. multi-skilled teams. Principles such as optimizing the social and technical systems. both realistic (likely to happen if the organization continues on its current course) and ideal (what the organization would like to see happen). Socio-technical systems theory was developed by Eric Trist. Hanna writes: In the late 1960s a small team of consultants led by James Clark. STS is the principal conceptual foundation for efforts in work redesign and organization restructuring. and Will McWhinney developed a technology for addressing the interface between organization and the environment. Fred Emery. 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. High-performance organizations almost always use principles from socio-technical systems theory. Their technology became known as Open systems Planning (OSP). and . 2) Developing scenarios of possible futures. The thesis of STS is that all organizations are comprised of two interdependent systems.are poorly aligned? In companies showing outstanding performance. Open systems planning entails: 1) Scanning the environment to determine the expectations of external organizations and stake-holders. forming autonomous work groups. and others at the Tavistock Institute in the 1950s. giving information and feedback to the people doing the work.3. a social system and a technical system. organizations must optimize both systems. two active segments of OD today. A number of design principles have been developed to implement socio-technical systems theory. and identifying core tasks help STS consultants structure organizations and tasks for maximum effectiveness and efficiency. Another important application of systems theory in organization development is open systems planning. that is.3 Socio-technical Systems Theory and Open Systems Planning Two major variations of open systems theory. Charles Krone. and that changes in one system affect the other system. To achieve high productivity and employee satisfaction. 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.
issues. this combination is often used in designing high-performance organizations. not single effects. and systems thinking. and incidents are not viewed as isolated phenomena. 6. OD practitioners expect multiple effects. but seen in relation to other issues. because most phenomena have more than one cause. Third. is the most important. the fifth discipline. First. This idea moves the practitioner away from analyzing historical events and toward examining contemporary events and forces. changing one part of a system influences other parts. a systems approach encourages analysis of events in terms of multiple causation rather than single causation. there is no motivation to look at how the disciplines interrelate. not just its component parts. fusing them into a coherent body of theory and practice.4 Participation of Empowerment One of the most important foundations of organization development is a participation/ empowerment model. according to field theory (Kurt Lewin).” In conclusion.4 Open Systems Thinking Open systems thinking is required for creating learning organizations. Fourth.3) Developing action plans to ensure that a desirable future occurs. Participation in OD programs is not restricted to elites or the top people. He says of systems thinking: “It is the discipline that integrates the disciplines. systems thinking. Viewing organizations from this perspective has several consequences. the forces in the field at the time of the event are the relevant forces for analysis. Without a systemic orientation. events. it continually reminds us that the whole can exceed the sum of its parts. to change a system. For example. one changes the system. from their activities. Senge believes that five disciplines must be mastered to create a learning organization: personal mastery. building shared vision. team learning. And fifth. It keeps them from being separate gimmicks or the latest organization change fads. Increased participation and empowerment . 6. Of all these disciplines. it is extended broadly throughout the organization.3. events and forces. according to Peter Senge. mental models. By enhancing each of the other disciplines. Learning organizations can cope effectively with rapidly changing environmental demands. Most OD practitioners engaged in redesign projects use a combination of socio-technical systems theory and open systems planning. Second. forces. systems theory pervades the theory and practice of organization development. from diagnosis to intervention to evaluation. therefore.
called "organic. Participation is an especially effective form of empowerment. involvement and participation energize greater performance. and growth. quality of work life programs. They must see themselves as having freedom and discretion. which is done by giving individuals the authority to make decisions. But both views contain valid ideas: for example. increase commitment to the organization. to exert influence. and greatly enhance acceptance of decisions. Robert Quinn and Gretchen Spreitzer found two vastly different views of empowerment. Rules of thumb such as "Involve all those who are part of the problem or part of the solution. They believed that it was about risk-taking. which they call "mechanistic. Quinn and Spreitzer conclude: “Empowerment.have always been central goals and fundamental values of the field." These authors believe the organic view. then. is not something that management does to employees. they must if personally connected to . employees must choose to be empowered. produce better solutions to problems. and give more power to more people. treat those closest to the problem as the relevant experts. is the more useful perspective. The other view. autonomous work groups. with its emphasis on risk-taking. the organic approach unleashes talent and energy in people that are best channeled by providing clear guidelines and boundaries. These pillars of OD practice are validated by both research and practice. One view. and generally make people feel better about themselves and their worlds. While management can create a context that is more empowering. Participation is a powerful elixir-it is good for people and performance. Further. and empowerment in turn enhances performance and individual well-being. but rather a mind-set that employees have about their roles in the organization. Participation enhances empowerment. Research on group dynamics began in the 1940s and achieved exponential growth in the 1950s and 1960s. Empowerment meant trusting people and tolerating their imperfections. Researchers found that group dynamics work to overcome resistance to change. quality circles. search conferences. They describe the organic view: "The other group of executives saw empowerment much differently. and the culture audit are all predicated on the belief that increased participation will lead to better solutions. reduce stress levels. To empower is to give someone power. personal initiative. The entire field of OD is about empowerment. This research demonstrated that most people desire increased involvement and participation. to contribute their ideas." direct leaders to push decision-making lower in the organization. growth." is a top-down delegation of decision-making with clear boundaries and strict accountability that increases managerial control." and "Have decisions made by those who are closest to the problem. The most important contrast between the two views involves the implicit but potentially volatile assumptions people make about trust and contro1. OD interventions are basically methods for increasing participation." is bottom-up and less controlling. OD interventions are deliberately designed to increase involvement and participation by organization leaders and members. For example. survey feedback. team building. and change. and to be responsible.
Examples are team-building. and team-related acronyms abound-SDTs (self-directed teams). Second. "The evidence is abundantly clear: Effective teams produce results far beyond the performance of unrelated individuals. The message of this section is that putting those empowered individuals into teams creates extraordinary effects on performance and satisfaction. The previous discussion focused on empowerment and concluded that the act of empowering individuals greatly increased their performance and satisfaction. STS (socio-technical systems). and practice attest to the central role teams play in organizational success. and relationships if they are to be effective. and respectteams nurture human nature. and explore ways to realize that potential. the noun team has become a verb. Teams and teamwork are part of the foundation of organization development. as a team. people must work together to accomplish them. teams satisfy people’s needs for social interaction. status. much individual behaviour is rooted in the socio-cultural norms and values of the work team. teaming. A second fundamental belief is that teams must manage their culture. recognition. Synergy is a principal reason teams are so important. teams at 3M generate the hundreds of innovations that keep 3M ahead of its competition. to name just a few. we examine the potential of teams and teamwork. processes. Fourth. In this section. . Teams and teamwork are "in. the sum of the efforts of team members is far greater than the sum of the individual efforts of people working alone. process consultation. and capable of having an impact on the system in which they are embedded. systems. quality circles. Teams at Motorola produced its bestselling cellular phones. inter-group team-building. that is.5 Team and Teamwork A fundamental belief in organization development is that work teams are the building blocks of organizations. changes those norms and values. Third. Teams are important for a number of reasons: First. A number of OD interventions are specifically designed to improve team performance. If the team. Team Saturn produced the Saturn automobile.” 6.the organization. Team Taurus developed Ford’s best-selling automobile. research. QCs (quality circles). HPOs (high-performance organizations). teams create synergy. HPWSs (high-performance work systems). confident about their abilities. Theory. many tasks are so complex they cannot be performed by individuals. crossfunctional "design-build" teams developed the Boeing 777. the effects on individual behaviour are immediate and lasting. Teams and teamwork are among the "hottest" things happening in organizations today – gurus extol the virtues of teams.
cross-functional teams. The net effect is that teams perform at increasingly higher levels. Team-building activities are now a way of life for many organizations. including collegiate football national champions. people are trained in group dynamics and group problem-solving skills. Investigators are discovering why some teams are successful while others are not. role negotiation technique. Union Pacific Railroad. that they achieve synergy. and individuals are trained as group leaders and group facilitators. heart transplant surgical teams. Larson and LaFasto studied a number of high-performance teams. autonomous. help each other. When any one feature is lost. He uses examples from EDS (Electronic Data Systems). High-performance teams regulate the behaviour of team members. socio-technical systems programs. temporary teams. and the like. These interventions apply to formal work teams as well as startup teams. All these characteristics are required for superior team performance. and that teamwork becomes more satisfying for team members. and others. Tom Peters asserts in Liberation Management that cross-functional. elevating goal 2) A results-driven structure 3) Competent team members 4) Unified commitment 5) A collaborative climate 6) Standards of excellence 7) External support and recognition Principled leadership. and responsibility charting. Grid OD and techniques such as role analysis technique. and set ever-higher goals. team performance declines. 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. . 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 found eight characteristics always present: 1) A clear. to determine the characteristics that make them successful. Asea Brown Boveri. empowered teams are what the best organizations are using right now to outdistance the competition.parallel learning structures. find innovative ways around barriers. the crew of the USS Kitty Hawk. Teams periodically hold team-building meetings.
talking. If you don’t implement different norms and procedures. In essence. and high accountability drive these project teams to outperform traditional organization structures on every measurable dimension. you don’t have a parallel structure. High-performance organizations often use parallel structures to co-ordinate self-directed teams. Most socio-technical systems redesign efforts and open systems planning programs use parallel structures. projects will be performed by teams. constitute another important foundation of organization development. Considerable experimentation with collateral organizations occurred in the 1970s and 1980s.” The purpose of the collateral organization is to deal with "ill-structured" problems the formal organization is unable to resolve. and countless other organizations to demonstrate the ability of small project teams to produce high quality. 6. and initiate needed changes. and acting differently than normally takes place at work. deciding. especially when the change involves a fundamental shift in the organization’s methods of work and/or culture. flexible response. The quality of work life programs of the 1970s and 1980s used parallel structures composed of union leaders.7 A Normative – Re-educative Strategy of Changing . specially created organizational structures for planning and guiding change programs.” Parallel structures help people break free of the normal constraints imposed by the organization. clear objectives. Dale had introduced this concept in 1974 under the label collateral organization and defined it as “a supplemental organization coexisting with the usual formal organization. and report to one of your subordinates on another team. Projects are the work of the future. managers. engage in genuine inquiry and experimentation. and then leading the process. It isn’t the supplemental structure that’s important. normal hierarchical considerations become obsolete for these project teams-you could be the boss of one team. The most important and difficult task for the people creating the parallel learning structure is to create a different culture within it. Interestingly. High responsibility. superior customer service. 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. and continuous learning. Parallel learning structures are a foundation of OD because they are prevalent in so many different OD programs. At Ford Motor Company. and employees.Titeflex. Bushe and Shani say: “The key thing about parallel structures is that they create a bounded space and time for thinking. 6. What’s important is that people act in a way that promotes learning and adaptation.6 Parallel Learning Structures Parallel learning structures. parallel structures are a vehicle for learning how to change the system. Parallel learning structures are often the best way to initiate change in large bureaucratic organizations. a steering committee and working groups were used to co-ordinate the employee involvement teams.
rather than the OD practitioner. The rationality and intelligence of men are not denied. based on the assumption that change is compliance of those who have less power with the desires of those who have are power. and they give more options to both the clients and the practitioner. will occur only as the persons involved are brought to change their normative orientations to old patterns and develop commitments to new ones. relationships and customary ways of doing things. or intellectual rationales for action and practice. attitudes. The norms to be changed and the form of re-education are decided by the client system members. Change in a pattern of practice or action.Organization development involves change. anxieties. and’ negative feelings are surfaced for "working through. skills. Sociocultural norms are supported by the attitude and value systems of individuals-normative outlooks which undergird their commitments. that is. according to this view. Chin and Benne suggest that a normative-re-educative. not just changes in knowledge. strategy has the following implications for the practice of OD. The client system members define what changes and improvements they want to make. Chin and Benne indicate the nature of the normative-reductive strategy as follows: A second group of strategies we call normative-re-educative. the practitioner intervenes in a collaborative way with the clients. The first type is empirical rational strategies. and it rests on a particular strategy for change that has implications for practitioners and organization members alike. and together they define problems and seek solutions. doubts. values. The point here is that different strategies are available for effecting change. and OD is based primarily on a normative-re-educative strategy and secondarily on a rational-empirical strategy. will follow their rational self-interest. based on the assumptions that people are rational. Patterns of action and practice are supported – by socio-cultural norms and by commitments on the part of the individuals to these norms." Solutions to problems are not a priori assigned to greater technical information but may reside in values. based on the assumptions that norms form the basis for behaviour. These implications give clients considerable control over the situation. These strategies build upon assumptions about human motivation different from those underlying the first. The second group of strategies is normative-re-educative strategies. and change comes through re-education in which old norms are discarded and supplanted by new ones. Chin and Benne describe three types of strategies for changing. and significant relationships. they impel a collaborative effort rather than a "doing something to" effort. Anything hindering effective problem solving is brought to light and publicly examined. and will change if and when they come to realize change is advantageous to them. And changes in normative orientations involve changes in attitudes. Evaluated against these three change strategies. information. OD clearly falls within the normativere-educative category. although often OD represents a combination of the normative-reeductive and the empirical-rational strategies. The third set of strategies is the power-coercive strategies. .
Because norms are socially accepted beliefs held by groups about appropriate and inappropriate behaviours. and skills in ongoing systems in collaboration with system members. lawful patterns of events produce effectiveness and ineffectiveness. not the individual.” Norms help determine individual behaviour and a normative-re-educative strategy of changing pervades the practice of OD. on the basis of selected variables.e. Greenwood states: “The diagnostic and treatment typologies are employed together. hopefully. thereby solving the problem.” . i. behavioural science knowledge. the treatment typology allows the practitioner to know what remedial efforts to apply to correct the problem. Thus. success corroborating the diagnosis. A conventional distinction is made between (1) "pure" or basic science. pressing problems. The practitioner uses treatment as the empirical test of his diagnosis. This process is customarily referred to as diagnosis and treatment. The diagnostic typology allows the practitioner to know what category of situation he or she has examined. the object of which is knowledge for its own sake. OD is the application of behavioural science knowledge. Each type description of the diagnostic typology contains implications for a certain type of treatment. 6. practices.8 Applied Behavioural Science This foundation of OD relates to the primary knowledge base of the field. The principles of diagnosis and of treatment constitute the principles of practice. Although human behaviour in organizations is far from an exact science. 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. or practice. for example. OD practitioners know about these patterns through research and theory. by modifying a group norm or standards." applied science.. the object of which is knowledge to solve practical. Greenwood discusses the activities of the practitioner as follows: "The problem that confronts a practitioner is customarily a state of disequilibrium that requires rectification. 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. failure negating it and thus requiring re-diagnosis. The practitioner examines the problem situation." Both diagnosis and treatment consist of observing a situation and. with their elaborations and implications constitute practice theory. On this point. and (2) "technology. re-establishes the equilibrium. placing it in a classification scheme or typology. The aim of this discussion is to look briefly at how behavioural science knowledge becomes applied behavioural science knowledge. norms can best be changed by focusing on the group. the major leverage point for change is at the group level. applied science or practice. OD emphasizes the latter. on the basis of which he or she prescribes a solution that.
Action research involves three processes: data collection. feedback of the data to the client system members. problem-solving method that replicates the steps involved in the scientific method of inquiry underlies most OD activities. Action research is especially well-suited for planned change programs. I am inclined to hold the opposite to be true. form of applied behavioural science. Kurt Lewin. The two bottom inputs. who developed the concept of action research. practice research and practice theory. had this to say about it: “The research needed for social practice can best be characterized as research for social management or social engineering. Action research is a method that combines learning and doing – learning about the dynamics of organizational change. represent contributions from applied science. then selecting and implementing treatments based on the diagnosis.From this "practice theory. the two top in puts. behavioural science research and two behavioural science theory. represent contributions from pure or basic science. it is a program of applying behavioural science to organizations. and doing or implementing change efforts." the OD practitioner works: first diagnosing the situation. 6. and finally evaluating the effects of the treatments.8: Composition of Applied Behavioural Science Organization development is both a result of applied behavioural science and a. a comparative search on the conditions and effects of various forms of social action. Fig.9 Action Research The action research model – a data-based. It is a type of action-research. perhaps more accurately. and action planning based on the data. 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.” Concluding Comments: .
_____________ means sum of the efforts of team members is far greater than the sum of individual efforts of members. Action research model combines learning and doing. 6. Taken collectively. 4.10 Summary The foundations of organizational development form the theoretical and practice underpinnings of the field. 2. 3. 2.11 Terminal Questions 1. which in turn lead to individual and organizational improvements is the principle of Porras and Robertson model organizational change. Taken separately. A fundamental belief in OD is that work teams are the building blocks of organizations. Explain Kurt Lewin’s models and theories of planned organizational change. each is a powerful conceptual tool for thinking out and implementing change. What are first-order and second order change according to Burke-Litwin Model of organizational change? Explain.These foundations of organization development form the theoretical and practice underpinnings of the field. 3. The Burke-Litwin model emphasized on first-order and second-order change. –––––––––– gave the model “Beyond the Quick Fix”. they constitute the beginning of a theory of organization development and change that has enormous potential for improving organizational performance and individual development. In parallel learning structures members have to think and behave in ways that are different from the normal roles and rules of the organization. A _____________ is defined as “a set of elements standing in interaction. 6. OD interventions alter features of the work setting causing changes in individuals’ behaviours. First—order change is also called ___________. 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. Ralph Kilmann specified the critical leverage points for organizational change. Bring out the essence of “managing beyond the quick fix” model of organizational development. . Self Assessment Questions 1. Systems theory views organizations as open systems in active exchange with their environment. –––––––––– means moving to new level of behaviour.” 5.
MU0002-Unit-07-Organization Climate Unit-07-Organization Culture and Climate Structure: 7.2 3.1 Introduction Objectives 7. Ralph Kilmann 3.3 4. Refer section 6.” Comment on this statement.Refer section 6. Refer section 6. “Work teams are building blocks of organizational development. Refer section 6. System 5. 6.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . What are the features of systems theory of organizational development? 22.214.171.124 2. Refer section 6. Unfreezing 2. Transactional change 4.3 5.12 Answers to SAQs and TQs SAQs: 1. Synergy Answers to TQs: 1.2 Characteristics of Organization Culture Culture and .2.2.
Culture is one of those terms that’s difficult to express distinctly. what they brag about. Members of an organization soon come to sense the particular culture of an organization. the culture of a large. you will be able to: · Understand Organization Culture. organizational change must include not only changing structures and processes. 7.6 Summary 7. Martin and Meyerson. . thinking. but everyone knows it when they sense it. discovered. For example.4 Organization Culture and Effectiveness 7. and feeling in relation to these problems (Schein.1 Introduction Basically.7 Terminal Questions 7. Objectives: After studying this unit. what members wear.3 Types of Organization Culture.7. values. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. despite the best-laid plans.5 Developing and changing Organization Culture Self Assessment Questions 7. for-profit corporation is quite different than that of a hospital which is quite different than that of a university. and validated enough to be taught to new members as the correct ways of perceiving. 1986). · Describe different types of Organization Culture · Explain organization culture and effectiveness. Practitioners are coming to realize that. norms and tangible signs (artifacts) of organization members and their behaviors. etc. – similar to what you can use to get a feeling about someone’s personality.8 Answers to SAQs and TQs 7. Comprehensively organization culture is the pattern of basic assumptions that is invented. Culture is comprised of the assumptions. organizational culture is the personality of the organization. You can tell the culture of an organization by looking at the arrangement of furniture. The concept of culture is particularly important when attempting to manage organization-wide change. but also changing the corporate culture as well.
2 Characteristics of Organization Culture Organizational culture has a number of important characteristics. Some of the most readily agreed upon are the following: 1. 7. They often have well-defined policies. internal and external are viewed in market . do not do too little?” 3. the way participants interact. 6. Rules: There are strict guidelines related to getting along in the organization. Standards of behavior exist. and the way members of the organization conduct themselves with customers or other outsiders. Organizational climate: This is an overall “feeling” that is conveyed by the physical layout. including guidelines on how much work to do. 5. and in particular taking note of transaction cost. processes and procedures. this was considered the only effective way of organizing and is still a basic element of the vast majority of organizations. Which in many organizations come down to “Do not do too much.· Discuss about developing and changing organization culture. Low absenteeism and high efficiency. When organizational participants interact with one another. Observed behavioral regularities. but one where all transactions. and rituals related to deference and demeanor. Hierarchies have respect for position and power. Dominate value: These are major values that the organization advocates and expects the participants to share.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. 2. Philosophy: These are policies that set forth the organization’s beliefs about how employees and/or customers are to be treated. Norms. 4. they use common language. New-comers must learn those “ropes” in order to be accepted as full-fledged members of the group. For many years. Note that the Market organization is not one which is focused just on marketing. Hierarchical leaders are typically coordinators and organizers who keep a close eye on what is happening. Typical examples are high product quality. terminology. Market The Market organization also seeks control but does so by looking outward. 7.
invisible to the naked eye. Adhocracy The Adhocracy has even greater independence and flexibility than the Clan. discovered. shared goals. value flows between people and stakeholders with minimal cost and delay. are particularly driven by results and are often very competitive. In biological terms.4 Organization Culture and Effectiveness It is reflected in how things are done (Flanagan. 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. 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). Leaders in market cultures are often hard-driving competitors who seek always to deliver the goods. although not necessarily documented. affecting the performance of every-one within the culture in positive or negative ways. supportive way and may take on a parental role. which is necessary in a rapidly changing business climate. 1995) and how problems are solved in an organization. culture is like the DNA of an organization. Comprehensively organization culture is the pattern of basic assumptions that is invented. and validated enough to be taught to new members as the correct ways of . Market cultures are outward looking. clans often have flat organizations and people and teams act more autonomousl. Leaders in an adhocracy are visionary. the adhocracy will rapidly form teams to face new challenges. people are driven through vision. big-bang projects and development.terms. Rather than strict rules and procedures. It will use prototyping and experimenting rather than long. It has an inward focus and a sense of family and people work well together. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. strongly driven by loyalty to one another and the shared cause. 7. but critical to shaping its behavior. do still exist and are often communicated and inculcated socially. outputs and outcomes. innovative entrepreneurs who take calculated risks to make significant gains. 1993). Clan The Clan organization has less focus on structure and control and a greater concern for flexibility. Where market success goes to those with greatest speed and adaptability. In contrast to Hierarchies. In an efficient market organization. Rules. Transactions are exchanges of value. Clan leaders act in a facilitative.
Thus. systems and subsystems. Identifying. or standards held by members of an organization. also called as organizational success or growth. norms. Though a large volume of literature is available on the concept and working of organizational effectiveness. Values evolve out of the basic assumption and form the core (or heart) of the culture. and procedures. from the basis of its policies and action.perceiving. Organization Effectiveness Organizational effectiveness. and feeling in relation to these problems (Schein.the informal rules of the fame telling employees what they are supposed to be saying. 1986). These are the essential and enduring tenets of an organization. various terms such as efficiency. rules. . goals. The set of basic assumptions evolve into values artifacts and norms in terms of which an organization culture may be examined and understood. individually and collectively. · Its rituals. symbols. etc. thinking. For example. and doing. · Public documents it releases and media reports and stories about it. productivity. · The observable behavior of its members (the way they talk. They are reflected in the core capabilities of a company. there is often contradiction in various approaches. and what is right and what is wrong. reflecting what is important in the organization and determining how the organization ought to be (the ethos. the way they dress etc. IBM norms dictate that employees should actively listen and respond to customer demands and complaints. communicating. Artifacts: The visible manifestations of culture as seen in the physical and social environment of the organization such as: · Its structure. the jargon they use. its core value are limited to a few in number. believing. and no unanimity is found in different approaches. and are generally not compromised for short-term benefits or financial gains. plaques. The various approaches are judgmental and open to question. is defined and conceptualized in different ways. Though an organization espouses a series of values. Martin and Meyerson. the personality of the organization). Values: These are the social principles. 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.
the loyalties. Whatever the criteria adopted for organizational effectiveness.g. scrap loss.profitability. skills. decisions. Many of these variables are caused by causal variables.which are useful in discussing organizational effectiveness over time. Causal variables include the structure of the organization and management’s policies. and they tend to be long-term goals. The intervening variables may be divided into two broad categories: (i) the intervening attitudinal. and behaviour. Intervening variables are concerned with building and developing the organization. According to Likert. and perceptual cluster. the process usually involves some version of the following steps: . Though each individual’s effectiveness is significant but perhaps the most important aspect of effectiveness is its relationship to the entire organization. 7.. These variables have been classified by Likert into three groups-causal. Likert states that the intervening variables reflect the internal state and health of the organization. From this point of view. and perceptions of all members and their collective capacity for effective interaction. the organizational analysis is incomplete for a practicing manager unless the factors underlying effectiveness are identifying. business and leadership strategies. Likert states that causal variables are independent variables which determine the course of developments within an organization and the results achieved by the organization. These causal variables include only those independent variables which can be altered or changed by the organization and its management. Grouping variables into these categories aids greatly in the correct interpretation of the data and their use for diagnostic and other purposes. and earnings.5 Developing and Changing Organization Culture How Organizational Cultures Start Although organizational cultures can develop in a number of different ways. 1. are often used interchangeably. end-result variables are the dependent variables which reflect the achievements in the organization such as its productivity. 2. Intervening Variables: Intervening variables are those factors which are reflected as the internal state of organization. there are numerous variables. This is one part of effectiveness that many managers overlook because it emphasis long-term potential as well as short-term performance. and (ii) the intervening behavioral cluster. intervening and end result. motivational. attitudes. Causal variables include the structure of the organization and its management. and decision-making. 3. communication. 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. Causal Variables: Causal variables are those factors that influence the course of development within an organization and its results or accomplishment. motivations. costs. to denote organizational effectiveness. e. performance goals. organizational growth.
powerful stakeholders such as unions. However. is worth running some risks for. 2. and is worth the investment of time. relationships. Structure. or even customers may support the existing culture. building. incorporating. and history of two firms. The founder brings in one or more other key people and creates a core group that shares a common vision with the founder. 3. In addition. and a common history begins to be built. 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. and how this plays out among the partners will be important to cultural compatibility. These factors from the two cultures include the size. the industry in which the partners come from and now reside. That is. and energy that will be required. is workable. Even through some firms have had a culture in place to anticipate change. Staffs. For example. Changing Organizational Culture Sometimes an organization determines that its culture has to be changed. if the appropriate organization culture is in place. then such rapid change can be welcomed and accommodated with as little disruption and as few problems as possible. Politics.1. locating space. management. New product development and information technology is changing so rapidly that any example would be soon out-of –date. and so on. 2. the current environmental context has undergone drastic change and either the organization must adapt to these new conditions or it may not survive. all in this core group believe that the idea is a good one. Predictable obstacles include entrenched skills. . age. the geographic location. and structures that work together to reinforce traditional cultural patterns. others are brought into the organization. Where does the power and managerial decision making really reside? Corporate cultures range from autocratic extremes to total employee empowerment. and whether products and/or services are involved. A single person (founder) has an idea for a new enterprise. At this point. obtaining patents. roles. money. The founding core group beings to act in concert to create an organization by raising funds. 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?.
3. Expect to have some problems and find people who would rather move than change with the culture and. _____are the visible manifestations of culture as seen in the physical and social environment of the organization. so that a consistent message is delivered from all management team members. Stay the course by being persistent. Emotions. 3. Move quickly and decisively to build momentum and to defuse resistance to the new culture. and patterns of daily behavior. Guidelines for change Despite the significant barriers and resistance to change.6 Summary . Simple guidelines such as the following can be helpful. 2. 1. Set realistic goals that impact on the bottom line. 6. 4. Assess the current culture. 9. Take out all trappings that remind the personnel of the previous culture. especially when making changes in rules and processes. 2. Include employees in the culture change process. take these losses early. attitudes. are particularly driven by results and are often very competitive. if possible. Make changes from the top down. These emotions will be a major input into the clash or compatibility of the two cultures. ___________are those factors that influence the course of development within an organization and its results or accomplishment. the “culture contract” that individuals have bought into to guide their day-to-day thoughts. The personal feelings. This attempt to change culture can take many different forms. so that they are able to interact well with the organizational personnel. 7. organizational cultures can be managed and changed over time. 7. 8. 3. Self Assessment Questions 1. habits. 5. ________cultures are outward looking. commitment. Recruit outside personnel with industry experience.
and strategic constituencies approach. Organizational effectiveness can be measured through various approaches.goal approach. 7. Refer section 7. effectiveness through adaptive-coping cycle has been discussed. Refer section 7. Market 3.8 Answers to SAQs and TQs SAQs: 1. 2.2 2. 7. behavioural approach. Explain the characteristics of organization culture. Causal variables Answers to TQs: 1.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . intervening variables and end-result variables and there exists interrelationship among these variables.3 3. Factors in organizational effectiveness include casual variables. Briefly explain different types of organizational culture. . Refer section 7. Effectiveness of an organization can be increased through economic man approach and administrative man approach. 3. Organizations to be successful must be efficient and effective. Artifacts 2. Discuss the development and change of organizational development.7 Terminal Questions 1. system-resource approach.Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. Finally.
5 Organizational Politics Defined and Explored 8.MU0002-Unit-08Power. power must be exercised. indisputable facts of organizational life. That criticism was essentially correct for many years although it is less valid . we examine power and politics in relation to organization development.8 Acquiring and using Power Skills Self Assessment Questions 8.4 Theories about the Sources of Social Power 8. and for change to occur in an organization. Politics and Organization Development Structure: 8.9 Summary 8.6 The Role of Power and Politics in the Practice of OD 8. As Warner Burke observes: "Organization development signifies change. In this unit.7 Operating in a Political Environment 8.” Organization development has been criticized for not taking into account power in organizations. must be understood if one is to be effective in organizations.10 Terminal Questions 8.1 Introduction Objectives 8.11 Answers to SAQs and TQs 8. Organization Development Unit-08.3 Two Faces of Power 8.2 Power Defined and Explored 8.Power.1 Introduction Politics and Power and politics. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics.
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." Analyzing these definitions shows some common elements: effectance-getting one’s way. Potential power is the capacity to do so.actions and the decisions that precede them. confiscation. the necessity of social interaction between two or more parties. humankind would not have much of the misery it does today. and outcomes favoring one party over the other.2 Power Defined and Explored "Power is the intentional influence over the beliefs. One person exerts power over another to the degree that he is able to exact compliance as desired. Without influence (power) people would have no cooperation and no society. Power-in-action may . you will be able to: · Define power and politics in organizations. · Acquire skills to handle power and politics in organizations. but kinetic power is the act of doing so. · Explain the role of power and politics in the practice of OD." “Power is the ability of those who possess power to bring about the outcomes they desire. The French word ‘pouvoir’ stands for both the noun ‘power’ and the verb ‘to be able.” “A has power over B to the extent that he can get B to do something that B would otherwise not do. spiritual. to effect outcomes." "Power is defined in this unit simply as the capacity to effect (or affect) organizational outcomes.today. · Explain theories about the sources of power. political. Without leadership (power) in medical. and repression. emotions. 8. financial. The phenomenon of power is ubiquitous. We therefore define interpersonal power as the ability to get one’s way in a social situation. humankind would not have the standard of living it does today. Without leadership (power) directed toward warfare. 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. and organizational activities. technological. Objectives: After this studying this unit.’ To have power is to be able to get desired things done. the act or ability of influencing others. and behaviours of people.
3 Two Faces of Power David McClelland proposed an important distinction when he identified "two faces of power" – positive and negative. In fact. Crushing. The negative face of power seeks to dominate and control others.take many forms. absolute power corrupts absolutely. This positive face of power enables others to reach their goals as well as lets the person exercising power reach his or her goals. unsocialized need to dominate others. We think this distinction provides a good insight into the concept of power. however. In most organizations the positive face of power is much more prevalent than the negative face of power." · French and Raven’s "Bases of Social Power. Power per se is probably neither good nor bad although Lord Acton observed that "power tends to corrupt. The positive face of power is characterized by a socialized need to initiate. It is especially salient in coordinated activities such as those found in organizations. Leading." · Mintzberg’s Observations on the Genesis of Power in Organizations. it is through the use of power that things get done in the world. both positive and negative. coercing-these are examples of negative uses of power." Her research in four organizations showed both kinds of power. 8. or positive. influence. suggests that many problems with power stem from the goals of persons with power and the means they use." · Salancik and Pfeffer’s "Strategic-Contingency Model of Power. According to him. the negative face of power is characterized by a primitive. or acquired? In this unit. influencing.4 Theories about the Sources of Social Power Power exists in virtually all social situations. forcing. being exercised. and lead. Roberts came to a similar conclusion in her study of "collective power" and "competitive power. McClelland observed that while power has a negative connotation for most people. the positive face of power seeks to empower self and others. with collective. not the possession of power as such. we will examine four different views about who gets power and how: · Emerson’s "Power-Dependence theory. Patchen studied organizational decision making and found that coercive tactics were "noticeable chiefly by their absence" while problem solving and consensus seeking were much more prevalent." A moment’s reflection. How do some people come to possess power? How is power generated. power being the predominant mode. an authority or power dimension is required. . selling. bestowed. persuading-these are examples of positive uses of power. hurting. for organizations to function. 8.
to give something valued by the other. if a person has something we want badly and we cannot get it any other place. 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. or feeling of oneness with) the power holder. that person has power over us. 3. French and Bertram Raven on "the bases of social power. Power-dependence theory is related to a broader framework of social interaction called social exchange theory." In other words. praise. 5. . The sociologist. Closely related to these ideas is the classic statement by John R. giving someone power over us is the commodity we exchange when we are dependent on that person for something we want. rejection. we will terminate or alter the relationship. Informational power is a form of expert power where the powerholder possesses important facts or information needed by the other. Expert power – power based on the powerholder possessing expert knowledge or expertise needed by the other. which posits that what goes on between persons is an exchange of social commodities: love. of social power as follows: 1. Richard Emerson states that "the dependence of Actor A upon Actor B is (1) directly proportional to A’s motivational investment in the goals mediated by B. Coercive power – power based on the ability of the powerholder to punish another. we will continue the exchange relationship. 2. blame. to give something negatively valued by the other.Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another. attraction. Social interaction represents an exchange of social goods and services. information. influence. Viewed in this light. The components of this theory are a social relation between two parties and resources (commodities. power belongs to those persons who control or mediate desired commodities. Legitimate power – power based on everyone’s belief that the powerholder has a legitimate right to exert influence and that the power-receiver has a legitimate obligation to accept the influence. and desired by the other. respect. goals. P. and so forth. When the net balance for us is positive. or bases. Reward power – power based on the ability of the powerholder to reward another. power. In this theory. when the net balance for us is negative. 4. that is." These authors suggested five sources. that is. rewards) that are controlled by one party. and (2) inversely proportional to the availability of those goals to A outside of the A-B relation. Exchange theory and power-dependence theory are quite compatible with the ideas proposed by French and Raven. hate. Referent power – power based on the power-receiver having an identification with (attraction to.
the special expertise needed for the organization’s survival-have power. the ability to solve critical problems or exigencies-anything that creates dependence of one actor or set of actors on another. "is built on the premise that organizational behavior is a power game in which various players. control of a resource. A fifth basis of power is access to those who have power based on the first four bases. like the ones discussed previously. customers. third. and through the definition of organizational problems and policies. the top executives. The resources may be ability to reward and punish. Salancik and Pfeffer further suggest how power is used: "Power is used by subunits. indeed. or departments) most important for solving the organization’s most critical problems. the five possible bases of power are. and so forth. According to Mintzberg. the managers. used by all who have it. that power-in-action requires will and skill.others-in this case. control of a technical skill. being in control of critical skills. An organization has many potential influencers. units. such as the board of directors. Henry Mintzberg has developed a theory of organizational power drawn from the organization theory literature and his own creative synthesis abilities. the influencer must have both the "will" and the "skill" to use it. All of these must be critical to the organization. second. the unions. knowledge. to enhance their own survival through control of scarce critical resources. seek to control the organization’s decisions and actions. first. . for power in the hands of the critical problem solvers helps the organization cope with the various realities it faces. through the placement of allies in key positions. supports the notion that those who have something highly valued by. 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. The important aspects of Mintzberg’s theory are that the sources of power derive from possession of a commodity desired by others. In addition to a base of power." These authors view organizational power as a good thing. or information. suppliers. and that the organization is the context for the exercise of power. the employees. control of a body of knowledge. In summary. these four views of the sources of power are remarkably similar – power stems from possession of or mediation of desired resources. This theory. called influencers. and." The three basic conditions for the exercise of power are 1) Some source or basis of power.The strategic-contingency model of power asserts that power in organizations accrues to the subunits (individuals. This theory. regulators. These critical problems are generally "uncertainties" posed by the environment.
we view politics as a subset of power. develop and use power and other resources to obtain one’s preferred outcomes in a situation in which there is uncertainty about choices”. deceiving. and predominant use of the tactics of fighting-secrecy. Analyzing these definitions suggests that the concepts of power and politics are similar. and a socialized need to lead. engaging in open problem solving followed by action and influencing. illegitimate in nature. it is engaging in activities to get one’s way. you must lose-rather than win-win terms. withholding information. but in this sense. The positive face is characterized by a balanced pursuit of self-interest and the interests of others. “Organizational politics involve intentional acts of influence to enhance or protect the selfinterest of individuals or groups”. viewing situations in win-win terms as much as possible. initiate. The first three definitions treat politics as a neutral set of activities. One important feature in these definitions should be examined further. These key areas are the battlefields where actors win and lose. We are inclined to consider politics as neither good nor bad per se but believe that politics.6 The Role of Power and Politics in the Practice OD . has two faces. the power vested in office. they are where the "goods" are distributed and the goals decided. Organizational politics tend to be associated with decision-making. The negative face of politics is characterized by extreme pursuit of self-interest. resource allocation. “Organizational politics involve those activities taken within organizations to acquire.8. Thus. one gains a quick understanding of the overall "political climate" of an organization by studying its methods of resource allocation. formal power. unsocialized needs to dominate others. treating it as informal power. Likewise we also treat authority as a subset of power. Both relate to getting one’s way-effectance. For our purposes. 8. like power. holding hidden agendas. conflict resolution. the capacity to get things done by virtue of the position held.5 Organizational Politics Defined and Explored Harold Lasswell defined “politics simply as the study of who gets what. In fact. and conflict resolution processes. a relative absence of the tactics of fighting. Both relate to pursuit of self-interest and overcoming the resistance of others. organizational politics is power-in-action in organizations. the last two definitions view politics as illegitimate or unsanctioned activities. surprise. and influence others. a tendency to view situations in win-lose terms-what I win. and how”. when. and choosing among alternative means and goals. “Organizational politics is the management of influence to obtain ends not sanctioned by the organization or to obtain ends through non-sanctioned influence means”.
problem solver. as we discussed earlier. co-operation. and educator. These values are congruent with rational problem solving and incongruent with extremely political modes of operating. catalyst. the "interventionist" has three primary tasks: (1) to generate valid useful information. and promoting individual and organizational competence are part of the foundation of organization development. "Power equalization" has long been described as one of the values of organization development. but not with the negative face of power. (2) to promote free. processes. and effective pursuit of goals while decreasing reliance on the negative faces of power and politics. Cobb and Margulies caution that OD practitioners can get into trouble if they move from a facilitator role to a political role." 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. strengths. informed choice. and by so doing adds power to the organization. Emphasis on power equalization stems from two beliefs: first. fact-finding. it is instead a rational problem-solving approach that is incompatible with extreme poweroriented situations. his or her program. all OD interventions promote problem-solving. In summary. methods. individual dignity. OD values are consistent with the positive face of power. they enhance the positive face of power. Not only is organization development not a power/political intervention strategy. This major . Values such as trust. OD interventions do not deny or attempt to abolish the reality of power in organizations. and (3) to promote the client’s internal commitment to the choices made. thereby making the negative face of power less prevalent and/or necessary. The OD consultant. like all consultants. not politics. collaboration. public data are indispensable-for problem solving but anathema for organizational politics. We know of no OD interventions designed to increase coercion or unilateral power. as a preferred way to get things accomplished. organization development represents an approach and method to enable organization members to go beyond the negative face of power and politics. openness. According to Chris Argyris. problem solving is usually superior to power coercion as a way to find solutions to problematic situations. OD interventions increase problem-solving. second.We have discussed a number of ideas concerning power and politics. and his or her values. being one aspect of the positive face of power. and expertise. public data about the organization’s culture. provides a service that the organization is free to "buy" or "not buy. The practitioner works to strengthen skills and knowledge in the organization. Virtually. 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. collaboration. The role of the OD practitioner is that of a facilitator. Valid. OD interventions typically generate valid. increases the amount of power available to organization members. For example. But organization members are free to accept or reject the practitioner. and weaknesses. rather. power equalization. The practitioner is not a political activist or power broker.
2. the OD consultant possesses power from the following bases: legitimate power (the OD program and consultant are authorized by the organization’s decision makers). These sources of influence produce a substantial power base that will enhance the likelihood of success. Michael Beer has identified additional means by which an OD group can gain and wield power in organizations: 1. expert power (the consultant possesses expert knowledge). preferably multiple sponsorship. 5. informational power (the consultant has a wealth of information about the strengths and weaknesses of the organization). followed by some rules of thumb for the OD practitioner.strength of OD derives from the strategy of change. First. 6. organization development practitioners operate from a potentially strong power base they can use to advantage. Stature and credibility: Beer notes that power accrues to those who have been successful and effective. Resource management: Power accrues to those who control resources-in this case. the technology." 4. Competence: Demonstrated competence is the most important source of power. Group support: If the OD group is strong internally. it will gain more power. and ability to gain organizational support. Success leads to credibility and stature. If the OD group is cohesive and free of internal dissention. Sponsorship: "Organization development groups will gain power to the extent that they have sponsorship."34 This maxim has been recognized for years under the heading of "get top-level support for the program. Paying attention to these sources of power will enhance the likelihood of success of OD programs. Early success in the OD program and its usefulness to key managers of the organization helps promote this reputation. and the roles of OD practitioners. and possibly referent power (others may identify with and be attracted to the consultant). 3. the resources of OD expertise and ability to help organizational subunits solve their pressing problems. According to the framework of French and Raven. in powerful places.7 Operating in a Political Environment We will present some general observations on operating in a political environment. 8. . the values. 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. it will be strong externally. acceptability.
Organizations are social systems in which members have both a history and a future of interacting. and effective conflict management techniques are required to enhance stable. coaching. 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. The following rules describe ways to avoid becoming involved in one’s own or in others’ political struggles. to help them achieve their goals and solve their problems. Sometimes OD practitioners overlook that they are hired by others. OD professionals who are skilled in conflict management techniques and OD programs that encompass conflict resolution activities become valued commodities. constructive social relationships. The OD program belongs to the manager. The nature of organizations and the nature of organization development suggest this rule. Rule Three: Make the OD program a valued commodity for multiple powerful people in the organization. Rule Five: Mind your own business. which is to help someone else solve his or her major problems. Rule Two: Make the OD program itself a desired commodity. Rule One: Become a desired commodity. OD consultants have a formal or informal contractual agreement with managers to help them do what they are trying to do-better. OD programs should be results-oriented. and showing appreciation for the strengths of others are components of interpersonal competence. Becoming a desired commodity as a person means being interpersonally competent and trustworthy. The preceding rules of thumb describe ways to increase or solidify one’s power base. Good OD practitioners will have learned and practiced these skills. . OD programs become desired commodities when they are instruments that allow individuals and organizations to reach their goals. the manager will vigorously defend it. When the OD program serves the needs of top executives. usually managers. communicating. both as a person and as a professional. The role of the OD consultant is to help others upon request. and expertise. counseling. Each is derived from one general principle: Mind your own business. experience. it gains an aura of respect and protection that sets it above most political entanglements. Another way the OD program becomes a desired commodity is by focusing on important issues.What advice is available for OD practitioners who want to operate more effectively in a political environment? Several rules of thumb are implied by the fact that power accrues to persons who control valued resources or commodities. 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. Many OD interventions promote win-win solutions for conflict situations. Rule Four: Create win-win solutions. not the OD consultant. Skills such as listening. Beer and Walton argue that organization development should move from being practitioner centered to being manager-centered. those issues vital to the organization’s success. problem solving.
Abiding by this rule keeps the consultant from becoming entangled in politics." and "going around the formal system.Rule Six: Mind your own business. Illegitimate behavior encroaches on others’ legitimate "turf. but that does not mean practitioners must be naive or incompetent in the political arena. As shown in the figure. but these give the flavor of the issues one must consider when operating in a political environment. Illegitimate behavior causes others to try to exert greater control over the situation. 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. The authors propose adding the "using social networks" strategy to their repertoires. Earlier we stated that the OD practitioner should learn as much as possible about bargaining. and educator. A subtle phenomenon is involved here: when people engage in illegitimate behavior.8 Acquiring and Using Power Skills The OD practitioner is neither power activist nor power broker." "using social networks. dealing directly with powerholders and decision makers. Networking is recognized as a potent. thereby greatly expanding practitioner influence. individual power derives from knowledge. others’ support. and using contacts for information. not by getting involved in the answers. and the characteristics and behaviors of powerholders. Three successful power strategies are "playing it straight. catalyst.1: Power Base and Power Strategy Connection Individual Power Bases Knowledge Strategies for Success Playing It Straight . and personality characteristics. yet legitimate means of acquiring power. not power activist or power broker. We could propose more rules of thumb. the strategy and tactics of influence." which arouses defensive actions. Attention to these rules can save OD practitioners time and energy that can be more profitably invested in the OD program. problem solver. not content. Rule Seven: Mind your own business because to do otherwise is to invite political trouble. which is to be an expert on process. We believe the legitimate role of the OD practitioner is that of facilitator. while at the same time increasing his or her usefulness to the organization’s powerholders. Table 8. viable. negotiations the nature of power and politics. 8." OD practitioners have typically pursued a "playing it straight" strategy as their sole means of exerting power. The principle is simple but powerful: know your legitimate business and stick to it. One carries out such a strategy by participating in alliances and coalitions. such behavior is often interpreted as politically motivated.
This practical. personal power and position power. even those of little power. then utilize a facilitative OD process in which the powerholders work on strategic business issues using consensus decision making to develop a corporate strategy. Whetton and Cameron’s model is shown in following figure. the authors propose a four-stage model for using the OD process to help the power elite transform the organization in ways beneficial for all concerned.) Position power derives from five sources: Centrality-access to information in a communication network. influence key powerholders to accept the OD program. a person’s power comes from two main sources. 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. personal attraction. criticality-how important one’s job is flexibility-the amount of discretion in the job. which in turn will protect the interests of all concerned. in turn.· 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. effort. The power structure will realize that collaborative power is preferable to manipulation and deception. (Legitimacy refers to abiding by and promoting the values of the organization. In this model. and legitimacy. how-to book on power and organization development is well worth studying. visibility-how much one’s work is seen by . Personal power. arises from expertise.
and retribution." Three things are involved in converting power into influence: (1) resisting other people’s inappropriate influence attempts. “One of the most important ways of gaining power in an organization is by establishing a broad network of task and interpersonal relationships. Retribution is not recommended except in unusual cases.influential people. (2) selecting the proper influence strategy. "Power is converted into influence when the target individual consents to behave according to the desires of the power holder. Reciprocity refers to exchange of favors. and (3) empowering others. Three influence strategies can be used to influence others-reason. no one has the necessary information and resources to accomplish what’s expected of them. They write: "Influence entails actually securing the consent of others to work with you in accomplishing an objective. 8. and reciprocity can be useful when reason fails. Retribution refers to coercion and threats. Fig. 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”. actually using it to get things done is another. and relevance-how important one’s task is in relation to organizational priorities. reciprocity. Usually reason is the preferred strategy. Having power is one thing. power-in-use is called influence. According to these authors. Indeed. Reason refers to persuasion by facts." And. Whetton and Cameron suggest . Networks are critical to effective performance for one compelling reason: Except for routine jobs.1: Model of Power and Influence Networking is used to increase both personal power and position power.
10 Terminal Questions 1. Methods for empowering others are the following: (1) involve subordinates in assigning work. _____________ has identified two faces of power. (4) express confidence (5) foster initiative and responsibility. when. Self Assessment Questions 1. and (6) build on success. Power and politics are similar in nature. –––––––––– is made up of Charisma. Our suggestions for using power to operate effectively in organizations may help practitioner avoid the perils and pitfalls of power that "go with the territory" of organizational change. Power and politics are similar in nature. –––––––– defined politics as the study of who gets what. and are amenable to positive control.several means of resisting others’ influence attempts such as confrontation and using countervailing power. (3) reward and encourage others in visible and personal ways.9 Summary Power and politics are inseparable facts of organizational life. emotions or behaviour of people. we have examined power and politics with the goals of understanding the phenomena and deriving implications for OD practitioners. collaborative work environment. arise from known conditions. Power can be either positive or negative. reputation and professional credibility. Define power in an organizational context and explain types of power. 8. Power based on the power-receiver having identification with the power holder is called ––– ––––––––.. Strategic-contingency model of power asserts that power that accrues to the individuals. units or departments is most important in solving organizational problems. 4. and are amenable to positive control. Concluding Comments: In this unit. Organizational politics is defined as the study of who gets what. 5. arise from known conditions. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics. (2) provide a positive. Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another. Organizational politics involve intentional acts of influence to enhance or protect the self-interest of individuals or groups. Organizational power is the ability of those who possess power to bring about the outcomes they desire. . –––––– is the intentional influence over the beliefs. when and how. 8. 3. 2. and how.
4 3. Define organization politics.2 2. 5. Personality Answers to TQs: 1.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . 8. Refer section 8. Explain the role of power and politics in the practice of OD.11 Answers to SAQs and TQs SAQs: 1. Harold Lasswell 5. McClelland 3. Refer section 8. Describe briefly various theories of power. Refer section 8. Identify the bases of individual power and the respective strategies for their success.1 Introduction . 3. 4.6 5. Refer section 8. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9. Referent power 4.5 4.Refer section 8.2. Power 2.
Objectives: . These methods are receiving increasing attention in Organization Development.9 Reengineering Self Assessment Questions 9.6 Quality of Work Life Projects 9. One important intervention technique is Technostructural interventions because these are related to technical and structural issues such as how to divide labour and how to coordinate department which is related to Restructuring organization. actions. An organization development intervention is a sequence of activities.7 Parallel Learning Structures 9.11 Terminal Questions 9. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design.2 Meaning and Definitions 9.Objectives 9.3 Socio Technical Systems 9.12 Answers to SAQs and TQs 9. These programs are derived from careful diagnosis. These interventions vary from standardized program that have been developed and sometimes tailored program. 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 Organizations are increasingly realizing the fact that change is the price of the survival.5 Quality Circles 9. organizational problems may repeat.4 Management By Objectives 9.8 Total Quality Management 9. Nothing is permanent except change because change is permanently changing. In this dynamic and fluid environment. events intended to help an organization improve its performance and effectiveness.10 Summary 9.
structural Interventions compare quite favorably with all other alternatives. includes removing or adding layers to hierarchy. meaning the major costs are associated with analysis and design of change. Advantages of Structural Interventions There are a number of reasons why a consultant should consider employing a structural intervention. Basic reinforcement theories. Downsizing associated with restructuring. Rapidity of change. their attractiveness is also increased by the following advantages: 1. Once diagnosed and an appropriate correction developed. Changes can involve decentralization and centralization. Organization Acceptance of Change. From a benefit cost analysis.After studying this unit. The cost of structural change is generally “front-end” loaded. · Discuss the parallel Learning Structures. 4. 3. Greater Predictability. you will be able to: · Explain the Socio technical change. and OD practice enables the change agent to estimate the probable consequences of the change. Weeks and months of group effort are saved. · Explain Total Quality Management. 9. This normally is a reasonable. Succession Doesn’t Destroy Change Effort. Managers and administrators are notoriously pragmatic. Structural changes are consistent with their operating styles and are generally understood by practitioners. One problem with behavioral/ group interventions is the tendency for new managers or employees to discount or fail to continue the change program. 5. change can be introduced relatively rapidly by top management. Cost is Low. In addition. and more . · Explain Reengineering. · Discuss the Management By Objectives · Explain the Quality Circles. 2. organization theory. Structure changes are normally “institutionalized” and less subject to this problem.2 Meaning and Definitions Structural Intervention is related to the changes that relate elements of organization to one another.
many business and nonbusiness organizations have adopted this in some form or the other. Since then. It could involve the following steps (Foster. its definitional aspect. 9. It endeavors to re-design the organization’s structure. is a technique and system which helps in improving organizational performance.4 Management by Objectives Management by objectives (MBO).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.critically. Though there are some variations in the practices of MBO and. Its basic idea has been derived from the concept of participative goal setting as a technique of OD. The term MBO was coined by Drucker in 1964 when he emphasized the concept of managing by results. though not strictly an OD intervention in the sense in which other interventions have been discussed so far. 1988): • Determining the environmental demands • Creating a vision statement • Educating organizational members • Creating the change structure • Conducting socio-technical analysis • Formulating re-design proposals · Defining the scope of the system to be re-designed · Implementing recommended changes · Evaluating changes 9. it has been defined as follows: MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. 1967. processes and functions to create a balance between the organization and its changing external environment. consciously directed towards the effective and efficient achievement of organizational objectives. Cummings.” . 1976. therefore. a predictable cost Implementation of group strategies involves significant long-term man-hour and consultant costs. Pasmore.
Resource allocation. A management technique can be applied in selected parts of the organization and will have limited implications for its other parts. Objectives in MBO provide guidelines for appropriate system and procedures. Similarly. including the corporate level. On the other hand. each manager takes active part in setting objectives for himself and also in evaluating his performance as to how he is performing. are determined on the basis of objectives. It emphasises initiative and active role by the manger who is responsible for achieving objectives. The basic emphasis of MBO is on objectives. its subsystems and people. As an approach to management. its features can be identified as follows: 1. 4.. and human resources of the organization by integrating the individual with organization and organization with the environment. MBO is also concerned with determining what these results and resources should be. superiors and subordinates. 3. Objectives are established for all the levels of the organization. operational managerial process for the effective utilization of material. It works as an integrating device. managers have the opportunities for clarifying their job relationships with peers. MBO is likely to affect every management practice in the organization. The review is future-oriented because it provides basis for planning and corrective actions. Whereas the various techniques of management help in measurement of results in resources. often MBO provides the stimulus for the introduction of new techniques of management and enhances the relevance and utility of the existing ones.The integration of individual and organizational objectives through MBO has been emphasized by Chakravarty when he has defined MBO as follows: “MBO is a result-centered. The performance review is held regularly. reward and punishment system is attached with the achievement of the objectives. 2. The total management process revolves round the objectives set jointly by the superior and the subordinate. 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. Objectives provide the means for integrating the organization with its environment. Certain degree of overlapping is there. 6. It is a particular way of thinking about management. etc.” Based on the definition of MBO. This is possible because MBO tries to match objectives and resources. delegation of authority. MBO is an approach and philosophy to management and not merely a technique. The MBO is characterized by the participation of concerned managers in objective setting and performance reviews. MBO is the joint application of a number of principles and techniques. Periodic review of performance is an important feature of MBO. MBO is bound to have some relationship with every management technique. all the units or departments and individual manager. non-specialist. In fact. Therefore. physical. with objective orientation as its essence. . 5. Therefore. normally once a year.
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.
__________ represents a participative approach to employee involvement in problem solving and productivity improvement. actions. · A major emphasis on continuous learning. Reengineering focuses on visualizing and streamlining any or all business processes in the organization. From a benefit cost analysis. 9. Sociotechnical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. · Continuous search for sources of defects with a goal of eliminating them entirely. · Participative management. or restructuring activities without regard to present hierarchical or control procedures. events intended to help an organization improve its performance and effectiveness. consciously directed towards the effective and efficient achievement of organizational objectives. structural Interventions compare quite favorably with all other alternatives. 2. There are a number of reasons why a consultant should consider employing a structural intervention. Quality . An organization development __________ is a sequence of activities. · Top management support on an ongoing basis. · An emphasis on teams and teamwork. such as cost. It seeks to make such processes more efficient by combining. Reengineering is a top-down process. quality.10 Summary An organization development intervention is a sequence of activities. actions. Self Assessment Questions 1.9 Reengineering It is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical. eliminating. 9. service. 3. contemporary measures of performance. The term MBO was coined by _________ in 1964. and speed. events intended to help an organization improve its performance and effectiveness.· Competitive benchmarking. assumes neither an upward flow of involvement nor that consensus decision making. MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner.
Intervention 2.5 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Explain Management By Objectives? 4.12 Answers to SAQs and TQS SAQs: 1. provides relevant information to all employees. 9.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. Write a short note on Total Quality Management. . Refer section 9. Refer section 9. 9. Drucker 3.2 3.11 Terminal Questions 1. Quality circle Answers to TQs: 1. Refer section 9. TQM pushes decision making power downwards in the organization. ties reward to performance and increase workers knowledge and skills through extensive training.3 2.Refer section 9. What are the advantages of structural interventions? 3. It is also called continuous quality improvement. Discuss Socio Technical Systems? 2.
In this dynamic and fluid environment. and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other.8 Terminal Questions 10.2 Nature of Change 10. organizational problems may repeat.MU0002-Unit-10-Managing Organization Development Unit-10-Managing Change in Organization Development Structure: 10.5 Impact of Change on the Future Manager 10.9 Answers to SAQs and TQs 10.6 Methods of Reducing Resistance to Change.1 Introduction Objectives 10. Hence. Nothing is permanent except change because change is permanently changing. 10.7 Summary 10.4 Causes for Resistance to Change. cope with the ongoing changes successfully in the first instance. Self Assessment Questions 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. 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. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented).
you will be able to: · Explain the meaning of organization change. 2. 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. When a finger (which represents external force) is forced against a point on the balloon (which represents the organization). However. it has stretched slightly. While managers as change agents want to bring changes in the organization. They have illustrated it by comparing an organization to an air-filled balloon. we find that the shape of the entire balloon has changed. organizational change may have the following features: 1. organizational change is the alteration of work environment in an organization. · Impact of change on future managers. some parts may be affected directly. it disturbs the old equilibrium necessitating the development of a new equilibrium. However. However. indirectly. Thus. less. When change occurs in any part of the organization. Any change may effect the whole organization. structural arrangement. 3. and others. Organizational change is a continuous process. the contour of the balloon visibly changes. Though this phenomenon will be taken later. Thus. . job design and people. some parts of organization may be affected more. It implies a new equilibrium between different components of the organization – technology. employees want to maintain a status quo. · Discuss the nature of change · Explain resistance to change and the factors which resist change.whether physical. the change in organization does not occur purely on mechanical relationship. 10.2 Nature of Change The term ‘change’ refers to an alteration in a system. which are major ones. may require special change efforts. they have concluded that the whole organization tends to be affected by change in any part of it. and others. Thus. it becomes indented at the point of contact. others. Newstrom and Davis have explained the impact of a change in any part of the organization on the total organization. biological. if we look minutely. The type of new equilibrium depends on the degree of change and its impact on the organization. · State the methods of reducing resistance to change. some changes which are of minor type may be absorbed by the existing equilibrium. or social.After studying this unit.
resistance to change is costly affair. and on the other. commented. If people resist to change. let us discuss whether resistance is always bad as it is generally perceived to be. like shifting of the manufacturing plants at new locations. the organizational may not be able to introduce new phenomena in order to adapt environmental requirement. Resistance to change forces management to find out this reality which helps in managing change more effectively. One example of Bajaj Auto Limited is relevant here. In fact. Madhur Bajaj. because it produces identical symptoms. This leads to general proposition that people and their social systems will often resist change in organizations. Before we trace out the reasons for résistance to change. people act to establish a steady state of need fulfillment and to secure themselves from disturbance of that balance. fear of change can be as significantly disrupting as change itself. In order to increase its manufacturing capacity of two-wheelers. but when a change is major or unusual. People tend to resist many types of changes because new habits or sacrifices are required. there are two sides of resistance.” Resistance as Benefit: On the one hand. Thus. Resistance as Cost: Since all changes have some cost. While on negative side. Similarly. adjustment is fairly routine. Homeostasis implies self-correcting characteristics of organism to maintain equilibrium as a result of change. We shall take new workers at the new place. In fact. and its basic survival may be jeopardized. the reality lies in between. many organizations have been forced to abandon change programmes because of resistance to such programmes. Managing Director of Bajaj Auto. In fact. Many companies have been forced to do so in the past. 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.as cost and as benefit.3 Resistance to Change In the management of change effectively. or they have been forced to adopt alternative strategies. “The Pune plant is fully saturated. We wanted a new culture and new layout. that is. it provides some benefits to the organization as its change agent. the managers face the problem of resistance to change. resistance to change provides help in managing change in two ways: . We saw resistance to change at the existing plant. When change is minor and within the scope of correcting programme. 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. On this phenomenon. so is the resistance to change.10. social systems tend to resist change because of homeostasis. more serious upsets may occur.
Psychological Factors . Degree of force in resistance depends on how people feel about change. it attracted a lot of resistance because of this reason. etc. Skill Obsolescence: A change is generally meant for better methods of working which may involve new techniques. psychological and social. It also highlights real inadequacies in the proposed change and suggests better ways for developing and introducing changes. Factors in Resistance to Change People tend to evaluate the effect of change individually but they express it through group in collective form. People may perceive that they will be adversely affected by the change in terms of their needs satisfaction in the following ways: 1. These feeling may be based either on reality or there may be emotional feeling towards the change.1. etc. they simply resist such a change. they will have lower opportunity to earn incentives and bonus as the new system requires additional skills. job security etc. may be seen in the context of three types of factors: economic. All these are well-established in the old system. Economic Factors People feel attached to the organization for satisfying their needs and economic needsphysiological. When computer was introduced in the business sector in India. This feeling is created because people feel that those who can match the new requirements will be better off than those who cannot match. whenever people sense that new machinery (change) poses a threat of replacing or degrading them. 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. It may signal the need for more effective communication about the meaning and purpose of a change or need to rethink precisely how a proposed change will affect the organization and its members.. These feelings. and turn into technological unemployment. either real or emotional. 2. Reduced Opportunities for Incentives: Employees are generally offered incentives linked to their output in the form of incentive schemes. 2. precede over other needs. 3. technology. Therefore. bonus. Whenever there is change. reduce job options. people may feel that in the new system. Fear of Economic Loss: A change may create fear of economic loss in the sense that it may affect economic compensation adversely.
When there is any change. Ego Defensiveness: A change may affect the ego of the people affected by the change and in order to defend their ego. . Thus. Lack of Trust in Change Agent: The effect of change is perceived in the context of change agent. people may differ. their existing social interactions are likely to be changed. 3. 4. these people resist any new idea. Major psychological factors responsible for resistance are: ego defensiveness. Fear of Unknown: A change may be perceived as entering into unchartered area which is unknown. sentiments and attitudes towards change. Desire to Maintain Existing Social Interaction: People desire to maintain existing social interaction since it is a satisfying one. 1. particularly social needs. A change in itself suggests that everything is not right at a particular level.e. Therefore. therefore. Therefore. 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. people resist it. Status Quo: People want status quo. which people do not want. people resist change. low tolerance for change. Some people have very low level of tolerance for change and ambiguity as compared to others.Psychological factors are based on people’s emotions. Therefore. The major factors causing resistance to change are: desire to retain existing social interaction and feeling of outside interference. the change may be perceived as an instrument for exposing the weakness of the people. everyone tries to avoid it. the person who initiates change. They form their own social groups at the work place for the satisfaction of their social needs. If people have low degree of confidence in the change agent. may be logical from people’s point of view but may be illogical from the change agent’s point of view. i. 2. To the extent the satisfaction of these needs is affected by a change. status quo. that is. they resist change. they do not want any disturbance in their existing equilibrium of life and work pattern. The lack of adequate information about the likely impact of change further complicates the problems. The change will bring results in future. This lack of certainty creates anxiety and stress in the minds of people and they want to avoid it. 1. The change initiated by the organization disturbs such equilibrium and people have to obtain another equilibrium which is a painful exercise. and fear of unknown. 5. which is always uncertain. they show resistance to change efforts. These are qualitative and. Social Factors People derive need satisfaction. lack of trust in change agent. Low Tolerance for Change: In the context of maintaining status quo. through their mutual compatible interactions.
Stability of Systems: The organization may design a system through which it may derive many benefits. and inter-organizational agreement. an organization has to adapt to its environment but the adaptation has its own cost. change initiated by managers affecting workers. the organization may not bring it easily because it is accustomed to a particular system. resource limitations. 2. a bureaucratic organization has certain fixed rules. millstones and routines. This is the reason why many old industrial houses are languishing far behind and their places are being taken away by newer organizations. Feeling of Outside Interference: A change brought about by the change agent is considered to be interference in the working of people. these organizations start falling. Digital Equipment Corporation. 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. sunk cost. All these work in some circumstances. resources and processes of the most successful companies have in the past ossified into clichés. Counting Past Successes: A major problem before the organizations which have past success stories is how to face challenges of the changing environment. The major reasons for organizational failure to change are: counting past successes. nothing fails as spectacularly as spectacular success. Caterpillar. For example.2. has commented as follows: “Nothing fails like success. 1.. first two reasons are basic and others are by-products of the first two. Many powerful organizations of the past have failed to change and they have developed into routines.” This statement suggests that organizations tend to stabilize at a particular level and if the change efforts are not brought. Since these organizations have achieved success by following a particular set of management practices. Sumantra Ghoshal. 3.g. The system is stabilized and any change may be perceived as a threat by the organization itself. dogmas. For example. even the organization itself resists many changes because of certain reasons. and institutes reward and punishment system. Zerox or nearer home-TI cycles. all these companies have been victims of corporate disease. For example. Some of these reasons are basic while others are by-products of those. a professor of strategic leadership who is considered to be a management Guru. e. Many organizations are designed to be innovation-resisting. It a change is required in these aspects. This phenomenon is heightened if the change agent belongs to another social class. prescribes rigid authority relationships. values. If the organization is not fully equipped for meeting such demands. if new . Resource Limitations: No doubt. Organizational Resistance to Change: Not only individuals and groups within an organization resist change. stability of systems. For example. Whether it is IBM. It is called ‘The Failure of Success’. they become too rigid to change and they hide their failure to change in the guise of past successes. it may not be possible for the organization to bring necessary change. Strategies.
Thus. Once the assets are acquired.defenders. 5. if the change is required. the organization may enter into agreement with labour union about not bringing any technological change. This can be in the form of people also. analyzers. Analyzers: Above two are the extreme cases of choice-making modes in between the analyzers and reactors. Sunk Cost: Most of the organizations have sunk cost involved in various assets. and reactors. and has zeal for progress. 2. It an individual is not making commensurate contribution. the organization has to take into consideration the wishes of other organizations too. innovative. If it is risk-taking. and reserve some resources unutilized for future use. decentralized controls. centralized control. broad environmental scanning. those who wonder what happened. and put less emphasis on environmental scanning. it may enter into agreement with other organizations over certain aspects of working. Reactors: These organizations realize that their specific environment is changing but fail to relate themselves with the changing environment. forward-looking. Otherwise. It is necessary too that other organizations also agree to the change proposal. Prospectors: These firms use broad planning approaches. Let us see what someone has said long back: “There are three types of companies: those who make things happen. 4. 1. 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. Therefore. the organization may take change programmes much more frequently. if any change is to be incorporated. they have to behave in one of the above three ways. Based on the aggressiveness which various companies show in changing themselves.technology is adopted. Miles and Snow have classified them into four categories. it will require resources to procure machine. they cannot survive. and commensurate expenses on other items also. organization has to pay for his services though these may not be as useful. Now. In such a case. In this interaction process. building and training for its personnel. They go on searching new products/markets on regular basis. Inter-organizational Agreements: The organization interacts with its environment. They emphasize more on cost-effectiveness. Defenders: These are the firms which penetrate in a narrow market product domain and guard it. 4. 3. intensive planning.” This is the true reflection of difference between change-initiating companies and changeresisting companies. It depends more on the style of top management. those who watch things happen. prospectors. Analyzers act sometimes as defenders and sometimes as prospectors. what will happen to these assets? Naturally. it is not necessary that his services are done away with. these can be used for specific period. For example. . Sunk cost cannot be only in terms of various physical things.
develop a negative attitude towards quality management or behave dysfunctionally if required to use statistical techniques. So when your department is moved to a new office building across town. For example. Training . It is easiest for management to deal with resistance when it is overt and immediate. the selection process systematically selects certain people in and certain people out. Organizational resistance Structural Inertia: Organizations have built-in mechanisms to produce stability.10. we’ve categorized them by individual and organizational sources. For instance. you find a single route and you use it regularly. or programmed responses. Security: People who have a high need for security are likely to resist change because it threatens their feeling of safety. To cope with this complexity. Economic Factors: Another source of individual resistance is concern that changes will lower one’s income. we all rely on habits. When we are confronted with change. or deferred. engaging in a work showdown. taking a new set of streets to work.4 Cause for Resistance to Change Resistance to change doesn’t necessarily surface in standardized ways. If for example. this tendency to respond in our accustomed ways becomes a source of resistance. As human beings. therefore. When Boeing announces its laying off 10. For analytical purpose. And people in general don’t like the unknown. developing a new lunchtime routine. Habit Every day. Let’s look at the sources of resistance. especially when pay is closely tied to productivity. a change is proposed and employees quickly respond by voicing complaints. we’re creatures of habit. threatening to go on strike. 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. adjusting to the new office layout. do you continually use the same route and streets? Probably if you’re like most people. the introduction of a quality management program requires that production workers learn statistical process control techniques. when you go to work or school. The same applies to employee. we don’t need to consider the full range of options for the hundreds of decisions we have to make every day. many employees at these firms may fear that their jobs are in jeopardy. They may. Life is complex enough. Resistance can be overt. implicit. immediate. or the like. finding a new parking place.000 people or Ford introduces new robotic equipment. Fear of the Unknown: Change substitute ambiguity and uncertainty for the known. it means you’re likely to have to change many habits: waking up 10 minutes earlier. and so on. some may fear they’ll be unable to do so.
5 Impact of Change on Future Manager Organizations are changing nearly daily. the change in technology is not likely to be accepted. . But if union norms dictate resisting any unilateral change made by management.and other socialization techniques reinforce specific role requirements and skills. 10. That is. For example. Group Inertia: Even if individuals want to change their behavior. accountants work with marketers. 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. Threat to Established Resource Allocations: the groups in the organization that control sizable resources often see change as a threat. These teams are comprised of people from various areas within the company. Threat to Expertise: Changes in organizational patterns may threaten the expertise of specialized groups. An individual union member. development of pay plans. human resource people with engineers and finance individuals with operations employees. The recent move by some companies to outsource many of their human resource activities – such as training. and benefits administration – has been resisted by many human resource departments. for instance. The only constant in organizational life today appears to be the presence of continuous change. rules and procedures for employees to follow. he’s likely to resist. Changing Skill Sets More organizations are utilizing cross functional teams. Limited Focus of Change: Organization is made up of interdependent subsystems. may be willing to accept changes in his job suggested by management. Why? Because this outsourcing is a threat to the specialized skills held by people in HR departments. Formalization provides job description. if management changes the technological processes without simultaneously modifying the organization’s structure to match. 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. For example. for instance. They tend to be content with the way things are. Will the change. group norms may act as a constraint. Thereat to Established Power Relationships: Any redistribution of decision-making authority can threaten long-established power relationship within the organization. One area of organizations that continues its metamorphosis is the design itself. So limited changes in subsystems tend to get nullified by the larger system. the way in which companies are configured today is changing. People from one functional department are placed on terms with people from other functional areas. You can’t change one without affecting the others.
Efforts at Individual Level A change is likely to affect some people in some way. In many cases. the problems can be solved at the same level. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. the role of formal authority in implementing a change may not be effective all the times.6 Methods of Reducing Resistance to Change One of the basic problems in managing change is to overcome people’s resistance to change successfully. managers must be more skilled at reading the environment and grasping the big picture. Problem solving now involves the people who are experts in the issue – not necessarily those in high positions in the organization. More fluid structures require that managers improve their strategic orientation. even the impact of change may be dysfunctional if change is imposed upon the people by the use of formal authority. the following efforts can be taken: 1. In addition. 10.” The newer organizational structures use term problem solving. Unless this problem is overcome properly. They need to be adept at reading the trends in the environment and then determining what they mean specifically for their own organization. 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. This requires that managers think differently and teach employees to think differently. typically by way of computer network links. For example. that is. Locavini observes that “the secret of real success is effective management of the emotional vulnerability that accompanies organizational change. both at the formal and informal levels.The ultimate goal is to improve organizational performance by cutting production time or time to market. When the resistance comes from the people at individual levels. it can make effectively by managing resistance effectively.” Problem of overcoming resistance to change can be handled at two levels. through group dynamics. As organizations must be better equipped to respond to change in their external environment. this is not a one-time action. For this purpose. Stephen Robbins suggests that “…… managers in virtual structures spend most of their time coordinating and controlling external relations. It may affect only a few while others may not be affected. Involvement: Involvement is a process through which those who are affected by the change are brought to understand the change. rather should be looked upon as a dialogue which continues over a period of time. It implies explanation and . at the level of individual and at the level of group. strategic directions for the company must be identified in light of these changes. However. Therefore. the effect of the change may not be as functional as envisaged by the management.
Training and Psychological Counseling: The management can change the basic values of the people by training and psychological counseling. It grows slowly along with relationship. 4. Though each person interprets the change individually often. However. the manager can form strategies for overcoming resistance in the following manner: . to become effective. Efforts at Group Level Although agreement to a change can be obtained individually. instead of solving the problem at the individual level. It includes finding out from the members how they interpret the proposed changes and what they think about them. As this process goes. but a transformational leader can use personal reasons for change without arousing resistance. the leader tries to overcome this resistance by leadership process. and conferences. People should be educated to become familiar with change. meetings. However. the level of resistance to change tends to decrease. it is desirable at the group level to get better acceptability of change. getting a man to commit himself in private to change programme may yield fewer results than if he voluntarily and publicly gives his commitment to an idea of change. as discussed earlier. Obtaining Commitment: Commitment is an agreement to take an active part in the actual mechanics of the change. Group dynamics offers some basic help in this regard. sometimes. The decision to commit oneself is a dynamic process. and indoctrinated in new relationships. its basic nature. Commitment to take part in the change programme can be obtained in private from each individual. An effective leader tries to time a change to fit the psychological needs of his followers. This helps in creating receptive environment in the organization. For using group as a means of overcoming resistance to change. Usually. helped to change attitudes. more than one person is involved in the change. so that they are looked at and evaluated. The fundamental idea in this process is to encourage the person to say something about any aspect of the change. either the subordinates do not resist or if they resist. he expresses it through a group. 3.then discussion of the proposed changes. understanding of change increases and personal involvement in the change increases. People always have some ideas and opinions about what is going on in the world and more specially if touches them personally. Based on these characteristics of group as a means of change. Such educational process can be aided by training classes. Thus. Leadership: The role of leadership in getting acceptance for a change is very important as a capable leader reinforces a climate of psychological support for change. is an important trust-building task. its process and working. A manager as weak leader presents change on the basis of the impersonal requirements of the situation. 2. must be understood so that its effective use can be made. most of the times. Getting opinions out in the open. They must be taught new skills. education must be a part of the manager’s everyday activity on the job. Thus. it is more meaningful if it is done through group.
and how members contribute. The laboratory method provides a setting where group processes can be studied intensively. (iii) Group can get at the basic problem very rapidly as compared to a single individual. . 2. and sensitivity or T-group training. It makes people feel that the organization needs their opinions and ideas and is unwilling to go ahead without taking them into account. Those people who are directly affected by the change should be given opportunity to participate in that change before the final decisions are reached. one can communicate with more people per unit of time. They must be made a party to the change rather than an agent for resistance to change. It would be prudent for management to take labour representatives into confidence before implementing any change. Even if only some of the members are affected by the change. The same is true of problem-solving. and how the benefits of the meaningful and continuous dialogue are necessary. __________ are based on people’s emotions. (ii) In group. Such training techniques include role playing. Research studies also support this aspect. _________ is the alteration of work environment in an organization. The group contact offers some specific advantages: (i) Through groups. psychodrama.such aspects as the reasons for change. The organization must regard the participation as meaningful and share the results of the change with its members. Free flow of information helps people to understand the real picture of the change and many misunderstandings may be avoided. This is more important in the case of workers who themselves treat a separate group and do not identify with the management. Through the group contact. Group Contact: Any effect to change is likely to succeed if the group accepts that change. structural arrangement. It implies a new equilibrium between different components of the organization – technology. many things about change can be made clear. benefits of change. there may be some person who may communicate to the same group. sentiments and attitudes towards change. Participation: Participation helps to give people involved in the organizational change and inculcate a feeling of importance. 3. However. _________ helps to give people involved in the organizational change and inculcate a feeling of importance. Self Assessment Questions 1. Such training techniques provide understanding of behaviour. the group itself should be the point of contact. Group Dynamics Training for Change: Group dynamics also helps in providing various training programmes for accepting and implementing change. thereby the people can build up the climate based on mutual trust and understanding which are essential for bringing organizational changes successfully. 2. job design and people. mere participation may not help. For this purpose. taking whole of the group into confidence helps in maintaining a cooperative attitude. 3. It purports how the results are.1.
Organizational change is the alteration of work environment in an organization. immediate.10.4 3. or deferred.2 2. threatening to go on strike. Explain the nature of change? 2. Reference: . through group dynamics. engaging in a work showdown. It implies a new equilibrium between different components of the organization. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. or the like.6. Why do organizations resist change? 3.8 Terminal Questions 1. It is easiest for management to deal with resistance when it is overt and immediate. People tend to resist many types of changes because new habits or sacrifices are required.9 Answers to SAQs and TQS SAQs: 1. Psychological factors 3. implicit. psychological factors. Refer section 10. Economic factors. Refer section 10.7 Summary Change is inevitable. that is. 10. Discuss the methods of reducing resistance to change. Organizational change 2. For instance. at the level of individual and at the level of group. social factors. both at the formal and informal levels. 10. a change is proposed and employees quickly respond by voicing complaints. Problem of overcoming resistance to change can be handled at two levels. Changes may be influenced by external and internal factors. Refer section 10. group resistance and vested interests. Participation Answers to TQs: 1. Resistance can be overt.
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