MU0002-Unit-01-Introduction to Management

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

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

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

All these resources are made available to those who manage. They must motivate the subordinates for the accomplishment of the tasks assigned to them. And poor management is most often due to both inefficiency and ineffectiveness or to effectiveness achieved through inefficiency. the process of management involves decision-making and putting of decisions into practice. These factors do not by themselves ensure production. It is the force which assembles and integrates other resources. Managers apply knowledge. Economic Resource: Management is one of the factors of production together with land. It is imperative that the organizational goals must be well-defined and properly understood by the mangers at various levels. labour and capital. 1. . they require the catalyst of management to produce goods and services required by the society. One may not see with the naked eyes the functioning of management but its results are apparently known. Thus. buoyant spirit and adequate work output. Goal-oriented: Management is a purposeful activity. Results through Others: The managers cannot do everything themselves. These functions are so interwoven that it is not possible to lay down exactly the sequence of various functions or their relative significance. Intangible Force: Management has been called an unseen force. Integrative Force: The essence of management is integration of human and other resources to achieve the desired objectives.course. It is the most critical input in the success of any organized group activity. namely. directing and controlling. Distinct Process: Management is a distinct process consisting of such functions as planning. 3. People often remark of the effectiveness (or ineffectiveness) of management on the basis of the end results. organizing. informed employees. It co-ordinates the efforts of workers to achieve the goals of the organization. 5.3 Characteristics of Management Management is a distinct activity having the following salient features or characteristics: 1. capital and materials. 4. 2. Thus. management is an essential ingredient of an organization. although they can’t observe it during operation. labour. Its presence is evidenced by the result of its efforts-orderliness. high efficiency is associated more typically with high effectiveness. They must have the necessary ability and skills to get work accomplished through the efforts of others. 6. staffing. In essence. The success of management is measured by the extent to which the organizational goals are achieved. feeling of management is result-oriented. experience and management principles for getting the results from the workers by the use of non-human resources. Managers also seek to harmonize the individuals’ goals with the organizational goals for the smooth working of the organization.

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

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

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

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

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

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

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

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

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

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

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

Lower level managers require and use a greater degree of technical skill and managers at higher levels use a greater degree of conceptual skill.9 Terminal Questions 1.government offices. organisations.10 Answers to SAQs and TQs SAQs: 1. 1. Management 2. Discuss the importance of management. materials. There are three levels of management-top. 3. 1. Explain its characteristics. 2.8 Summary Management is concerned with getting things done through other people. ___________. 1. Money. Bring out the difference between Administration and Management. motivating and controlling the efforts of others towards a specific objective. machinery and methods or ways of doing things) depends to a great extent on the quality of management. middle and lower. counseling and effective leadership. 3. It is the management which transforms physical resources of an organization into productive resources. 2. Management creates ________ and motivates employees to work harder and better by providing necessary guidance. manpower 3. Management is largely found at the middle and lower levels and administration is found at the higher levels. Five M’s of management (________. __________is principally the task of planning. co-ordinating. Still management is not completely a profession. public organisations sector and non-business private sector. Define management. Managers perform different roles to discharge their responsibilities. teamwork . _________. Human skills are important at all managerial levels. Self Assessment Questions in the 1.

1. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.3 Planning 2.2 Process of Management 2.Answers to TQs: 1. Refer section 1.5 Staffing 2.6 Directing 2.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .8 Summary 2.10 Answers to SAQs and TQs .1 Introduction Objectives 2.7 Motivating Self Assessment Questions 2.4 Organizing 2.3 2. Refer section 1.5 3. Refer section 1.2.9 Terminal Questions 2.

Even . It is difficult to say where objectives end and policies begin. Commanding 4. as the action of measuring a quantity on a regular basis and of adjusting some initial plan. Motivating. Staffing. Objectives: After this studying this unit. the two are not quite the same. management functions have been regrouped into four categories. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent. You might well ask what the need for a policy is when objectives are already defined. · Explain Planning. 2. Directing. One can also think of management functionally. Management is about accomplishing a goal efficiently. in recent time. Planning 2.1 Introduction Follett (1933) defined management as "the art of getting things done through people”. Policy Formulation We have noted earlier that all organizations have well-defined goals and objectives. Through leadership and management often overlap. · Explain different functions of management Process. Coordinating 5. Organizing. leadership is doing the right things“. Organizing 3.2. 1949): 1. you will be able to: · Define Management process. leadership is about setting the desirable goals. There is a degree of overlap between the two. Management functions are as follows (Fayol. Controlling However.2 Management Process Peter Drucker said: “Management is doing things right.

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

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

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

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

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

induction. selection. 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. Direction is an important managerial function. Through direction. identifying the manpower requirements. 8. Personnel policies and programs must be formulated as guides to perform the staffing function effectively.e. 7. how to do and telling them to do to the best of their ability. It is an important managerial function. Direction function is performed at every level of management. Thus staffing is an ongoing process through – out the life of an organization. vacancies arise out of retirement. 3. . overseeing and leading people. It is a continuing function. etc. 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”. 2. 2. recruitment. 6.5. It is a continuous function: With the growth and expansion of business additional manpower is needed. training development and maintenance of personnel. Definition According to Koontz and O’Donnel. Present positions must be filled keeping in mind the future requirements. lead them and guide them on a continuous basis.6 Directing Direction is one of the functions of management. Characteristics of Direction The characteristic features of direction are as follow: 1. It deals with future requirements: Staffing deals with current and future personnel requirements. motivate them. It is instructing people as to what to do. Direction is the managerial function of guiding. resignation. A manger needs to give orders to his subordinates. Direction is continuous process and it continues throughout the life-time of the organization. It is a process: it is a process having a logical sequence i. management initiates actions in the organization. promotion. Thus staffing deals with the future requirements also.

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

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

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

9 Terminal Questions 1. 2.6 Copyright © 2009 SMU Powered by Sikkim Manipal University . What is planning? 2. Reference 2.3 2. Staffing Answers to TQs: 1. Write a short not on directing.10 Answers to SAQs and TQs SAQs: 1.1 Introduction Objectives .2. Reference 2. Follett 2. Explain Staffing in detail 3. SWOT 3. Reference 2. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3.5 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.

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

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

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

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

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

This Organization Development progrmmes.6 OD and Management Development . (j) To improve effectiveness of the organization. 3. 3.(c) The interventions are directed towards problem-solving and improved functioning for the client system. (b) To supplement the authority associated with role or status. (g) To increase the sense of ‘ownership’ or organization’s objectives throughout the work force. should begin with a clear-cut statement of specific objectives and criteria for determining if these objectives have been met from the stand point of the employee/employees simply as team member or for the total group. (c) To locate decision making and problem-solving responsibilities as close to sources of information as possible. problem solving climate throughout an organization. like other normative re-educative programmes. (f) To develop a reward system which recognizes both the achievement of the organization’s goals (profit or service) and development of people. (h) To help managers to manage according to relevant objectives rather than according to past practices or according to objectives which do not make sense for one’s area of responsibility. and (d) The interventions are based on behavioural science theory and technology. We need to examine carefully the techniques of Organization Development. its underlying theory and assumptions and some of the pitfall and challenges in attempting to improve organizations through behavioural science. (i) To increase self-control and self-direction for people within the organization. (d) To build trust among persons and groups throughout an organization. with the authority of knowledge and competence. (e) To make competition more relevant to work goals and to maximize collaborative efforts.5 Goals of Organization Development Following are the generally accepted goals of OD: (a) To create an open.

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

OD can be utilized for the following results in the organization: 1. 2.7 Role of Organization Development Organization development. To increase the level of enthusiasms and personal satisfaction at all levels of the organization. OD became quite successful with many professional consultants offering high services and programmes to various organizations. Research studies have also failed to conclude . 3. Much of the enthusiasm created at the beginning of OD programmes vanished over the period of time. 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. 5. 3. By 70s. Thus. To create an environment in which authority of assigned role is augmented by authority based on knowledge and skills. Since OD attempts to bring comprehensive change in the organization. 4. To place emphasis on humanistic values and goals consistent with these vales. however. it is quite suitable for improving organizational performance on long-term basis. has invited sharp criticism as a strategy to increase organizational viability and effectiveness because many OD programmes have failed. substantial disenchantment with OD became evident because of many controversial OD techniques like sensitivity training. however. To increase the openness of communications in all directions-vertically. confrontation techniques. Problem-solving approach. plays key role in organizational improvement. etc. 6.Approach Time Educative and training Short-range. Long-range strategy for organizational innovation and renewal. In early 60s. To increase the level of self and group responsibility in planning and its implementation. Trained specialists required. 7. 3. Specialist No special requirement. and laterally.8 Problems in Organization Development Organization development. To increase the level of trust and mutual emotional support among all organization members. To treat each human being as a complex person with a complex set of needs important in his work and his life. as a long-term strategy for organizational change. horizontally.

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

State the various roles of OD. Tom Peters 3. OD focuses on culture and processes. What are the problems involved in the implementation of OD? 3. OD is the ultimate remedy for organizational improvements and developments. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. The participative. Empowerment . Organization development should be led and supported by –––––––. Management development aims at developing the managers individually. Explain the various characteristics of OD. 3. _____________is a short-term strategy. Who is associated with the “Learning Organizations”? 5. ––––––––– is a process which includes leadership behaviours and human resource practices. ––––––– is associated with “Liberation Management”. 3. Define OD. 3. Distinguish between ‘organizational development’ and ‘management development’.Self Assessment Questions 1. There is no ‘quick fix’ to organizations’ problems. 4.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. problem-focused ‘nature of OD’ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. 2. Explain its salient features. 2. collaborative. 3. 4.11 Answers to SAQs and TQs SAQs: 1. Top management 2. But OD aims at changing the entire organizational climate where the managers work. 5.10 Terminal Questions 1.

2 Survey Feedback 4.7 5. Refer section 3.6 4.3 3.Organization Development – Interventions Unit-04. Refer section 3. Peter Senge 5.1 Introduction Objectives 4.3 Process Consultation 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 2.4.5 Leadership Development 4. Refer section 3.Organization Development – Interventions Structure: 4. MU0002-Unit-04. Management development Answers to TQs: 1.4 Grid Training 4. Refer section 3.6 Team-building . Refer section 3.

survey feedback. various consultants and practitioners have different opinions about the activities which can be included in interventions.11 Terminal Questions 4. work group. and organizational culture. inter-group activities.8 Change Agents 4. A meaningful classification of OD interventions may be based on the improvement in the behaviour of people in the organization as OD is basically a behavioural approach. 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. mediation and negotiation activities. 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. and organizational level. Therefore. the classification of OD interventions shows variation.12 Answers to SAQs and TQs 4. French and Bell have defined OD intervention as: “Sets of structured activities in which selected organizational units (target groups or individuals) engage with a task or a sequence of tasks where the task goals are related directly or indirectly to organizational improvement. the classification appears to be more relevant because it may specify the . For example.7 Inter Group Development 4.1 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.10 Summary 4. education and training.4. techno-structural activities. group level. they make things happen. inter-group level. Thus. Interventions constitute the action thrust of organization development. many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others. French and Bell have suggested twelve families of OD interventions: diagnostic. process consultation.” There are various OD interventions and they are classified in different ways. team-building. Nevertheless. However. management grid.9 Role of Change Agents Self Assessment Questions 4. Further. interventions may be required to change people at all these levels. interpersonal level. People’s behaviour may be relevant to understand at individual level.

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

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

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

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

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

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

At this stage. The . and begin to turn their attention to the group tasks. team members start settling. interaction among team members is often cautious especially when they are new to one another. Performing: When team members interact among themselves on the basis of norms that have emerged in the team.team-work. These stages are: forming. The team begins to move in a co-operative fashion and a tentative balance among competing forces too is struck. 2. group norms emerge to guide individual behaviour which form the basis for co-operative feelings and behaviour among members. they do represent a broad pattern that may be observed and predicted in many settings across team’s time together. Life Cycle of a Team When a number of individuals begin to work at interdependent jobs. members start interaction among themselves in the form of competing for status. because of individual differences. and adjourning as shown below: Fig. they often pass through several stages as they learn to work together as a team. jockeying for relative control. 4.1: Life Cycle of a Team Though these are not followed rigidly. they learn to handle complex problems that come before the team. different members may experience varying degree of tension and anxiety out of this interaction pattern. even the most successful teams as they have completed their mission. Forming: At the first stage of the life cycle. 5. 4. At this stage. each team has to be adjourned. Sooner or later. and arguing for appropriate strategies to be adopted for achieving team’s goals. norming. Storming: After the forming stage which is mostly related to perceiving and assessing each other. Adjourning: Adjourning is the end phase of cycle of a team. storming. start to accept others. 3. 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. Norming: After storming stage. These typical stages of life cycle of a team are described below: 1. and features of effective team so that team-building exercises focus more sharply on developing effective team. team members get introduced to each other if they have not interacted earlier. performing. Functional roles are performed and exchanged as needed. They share personal information. and tasks are accompanied efficiently.

adjournment phase takes place in the case of those teams which are created for some special purposes like task force. For example. intense social relationship among members comes to an end. that is.” Thus. The concept of synergy is quite popular in strategic management and it is defined as follows: “Synergy is the process of putting two or more elements together to achieve a sum total greater than the sum total of individual elements separately. This effect can be described as 2+2=5 effect. team-work does not necessarily spurt group efforts. A simple phenomenon of social loafing may be observed in a group assignment to students during their study. the team would be effective. Synergy in Team-work Another important feature of a team is the concept of synergy which generates in team-work and the understanding of which helps in developing effective team. 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. other factors remaining the same. 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. how a particular element affects another and is affected by it. etc. fail to perform their assigned tasks. 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. To the extent. students find that one or two students do not put their weight for the completion of the project. a team is created to undertake a task which requires a variety of skills and single individual cannot perform that task alone. . After the adjournment of the team. They rely on the fact the more reliable members will complete the project without their help. This phenomenon may happen in teams in work organizations too. In fact. 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. synergistic effect is not automatic but depends on the complementarity of different elements that are put together and the way they interact among themselves. and so on. Putting the concept of synergy in teamwork means members of the team are complementary to each other and they contribute positively to one another. the complementarity among members is achieved. in one experiment. committee. 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. 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.

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

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

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

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

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

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

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

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

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

8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Data collection 2.2 Definitions and .6 4.12 Answers to SAQs and TQs SAQs: 1. Beliefs in Organization Development Unit-05-Values. MU0002-Unit-05-Values.2 3. 3.4 2. Explain Change agents and discuss the role of change agents in detail. Refer section 4. 4. Assumptions. What is team-building? What are the stages of life cycle of a team? 4. Blake and Mouton. Refer section 4.3. Refer section 4. Social loafing Answers to TQs: 1. Assumptions. Refer section 4. and Beliefs in Organization Development Structure: 5.1 Introduction Objectives 5.

6 Summary Self Assessment Questions 5. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers. . 5. and beliefs constitutes an integral part of organization development. it is a cognitive fact for the person. and they continue to evolve as the field itself evolves. · List the chronology of events of values.3 Implications for Designing and Running Organizations 5.2 Implications for Dealing with Groups 5. shaping the goals and methods of the field and distinguishing OD from other improvement strategies. beliefs and assumptions.1 Implications for Dealing with Individuals 5.4 Early Statements of OD Values and Assumptions 5. beliefs and assumptions. · State the implications of OD values and assumptions. · Give the statement of OD values and assumptions.2 Definitions A belief is a proposition about how the world works that the individual accepts as true. you will be able to: · Explain the meaning of values. Most of these beliefs were formulated early in the development of the field.3 Chronology of Events in Management and Organization Thought 5.5.1 Introduction A set of values.5.7 Terminal Questions 5.5. Objectives: After studying this unit. assumptions.5.5 Implications of OD Values and Assumptions 5.8 Answers to SAQs and TQs 5.

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

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

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

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

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

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

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

are the best way to satisfy social and emotional needs at work.3 Implications for Designing and Running Organizations Clearly. 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. the assumption is that many attitudinal and motivational problems in organizations require interactive and transactional solutions. They cannot meet the demands of the marketplace. Third. What occurs in the work group. Hence. a growing awareness that “win-lose” organizational situations. a church or club group. leaders need to give important work to teams. adherence to the chain of command. not a one-on-one leadership style. including peers and boss. Implications of these assumptions are several. greatly influences feelings of satisfaction and competence. invest energy and intelligence in creating a positive climate. 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. One implication is that group members should receive training in group effectiveness skills such as group problem-solving and decision-making. conflict management. Second. D. support. not individuals. This skill is a trainable one. And because suppressed feelings and attitudes adversely affect problem-solving. The question becomes not how A can get B to perform better. traditional hierarchical forms of organization-fairly steep pyramid. In addition. Such problems have the greatest chance of constructive solution if all parties in the system alter their mutual relationships. are dysfunctional . and co-operation within the group. and E can support these changes. Let teams flourish because they are often the best way to get work done and. Also. It is especially important that leaders adopt a team leadership style. such as a work group. 5.5. First. and so on. at both the formal and informal levels. and job satisfaction. including how persons C. most people wish to be accepted and to interact co-operatively with at least one small reference group. group members should assist the leader with the multiple roles required for group effectiveness. By implication. one of the most psychologically relevant reference groups for most people is the work group. Dealing appropriately with feelings and attitudes increases the level of interpersonal trust. invest training time and money to increase group members’ skills. Therefore. leaders should invest in groups: Invest the time required for group development. and usually with more than one group. group members should be encouraged to learn to deal effectively with positive and negative feelings.Several assumptions relate to the importance of work teams and the collaborative management of team culture. and interpersonal communication. Frequently the challenge is broader. emphasis on topdown directives. Another assumption is that the formal leader cannot perform all the leadership and maintenance functions required for a group to optimize its effectiveness. the family. grouping by specialized function. personal growth. Finally. facilitation. and so on-are obsolete. in addition. formalized cross-functional communication. To do this. most people are capable of making greater contributions to a group’s effectiveness and development. experimenting with new organization structures and new forms of authority is imperative. in which one side wins and the other side loses.

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

3.7 Terminal Questions 1.W. 4. and assumptions are all –––––––––– facts.8 Answers to SAQs and TQs SAQs: 1. W. 2.2 2. 2. Write a note about F. State the assumptions of Theory X and Theory Y.1. 5. 5.3 3. The outcome of –––––––– was that people were not cogs and organizations were not machines. Bureaucracy 4. Taylor’s principles of scientific management. values. The concept of –––––––––– was introduced by MaxWeber. Douglas McGregor Answers to TQs: 1. Refer section 5. 3. _______________ gave theory X and theory Y. What was the outcome of Hawthorne Experiments? 4. Refer section 5. Taylor 3. 5. Cognitive 2. Hawthorne experiments 5. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. beliefs.3 . __________ is associated with scientific management. Define concepts. Refer section 5. Values. F. beliefs and assumptions.

Refer section 5.2.1 The Nature of Systems 6.3. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6. Refer section 5.3 The Burke-Litwin Model of Organizational Change 6.2.3.3 5.4 Porras and Robertson Model of Organizational Change 6.4 Participation and Empowerment .2 Models and Theories of Planned Change 6.3 Socio-technical Theory and Open Systems Planning 6.4 Open Systems Thinking 6.3 Systems Theory 6.3 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 Beyond the Quick Fix 6.2.3.1 Kurt Lewin and Friends 6.3.1 Introduction Objectives 6.2.2 Congruence among System Elements 6.4.

art and science which form the knowledge base upon which OD is constructed. · Realize the importance of teams and teamwork. · Explain systems theory.8 Applied Behavioural Science 6.7 A Normative – Re-educative Strategy of Changing 6. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning.12 Answers to SAQs and TQs 6. Here we describe what we believe are the most important underpinnings for the field.6 Parallel Learning Structures 6.6. · Describe the parallel learning structures.1 Introduction This unit describes the foundations of organization development theory and practice. you will be able to: · Explain various models and theories of planned change. · Explain the terms ‘participation’ and ‘empowerment’. In this discussion. · Explain normative-re-educative strategy of changing The knowledge base of OD is extensive and is constantly growing. We will examine the following concepts: .11 Terminal Questions 6.9 Action Research Self Assessment Questions 6. Objectives: After studying this unit. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs.5 Teams and Teamwork 6.10 Summary 6.

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

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

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

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

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

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

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

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

unitary whole composed of two or more interdependent parts." Von Bertalanffy refers to a system as a set of "elements standing in interaction." To summarize. and delineated by identifiable boundaries from its environmental supra.Fig." Hanna says: "A system is an arrangement of interrelated parts. Thus. . This section explains systems theory. Systems theory is one of the most powerful conceptual tools available for understanding the dynamics of organizations and organizational change. and interrelatedness among elements in a set that constitutes an identifiable whole or gestalt.3 Systems Theory A second foundation of organization development is systems theory. which views organizations as open systems in active exchange with their environment. or subsystems. one begins by identifying the individual parts and then seeks to understand the nature of their collective interaction. interconnectedness. that is the system. and Katz and Kahn were the first to apply open systems theory to organizations in 1966.5: A Change-based Organizational Framework 6. The words ‘arrangement’ and ‘interrelated’ describe interdependent elements forming an entity. system denotes interdependency. Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950. 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. when taking a systems approach.system. 6. components. describes the characteristics of systems. and shows how systems theory enhances the practice of OD.

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

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

performance will suffer. performance will suffer. 6.1) The environment. Outputs are performance at the total organization level. . perceptions. and individual level. and critical decisions that still influence behaviour today. which includes the organization’s culture informal rules and understandings. Elements of the organization per se are labeled strategy. work. performance will suffer." and which elements . processes.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. Fig. important events. knowledge. For example. In a company that is performing poorly. and how things really work (versus how they are supposed to work as defined by the formal organization). You can use this model to analyze organizations with which you are familiar. which includes formal structures. and technology. which components are "not functioning correctly. such as capital." The premise is that alignment (harmony. which includes skills. if people don’t have the skills and knowledge required to do the work. fit) must be present among the system’s components’ for the organization to produce satisfactory outputs. formal organization. which imposes constraints and opportunities about what the organization can and can not do. what the organization is trying to accomplish and how it plans to do it. and 3) History which consists of memories of past successes. knowledge. 2) Resources available to the organization. the tasks people perform to create products and service markets people. failures. and 2) Evaluating the "goodness of fit" or how well the elements "go together. and systems for performing the work. unit/group level. people. and informal organization. and the workforce’s expectations. If the strategy calls for entrepreneurial quickness and risk-taking and the formal organization is bureaucratic and highly centralized. If the organization’s culture (informal organization) praises individual accomplishments and the work requires teamwork and collaboration.

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

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

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

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. STS (socio-technical systems). changes those norms and values. research. Teams and teamwork are among the "hottest" things happening in organizations today – gurus extol the virtues of teams. quality circles. to name just a few. inter-group team-building. A second fundamental belief is that teams must manage their culture. Team Taurus developed Ford’s best-selling automobile. HPWSs (high-performance work systems). many tasks are so complex they cannot be performed by individuals. Teams are important for a number of reasons: First. Teams at Motorola produced its bestselling cellular phones. The message of this section is that putting those empowered individuals into teams creates extraordinary effects on performance and satisfaction. Examples are team-building. teaming. processes. the noun team has become a verb. Fourth. the effects on individual behaviour are immediate and lasting. HPOs (high-performance organizations). Third. and explore ways to realize that potential. teams satisfy people’s needs for social interaction. we examine the potential of teams and teamwork. systems. Theory. Second. In this section. recognition. that is. teams create synergy.” 6. Teams and teamwork are part of the foundation of organization development.the organization. A number of OD interventions are specifically designed to improve team performance. The previous discussion focused on empowerment and concluded that the act of empowering individuals greatly increased their performance and satisfaction. If the team. "The evidence is abundantly clear: Effective teams produce results far beyond the performance of unrelated individuals. much individual behaviour is rooted in the socio-cultural norms and values of the work team. and respectteams nurture human nature. and relationships if they are to be effective. confident about their abilities. Team Saturn produced the Saturn automobile. as a team. and capable of having an impact on the system in which they are embedded. status. Synergy is a principal reason teams are so important. teams at 3M generate the hundreds of innovations that keep 3M ahead of its competition. and team-related acronyms abound-SDTs (self-directed teams). QCs (quality circles). crossfunctional "design-build" teams developed the Boeing 777.5 Team and Teamwork A fundamental belief in organization development is that work teams are the building blocks of organizations. people must work together to accomplish them. and practice attest to the central role teams play in organizational success.

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

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

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

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

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

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

MU0002-Unit-07-Organization Climate Unit-07-Organization Culture and Climate Structure: 7.2.12 Answers to SAQs and TQs SAQs: 1.4.3 4. Refer section 6.Refer section 6. What are the features of systems theory of organizational development? 5.2. System 5. 6. Unfreezing 2.3 5. Transactional change 4.1 Introduction Objectives 7. Synergy Answers to TQs: 1. Refer section 6.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .1 2.2. Ralph Kilmann 3. Refer section 6.2 3. “Work teams are building blocks of organizational development.” Comment on this statement.2 Characteristics of Organization Culture Culture and . Refer section 6.

Martin and Meyerson. but everyone knows it when they sense it. what they brag about. . and validated enough to be taught to new members as the correct ways of perceiving. For example. despite the best-laid plans. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. thinking. organizational change must include not only changing structures and processes.6 Summary 7. but also changing the corporate culture as well.7. and feeling in relation to these problems (Schein. 1986). Members of an organization soon come to sense the particular culture of an organization.3 Types of Organization Culture. · Describe different types of Organization Culture · Explain organization culture and effectiveness. values.1 Introduction Basically. organizational culture is the personality of the organization. You can tell the culture of an organization by looking at the arrangement of furniture. norms and tangible signs (artifacts) of organization members and their behaviors.8 Answers to SAQs and TQs 7. discovered. – similar to what you can use to get a feeling about someone’s personality.4 Organization Culture and Effectiveness 7. etc. the culture of a large. Culture is one of those terms that’s difficult to express distinctly. Comprehensively organization culture is the pattern of basic assumptions that is invented. 7. Practitioners are coming to realize that. Objectives: After studying this unit. you will be able to: · Understand Organization Culture.7 Terminal Questions 7.5 Developing and changing Organization Culture Self Assessment Questions 7. for-profit corporation is quite different than that of a hospital which is quite different than that of a university. what members wear. The concept of culture is particularly important when attempting to manage organization-wide change. Culture is comprised of the assumptions.

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

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

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

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

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

Guidelines for change Despite the significant barriers and resistance to change. These emotions will be a major input into the clash or compatibility of the two cultures. 7. so that they are able to interact well with the organizational personnel. 3. Move quickly and decisively to build momentum and to defuse resistance to the new culture. Expect to have some problems and find people who would rather move than change with the culture and. 9. Simple guidelines such as the following can be helpful. 5.3. Recruit outside personnel with industry experience. Include employees in the culture change process. Make changes from the top down. 4. Self Assessment Questions 1. 3. commitment. Emotions. Stay the course by being persistent. the “culture contract” that individuals have bought into to guide their day-to-day thoughts. 6. if possible.6 Summary . This attempt to change culture can take many different forms. ________cultures are outward looking. are particularly driven by results and are often very competitive. ___________are those factors that influence the course of development within an organization and its results or accomplishment. Set realistic goals that impact on the bottom line. habits. especially when making changes in rules and processes. 7. 8. Take out all trappings that remind the personnel of the previous culture. organizational cultures can be managed and changed over time. Assess the current culture. 2. and patterns of daily behavior. The personal feelings. so that a consistent message is delivered from all management team members. _____are the visible manifestations of culture as seen in the physical and social environment of the organization. attitudes. take these losses early. 2. 1.

. behavioural approach. Effectiveness of an organization can be increased through economic man approach and administrative man approach. 2.goal approach. Explain the characteristics of organization culture.3 3. intervening variables and end-result variables and there exists interrelationship among these variables. Causal variables Answers to TQs: 1. 7. 3. Refer section 7. Artifacts 2. Organizational effectiveness can be measured through various approaches. Refer section 7.2 2. effectiveness through adaptive-coping cycle has been discussed.8 Answers to SAQs and TQs SAQs: 1. Organizations to be successful must be efficient and effective. Market 3. system-resource approach. 7. Discuss the development and change of organizational development. Finally.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. Refer section 7. and strategic constituencies approach. Briefly explain different types of organizational culture. Factors in organizational effectiveness include casual variables.7 Terminal Questions 1.

Politics and Organization Development Structure: 8.4 Theories about the Sources of Social Power 8.1 Introduction Objectives 8.MU0002-Unit-08Power.8 Acquiring and using Power Skills Self Assessment Questions 8. power must be exercised.6 The Role of Power and Politics in the Practice of OD 8. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics.5 Organizational Politics Defined and Explored 8.1 Introduction Politics and Power and politics. As Warner Burke observes: "Organization development signifies change.7 Operating in a Political Environment 8. Organization Development Unit-08. and for change to occur in an organization. indisputable facts of organizational life.Power. In this unit.” Organization development has been criticized for not taking into account power in organizations. must be understood if one is to be effective in organizations. That criticism was essentially correct for many years although it is less valid .3 Two Faces of Power 8. we examine power and politics in relation to organization development.11 Answers to SAQs and TQs 8.10 Terminal Questions 8.9 Summary 8.2 Power Defined and Explored 8.

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

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

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

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

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

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

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

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

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

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

Having power is one thing. "Power is converted into influence when the target individual consents to behave according to the desires of the power holder.1: Model of Power and Influence Networking is used to increase both personal power and position power. 8. and retribution. According to these authors." And. 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. power-in-use is called influence. Reason refers to persuasion by facts. 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”. and (3) empowering others. and relevance-how important one’s task is in relation to organizational priorities.influential people. Retribution is not recommended except in unusual cases. and reciprocity can be useful when reason fails. Usually reason is the preferred strategy. Retribution refers to coercion and threats. Whetton and Cameron suggest ." Three things are involved in converting power into influence: (1) resisting other people’s inappropriate influence attempts. Indeed. actually using it to get things done is another. Reciprocity refers to exchange of favors. Fig. Networks are critical to effective performance for one compelling reason: Except for routine jobs. reciprocity. They write: "Influence entails actually securing the consent of others to work with you in accomplishing an objective. “One of the most important ways of gaining power in an organization is by establishing a broad network of task and interpersonal relationships. (2) selecting the proper influence strategy.

Power based on the power-receiver having identification with the power holder is called ––– ––––––––. we have examined power and politics with the goals of understanding the phenomena and deriving implications for OD practitioners.10 Terminal Questions 1. 2. Organizational power is the ability of those who possess power to bring about the outcomes they desire. Self Assessment Questions 1. 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. Organizational politics is defined as the study of who gets what. and are amenable to positive control. reputation and professional credibility. Power and politics are similar in nature. when. –––––––––– is made up of Charisma. arise from known conditions. Define power in an organizational context and explain types of power. Power can be either positive or negative. Organizational politics involve intentional acts of influence to enhance or protect the self-interest of individuals or groups. –––––––– defined politics as the study of who gets what. –––––– is the intentional influence over the beliefs. 8. when and how. emotions or behaviour of people. (4) express confidence (5) foster initiative and responsibility. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics.. _____________ has identified two faces of power. and (6) build on success. 3. Strategic-contingency model of power asserts that power that accrues to the individuals. Methods for empowering others are the following: (1) involve subordinates in assigning work. . Power and politics are similar in nature. (3) reward and encourage others in visible and personal ways. and are amenable to positive control. 4. 5. arise from known conditions. 8.9 Summary Power and politics are inseparable facts of organizational life. and how. collaborative work environment. Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another. (2) provide a positive. Concluding Comments: In this unit. units or departments is most important in solving organizational problems.several means of resisting others’ influence attempts such as confrontation and using countervailing power.

5. Refer section 8. Identify the bases of individual power and the respective strategies for their success.2.Refer section 8. Refer section 8. Personality Answers to TQs: 1. Describe briefly various theories of power.11 Answers to SAQs and TQs SAQs: 1. Define organization politics.2 2. Harold Lasswell 5. 8. Power 2. Referent power 4. Refer section 8. 3. 4. Refer section 8. McClelland 3. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9.6 5.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Explain the role of power and politics in the practice of OD.1 Introduction .4 3.5 4.

Objectives 9. An organization development intervention is a sequence of activities. Objectives: . These interventions vary from standardized program that have been developed and sometimes tailored program. 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.5 Quality Circles 9.3 Socio Technical Systems 9.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. In this dynamic and fluid environment.4 Management By Objectives 9. actions.10 Summary 9. These methods are receiving increasing attention in Organization Development. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design.6 Quality of Work Life Projects 9. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future.11 Terminal Questions 9.7 Parallel Learning Structures 9. organizational problems may repeat. events intended to help an organization improve its performance and effectiveness.8 Total Quality Management 9. These programs are derived from careful diagnosis.2 Meaning and Definitions 9.12 Answers to SAQs and TQs 9.9 Reengineering Self Assessment Questions 9. Nothing is permanent except change because change is permanently changing.

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

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

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

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. There are a number of reasons why a consultant should consider employing a structural intervention. 9. Quality . assumes neither an upward flow of involvement nor that consensus decision making. From a benefit cost analysis. 3. Reengineering focuses on visualizing and streamlining any or all business processes in the organization. events intended to help an organization improve its performance and effectiveness.9 Reengineering It is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical. · Top management support on an ongoing basis. The term MBO was coined by _________ in 1964. Reengineering is a top-down process. 2.10 Summary An organization development intervention is a sequence of activities. actions. and speed. An organization development __________ is a sequence of activities. consciously directed towards the effective and efficient achievement of organizational objectives. eliminating. Sociotechnical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. events intended to help an organization improve its performance and effectiveness. · An emphasis on teams and teamwork. service. contemporary measures of performance. MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. or restructuring activities without regard to present hierarchical or control procedures. Self Assessment Questions 1. actions. · Continuous search for sources of defects with a goal of eliminating them entirely. 9. · A major emphasis on continuous learning. structural Interventions compare quite favorably with all other alternatives. such as cost. It seeks to make such processes more efficient by combining. · Participative management.· Competitive benchmarking. quality.

What are the advantages of structural interventions? 3.12 Answers to SAQs and TQS SAQs: 1.11 Terminal Questions 1.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 9. ties reward to performance and increase workers knowledge and skills through extensive training. provides relevant information to all employees. Explain Management By Objectives? 4.2 3. Write a short note on Total Quality Management. Discuss Socio Technical Systems? 2.circle represents a participative approach to employee involvement in problem solving and productivity improvement.Refer section 9. . 9. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. It is also called continuous quality improvement.5 4. 9. Refer section 9.3 2. Quality circle Answers to TQs: 1. Refer section 9. TQM pushes decision making power downwards in the organization. Intervention 2. Drucker 3.

1 Introduction Objectives 10. organizational problems may repeat.2 Nature of Change 10.7 Summary 10. cope with the ongoing changes successfully in the first instance. 10. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented). Hence. Objectives: .6 Methods of Reducing Resistance to Change. Nothing is permanent except change because change is permanently changing.3 Resistance to Change 10.9 Answers to SAQs and TQs 10.MU0002-Unit-10-Managing Organization Development Unit-10-Managing Change in Organization Development Structure: 10. In this dynamic and fluid environment.5 Impact of Change on the Future Manager 10. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future.1 Introduction Change in Organizations are increasingly realizing the fact that change is the price of the survival. Self Assessment Questions 10. and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other.4 Causes for Resistance to Change.8 Terminal Questions 10.

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

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

Fear of Economic Loss: A change may create fear of economic loss in the sense that it may affect economic compensation adversely.1. they simply resist such a change. Degree of force in resistance depends on how people feel about change. Therefore. may be seen in the context of three types of factors: economic. People may perceive that they will be adversely affected by the change in terms of their needs satisfaction in the following ways: 1. psychological and social. etc. It also highlights real inadequacies in the proposed change and suggests better ways for developing and introducing changes. 2. 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 there is change. either real or emotional. technology. Psychological Factors .. 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. Skill Obsolescence: A change is generally meant for better methods of working which may involve new techniques. it attracted a lot of resistance because of this reason. 2. Economic Factors People feel attached to the organization for satisfying their needs and economic needsphysiological. whenever people sense that new machinery (change) poses a threat of replacing or degrading them. 3. Factors in Resistance to Change People tend to evaluate the effect of change individually but they express it through group in collective form. These feeling may be based either on reality or there may be emotional feeling towards the change. they will have lower opportunity to earn incentives and bonus as the new system requires additional skills. 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. bonus. These feelings. people may feel that in the new system. Reduced Opportunities for Incentives: Employees are generally offered incentives linked to their output in the form of incentive schemes. job security etc. All these are well-established in the old system. etc. and turn into technological unemployment. precede over other needs. reduce job options.

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

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

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

As human beings.4 Cause for Resistance to Change Resistance to change doesn’t necessarily surface in standardized ways. implicit. we don’t need to consider the full range of options for the hundreds of decisions we have to make every day. we’ve categorized them by individual and organizational sources. Training . engaging in a work showdown. we’re creatures of habit. To cope with this complexity. adjusting to the new office layout. finding a new parking place. the introduction of a quality management program requires that production workers learn statistical process control techniques. or the like. taking a new set of streets to work. it means you’re likely to have to change many habits: waking up 10 minutes earlier. Security: People who have a high need for security are likely to resist change because it threatens their feeling of safety. And people in general don’t like the unknown. many employees at these firms may fear that their jobs are in jeopardy. It is easiest for management to deal with resistance when it is overt and immediate. threatening to go on strike. When Boeing announces its laying off 10.10. a change is proposed and employees quickly respond by voicing complaints. Life is complex enough. some may fear they’ll be unable to do so. the selection process systematically selects certain people in and certain people out. For example. develop a negative attitude towards quality management or behave dysfunctionally if required to use statistical techniques. we all rely on habits.000 people or Ford introduces new robotic equipment. you find a single route and you use it regularly. when you go to work or school. Economic Factors: Another source of individual resistance is concern that changes will lower one’s income. therefore. Let’s look at the sources of resistance. For analytical purpose. The same applies to employee. Organizational resistance Structural Inertia: Organizations have built-in mechanisms to produce stability. For instance. Fear of the Unknown: Change substitute ambiguity and uncertainty for the known. They may. or deferred. When we are confronted with change. or programmed responses. do you continually use the same route and streets? Probably if you’re like most people. So when your department is moved to a new office building across town. immediate. Habit Every day. and so on. developing a new lunchtime routine. If for example. this tendency to respond in our accustomed ways becomes a source of resistance. Resistance can be overt. especially when pay is closely tied to productivity. 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.

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

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

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

psychodrama. However. Group Dynamics Training for Change: Group dynamics also helps in providing various training programmes for accepting and implementing change. structural arrangement. _________ is the alteration of work environment in an organization. For this purpose. _________ helps to give people involved in the organizational change and inculcate a feeling of importance. and how members contribute. The same is true of problem-solving. sentiments and attitudes towards change. 3. Such training techniques include role playing. Those people who are directly affected by the change should be given opportunity to participate in that change before the final decisions are reached. It would be prudent for management to take labour representatives into confidence before implementing any change. Group Contact: Any effect to change is likely to succeed if the group accepts that change. Research studies also support this aspect. Even if only some of the members are affected by the change. the group itself should be the point of contact. mere participation may not help. The laboratory method provides a setting where group processes can be studied intensively. Participation: Participation helps to give people involved in the organizational change and inculcate a feeling of importance. (ii) In group. (iii) Group can get at the basic problem very rapidly as compared to a single individual. The group contact offers some specific advantages: (i) Through groups. This is more important in the case of workers who themselves treat a separate group and do not identify with the management. taking whole of the group into confidence helps in maintaining a cooperative attitude. Through the group contact. They must be made a party to the change rather than an agent for resistance to change. thereby the people can build up the climate based on mutual trust and understanding which are essential for bringing organizational changes successfully.such aspects as the reasons for change. It implies a new equilibrium between different components of the organization – technology. and how the benefits of the meaningful and continuous dialogue are necessary. . many things about change can be made clear. 2. 2. The organization must regard the participation as meaningful and share the results of the change with its members. 3. job design and people. Free flow of information helps people to understand the real picture of the change and many misunderstandings may be avoided. 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.1. there may be some person who may communicate to the same group. benefits of change. __________ are based on people’s emotions. one can communicate with more people per unit of time. Self Assessment Questions 1. Such training techniques provide understanding of behaviour. It purports how the results are.

both at the formal and informal levels. social factors. Organizational change 2.6.8 Terminal Questions 1.7 Summary Change is inevitable. 10. or deferred. It is easiest for management to deal with resistance when it is overt and immediate. For instance. Participation Answers to TQs: 1. engaging in a work showdown. a change is proposed and employees quickly respond by voicing complaints. Refer section 10. Why do organizations resist change? 3. or the like.10. Psychological factors 3. Explain the nature of change? 2.9 Answers to SAQs and TQS SAQs: 1. immediate. 10. Refer section 10. Organizational change is the alteration of work environment in an organization. at the level of individual and at the level of group. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups.4 3. Problem of overcoming resistance to change can be handled at two levels. group resistance and vested interests. through group dynamics. Resistance can be overt. People tend to resist many types of changes because new habits or sacrifices are required. implicit. It implies a new equilibrium between different components of the organization. Reference: . psychological factors. Refer section 10. Changes may be influenced by external and internal factors. Economic factors. that is. threatening to go on strike.2 2. Discuss the methods of reducing resistance to change.

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