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

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

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

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

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

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

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

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

Managers also act as a conduit to transmit information to organizational members. This is the disseminator role. Typically. Mintzberg concluded that managers perform ten different but highly interrelated roles. and associated duties. The sales manager who obtains information from the human resources manager in his or her same company has an internal liaison relationship. This role includes hiring. they do so by reading magazines and talking with others to learn of changes in the public’s tastes. But in addition to these insights. and the like. The term ‘management roles’ refers to specific categories of managerial behaviour. activities that involve responsible for staffing. Interpersonal Roles: All managers are required to perform duties that are ceremonial and symbolic in nature – interpersonal roles. and disciplining employees. When that sales manager confers with other sales executives through a marketing trade association. When the president of a college hands out diplomas at commencement or a factory supervisor gives a group of high school students a tour of the plant. manages also perform a spokesperson role. to some degree. training. Informational Roles: All managers. Mintzberg described this activity as contacting external sources who provide the manager with information. All managers have a role as a leader. subordinates. Half of these managers’ activities lasted less than nine minutes each. and may be inside or outside the organization. motivating. Mintzberg provided a categorization scheme for defining what managers do based on actual managers on the job. he or she has an outside liaison relationship. fulfill informational roles-receiving and collecting information from organizations and institutions outside their own. duties of a legal or social nature. the transfer of information. obliged to Greeting visitors. Table 1.1: Mintzberg’s Managerial Roles Role Interpersonal Figurehead Description Identifiable Activities Leader Symbolic head. These sources are individuals or groups outside the manager’s unit. and decision-making. he or she is acting in a figurehead role. These ten roles can be grouped as those primarily concerned with interpersonal relationships.constant interruptions. The third role within the interpersonal grouping is the liaison role. When they represent the organisation to outsiders. signing perform a number of routine legal documents. . what competitors may be planning. Mintzberg called this the monitor role. training. Responsible for the motivation Performing virtually all and activation of subordinates.

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

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

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

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

Money. Management is largely found at the middle and lower levels and administration is found at the higher levels. organisations.9 Terminal Questions 1. Management creates ________ and motivates employees to work harder and better by providing necessary guidance. Explain its characteristics. Human skills are important at all managerial levels. 3. teamwork . Lower level managers require and use a greater degree of technical skill and managers at higher levels use a greater degree of conceptual skill. counseling and effective leadership.8 Summary Management is concerned with getting things done through other people. machinery and methods or ways of doing things) depends to a great extent on the quality of management. 3. 1. Bring out the difference between Administration and Management. 2. __________is principally the task of planning. manpower 3.10 Answers to SAQs and TQs SAQs: 1. Managers perform different roles to discharge their responsibilities.government offices. _________. materials. Management 2. Self Assessment Questions in the 1. There are three levels of management-top. public organisations sector and non-business private sector. Five M’s of management (________. motivating and controlling the efforts of others towards a specific objective. Define management. 1. middle and lower. co-ordinating. It is the management which transforms physical resources of an organization into productive resources. 1. 2. Discuss the importance of management. ___________. Still management is not completely a profession.

9 Terminal Questions 2.3 2.7 Motivating Self Assessment Questions 2.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .Answers to TQs: 1.2.1 Introduction Objectives 2.4 Organizing 2. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2. Refer section 1.5 Staffing 2.1.6 Directing 2. Refer section 1.10 Answers to SAQs and TQs . Refer section 1.3 Planning 2.5 3.2 Process of Management 2.8 Summary 2.

Controlling However. the two are not quite the same. Through leadership and management often overlap. you will be able to: · Define Management process. leadership is doing the right things“. in recent time. Policy Formulation We have noted earlier that all organizations have well-defined goals and objectives. Commanding 4. as the action of measuring a quantity on a regular basis and of adjusting some initial plan. · Explain Planning. 2. It is difficult to say where objectives end and policies begin. Motivating. leadership is about setting the desirable goals.2. Even . Planning 2. One can also think of management functionally. There is a degree of overlap between the two. Organizing. Management functions are as follows (Fayol. Staffing. management functions have been regrouped into four categories. · Explain different functions of management Process. 1949): 1.2 Management Process Peter Drucker said: “Management is doing things right. You might well ask what the need for a policy is when objectives are already defined. Directing. Organizing 3. Objectives: After this studying this unit.1 Introduction Follett (1933) defined management as "the art of getting things done through people”. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent. Management is about accomplishing a goal efficiently. Coordinating 5.

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

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

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

Formalization is an important aspect of structure. This review is used for the next planning cycle and review. and goals are clearly stated. short-term standards for key variables that will tend to validate and support the long-range estimates must be established. Review plans 2.5 Staffing . The formal organization can be seen and represented in chart form. Organizational structure is the formal decision-making framework by which job tasks are divided. Assign work to individuals 6. who is to do. Feedback is encouraged and incorporated to determine if goals and objectives are feasible. structuring. grouped. Organizations are groups of people. necessary to maintain competitive advantage in the said market.4 Organizing It involves designing. It is the official organizational structure conceived and built by top management. and coordinating the work components to achieve organizational goal.must be accompanied by controls to ensure proper implantation of the plans. and coordinated. who reports to whom. The steps in the organizing process include: 1. It is the extent to which the units of the organization are explicitly defined and its policies. It is the process of determining what tasks are to be done. To develop an environmental monitoring procedure. Divide tasks into groups one person can accomplish – a job 4. working toward common goals. and relationships between departments. with ideas and resources. 2. List all tasks to be accomplished 3. how the tasks are to be grouped. Monitor the plan A systematic method of monitoring the environment must be adopted to continuously improve the strategic planning process. lines of authority. Delegate authority to establish relationships between jobs and groups of jobs. A key issue in accomplishing the goals identified in the planning process is structuring the work of the organization. 2. The purpose of the organizing function is to make the best use of the organization’s resources to achieve organizational goals. Group related jobs together in a logical and efficient manner 5. procedures. and where decisions are to be made. An organization chart displays the organizational structure and shows job titles.

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

2. resignation. Direction is continuous process and it continues throughout the life-time of the organization. Through direction. etc.e. Direction is an important managerial function. Personnel policies and programs must be formulated as guides to perform the staffing function effectively. It deals with future requirements: Staffing deals with current and future personnel requirements. 6. 8. how to do and telling them to do to the best of their ability. training development and maintenance of personnel. vacancies arise out of retirement. recruitment. Characteristics of Direction The characteristic features of direction are as follow: 1.5. It is instructing people as to what to do. overseeing and leading people. It is a process: it is a process having a logical sequence i. 3. induction. Direction is the managerial function of guiding. 7. It is a continuous function: With the growth and expansion of business additional manpower is needed. 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. A manger needs to give orders to his subordinates. motivate them. identifying the manpower requirements. Definition According to Koontz and O’Donnel. It is a continuing function. lead them and guide them on a continuous basis. Thus staffing is an ongoing process through – out the life of an organization. . management initiates actions in the organization. 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”.6 Directing Direction is one of the functions of management. 2. Thus staffing deals with the future requirements also. Present positions must be filled keeping in mind the future requirements. It is an important managerial function. Direction function is performed at every level of management. promotion.

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

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

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

3 2. Staffing Answers to TQs: 1.6 Copyright © 2009 SMU Powered by Sikkim Manipal University . Reference 2.9 Terminal Questions 1. Explain Staffing in detail 3. Follett 2. What is planning? 2.1 Introduction Objectives .2. Write a short not on directing.10 Answers to SAQs and TQs SAQs: 1. Reference 2. Reference 2. SWOT 3.5 3. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3. 2.

3.2 Definitions 3.3 Characteristics of OD 3.4 Categories of OD 3.5 Goals of OD 3.6 OD and Management Development 3.7 Role of OD 3.8 Problems in OD Self Assessment Questions 3.9 Summary 3.10 Terminal Questions 3.11 Answers to SAQs and TQs 3.1 Introduction Organization development is the applied behavioural science discipline dedicated to improving organizations and the people in them through the use of the theory and practice of planned change. Organizations face multiple challenges and threats today – threats to effectiveness, efficiency, and profitability; challenges from turbulent environments, increased competition, and changing customer demands; and the constant challenge to maintain congruence among organizational dimensions such as technology, strategy, culture, and processes. Keeping organizations healthy and viable in today’s world is a daunting task. Individuals in organizations likewise face multiple challenges – finding satisfaction in and through work, fighting obsolescence of one’s knowledge and skills, maintaining dignity and purpose in pursuit of organizational goals, and achieving human connectedness and community in the workplace. Simple survival – continuing to have an adequate job – is a major challenge today in the light of constant layoffs and cutbacks. Although new jobs are being created at record rates, old jobs are being destroyed at an accelerating pace. “Knowledge” work is replacing “muscle” work. In summary, organizations and the individuals in them face an enormously demanding present and future. Are any strategies available to help people and organizations cope, adapt, survive, and even prosper in these vexing times? Fortunately, the answer is “yes”. A variety of solutions exists. And organization development (OD) is one of them. Basically, organization development is a

process of teaching people how to solve problems, take advantage of opportunities, and learn how to do that better and better over time. OD focuses on issues related to the “human side” of organizations by finding ways to increase the effectiveness of individuals, teams, and the organization’s human and social processes. Organization development is a relatively recent invention. It started in the late 1950s when behavioural scientists steeped in the lore and technology of group dynamics attempted to apply that knowledge to improve team functioning and inter-group relations in organizations. Early returns were encouraging, and attention was soon directed toward other human and social processes in organizations such as the design of work tasks, organization structure, conflict resolution, strategy formulation and implementation, and the like. The field of OD grew rapidly in the 1970s and the 1980s with thousands of organizations in the private and public sectors using the theory and methods of OD with great success. Today, organization development represents one of the best strategies for coping with the rampant changes occurring in the marketplace and society. We predict that organization development will be preferred improvement strategy in future. Objectives: After studying this unit, you will be able to: · Define organization development. · Explain the characteristics of OD. · Discuss the categories of OD programme. · State the goals of OD. · Distinguish between OD and Management Development · Explore the problems in OD. 3.2 Definitions Organization Development (OD) is a response to change, a complex educational strategy intended to change the beliefs, attitudes, values and structure of organization so that they can better adapt to new technologies, markets, and challenges, and the dizzying rate of change itself. (Bennis, 1969). OD can be defined as a planned and sustained effort to apply behavioural science for system improvement, using reflexive, self-analytic methods. (Schmuck and Miles, 1971)

Organizational development is a process of planned change- change of an organization’s culture from one which avoids an examination of social processes (especially decision making, planning and communication) to one which institutionalizes and legitimizes this examination. (Burke and Hornstein, 1972) The aims of OD are: 1) Enhancing congruence between organizational structure, processes, strategy, people, and culture; 2) Developing new and creative organizational solutions; and 3) Developing the organization’s self-renewing capacity (Beer, 1980). Organization development is an organizational process for understanding and improving any and all substantive processes an organization may develop for performing any task and pursuing any objectives…. A “process for improving processes” – that is what OD has basically sought to be for approximately 25 years (Vaill, 1989) “Organizational development is a set of behavioural science-based theories, values, strategies, and techniques aimed at the planned change of the organizational work setting for the purpose of enhancing individual development and improving organizational performance, through the alteration of organizational members’ on-the-job behaviours.” (Porras and Robertson, 1992) “OD is a systematic application of behavioral science knowledge to the planned development and reinforcement of organizational strategies, structure, and processes for improving an organization’s effectiveness.” (Cummings and Worley, 1993) “Organization development is a planned process of change in an organization’s culture through the utilization of behavioural science technologies, research, and theory.” (Burke, 1994) As you can see, these definitions overlap a great deal (that’s encouraging), and contain several unique insights (that’s enlightening). All authors agree that OD applies behavioural science to achieve planned change. Likewise, they agree that the target of change is the total organization or system and that the goals are increased organizational effectiveness and individual development. Collectively, these definitions convey a sense of what organization development is and does. They describe in broad outline the nature and methods of OD. There is no set definition of OD and no agreement on the boundaries of the field, that is, what practices should be included and excluded. But these are not serious constraints given that the field is still evolving, and that practitioners share a central core of understanding as shown in the preceding definitions.

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

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

Today’s organizations increasingly use ad hoc teams that perform a specific task and disband when the task is completed. firing. 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 think teams are the basic building blocks of organizations. and procurement. according to Peters. In Liberation Management. manufacturing.By intact work teams and other configurations. and training. individuals and the organization function well. engineering. Team building and role and goal clarification interventions are standard activities in OD programs directed toward intact work teams. OD focuses on culture and processes. To summarize. OD encourages collaboration between organization leaders and members in managing culture and processes. and considerable antagonism among the separate functional specialists. Temporary. constantly shifting teams will be the dominant configuration for getting work done. members are trained in competencies such as planning. This method resulted in loss of synergy. Further. The most prevalent form of teams in organizations is intact work teams consisting of superior and subordinates with a specific job to perform. The thesis of Liberation Management is that contemporary bureaucratic structures with their functional specialties and rigid hierarchies are all wrong for the demands of today’s fast-paced market place. The results are usually highly gratifying both for the team members and for the organization. much rework. self-directed teams control performance appraisals. These self-directed teams assume complete responsibility for planning and executing work assignments. The current method for getting complex tasks done in organizations is to assemble a cross-functional team comprised of members from all the functional specialities required to get the job done. hiring. team culture can be collaboratively managed to ensure effectiveness. multifunctional. 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. wasted time. Specifically. 2. here are the primary distinguishing characteristics of organization development: 1. But in many organizations today. Over time. The definition we have just analyzed contains the elements we believe are important for OD. such as design. The old method was to have functional specialists work on the problem sequentially. maintaining quality control. He uses the terms ‘multifunctional projectization’ and ‘horizontal systems’ to describe these teams and their work. When teams function well. we recognize that teams are central to accomplishing work in organizations. and using management information. the process “threw the results over the wall” to the next functional unit. When one function finished with its part of the project. In addition to team building and role and goal clarification. .

4. OD takes a developmental view that seeks the betterment of both individuals and the organization. dynamic and adaptive system.3. or isolated problems. 6. 2. This ‘planned’ emphasis separates OD efforts from other kinds of more haphazard changes that are frequently undertaken by organizations. 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. The concept of comprehensive change is based on the systems concept-open. Comprehensive Change: OD efforts focus on comprehensive change in the organization. Rather. OD practitioners are facilitators. Thus. It recognizes that organizational goals change. 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. Teams of all kinds are particularly important for accomplishing tasks and are targets for OD activities. so that change is easily observed. Participation and involvement in problem-solving and decision-making by all levels of the organization are hallmarks of OD. . rather than focusing attention on individuals. 5. 10. 7. 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. 8. OD focuses on the elevation of an organization to a higher level of functioning by improving the performance and satisfaction. OD focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. OD relies on an action research model with extensive participation by client system members. 9. and co-learners with the client system. rather. collaborators. Long-range Change: OD efforts are not meant for solving short-term. 3. interactive. so the methods of attaining these goals should also change.3 Characteristics of OD 1. OD views organization improvement as an ongoing process in the context of a constantly changing environment. Planned Change: OD is a strategy of planned change for organizational improvement. OD focuses on total system change and views organizations as complex social systems. 3. OD efforts are not one-shot actions. they are ongoing. and cyclic processes. Attempting to create “win-win” solutions is standard practice in OD programs. temporary.

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

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. This Organization Development progrmmes. (d) To build trust among persons and groups throughout an organization. (g) To increase the sense of ‘ownership’ or organization’s objectives throughout the work force. (b) To supplement the authority associated with role or status. (f) To develop a reward system which recognizes both the achievement of the organization’s goals (profit or service) and development of people. with the authority of knowledge and competence. and (d) The interventions are based on behavioural science theory and technology. 3. 3.6 OD and Management Development . (h) To help managers to manage according to relevant objectives rather than according to past practices or according to objectives which do not make sense for one’s area of responsibility. (e) To make competition more relevant to work goals and to maximize collaborative efforts. We need to examine carefully the techniques of Organization Development.5 Goals of Organization Development Following are the generally accepted goals of OD: (a) To create an open. 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. (c) To locate decision making and problem-solving responsibilities as close to sources of information as possible.(c) The interventions are directed towards problem-solving and improved functioning for the client system. like other normative re-educative programmes. problem solving climate throughout an organization. (j) To improve effectiveness of the organization.

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

Since OD attempts to bring comprehensive change in the organization. substantial disenchantment with OD became evident because of many controversial OD techniques like sensitivity training. horizontally. In early 60s. Long-range strategy for organizational innovation and renewal.Approach Time Educative and training Short-range. To create an environment in which authority of assigned role is augmented by authority based on knowledge and skills. OD became quite successful with many professional consultants offering high services and programmes to various organizations. 5. To place emphasis on humanistic values and goals consistent with these vales. however. To increase the openness of communications in all directions-vertically. 6. The basic problem in a change effort which is not comprehensive is that it does not work properly unless there is a proper change in the internal environment of the organization in which people work. To increase the level of self and group responsibility in planning and its implementation. confrontation techniques. 2. 3. 7. Research studies have also failed to conclude . 3. Trained specialists required. To treat each human being as a complex person with a complex set of needs important in his work and his life. etc. Problem-solving approach. plays key role in organizational improvement. however. 3. By 70s. Thus. To increase the level of trust and mutual emotional support among all organization members.7 Role of Organization Development Organization development. it is quite suitable for improving organizational performance on long-term basis. Much of the enthusiasm created at the beginning of OD programmes vanished over the period of time. 4. To increase the level of enthusiasms and personal satisfaction at all levels of the organization. as a long-term strategy for organizational change. OD can be utilized for the following results in the organization: 1. has invited sharp criticism as a strategy to increase organizational viability and effectiveness because many OD programmes have failed.8 Problems in Organization Development Organization development. and laterally. Specialist No special requirement.

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

State the various roles of OD.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. Who is associated with the “Learning Organizations”? 5. Empowerment . Explain the various characteristics of OD. 2. ––––––– is associated with “Liberation Management”.10 Terminal Questions 1. 5. The participative.Self Assessment Questions 1. 3. Define OD. Tom Peters 3. OD is the ultimate remedy for organizational improvements and developments. OD focuses on culture and processes. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. 3. problem-focused ‘nature of OD’ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. ––––––––– is a process which includes leadership behaviours and human resource practices. 4.11 Answers to SAQs and TQs SAQs: 1. Distinguish between ‘organizational development’ and ‘management development’. What are the problems involved in the implementation of OD? 3. Top management 2. But OD aims at changing the entire organizational climate where the managers work. Management development aims at developing the managers individually. Explain its salient features. _____________is a short-term strategy. There is no ‘quick fix’ to organizations’ problems. Organization development should be led and supported by –––––––. collaborative. 3. 4. 3. 2.

Management development Answers to TQs: 1.7 5.4 Grid Training 4.Organization Development – Interventions Unit-04.Organization Development – Interventions Structure: 4.1 Introduction Objectives 4.5 Leadership Development 4.3 3.4. Refer section 3.2 2. Peter Senge 5. Refer section 3. MU0002-Unit-04.6 4.3 Process Consultation 4. Refer section 3.6 Team-building .8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 3.2 Survey Feedback 4. Refer section 3.

4. French and Bell have suggested twelve families of OD interventions: diagnostic. education and training. Interventions constitute the action thrust of organization development. management grid. Therefore.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. they make things happen. the classification appears to be more relevant because it may specify the . inter-group level. techno-structural activities.11 Terminal Questions 4. the classification of OD interventions shows variation. Further. Nevertheless. and organizational level. 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.9 Role of Change Agents Self Assessment Questions 4. People’s behaviour may be relevant to understand at individual level. and organizational culture. 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. However.10 Summary 4. survey feedback.12 Answers to SAQs and TQs 4. process consultation. interpersonal level.” There are various OD interventions and they are classified in different ways. Thus.7 Inter Group Development 4.8 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. group level. many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others. interventions may be required to change people at all these levels. 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. For example. mediation and negotiation activities. work group. various consultants and practitioners have different opinions about the activities which can be included in interventions. inter-group activities. team-building.

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

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

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

like other OD intervention techniques. knowledge. and the organization as a whole. enabling individuals and groups to assess their own strengths and weaknesses. and processes necessary for effectiveness at the individual. One basic reason for this phenomenon may be the consultant’s inability to steer the organization out of troubles. However. From this point of view. the consultant disengages from the client organization by mutual agreement but leaves the door open for future involvement. . However.C is completed. focuses on skills. Though he is involved only in suggesting the various changes in the processes. feedback. both these problems may be overcome by engaging a suitable consultant and developing willingness among the members for change. The grid organization development consists of six phases. 4. Process of Grid Training The basic content of grid organization development is managerial grid as discussed.4 Grid Training Grid training is basically based on grid organization development developed by Blake and Mouton. The whole orientation is to develop managerial style through the application of behavioural science knowledge. It is a comprehensive and systematic OD programme which aims at individuals. 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. significant correlation between the outcomes has not been found. Intervene: At this stage. Reduce Involvement and Terminate: When the work of P. coaching. and/or structural change. inter-group. 2. 6. It utilizes a considerable number of instruments. groups. Evaluation of Process Consultation: Process consultation is quite in-depth activity of OD in which the consultant plays a major role. To evaluate the styles of leadership and techniques of participation to produce desirable results. the consultant intervenes in the organizational processes by using different interventions like agenda-setting. P. Its specific objectives are as follows: 1. In the review of various P. P. To study the organization as an interactive system and apply techniques of analysis in diagnosing its problems.C is also not free from criticisms. 3.5. and total organizational levels. group. To understand the importance and rationale of systematic change. he assists the organizational members to incorporate those changes.C is very effective intervention for organizational improvement.C programmes.

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

employees will look towards the leaders for a number of things. During drastic change times. confident and effective decision-making. if allowed to go on for too long. Also during these times of change. are closely associated with a very few advocates and practitioners. while at the same time recognizing that tough decisions need to be made. and that makes coping with drastic change much easier. it may be too late. and applied OD intervention for organizational improvement. employees learn that leaders will act in indecipherable ways and in ways that do not seem to be in anyone’s best interests. Before going through how team-building exercise can be undertaken to develop effective teams. employees will expect effective and sensible planning. The Role of Leadership In an organization where there is faith in the abilities of formal leaders. The literature on the subject indicates that the nature of the change is secondary to the perceptions that employees have regarding the ability. Unfortunately. and After Arrival. The existence of this trust. which. competence. but more importantly. is the ability of leadership to…well. during and after change implementation is THE key to getting through the swamp. In organizations characterized by poor leadership. If you are to manage change effectively. In a climate of distrust. We will look more carefully at each of these. and regular. widely accepted. The best way to summarize is that there is a climate of trust between leader and the rest of the team. 4.6 Team-building Various OD interventions discussed so far have their specific implications for OD and. let us consider the life cycle of a team. teambuilding is the most important. by the time you have to deal with difficult changes. how synergy is generated through team-work. Leadership before. employees will perceive leadership as supportive. 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. if haven’t established a track record of effective leadership. clearly the most important determinant of "getting through the swamp". employees expect nothing positive. Slogging Through The Swamp. For example. The organization must deal with the practical impact of unpleasant change. results in an organization becoming completely nonfunctioning. and credibility of senior and middle management.When change is imposed (as in downsizing scenarios). complete communication that is timely. concerned and committed to their welfare. problems in . lead. Poor leadership means an absence of hope. have no faith in the system or in the ability of leaders to turn the organization around. therefore.” 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. must labor under the weight of employees who have given up. you need to be aware that there are three distinct times zones where leadership is important. We can call these Preparing For the Journey. As against these. brings hope for better times in the future.

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

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

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

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

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

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

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

4.6 4. Blake and Mouton.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Assumptions. Social loafing Answers to TQs: 1. Assumptions. Data collection 2.3. Explain Change agents and discuss the role of change agents in detail. and Beliefs in Organization Development Structure: 5.2 3. Beliefs in Organization Development Unit-05-Values.2 Definitions and . 3.12 Answers to SAQs and TQs SAQs: 1. What is team-building? What are the stages of life cycle of a team? 4. Refer section 4.4 2. Refer section 4. Refer section 4. MU0002-Unit-05-Values.1 Introduction Objectives 5. Refer section 4.

assumptions. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers. and they continue to evolve as the field itself evolves.1 Implications for Dealing with Individuals 5.7 Terminal Questions 5. 5. you will be able to: · Explain the meaning of values.3 Implications for Designing and Running Organizations 5.5. and beliefs constitutes an integral part of organization development.1 Introduction A set of values.5 Implications of OD Values and Assumptions 5.5.8 Answers to SAQs and TQs 5. Objectives: After studying this unit.4 Early Statements of OD Values and Assumptions 5. · List the chronology of events of values.3 Chronology of Events in Management and Organization Thought 5. beliefs and assumptions. .5. · State the implications of OD values and assumptions.2 Definitions A belief is a proposition about how the world works that the individual accepts as true. it is a cognitive fact for the person. beliefs and assumptions. shaping the goals and methods of the field and distinguishing OD from other improvement strategies. Most of these beliefs were formulated early in the development of the field.2 Implications for Dealing with Groups 5.5.6 Summary Self Assessment Questions 5. · Give the statement of OD values and assumptions.

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

Much of her career was devoted to finding ways to reduce adversarial relationships between workers and management. by Roethlisberger and Dickson in 1939. The great German sociologist Max Weber (1922) introduced the concept of “bureaucracy” as the best. but also contained serious flaws that led to unintended consequences. and White demonstrated that democratic leadership was superior to authoritarian leadership and laissez-faire leadership in affecting group climate and group performance. A strong hierarchy of authority. and by Homans in 1950 profoundly and irreversibly affected people’s beliefs about organizational behaviour. ‘The Functions of the Executive’ by Chester 1. impersonal rules. and practice since the late 1920s have focused on the shortcomings of these two paradigms and how to overcome the limitations. Lippitt (1939). wrote an article on “The Giving of Orders” advocating participative leadership and joint problem-solving by labour and management. Scientific management as the way to organize work and bureaucracy as the way to organize people were the prevailing paradigms for organizations in the early 1900s. The research demonstrated the primacy of social factors on productivity and morale. repetitive jobs left them feeling alienated and dispirited. Barnard (1938) presented insights from his experiences as President of the New Jersey Bell Telephone Company. authoritarian leadership caused dependency. Group Dynamics (1940) – The scientific study of groups using experimental research methods-was launched by Kurt Lewin and his students. People came to work as whole people. The Famous Hawthorne Studies (1927 to 1932) were conducted at the Hawthorne plant of Western Electric Company. their feelings and attitudes about the work. Group norms had more powerful effects on productivity than economic incentives. theory. and the supervisor determined their performance. the work environment. Reports on these studies by Mayo in 1933 and 1945. People were not cogs. Democratic leadership seemed to bring out the best in the groups. Barnard viewed organizations as social systems that must be effective (achieve goals) and efficient (satisfy the needs of employees).       . organizations were not machines. His acceptance theory of authority proposed that authority derives from the willingness of subordinates to comply with directions rather than from position power. and rigid procedures would create a well-oiled human machine called the organization. extensive division of labor. aggressiveness and poor performance. most efficient way to organize people. Mary Parker Follett (1926). much of the research. a management theorist and astute observer of labourmanagement relations. These approaches possessed many desirable features. Their simple. apathy. Some early experiments were conducted in the late 1930s. In a sense. Research by Lewin.

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

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

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

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

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

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

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

W. 5. Define concepts. The concept of –––––––––– was introduced by MaxWeber. Refer section 5.8 Answers to SAQs and TQs SAQs: 1. 3. Refer section 5. 3. Taylor’s principles of scientific management.1. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. Taylor 3. and assumptions are all –––––––––– facts. The outcome of –––––––– was that people were not cogs and organizations were not machines. 5.7 Terminal Questions 1. Write a note about F. Bureaucracy 4. values. Values. What was the outcome of Hawthorne Experiments? 4. F. 5.2 2. __________ is associated with scientific management. beliefs and assumptions. Douglas McGregor Answers to TQs: 1.3 . Hawthorne experiments 5. Refer section 5. 2. Cognitive 2. State the assumptions of Theory X and Theory Y. beliefs. 4.3 3. 2. _______________ gave theory X and theory Y. W.

3 Copyright © 2009 SMU Powered by Sikkim Manipal University .3 Systems Theory 6.3 Open Systems Thinking 6.4 Porras and Robertson Model of Organizational Change 6.2. Refer section 5. Refer section 5.4 Participation and Empowerment .2 Beyond the Quick Fix 6.2 Models and Theories of Planned Change 6.1 Introduction Objectives 6.3 Socio-technical Theory and Open Systems Planning 6.3.1 Kurt Lewin and Friends 6.3 The Burke-Litwin Model of Organizational Change 6.3. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.3.1 The Nature of Systems 6.2.2 Congruence among System Elements 6.

you will be able to: · Explain various models and theories of planned change. · Explain systems theory.5 Teams and Teamwork 6. Objectives: After studying this unit.12 Answers to SAQs and TQs 6. · Explain the terms ‘participation’ and ‘empowerment’. · Explain normative-re-educative strategy of changing The knowledge base of OD is extensive and is constantly growing. In this discussion. · Describe the parallel learning structures.6. · Realize the importance of teams and teamwork. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs. Here we describe what we believe are the most important underpinnings for the field.9 Action Research Self Assessment Questions 6. art and science which form the knowledge base upon which OD is constructed.8 Applied Behavioural Science 6.11 Terminal Questions 6. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning.1 Introduction This unit describes the foundations of organization development theory and practice.6 Parallel Learning Structures 6.10 Summary 6.7 A Normative – Re-educative Strategy of Changing 6. We will examine the following concepts: .

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

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

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

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

developed by Warner Burke and George Litwin. departments. In first-order change. jobs. One likes this model because of its comprehensive nature.3 The Burke-Litwin Model of Organizational Change The next model to be examined is the Burke-Litwin model of individual and organizational performance. Second-order change goes by many different labels: transformational. On the other hand. values. and so forth. Eastman Kodak.The strategy-structure track develops either a completely new or a revised strategic plan for the firm and then aligns divisions. The model distinguishes between organizational climate and organizational culture. hard-working or easy-going. The reward-system track establishes a performance-based reward system that sustains all improvements by officially sanctioning the new culture. OD programs are directed toward both first. or discontinuous change. and Xerox with good results. then moving to the management skills track. radical. beginning with the culture track. Ford General Electric. and co-operative team efforts within and among all work groups. General Foods. incremental. then moving to the team-building track. An OD consultant implements the tracks in a phased sequence. TRW. evolutionary. the use of updated management skills. These perceptions are relatively easy to change because they are built on employees’ reactions to current managerial and organization practices. Changing culture is much more difficult than changing climate. often unconscious. In second-order change. some features of the organization change but the fundamental nature of the organization remains the same. and . Organizational climate is defined as people’s perceptions and attitudes about the organizationwhether it is a good or bad place to work. friendly or unfriendly. or continuous change. its identification of the five tracks as critical leverage points. adaptive. and its holistic view of organization change and development. and difficult to change. 6.2. management practices. and beliefs that are enduring. organizational culture is defined as deep-seated assumptions. First-order change goes by many different labels: transactional. with an increasing emphasis on second-order transformational change. Westinghouse. This model shows how to create first-order and second-order change (which the authors call “transactional change” and “transformational change”). revolutionary. The premise of the BurkeLitwin model is this: OD interventions directed toward structure. and so forth. and all resources with the new strategic direction. work groups. the nature of the organization is fundamentally and substantially altered – the organization is transformed.and second-order change. Kilmann has tested his model at AT&T.

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

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

This model shows how OD interventions can be linked to factors in the work setting. and rewards will affect organizing arrangements. 6. Interventions that focus on job design and work flow design will affect technology.Fig. 6. social factors. which determine organizational performance and individual development. strategies. OD interventions that focus on goals. which influence on-the job behaviours.2.3: The Burke Litwin Model of Organizational Performance and Change 6. management style. Interventions that focus on culture. Keep this framework in mind as you read the units on OD interventions because all interventions target one or more factors shown in figures. Following figure shows the work setting in the larger organizational framework. . The work setting plays a central role in this model and consists of four factors: organizing arrangements. it is described in a discussion by Porras and Peter Robertson. which in turn lead to individual and organizational improvements. and these behaviour changes occur when elements of the work setting have been modified by OD interventions. and technology. The premise modeled here is that work setting factors influence organizational members’ cognitions (they learn what is expected. according to Porras and Robertson. required. physical setting.4: Organizational Work-Setting Factors This model is extremely useful for OD practitioners and organizational leaders. rewarded). Organizational change occurs only when individuals change their behaviour.4 Porras and Robertson Model of Organizational Change Jerry Porras and his associates developed a model of how organization development works. For example. and interaction processes will affect social factors. Fig. It is how OD works. The basic premise is that OD interventions alter features of the work setting causing changes in individuals’ behaviours.

This section explains systems theory. and shows how systems theory enhances the practice of OD. 6." Hanna says: "A system is an arrangement of interrelated parts. that is the system.5: A Change-based Organizational Framework 6. and delineated by identifiable boundaries from its environmental supra.system." Von Bertalanffy refers to a system as a set of "elements standing in interaction. Thus. unitary whole composed of two or more interdependent parts." Kast and Rosenzweig define system as "an organized. describes the characteristics of systems.Fig. Systems theory is one of the most powerful conceptual tools available for understanding the dynamics of organizations and organizational change. .3 Systems Theory A second foundation of organization development is systems theory. components. when taking a systems approach. The words ‘arrangement’ and ‘interrelated’ describe interdependent elements forming an entity. and Katz and Kahn were the first to apply open systems theory to organizations in 1966. which views organizations as open systems in active exchange with their environment. Fagen defines system as "a set of objects together with relationships between the objects and between their attributes. interconnectedness. or subsystems. and interrelatedness among elements in a set that constitutes an identifiable whole or gestalt. one begins by identifying the individual parts and then seeks to understand the nature of their collective interaction. Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950." To summarize. system denotes interdependency.

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

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

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

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

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

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

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

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

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

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

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

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

Ralph Kilmann specified the critical leverage points for organizational change. _____________ means sum of the efforts of team members is far greater than the sum of individual efforts of members. –––––––––– gave the model “Beyond the Quick Fix”.These foundations of organization development form the theoretical and practice underpinnings of the field. they constitute the beginning of a theory of organization development and change that has enormous potential for improving organizational performance and individual development. Taken separately. 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. A _____________ is defined as “a set of elements standing in interaction.11 Terminal Questions 1. Bring out the essence of “managing beyond the quick fix” model of organizational development. . 3. Action research model combines learning and doing. 4. 2. A fundamental belief in OD is that work teams are the building blocks of organizations.” 5. The Burke-Litwin model emphasized on first-order and second-order change. –––––––––– means moving to new level of behaviour. First—order change is also called ___________. 6. Taken collectively. 2. Systems theory views organizations as open systems in active exchange with their environment. which in turn lead to individual and organizational improvements is the principle of Porras and Robertson model organizational change. OD interventions alter features of the work setting causing changes in individuals’ behaviours. 3.10 Summary The foundations of organizational development form the theoretical and practice underpinnings of the field. Self Assessment Questions 1. each is a powerful conceptual tool for thinking out and implementing change. 6. What are first-order and second order change according to Burke-Litwin Model of organizational change? Explain. Kurt Lewin introduced two ideas about change the first idea states that what is occurring at any point in time is a resultant in a field of opposing forces and the second is the model of the change process.

Refer section 6. Synergy Answers to TQs: 1. “Work teams are building blocks of organizational development. Transactional change 4. 6.2 Characteristics of Organization Culture Culture and . System 5. Ralph Kilmann 3.4. Refer section 6. Unfreezing 2. Refer section 6.2. Refer section 6.12 Answers to SAQs and TQs SAQs: 1.1 Introduction Objectives 7. What are the features of systems theory of organizational development? 5. Refer section 6.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 3. MU0002-Unit-07-Organization Climate Unit-07-Organization Culture and Climate Structure: 7.3 5.” Comment on this statement.1 2.3 4.2.2.

but also changing the corporate culture as well.6 Summary 7. organizational culture is the personality of the organization. you will be able to: · Understand Organization Culture. what members wear. and validated enough to be taught to new members as the correct ways of perceiving. Comprehensively organization culture is the pattern of basic assumptions that is invented. Objectives: After studying this unit.3 Types of Organization Culture. Martin and Meyerson. You can tell the culture of an organization by looking at the arrangement of furniture. Practitioners are coming to realize that. – similar to what you can use to get a feeling about someone’s personality. values. The concept of culture is particularly important when attempting to manage organization-wide change. Culture is comprised of the assumptions. · Describe different types of Organization Culture · Explain organization culture and effectiveness. Members of an organization soon come to sense the particular culture of an organization. . organizational change must include not only changing structures and processes. For example. the culture of a large. thinking. 7.8 Answers to SAQs and TQs 7. what they brag about. and feeling in relation to these problems (Schein. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. despite the best-laid plans.1 Introduction Basically.7.4 Organization Culture and Effectiveness 7. for-profit corporation is quite different than that of a hospital which is quite different than that of a university. discovered.5 Developing and changing Organization Culture Self Assessment Questions 7.7 Terminal Questions 7. norms and tangible signs (artifacts) of organization members and their behaviors. 1986). but everyone knows it when they sense it. etc. Culture is one of those terms that’s difficult to express distinctly.

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

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

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

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

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

7. the “culture contract” that individuals have bought into to guide their day-to-day thoughts. Expect to have some problems and find people who would rather move than change with the culture and. Assess the current culture.6 Summary . Guidelines for change Despite the significant barriers and resistance to change. Emotions. 3. 8. The personal feelings. _____are the visible manifestations of culture as seen in the physical and social environment of the organization. 6. Recruit outside personnel with industry experience. Include employees in the culture change process. habits. 5. especially when making changes in rules and processes. ________cultures are outward looking. so that they are able to interact well with the organizational personnel. Take out all trappings that remind the personnel of the previous culture. so that a consistent message is delivered from all management team members. 7. 2. These emotions will be a major input into the clash or compatibility of the two cultures. 9. Move quickly and decisively to build momentum and to defuse resistance to the new culture. attitudes. Simple guidelines such as the following can be helpful. 3. Self Assessment Questions 1. commitment. Make changes from the top down. if possible. 4.3. This attempt to change culture can take many different forms. 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. Stay the course by being persistent. take these losses early. Set realistic goals that impact on the bottom line. 1. organizational cultures can be managed and changed over time. 2. and patterns of daily behavior.

7. 2. Refer section 7. Market 3. 7. Organizations to be successful must be efficient and effective. Refer section 7. effectiveness through adaptive-coping cycle has been discussed. 3. Factors in organizational effectiveness include casual variables. Briefly explain different types of organizational culture. Effectiveness of an organization can be increased through economic man approach and administrative man approach.Organizational effectiveness is the degree to which organization is successful in accomplishing its goals.8 Answers to SAQs and TQs SAQs: 1.7 Terminal Questions 1. . Organizational effectiveness can be measured through various approaches. and strategic constituencies approach. Finally. Explain the characteristics of organization culture. behavioural approach. Refer section 7.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . system-resource approach. Causal variables Answers to TQs: 1. intervening variables and end-result variables and there exists interrelationship among these variables. Artifacts 2.2 2.goal approach. Discuss the development and change of organizational development.3 3.

Power. Organization Development Unit-08. and for change to occur in an organization.1 Introduction Objectives 8.7 Operating in a Political Environment 8.5 Organizational Politics Defined and Explored 8.11 Answers to SAQs and TQs 8. power must be exercised.3 Two Faces of Power 8. As Warner Burke observes: "Organization development signifies change.10 Terminal Questions 8.1 Introduction Politics and Power and politics.8 Acquiring and using Power Skills Self Assessment Questions 8.6 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. Politics and Organization Development Structure: 8.2 Power Defined and Explored 8. In this unit. we examine power and politics in relation to organization development.MU0002-Unit-08Power. must be understood if one is to be effective in organizations.4 Theories about the Sources of Social Power 8. That criticism was essentially correct for many years although it is less valid .9 Summary 8. indisputable facts of organizational life.” Organization development has been criticized for not taking into account power in organizations.

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

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

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

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

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

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

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

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

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

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

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

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

Power 2. Identify the bases of individual power and the respective strategies for their success. Refer section 8. Define organization politics.Refer section 8. Refer section 8. Explain the role of power and politics in the practice of OD.4 3.1 Introduction . Describe briefly various theories of power.2 2. Referent power 4. 3. McClelland 3. Refer section 8.11 Answers to SAQs and TQs SAQs: 1. Harold Lasswell 5. Personality Answers to TQs: 1. Refer section 8.2. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9.5 4. 5. 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .6 5. 8.

These programs are derived from careful diagnosis. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future. These methods are receiving increasing attention in Organization Development.4 Management By Objectives 9. In this dynamic and fluid environment. These interventions vary from standardized program that have been developed and sometimes tailored program. events intended to help an organization improve its performance and effectiveness.2 Meaning and Definitions 9.5 Quality Circles 9.10 Summary 9. An organization development intervention is a sequence of activities. organizational problems may repeat.8 Total Quality Management 9. Nothing is permanent except change because change is permanently changing. actions.3 Socio Technical Systems 9.9 Reengineering Self Assessment Questions 9.11 Terminal Questions 9.12 Answers to SAQs and TQs 9. One important intervention technique is Technostructural interventions because these are related to technical and structural issues such as how to divide labour and how to coordinate department which is related to Restructuring organization. Objectives: . how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival.6 Quality of Work Life Projects 9.7 Parallel Learning Structures 9.Objectives 9.

Organization Acceptance of Change. change can be introduced relatively rapidly by top management.After studying this unit. Basic reinforcement theories. and more . The cost of structural change is generally “front-end” loaded. Cost is Low. structural Interventions compare quite favorably with all other alternatives. 5. you will be able to: · Explain the Socio technical change. includes removing or adding layers to hierarchy. and OD practice enables the change agent to estimate the probable consequences of the change. · Discuss the Management By Objectives · Explain the Quality Circles. Weeks and months of group effort are saved. In addition. From a benefit cost analysis. Once diagnosed and an appropriate correction developed. Rapidity of change. 4. · Explain Reengineering. organization theory. meaning the major costs are associated with analysis and design of change. Downsizing associated with restructuring. their attractiveness is also increased by the following advantages: 1. Structure changes are normally “institutionalized” and less subject to this problem. · Discuss the parallel Learning Structures. 3. Succession Doesn’t Destroy Change Effort. Changes can involve decentralization and centralization. Advantages of Structural Interventions There are a number of reasons why a consultant should consider employing a structural intervention. · Explain Total Quality Management. Structural changes are consistent with their operating styles and are generally understood by practitioners. 9. This normally is a reasonable. 2.2 Meaning and Definitions Structural Intervention is related to the changes that relate elements of organization to one another. Managers and administrators are notoriously pragmatic. One problem with behavioral/ group interventions is the tendency for new managers or employees to discount or fail to continue the change program. Greater Predictability.

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

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

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.

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

Write a short note on Total Quality Management. Refer section 9.12 Answers to SAQs and TQS SAQs: 1.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 9. What are the advantages of structural interventions? 3. .11 Terminal Questions 1.2 3. Intervention 2. Discuss Socio Technical Systems? 2.3 2. Refer section 9. provides relevant information to all employees. 9. Quality circle Answers to TQs: 1. It is also called continuous quality represents a participative approach to employee involvement in problem solving and productivity improvement.5 4. ties reward to performance and increase workers knowledge and skills through extensive training. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. Drucker 3.Refer section 9. Explain Management By Objectives? 4. TQM pushes decision making power downwards in the organization. 9.

Nothing is permanent except change because change is permanently changing.7 Summary 10.8 Terminal Questions 10. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented). 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. and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other.6 Methods of Reducing Resistance to Change.3 Resistance to Change 10.4 Causes for Resistance to Change. cope with the ongoing changes successfully in the first instance. In this dynamic and fluid environment.2 Nature of Change 10.9 Answers to SAQs and TQs 10.1 Introduction Change in Organizations are increasingly realizing the fact that change is the price of the survival.1 Introduction Objectives 10. 10. Hence. organizational problems may repeat.MU0002-Unit-10-Managing Organization Development Unit-10-Managing Change in Organization Development Structure: 10. Self Assessment Questions 10. Objectives: .5 Impact of Change on the Future Manager 10.

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

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

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

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

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

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

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

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

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

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

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

at the level of individual and at the level of group. both at the formal and informal levels.10.6.9 Answers to SAQs and TQS SAQs: 1. 10.8 Terminal Questions 1. immediate. Organizational change 2. Refer section 10. Reference: . Economic factors. threatening to go on strike. Changes may be influenced by external and internal factors. People tend to resist many types of changes because new habits or sacrifices are required. Participation Answers to TQs: 1. Refer section 10. Explain the nature of change? 2. group resistance and vested interests. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. Organizational change is the alteration of work environment in an organization. Discuss the methods of reducing resistance to change. Resistance can be overt. Why do organizations resist change? 3. or deferred. Refer section 10. that is. implicit. 10. through group dynamics. social factors.2 2. Psychological factors 3.7 Summary Change is inevitable. or the like. For instance. It is easiest for management to deal with resistance when it is overt and immediate. psychological factors. Problem of overcoming resistance to change can be handled at two levels. engaging in a work showdown. It implies a new equilibrium between different components of the organization.4 3. a change is proposed and employees quickly respond by voicing complaints.

pdf http://www. New Robbbins.bus. Principles & Practice of Management. Organization Theory and Design.umd. New Delhi.1lowry. Modern Organization Development and http://www. Ltd. Pvt. 12th edition.pdf http://www. Organizational Behaviour. Educatiional Publishers.. Dhanpat Rai & Co. E References            http://fds.Singh. Thomson · Daft Richard L.pdf http://www. eighth edition. Prentice-Hall India. P. · T. Jain. · Laxmi Devi.wdi.htm#TopOfPage · Cummings & Worley. · J. Organizational Development. Organization Development & Change.htm P. Prentice-Hall of India Private Limited. Thomson South Western. · L.humtech. · James A. . Anmol Publications New Delhi. Principles and New Delhi. Sultan Chand & Sons.html http://muse.pdf http://webuser. Chhabra. French and Cecil H. Edward Freeman. Stoner and R. N. Management. Prentice-Hall of India. F.pdf www.kurims.managementtoday.· Wendell L. Jr. Organizational Management. New Delhi.fao. New Delhi.htm#anchor73776 Copyright © 2009 SMU Powered by Sikkim Manipal University .jhu.cfm http://www.Response Books. · Harigopal K.umich.work911. Bell. Prasad. Organization Development. · Stephens of Organization Change. Regal Publications New Prentice-Hall of India. · Stephen P.

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