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Unit-01-Introduction to Management Structure: 1.1 Introduction Objectives 1.2 Definitions of Management 1.3 Characteristics of Management 1.4 Scope and Levels of Management 1.5 Importance of Management 1.6 Role of Management 1.7 Administration and Management Self Assessment Questions 1.8 Summary 1.9 Terminal Questions 1.10 Answers to SAQs and TQs 1.1 Introduction Management is a global need. It is essential to every individual, a family, educational institution, hospital, religious organizations, team of players, a government, military systems, cultural body, urban centers and business enterprises. No individual can satisfy all his needs by himself. Men should join together and accomplish goals through co-operation. Whenever, there is an organized group of people working towards a common goal, some type of management is needed. A business enterprise must be directed and controlled by a group of people to achieve its goals. The resources of money, manpower, material and technology will be waste unless they are out to work in a co-ordinated manner. It is the ‘management’ which uses the available resources in such a manner that a business enterprise is able to earn ‘surplus’ to meet the needs of growth and expansion. Management is required to plan, organize, co-
ordinate and control the affairs of a business concern. It brings together all resources and motivates people to achieve the objectives of a business enterprise. Objectives: After studying this unit, you will be able to: · Define management. · Explain the characteristics of management. · Differentiate between management and administration. · State the principles of management. · Explain the roles of managers. · Explain managerial skills. 1.2 Definitions of Management Management may be defined in many different ways. Many eminent authors on the subject have defined the term “management”. Some of these definitions are reproduced below: According to Lawerence A. Appley – “Management is the development of people and not the direction of things.” In the words of George R. Terry – “Management is a distinct process consisting of planning, organizing, actuating and controlling performed to determine and accomplish the objectives by the use of people and resources.” According to James L. Lundy – “Management is principally the task of planning, co-ordinating, motivating and controlling the efforts of others towards a specific objective.” In the words of Henry Fayol – “To manage is to forecast and to plan, to organize, to command, to co-ordinate and to control.” According to Peter F. Drucker – “Management is a multi-purpose organ that manages a business and managers and manages worker and work”. In the words of Koontz and O’Donnel – “Management is defined as the creation and maintenance of an internal environment in an enterprise where individuals working together in groups can perform efficiently and effectively towards the attainment of group goals”.
According to Newman, Summer and Warren – “The job of management is to make co-operative endeavor to function properly. A Manager is one who gets things done by working with people and other resources.” From the definitions quoted above, it is clear that “management” is a technique of extracting work from others in an integrated and co-ordinated manner for realizing the specific objectives through productive use of material resources. Mobilizing the physical, human and financial resources and planning their utilization for business operations in such a manner as to reach the defined goals can be referred to as “management”. If the views of the various authorities are combined, management could be defined as a “distinct ongoing process of allocating inputs of an organization (human and economic resources) by typical managerial functions (planning, organizing, directing and controlling) for the purpose of achieving stated objectives, namelyoutput of goods and services desired by its customers (environment). In the process, work is performed with and through personnel of the organization in an ever-changing business environment.” From the above, it is clear that management refers to the process of getting activities completed efficiently and effectively with and through other people. The process represents the functions or primary activities engaged in by managers. These functions are typically labeled planning, organizing, leading, and controlling. Efficiency is a vital part of management. It refers to the relationship between inputs and outputs. If you can get more output from the given inputs, you have increased efficiency. Similarly, if you can get the same output from less input, you also have increased efficiency. Since managers deal with input resources that are scarce-mainly people, money and equipment-they are concerned with the efficient use of these resources. Management, therefore, is concerned with minimizing resource costs. Efficiency is often referred to as “doing things right”. However, it is not enough simply to be efficient. Management is also concerned with getting activities completed; i.e. it seeks effectiveness. When managers achieve their organization’s goals, we say they are effective. Effectiveness can be described as “doing the right things”. So efficiency is concerned with means and effectiveness with ends. Efficiency and effectiveness are interrelated. For instance, it is easier to be effective if one ignores efficiency. Timex could produce more accurate and attractive watches if it disregarded labour and material input costs. Some federal government agencies have been criticized regularly on the grounds that they are reasonably effective but extremely inefficient; that is, they get their jobs done but at a very high cost. Management is concerned, then, not only with getting activities completed (effectiveness), but also with doing so as efficiently as possible. Can organization be efficient and yet not effective? Yes, by doing the wrong things well. Many colleges have become highly efficient in processing students. By using computer-assisted learning, large lecture classes, and heavy reliance on part-time faculty, administrators have significantly cut the cost of educating each student. Yet students, alumni, and accrediting agencies have criticized some of these colleges for failing to educate their students properly. Of
It is the force which assembles and integrates other resources. These factors do not by themselves ensure production. the process of management involves decision-making and putting of decisions into practice. One may not see with the naked eyes the functioning of management but its results are apparently known. 3. All these resources are made available to those who manage. informed employees. 5. They must have the necessary ability and skills to get work accomplished through the efforts of others. Managers also seek to harmonize the individuals’ goals with the organizational goals for the smooth working of the organization. although they can’t observe it during operation. People often remark of the effectiveness (or ineffectiveness) of management on the basis of the end results. Its presence is evidenced by the result of its efforts-orderliness. 1. Intangible Force: Management has been called an unseen force. It is imperative that the organizational goals must be well-defined and properly understood by the mangers at various levels. namely. capital and materials. Integrative Force: The essence of management is integration of human and other resources to achieve the desired objectives. . 6. labour and capital. The success of management is measured by the extent to which the organizational goals are achieved. 2. It co-ordinates the efforts of workers to achieve the goals of the organization. And poor management is most often due to both inefficiency and ineffectiveness or to effectiveness achieved through inefficiency. they require the catalyst of management to produce goods and services required by the society. They must motivate the subordinates for the accomplishment of the tasks assigned to them. These functions are so interwoven that it is not possible to lay down exactly the sequence of various functions or their relative significance. In essence.course. experience and management principles for getting the results from the workers by the use of non-human resources. Economic Resource: Management is one of the factors of production together with land. Managers apply knowledge. It is the most critical input in the success of any organized group activity.3 Characteristics of Management Management is a distinct activity having the following salient features or characteristics: 1. Thus. buoyant spirit and adequate work output. Results through Others: The managers cannot do everything themselves. Goal-oriented: Management is a purposeful activity. directing and controlling. high efficiency is associated more typically with high effectiveness. management is an essential ingredient of an organization. Distinct Process: Management is a distinct process consisting of such functions as planning. labour. Thus. staffing. 4. organizing. feeling of management is result-oriented.
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. a hierarchy of command and control. manpower. According to Newman. the effective use of the five M’s of management (money. as we move down in the managerial hierarchy. It is bound together by a web of relationships between superiors and subordinates. Henri Fayol suggested that principles of management would apply more or less in every situation. on-going concern. principles and techniques which have wide applications. In other words. · Management as an economic resource Management is one of the factors of production along with land. materials. money and machines into a productive. Anthropology. Generally. In modern organizations. useful. management is viewed as an art. Since the skills acquired by a manager are his personal possession. · Management as a system of authority According to Herbison and Myers. System of Authority: Management as a team of managers represents a system of authority. government and hospital. productivity orientation drew its inspiration from Industrial Engineering and human relations orientation from Psychology. materials. According to Herbision and Myers. military. the degree of authority gets gradually reduced. Authority enables the managers to perform their functions effectively. The principles and techniques of management are equally applicable in the fields of business. For instance. management is the rule-making and rule-enforcing body. Sociology and Psychology. (ii) a system of authority. Universal Application: Management is universal in character. and (iii) a class or elite. discipline) taking the help of so many other disciplines such as Engineering. Managers at different levels possess varying degrees of authority.4 Scope of Management The scope of management is very wide.e. Sociology and Operations Research have also contributed to the development of management science. A Science and an Art: Management has an organized body of knowledge consisting of welldefined concepts. So it is treated as a science. machinery and methods or ways of doing things) depends to a great extent on the quality of management. Similarly. Much of the management literature is the result of association of these disciplines. 10. people . Multi-disciplinary Subject: Management has grown as a field of study (i. 1. management is required to covert the disorganized resources of men. education.7. Basically. 8. The application of these concepts. labour and capital. it refers to three distinct ideas. management may be understood as (i) an economic resource. how effectively and economically the five M’s are combined together to produce desired results. that is. 9. principles and techniques requires specialized knowledge and skills on the part of the manager.
and directing the operations to attain the objectives of the enterprise. Administrative management is concerned with “thinking” functions such as laying down policy. Middle management (departmental heads like work manage. 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 levels of management depend upon its size. Levels of Management An enterprise may have different levels of management.. his job is to see that the decisions are implemented. the term management refers to the group of individuals occupying managerial positions. ranks. · Management as a class or elite Sociologists view management as a distinct class in society having its own value system. As a separate group.e. its Chairman. We generally come across two broad levels of management. The real significance of levels is that they explain authority relationships in an organization.are bound by authority relationships. one can identify three levels of management namely: i) Top management of a company consists of owners/shareholders. Levels of management refer to a line of demarcation between various managerial positions in an enterprise. Considering the hierarchy of authority and responsibility. the upper level of management) and (ii) operating management (i.e. the lower level of management). or. day-to-day matters. Instructions and decisions downward and carry the problem and suggestions upward. Top management determines objectives and provides direction to enterprise activities.. Operative management is concerned with the “doing” function such as implementation of policies.) interprets and explains the policies framed by the top management. Managers working at top levels enjoy more authority than people working at lower levels. Managing Director. But in actual practice. . and the range of production. but as head of wages and salary department. Lower management (first line supervisors) is concerned with routine. wage and salary director of a company may assist in fixing wages and salary structure as a member of the Board of Directors. personnel manager etc. For instance. All the managers form the chief executive to the first line supervisors are collectively addressed as ‘Management’ which refers to the group. or the Chief Executive. The managerial class has become very important in modern organizations owing to its contribution to business success. (i) administrative management (i. technical facilities. or the General Manager or Executive Committee having key officers. They transmit orders. viz. planning and setting up of standards. finance manager. Board of Directors.
Marketing Manager. machines and methods to put the plans into action. e) To exercise effective control of the operations. They devote more time on the organization and motivation functions of management. and Divisional Sectional Officers working under these Functional Heads. c) To prepare the organizational set up in their own departments for fulfilling the objectives implied in various business policies. The important functions of top management include: a) To establish the objectives or goals of the enterprise. duties and responsibilities for timely implementation of the plans. 1. b) To make policies and frame plans to attain the objectives laid. The following are the main functions of middle management: a) To establish the objective or goals of the enterprise. Production Manager. Purchase Manager. b) To interpret the policies chalked out by top management. men. e) To assign activities. iii) Lower level or operative management of a company consists of Superintendents.ii) Middle management of a company consists of heads of functional departments namely. etc. . d) To assemble the resources of money. f) To provide overall leadership to the enterprise. It devotes more time on planning and co-ordinating functions. It is accountable to the owners of the business of the overall management. etc. Financial Controller. They provide the guidance and the structure for a purposeful enterprise. It is also described as the policy-making group responsible for the overall direction and success of all company activities. They are responsible to the top management for the functioning of their department. c) To set up an organizational framework to conduct the operations as per plans. policies and plans for the enterprise. Foremen. Supervisors. Without them the top management’s plans and ambitious expectations will not be fruitfully realized. Middle management: The job of middle management is to implement the policies and plans framed by the top management. Top management: Top management is the ultimate source of authority and it lays down goals.. d) To recruit and select suitable operative and supervisory staff. It serves as an essential link between the top management and the lower level or operative management. materials. 2.
k) To make suitable recommendations to the top management for the better execution of plans and policies.5 Importance of Management According to Drucker. They have to get the work done through the workers. evaluate their performance and report to the middle level management. an organization is merely a collection of men. Lower or operative management: It is placed at the bottom of the hierarchy of management. h) To co-operate with the other departments for ensuring a smooth functioning of the entire organization. i) To collect reports and information on performance in their departments. A right climate is created for workers to put in their best and show superior performance. They allot various jobs to the workers. 1. Their authority and responsibility is limited. the working of an enterprise will become random and haphazard in nature. (ii) Effective leadership and motivation: In the absence of management. and actual operations are the responsibility of this level of management. accounts officers and so on. They are also involved in the process of decisions-making. 3. In its absence. It enables employees to move cooperatively and achieve goals in a coordinated manner. They are in direct touch with the rank and file or workers. They pass on the instructions of the middle management to workers. Management creates teamwork and .f) To compile all the instructions and issue them to supervisors under their control. Management makes group effort more effective. It helps in putting the resources to the best advantage within the limitations set by the organization and its environment. (i) Optimum use of resources: Management ensures optimum utilization of resources by attempting to avoid wastage of all kinds. management is the dynamic lift-giving element in every organization. It consists of foreman. They devote more time in the supervision of the workers. g) To motivate personnel to attain higher productivity and to reward them properly. sales officers. 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. the resources of production remain resources and never become production. supervisors. money and material. machines. j) To report to top management. It is the activating force that gets things done through people. The importance of management can be understood from the following points. Without management. They are concerned with direction and control functions of management. They interpret and divide the plans of the management into short-range operating plans.
government policy. often threaten the survival of a firm. manager tries to strike a happy balance between the demands of employees and organizational requirements. In the final analysis. all these help in realizing goals with maximum efficiency. Management as a profession By a professional manager. (iv) Achievement of goals: Management plays an important role in the achievement of objectives of an organization. and specialized knowledge.motivates employees to work harder and better by providing necessary guidance. a profession possesses the following characteristics: i) A body of principles. (vi) Improves standard of living : Management improves the standard of living of people by (a) using scarce resources efficiently and turning out profits.. skills. Objective can be achieved only when the human and non-human resources are combined in a proper way. An enterprise has to take note of these changes and adapt itself quickly. Overlapping efforts and waste motions are avoided. techniques. etc. Organize the resources properly. With a view to realize the predetermined goals-managers plan carefully. They initiate prompt actions whenever workers express dissatisfaction over organizational rules. methods. counseling and effective leadership. They try to put everything on the right tract. According to McFarland. (c) Exploiting new ideas for the benefit of society as a whole and (d) developing employee talents and capabilities while at work and prompting them to show peak performance. competition. ii) Formalized methods of acquiring training and experience. procedures and reward systems. To this end. (b) Ensuring the survival of the firm in the face of continued changes. 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. Successful managers are the ones who anticipate and adjust to changing circumstances rather than being passively swept along or caught unprepared. forecasting combined with efficient use of resources) and taking appropriate steps. Thus unnecessary deviations. Industrial peace is an essential requirement for increasing productivity. Management is goal-oriented. Managers help an organization by anticipating these changes (carefull planning. (v) Change and growth: Changes in technology. (iii) Establishers sound industrial relations: Management minimizes industrial disputes and contributes to sound industrial relations in an undertaking. hire competent people and provide necessary guidance. iii) The establishment of a representative organization with professiona-lizing as its goal. Failure to take note of customer’s needs regarding full efficiently has spelt doom for ‘Ideal java’ in the two-wheeler market in India. .
management is not as exact as natural sciences. What he discovered challenged several long-held notions about the manager’s job.. manipulating prices and markets are by no means uncommon management practices. However. and v) The charging of fees based on the nature of services. Management partially fulfils the third characteristic of profession. For instance. However. Management is also a profession in the sense that formalized methods of training is available to those who desire to be managers.iv) The formation of ethical codes for the guidance of conduct. Management is a profession to the extent it fulfils the above conditions. Henry Mintzberg did a careful study of five chief executives at work. In fact. Training facilities are provided in most companies by their training divisions. It is a profession in the sense that there is a systematized body of management. an art as well as a profession. A number of organizations such as the Administrative Staff College of India. Some individual business organizations. however. It may be concluded from the above discussion that management is a science. Management does not fulfill the last two requirements of a profession. little regard is paid to the elevation of service over the desire for monetary compensation is evident by switching of jobs by managers.6 Role of Management In the late 1960s. There are a number of representative organizations of management practitioners almost in all countries such as the All India Management Association in India. Indeed such mobile managers are regarded as more progressive and modern than others. We have a number of institutes of management and university departments of management which provide formal education in this field. the All India Management Association. It has also developed a vast number of tools and techniques. There was little time for reflective thinking because the managers encountered . etc. do not seem to adhere to the principle of “service above self”. sabotaging trade unions. As a social science. managers in general. a management degree is not a pre-requisite to become a manager. Furthermore. identifiable discipline. unpatterned. and it is not as fully a profession as medicine and law. But unlike medicine or law. the American Management Association in U.S.A. 1. try to develop a code of conduct for their own managers but there is no general and uniform code of conduct for all managers. and the university departments of management offer a variety of short-term management training programmes. none of them has the professionalizing of the management as its goal. Mintberz found that his managers engaged in a large number of varied. the Indian Institute of Management. and short-duration activities. bribing public officials to gain favours. in contrast to the predominant views at the time that managers were reflective thinkers who carefully and systematically processed information before making decisions. Management Development Institute. There is no ethical code of conduct for managers as for doctors and lawyers. and it is distinct.
training. motivating. and associated duties. to some degree. Typically. This role includes hiring. and the like. they do so by reading magazines and talking with others to learn of changes in the public’s tastes. When that sales manager confers with other sales executives through a marketing trade association. 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. Mintzberg concluded that managers perform ten different but highly interrelated roles. All managers have a role as a leader. training. Mintzberg called this the monitor role.constant interruptions. When they represent the organisation to outsiders. he or she has an outside liaison relationship. obliged to Greeting visitors. Table 1. . Mintzberg provided a categorization scheme for defining what managers do based on actual managers on the job. duties of a legal or social nature.1: Mintzberg’s Managerial Roles Role Interpersonal Figurehead Description Identifiable Activities Leader Symbolic head. Informational Roles: All managers. what competitors may be planning. Managers also act as a conduit to transmit information to organizational members. signing perform a number of routine legal documents. he or she is acting in a figurehead role. manages also perform a spokesperson role. fulfill informational roles-receiving and collecting information from organizations and institutions outside their own. subordinates. These ten roles can be grouped as those primarily concerned with interpersonal relationships. and may be inside or outside the organization. and decision-making. These sources are individuals or groups outside the manager’s unit. the transfer of information. and disciplining employees. Responsible for the motivation Performing virtually all and activation of subordinates. activities that involve responsible for staffing. But in addition to these insights. This is the disseminator role. Mintzberg described this activity as contacting external sources who provide the manager with information. The third role within the interpersonal grouping is the liaison role. The sales manager who obtains information from the human resources manager in his or her same company has an internal liaison relationship. Half of these managers’ activities lasted less than nine minutes each. The term ‘management roles’ refers to specific categories of managerial behaviour. Interpersonal Roles: All managers are required to perform duties that are ceremonial and symbolic in nature – interpersonal roles.
emerges as nerve center of internal and external information about the organization. results. making phone subordinates to members of calls to relay information. policies. Seeks and receives wide variety Reading periodicals and of special information (much of reports. understanding of organization and environment. Transmits information received Holding informational from outsides or from other meetings. media. projects” to bring about change. some involves interpretation and integration of diverse value positions of organizational influencers.Liaison Maintains self-developed Acknowledging mail. performing all kinds – in effect. etc. unexpected involve disturbances and disturbances crises Responsible for the allocation Scheduling. serves as expert on organization’s industry. supervises design of certain projects as well. outsiders on organization’s giving information of the plans. performing other favors and information. requesting of organizational resources of authorization. Transmits information to Holding board meetings. Responsible for corrective Organizing strategy and action when organization faces review sessions that important. Searches organization and its Organizing strategy and environment for opportunities review sessions to and initiates “improvement develop new programs. network of outside contacts doing external board and informers who provide work. activities that involve outsiders. the organization – some information is factual. actions.. the making any activity that involves or approval of all significant budgeting and the Informational Monitor Disseminator Spokesperson Decisional Entrepreneur Disturbance handler Resource allocator . maintaining it current) to develop thorough personal contacts.
Conversely. managers perform as negotiators when they discuss and bargain with other groups to gain advantages for their own units. or manufacturing. Technical Skills: First-line managers. research by Robert L. He also found that the relative importance of these skills varied according to the manager’s level within the organization. figurehead. as well as many middle managers. Responsible for representing Participating in union the organization at major contract negotiations. finance. an accounts payable manager must be proficient in accounting rules and standardized . managers initiate and oversee new projects that will improve their organization’s performance. As resource allocators. Managers need certain skills to perform the duties and activities associated with being a manager. such as engineering. and conceptual. physical and monetary resources. Technical skills include knowledge of and proficiency in a certain specialized field.organizational decisions. and spokesperson are more important at the higher levels of the organization than at the lower ones. Negotiator programming of subordinates work. Inc. are heavily involved in technical aspects of the organization’s operations. As entrepreneurs. managers take corrective action in response to previously unforeseen problems. The evidence generally supports the idea that managers – regardless of the type of organization or level in the organization-perform similar roles. The Nature of Managerial Work (New York: Harper & Row. Specifically. Last. human. Publishers. negotiator. computers. Katz found that managers need three essential skills or competencies: technical. negotiations. a manager’s job is varied and complex. However. the emphasis that managers give to the various roles seems to change with hierarchical level. During the early 1970. Source: Henry Mintzberg. the roles of disseminator. Decisional Roles: Finally. As disturbance handlers. Reprinted by permission of Harper & Row. pp 93-94 Copyright Ó 1973 by Hency Mintzberg. Managerial Skills As you can see from the preceding discussion. managers are responsible for allocating human. Mintzberg identified four decisional roles which revolve around the making of choices. An Evaluation: A number of follow-up studies have tested the validity of Mintzberg’s role categories across different types of organizations and at different levels within given organizations. the leader role is more important for lowerlevel managers than it is for either middle-or-top-level managers. For example. liaison. 1973).
etc. 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. Spriegal and Lansburg. ii) Management is a generic term and includes administration. Some writers do not see any difference between the two terms. motivate. Managers with good human skills can get the best out of their people. management is a lower-level function and is concerned primarily with the execution of policies laid down by 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. According to them. Those who held management and administration distinct include Oliver Sheldon. Floerence and Tead. Although technical skills become less important as manager moves into higher levels of management. 1. administration is a higher level function. and inspire enthusiasm and trust. These abilities are essential to effective decision-making. lead. it remains just as important at the top levels of management as it is at the lower levels. In fact. Conceptual Skills: Managers also must have the ability to think and to conceptualize about abstract situations. Thus. They know how to communicate.forms so that she can resolve problems and answer questions that her accounts payable clerks might encounter. this skill is crucial.7 Administration and Management The use of two terms ‘management’ and ‘administration’ has been a controversial issue in the management literature. and all managers are involved in making decisions. 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. Human Skills: The ability to work well with other people both individually and in a group is a human skill. But some English authors like Brech are of the opinion that management is a wider term including administration. while others maintain that administration and management are two different functions. Since managers deal directly with people. iii) There is no distinction between the terms ‘management’ and ‘administration’ and they are used interchangeably. Administration is a higher level function: . even top managers need some proficiency in the organization’s speciality.
Status Administration refers to Management is relevant higher levels of management.. objectives. It is a execution of decisions. at lower levels of management. of human resources. Nature Administration relates to the Management relates to decision-making. 4. administrative decisions.e. Managers are Administrators are basically concerned mainly with concerned with planning and organisation and direction control.Administration determines Management decides who Making what is to be done and when shall implement the it is to be done. management as an executive function which is primarily concerned with carrying out of the broad policies laid down by the administration.2: Distinction between Administration and Management: Basic 1. whereas management refers to execution of policies laid down by administration. 7. Administration is a determinative function. This view is held by Tead. Spriegel and Walter. 3. on the other hand. 6. 8. 2.Administration refers to policy-making. Direction of It is concerned with leading It is concerned with Human Resources and motivation of middle leading and motivation of level executives. Environment Administration has direct Management is mainly interaction with external concerned with internal environment of business and forces. Table 1. of the organisation. Decision. environmental forces. i. It thinking function. is a doing function. Scope It is concerned with It is concerned with the determination of major implementation of objectives and policies. operative workforce for the execution of plans. plans and policies through and with others. Thus. administration involves broad policy-making and management involves the execution of policies laid down by the administration. Usage of Term The term ‘administration’ is The term ‘management’ is often associated with widely used in business . 5. 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. policies. making strategic plans to deal plans and policies of the effectively with the organisation. Meaning Administration Management Administration is concerned Management means with the formulation of getting the work done objectives.
Self Assessment Questions in the 1.9 Terminal Questions 1. public organisations sector and non-business private sector. Five M’s of management (________. __________is principally the task of planning. Still management is not completely a profession.10 Answers to SAQs and TQs SAQs: 1. Define management. 1. Human skills are important at all managerial levels. Managers perform different roles to discharge their responsibilities. Explain its characteristics. motivating and controlling the efforts of others towards a specific objective. Discuss the importance of management.8 Summary Management is concerned with getting things done through other people. ___________. Money. 2. machinery and methods or ways of doing things) depends to a great extent on the quality of management. There are three levels of management-top.government offices. materials. _________. organisations. 3. Management 2. teamwork . 1. manpower 3. middle and lower. 3. Management creates ________ and motivates employees to work harder and better by providing necessary guidance. 2. It is the management which transforms physical resources of an organization into productive resources. co-ordinating. Management is largely found at the middle and lower levels and administration is found at the higher levels. Lower level managers require and use a greater degree of technical skill and managers at higher levels use a greater degree of conceptual skill. 1. counseling and effective leadership. Bring out the difference between Administration and Management.
7 Motivating Self Assessment Questions 2. Refer section 1.10 Answers to SAQs and TQs .4 Organizing 2.5 Staffing 2.3 2.8 Summary 2.2 Process of Management 2.6 Directing 2.3 Planning 2.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .1 Introduction Objectives 2. Refer section 1. Refer section 1.2.9 Terminal Questions 2.5 3.1.Answers to TQs: 1. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.
Planning 2. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent. Objectives: After this studying this unit. Management is about accomplishing a goal efficiently. Controlling However. Coordinating 5. leadership is doing the right things“. · Explain Planning. Even . you will be able to: · Define Management process. Organizing. Policy Formulation We have noted earlier that all organizations have well-defined goals and objectives. 2. leadership is about setting the desirable goals. Organizing 3. as the action of measuring a quantity on a regular basis and of adjusting some initial plan. One can also think of management functionally. the two are not quite the same. Directing. Staffing. Management functions are as follows (Fayol.1 Introduction Follett (1933) defined management as "the art of getting things done through people”. You might well ask what the need for a policy is when objectives are already defined.2 Management Process Peter Drucker said: “Management is doing things right. Through leadership and management often overlap. 1949): 1. Commanding 4. in recent time. There is a degree of overlap between the two. management functions have been regrouped into four categories. Motivating. · Explain different functions of management Process. It is difficult to say where objectives end and policies begin.2.
The tasks of the strategic planning process include the following steps: Define the mission: A mission is the purpose of the organization. However. fuel and machine efficiency. a process in which one chooses a course which one thinks is the best. studies on passenger comfort. and allocating resources. establishing strategies for achieving these goals. Decision – Making Taking decisions is a process. overall goals. Planning in order to be useful must be linked to the strategic intent of an organization. what distinguishers policies form objectives is that you first decide the objective. It provides the direction for the other functions of management and for effective teamwork. A mission statement should be short – and should be easily understood and every employee should ideally be able to narrate it from memory. thus. All levels of management engage in planning in their own way for achieving their preset goals. Every organization needs to plan for change in order to reach its set goal. An explicit mission guides employees to work independently and yet collectively toward the realization of the organization’s potential. The mission statement may be accompanied by an overarching . and developing plans to integrate and coordinate activities. Objectives are the ends. planning begins with clearly defining the mission of the organization. In the football field. it is not a decision in which any process is involved. Therefore. should precede a good deal of research involving market surveys. the decision to change the design of a product. say a passenger car. and then set out the method for achieving it. Planning also enhances the decisionmaking process.3 Planning It involves the process of defining goals. or where you want go to. planning is often referred to as strategic in nature and also termed as strategic planning. Effective planning enables an organization adapt to change by identifying opportunities and avoiding problems. summarizing what the organization does. 2. The mission statement is broad. is an enduring decision which holds good on a continuing basis to guide the members of the organization in doing what they are called upon to do. while a policy. driving comfort.so. kicking the ball with the left foot or right foot is a reflex action. 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. Thus. policies are the means to achieve those ends. cost structure and so on. it would be correct to assume that an objective is what you want to accomplish. general strategies.
What is our market share? 5. What are the possible new markets? . Analyzing strengths and weaknesses comprises the internal assessment of the organization. professional. Threats) analysis is vital for the creation of any strategic plan.statement of philosophy or strategic purpose designed to convey a vision for the future as envisaged by top management. Sources of information may include stakeholders like. professional or trade associations (conventions and exhibitions). How skilled is our workforce? 4. federal. suppliers. and trade). Opportunities. Are the facilities outdated? 3. customers (internal and external). How efficient is our manufacturing? 3. What makes the organization distinctive? 2. Do we have a superior reputation? For assessing the weaknesses of the organization the following questions are important: 1. What financing is available? 6. The SWOT analysis begins with a scan of the external environment. SWOT analysis provides the assumptions and facts on which a plan will be based. Is research and development adequate? 4. governments (local. Are the technologies obsolete? For identifying opportunities the following elements need to be looked at: 1. journals and reports (scientific. For assessing the strengths of the organization the following questions are important: 1. international). Weaknesses. Organizations need to examine their business situation in order to map out the opportunities and threats present in their environments. In which areas is the competition not meeting customer needs? 2. state. What are the vulnerable areas of the organization that could be exploited? 2. Conduct a situational or SWOT analysis A situation or SWOT (Strengths.
Set goals and objectives Strategic goals and objectives are developed to fill the gap between current capability and the mission. the best strategy is one that fits the organization’s strengths to opportunities in the environment. Objectives are also called performance goals. Benchmarking systematically compares performance measures such as efficiency. Are our rivals weak? 5. Comparing the organization to external benchmarks (the best practices) is used to assess current capabilities. organizations have longterm objectives for factors such as. earnings per share. Strategic. What are the new regulations? 6. It also helps in setting minimum acceptable standards or common-sense minimums. The SWOT analysis is used as a baseline for future improvement. Are market tastes changing? 5. and operational planning . They are aligned with the mission and form the basis for the action plans of an organization. return on investment. What substitute products exist? In general terms. or outcomes of an organization against similar measures from other internal or external organizations. operational plans are based on the organization’s tactical plans. In turn. etc. Is there a possibility of growth of existing market?) Identifying threats involves the following: 1. tactical. Develop related strategies (tactical and operational) Tactical plans are based on the organization’s strategic plan. What are the emerging technologies? 6. Generally. In which areas does the competition meet customer needs more effectively? 2. as well as gap analysis. Are there new competitors? 3. effectiveness. These are specific plans that are needed for each task or supportive activity comprising the whole. What is the strength of the economy? 4. Is there a shortage of resources? 4.3.
2. Group related jobs together in a logical and efficient manner 5. An organization chart displays the organizational structure and shows job titles.5 Staffing . It is the official organizational structure conceived and built by top management. how the tasks are to be grouped. 2. Monitor the plan A systematic method of monitoring the environment must be adopted to continuously improve the strategic planning process. Formalization is an important aspect of structure. and coordinating the work components to achieve organizational goal. Organizational structure is the formal decision-making framework by which job tasks are divided. List all tasks to be accomplished 3. Feedback is encouraged and incorporated to determine if goals and objectives are feasible. necessary to maintain competitive advantage in the said market. structuring.4 Organizing It involves designing. procedures. The formal organization can be seen and represented in chart form. To develop an environmental monitoring procedure. A key issue in accomplishing the goals identified in the planning process is structuring the work of the organization. lines of authority.must be accompanied by controls to ensure proper implantation of the plans. Assign work to individuals 6. Organizations are groups of people. working toward common goals. and where decisions are to be made. who is to do. Divide tasks into groups one person can accomplish – a job 4. Delegate authority to establish relationships between jobs and groups of jobs. It is the process of determining what tasks are to be done. short-term standards for key variables that will tend to validate and support the long-range estimates must be established. The steps in the organizing process include: 1. The purpose of the organizing function is to make the best use of the organization’s resources to achieve organizational goals. and goals are clearly stated. Review plans 2. grouped. and coordinated. and relationships between departments. who reports to whom. It is the extent to which the units of the organization are explicitly defined and its policies. with ideas and resources. This review is used for the next planning cycle and review.
Pervasiveness of Staffing: Effective execution of staffing function is the responsibility of all managers in the organization. 2. Theo Haimann – “Concerned with the placement. money. promotion. placement. Definition: 1. 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. performance appraisal etc. materials. inventorying the people available. development. Staffing refers to the managerial function of determining and improving the manpower requirements of an enterprise. transfer and appraisal of personnel to fill the organizational positions. compensation and training of needed people”. 3. It has many sub-functions: Staffing involves determination of the manpower requirement. 3. Koontz. selection. Deals with people: Staffing is a separate managerial function which deals with people in the organization. Managers of the concerned departments are responsible for the selection and development of qualified people for their department and maintain them in their department. recruitment. Therefore it is the responsibility of the management to secure and maintain competent and dedicated workforce including managers and operatives. It involves many sub-functions such as manpower planning. 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. 4. growth and development of all those members of the organization whose function is to get things done through the efforts of other individuals”. training.It is not the machines. 2. Curther Geelick Cyndall Urwick – “Staffing is the whole personnel function of brining in and training the staff and marinating of favorable conditions of work” Features of Staffing The analysis of the above definitions highlights the following features: 1. placement. O’Donnell & Weihrich have defined staffing as “filling positions in the organization structure through identifying work force requirements. . recruitment. This task has been referred to as staffing. appraisal. selection.
selection. lead them and guide them on a continuous basis. management initiates actions in the organization. 7. promotion. Personnel policies and programs must be formulated as guides to perform the staffing function effectively. It is a process: it is a process having a logical sequence i. identifying the manpower requirements. induction. Direction is an important managerial function. how to do and telling them to do to the best of their ability. Thus staffing deals with the future requirements also. Present positions must be filled keeping in mind the future requirements. 8. training development and maintenance of personnel. 2. vacancies arise out of retirement.e. It is a continuous function: With the growth and expansion of business additional manpower is needed.5.6 Directing Direction is one of the functions of management. Direction is the managerial function of guiding. resignation. It is an important managerial function. Through direction. It deals with future requirements: Staffing deals with current and future personnel requirements. 6. Direction is continuous process and it continues throughout the life-time of 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”. It is instructing people as to what to do. 2. A manger needs to give orders to his subordinates. Characteristics of Direction The characteristic features of direction are as follow: 1. . It is a continuing function. overseeing and leading people. motivate them. Thus staffing is an ongoing process through – out the life of an organization. Definition According to Koontz and O’Donnel. 3. 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. recruitment. Direction function is performed at every level of management. etc.
and other bodily needs . coach and supervise his subordinates. As Theo Haimann puts it. 2. Essence of performance: Directing is the process around which all performances revolve. the more individuality. it aims at getting things done by subordinates and.4. the number of subordinate he has and the other duties he is expected to perform. Theories X and Y. The needs are arranged in order of importance. 3. satisfied needs cannot. nothing or at the best very little would be accomplished”. will vary depending upon his level. proposed by Maslow (1943). The five needs are: · Physiological: Includes hunger. Maslow’s Hierarchy of Needs Theory According to this theory. from the basic to the complex. 4. The amount of time and effort an executive spends in directing however. humanness and psychological health a person will show. without guiding and overseeing subordinates. It emphasizes that a subordinate is to be directed by his own superior only. shelter. human beings have wants and desires which influence their behaviour. The person advances to the next level of needs only after the lower level need is at least minimally satisfied. Nature of Directing The nature of directing can be discussed under the following: 1. The manager never ceases to direct. The further they progress up the hierarchy. organizing and staffing on one hand and controlling on the other. on the other. thirst. and the Two-Factor theory. On the one hand. It is an important function of management: Directing is an important management function which provides a connecting link between planning. 5. Continuous function: Directing is a continuous process. Direction imitates at the top level in the organization and follows to bottom through the hierarchy. “without the issuance of directives. Directing is the process around which all performances revolve. 2.7 Motivating Motivating In the 1950s three specific theories were formulated and are the best known: Hierarchy of Needs theory. only unsatisfied needs can influence behavior. teach. Pervasive function: Directing is a managerial function performed by all mangers at all levels of the organization. to provide superiors opportunities for some more important work which their subordinates cannot do. guide. sex. Direction has dual objectives.
self-motivated. and exercise self-control. Higher-order needs are satisfied internally. autonomy and empowerment. Physiological and safety needs are described as lower-order. such as. Theory X – In this theory management assumes employees are inherently lazy and will avoid work. It is also assumed that workers generally place security above all other factors and will display little ambition. It is believed that employees enjoy their mental and physical work duties. and friendship · Esteem: Includes internal esteem factors. Theory Y – In this theory management assumes employees may be ambitious. and self-fulfillment Maslow separated the five needs into higher and lower orders. such as. belongingness. 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. autonomy. includes growth.· Safety: Includes security and protection from physical and emotional harm · Social: Includes affection. From the above. whereas. self-respect. esteem. if given the chance employees have the desire to be creative and forward thinking in the workplace. Lower-order needs are predominantly satisfied. achieving one’s potential. if they can. Social. status. It is also believed that. it is clear that Theory X assumes that lower-order needs dominate individuals. recognition. Workers need to be closely supervised and a comprehensive system of controls and a hierarchical structure is needed to supervise the workers closely. acceptance. and attention · Self-actualization: The drive to become what one is capable of becoming. and external esteem factors. and self-actualization are classified as higherorder needs. and achievement. externally. There is a chance for greater productivity by giving employees the freedom to perform to the best of their abilities without being bogged down by rules. Theory Y assumes that higher-order needs dominate individuals. self-direction. Herzberg’s Two Factor Theory . anxious to accept greater responsibility.
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. supervision. and where decisions are to be made. Motivators are intrinsic factors. emphasize factors intrinsically rewarding that are associated with the work itself or to outcomes directly derived from it. Removing dissatisfying characteristics from a job does not necessarily make the job satisfying. Presence of these factors ensure job satisfaction.8 Summary Management is the art of getting things done through people. motivators describe a person’s relationship with what she or he does. many related to the tasks being performed. Self Assessment Questions 1. Extrinsic factors. . Organization involves designing. but their presence does not motivate or create satisfaction. and achievement. neither will they be satisfied. responsibility. It is the process of determining what tasks are to be done. It involves many sub-functions such as manpower planning.Herzberg (1959) constructed a two-dimensional paradigm of factors affecting people’s attitudes about work. working conditions. people will not be dissatisfied. such as. To motivate people. advancement. 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. such as. interpersonal relations. and developing plans to integrate and coordinate activities. In summary. 3. ____defined management as the art of getting things done through people. recognition. performance appraisal etc. Hygiene factors on the other hand. and salary are hygiene factors. _______refers to the managerial function of determining and improving the manpower requirements of an enterprise. Job satisfaction factors are separate and distinct from job dissatisfaction factors. establishing strategies for achieving these goals. who is to do. Every organization needs to plan for change in order to reach its set goal. The _____analysis begins with a scan of the external environment. how the tasks are to be grouped. company policy. When hygiene factors are adequate. and coordinating the work components to achieve organizational goal. recruitment. 2. have to do with a person’s relationship to the context or environment in which she or he performs the job. Planning involves the process of defining goals. 2. who reports to whom. The absence of hygiene factors can create job dissatisfaction. These two factors are motivators and hygiene factors and this theory is also called motivation-hygiene theory. Staffing refers to the managerial function of determining and improving the manpower requirements of an enterprise. structuring.
5 3. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3. 2. SWOT 3.10 Answers to SAQs and TQs SAQs: 1. Write a short not on directing. What is planning? 2.6 Copyright © 2009 SMU Powered by Sikkim Manipal University .3 2. Reference 2. Reference 2.2.1 Introduction Objectives .9 Terminal Questions 1. Explain Staffing in detail 3. Staffing Answers to TQs: 1. Reference 2. Follett 2.
3.2 Definitions 3.3 Characteristics of OD 3.4 Categories of OD 3.5 Goals of OD 3.6 OD and Management Development 3.7 Role of OD 3.8 Problems in OD Self Assessment Questions 3.9 Summary 3.10 Terminal Questions 3.11 Answers to SAQs and TQs 3.1 Introduction Organization development is the applied behavioural science discipline dedicated to improving organizations and the people in them through the use of the theory and practice of planned change. Organizations face multiple challenges and threats today – threats to effectiveness, efficiency, and profitability; challenges from turbulent environments, increased competition, and changing customer demands; and the constant challenge to maintain congruence among organizational dimensions such as technology, strategy, culture, and processes. Keeping organizations healthy and viable in today’s world is a daunting task. Individuals in organizations likewise face multiple challenges – finding satisfaction in and through work, fighting obsolescence of one’s knowledge and skills, maintaining dignity and purpose in pursuit of organizational goals, and achieving human connectedness and community in the workplace. Simple survival – continuing to have an adequate job – is a major challenge today in the light of constant layoffs and cutbacks. Although new jobs are being created at record rates, old jobs are being destroyed at an accelerating pace. “Knowledge” work is replacing “muscle” work. In summary, organizations and the individuals in them face an enormously demanding present and future. Are any strategies available to help people and organizations cope, adapt, survive, and even prosper in these vexing times? Fortunately, the answer is “yes”. A variety of solutions exists. And organization development (OD) is one of them. Basically, organization development is a
process of teaching people how to solve problems, take advantage of opportunities, and learn how to do that better and better over time. OD focuses on issues related to the “human side” of organizations by finding ways to increase the effectiveness of individuals, teams, and the organization’s human and social processes. Organization development is a relatively recent invention. It started in the late 1950s when behavioural scientists steeped in the lore and technology of group dynamics attempted to apply that knowledge to improve team functioning and inter-group relations in organizations. Early returns were encouraging, and attention was soon directed toward other human and social processes in organizations such as the design of work tasks, organization structure, conflict resolution, strategy formulation and implementation, and the like. The field of OD grew rapidly in the 1970s and the 1980s with thousands of organizations in the private and public sectors using the theory and methods of OD with great success. Today, organization development represents one of the best strategies for coping with the rampant changes occurring in the marketplace and society. We predict that organization development will be preferred improvement strategy in future. Objectives: After studying this unit, you will be able to: · Define organization development. · Explain the characteristics of OD. · Discuss the categories of OD programme. · State the goals of OD. · Distinguish between OD and Management Development · Explore the problems in OD. 3.2 Definitions Organization Development (OD) is a response to change, a complex educational strategy intended to change the beliefs, attitudes, values and structure of organization so that they can better adapt to new technologies, markets, and challenges, and the dizzying rate of change itself. (Bennis, 1969). OD can be defined as a planned and sustained effort to apply behavioural science for system improvement, using reflexive, self-analytic methods. (Schmuck and Miles, 1971)
Organizational development is a process of planned change- change of an organization’s culture from one which avoids an examination of social processes (especially decision making, planning and communication) to one which institutionalizes and legitimizes this examination. (Burke and Hornstein, 1972) The aims of OD are: 1) Enhancing congruence between organizational structure, processes, strategy, people, and culture; 2) Developing new and creative organizational solutions; and 3) Developing the organization’s self-renewing capacity (Beer, 1980). Organization development is an organizational process for understanding and improving any and all substantive processes an organization may develop for performing any task and pursuing any objectives…. A “process for improving processes” – that is what OD has basically sought to be for approximately 25 years (Vaill, 1989) “Organizational development is a set of behavioural science-based theories, values, strategies, and techniques aimed at the planned change of the organizational work setting for the purpose of enhancing individual development and improving organizational performance, through the alteration of organizational members’ on-the-job behaviours.” (Porras and Robertson, 1992) “OD is a systematic application of behavioral science knowledge to the planned development and reinforcement of organizational strategies, structure, and processes for improving an organization’s effectiveness.” (Cummings and Worley, 1993) “Organization development is a planned process of change in an organization’s culture through the utilization of behavioural science technologies, research, and theory.” (Burke, 1994) As you can see, these definitions overlap a great deal (that’s encouraging), and contain several unique insights (that’s enlightening). All authors agree that OD applies behavioural science to achieve planned change. Likewise, they agree that the target of change is the total organization or system and that the goals are increased organizational effectiveness and individual development. Collectively, these definitions convey a sense of what organization development is and does. They describe in broad outline the nature and methods of OD. There is no set definition of OD and no agreement on the boundaries of the field, that is, what practices should be included and excluded. But these are not serious constraints given that the field is still evolving, and that practitioners share a central core of understanding as shown in the preceding definitions.
and making it happen. By long-term effort. to improve an organization’s visioning. By empowerment processes. learning. The phrase led and supported by top management states an imperative: Top management must lead and actively encourage the change effort. coherent. processes. then another moves it to yet a higher plateau of effectiveness. Most OD programs that fail do so because top management was ambivalent. the ways those goods will be produced and delivered to customers. led and supported by top management. 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. serious business. and culture. but it includes a number of components that we consider essential. we mean those leadership behaviours and human resource practices that enable organization members to develop and use their talents as fully as possible toward individual growth and organizational success. we mean those interacting. and organizational learning. we mean those processes through which organization members develop a viable. and self-examining processes that facilitate individual. lost its commitment. “Organization development is a long-term effort. and what the organization and its members can expect from each other. it must be built into the very fabric of the organization-its strategy. By empowerment. developing the strategy for getting there. There is no “quick fix” when it comes to lasting organizational improvement. 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.” This definition is lengthy. through an ongoing. For empowerment to become fact of life. or became distracted with other duties. we mean that organizational change and development takes time. it includes pain and setbacks as well as success. structure. including action research. Organizational change is hard. where new and expansive patterns of thinking are nurtured. In fact. By learning processes. but as one that includes characteristics we think are important for the present and future of the field. empowerment. We will explain this definition in some detail. team.several years in most cases. we mean involving large numbers of people in building the vision of tomorrow. We do not propose it as the “right” definition. it is more accurate to describe “improvement” as a never-ending journey of continuous change.Now let’s turn to our definition of organization development. 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. where . listening. and problem-solving processes. By visioning processes. Peter Senge describes learning organizations as “… organizations where people continually expand their capacity to create the results they truly desire. One program or initiative moves the organization to a higher plateau.
solve problems. and we highlight the importance of visioning. activities. assumptions. And second. We believe solutions to problems are enhanced by tapping deeply into the creativity. Our definition also places considerable weight on organizational processes. Processes are relatively easy to change. structure. and where people are continually learning how to learn together. or developed by a given group. in contrast to having only a select few involved. (c) as it learns to cope with its problems of external adaptation and internal integration. and feel-that is why culture change is necessary for true organizational improvement. By including culture so prominently in our definition.collective aspiration is set free. Still. attitudes. norms. . But change becomes permanent when the culture changes and people accept the new ways as the “right” ways. 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. Just as visioning. and norms of behaviour that are viewed as the correct way to perceive. and continuous learning the organization is bound to succeed. that one of the most important things to manage in organizations is the culture: the prevailing pattern of values. we affirm our belief that culture is the bedrock of behaviour in organizations. therefore (e) is to be taught to new members as the (f) correct way to perceive. discovered. think. and take actions on problems. expectations. opportunities. make decisions. (d) that has worked well enough to be considered valid and. vitality. commitment.” Problem-solving processes refer to the ways organization members diagnose situations. and artifacts. and feel in relation to those problems. So culture consists of basic assumptions. so is managing the culture. empowerment. empowerment. We further believe that having compelling. Processes are how things get done. so they are the place OD programs often begin – getting people to stop doing things one way and start doing them a different way. and common purposes of all members of the organization. The reciprocal influence among culture. and problem-solving processes are opportunities for collaboration in organization development. beliefs. values. sentiments. and problem-solving processes. strategy. think. learning. and challenges in the organization’s environment and its internal functioning. has a stake in making the organization work. empowerment. Collaborative management of the culture means that everyone. first. not just a small group. and each influences the others. Michael Beer’s definition called for “developing new and creative organizational solutions”. managing the culture should be a collaborative business. culture is of primary importance. we mean. Empowerment means involving people in problems and decisions and letting them be responsible for results. By ongoing collaborative management of the organization’s culture. learning. (b) invented. and processes makes each important. We believe that when the culture promotes collaboration. Edgar Schein clarifies the nature and power of culture in his definition: “Culture can now be defined as (a) a pattern of basic assumptions. widely shared vision of a desired future creates the best climate for effective problem-solving by all the organization’s members. interactions.
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. Over time. Team building and role and goal clarification interventions are standard activities in OD programs directed toward intact work teams. . hiring. The old method was to have functional specialists work on the problem sequentially. Temporary. The results are usually highly gratifying both for the team members and for the organization. and then disbanded with the people going on to new tasks. and procurement. maintaining quality control. the process “threw the results over the wall” to the next functional unit. But in many organizations today. This method resulted in loss of synergy. much rework. members are trained in competencies such as planning. individuals and the organization function well. Further. These self-directed teams assume complete responsibility for planning and executing work assignments. firing. In addition to team building and role and goal clarification. OD focuses on culture and processes. He uses the terms ‘multifunctional projectization’ and ‘horizontal systems’ to describe these teams and their work. OD encourages collaboration between organization leaders and members in managing culture and processes. constantly shifting teams will be the dominant configuration for getting work done. manufacturing. and training. When teams function well. When one function finished with its part of the project. 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. Specifically. engineering. here are the primary distinguishing characteristics of organization development: 1. We think teams are the basic building blocks of organizations. To summarize. multifunctional. such as design. we recognize that teams are central to accomplishing work in organizations. team culture can be collaboratively managed to ensure effectiveness. In Liberation Management. and considerable antagonism among the separate functional specialists. self-directed teams control performance appraisals. Today’s organizations increasingly use ad hoc teams that perform a specific task and disband when the task is completed. 2. according to Peters. 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.By intact work teams and other configurations. and using management information. wasted time. The definition we have just analyzed contains the elements we believe are important for OD. intact work teams do not have a boss in the traditional sense-the teams manage themselves. The most prevalent form of teams in organizations is intact work teams consisting of superior and subordinates with a specific job to perform.
3. and cyclic processes. 6. 3. rather than focusing attention on individuals. 9. OD efforts are not one-shot actions. OD relies on an action research model with extensive participation by client system members. 10. 4. This ‘planned’ emphasis separates OD efforts from other kinds of more haphazard changes that are frequently undertaken by organizations. OD practitioners are facilitators. The concept of comprehensive change is based on the systems concept-open. Attempting to create “win-win” solutions is standard practice in OD programs. Comprehensive Change: OD efforts focus on comprehensive change in the organization. interactive. Teams of all kinds are particularly important for accomplishing tasks and are targets for OD activities. OD focuses on the elevation of an organization to a higher level of functioning by improving the performance and satisfaction. or isolated problems. so that change is easily observed. 7. 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. so the methods of attaining these goals should also change. 2. 3. they are ongoing. Planned Change: OD is a strategy of planned change for organizational improvement.3 Characteristics of OD 1. dynamic and adaptive system. and co-learners with the client system. OD focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. OD takes a developmental view that seeks the betterment of both individuals and the organization. OD focuses on total system change and views organizations as complex social systems. 5. 4. 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. temporary. rather. Rather. Thus. 8. . Participation and involvement in problem-solving and decision-making by all levels of the organization are hallmarks of OD. OD views organization improvement as an ongoing process in the context of a constantly changing environment. 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. Long-range Change: OD efforts are not meant for solving short-term. collaborators. It recognizes that organizational goals change.
Although Organization Development Programmes vary. OD attempts to provide opportunities to be ‘human’ and to increase awareness. third party change agent. growth. Emphasis on Intervention and Action Research: OD approach results in an active intervention in the ongoing activities of the organization. participation. Organization Development is inextricably linked with action. Key areas are the normative type of model. all types of experience requiring Organization Development efforts may be grouped into three categories: (a) Problems of destiny. evaluates these data. he conducts surveys. and revitalization. Two important elements of Organization Development are. first.5. it is a programme with a purpose that is to guide present and future action. yet following features are common to most of the programmes: (a) The client is a total system or major subunit of total system. The relationship involves mutual trust. further more. They discourage ‘do it yourself’ approach. (b) The interventions are primarily directed towards problems and issues identified by the client group. He shares a social philosophy about human values. or catalyst. rather. There is a close working relationship between the change agent and the target organizational members to be changed.4 Categories of OD Programmes In general. joint goals and means. and (c) Problems of organizational effectiveness. 7. and then. He designs intervention strategies based on these data. This is done to arrive at certain desirable outcomes that may be in the form of increased effectiveness. problem-solving. and adaptability for the organization as a whole. 3. Action research is the basis for such intervention. and integrate individual and organizational goals. the importance and centrality of goals and objectives and the different role requirements of the consultant change agent vis-à-vis the clients. Participation of Change Agent: Most OD experts emphasize the need for an outside. practitioners and the client laymen. . identity. At the individual level. the collaborative relationships between the scientists. collects relevant data. the element which links Organization Development with the scientific method of inquiry and. 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’. (b) Problems of human satisfaction and development. second. takes actions for intervention. 6. and mutual influence. A change agent in OD process does not just introspect the people and introduce changes. The change agent is a humanist seeking to get a humanistic philosophy in the organization.
its underlying theory and assumptions and some of the pitfall and challenges in attempting to improve organizations through behavioural science. This Organization Development progrmmes. (i) To increase self-control and self-direction for people within the organization. (e) To make competition more relevant to work goals and to maximize collaborative efforts. 3. (h) To help managers to manage according to relevant objectives rather than according to past practices or according to objectives which do not make sense for one’s area of responsibility. and (d) The interventions are based on behavioural science theory and technology. problem solving climate throughout an organization.6 OD and Management Development . (j) To improve effectiveness of the organization. like other normative re-educative programmes. (f) To develop a reward system which recognizes both the achievement of the organization’s goals (profit or service) and development of people. 3. We need to examine carefully the techniques of Organization Development. (b) To supplement the authority associated with role or status. (g) To increase the sense of ‘ownership’ or organization’s objectives throughout the work force.5 Goals of Organization Development Following are the generally accepted goals of OD: (a) To create an open. should begin with a clear-cut statement of specific objectives and criteria for determining if these objectives have been met from the stand point of the employee/employees simply as team member or for the total group. (c) To locate decision making and problem-solving responsibilities as close to sources of information as possible. (d) To build trust among persons and groups throughout an organization.(c) The interventions are directed towards problem-solving and improved functioning for the client system. with the authority of knowledge and competence.
Based on this. it is beneficial to make a comparison between OD and Management Development (MD) as both have some common objectives that betterment of an organization. then would the results be functional for managing organization activity in a competitive world? Thus. (ii) competitiveness. Burke and Schmidt have made this difference more clear which is presented in the following table. focus on achieving better in existing improvement in design. and greater display of feelings and emotions. According to him. according to him. He feels that management development reinforces the above four qualities and helps managers cultivate and develop the will to manage. there are four attributes of effective managers in large organization. he appears to be biased against OD and the real distinction between OD and MD lies in between these two extremes. 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. management development has been defined as follows: “Management development is all those activities and programmes when recognized and controlled. less individual competitiveness. While the latter aims at developing the mangers individually for the accomplishment of better performance in organizational setting. Train and equip employees Focus on design. Miner has drawn difference between two processes.At this stage. MD tries to fit the men to the organization. the former goes one step further and purports to change the entire organizational climate where the mangers work. Difference between Management Development and OD Factors Objectives Management Development Organization Development Increasing manager’s Changing the nature of the contributions to goal organization. If OD efforts train people towards anti-authority value. organization. accomplishments. 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. let us define management development as we have seen the definition of OD. Before making a comparison between the two. not on the and managers to perform managers. and techniques adopted in both may overlap to some extent. However. with their existing objectives and structure.” Organization development differs from management development. more attention to peer-groups. OD tries to fit the organization to the men. The term ‘development’ refers broadly to the nature and direction of change induced in personnel through the process of training and education. These are: (i) a positive attitude towards authority. (iii) assertiveness. Focus . and (iv) a sense of responsibility.
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 enthusiasms and personal satisfaction at all levels of the organization. To increase the level of self and group responsibility in planning and its implementation. and laterally. plays key role in organizational improvement. 6. Specialist No special requirement.7 Role of Organization Development Organization development. To place emphasis on humanistic values and goals consistent with these vales. it is quite suitable for improving organizational performance on long-term basis. Trained specialists required. 5. 2. substantial disenchantment with OD became evident because of many controversial OD techniques like sensitivity training. however. Since OD attempts to bring comprehensive change in the organization. as a long-term strategy for organizational change. 3. OD can be utilized for the following results in the organization: 1. To increase the level of trust and mutual emotional support among all organization members. Long-range strategy for organizational innovation and renewal. confrontation techniques. 3.Approach Time Educative and training Short-range. To treat each human being as a complex person with a complex set of needs important in his work and his life. 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. 4. 7. 3. horizontally. To create an environment in which authority of assigned role is augmented by authority based on knowledge and skills. In early 60s. Much of the enthusiasm created at the beginning of OD programmes vanished over the period of time. To increase the openness of communications in all directions-vertically. etc. however. By 70s. OD became quite successful with many professional consultants offering high services and programmes to various organizations. Research studies have also failed to conclude . Thus. Problem-solving approach.
It can be seen that many of these criticisms are based on reality and experience. Only fully competent OD consultant should be pressed for the service and he should develop understanding with internal change agents. OD fails to motivate people with low level of achievement needs. 3. 4. Therefore. and (iii) failure to increase employee motivation through participation and development of personal growth and self-esteem. in order to make best use of OD efforts. For example. There should be genuine support of OD programme from top management. There is discrepancy between ideal and real situations. These should be based on the specific needs of the organization. Organization must formulate the objectives of OD programme very clearly and specifically. If an organization is laden with these people. Resistance to change is a natural phenomenon and OD puts undue pressure to change. particularly in bottom-line ones. Hence. 5. People realized its dysfunctional aspects only when many OD efforts failed. . OD can not be taken as panacea for curing all organizational problems. There should be proper use of OD interventions. In general. it can be visualized that OD itself may not be dysfunctional but application may be. some specific efforts are required. it fails even as a long-term strategy. 2. 5. 4. it is useless to try OD. Some of these efforts are as follows: 1.significant contributions of OD in all organizations. Thus. 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. 2. 3. Therefore. OD programmes are often quite costly. OD tries to achieve ideal without taking into account real. Enough time should be allowed so that the effects of OD programme are realized. OD is criticized on the following lines: 1. OD makes people unfit for the real organizations world because no organization can fully adopt open system concept. However. it may be emphasized that OD programmes are likely to fail when these are not programmes and hence failure. and only large organizations can afford this luxury without any guarantee of positive outcome. and (ii) failure to correctly model appropriate personnel behaviour in the programme.
Who is associated with the “Learning Organizations”? 5.Self Assessment Questions 1. Top management 2. 3.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. OD focuses on culture and processes. ––––––––– is a process which includes leadership behaviours and human resource practices. State the various roles of OD. What are the problems involved in the implementation of OD? 3. But OD aims at changing the entire organizational climate where the managers work. 4. 2. Organization development should be led and supported by –––––––. 2. There is no ‘quick fix’ to organizations’ problems. problem-focused ‘nature of OD’ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. 3. 3.10 Terminal Questions 1. _____________is a short-term strategy. 3. Define OD. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. Explain its salient features. ––––––– is associated with “Liberation Management”. collaborative. The participative. Empowerment .11 Answers to SAQs and TQs SAQs: 1. 5. Explain the various characteristics of OD. Management development aims at developing the managers individually. Tom Peters 3. Distinguish between ‘organizational development’ and ‘management development’. OD is the ultimate remedy for organizational improvements and developments. 4.
6 4.3 Process Consultation 4.4. Refer section 3.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 3.2 2. Refer section 3. Refer section 3.7 5.Organization Development – Interventions Unit-04. MU0002-Unit-04.2 Survey Feedback 4. Management development Answers to TQs: 1.4 Grid Training 4.6 Team-building .1 Introduction Objectives 4.Organization Development – Interventions Structure: 4. Peter Senge 5.3 3. Refer section 3.5 Leadership Development 4.
and organizational culture. Nevertheless.” There are various OD interventions and they are classified in different ways. work group. interventions may be required to change people at all these levels. For example. mediation and negotiation activities.12 Answers to SAQs and TQs 4. group level.9 Role of Change Agents Self Assessment Questions 4. survey feedback. Interventions constitute the action thrust of organization development. However. various consultants and practitioners have different opinions about the activities which can be included in interventions. French and Bell have suggested twelve families of OD interventions: diagnostic. Further. education and training. inter-group level. process consultation. the classification appears to be more relevant because it may specify the . 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. interpersonal level. team-building.8 Change Agents 4. and organizational level.10 Summary 4. they make things happen. management grid. A meaningful classification of OD interventions may be based on the improvement in the behaviour of people in the organization as OD is basically a behavioural approach.11 Terminal Questions 4. This classification of OD interventions is very comprehensive and many activities do not strictly form the part of OD as process of organizational improvement but other methods of improving the performance of the organization. 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. many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others.7 Inter Group Development 4. Thus. techno-structural activities.4. the classification of OD interventions shows variation. inter-group activities. 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. People’s behaviour may be relevant to understand at individual level.
peer goal emphasis.range of change that an organization requires. managerial goal emphasis. To assist the organization in diagnosing its problems and developing action plan for problemsolving. The questionnaire may include different aspects of organizational functioning. and survey feedback method. USA developed a comprehensive questionnaire for conducting survey in different aspects of an organization. and peer interaction facilitation. you will be able to: · Describe survey feedback. Objectives: After studying this unit. ISR has prepared a questionnaire which includes questions on leadership – managerial support. the other major thrust in the development of OD has come from survey research and feedback of data. team.building. peer support. 1. and follow up. Data Collection: The first step in survey feedback is data collection usually by a consultant based on a structured questionnaire. 4. · Describe process consultation. and participative goal-setting which has become more popular as management by objectives. 2.2 Survey Feedback Besides laboratory training (sensitivity and grid). Subsequently. Though some type of survey method was prevalent in various organizations earlier. Institute for Social Research (ISR) of University of Michigan. The basic objectives of survey feedback are as follows: 1. grid training. · Explain grid training. · Realize the importance of team-building. have been added. . feedback of information. To assist the group members to improve the relationships through discussion of common problems. Our further discussion follows this development. peer work facilitation. OD efforts were attempted through sensitivity training. other techniques like process consultation. · Role of change agents. managerial work facilitation. Historically. Process of Survey Feedback Survey feedback usually proceeds with sequential activities involving data collection. developing action plans based on feedback.
satisfaction with the supervisor. In particular. it is provided through group discussion or problem-solving sessions conducted by the consultant. Alternatively. and satisfaction-satisfaction with the company. However. It generates great amount of information efficiently and quickly which can be used in solving problems faced by the organization and its members. by the consultant. it is of no use unless follow-up action is taken based on the . follow-up action may be in the form of developing some specific OD interventions particularly process consultation and team-building. data are classified. control within the company. even if valid and reliable information is collected. Feedback of Information: After the data are analyzed. If it is biased. decision-making. After the questionnaires are completed. feedback is given to the persons who have participated in the fulfilling up of questionnaire. Whatever the method of giving feedback is adopted. 3. questionnaire used and method adopted for its administration should be reliable and valid. tabulated. and analysis is made to arrive at some meaningful conclusions. and general management. 2. In oral system of feedback. and satisfaction with the work group. it should be constructive and suggestive. co-ordination between departments. 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. The feedback may be given either orally or in a written form. 2. feedback may be given in the form of a written summary of findings. 3. all attempts to diagnose the problems will be abortive and futile. satisfaction with the pay. effectiveness of survey feedback depends on two factors. satisfaction with the job. motivation. The questionnaire is administered personally either by the members of consulting firm or by organization’s personnel. 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. It is cost-effective means of implementing a comprehensive OD programme making it a highly desirable technique.organizational climate-communication with the company. rather. One such follow-up action may be to advise the participants to develop their own action plans to overcome the problems revealed through a feedback or as is more commonly the case. Second. First. survey feedback contributes in the following manner: 1. Follow-up Action: Survey feedback programme is not meaningful unless some follow-up action is taken based on the data collected. Evaluation of Survey Feedback Survey feedback provides a base for many managerial actions which has been confirmed by various research studies.
2. and spelling out services.C has defined it as follows: “The set of activities on the part of the consultant which help the client to perceive. Initiate Contact: This is beginning stage of P. group decision-making and problemsolving. 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. 1. the consultant is introduced to the organizational members and basic objectives of the P. Edgar Schein. To understand how various organizational processes can be linked to objective achievement in the organization. communication. 2. group norms. and inter-group co-operation and conflicts.C) is a technique for intervening in an ongoing system. A survey feedback is not a technique in itself for change. At this stage. Information collected is processed to diagnose the problems and their underlying causes. roles and functions of group members. 3. and interview about the problems. To bring desired change in the various organizational processes like leadership. Define the Relationship: At this stage. and act upon the process events which occur in the client’s environment. spelled out at the initial stage. time.C are as follows: 1. . understand.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. etc.information.C are communicated to them with a view that they co-operate with the consultant. 4. it provides base for action for change. Gather Data and Make a Diagnosis: Information is collected from various sources thorough the use of questionnaires.C is that the consultant works with individuals and groups in the organization to help them learn about human and social processes and to solve problems that stem from process events. This data gathering occurs simultaneously with the entire consultative process. Steps in Process Consultation Schein has suggested following specific steps which the consultant would follow in a P.C programme of OD. 4. the leading writer and consultant on P. the client’s expectations and hoped-for results are also decided. At this stage. observations. client and consultant enter into agreement covering various aspects of consultancy services like fees. The basic content of P.” The basic objectives of P.3 Process Consultation Process Consultation (P.
C is very effective intervention for organizational improvement. It is a comprehensive and systematic OD programme which aims at individuals. 3. group. focuses on skills. P.C is completed. Its specific objectives are as follows: 1. 6. To study the organization as an interactive system and apply techniques of analysis in diagnosing its problems. the consultant intervenes in the organizational processes by using different interventions like agenda-setting. Intervene: At this stage.4 Grid Training Grid training is basically based on grid organization development developed by Blake and Mouton. Another problem may emerge at the level of the organization and its members in terms of how they inculcate the new processes and culture as suggested by the consultant. groups. Process of Grid Training The basic content of grid organization development is managerial grid as discussed. feedback. and the organization as a whole. coaching. .C programmes. both these problems may be overcome by engaging a suitable consultant and developing willingness among the members for change. he assists the organizational members to incorporate those changes. the consultant disengages from the client organization by mutual agreement but leaves the door open for future involvement. and total organizational levels. like other OD intervention techniques. knowledge. Though he is involved only in suggesting the various changes in the processes. To understand the importance and rationale of systematic change. and/or structural change. 4. The grid organization development consists of six phases. However. In the review of various P. significant correlation between the outcomes has not been found. One basic reason for this phenomenon may be the consultant’s inability to steer the organization out of troubles. From this point of view. and processes necessary for effectiveness at the individual. P. enabling individuals and groups to assess their own strengths and weaknesses.5. 2. To evaluate the styles of leadership and techniques of participation to produce desirable results. However. The whole orientation is to develop managerial style through the application of behavioural science knowledge.C is also not free from criticisms. inter-group. Evaluation of Process Consultation: Process consultation is quite in-depth activity of OD in which the consultant plays a major role. Reduce Involvement and Terminate: When the work of P. It utilizes a considerable number of instruments.
The strategy is then implemented. Systematic Critique: In this stage. grid training has some positive contributions for organizational effectiveness. Grid training programme is criticized on the basis that it lacks contingency approach and. and alike. 3. the various efforts from phase 1 to phase 5 are evaluated and critical analysis is made. The analysis will bring out the shortcomings that may be there. Further. In this light. the various programmes may be redesigned. 4. and teamwork. Managerial grid: It covers various aspects of assessing managerial styles. The skills relating to planning. 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. traditions. objective-setting. and problemsolving are also developed. They have maintained that “managerial and team effectiveness can be taught to managers with outside assistance. they maintained the same stand.” In a later work. the focus is on inter-group behaviour and relations. Each group separately analyses the ideal inter-group relations. it discounts reality. 2. The action is designed to identify the characteristics of the ideal organization. the focus shifts to the total organization and to develop skills necessary for organizational excellence. The thrust is on moving groups from conflict to co-operation. 4. Furthermore. Teamwork Development: The focus in this stage is to develop teamwork by analyzing team culture. Developing Ideal Strategic Corporate Model: At this stage. 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 members of the organization are trained for achieving this excellence.5 Leadership Development . Inter-group Development: At this phase. communication skills. grid training is a non-rigorous method. Each group may be given assignment to evolve strategy for making ideal organization with the help of the consultant. some of them have not supported the claims made by Blake and Mouton. 6. Though research studies on the application of grid training are not many. in spite of these criticisms. 5. problem-solving.1. The individuals try to learn to become managers by practice. it appears that this type of educational strategy can help to make significant contributions to organizational effectiveness. Evaluation of Grid Training Most of the support of grid training has come from its originators-Blake and Mouton. therefore.
and that makes coping with drastic change much easier. if allowed to go on for too long. how synergy is generated through team-work. 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. In a climate of distrust. which. Poor leadership means an absence of hope. by the time you have to deal with difficult changes. if haven’t established a track record of effective leadership. 4. have no faith in the system or in the ability of leaders to turn the organization around. If you are to manage change effectively. is the ability of leadership to…well. let us consider the life cycle of a team. and After Arrival. you need to be aware that there are three distinct times zones where leadership is important. Slogging Through The Swamp. but more importantly. it may be too late. employees learn that leaders will act in indecipherable ways and in ways that do not seem to be in anyone’s best interests. The Role of Leadership In an organization where there is faith in the abilities of formal leaders. problems in . during and after change implementation is THE key to getting through the swamp. The best way to summarize is that there is a climate of trust between leader and the rest of the team.6 Team-building Various OD interventions discussed so far have their specific implications for OD and. Unfortunately. while at the same time recognizing that tough decisions need to be made. clearly the most important determinant of "getting through the swamp". confident and effective decision-making. The existence of this trust. During drastic change times. Also during these times of change. Leadership before. widely accepted. For example. results in an organization becoming completely nonfunctioning. and applied OD intervention for organizational improvement. employees will expect effective and sensible planning.When change is imposed (as in downsizing scenarios).” 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. concerned and committed to their welfare. therefore. lead. Before going through how team-building exercise can be undertaken to develop effective teams. and regular. and credibility of senior and middle management. employees expect nothing positive. The organization must deal with the practical impact of unpleasant change. We will look more carefully at each of these. employees will perceive leadership as supportive. The literature on the subject indicates that the nature of the change is secondary to the perceptions that employees have regarding the ability. must labor under the weight of employees who have given up. We can call these Preparing For the Journey. As against these. brings hope for better times in the future. are closely associated with a very few advocates and practitioners. employees will look towards the leaders for a number of things. complete communication that is timely. teambuilding is the most important. In organizations characterized by poor leadership. competence.
5. These typical stages of life cycle of a team are described below: 1. At this stage. they learn to handle complex problems that come before the team. interaction among team members is often cautious especially when they are new to one another. group norms emerge to guide individual behaviour which form the basis for co-operative feelings and behaviour among members. These stages are: forming. Sooner or later. Life Cycle of a Team When a number of individuals begin to work at interdependent jobs. 4. Storming: After the forming stage which is mostly related to perceiving and assessing each other. and tasks are accompanied efficiently. they do represent a broad pattern that may be observed and predicted in many settings across team’s time together. members start interaction among themselves in the form of competing for status.team-work. 3. they often pass through several stages as they learn to work together as a team. jockeying for relative control.1: Life Cycle of a Team Though these are not followed rigidly. and features of effective team so that team-building exercises focus more sharply on developing effective team. 4. and arguing for appropriate strategies to be adopted for achieving team’s goals. storming. The . because of individual differences. 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. team members start settling. even the most successful teams as they have completed their mission. each team has to be adjourned. Adjourning: Adjourning is the end phase of cycle of a team. and adjourning as shown below: Fig. Performing: When team members interact among themselves on the basis of norms that have emerged in the team. The team begins to move in a co-operative fashion and a tentative balance among competing forces too is struck. Forming: At the first stage of the life cycle. performing. norming. and begin to turn their attention to the group tasks. 2. different members may experience varying degree of tension and anxiety out of this interaction pattern. start to accept others. At this stage. Functional roles are performed and exchanged as needed. Norming: After storming stage. They share personal information. team members get introduced to each other if they have not interacted earlier.
team-work does not necessarily spurt group efforts. These students may be called loafers (not attaching the same connotation which is attached with the term loafer in our social phenomenon) who frequently miss the project group’s meetings. 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. that is. in one experiment.adjournment phase takes place in the case of those teams which are created for some special purposes like task force. 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. other factors remaining the same. intense social relationship among members comes to an end. For example. This phenomenon may happen in teams in work organizations too. Social Loafing Social loafing is antithesis of synergy in team-work which suggests that people working together on a common task may actually decrease their individual efforts. the complementarity among members is achieved. concept of stages is significant in the context of the nature of problem which team members are likely to face in team-work. This effect can be described as 2+2=5 effect. students find that one or two students do not put their weight for the completion of the project. and so on. the team would be effective. how a particular element affects another and is affected by it. To the extent. 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. In fact. Putting the concept of synergy in teamwork means members of the team are complementary to each other and they contribute positively to one another. . Synergy in Team-work Another important feature of a team is the concept of synergy which generates in team-work and the understanding of which helps in developing effective team. They rely on the fact the more reliable members will complete the project without their help. a team is created to undertake a task which requires a variety of skills and single individual cannot perform that task alone. In such an assignment.” Thus. However. fail to perform their assigned tasks. etc. It is not necessary that all teams follow the rigid pattern prescribed here and the similar problems they face at each stage because each team is different in some respect based on the type of members and problems and functions assigned. A simple phenomenon of social loafing may be observed in a group assignment to students during their study. After the adjournment of the team. committee. synergistic effect is not automatic but depends on the complementarity of different elements that are put together and the way they interact among themselves.
Skills and Role Clarity: For an effective team. group of eight. Let us see how these factors make a team effective. 2. The possibility of occurring of social loafing in a team-work increases because of the following reasons: 1. 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. Even if one member lacks behind. the individual average dropped down still lower68. supportive environment. A group is not merely an assemblage of individuals but there should be a feeling that they are members of the group and share common interests. individual members do not contribute to the fullest extent.2 pounds. we have mentioned that team effectiveness depends on the complementarity of team members. Supportive Environment: A team loaded with skilled members cannot perform well if the organizational climate is not supportive for that. goals. These factors are skills and role clarity. Dropping of average output in group efforts indicates that some members of the group were not contributing as much as they did individually. Individuals were asked to pull alone as hard as possible on a rope attached to a strain gauge. two things are required from its members. The phenomenon of social loafing can be minimized by constituting effective team for group performance. managers at higher levels particularly at the top level should set organizational climate and culture which enthuse team members to put their best. team members may tend to contribute positively to the teamwork. group efforts tend to slacken. When the same individuals pulled on the rope of groups of three. In the above paragraph. he may tend to affect others because of chain reaction just like a rotten apple injures its companions. 1. super-ordinate goals and team rewards. Thus.it was found that individuals’ total efforts were much higher than the group efforts. other factors remaining the same. understanding of roles helps members to meet the requirement of one another thereby solving the problems which the team faces. When the division of work cannot be accomplished properly and individual efforts are hard to determine. While skills are relevant for job performance. and attitudes. . From this statement. team members may not show high degree of enthusiasm and they will use only a part of their skills in performing the jobs.6 pound of pressure while tugging on the rope. If the organizational climate is not in tune with high achievement. it appears that there are many factors in an effective team. When the group is not cohesive with high output norms. skills which are complementary to the team requirement and understanding of one’s own role as well as roles of other members. Therefore. They averaged 138. 2.
3. Super-ordinate Goals: Super-ordinate goals are those which are above the goals of a single team or a single individual. An individual works better if he is able to link how his goal attainment leads to the attainment of a higher-level goal. These super-ordinate goals, then, serve to focus attention, unify efforts, and stimulate more cohesive team efforts. 4. Team Rewards: Team performance depends on how reward is linked to team performance and how members perceive this linkage. If team members perceive that reward to contingent on team performance, they will put their maximum. Rewards of both types- financial and nonfinancial-should be taken into consideration. Further, organizations need to achieve a careful balance between encouraging and rewarding individual initiative and growth and stimulating full contributions to team success. Innovative non-financial team rewards for responsible behaviour may include the authority to select new members of the group, make recommendations regarding a new supervisor, or propose discipline for team members. The positive aspect of all these factors leads to team effectiveness and team members share common values regarding product quality, customer satisfaction, and share the responsibility for completing a project on schedule. Katzenbatch and Smith, management consultants, have suggested the concept of real team and they feel that this concept is relatively unexploited despite its capacity to outperform other groups and individuals. They define four characteristics of real teams: small size; complementary skills; common purpose, goals, and working approach: and willingness to be held mutually accountable. Real teams can be created and sustained by: 1. Selecting members for their complementary skills and potentials; 2. Developing clear rules of conduct and challenging performance goals; 3. Establishing a sense of urgency right from the first meeting. 4. Providing substantial time together in which new information is constantly shared; and 5. Providing positive feedback, recognition, and rewards. Team-building Process: Team-building attempts to improve effectiveness of the team by having team members to concentrate on: 1. Setting goals and priorities for the team. 2. Analyzing how team’s goals and priorities are linked to those of the organization. 3. Analyzing how the work is performed. 4. Analyzing how the team is working, and
5. Analyzing the relationships among the members who are performing the job. For achieving these, the team-building exercise proceeds in a particular way as shown in figure.
Fig. 4.2: Process of Team-building Various steps of team-building process are not one-shot action, rather, they are repetitive and cyclical as indicated by arrows in the figure. 1. Problem-sensing: There are a number of ways in which problems of a team can be obtained. Often the team itself defines which aspects of team-building it wishes to work on. This problem can better be identified in terms of what is hindering group effectiveness. At this stage, generally most of the members come forward with their arguments as to what the real problems are. The view may be quite different ranging from the organizational problem, group problems to even personal problem. In problem identification, the emphasis should be on consensus. The consensus-seeking part of the process necessitates that each person becomes thoroughly aware and understand clearly the basic concepts of team-development. Much of the problems may be solved through effective communication and training sessions. 2. Examining Differences: The perception of people on an issue differs because of their differing backgrounds, such as, their value systems, personality and attitudes. The perception may be brought to conformity through the process of exercise on perception which involves a number of psychological exercises particularly on perceptual differences. The role of communication is important in this context because it will help in clarifying the actual problems to the members. 3. Giving and Receiving Feedback: The step of perceiving things and listening to each other may be relayed back to the members as there is a possibility that such processes may create tense situation in the group. Often, members report about the painful feelings that they have at the time of evaluation of their feelings. The discussion should continue until all members of the team have commented. The feedback should be given to the members about their feelings, about the issue, the way people talk about the issue, the stying with the topic or going off on tangents, who was talking more or who was talking less, who was trying to resolve the differences, etc. Such feedback generally provides members to evaluate the values but at the same time, also provides opportunity to understand themselves. The concept of Johari Window may also be applied. This suggests that even people are not fully aware of themselves. 4. Developing Interactive Skills: The basic objective of this process is to increase the ability among the people as to how they should interact with others and engage in constructive behaviour. Following are the examples of constructive and negative behaviours:
Constructive Behaviour: (i) Building: developing and expanding the ideas of others. (ii) Bringing in: harmonizing, encouraging others to participate. (iii) Clarifying: resting, ensuring, understanding, seeking relevant information. (iv) Innovative: bringing in new relevant ideas, information, feelings, etc.
(i) Over talk: interrupting, talking together with speaker. (ii) Attacking: deriding, belittling, criticizing person. (iii) Negative: cooling, cynicism, undermining morale. At the time of discussion of feedback, people themselves take assignments to increase specific constructive behaviours and decrease specific negative behaviours. If this process is adopted several times, there is a strong possibility that members may learn constructive behaviours and leave negative behaviours. This is quite helpful in developing teamwork. 5. Follow-up Action: This is the final stage in team-building. At this stage, the total team is convened to review what has been learned and to identify what the next step should be. Follow-up action also helps in overcoming the drawback involved at the initial stages of teambuilding. It involves deciding who will take care of each area of the team’s responsibilities, and who will be responsible for team projects in a group that has not developed a satisfactory division of responsibility; clarifying and setting differences in perception concerning responsibility and authority in the team, with complex division of responsibility and authority among members. These attempts bring co-operative and supportive feelings among people involved in the team functioning. When this exercise is undertaken at the initial stage, it contributes positively towards the feelings of the people. However, to encourage and sustain such feelings, management should take such actions at regular intervals so that members feel reinforced and sustain their positive behaviour. Such actions will go a long way in shaping the organizational climate quite conducive to members for their efficient working. Evaluation of Team-building As mentioned earlier, team-building as an OD intervention has attracted maximum attention. Many research studies have also confirmed the positive contributions of team-building on the
communicating. are not given adequate attention. team-building has been termed as one-sided effort and it suffers from the following limitations: 1. and how it believes the other group perceivers it. Once the causes of the difficulty have been identified. . team-building has a positive outlook. etc. 3. In this method. and the groups look for the causes of the disparities. and perceptions that groups have of each other. this has been a subject to which change efforts have been directed. It helps developing communication within the group and inter-group and overcoming many psychological barriers that block communication flow. It improves the organization’s problem-solving and decision-making ability. though. listening. 4.7 Inter-group Development A major area of concern is OD is the dysfunctional conflict that exists between groups. each group meets independently to develop lists of its perception of itself. As a result. It helps in developing effective interpersonal relationships by stimulating the group members for that. after which similarities and differences are discussed. one of the more Popular methods emphasize problem solving. 2.. in different degrees. there have been calls for combining team-building with organization behaviour modification approaches. Although there are several approaches for improving intergroup relations. However. The groups then share their lists. Differences are clearly articulate.organization’s outcomes. However. New member may find it difficult to adjust with the team because of his confusion over his roles in terms of task performance and building good relationships. Team-building becomes a complicated exercise when there is frequent change in team members. In general. Therefore. monitoring. It seeks to change to attitudes. 2. structure. team-building contributes to the organizational performance in the following manner: 1. It focuses only on work groups and other major organizational variables such as technology. the other group. it is not that effective in isolation. the groups can move to the integration phase – working to develop solutions that will improve relations. One such suggestion is to use a task hierarchy to reinforce the team as it progresses up a behaviour skill hierarchy (for example. and feedback skills). stereotypes. In spite of these problems.
8 Change Agents Change agents: Can be managers or nonmanagers. as the break for too quick action. According to Curtis Mial: “The Consultant may serve as the exhaust value. 4. or outside consultants. as the accelerator to build up momentum. changing (intervening) and refreezing. internal management often will hire the services or outside consultants to provide advice and assistance. operating procedures. culture. cases and experiential learning etc. role-plays and instruments. presentations. The trainer role is most widely and intensively used at all stages of a change project: unfreezing. In contrast. as the radiator absorbing some of the heat of the controversy.9 Role of Change Agents The change agent may play different roles according to the need of organization development . employees of the organization. 4. internal staff specialists or managers when acting as change agents.Subgroups. Because they are from the outside these individuals an offer can offer an objective perspective often unavailable to insiders. and personnel. He has to educate people on the need and importance o change using a variety of methodologies – lectures. group discussions. but one thing he/she is not the driver”. 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. however. films. 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. . as the shock absorber when the going is rough. Trainer A change agent needs to be a trainer and educator. The consultant may fulfill a variety of functions. or as fog lamp when the future is hazy. can now be created for further diagnosis and to begin to formulate possible alternative actions that will improve relations.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. Outside consultants. with members from each of the conflicting groups. enabling the client to let off steam: as the ignition to spark action. For major change efforts.
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. Useful hypothesis are to be formulated and tested. the consultant works with individuals and groups in the organization to help them learn about human and social processes and to solve problems that stem from process events.10 Summary OD intervention strategies are various activities which a consultant and client organization performs for improving organizational performance. feedback of information. Self Assessment Questions 1.11 Terminal Questions 1. developing action plans based on feedback and follow-up. What is survey feedback as an intervention of OD? How does it provide base for other OD interventions? . inter-group and total organization levels. Grid Training was developed by –––––––––––– 3. Sensitivity training focuses on small group ranging from ten to twelve. group. What is Grid Training? How does it help in improving individual performance in an organization? 2. attitudes and beliefs. 4. Data collection. team-work does not necessarily spurt group efforts 4. It focuses on skills. knowledge and processes necessary for effectiveness at the individual. Teambuilding is most important.Training is required for enhancing knowledge. Survey feedback usually proceeds with sequential activities involving data collection. In process consultation. diagnosis. The first step in survey feedback is ______ usually by a consultant based on a structured questionnaire. 2. Training is used both in ‘content orientation’ and process orientation’. generation of new behavioral science knowledge. ________is antithesis of synergy in team-work which suggests that people working together on a common task may actually decrease their individual efforts. widely accepted and applied OD intervention for organizational improvement. 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. skills and change in behavior. Grid training focuses on individuals and groups to assess their own strengths and weaknesses.
12 Answers to SAQs and TQs SAQs: 1. Assumptions. Social loafing Answers to TQs: 1. Explain Change agents and discuss the role of change agents in detail. Beliefs in Organization Development Unit-05-Values. Blake and Mouton.2 3. Refer section 4.6 4.4 2.2 Definitions and .3. Refer section 4. What is team-building? What are the stages of life cycle of a team? 4.1 Introduction Objectives 5. and Beliefs in Organization Development Structure: 5. 4. 3. Data collection 2. Assumptions. Refer section 4. MU0002-Unit-05-Values.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 4.
2 Definitions A belief is a proposition about how the world works that the individual accepts as true.4 Early Statements of OD Values and Assumptions 5.5. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers.1 Introduction A set of values.7 Terminal Questions 5. · Give the statement of OD values and assumptions. beliefs and assumptions. it is a cognitive fact for the person. you will be able to: · Explain the meaning of values.3 Chronology of Events in Management and Organization Thought 5. .8 Answers to SAQs and TQs 5. shaping the goals and methods of the field and distinguishing OD from other improvement strategies.5.6 Summary Self Assessment Questions 5. and they continue to evolve as the field itself evolves.2 Implications for Dealing with Groups 5.3 Implications for Designing and Running Organizations 5. Objectives: After studying this unit. 5. assumptions.5 Implications of OD Values and Assumptions 5. and beliefs constitutes an integral part of organization development.1 Implications for Dealing with Individuals 5. Most of these beliefs were formulated early in the development of the field.5.5. beliefs and assumptions. · List the chronology of events of values. · State the implications of OD values and assumptions.
the human relations movement. research on the effects of different leadership styles. and the need for justice through the rule of law and due process. . Major ingredients of the zeitgeist that influenced OD values and assumptions are presented here in a brief chronology. Democratic values assert the sanctity of the individual. Values and assumptions do not spring full grown from individuals or societies they are formed from the collective beliefs of an era-the zeitgeist. the importance of fair and equitable treatment for all. repetitive tasks in an attempt to find "the one best way" to do each job. values. the laboratory training movement. Optimistic values posit that people are basically good. and assumptions being.. or spirit of the time. Piece-rate pay systems were designed to increase motivation and to prevent "soldiering.g. dishonesty). OD values tend to be humanistic. strongly held. the clash between fascism and democracy in World War II. relatively unexamined beliefs accepted as the truth." Assumptions are beliefs that are regarded as so valuable and obviously correct that they are taken for granted and rarely examined or questioned. and the like. Values. with values being beliefs about good and bad. they were fashioned into a coherent value foundation for the theory and practice of organization development." or slacking off.g. assume that everyone has intrinsic worth. and goodwill are the tools for making progress. 5.Values are also beliefs and are defined as: "Beliefs about what is desirable or ‘good’ (e. assumptions. Evidence for the validity of these values and their supporting assumptions comes from many sources – the Hawthorne studies.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. Expert engineers and supervisors designed each task and ensured it was done correctly. greater understanding of individual motivation and group dynamics. and beliefs provide structure and stability for people as they attempt to understand the world around them. Thus. the right of people to be free from arbitrary misuse of power. and democratic. view all people as having the potential for growth and development. Taylor’s methods quickly swept the country and the world as the way to organize work. As these ingredients accumulated. increasing awareness of the dysfunctions of bureaucracies. optimistic. that progress is possible and desirable in human affairs. treat people with respect and dignity. free speech) and what is undesirable or ‘bad’ (e. reason. repetitive tasks minimized the skills required to do the job. and that rationality. Humanistic values proclaim the importance of the individual: respect the whole person. and beliefs are all cognitive facts or propositions.. Simple. assumptions.
Research by Lewin. but also contained serious flaws that led to unintended consequences. theory. extensive division of labor. Group Dynamics (1940) – The scientific study of groups using experimental research methods-was launched by Kurt Lewin and his students. much of the research. Lippitt (1939). the work environment. ‘The Functions of the Executive’ by Chester 1. A strong hierarchy of authority. and the supervisor determined their performance. Barnard (1938) presented insights from his experiences as President of the New Jersey Bell Telephone Company. organizations were not machines. Democratic leadership seemed to bring out the best in the groups. These approaches possessed many desirable features. The research demonstrated the primacy of social factors on productivity and morale. People came to work as whole people. In a sense. People were not cogs. repetitive jobs left them feeling alienated and dispirited. a management theorist and astute observer of labourmanagement relations. wrote an article on “The Giving of Orders” advocating participative leadership and joint problem-solving by labour and management. apathy. 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. Some early experiments were conducted in the late 1930s. aggressiveness and poor performance. The great German sociologist Max Weber (1922) introduced the concept of “bureaucracy” as the best. and practice since the late 1920s have focused on the shortcomings of these two paradigms and how to overcome the limitations. His acceptance theory of authority proposed that authority derives from the willingness of subordinates to comply with directions rather than from position power. Their simple. and rigid procedures would create a well-oiled human machine called the organization. Mary Parker Follett (1926). and White demonstrated that democratic leadership was superior to authoritarian leadership and laissez-faire leadership in affecting group climate and group performance. . Much of her career was devoted to finding ways to reduce adversarial relationships between workers and management. Group norms had more powerful effects on productivity than economic incentives. their feelings and attitudes about the work. authoritarian leadership caused dependency. and by Homans in 1950 profoundly and irreversibly affected people’s beliefs about organizational behaviour. Barnard viewed organizations as social systems that must be effective (achieve goals) and efficient (satisfy the needs of employees). The Famous Hawthorne Studies (1927 to 1932) were conducted at the Hawthorne plant of Western Electric Company. by Roethlisberger and Dickson in 1939. impersonal rules. most efficient way to organize people. Reports on these studies by Mayo in 1933 and 1945.
” 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. “Overcoming Resistance to Change. training in interpersonal skills for supervisors. French’s (1948) article. proposed that the leadership functions of a group should be shared between the leader and group members and showed how that could be done. The theory postulated that when lowerlevel needs are satisfied. Laboratory training taught people how to improve interpersonal relations. are self-centered. pioneers in laboratory training. The Hawthorne Studies (1940s to 1960) spawned the human relations movement that was in full flower from the 1930s to the 1960s. and understand group dynamics. Chris Argyrif’s Personality and Organization (1957) was the first of several books in which he stated that there is an inherent conflict between the needs of organizations and the needs of mature. The human relations movement advocated participative management. This article introduced the concept of organizations as sociotechnical systems. lack ambition. Ken Benne and Paul Sheats (1948). . a direct precursor of OD. Motivation and Personality by Abraham Maslow (1954) presented a new view of human motivation. These years witnessed the beginnings of the laboratory training movement (1946 and 1947). Lester Coch and John R. Carl Rogers’ Client-Centered Therapy (1951) demonstrated the efficacy of non-directive psychotherapy. and a general “humanizing” of the workplace. increase self-understanding. P. higher-level needs become dominant. dislike responsibility. Douglas McGregor wrote ‘The Human Side of Enterprise’ (1960) in which he described his famous Theory X and Theory Y assumptions. Those who subscribe to Theory X assume that people are lazy. greater attention to workers’ social needs. Rogers’ focus on effective interpersonal communications was applicable to superior-subordinate relations. caring social climate. 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. Humanistic and democratic values suffused the movement. 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. which holds that individuals have within themselves the capacity to assume responsibility for their behaviour and mental health when provided with a supportive. Eric Trist and Ken Bamforth of the Tavistock Clinic (1951) published the results of their work in British coal mines. healthy adults.
resist change. a mechanistic organization structure may be appropriate. dysfunctions. and values of the field.” (1969) a set of six little books on OD by prominent practitioners. These six books presented the theory. 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. The task of management is to change organizational structures. in an environment of high change. organization development practitioners formulated a set of values and assumptions regarding people. This chronology captures most of the significant influences from research. and organizations that is. and need to be led. To summarize the intellectual climate of this period. and authoritarian leadership gave way to increasing doubts about these organizational practices as theory and research pointed up their limitations. open communications. This leadership style was contrasted with an authoritarian. practice.indifferent to the organization’s needs. Those who subscribe to Theory Y assume that people have the potential to develop. and greater individual autonomy. management practices. In addition to presenting Theory X and Y. one-on-one leadership style. and observations utilized by OD practitioners. Values have always been an integral part of OD. The Bennis and Beckhard quotations come from their books in the Addison-Wesley Six-Pack. an organic organization form is preferred. In an environment of slow change. and human resource practices to allow individual potential to be released. summarized the state of organization development a decade or so after its inception. and to pursue organizational goals if given the chance and the social environment to do so. Organic structures encourage decentralized decision making and authority. Kahn (1966) presented the first comprehensive exposition of organizations as open systems. groups. . Tannenbaum and Davis presented their ideas in an article appearing in Industrial Management Review. this book popularized Maslow’s motivation theory. Out of this zeitgeist. as we have said. goal-oriented. bureaucracy. humanistic. the initial enthusiasm for scientific management. and democratic. theory. We will examine three early statements regarding OD values that had a significant impact on the field. and shares decision-making with the work group. to assume responsibility. ‘The Social Psychology of Organizations’ by Daniel Katz and Robert L. and negative consequences. Burns and Stalker (1961) described two very different forms of organization structuremechanistic and organic. and introduced practicing managers to the concepts of need hierarchy and self-actualization. The Addison-Wesley Publishing Company “OD Six-Pack. optimistic.
" like pushing buttons. Bennis clarified some of the salient differences between mechanical systems and organic systems. Through focused attention and through the collection and feedback of relevant data to relevant people. the basic units of change are groups. He listed these normative goals as follows: · Improvement in interpersonal competence. more choices become available and hence better decisions are made. The earlier work by Tom Burns and G. · Development of increased understanding between and within working groups in order to reduce tensions.” For example. The basic building blocks of an organization are groups (teams). Another major player in the field was Richard Beckhard. Warren Bennis proposed that OD practitioners (change agents) share a set of normative goals based on their humanistic/ democratic philosophy. · A shift in values so that human factors and feelings come to be considered legitimate." that is. compromise." Mechanical systems encourage "centralized decision-making" while organic systems encourage "wide sharing of responsibility and control. more rational and open methods of conflict resolution are sought. Here is his list. . not individuals. and unprincipled power. Therefore.Writing in 1969. · Development of organic rather than mechanical systems. mechanical systems rely on "authority-obedience relationships" while organic systems rely on "mutual confidence and trust. 1. M." 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. Rather than the usual bureaucratic methods which rely mainly on suppression. · Development of better methods of conflict resolution. · Development of more effective "team management. the capacity for functional groups to work more competently. 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. In his 1969 book he described "several assumptions about the nature and functioning of organizations" held by OD practitioners. This is a strong reaction against the idea of organizations as mechanisms which managers "work on.
" People affected by a change must be allowed active participation and a sense of ownership in the planning and conduct of the change. · Away from a view of individuals as fixed. One goal of a healthy organization is to develop generally open communication. · Away from distrusting people toward trusting them. not the basis of managerial strategy. rather than in a particular role or level of hierarchy. a professor and Sheldon Davis.2. sub-units of organizations. An always relevant change goal is the reduction of inappropriate competition between parts of the organization and the development of a more collaborative condition. · Away from avoidance of negative evaluation of individuals toward confirming them as human beings. presented their view of OD values in a 1969 article. · Away from maskmanship and game-playing toward authentic behaviour. and confidence between and across levels. · Away from use of status for maintaining power and personal prestige toward use of status for organizationally relevant purposes. Organizations. "People support what they help create. 3. 4. Controls are interim measurements. · Away from utilizing an individual primarily with reference to his or her job description toward viewing an individual as a whole person. 5. 6. Decision-making in a healthy organization is located where the information sources are. . · Away from avoiding facing others with relevant data toward making appropriate confrontation. toward seeing them as being in process. · Away from walling off the expression of feelings toward making possible both appropriate expression and effective use. They listed these “values in transition” as follows: · Away from a view of people as essentially bad toward a view of people as basically good. director of organization development. 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. and individuals continuously manage their affairs against goals. · Away from resisting and fearing individual differences toward accepting and utilizing them. mutual trust. Robert Tannenbaum.
and arbitrary management practices as well as the dysfunctions of bureaucracies. a greater contribution to attaining organization goals than most organizational environments permit. set high standards. Most people want to develop their potential. 5. and so forth were seldom espoused and rarely implemented in the vast majority of organizations at that time. These values and assumptions may not seem profound today. the legitimacy of feelings.5. decentralized decision making. The first assumption is that most individuals have drives toward personal growth and development if provided an environment that is both supportive and challenging. · Away from a primary emphasis on competition toward a much greater emphasis on collaboration.5 Implications of OD Values and Assumptions Let us examine specific assumptions and their implications for organization leaders and members. remove obstacles and barriers. listen. 5. encourage risk-taking. Beliefs such as trust and respect for the individual.· Away from avoidance of risk-taking toward willingness to risk. open communication. A tremendous amount of constructive energy can be tapped if organizations realize and act on these assumptions. The people doing the work are generally experts on how to do it and how to do it better.2 Implications for Dealing with Groups . challenge. support. give autonomy. The humanistic values prompted a search for better ways to run organizations and develop the people in them. permit failure. autocratic. collaboration and co-operation. · Away from a view of process work as being unproductive effort toward seeing it as essential to effective task accomplishment. and are capable of making.5. The second assumption is that most people desire to make. We answer the question: What are some of the implications of OD assumptions and values for dealing with individuals. authentic interpersonal relations. give responsibility.1 Implications for Dealing with Individuals Two basic assumptions about individuals in organizations pervade organization development. and organizations? 5. appropriate uses of power. and reward success. The implications of these two assumptions are straightforward: Ask. 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. The democratic values prompted a critique of authoritarian. but in the 1950s and 1960s they represented a radical departure from accepted beliefs and assumptions. participation and contribution by all organization members. groups.
By implication. Hence. not individuals. not a one-on-one leadership style. One implication is that group members should receive training in group effectiveness skills such as group problem-solving and decision-making. and usually with more than one group. and so on-are obsolete. most people are capable of making greater contributions to a group’s effectiveness and development. facilitation. group members should assist the leader with the multiple roles required for group effectiveness. It is especially important that leaders adopt a team leadership style. the family. the assumption is that many attitudinal and motivational problems in organizations require interactive and transactional solutions. Another assumption is that the formal leader cannot perform all the leadership and maintenance functions required for a group to optimize its effectiveness. They cannot meet the demands of the marketplace. 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. invest energy and intelligence in creating a positive climate. First.3 Implications for Designing and Running Organizations Clearly. such as a work group. Third. Second. including peers and boss. personal growth. and so on. Frequently the challenge is broader. are the best way to satisfy social and emotional needs at work. emphasis on topdown directives. in addition. a church or club group. and E can support these changes. What occurs in the work group. leaders should invest in groups: Invest the time required for group development. adherence to the chain of command. one of the most psychologically relevant reference groups for most people is the work group. a growing awareness that “win-lose” organizational situations.Several assumptions relate to the importance of work teams and the collaborative management of team culture. The question becomes not how A can get B to perform better. leaders need to give important work to teams. but how A and B can work together to modify their interactions toward the goal of B becoming more effective and A and B becoming more mutually effective. greatly influences feelings of satisfaction and competence. traditional hierarchical forms of organization-fairly steep pyramid. including how persons C. To do this. And because suppressed feelings and attitudes adversely affect problem-solving. invest training time and money to increase group members’ skills. D. Also. Finally.5. 5. most people wish to be accepted and to interact co-operatively with at least one small reference group. are dysfunctional . support. and job satisfaction. group members should be encouraged to learn to deal effectively with positive and negative feelings. grouping by specialized function. Implications of these assumptions are several. Dealing appropriately with feelings and attitudes increases the level of interpersonal trust. Such problems have the greatest chance of constructive solution if all parties in the system alter their mutual relationships. Let teams flourish because they are often the best way to get work done and. experimenting with new organization structures and new forms of authority is imperative. at both the formal and informal levels. conflict management. In addition. in which one side wins and the other side loses. formalized cross-functional communication. Therefore. This skill is a trainable one. and interpersonal communication. and co-operation within the group.
These OD values were considered revolutionary when they emerged in the 1950s. developmental. assumptions and beliefs help to define what OD is and guide its implementation. organizing structures. they are the source of productivity and profits and should be treated with care. Chronology of events in management and OD tremendously influenced OD practitioners. This notion suggests it is good to have a developmental outlook and seek opportunities in which people can experience personal and professional growth. developmental set of assumptions about people is likely to reap rewards beneficial to both the organization and its members. 5. but are widely accepted today. These beliefs help to define what OD is and guide its implementation. Creating co-operative rather than competitive organizational dynamics is a primary task of the organization’s leaders. The belief that people are important tends to result in their being important.6 Summary The field of OD rests on a foundation of values and assumptions about people and organizations.over the long run and highlight the need for a “win win” attitude. and profitability." as behavioural scientists and managers continue to develop better understanding of authority structures. The implication is that people are an organization’s most important resource. it is possible to create organizations that on the one hand are humane. and organizational changes taking place assure that tomorrow will bring new definitions of what is "true" and new beliefs about what is "good. OD values tend to be humanistic. and ways to optimize human potential. Finally. By implication. values are never static. Evidence for this assumption comes from numerous examples where “putting people first” paid off handsomely in profits and performance. Self Assessment Questions . Still. Values. and on the other hand are high performing in terms of productivity. an optimistic. The rapid technological. societal. Such an orientation creates a self-fulfilling prophecy. A key assumption in organization development is that the needs and aspirations of human beings are the reasons for organized effort in society. 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. optimistic and democratic. Values are also beliefs. and empowering. This discussion was intended to articulate an appreciation of OD values and explain where they came from. A belief is a proposition about how the world works that the individual accepts as true. Values. quality of output. they change over time. Concluding Comment: The field of organization development rests on a foundation of values and assumptions about people and organizations.
8 Answers to SAQs and TQs SAQs: 1. 2. 3. and assumptions are all –––––––––– facts. The concept of –––––––––– was introduced by MaxWeber. 5. 5. Refer section 5. beliefs and assumptions. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. 3. Taylor’s principles of scientific management. _______________ gave theory X and theory Y. 2.2 2.7 Terminal Questions 1. 5. Cognitive 2. State the assumptions of Theory X and Theory Y. beliefs.W. 4.3 . Define concepts. F. Refer section 5. Taylor 3. W. Hawthorne experiments 5. values. Values. Refer section 5.1. What was the outcome of Hawthorne Experiments? 4. __________ is associated with scientific management. Bureaucracy 4. Douglas McGregor Answers to TQs: 1.3 3. Write a note about F. The outcome of –––––––– was that people were not cogs and organizations were not machines.
2.1 Introduction Objectives 6.4.3 The Burke-Litwin Model of Organizational Change 6.2 Models and Theories of Planned Change 6. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.3 Systems Theory 6.4 Participation and Empowerment .3.2.4 Open Systems Thinking 6.1 The Nature of Systems 6.2. Refer section 5.3 Socio-technical Theory and Open Systems Planning 6.4 Porras and Robertson Model of Organizational Change 6.3.1 Kurt Lewin and Friends 6.3 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 Beyond the Quick Fix 6.3.3 5.2 Congruence among System Elements 6.2.3. Refer section 5.
6. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning. · Explain systems theory. art and science which form the knowledge base upon which OD is constructed. Objectives: After studying this unit.11 Terminal Questions 6.10 Summary 6. Here we describe what we believe are the most important underpinnings for the field.7 A Normative – Re-educative Strategy of Changing 6. We will examine the following concepts: . Leaders and OD practitioners use this knowledge base to plan and implement effective change programs.5 Teams and Teamwork 6. In this discussion. · Explain normative-re-educative strategy of changing The knowledge base of OD is extensive and is constantly growing.12 Answers to SAQs and TQs 6.9 Action Research Self Assessment Questions 6. · Describe the parallel learning structures.1 Introduction This unit describes the foundations of organization development theory and practice.6 Parallel Learning Structures 6. you will be able to: · Explain various models and theories of planned change. · Realize the importance of teams and teamwork.8 Applied Behavioural Science 6. · Explain the terms ‘participation’ and ‘empowerment’.
· 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. Although morale may get a little better or a little worse on occasion. describe those features as variables. but pretty good for identifying the important variables involved. the status quo-whatever is happening right now-is the result of forces pushing in opposing directions.2. the important features of some phenomenon. For example. Planned change theories are rudimentary as far as explaining relationships among variables. and specify the relationships among the variables. in words or pictures. we can think of the level of morale in that plant as a resultant equilibrium point. Here we provide a framework for thinking about planned change by exploring several models from the literature. 6. 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. That is.1 Kurt Lewin and Friends Kurt Lewin introduced two ideas about change that have been influential since the 1940s. With a technique called the force-field analysis. Models and theories depict. Lewin’s second idea was a model of the change process itself.2 Models and Theories of Planned Change Organization development is planned change in an organizational context. we can think of the production level of a manufacturing plant as a resultant equilibrium point in a field of forces. The production level tends to remain fairly constant because the field of forces remains fairly constant. The development of models of planned change facilitated the development of OD. some forces pushing toward higher morale and some pushing toward lower morale. The first idea states that what is occurring at any point in time is a resultant in a field of opposing forces. Several recent theories show great promise for increasing our understanding of what happens and how it happens in planned change. He suggested that change is a three-stage process: . This concept is useful for thinking about the dynamics of change situations. it generally hovers around some equilibrium point that is the resultant in a field of forces. Likewise. with some forces pushing toward higher levels of production and some forces pushing toward lower levels of production.
moving to new level of behaviour. unfreezing. Lewin’s three-stage model is a powerful tool for understanding change situations. which cause guilt and anxiety.non-smoking becomes the new equilibrium point. that is. Next. The three-stage model says he must first unfreeze the old behaviour of smoking. believe that cigarette smoking is bad for him and that he should stop smoking. etc. feel things. Disconfirmation or lack of confirmation b. The total personality and self-concept. . disconfirmation creates pain and discomfort. Edgar Schein took this excellent idea and improved it by specifying the psychological mechanisms involved in each stage.Unfreezing the old behaviour (or situation). and react to things differently based on a new point of view obtained through a. Change entails moving from one equilibrium point to another. Provision of psychological safety Stage 2: Changing through Cognitive Restructuring: Helping the client to see things. Refreezing the desired behaviour requires establishing a new field of forces to support the new behaviour. b. which motivate the person to change. change will not occur. b. he must move. Creation of guilt or anxiety c. But unless the person feels comfortable with dropping the old behaviours and acquiring new ones. change his behaviour from being a smoker to being a non-smoker. that is. the person must develop a sense of psychological safety in order to replace the old behaviours with new behaviours. mentor. Refreezing the behaviour at the new level. Scanning the environment for new relevant information Stage 3: Refreezing: Helping the client to integrate the new point of view into a. Identifying with a new role model. Significant relationships. judge things. A Three-Stage Model of the Change Process: Stage 1: Unfreezing: Creating motivation and readiness to change through a. Take the example of a man who smokes cigarettes and wants to quit. In stage 1. Finally. the non-smoking behaviour must become permanent. That is.
and 5 correspond ro Lewin’s moving phase. These "road maps" are useful for thinking about change. Phase 5: Transforming intentions into actual change efforts. for example. This phase corresponds to Lewin’s refreezing phase. The primary task in stage 3. moving.2. Phase 4: Examining alternative routes and goals. identifying with ex-smokers and learning about the health risks of smoking. and Bruce Westley. Phase 6: Generalizing and stabilizing change. This motivating evidence is gained by. 6.2 Beyond the “Quick Fix” A comprehensive change model by Ralph Kilmann specifies the critical leverage points for organizational change. is to integrate the new behaviours into the person’s personality. Their seven stages are as follows: Phase 1: Developing a need for change. 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. the person undergoes cognitive restructuring. The person acquires information and evidence showing that the change is desirable and possible. terminating the client-consultant relationship. that is. Phase 2: Establishing a change relationship. They expanded the three-stage model into a seven-stage model representing the consulting process. stabilizing the changes requires testing to see if they fit-fit with the individual. establishing goals and intentions of action. In this phase a client system in need of help and a change agent from outside the system establish a working relationship. refreezing. This model has five sequential stages: 1) Initiating the program. That is. Jeanne Watson. 4. and fit with the individual’s social surroundings. Phases 3. Phase 3: Clarifying or diagnosing the client system’s problem. Phase 7: Achieving a terminal relationship. This seven-stage model lays out the logical steps involved in OD consulting. . Similar models have been developed by Kolb and Frohman and by Burke.In stage 2. and attitudes. This phase corresponds to Lewin’s unfreezing phase.
3) The team-building track. These problems and opportunities will be the targets of later interventions. Kilmann’s five tracks are: 1) The culture track. 4) The strategy-structure track. The management-skills track provides all management personnel with new ways of coping with complex problems and hidden assumptions." that. and willingness to change among members the conditions that must exist before any other improvement effort can succeed. Kilmann describes the five tracks: What does each track do for the organization? The culture track enhances trust. critique practices and procedures. Change programs take from one to five years to complete. Initiating the program entails securing commitment from top management. 3) Scheduling the "tracks". . The team-building track infuses the new culture and updated management skills into each work unit – thereby instilling co-operation organization-wide so that complex problems can be addressed with all the expertise and information available. 2) The management skills track. Scheduling and implementing the "tracks" involve intervening in five critical leverage points. called "tracks.2) Diagnosing the problems. and 5) The reward system track. when functioning properly. 4) Implementing the "tracks" 5) Evaluating the results. problem-solving sessions. Diagnosing the problems requires a thorough analysis of the problems and opportunities facing the organization. and so forth. information sharing. cause the organization to be successful. Interventions include training programs. communication.
Eastman Kodak. departments. and beliefs that are enduring. The reward-system track establishes a performance-based reward system that sustains all improvements by officially sanctioning the new culture. Kilmann has tested his model at AT&T. then moving to the team-building track. work groups. revolutionary. Ford General Electric. On the other hand. friendly or unfriendly. and its holistic view of organization change and development. jobs.The strategy-structure track develops either a completely new or a revised strategic plan for the firm and then aligns divisions. organizational culture is defined as deep-seated assumptions. incremental. with an increasing emphasis on second-order transformational change. beginning with the culture track. some features of the organization change but the fundamental nature of the organization remains the same. the use of updated management skills. Organizational climate is defined as people’s perceptions and attitudes about the organizationwhether it is a good or bad place to work. OD programs are directed toward both first. In second-order change. its identification of the five tracks as critical leverage points. the nature of the organization is fundamentally and substantially altered – the organization is transformed. then moving to the management skills track. hard-working or easy-going. The model distinguishes between organizational climate and organizational culture. The premise of the BurkeLitwin model is this: OD interventions directed toward structure. These perceptions are relatively easy to change because they are built on employees’ reactions to current managerial and organization practices. TRW. evolutionary. This model shows how to create first-order and second-order change (which the authors call “transactional change” and “transformational change”). Changing culture is much more difficult than changing climate. values.2. In first-order change. An OD consultant implements the tracks in a phased sequence. and Xerox with good results. management practices. adaptive. often unconscious. or continuous change.and second-order change. and . Second-order change goes by many different labels: transformational.3 The Burke-Litwin Model of Organizational Change The next model to be examined is the Burke-Litwin model of individual and organizational performance. First-order change goes by many different labels: transactional. One likes this model because of its comprehensive nature. or discontinuous change. and so forth. radical. General Foods. developed by Warner Burke and George Litwin. 6. Westinghouse. and so forth. and all resources with the new strategic direction. and difficult to change. and co-operative team efforts within and among all work groups.
We will do so in several steps. 6. interventions directed toward mission and strategy. and organization culture result in second-order change." Transformational leadership embodies inspiration which leads to new heights of performance. Transactional leaders are "leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements. Following figure shows the factors involved in first-order (transactional) change.1: The Transactional Factors Involved in First – Order Change . which change motivation and. leadership." Transactional leadership embodies a fair exchange between leader and follower that leads to "normal" performance. Now let us look at the Burke-Litwin model. and systems cause changes in work unit climate. individual and organizational performance. in turn. Transactional leadership is required to make this change in organizational climate.systems (policies and procedures) result in first-order change. 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. management practices. Transformational leadership is required for causing second-order change. Transactional leadership is sufficient for causing first-order change. 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. Changing structure. Fig. The model also makes a distinction between transactional and transformational leadership styles.
The top half of figure displays the factors involved in transformational change. and systems produce transactional change or change in organizational climate. that is.” We consider the Burke-Litwin model to be a significant advance in thinking about planned change. sudden "leaps" in behaviour. Burke and Litwin propose that interventions directed toward leadership. mission and strategy.2: The Transformational Factors Involved in Second – Order Change On the other hand. To summarize. and organization culture. One set primarily is associated with the transactional level of human behaviour or the everyday interactions and exchanges that create the climate. Interventions directed toward management practices. and then targets interventions toward factors of the organization that produce the desired change. we must change mission and strategy. structure. These factors are powerful enough to change the culture fundamentally. as shown in the above figure. and organization culture produce transformational change or fundamental change in the organization’s culture. The second set of dynamics is concerned with processes of human transformation.Fig. The bottom half of figure displays the factors involved in transactional change. these transformational processes are required for genuine change in the culture of an organization. 6. leadership styles. if we want to cause second-order (transformational) change. Burke says: “Thus there are two distinct sets of organizational dynamics. Research by Burke and his students suggests the model performs as intended. which produces changes in individual and organizational performance. The OD practitioner sizes up the change situation. determines the kind of change required (transactional or transformational). The above two figures together yield the full Burke-Litwin model shown in the following figure. . Interventions directed toward these factors transform the organization and cause a permanent change in organization culture. These factors are able to change the climate.
6. The basic premise is that OD interventions alter features of the work setting causing changes in individuals’ behaviours. and technology. physical setting. which in turn lead to individual and organizational improvements.Fig. and interaction processes will affect social factors. It is how OD works. according to Porras and Robertson. Keep this framework in mind as you read the units on OD interventions because all interventions target one or more factors shown in figures. and rewards will affect organizing arrangements. Interventions that focus on job design and work flow design will affect technology.2. rewarded). The premise modeled here is that work setting factors influence organizational members’ cognitions (they learn what is expected.4: Organizational Work-Setting Factors This model is extremely useful for OD practitioners and organizational leaders. social factors. and these behaviour changes occur when elements of the work setting have been modified by OD interventions. 6. OD interventions that focus on goals. This model shows how OD interventions can be linked to factors in the work setting. Organizational change occurs only when individuals change their behaviour. it is described in a discussion by Porras and Peter Robertson. For example. management style.4 Porras and Robertson Model of Organizational Change Jerry Porras and his associates developed a model of how organization development works.3: The Burke Litwin Model of Organizational Performance and Change 6. The work setting plays a central role in this model and consists of four factors: organizing arrangements. required. . Following figure shows the work setting in the larger organizational framework. which determine organizational performance and individual development. Interventions that focus on culture. which influence on-the job behaviours. Fig. strategies.
6. unitary whole composed of two or more interdependent parts. and delineated by identifiable boundaries from its environmental supra. one begins by identifying the individual parts and then seeks to understand the nature of their collective interaction. interconnectedness. and interrelatedness among elements in a set that constitutes an identifiable whole or gestalt. describes the characteristics of systems. and shows how systems theory enhances the practice of OD. This section explains systems theory. or subsystems. which views organizations as open systems in active exchange with their environment. components." Hanna says: "A system is an arrangement of interrelated parts. Fagen defines system as "a set of objects together with relationships between the objects and between their attributes. that is the system.3 Systems Theory A second foundation of organization development is systems theory.5: A Change-based Organizational Framework 6.system.Fig. The words ‘arrangement’ and ‘interrelated’ describe interdependent elements forming an entity. Systems theory is one of the most powerful conceptual tools available for understanding the dynamics of organizations and organizational change. Thus." Von Bertalanffy refers to a system as a set of "elements standing in interaction." To summarize. . and Katz and Kahn were the first to apply open systems theory to organizations in 1966. when taking a systems approach. system denotes interdependency. Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950." Kast and Rosenzweig define system as "an organized.
and characteristics of open systems are well-known.6. we examine the characteristics of open systems drawing OD expositions by Katz and Kahn and Hanna. or transformation processes that change the inputs. Every system is delineated by a boundary. studying open systems leads to a good understanding of organizations. Organizations achieve negative entropy when they are able to exchange their outputs for enough inputs to keep the system from running down. 6.6: A System in Interaction with its Environment The law of entropy states that all systems “run down” and disintegrate unless they reverse the entropic process by importing more energy than they use. and if the environment does not want these outputs. and energy between system and environment. What is inside the boundary is the system. Here. A good rule of thumb for drawing the boundary is that more energy exchange occurs within the boundary than across the boundary. Therefore. and what is outside the boundary is the environment. in that they permit exchange of information. For example. Organizations are open systems. Systems take inputs from the environment in the form of energy. people. resources. Boundaries of open systems are permeable. Each of these three system processes must work well if the system is to be effective and survive. Fig. All open systems are input-throughput-output mechanisms.1 The Nature of Systems The nature. raw material and so on. dynamics. These purposes must align with purposes or needs in the environment. money. conversion. and they export products to the environment in the form of outputs. the organization’s purposes will be reflected in its outputs. the organization will cease to exist. information. They do something to the inputs via throughput. Open systems have purposes and goals.3. . the reasons for their existence.
Positive feedback measures whether or not the purpose and goals are aligned with environmental needs. while screening out other information. competitors. Subsystems exist within larger systems. It is also known as deviation-correcting feedback. Another characteristic of open systems is steady state or dynamic homeostasis. but most are not useful. "return to earth. that information is called positive feedback. the principle that there are multiple ways to arrive at a particular outcome or state – systems have multiple paths to goals. say. organizations in the fast-food industry pay a lot of attention to information about their industry-nutrition. and complex over time. this process is called differentiation. Negative feedback measures whether or not the output is on course with the purpose and goals. systems tend to get more elaborated. It is sometimes called deviation-amplifying feed back. The three major input factors are: . For example. If the mission (target) changes. Another characteristic of systems is equifinality. and makes a course correction. 6. differentiated. By the same token. The usefulness of the two concepts is that they demonstrate that it is not enough to merely measure our outputs versus the intended targets.2 Congruence among System Elements David Nadler and associates at Delta Consulting Group developed the congruence model for understanding organizational dynamics and change.Information is important to systems in several ways. they usually ignore information about other industries such as electronics. With increased differentiation. Positive feedback comes from the environment. and so on. Systems are bombarded by all kinds of information: some are useful. Systems achieve a steady state or equilibrium point and seek to maintain this equilibrium against disruptive forces. As Katz and Kahn say: “The basic principle is the preservation of the character of the system.” Also. This model depicts the organization as an input-throughput-output system. Say your company makes buggy whips.3. Negative feedback tells you if you are on track with your scheduled production output. Systems require two kinds of feedback. Feedback is information from the environment about system performance. These subsystems can be arranged into a hierarchy of systems moving from less important to more important. Systems "code" useful information and incorporate it. it receives information to that effect in the form of negative feedback. however. and the like. specialized." Here is another example of negative and positive feedback. negative and positive. Survival of the system is equally influenced by whether or not the targets themselves are appropriate. mining. increased integration and co-ordination are necessary. and the system adjusts to a new goal. it will signal whether the environment needs and/or wants buggy whips. aerospace. and the production plan calls for 100 buggy whips per month. For example. if a rocket ship traveling to the moon strays off its trajectory. either internal or external. eating fads.
and technology. important events.1) The environment.7: The Congruence Model Showing the Organization as a System The congruence model’s value is as an analytical tool for: 1) Assessing the characteristics and functioning of each of the elements. and how things really work (versus how they are supposed to work as defined by the formal organization). the tasks people perform to create products and service markets people. which includes formal structures. knowledge. failures. processes. Outputs are performance at the total organization level. people. If the organization’s culture (informal organization) praises individual accomplishments and the work requires teamwork and collaboration. If the strategy calls for entrepreneurial quickness and risk-taking and the formal organization is bureaucratic and highly centralized. which components are "not functioning correctly. and critical decisions that still influence behaviour today. work." The premise is that alignment (harmony. unit/group level. if people don’t have the skills and knowledge required to do the work. performance will suffer. such as capital. performance will suffer. which imposes constraints and opportunities about what the organization can and can not do. and the workforce’s expectations. 2) Resources available to the organization. Elements of the organization per se are labeled strategy." and which elements . Fig. You can use this model to analyze organizations with which you are familiar. fit) must be present among the system’s components’ for the organization to produce satisfactory outputs. . which includes skills. and individual level. 6. and 3) History which consists of memories of past successes. performance will suffer. which includes the organization’s culture informal rules and understandings. what the organization is trying to accomplish and how it plans to do it. knowledge. formal organization. perceptions. For example. and 2) Evaluating the "goodness of fit" or how well the elements "go together. In a company that is performing poorly. and systems for performing the work. and informal organization.
socio-technical systems theory (STS) and open systems planning (OSP)-play an important role in organization development. and others at the Tavistock Institute in the 1950s. Open systems planning entails: 1) Scanning the environment to determine the expectations of external organizations and stake-holders. Principles such as optimizing the social and technical systems. forming autonomous work groups. 6. To achieve high productivity and employee satisfaction. that is. both realistic (likely to happen if the organization continues on its current course) and ideal (what the organization would like to see happen). and that changes in one system affect the other system. and identifying core tasks help STS consultants structure organizations and tasks for maximum effectiveness and efficiency.KI Jayaram. Another important application of systems theory in organization development is open systems planning. two active segments of OD today. multi-skilled teams. to the workers doing the job. Their technology became known as Open systems Planning (OSP). G. a social system and a technical system. 2) Developing scenarios of possible futures. Socio-technical systems theory was developed by Eric Trist. Charles Krone. Hanna writes: In the late 1960s a small team of consultants led by James Clark. STS is the principal conceptual foundation for efforts in work redesign and organization restructuring. Fred Emery. and information to the point of action. training group members in multiple skills. High-performance organizations almost always use principles from socio-technical systems theory. A number of design principles have been developed to implement socio-technical systems theory. controlling variance at the source.3 Socio-technical Systems Theory and Open Systems Planning Two major variations of open systems theory. especially autonomous work groups (self-regulated teams or self-direct teams). and Will McWhinney developed a technology for addressing the interface between organization and the environment. The thesis of STS is that all organizations are comprised of two interdependent systems. Systems models are essential for the practice of OD.are poorly aligned? In companies showing outstanding performance. organizations must optimize both systems. and . 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.3. giving information and feedback to the people doing the work.
from diagnosis to intervention to evaluation. Most OD practitioners engaged in redesign projects use a combination of socio-technical systems theory and open systems planning. a systems approach encourages analysis of events in terms of multiple causation rather than single causation.3. and incidents are not viewed as isolated phenomena. is the most important. one changes the system.4 Participation of Empowerment One of the most important foundations of organization development is a participation/ empowerment model. OD practitioners expect multiple effects. Third. This idea moves the practitioner away from analyzing historical events and toward examining contemporary events and forces. Of all these disciplines. 6. By enhancing each of the other disciplines. mental models. this combination is often used in designing high-performance organizations. Viewing organizations from this perspective has several consequences. systems thinking. systems theory pervades the theory and practice of organization development. Increased participation and empowerment . it continually reminds us that the whole can exceed the sum of its parts. It keeps them from being separate gimmicks or the latest organization change fads.3) Developing action plans to ensure that a desirable future occurs.” In conclusion. but seen in relation to other issues. 6. Participation in OD programs is not restricted to elites or the top people. from their activities. building shared vision. He says of systems thinking: “It is the discipline that integrates the disciplines. Fourth. For example. not just its component parts. events and forces. because most phenomena have more than one cause. it is extended broadly throughout the organization. events.4 Open Systems Thinking Open systems thinking is required for creating learning organizations. First. therefore. Without a systemic orientation. team learning. according to field theory (Kurt Lewin). and systems thinking. to change a system. fusing them into a coherent body of theory and practice. Second. And fifth. forces. issues. the forces in the field at the time of the event are the relevant forces for analysis. Learning organizations can cope effectively with rapidly changing environmental demands. Senge believes that five disciplines must be mastered to create a learning organization: personal mastery. there is no motivation to look at how the disciplines interrelate. the fifth discipline. according to Peter Senge. not single effects. changing one part of a system influences other parts.
and empowerment in turn enhances performance and individual well-being. they must if personally connected to . increase commitment to the organization. and the culture audit are all predicated on the belief that increased participation will lead to better solutions. Quinn and Spreitzer conclude: “Empowerment. to contribute their ideas. which they call "mechanistic. Participation enhances empowerment. Further. and growth. autonomous work groups. Participation is a powerful elixir-it is good for people and performance. and greatly enhance acceptance of decisions. reduce stress levels. They believed that it was about risk-taking. employees must choose to be empowered. quality of work life programs." direct leaders to push decision-making lower in the organization. personal initiative. Robert Quinn and Gretchen Spreitzer found two vastly different views of empowerment. which is done by giving individuals the authority to make decisions. Researchers found that group dynamics work to overcome resistance to change. OD interventions are basically methods for increasing participation. growth. the organic approach unleashes talent and energy in people that are best channeled by providing clear guidelines and boundaries. is not something that management does to employees. Rules of thumb such as "Involve all those who are part of the problem or part of the solution." and "Have decisions made by those who are closest to the problem. is the more useful perspective. They describe the organic view: "The other group of executives saw empowerment much differently. While management can create a context that is more empowering. For example. team building. to exert influence. and change." is bottom-up and less controlling. and give more power to more people. The entire field of OD is about empowerment. Participation is an especially effective form of empowerment. search conferences. involvement and participation energize greater performance. but rather a mind-set that employees have about their roles in the organization. Empowerment meant trusting people and tolerating their imperfections. The most important contrast between the two views involves the implicit but potentially volatile assumptions people make about trust and contro1. produce better solutions to problems. They must see themselves as having freedom and discretion. with its emphasis on risk-taking. To empower is to give someone power. This research demonstrated that most people desire increased involvement and participation. OD interventions are deliberately designed to increase involvement and participation by organization leaders and members." These authors believe the organic view. The other view.have always been central goals and fundamental values of the field. But both views contain valid ideas: for example. One view. treat those closest to the problem as the relevant experts. survey feedback. Research on group dynamics began in the 1940s and achieved exponential growth in the 1950s and 1960s. These pillars of OD practice are validated by both research and practice. called "organic. and to be responsible." is a top-down delegation of decision-making with clear boundaries and strict accountability that increases managerial control. then. quality circles. and generally make people feel better about themselves and their worlds.
the organization. the noun team has become a verb. The message of this section is that putting those empowered individuals into teams creates extraordinary effects on performance and satisfaction. If the team. A number of OD interventions are specifically designed to improve team performance. status. In this section. The previous discussion focused on empowerment and concluded that the act of empowering individuals greatly increased their performance and satisfaction. many tasks are so complex they cannot be performed by individuals. teams satisfy people’s needs for social interaction. teams at 3M generate the hundreds of innovations that keep 3M ahead of its competition. much individual behaviour is rooted in the socio-cultural norms and values of the work team. and respectteams nurture human nature. process consultation. Teams and teamwork are "in. Examples are team-building. teams create synergy.5 Team and Teamwork A fundamental belief in organization development is that work teams are the building blocks of organizations. systems. to name just a few. crossfunctional "design-build" teams developed the Boeing 777. research. we examine the potential of teams and teamwork. Teams and teamwork are among the "hottest" things happening in organizations today – gurus extol the virtues of teams. HPWSs (high-performance work systems). confident about their abilities. Fourth. and explore ways to realize that potential. processes. the effects on individual behaviour are immediate and lasting. Theory. . recognition. inter-group team-building. as a team. quality circles. Third. Synergy is a principal reason teams are so important. Teams and teamwork are part of the foundation of organization development. Teams at Motorola produced its bestselling cellular phones.” 6. A second fundamental belief is that teams must manage their culture. STS (socio-technical systems). and capable of having an impact on the system in which they are embedded. people must work together to accomplish them. "The evidence is abundantly clear: Effective teams produce results far beyond the performance of unrelated individuals. and relationships if they are to be effective. Second. QCs (quality circles). and team-related acronyms abound-SDTs (self-directed teams). HPOs (high-performance organizations). and practice attest to the central role teams play in organizational success. the sum of the efforts of team members is far greater than the sum of the individual efforts of people working alone. that is. teaming. Team Taurus developed Ford’s best-selling automobile. Teams are important for a number of reasons: First. Team Saturn produced the Saturn automobile. changes those norms and values.
temporary teams. and others. 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. heart transplant surgical teams. and the like. Union Pacific Railroad. All these characteristics are required for superior team performance. The net effect is that teams perform at increasingly higher levels. When any one feature is lost. Investigators are discovering why some teams are successful while others are not. help each other. and set ever-higher goals. cross-functional teams. autonomous. socio-technical systems programs. the crew of the USS Kitty Hawk. High-performance teams regulate the behaviour of team members. and individuals are trained as group leaders and group facilitators. to determine the characteristics that make them successful. 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. Larson and LaFasto found eight characteristics always present: 1) A clear.parallel learning structures. Grid OD and techniques such as role analysis technique. He uses examples from EDS (Electronic Data Systems). and that teamwork becomes more satisfying for team members. including collegiate football national champions. and responsibility charting. These interventions apply to formal work teams as well as startup teams. . people are trained in group dynamics and group problem-solving skills. Teams periodically hold team-building meetings. find innovative ways around barriers. team performance declines. Larson and LaFasto studied a number of high-performance teams. Team-building activities are now a way of life for many organizations. Asea Brown Boveri. Tom Peters asserts in Liberation Management that cross-functional. role negotiation technique. that they achieve synergy. empowered teams are what the best organizations are using right now to outdistance the competition. 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.
6 Parallel Learning Structures Parallel learning structures. constitute another important foundation of organization development. managers. Dale had introduced this concept in 1974 under the label collateral organization and defined it as “a supplemental organization coexisting with the usual formal organization. and countless other organizations to demonstrate the ability of small project teams to produce high quality. superior customer service. The most important and difficult task for the people creating the parallel learning structure is to create a different culture within it. especially when the change involves a fundamental shift in the organization’s methods of work and/or culture.” Parallel structures help people break free of the normal constraints imposed by the organization.” The purpose of the collateral organization is to deal with "ill-structured" problems the formal organization is unable to resolve. and employees. projects will be performed by teams. deciding. and high accountability drive these project teams to outperform traditional organization structures on every measurable dimension. Parallel learning structures are often the best way to initiate change in large bureaucratic organizations. normal hierarchical considerations become obsolete for these project teams-you could be the boss of one team. talking. In essence. 6. specially created organizational structures for planning and guiding change programs. Interestingly. If you don’t implement different norms and procedures. and report to one of your subordinates on another team. It isn’t the supplemental structure that’s important.7 A Normative – Re-educative Strategy of Changing . At Ford Motor Company. Projects are the work of the future. Most socio-technical systems redesign efforts and open systems planning programs use parallel structures. flexible response. The charge to members of the parallel learning structure is to think and behave in ways that are different from the normal roles and rules of the organization. and then leading the process. and continuous learning. and acting differently than normally takes place at work.Titeflex. parallel structures are a vehicle for learning how to change the system. Bushe and Shani say: “The key thing about parallel structures is that they create a bounded space and time for thinking. 6. a steering committee and working groups were used to co-ordinate the employee involvement teams. engage in genuine inquiry and experimentation. Parallel learning structures are a foundation of OD because they are prevalent in so many different OD programs. clear objectives. High responsibility. High-performance organizations often use parallel structures to co-ordinate self-directed teams. Considerable experimentation with collateral organizations occurred in the 1970s and 1980s. What’s important is that people act in a way that promotes learning and adaptation. you don’t have a parallel structure. and initiate needed changes. The quality of work life programs of the 1970s and 1980s used parallel structures composed of union leaders.
." Solutions to problems are not a priori assigned to greater technical information but may reside in values. strategy has the following implications for the practice of OD. These strategies build upon assumptions about human motivation different from those underlying the first. and’ negative feelings are surfaced for "working through. The norms to be changed and the form of re-education are decided by the client system members.Organization development involves change. they impel a collaborative effort rather than a "doing something to" effort. and together they define problems and seek solutions. skills. The client system members define what changes and improvements they want to make. Anything hindering effective problem solving is brought to light and publicly examined. according to this view. not just changes in knowledge. Evaluated against these three change strategies. Chin and Benne indicate the nature of the normative-reductive strategy as follows: A second group of strategies we call normative-re-educative. anxieties. and they give more options to both the clients and the practitioner. Patterns of action and practice are supported – by socio-cultural norms and by commitments on the part of the individuals to these norms. These implications give clients considerable control over the situation. attitudes. will occur only as the persons involved are brought to change their normative orientations to old patterns and develop commitments to new ones. The first type is empirical rational strategies. Change in a pattern of practice or action. that is. or intellectual rationales for action and practice. information. relationships and customary ways of doing things. And changes in normative orientations involve changes in attitudes. based on the assumptions that norms form the basis for behaviour. based on the assumptions that people are rational. and will change if and when they come to realize change is advantageous to them. based on the assumption that change is compliance of those who have less power with the desires of those who have are power. and it rests on a particular strategy for change that has implications for practitioners and organization members alike. will follow their rational self-interest. The point here is that different strategies are available for effecting change. and OD is based primarily on a normative-re-educative strategy and secondarily on a rational-empirical strategy. The second group of strategies is normative-re-educative strategies. and change comes through re-education in which old norms are discarded and supplanted by new ones. Chin and Benne suggest that a normative-re-educative. The rationality and intelligence of men are not denied. The third set of strategies is the power-coercive strategies. values. OD clearly falls within the normativere-educative category. Chin and Benne describe three types of strategies for changing. the practitioner intervenes in a collaborative way with the clients. and significant relationships. although often OD represents a combination of the normative-reeductive and the empirical-rational strategies. rather than the OD practitioner. Sociocultural norms are supported by the attitude and value systems of individuals-normative outlooks which undergird their commitments. doubts.
norms can best be changed by focusing on the group." applied science. re-establishes the equilibrium. OD emphasizes the latter. or practice. and (2) "technology. OD is the application of behavioural science knowledge. Greenwood states: “The diagnostic and treatment typologies are employed together. Greenwood discusses the activities of the practitioner as follows: "The problem that confronts a practitioner is customarily a state of disequilibrium that requires rectification. success corroborating the diagnosis. Thus. for example. The aim of this discussion is to look briefly at how behavioural science knowledge becomes applied behavioural science knowledge. Although human behaviour in organizations is far from an exact science. on the basis of selected variables. on the basis of which he or she prescribes a solution that. The practitioner uses treatment as the empirical test of his diagnosis. by modifying a group norm or standards. with their elaborations and implications constitute practice theory.. and skills in ongoing systems in collaboration with system members. OD practitioners know about these patterns through research and theory. behavioural science knowledge.8 Applied Behavioural Science This foundation of OD relates to the primary knowledge base of the field. lawful patterns of events produce effectiveness and ineffectiveness. thereby solving the problem. then the individual will be a deviate and either will come under pressure from the group to get back into line or will be rejected entirely. placing it in a classification scheme or typology." Both diagnosis and treatment consist of observing a situation and. This process is customarily referred to as diagnosis and treatment. 6.” Norms help determine individual behaviour and a normative-re-educative strategy of changing pervades the practice of OD. On this point. the treatment typology allows the practitioner to know what remedial efforts to apply to correct the problem.” . The diagnostic typology allows the practitioner to know what category of situation he or she has examined. A conventional distinction is made between (1) "pure" or basic science. hopefully. Each type description of the diagnostic typology contains implications for a certain type of treatment. not the individual. the object of which is knowledge for its own sake.e. the object of which is knowledge to solve practical. i. the major leverage point for change is at the group level. The principles of diagnosis and of treatment constitute the principles of practice. applied science or practice.Because norms are socially accepted beliefs held by groups about appropriate and inappropriate behaviours. practices. The practitioner examines the problem situation. pressing problems. 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. failure negating it and thus requiring re-diagnosis.
6. Action research is a method that combines learning and doing – learning about the dynamics of organizational change. practice research and practice theory. the two top in puts. 6.8: Composition of Applied Behavioural Science Organization development is both a result of applied behavioural science and a. behavioural science research and two behavioural science theory. and doing or implementing change efforts." 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.” Concluding Comments: .From this "practice theory. then selecting and implementing treatments based on the diagnosis. and action planning based on the data. problem-solving method that replicates the steps involved in the scientific method of inquiry underlies most OD activities. had this to say about it: “The research needed for social practice can best be characterized as research for social management or social engineering. 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. perhaps more accurately. It is a type of action-research. represent contributions from applied science. it is a program of applying behavioural science to organizations. Kurt Lewin. form of applied behavioural science. Action research is especially well-suited for planned change programs. Fig. and finally evaluating the effects of the treatments. I am inclined to hold the opposite to be true. who developed the concept of action research. Action research involves three processes: data collection.9 Action Research The action research model – a data-based. represent contributions from pure or basic science. The two bottom inputs.
First—order change is also called ___________. _____________ means sum of the efforts of team members is far greater than the sum of individual efforts of members. Action research model combines learning and doing. . Taken separately. A fundamental belief in OD is that work teams are the building blocks of organizations. –––––––––– gave the model “Beyond the Quick Fix”. A _____________ is defined as “a set of elements standing in interaction.” 5. The Burke-Litwin model emphasized on first-order and second-order change.11 Terminal Questions 1. Taken collectively. each is a powerful conceptual tool for thinking out and implementing change. 3. OD interventions alter features of the work setting causing changes in individuals’ behaviours. 2. Ralph Kilmann specified the critical leverage points for organizational change. Systems theory views organizations as open systems in active exchange with their environment. 4.These foundations of organization development form the theoretical and practice underpinnings of the field.10 Summary The foundations of organizational development form the theoretical and practice underpinnings of the field. 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. 6. What are first-order and second order change according to Burke-Litwin Model of organizational change? Explain. In parallel learning structures members have to think and behave in ways that are different from the normal roles and rules of the organization. 2. –––––––––– means moving to new level of behaviour. they constitute the beginning of a theory of organization development and change that has enormous potential for improving organizational performance and individual development. Explain Kurt Lewin’s models and theories of planned organizational change. which in turn lead to individual and organizational improvements is the principle of Porras and Robertson model organizational change. Self Assessment Questions 1. 3. 6. Bring out the essence of “managing beyond the quick fix” model of organizational development.
1 2. MU0002-Unit-07-Organization Climate Unit-07-Organization Culture and Climate Structure: 7. Ralph Kilmann 3. Refer section 6.3 4. Transactional change 4.” Comment on this statement. What are the features of systems theory of organizational development? 5.2 3.12 Answers to SAQs and TQs SAQs: 1. Refer section 6. Refer section 6. Synergy Answers to TQs: 1. Refer section 6. System 5.2. Unfreezing 2.2.2 Characteristics of Organization Culture Culture and .4.Refer section 6.3 5.1 Introduction Objectives 7.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . “Work teams are building blocks of organizational development.2. 6.
6 Summary 7. You can tell the culture of an organization by looking at the arrangement of furniture. and feeling in relation to these problems (Schein. . Practitioners are coming to realize that. For example.8 Answers to SAQs and TQs 7. thinking. organizational change must include not only changing structures and processes. but everyone knows it when they sense it. for-profit corporation is quite different than that of a hospital which is quite different than that of a university. you will be able to: · Understand Organization Culture. etc. The concept of culture is particularly important when attempting to manage organization-wide change. the culture of a large. Culture is comprised of the assumptions. norms and tangible signs (artifacts) of organization members and their behaviors.4 Organization Culture and Effectiveness 7.3 Types of Organization Culture. what they brag about.5 Developing and changing Organization Culture Self Assessment Questions 7. discovered. 1986). – similar to what you can use to get a feeling about someone’s personality. · Describe different types of Organization Culture · Explain organization culture and effectiveness. Martin and Meyerson. despite the best-laid plans. Objectives: After studying this unit. and validated enough to be taught to new members as the correct ways of perceiving. organizational culture is the personality of the organization.7. what members wear. Comprehensively organization culture is the pattern of basic assumptions that is invented.7 Terminal Questions 7. Culture is one of those terms that’s difficult to express distinctly. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. values. but also changing the corporate culture as well. 7.1 Introduction Basically. Members of an organization soon come to sense the particular culture of an organization.
internal and external are viewed in market . Market The Market organization also seeks control but does so by looking outward. Low absenteeism and high efficiency. Philosophy: These are policies that set forth the organization’s beliefs about how employees and/or customers are to be treated. 7. do not do too little?” 3. New-comers must learn those “ropes” in order to be accepted as full-fledged members of the group. Note that the Market organization is not one which is focused just on marketing. this was considered the only effective way of organizing and is still a basic element of the vast majority of organizations. and rituals related to deference and demeanor.2 Characteristics of Organization Culture Organizational culture has a number of important characteristics. 4. but one where all transactions. 6. the way participants interact. including guidelines on how much work to do. Dominate value: These are major values that the organization advocates and expects the participants to share. Organizational climate: This is an overall “feeling” that is conveyed by the physical layout. Norms. For many years. When organizational participants interact with one another. and in particular taking note of transaction cost. they use common language. 2. They often have well-defined policies. Typical examples are high product quality. 5. Some of the most readily agreed upon are the following: 1. terminology. Hierarchical leaders are typically coordinators and organizers who keep a close eye on what is happening. processes and procedures. Hierarchies have respect for position and power. and the way members of the organization conduct themselves with customers or other outsiders. Observed behavioral regularities. 7.· Discuss about developing and changing organization culture. Standards of behavior exist.3 Types of Organization Culture Hierarchy The hierarchy has a traditional approach to structure and control that flows from a strict chain of command as in Max Weber’s original view of bureaucracy. Which in many organizations come down to “Do not do too much. Rules: There are strict guidelines related to getting along in the organization.
Clan The Clan organization has less focus on structure and control and a greater concern for flexibility. 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). innovative entrepreneurs who take calculated risks to make significant gains. clans often have flat organizations and people and teams act more autonomousl. Market cultures are outward looking. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. do still exist and are often communicated and inculcated socially. 7.4 Organization Culture and Effectiveness It is reflected in how things are done (Flanagan. One culture could be distinguished from another in terms of how some commonly shared human problems are addressed and the specific solutions that one sought (Trompenaars. Rather than strict rules and procedures. are particularly driven by results and are often very competitive. supportive way and may take on a parental role. discovered. 1995) and how problems are solved in an organization. although not necessarily documented. affecting the performance of every-one within the culture in positive or negative ways. people are driven through vision. It will use prototyping and experimenting rather than long. Adhocracy The Adhocracy has even greater independence and flexibility than the Clan. outputs and outcomes. strongly driven by loyalty to one another and the shared cause. Leaders in an adhocracy are visionary.terms. big-bang projects and development. shared goals. the adhocracy will rapidly form teams to face new challenges. value flows between people and stakeholders with minimal cost and delay. invisible to the naked eye. Rules. which is necessary in a rapidly changing business climate. In biological terms. In contrast to Hierarchies. Leaders in market cultures are often hard-driving competitors who seek always to deliver the goods. culture is like the DNA of an organization. Where market success goes to those with greatest speed and adaptability. Clan leaders act in a facilitative. but critical to shaping its behavior. It has an inward focus and a sense of family and people work well together. and validated enough to be taught to new members as the correct ways of . 1993). Comprehensively organization culture is the pattern of basic assumptions that is invented. In an efficient market organization. Transactions are exchanges of value.
and doing. · Public documents it releases and media reports and stories about it. The set of basic assumptions evolve into values artifacts and norms in terms of which an organization culture may be examined and understood. Thus. reflecting what is important in the organization and determining how the organization ought to be (the ethos. the jargon they use. etc. and are generally not compromised for short-term benefits or financial gains. and feeling in relation to these problems (Schein. plaques. the way they dress etc. is defined and conceptualized in different ways. and procedures. · The observable behavior of its members (the way they talk. The various approaches are judgmental and open to question. thinking. 1986). communicating.perceiving. Artifacts: The visible manifestations of culture as seen in the physical and social environment of the organization such as: · Its structure. . its core value are limited to a few in number. Values evolve out of the basic assumption and form the core (or heart) of the culture. the personality of the organization). For example. or standards held by members of an organization. Though an organization espouses a series of values. norms. Identifying. believing. goals. from the basis of its policies and action. and no unanimity is found in different approaches. Though a large volume of literature is available on the concept and working of organizational effectiveness. IBM norms dictate that employees should actively listen and respond to customer demands and complaints. various terms such as efficiency. individually and collectively. symbols. These are the essential and enduring tenets of an organization. They are reflected in the core capabilities of a company. and what is right and what is wrong. also called as organizational success or growth. rules. Values: These are the social principles.the informal rules of the fame telling employees what they are supposed to be saying. Martin and Meyerson. productivity. systems and subsystems. · Its rituals. there is often contradiction in various approaches. Organization Effectiveness Organizational effectiveness. 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.
2. and they tend to be long-term goals. attitudes. to denote organizational effectiveness. Causal variables include the structure of the organization and management’s policies.profitability. decisions. and perceptions of all members and their collective capacity for effective interaction. motivational. communication. 1. e. Intervening variables are concerned with building and developing the organization. performance goals. The intervening variables may be divided into two broad categories: (i) the intervening attitudinal. Grouping variables into these categories aids greatly in the correct interpretation of the data and their use for diagnostic and other purposes. skills. end-result variables are the dependent variables which reflect the achievements in the organization such as its productivity. costs. the process usually involves some version of the following steps: . and decision-making. are often used interchangeably. According to Likert. Though each individual’s effectiveness is significant but perhaps the most important aspect of effectiveness is its relationship to the entire organization. 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. intervening and end result. 7. the loyalties.5 Developing and Changing Organization Culture How Organizational Cultures Start Although organizational cultures can develop in a number of different ways. organizational growth. Many of these variables are caused by causal variables. These variables have been classified by Likert into three groups-causal.g. and behaviour. there are numerous variables.. and perceptual cluster. Intervening Variables: Intervening variables are those factors which are reflected as the internal state of organization. Whatever the criteria adopted for organizational effectiveness. This is one part of effectiveness that many managers overlook because it emphasis long-term potential as well as short-term performance. 3. From this point of view. the organizational analysis is incomplete for a practicing manager unless the factors underlying effectiveness are identifying. motivations. Causal Variables: Causal variables are those factors that influence the course of development within an organization and its results or accomplishment. and (ii) the intervening behavioral cluster. Likert states that causal variables are independent variables which determine the course of developments within an organization and the results achieved by the organization. scrap loss. business and leadership strategies. and earnings. These causal variables include only those independent variables which can be altered or changed by the organization and its management. Likert states that the intervening variables reflect the internal state and health of the organization. Causal variables include the structure of the organization and its management.which are useful in discussing organizational effectiveness over time.
Staffs. obtaining patents. 4. and a common history begins to be built. . the current environmental context has undergone drastic change and either the organization must adapt to these new conditions or it may not survive. if the appropriate organization culture is in place. Changing Organizational Culture Sometimes an organization determines that its culture has to be changed. Politics. 3. locating space. roles. and so on. is workable. 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. In addition. then such rapid change can be welcomed and accommodated with as little disruption and as few problems as possible. and energy that will be required. A single person (founder) has an idea for a new enterprise. The founder brings in one or more other key people and creates a core group that shares a common vision with the founder. building. New product development and information technology is changing so rapidly that any example would be soon out-of –date. 2. Even through some firms have had a culture in place to anticipate change. powerful stakeholders such as unions. Structure. age. others are brought into the organization. is worth running some risks for. Predictable obstacles include entrenched skills. the geographic location. relationships.1. The founding core group beings to act in concert to create an organization by raising funds. money. management. all in this core group believe that the idea is a good one. These factors from the two cultures include the size. That is. the industry in which the partners come from and now reside. However. incorporating. and is worth the investment of time. 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?. 2. or even customers may support the existing culture. and how this plays out among the partners will be important to cultural compatibility. At this point. and whether products and/or services are involved. and structures that work together to reinforce traditional cultural patterns. and history of two firms. For example. Where does the power and managerial decision making really reside? Corporate cultures range from autocratic extremes to total employee empowerment.
7. the “culture contract” that individuals have bought into to guide their day-to-day thoughts. 7. 2. 5. habits. commitment. Simple guidelines such as the following can be helpful. are particularly driven by results and are often very competitive. 2. _____are the visible manifestations of culture as seen in the physical and social environment of the organization. Expect to have some problems and find people who would rather move than change with the culture and. 9. Self Assessment Questions 1. if possible. 6. 4. Take out all trappings that remind the personnel of the previous culture. and patterns of daily behavior. 8. 1. Include employees in the culture change process. Move quickly and decisively to build momentum and to defuse resistance to the new culture. ___________are those factors that influence the course of development within an organization and its results or accomplishment. Make changes from the top down. Stay the course by being persistent. take these losses early. Set realistic goals that impact on the bottom line. ________cultures are outward looking.6 Summary . Emotions. so that a consistent message is delivered from all management team members. Guidelines for change Despite the significant barriers and resistance to change. The personal feelings. Assess the current culture. attitudes. 3.3. so that they are able to interact well with the organizational personnel. 3. Recruit outside personnel with industry experience. These emotions will be a major input into the clash or compatibility of the two cultures. This attempt to change culture can take many different forms. organizational cultures can be managed and changed over time. especially when making changes in rules and processes.
Refer section 7. Organizational effectiveness can be measured through various approaches. 7. system-resource approach. Discuss the development and change of organizational development.7 Terminal Questions 1. Briefly explain different types of organizational culture. behavioural approach. Market 3. Factors in organizational effectiveness include casual variables.Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. 2. Artifacts 2. Finally. and strategic constituencies approach. effectiveness through adaptive-coping cycle has been discussed. Explain the characteristics of organization culture.goal approach. intervening variables and end-result variables and there exists interrelationship among these variables.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 7. 3.3 3. 7. Effectiveness of an organization can be increased through economic man approach and administrative man approach. .8 Answers to SAQs and TQs SAQs: 1. Organizations to be successful must be efficient and effective. Causal variables Answers to TQs: 1. Refer section 7.2 2.
3 Two Faces of Power 8. we examine power and politics in relation to organization development. must be understood if one is to be effective in organizations. indisputable facts of organizational life. In this unit. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics.” Organization development has been criticized for not taking into account power in organizations.4 Theories about the Sources of Social Power 8.Power.1 Introduction Objectives 8. Politics and Organization Development Structure: 8.7 Operating in a Political Environment 8. As Warner Burke observes: "Organization development signifies change.9 Summary 8.6 The Role of Power and Politics in the Practice of OD 8.2 Power Defined and Explored 8.1 Introduction Politics and Power and politics. Organization Development Unit-08.8 Acquiring and using Power Skills Self Assessment Questions 8. and for change to occur in an organization. power must be exercised.MU0002-Unit-08Power. That criticism was essentially correct for many years although it is less valid .11 Answers to SAQs and TQs 8.10 Terminal Questions 8.5 Organizational Politics Defined and Explored 8.
· Acquire skills to handle power and politics in organizations.’ To have power is to be able to get desired things done.actions and the decisions that precede them. The French word ‘pouvoir’ stands for both the noun ‘power’ and the verb ‘to be able. confiscation. technological. the necessity of social interaction between two or more parties. The phenomenon of power is ubiquitous. Power-in-action may .2 Power Defined and Explored "Power is the intentional influence over the beliefs. you will be able to: · Define power and politics in organizations. spiritual. to effect outcomes." "Power is defined in this unit simply as the capacity to effect (or affect) organizational outcomes. Potential power is the capacity to do so. 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. We therefore define interpersonal power as the ability to get one’s way in a social situation.today. · Explain theories about the sources of power. Without influence (power) people would have no cooperation and no society. Without leadership (power) in medical. One person exerts power over another to the degree that he is able to exact compliance as desired. humankind would not have much of the misery it does today. · Explain the role of power and politics in the practice of OD. and outcomes favoring one party over the other. and repression. Without leadership (power) directed toward warfare. Objectives: After this studying this unit. but kinetic power is the act of doing so. the act or ability of influencing others. and behaviours of people. 8. political." Analyzing these definitions shows some common elements: effectance-getting one’s way." “Power is the ability of those who possess power to bring about the outcomes they desire. and organizational activities. financial. humankind would not have the standard of living it does today. 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.” “A has power over B to the extent that he can get B to do something that B would otherwise not do. emotions.
bestowed. suggests that many problems with power stem from the goals of persons with power and the means they use. 8. Crushing. Leading. selling. Roberts came to a similar conclusion in her study of "collective power" and "competitive power. being exercised. or acquired? In this unit. McClelland observed that while power has a negative connotation for most people. We think this distinction provides a good insight into the concept of power. How do some people come to possess power? How is power generated.3 Two Faces of Power David McClelland proposed an important distinction when he identified "two faces of power" – positive and negative. the negative face of power is characterized by a primitive. 8. an authority or power dimension is required. power being the predominant mode. unsocialized need to dominate others.4 Theories about the Sources of Social Power Power exists in virtually all social situations. it is through the use of power that things get done in the world. and lead. The positive face of power is characterized by a socialized need to initiate. we will examine four different views about who gets power and how: · Emerson’s "Power-Dependence theory." A moment’s reflection. The negative face of power seeks to dominate and control others. influence. .take many forms." Her research in four organizations showed both kinds of power." · Mintzberg’s Observations on the Genesis of Power in Organizations. forcing. influencing. It is especially salient in coordinated activities such as those found in organizations. This positive face of power enables others to reach their goals as well as lets the person exercising power reach his or her goals. or positive. for organizations to function. however." · French and Raven’s "Bases of Social Power. In fact. absolute power corrupts absolutely." · Salancik and Pfeffer’s "Strategic-Contingency Model of Power. the positive face of power seeks to empower self and others. coercing-these are examples of negative uses of power. In most organizations the positive face of power is much more prevalent than the negative face of power. According to him. with collective. both positive and negative. hurting. persuading-these are examples of positive uses of power. not the possession of power as such. 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.
rejection. we will continue the exchange relationship." These authors suggested five sources. blame. Power-dependence theory is related to a broader framework of social interaction called social exchange theory. power. Exchange theory and power-dependence theory are quite compatible with the ideas proposed by French and Raven. or feeling of oneness with) the power holder." In other words. which posits that what goes on between persons is an exchange of social commodities: love. French and Bertram Raven on "the bases of social power. rewards) that are controlled by one party. goals. Closely related to these ideas is the classic statement by John R. 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. The components of this theory are a social relation between two parties and resources (commodities. attraction. . 5. information. and (2) inversely proportional to the availability of those goals to A outside of the A-B relation. 2. that is. that person has power over us. Viewed in this light. or bases. to give something negatively valued by the other. 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. of social power as follows: 1. when the net balance for us is negative. that is. if a person has something we want badly and we cannot get it any other place. Social interaction represents an exchange of social goods and services. Expert power – power based on the powerholder possessing expert knowledge or expertise needed by the other. The sociologist. Referent power – power based on the power-receiver having an identification with (attraction to. 4. P. When the net balance for us is positive. and so forth. respect. 3.Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another. Coercive power – power based on the ability of the powerholder to punish another. and desired by the other. to give something valued by the other. 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. Informational power is a form of expert power where the powerholder possesses important facts or information needed by the other. power belongs to those persons who control or mediate desired commodities. praise. giving someone power over us is the commodity we exchange when we are dependent on that person for something we want. In this theory. influence. we will terminate or alter the relationship. hate. Reward power – power based on the ability of the powerholder to reward another.
The strategic-contingency model of power asserts that power in organizations accrues to the subunits (individuals. called influencers. Salancik and Pfeffer further suggest how power is used: "Power is used by subunits. The fourth basis is legal prerogatives-being given exclusive rights to impose choices. In addition to a base of power. or information. A fifth basis of power is access to those who have power based on the first four bases. An organization has many potential influencers. indeed. first.others-in this case. the influencer must have both the "will" and the "skill" to use it." These authors view organizational power as a good thing. the ability to solve critical problems or exigencies-anything that creates dependence of one actor or set of actors on another. the managers. used by all who have it. According to Mintzberg. units. that power-in-action requires will and skill. third. In summary. and through the definition of organizational problems and policies. second. All of these must be critical to the organization. regulators. control of a resource. and that the organization is the context for the exercise of power. Henry Mintzberg has developed a theory of organizational power drawn from the organization theory literature and his own creative synthesis abilities. and so forth. the unions. control of a technical skill. control of a body of knowledge. The important aspects of Mintzberg’s theory are that the sources of power derive from possession of a commodity desired by others. and. coupled with 2) The expenditure of energy in a 3) Politically skillful way. . the five possible bases of power are. suppliers. These critical problems are generally "uncertainties" posed by the environment. "is built on the premise that organizational behavior is a power game in which various players. This theory. like the ones discussed previously. to enhance their own survival through control of scarce critical resources. or departments) most important for solving the organization’s most critical problems. This theory. being in control of critical skills. these four views of the sources of power are remarkably similar – power stems from possession of or mediation of desired resources. supports the notion that those who have something highly valued by. the employees. such as the board of directors. The resources may be ability to reward and punish. the special expertise needed for the organization’s survival-have power. through the placement of allies in key positions." The three basic conditions for the exercise of power are 1) Some source or basis of power. knowledge. customers. for power in the hands of the critical problem solvers helps the organization cope with the various realities it faces. the top executives. seek to control the organization’s decisions and actions.
engaging in open problem solving followed by action and influencing. you must lose-rather than win-win terms. the last two definitions view politics as illegitimate or unsanctioned activities. These key areas are the battlefields where actors win and lose. Organizational politics tend to be associated with decision-making. initiate. withholding information. illegitimate in nature. For our purposes.5 Organizational Politics Defined and Explored Harold Lasswell defined “politics simply as the study of who gets what. and how”. organizational politics is power-in-action in organizations. Analyzing these definitions suggests that the concepts of power and politics are similar. Likewise we also treat authority as a subset of power. “Organizational politics involve intentional acts of influence to enhance or protect the selfinterest of individuals or groups”. deceiving. viewing situations in win-win terms as much as possible. The positive face is characterized by a balanced pursuit of self-interest and the interests of others. one gains a quick understanding of the overall "political climate" of an organization by studying its methods of resource allocation. “Organizational politics involve those activities taken within organizations to acquire. One important feature in these definitions should be examined further. it is engaging in activities to get one’s way. has two faces. like power.8. 8. the power vested in office. We are inclined to consider politics as neither good nor bad per se but believe that politics. we view politics as a subset of power. conflict resolution. but in this sense. treating it as informal power. and a socialized need to lead. resource allocation. “Organizational politics is the management of influence to obtain ends not sanctioned by the organization or to obtain ends through non-sanctioned influence means”. and influence others. Both relate to getting one’s way-effectance. the capacity to get things done by virtue of the position held. they are where the "goods" are distributed and the goals decided. and choosing among alternative means and goals. holding hidden agendas. In fact. formal power. The negative face of politics is characterized by extreme pursuit of self-interest.6 The Role of Power and Politics in the Practice OD . The first three definitions treat politics as a neutral set of activities. surprise. and conflict resolution processes. unsocialized needs to dominate others. Both relate to pursuit of self-interest and overcoming the resistance of others. a tendency to view situations in win-lose terms-what I win. develop and use power and other resources to obtain one’s preferred outcomes in a situation in which there is uncertainty about choices”. Thus. a relative absence of the tactics of fighting. and predominant use of the tactics of fighting-secrecy. when.
problem solving is usually superior to power coercion as a way to find solutions to problematic situations. The practitioner is not a political activist or power broker. increases the amount of power available to organization members." 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. According to Chris Argyris. The role of the OD practitioner is that of a facilitator. Virtually. public data about the organization’s culture. provides a service that the organization is free to "buy" or "not buy. informed choice. and effective pursuit of goals while decreasing reliance on the negative faces of power and politics. it is instead a rational problem-solving approach that is incompatible with extreme poweroriented situations. In summary. But organization members are free to accept or reject the practitioner. and by so doing adds power to the organization. like all consultants. they enhance the positive face of power. public data are indispensable-for problem solving but anathema for organizational politics. Values such as trust. In this section we will attempt to integrate those concepts with organization development and offer advice to the OD practitioner for dealing with the political realities found in organizations. organization development represents an approach and method to enable organization members to go beyond the negative face of power and politics. and his or her values. individual dignity. and promoting individual and organizational competence are part of the foundation of organization development. For example. the "interventionist" has three primary tasks: (1) to generate valid useful information. fact-finding. "Power equalization" has long been described as one of the values of organization development. Cobb and Margulies caution that OD practitioners can get into trouble if they move from a facilitator role to a political role. all OD interventions promote problem-solving. methods. (2) to promote free. Not only is organization development not a power/political intervention strategy. as we discussed earlier. power equalization. rather. The OD consultant. We know of no OD interventions designed to increase coercion or unilateral power. being one aspect of the positive face of power. OD values are consistent with the positive face of power. openness. not politics. strengths. second. Valid. and weaknesses. his or her program. and (3) to promote the client’s internal commitment to the choices made. OD interventions do not deny or attempt to abolish the reality of power in organizations. The practitioner works to strengthen skills and knowledge in the organization. Emphasis on power equalization stems from two beliefs: first. problem solver. collaboration. co-operation. collaboration. and expertise. and educator. These values are congruent with rational problem solving and incongruent with extremely political modes of operating. processes. catalyst.We have discussed a number of ideas concerning power and politics. as a preferred way to get things accomplished. OD interventions typically generate valid. thereby making the negative face of power less prevalent and/or necessary. OD interventions increase problem-solving. This major . but not with the negative face of power.
Paying attention to these sources of power will enhance the likelihood of success of OD programs. Stature and credibility: Beer notes that power accrues to those who have been successful and effective. Success leads to credibility and stature. Resource management: Power accrues to those who control resources-in this case. According to the framework of French and Raven. the technology. Sponsorship: "Organization development groups will gain power to the extent that they have sponsorship. and ability to gain organizational support. the resources of OD expertise and ability to help organizational subunits solve their pressing problems. 6. and possibly referent power (others may identify with and be attracted to the consultant). in powerful places. 3. organization development practitioners operate from a potentially strong power base they can use to advantage. Group support: If the OD group is strong internally. Early success in the OD program and its usefulness to key managers of the organization helps promote this reputation. 5. 2. it will gain more power. expert power (the consultant possesses expert knowledge). First. 8. it will be strong externally. and the roles of OD practitioners." 4. If the OD group is cohesive and free of internal dissention. followed by some rules of thumb for the OD practitioner.strength of OD derives from the strategy of change. the OD consultant possesses power from the following bases: legitimate power (the OD program and consultant are authorized by the organization’s decision makers). informational power (the consultant has a wealth of information about the strengths and weaknesses of the organization). 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. These sources of influence produce a substantial power base that will enhance the likelihood of success. preferably multiple sponsorship.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. acceptability. the values. ."34 This maxim has been recognized for years under the heading of "get top-level support for the program. Competence: Demonstrated competence is the most important source of power.
Rule Three: Make the OD program a valued commodity for multiple powerful people in the organization. When the OD program serves the needs of top executives. constructive social relationships. OD programs should be results-oriented. Another way the OD program becomes a desired commodity is by focusing on important issues. Rule Four: Create win-win solutions. Each is derived from one general principle: Mind your own business. Sometimes OD practitioners overlook that they are hired by others. Many OD interventions promote win-win solutions for conflict situations. the manager will vigorously defend it. OD practitioners are likely to have high interpersonal competence by virtue of their training. communicating. Being of value to multiple powerholders rather than a single one both increases support and reduces the likelihood that the program will become the target of political activities. and expertise. . A valuable by-product of this fact is that if the program runs into political turbulence. OD professionals who are skilled in conflict management techniques and OD programs that encompass conflict resolution activities become valued commodities. Rule Two: Make the OD program itself a desired commodity. not the OD consultant. 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. 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. Rule Five: Mind your own business. and effective conflict management techniques are required to enhance stable. OD programs become desired commodities when they are instruments that allow individuals and organizations to reach their goals. and showing appreciation for the strengths of others are components of interpersonal competence. Good OD practitioners will have learned and practiced these skills. counseling. Beer and Walton argue that organization development should move from being practitioner centered to being manager-centered. coaching. Skills such as listening. Becoming a desired commodity as a person means being interpersonally competent and trustworthy. The nature of organizations and the nature of organization development suggest this rule. The preceding rules of thumb describe ways to increase or solidify one’s power base. The OD program belongs to the manager. OD consultants have a formal or informal contractual agreement with managers to help them do what they are trying to do-better. both as a person and as a professional. experience. Rule One: Become a desired commodity. The following rules describe ways to avoid becoming involved in one’s own or in others’ political struggles. those issues vital to the organization’s success. usually managers. which is to help someone else solve his or her major problems. problem solving. The role of the OD consultant is to help others upon request.
One carries out such a strategy by participating in alliances and coalitions. the strategy and tactics of influence. dealing directly with powerholders and decision makers. A subtle phenomenon is involved here: when people engage in illegitimate behavior. and the characteristics and behaviors of powerholders. Earlier we stated that the OD practitioner should learn as much as possible about bargaining. The principle is simple but powerful: know your legitimate business and stick to it. individual power derives from knowledge. 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. not content. and personality characteristics. Illegitimate behavior encroaches on others’ legitimate "turf. catalyst. while at the same time increasing his or her usefulness to the organization’s powerholders. Networking is recognized as a potent. not by getting involved in the answers. Illegitimate behavior causes others to try to exert greater control over the situation. Rule Seven: Mind your own business because to do otherwise is to invite political trouble. thereby greatly expanding practitioner influence. and educator." and "going around the formal system.Rule Six: Mind your own business. We believe the legitimate role of the OD practitioner is that of facilitator." OD practitioners have typically pursued a "playing it straight" strategy as their sole means of exerting power. problem solver. and using contacts for information. The authors propose adding the "using social networks" strategy to their repertoires. Table 8. yet legitimate means of acquiring power. Attention to these rules can save OD practitioners time and energy that can be more profitably invested in the OD program.1: Power Base and Power Strategy Connection Individual Power Bases Knowledge Strategies for Success Playing It Straight .8 Acquiring and Using Power Skills The OD practitioner is neither power activist nor power broker. Abiding by this rule keeps the consultant from becoming entangled in politics. 8. viable." which arouses defensive actions. but that does not mean practitioners must be naive or incompetent in the political arena. but these give the flavor of the issues one must consider when operating in a political environment. We could propose more rules of thumb. negotiations the nature of power and politics. Three successful power strategies are "playing it straight. As shown in the figure. not power activist or power broker. such behavior is often interpreted as politically motivated." "using social networks. others’ support.
a person’s power comes from two main sources. visibility-how much one’s work is seen by . in turn.· Expertise · Information · Tradition Others’ Support · Use data to convince · Focus on target group · Be persistent Using Social Networks · Alliances and coalitions · Deal with decision maker · Contacts for information Going Around Formal System · Work around roadblocks · (Don’t) use organization rules Political access Staff support Personality Charisma Reputation Professional credibility Finally. In this model. (Legitimacy refers to abiding by and promoting the values of the organization. even those of little power. personal power and position power. Whetton and Cameron’s model is shown in following figure. then utilize a facilitative OD process in which the powerholders work on strategic business issues using consensus decision making to develop a corporate strategy. how-to book on power and organization development is well worth studying. 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. The power structure will realize that collaborative power is preferable to manipulation and deception. arises from expertise. influence key powerholders to accept the OD program. criticality-how important one’s job is flexibility-the amount of discretion in the job. effort.) Position power derives from five sources: Centrality-access to information in a communication network. 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. which in turn will protect the interests of all concerned. This practical. Personal power. and legitimacy. personal attraction.
(2) selecting the proper influence strategy. and relevance-how important one’s task is in relation to organizational priorities. and reciprocity can be useful when reason fails. reciprocity. Networks are critical to effective performance for one compelling reason: Except for routine jobs. Indeed.influential people. "Power is converted into influence when the target individual consents to behave according to the desires of the power holder. and (3) empowering others. no one has the necessary information and resources to accomplish what’s expected of them. Retribution refers to coercion and threats.1: Model of Power and Influence Networking is used to increase both personal power and position power. 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. power-in-use is called influence. Fig." And. and retribution. “One of the most important ways of gaining power in an organization is by establishing a broad network of task and interpersonal relationships. Retribution is not recommended except in unusual cases. Reason refers to persuasion by facts. According to these authors. Usually reason is the preferred strategy. Reciprocity refers to exchange of favors. actually using it to get things done is another. 8. Whetton and Cameron suggest ." Three things are involved in converting power into influence: (1) resisting other people’s inappropriate influence attempts. 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”. Having power is one thing.
Define power in an organizational context and explain types of power. Power based on the power-receiver having identification with the power holder is called ––– ––––––––. Power and politics are similar in nature. Strategic-contingency model of power asserts that power that accrues to the individuals. 2. 8.9 Summary Power and politics are inseparable facts of organizational life. _____________ has identified two faces of power. Organizational politics is defined as the study of who gets what.10 Terminal Questions 1. and are amenable to positive control. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics. –––––– is the intentional influence over the beliefs. when and how. when. arise from known conditions. units or departments is most important in solving organizational problems. and (6) build on success. Self Assessment Questions 1. emotions or behaviour of people. –––––––– defined politics as the study of who gets what. (2) provide a positive. 4. we have examined power and politics with the goals of understanding the phenomena and deriving implications for OD practitioners. reputation and professional credibility. Organizational politics involve intentional acts of influence to enhance or protect the self-interest of individuals or groups. Methods for empowering others are the following: (1) involve subordinates in assigning work. . Power can be either positive or negative.. Our suggestions for using power to operate effectively in organizations may help practitioner avoid the perils and pitfalls of power that "go with the territory" of organizational change. and are amenable to positive control. and how. 8. (4) express confidence (5) foster initiative and responsibility. arise from known conditions. 5. collaborative work environment.several means of resisting others’ influence attempts such as confrontation and using countervailing power. (3) reward and encourage others in visible and personal ways. –––––––––– is made up of Charisma. Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another. Concluding Comments: In this unit. 3. Organizational power is the ability of those who possess power to bring about the outcomes they desire. Power and politics are similar in nature.
2. Explain the role of power and politics in the practice of OD. Define organization politics. Refer section 8. Power 2. Identify the bases of individual power and the respective strategies for their success.2 2. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9.4 3.1 Introduction . 5.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Personality Answers to TQs: 1. 3.11 Answers to SAQs and TQs SAQs: 1. Refer section 8. Referent power 4. Describe briefly various theories of power.Refer section 8. Harold Lasswell 5. 8. 4. Refer section 8.6 5. McClelland 3. Refer section 8.5 4.
These methods are receiving increasing attention in Organization Development. 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.2 Meaning and Definitions 9.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. In this dynamic and fluid environment.5 Quality Circles 9. Nothing is permanent except change because change is permanently changing. These programs are derived from careful diagnosis. events intended to help an organization improve its performance and effectiveness.9 Reengineering Self Assessment Questions 9.Objectives 9. An organization development intervention is a sequence of activities.3 Socio Technical Systems 9. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design. organizational problems may repeat.6 Quality of Work Life Projects 9. Objectives: .11 Terminal Questions 9.12 Answers to SAQs and TQs 9.8 Total Quality Management 9.7 Parallel Learning Structures 9. These interventions vary from standardized program that have been developed and sometimes tailored program.4 Management By Objectives 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.10 Summary 9. actions.
Succession Doesn’t Destroy Change Effort. meaning the major costs are associated with analysis and design of change. 4. One problem with behavioral/ group interventions is the tendency for new managers or employees to discount or fail to continue the change program. Organization Acceptance of Change. This normally is a reasonable. Structural changes are consistent with their operating styles and are generally understood by practitioners. In addition. Changes can involve decentralization and centralization.2 Meaning and Definitions Structural Intervention is related to the changes that relate elements of organization to one another. Basic reinforcement theories. 9. · Discuss the Management By Objectives · Explain the Quality Circles. · Explain Reengineering. · Discuss the parallel Learning Structures. Structure changes are normally “institutionalized” and less subject to this problem. you will be able to: · Explain the Socio technical change. Advantages of Structural Interventions There are a number of reasons why a consultant should consider employing a structural intervention. The cost of structural change is generally “front-end” loaded. 2. includes removing or adding layers to hierarchy. Downsizing associated with restructuring. Once diagnosed and an appropriate correction developed. organization theory. Rapidity of change. · Explain Total Quality Management. and OD practice enables the change agent to estimate the probable consequences of the change. Weeks and months of group effort are saved. change can be introduced relatively rapidly by top management. From a benefit cost analysis.After studying this unit. 3. 5. Managers and administrators are notoriously pragmatic. structural Interventions compare quite favorably with all other alternatives. Cost is Low. and more . their attractiveness is also increased by the following advantages: 1. Greater Predictability.
therefore. The term MBO was coined by Drucker in 1964 when he emphasized the concept of managing by results. is a technique and system which helps in improving organizational performance. 9.” . processes and functions to create a balance between the organization and its changing external environment. Its basic idea has been derived from the concept of participative goal setting as a technique of OD. Though there are some variations in the practices of MBO and. Cummings. It could involve the following steps (Foster. it has been defined as follows: MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. 1976.critically.3 Socio Technical Systems Socio-technical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. a predictable cost Implementation of group strategies involves significant long-term man-hour and consultant costs. its definitional aspect. It endeavors to re-design the organization’s structure. 1967. though not strictly an OD intervention in the sense in which other interventions have been discussed so far.4 Management by Objectives Management by objectives (MBO). Since then. Pasmore. many business and nonbusiness organizations have adopted this in some form or the other. consciously directed towards the effective and efficient achievement of organizational objectives. 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.
As an approach to management. managers have the opportunities for clarifying their job relationships with peers. 4. The review is future-oriented because it provides basis for planning and corrective actions. are determined on the basis of objectives. 3. etc. The performance review is held regularly.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. Whereas the various techniques of management help in measurement of results in resources. physical. Periodic review of performance is an important feature of MBO. often MBO provides the stimulus for the introduction of new techniques of management and enhances the relevance and utility of the existing ones. Therefore. It is a particular way of thinking about management. 6. delegation of authority.. MBO is an approach and philosophy to management and not merely a technique. non-specialist. The MBO is characterized by the participation of concerned managers in objective setting and performance reviews. Therefore. Objectives are established for all the levels of the organization. 2. each manager takes active part in setting objectives for himself and also in evaluating his performance as to how he is performing. superiors and subordinates. A management technique can be applied in selected parts of the organization and will have limited implications for its other parts. MBO employs several techniques but it is not merely the sum total of all these techniques. This is possible because MBO tries to match objectives and resources. MBO is likely to affect every management practice in the organization. its features can be identified as follows: 1. Certain degree of overlapping is there.” Based on the definition of MBO. Resource allocation. operational managerial process for the effective utilization of material. including the corporate level. Objectives in MBO provide guidelines for appropriate system and procedures. with objective orientation as its essence. MBO is the joint application of a number of principles and techniques. It emphasises initiative and active role by the manger who is responsible for achieving objectives. The total management process revolves round the objectives set jointly by the superior and the subordinate. 5. and human resources of the organization by integrating the individual with organization and organization with the environment. This process clarifies the role very sharply in terms of what one is expected to achieve. reward and punishment system is attached with the achievement of the objectives. normally once a year. its subsystems and people. It works as an integrating device. On the other hand. MBO is also concerned with determining what these results and resources should be. Objectives provide the means for integrating the organization with its environment. In fact. all the units or departments and individual manager. Similarly. MBO is bound to have some relationship with every management technique. The basic emphasis of MBO is on objectives. .
Process of MBO MBO is a system for achieving organizational objectives, enhancement of employee commitment and participation. Therefore, its process should facilitate translation of basic concepts into management practice. The MBO process is characterized by the emphasis on the rigorous analysis, the clarity and balance of objectives, and participation of the managers with accountability for results. The MBO process is not as simple as it appears to be. Managers need training and experience for developing the required skills. 1. Setting of Organizational Purpose and Objectives: The first step in MBO is the definition of organizational purpose and objectives. Questions, such as, “why does the organization exist?”. What business are we in?” and what should be our business?” provide guidelines for the statement of purpose. This, in interaction with external factors, then determines the long-range strategic objectives like (i) whether to achieve growth through expansion in the same line of business or diversity: (ii) what should be blending of trading and manufacturing activities; (iii) what should be the degree of vertical integration and so on. Usually the objective setting starts at the top level of the organization and moves downward to the lowest managerial levels. This will go in a sequence like this (i) defining the purpose of the organization, (ii) long-range and strategic objectives, (iii) short-term organizational objectives, (iv) divisional/departmental/sectional objectives, (v) individual manager’s objectives. 2. Key Result Areas: Organizational objective and planning premises together provide the basis for the identification of key result areas (KRAs). It may be emphasized that KRAs are derived from the expectations of various stakeholders and indicate the priorities for organizational performance. KRAs also indicate the present state of an organization’s health and the top management perspective for the future. Examples of KRAs applicable to most of the business organizations are (i) profitability, (ii) market standing, (iii) innovation, (iv) productivity, (v) worker performance, (vi) financial and physical resources, (vii) manager performance, and (viii) public responsibility. Even though KRAs are most durable, the list of KRAs gets considerably changed over the period in response to new needs and opportunities. Sometimes, the achievement in a particular KRA also provides the impetus for a new KRA in future. 3. Setting Subordinates’ Objectives: The organizational objectives are achieved through individuals. Therefore, each individual manager must know in advance what he is expected to achieve. Every manager in the managerial hierarchy is both superior and subordinate except the person at the top level and lowest level. Therefore, there is a series of superior and subordinate relationships. The process of objective setting begins with superior’s proposed recommendations for his subordinate’s objectives. In turn, the subordinate states his own objectives as perceived by him. Thereafter, the final objectives for the subordinate are set by the mutual negotiation between superior and subordinate. In the beginning of MBO process in an organization, there may be wide gap between the recommended objectives by the superior and subordinate’s stated objectives because the latter may like to put lesser burden on him by
setting easily achievable objectives. However, with the experience gained over the period of time, this gap narrows because of narrowing down of perception of superior and subordinate about what can be done at a particular level. 4. Matching Resources with Objectives: When objectives are set carefully, they also indicate the resource requirement. In fact, resource availability becomes an important aspect of objective setting because it is the proper application of resources which ensures objective achievement. Therefore, there should be matching between objectives and resources. By relating these to objectives, a superior manager is better able to set the need and economy of allocating resources. By relating these to objectives, a superior manger is better able to see the need and economy of allocating resources. The allocation and movement of resources should be done in consultation with the subordinate manager. 5. Appraisal: Appraisal aspect of MBO tries to measure whether the subordinate is achieving his objective or not. If not, what are the problems and how these problems can be overcome? Appraisal is undertaken as an ongoing process with a view to find out deficiency in the working and also to remove it promptly. It is not taken merely to punish the non-performer or to reward the performer. It is taken as a matter of system to ensure that everything is going as planned and the organization is able to achieve its objectives. 6. Recycling: Though appraisal is the last aspect of MBO process, it is used as an input for recycling objectives and other actions. Objectives are neither set at the top and communicated to the bottom nor are they set at the bottom and go up. Objective setting is a joint process through interaction between superior and subordinate. Therefore, what happens at each level may affect other levels also. The outcome of appraisal at one level is recycled to see if the objectives have been set properly at the level concerned and also at the next higher level. 9.5 Quality Circles Quality circle is one of the most popular methods in the USA which was originally developed in Japan in 1950s.Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. Quality circle requires a managerial philosophy and culture that promotes sharing power, information, knowledge, and rewards. Quality circle program consists of several circles, each having three to fifteen members. The original idea of quality circles involved small groups of volunteers meeting on a regular basis, but in its contemporary form, quality groups are often compulsory and organized around specific work teams. Some organizations have even gone as far as setting targets for the number of suggestions quality groups are expected to come up with. 9.6 Quality of Work Life Based on the research of Eric Trist et al. at the Tavistcock Institute of Human Relations in London, this approach looked both at technical and human sides of organizations and how they
are interrelated. QWL programs, in general, require joint participation by union and management in the process of work-designing, which consequently result into high level of task variety, appropriate feedback and employee discretion. The most distinguishing feature of QWL program is the development of self-managing work groups which consist of multi-skilled workers. 9.7 Parallel Learning Structures Parallel Learning Structures (also known as Communities of Practice) promote innovation and change in large bureaucratic organizations while retaining the advantages of bureaucratic design. Groups representing various levels and functions work to open new channels of communication outside of and parallel to the normal, hierarchical structure. Parallel Learning Structures may be a form of Knowledge Management. Knowledge Management involves capturing the organization’s collective expertise wherever it resides (in databases, on paper, or in people’s heads) and distributing it to the people who need it in a timely and efficient way. It Consists of a steering committee and a number of working groups that: · Study what changes are needed in the organization, · Make recommendations for improvement, and · Then monitor the resulting change efforts. 9.8 Total Quality Management It is a long term effort that orients all of an organization’s activities around the concept of quality. It is very popular in USA in 1990s.TQM pushes decision making power downwards in the organization, provides relevant information to all employees, ties reward to performance and increase workers knowledge and skills through extensive training. It is also called continuous quality improvement. A combination of a number of organization improvement techniques and approaches, including the use of quality circles, statistical quality control, statistical process control, self-managed teams and task forces, and extensive use of employee participation. Features that characterize TQM: · Primary emphasis on customers. · Daily operational use of the concept of internal customers. · An emphasis on measurement using both statistical quality control and statistical process control techniques.
2. actions. Sociotechnical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. events intended to help an organization improve its performance and effectiveness. Quality . · Top management support on an ongoing basis. structural Interventions compare quite favorably with all other alternatives. From a benefit cost analysis.· Competitive benchmarking. events intended to help an organization improve its performance and effectiveness. Reengineering focuses on visualizing and streamlining any or all business processes in the organization. 3. 9. An organization development __________ is a sequence of activities. · Continuous search for sources of defects with a goal of eliminating them entirely.9 Reengineering It is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical. · An emphasis on teams and teamwork. and speed. Self Assessment Questions 1. It seeks to make such processes more efficient by combining. There are a number of reasons why a consultant should consider employing a structural intervention. service. assumes neither an upward flow of involvement nor that consensus decision making. · Participative management. Reengineering is a top-down process. quality. or restructuring activities without regard to present hierarchical or control procedures. · A major emphasis on continuous learning. eliminating.10 Summary An organization development intervention is a sequence of activities. such as cost. 9. consciously directed towards the effective and efficient achievement of organizational objectives. The term MBO was coined by _________ in 1964. MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. contemporary measures of performance. __________ represents a participative approach to employee involvement in problem solving and productivity improvement. actions.
Refer section 9. 9. provides relevant information to all employees. Write a short note on Total Quality Management.5 4. Refer section 9.circle represents a participative approach to employee involvement in problem solving and productivity improvement.12 Answers to SAQs and TQS SAQs: 1. 9.11 Terminal Questions 1. Refer section 9. . What are the advantages of structural interventions? 3. Discuss Socio Technical Systems? 2.2 3.3 2. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. Refer section 9. Explain Management By Objectives? 4. Intervention 2.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Drucker 3. It is also called continuous quality improvement. ties reward to performance and increase workers knowledge and skills through extensive training. Quality circle Answers to TQs: 1. TQM pushes decision making power downwards in the organization.
3 Resistance to Change 10. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future. cope with the ongoing changes successfully in the first instance. Self Assessment Questions 10.6 Methods of Reducing Resistance to Change. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented). organizational problems may repeat. 10.5 Impact of Change on the Future Manager 10. Objectives: .1 Introduction Objectives 10. Nothing is permanent except change because change is permanently changing.MU0002-Unit-10-Managing Organization Development Unit-10-Managing Change in Organization Development Structure: 10.2 Nature of Change 10. and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other. Hence.9 Answers to SAQs and TQs 10. In this dynamic and fluid environment.1 Introduction Change in Organizations are increasingly realizing the fact that change is the price of the survival.4 Causes for Resistance to Change.8 Terminal Questions 10.7 Summary 10.
However. While managers as change agents want to bring changes in the organization.After studying this unit. others. some changes which are of minor type may be absorbed by the existing equilibrium. · State the methods of reducing resistance to change. if we look minutely. you will be able to: · Explain the meaning of organization change. Organizational change is a continuous process. . employees want to maintain a status quo. · Impact of change on future managers. 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. Thus. some parts of organization may be affected more. we find that the shape of the entire balloon has changed.whether physical. biological. and others. which are major ones. However. they have concluded that the whole organization tends to be affected by change in any part of it. indirectly.2 Nature of Change The term ‘change’ refers to an alteration in a system. When a finger (which represents external force) is forced against a point on the balloon (which represents the organization). The type of new equilibrium depends on the degree of change and its impact on the organization. Any change may effect the whole organization. It implies a new equilibrium between different components of the organization – technology. organizational change may have the following features: 1. the contour of the balloon visibly changes. or social. They have illustrated it by comparing an organization to an air-filled balloon. the change in organization does not occur purely on mechanical relationship. structural arrangement. less. Thus. and others. 2. · Discuss the nature of change · Explain resistance to change and the factors which resist change. some parts may be affected directly. it disturbs the old equilibrium necessitating the development of a new equilibrium. Newstrom and Davis have explained the impact of a change in any part of the organization on the total organization. When change occurs in any part of the organization. organizational change is the alteration of work environment in an organization. job design and people. may require special change efforts. it becomes indented at the point of contact. it has stretched slightly. 3. However. 10. Though this phenomenon will be taken later. Thus.
resistance to change is costly affair. it provides some benefits to the organization as its change agent.10. While on negative side. People tend to resist many types of changes because new habits or sacrifices are required. and on the other. One example of Bajaj Auto Limited is relevant here. Before we trace out the reasons for résistance to change. commented. like shifting of the manufacturing plants at new locations. We shall take new workers at the new place. there are two sides of resistance. many organizations have been forced to abandon change programmes because of resistance to such programmes. Madhur Bajaj. but when a change is major or unusual. 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. because it produces identical symptoms. In fact. In fact. more serious upsets may occur. Homeostasis implies self-correcting characteristics of organism to maintain equilibrium as a result of change. or they have been forced to adopt alternative strategies. resistance to change provides help in managing change in two ways: . let us discuss whether resistance is always bad as it is generally perceived to be. the organizational may not be able to introduce new phenomena in order to adapt environmental requirement. This leads to general proposition that people and their social systems will often resist change in organizations. adjustment is fairly routine. that is. When change is minor and within the scope of correcting programme.3 Resistance to Change In the management of change effectively. We wanted a new culture and new layout. Resistance to change forces management to find out this reality which helps in managing change more effectively. 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. In order to increase its manufacturing capacity of two-wheelers. In fact. If people resist to change. “The Pune plant is fully saturated.as cost and as benefit. Similarly.” Resistance as Benefit: On the one hand. and its basic survival may be jeopardized. Managing Director of Bajaj Auto. people act to establish a steady state of need fulfillment and to secure themselves from disturbance of that balance. so is the resistance to change. On this phenomenon. Thus. fear of change can be as significantly disrupting as change itself. Many companies have been forced to do so in the past. Resistance as Cost: Since all changes have some cost. the reality lies in between. social systems tend to resist change because of homeostasis. We saw resistance to change at the existing plant. the managers face the problem of resistance to change.
psychological and social. Factors in Resistance to Change People tend to evaluate the effect of change individually but they express it through group in collective form. 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. either real or emotional. and turn into technological unemployment. Skill Obsolescence: A change is generally meant for better methods of working which may involve new techniques. All these are well-established in the old system. etc. These feeling may be based either on reality or there may be emotional feeling towards the change. 3. technology. they simply resist such a change. bonus. Reduced Opportunities for Incentives: Employees are generally offered incentives linked to their output in the form of incentive schemes. 2. it attracted a lot of resistance because of this reason. It also highlights real inadequacies in the proposed change and suggests better ways for developing and introducing changes. When computer was introduced in the business sector in India. they will have lower opportunity to earn incentives and bonus as the new system requires additional skills.1. 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. Degree of force in resistance depends on how people feel about change. People may perceive that they will be adversely affected by the change in terms of their needs satisfaction in the following ways: 1. Economic Factors People feel attached to the organization for satisfying their needs and economic needsphysiological. job security etc. Psychological Factors . people may feel that in the new system. Whenever there is change. reduce job options. This feeling is created because people feel that those who can match the new requirements will be better off than those who cannot match. Therefore. 2. 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. may be seen in the context of three types of factors: economic. These feelings.. precede over other needs. etc.
To the extent the satisfaction of these needs is affected by a change. Ego Defensiveness: A change may affect the ego of the people affected by the change and in order to defend their ego. Desire to Maintain Existing Social Interaction: People desire to maintain existing social interaction since it is a satisfying one. The change initiated by the organization disturbs such equilibrium and people have to obtain another equilibrium which is a painful exercise. These are qualitative and. The lack of adequate information about the likely impact of change further complicates the problems. through their mutual compatible interactions. 5. Therefore. This lack of certainty creates anxiety and stress in the minds of people and they want to avoid it.Psychological factors are based on people’s emotions. may be logical from people’s point of view but may be illogical from the change agent’s point of view.e. lack of trust in change agent. 3. Therefore. Major psychological factors responsible for resistance are: ego defensiveness. When there is any change. which is always uncertain. 1. If people have low degree of confidence in the change agent. Some people have very low level of tolerance for change and ambiguity as compared to others. sentiments and attitudes towards change. Status Quo: People want status quo. . and fear of unknown. people may differ. they do not want any disturbance in their existing equilibrium of life and work pattern. 2. the person who initiates change. Low Tolerance for Change: In the context of maintaining status quo. Therefore. Lack of Trust in Change Agent: The effect of change is perceived in the context of change agent. Thus. people resist it. They form their own social groups at the work place for the satisfaction of their social needs. the change may be perceived as an instrument for exposing the weakness of the people. everyone tries to avoid it. Fear of Unknown: A change may be perceived as entering into unchartered area which is unknown. status quo. they show resistance to change efforts. that is. which people do not want. The major factors causing resistance to change are: desire to retain existing social interaction and feeling of outside interference. people resist change. 4. 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. particularly social needs. i. 1. The change will bring results in future. low tolerance for change. these people resist any new idea. A change in itself suggests that everything is not right at a particular level. they resist change. therefore. Social Factors People derive need satisfaction. their existing social interactions are likely to be changed.
2. Stability of Systems: The organization may design a system through which it may derive many benefits. e. a professor of strategic leadership who is considered to be a management Guru. a bureaucratic organization has certain fixed rules. Counting Past Successes: A major problem before the organizations which have past success stories is how to face challenges of the changing environment. the organization may not bring it easily because it is accustomed to a particular system. resource limitations. Many organizations are designed to be innovation-resisting. has commented as follows: “Nothing fails like success. Feeling of Outside Interference: A change brought about by the change agent is considered to be interference in the working of people. all these companies have been victims of corporate disease. Resource Limitations: No doubt. Caterpillar. For example. Sumantra Ghoshal. It is called ‘The Failure of Success’. The major reasons for organizational failure to change are: counting past successes. This is the reason why many old industrial houses are languishing far behind and their places are being taken away by newer organizations. prescribes rigid authority relationships.” This statement suggests that organizations tend to stabilize at a particular level and if the change efforts are not brought. Organizational Resistance to Change: Not only individuals and groups within an organization resist change. It a change is required in these aspects. Since these organizations have achieved success by following a particular set of management practices. 1. even the organization itself resists many changes because of certain reasons. resources and processes of the most successful companies have in the past ossified into clichés. 2. these organizations start falling. first two reasons are basic and others are by-products of the first two. and institutes reward and punishment system. All these work in some circumstances.g. Some of these reasons are basic while others are by-products of those. millstones and routines. values. For example. Zerox or nearer home-TI cycles. Strategies. it may not be possible for the organization to bring necessary change. Many powerful organizations of the past have failed to change and they have developed into routines. For example.. For example. The latter my feel that managers try to make workers an instrument for higher productivity but the outcome of this productivity will be retained by them. sunk cost. they become too rigid to change and they hide their failure to change in the guise of past successes. if new . Whether it is IBM. This phenomenon is heightened if the change agent belongs to another social class. nothing fails as spectacularly as spectacular success. an organization has to adapt to its environment but the adaptation has its own cost. and inter-organizational agreement. dogmas. stability of systems. 3. change initiated by managers affecting workers. The system is stabilized and any change may be perceived as a threat by the organization itself. If the organization is not fully equipped for meeting such demands. Digital Equipment Corporation.
and commensurate expenses on other items also. the organization may enter into agreement with labour union about not bringing any technological change. For example. centralized control. Sunk cost cannot be only in terms of various physical things. intensive planning. Analyzers act sometimes as defenders and sometimes as prospectors. and reactors. it will require resources to procure machine. 4. Therefore. it may enter into agreement with other organizations over certain aspects of working. broad environmental scanning. prospectors. what will happen to these assets? Naturally. the organization may take change programmes much more frequently. if any change is to be incorporated. Analyzers: Above two are the extreme cases of choice-making modes in between the analyzers and reactors. 1. Miles and Snow have classified them into four categories. 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. organization has to pay for his services though these may not be as useful. Thus.technology is adopted. Reactors: These organizations realize that their specific environment is changing but fail to relate themselves with the changing environment. innovative. those who wonder what happened. these can be used for specific period. This can be in the form of people also. In such a case. and has zeal for progress. 4. Sunk Cost: Most of the organizations have sunk cost involved in various assets. 5. It depends more on the style of top management. It is necessary too that other organizations also agree to the change proposal. the organization has to take into consideration the wishes of other organizations too. 2.defenders. analyzers. Now. In this interaction process. building and training for its personnel. Prospectors: These firms use broad planning approaches.” This is the true reflection of difference between change-initiating companies and changeresisting companies. They emphasize more on cost-effectiveness. forward-looking. 3. It an individual is not making commensurate contribution. Defenders: These are the firms which penetrate in a narrow market product domain and guard it. if the change is required. Let us see what someone has said long back: “There are three types of companies: those who make things happen. decentralized controls. Otherwise. it is not necessary that his services are done away with. Once the assets are acquired. Based on the aggressiveness which various companies show in changing themselves. If it is risk-taking. they have to behave in one of the above three ways. those who watch things happen. and reserve some resources unutilized for future use. and put less emphasis on environmental scanning. They go on searching new products/markets on regular basis. Inter-organizational Agreements: The organization interacts with its environment. . they cannot survive.
we all rely on habits. As human beings. the selection process systematically selects certain people in and certain people out. Habit Every day. a change is proposed and employees quickly respond by voicing complaints. we don’t need to consider the full range of options for the hundreds of decisions we have to make every day. taking a new set of streets to work. Training . adjusting to the new office layout. To cope with this complexity. or deferred. Let’s look at the sources of resistance. some may fear they’ll be unable to do so. or the like. many employees at these firms may fear that their jobs are in jeopardy. Resistance can be overt. finding a new parking place. developing a new lunchtime routine. They may. Organizational resistance Structural Inertia: Organizations have built-in mechanisms to produce stability. develop a negative attitude towards quality management or behave dysfunctionally if required to use statistical techniques. It is easiest for management to deal with resistance when it is overt and immediate. we’ve categorized them by individual and organizational sources. you find a single route and you use it regularly. Security: People who have a high need for security are likely to resist change because it threatens their feeling of safety. The same applies to employee. therefore. when you go to work or school. or programmed responses.4 Cause for Resistance to Change Resistance to change doesn’t necessarily surface in standardized ways. And people in general don’t like the unknown.10. Changes in job tasks or established work routines also can arouse economic fear if people are concerned they won’t be able to perform the new tasks or routines to their previous standards.000 people or Ford introduces new robotic equipment. threatening to go on strike. the introduction of a quality management program requires that production workers learn statistical process control techniques. For example. and so on. When we are confronted with change. So when your department is moved to a new office building across town. it means you’re likely to have to change many habits: waking up 10 minutes earlier. Fear of the Unknown: Change substitute ambiguity and uncertainty for the known. Economic Factors: Another source of individual resistance is concern that changes will lower one’s income. For instance. this tendency to respond in our accustomed ways becomes a source of resistance. When Boeing announces its laying off 10. For analytical purpose. do you continually use the same route and streets? Probably if you’re like most people. implicit. immediate. If for example. especially when pay is closely tied to productivity. Life is complex enough. engaging in a work showdown. we’re creatures of habit.
These teams are comprised of people from various areas within the company. You can’t change one without affecting the others. Limited Focus of Change: Organization is made up of interdependent subsystems. For example. Group Inertia: Even if individuals want to change their behavior. Will the change. rules and procedures for employees to follow. may be willing to accept changes in his job suggested by management. 10. For example. development of pay plans. and benefits administration – has been resisted by many human resource departments. the change in technology is not likely to be accepted. Threat to Established Resource Allocations: the groups in the organization that control sizable resources often see change as a threat. People from one functional department are placed on terms with people from other functional areas. An individual union member. he’s likely to resist. Formalization provides job description. . if management changes the technological processes without simultaneously modifying the organization’s structure to match. Thereat to Established Power Relationships: Any redistribution of decision-making authority can threaten long-established power relationship within the organization.5 Impact of Change on Future Manager Organizations are changing nearly daily. accountants work with marketers. One area of organizations that continues its metamorphosis is the design itself. group norms may act as a constraint. They tend to be content with the way things are. Changing Skill Sets More organizations are utilizing cross functional teams. But if union norms dictate resisting any unilateral change made by management. Why? Because this outsourcing is a threat to the specialized skills held by people in HR departments. human resource people with engineers and finance individuals with operations employees.and other socialization techniques reinforce specific role requirements and skills. That is. for instance. So limited changes in subsystems tend to get nullified by the larger system. 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. The only constant in organizational life today appears to be the presence of continuous change. for instance. the way in which companies are configured today is changing. 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. 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.
even the impact of change may be dysfunctional if change is imposed upon the people by the use of formal authority. this is not a one-time action. Efforts at Individual Level A change is likely to affect some people in some way. For example. it can make effectively by managing resistance effectively. through group dynamics. Therefore. It implies explanation and . In addition. strategic directions for the company must be identified in light of these changes. Decision making is becoming more and more comfortable for those throughout the organization as the need to make decisions is distributed more evenly across all organizational levels.” The newer organizational structures use term problem solving. Stephen Robbins suggests that “…… managers in virtual structures spend most of their time coordinating and controlling external relations. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. However. that is. typically by way of computer network links. This requires that managers think differently and teach employees to think differently. Involvement: Involvement is a process through which those who are affected by the change are brought to understand the change. Locavini observes that “the secret of real success is effective management of the emotional vulnerability that accompanies organizational change. For this purpose. When the resistance comes from the people at individual levels. rather should be looked upon as a dialogue which continues over a period of time. As organizations must be better equipped to respond to change in their external environment. Unless this problem is overcome properly. the effect of the change may not be as functional as envisaged by the management.” Problem of overcoming resistance to change can be handled at two levels. both at the formal and informal levels.The ultimate goal is to improve organizational performance by cutting production time or time to market. managers must be more skilled at reading the environment and grasping the big picture. the role of formal authority in implementing a change may not be effective all the times. More fluid structures require that managers improve their strategic orientation.6 Methods of Reducing Resistance to Change One of the basic problems in managing change is to overcome people’s resistance to change successfully. Problem solving now involves the people who are experts in the issue – not necessarily those in high positions in the organization. In many cases. the problems can be solved at the same level. They need to be adept at reading the trends in the environment and then determining what they mean specifically for their own organization. It may affect only a few while others may not be affected. the following efforts can be taken: 1. at the level of individual and at the level of group. 10.
the leader tries to overcome this resistance by leadership process. is an important trust-building task. as discussed earlier. For using group as a means of overcoming resistance to change. Obtaining Commitment: Commitment is an agreement to take an active part in the actual mechanics of the change. The fundamental idea in this process is to encourage the person to say something about any aspect of the change. The decision to commit oneself is a dynamic process. Based on these characteristics of group as a means of change. Getting opinions out in the open. understanding of change increases and personal involvement in the change increases. They must be taught new skills. its basic nature. it is desirable at the group level to get better acceptability of change. either the subordinates do not resist or if they resist. must be understood so that its effective use can be made. Such educational process can be aided by training classes. It grows slowly along with relationship. he expresses it through a group. As this process goes. 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. Commitment to take part in the change programme can be obtained in private from each individual. meetings. 3. It includes finding out from the members how they interpret the proposed changes and what they think about them. This helps in creating receptive environment in the organization. the manager can form strategies for overcoming resistance in the following manner: . to become effective. Though each person interprets the change individually often. However. Usually. People always have some ideas and opinions about what is going on in the world and more specially if touches them personally. so that they are looked at and evaluated. Efforts at Group Level Although agreement to a change can be obtained individually. Training and Psychological Counseling: The management can change the basic values of the people by training and psychological counseling. the level of resistance to change tends to decrease. but a transformational leader can use personal reasons for change without arousing resistance. its process and working. Group dynamics offers some basic help in this regard. most of the times. People should be educated to become familiar with change. helped to change attitudes. more than one person is involved in the change.then discussion of the proposed changes. education must be a part of the manager’s everyday activity on the job. 4. instead of solving the problem at the individual level. Thus. Thus. and conferences. and indoctrinated in new relationships. 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. 2. A manager as weak leader presents change on the basis of the impersonal requirements of the situation. An effective leader tries to time a change to fit the psychological needs of his followers. However. it is more meaningful if it is done through group. sometimes.
This is more important in the case of workers who themselves treat a separate group and do not identify with the management. one can communicate with more people per unit of time. The organization must regard the participation as meaningful and share the results of the change with its members.1. __________ are based on people’s emotions. many things about change can be made clear. 2. (ii) In group. For this purpose. 2. Through the group contact. Group Dynamics Training for Change: Group dynamics also helps in providing various training programmes for accepting and implementing change. Group Contact: Any effect to change is likely to succeed if the group accepts that change. job design and people. thereby the people can build up the climate based on mutual trust and understanding which are essential for bringing organizational changes successfully. Those people who are directly affected by the change should be given opportunity to participate in that change before the final decisions are reached. It 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. benefits of change. _________ is the alteration of work environment in an organization. Research studies also support this aspect. Even if only some of the members are affected by the change.such aspects as the reasons for change. The group contact offers some specific advantages: (i) Through groups. mere participation may not help. and how members contribute. Self Assessment Questions 1. sentiments and attitudes towards change. there may be some person who may communicate to the same group. It purports how the results are. The laboratory method provides a setting where group processes can be studied intensively. structural arrangement. The same is true of problem-solving. They must be made a party to the change rather than an agent for resistance to change. (iii) Group can get at the basic problem very rapidly as compared to a single individual. 3. 3. It implies a new equilibrium between different components of the organization – technology. and sensitivity or T-group training. . taking whole of the group into confidence helps in maintaining a cooperative attitude. Free flow of information helps people to understand the real picture of the change and many misunderstandings may be avoided. _________ helps to give people involved in the organizational change and inculcate a feeling of importance. Participation: Participation helps to give people involved in the organizational change and inculcate a feeling of importance. However. It would be prudent for management to take labour representatives into confidence before implementing any change. Such training techniques include role playing. psychodrama. Such training techniques provide understanding of behaviour. the group itself should be the point of contact.
Organizational change is the alteration of work environment in an organization. It implies a new equilibrium between different components of the organization. It is easiest for management to deal with resistance when it is overt and immediate. Changes may be influenced by external and internal factors. 10. that is. Discuss the methods of reducing resistance to change.4 3. Refer section 10. immediate. Organizational change 2. engaging in a work showdown.10. psychological factors. threatening to go on strike. through group dynamics. For instance. Why do organizations resist change? 3.6. Psychological factors 3. at the level of individual and at the level of group. both at the formal and informal levels. a change is proposed and employees quickly respond by voicing complaints. group resistance and vested interests. Problem of overcoming resistance to change can be handled at two levels.7 Summary Change is inevitable. Reference: . or deferred. or the like. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. Economic factors. People tend to resist many types of changes because new habits or sacrifices are required. Resistance can be overt. social factors. Explain the nature of change? 2. implicit.8 Terminal Questions 1. 10. Refer section 10.9 Answers to SAQs and TQS SAQs: 1. Refer section 10.2 2. Participation Answers to TQs: 1.
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