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Unit-01-Introduction to Management Structure: 1.1 Introduction Objectives 1.2 Definitions of Management 1.3 Characteristics of Management 1.4 Scope and Levels of Management 1.5 Importance of Management 1.6 Role of Management 1.7 Administration and Management Self Assessment Questions 1.8 Summary 1.9 Terminal Questions 1.10 Answers to SAQs and TQs 1.1 Introduction Management is a global need. It is essential to every individual, a family, educational institution, hospital, religious organizations, team of players, a government, military systems, cultural body, urban centers and business enterprises. No individual can satisfy all his needs by himself. Men should join together and accomplish goals through co-operation. Whenever, there is an organized group of people working towards a common goal, some type of management is needed. A business enterprise must be directed and controlled by a group of people to achieve its goals. The resources of money, manpower, material and technology will be waste unless they are out to work in a co-ordinated manner. It is the ‘management’ which uses the available resources in such a manner that a business enterprise is able to earn ‘surplus’ to meet the needs of growth and expansion. Management is required to plan, organize, co-
ordinate and control the affairs of a business concern. It brings together all resources and motivates people to achieve the objectives of a business enterprise. Objectives: After studying this unit, you will be able to: · Define management. · Explain the characteristics of management. · Differentiate between management and administration. · State the principles of management. · Explain the roles of managers. · Explain managerial skills. 1.2 Definitions of Management Management may be defined in many different ways. Many eminent authors on the subject have defined the term “management”. Some of these definitions are reproduced below: According to Lawerence A. Appley – “Management is the development of people and not the direction of things.” In the words of George R. Terry – “Management is a distinct process consisting of planning, organizing, actuating and controlling performed to determine and accomplish the objectives by the use of people and resources.” According to James L. Lundy – “Management is principally the task of planning, co-ordinating, motivating and controlling the efforts of others towards a specific objective.” In the words of Henry Fayol – “To manage is to forecast and to plan, to organize, to command, to co-ordinate and to control.” According to Peter F. Drucker – “Management is a multi-purpose organ that manages a business and managers and manages worker and work”. In the words of Koontz and O’Donnel – “Management is defined as the creation and maintenance of an internal environment in an enterprise where individuals working together in groups can perform efficiently and effectively towards the attainment of group goals”.
According to Newman, Summer and Warren – “The job of management is to make co-operative endeavor to function properly. A Manager is one who gets things done by working with people and other resources.” From the definitions quoted above, it is clear that “management” is a technique of extracting work from others in an integrated and co-ordinated manner for realizing the specific objectives through productive use of material resources. Mobilizing the physical, human and financial resources and planning their utilization for business operations in such a manner as to reach the defined goals can be referred to as “management”. If the views of the various authorities are combined, management could be defined as a “distinct ongoing process of allocating inputs of an organization (human and economic resources) by typical managerial functions (planning, organizing, directing and controlling) for the purpose of achieving stated objectives, namelyoutput of goods and services desired by its customers (environment). In the process, work is performed with and through personnel of the organization in an ever-changing business environment.” From the above, it is clear that management refers to the process of getting activities completed efficiently and effectively with and through other people. The process represents the functions or primary activities engaged in by managers. These functions are typically labeled planning, organizing, leading, and controlling. Efficiency is a vital part of management. It refers to the relationship between inputs and outputs. If you can get more output from the given inputs, you have increased efficiency. Similarly, if you can get the same output from less input, you also have increased efficiency. Since managers deal with input resources that are scarce-mainly people, money and equipment-they are concerned with the efficient use of these resources. Management, therefore, is concerned with minimizing resource costs. Efficiency is often referred to as “doing things right”. However, it is not enough simply to be efficient. Management is also concerned with getting activities completed; i.e. it seeks effectiveness. When managers achieve their organization’s goals, we say they are effective. Effectiveness can be described as “doing the right things”. So efficiency is concerned with means and effectiveness with ends. Efficiency and effectiveness are interrelated. For instance, it is easier to be effective if one ignores efficiency. Timex could produce more accurate and attractive watches if it disregarded labour and material input costs. Some federal government agencies have been criticized regularly on the grounds that they are reasonably effective but extremely inefficient; that is, they get their jobs done but at a very high cost. Management is concerned, then, not only with getting activities completed (effectiveness), but also with doing so as efficiently as possible. Can organization be efficient and yet not effective? Yes, by doing the wrong things well. Many colleges have become highly efficient in processing students. By using computer-assisted learning, large lecture classes, and heavy reliance on part-time faculty, administrators have significantly cut the cost of educating each student. Yet students, alumni, and accrediting agencies have criticized some of these colleges for failing to educate their students properly. Of
feeling of management is result-oriented. the process of management involves decision-making and putting of decisions into practice. Distinct Process: Management is a distinct process consisting of such functions as planning. It co-ordinates the efforts of workers to achieve the goals of the organization. They must motivate the subordinates for the accomplishment of the tasks assigned to them. Thus. In essence. high efficiency is associated more typically with high effectiveness. . It is the most critical input in the success of any organized group activity. These factors do not by themselves ensure production. buoyant spirit and adequate work output. directing and controlling. Intangible Force: Management has been called an unseen force.3 Characteristics of Management Management is a distinct activity having the following salient features or characteristics: 1. capital and materials. labour. These functions are so interwoven that it is not possible to lay down exactly the sequence of various functions or their relative significance. 4. Integrative Force: The essence of management is integration of human and other resources to achieve the desired objectives. Goal-oriented: Management is a purposeful activity.course. although they can’t observe it during operation. staffing. 3. And poor management is most often due to both inefficiency and ineffectiveness or to effectiveness achieved through inefficiency. organizing. informed employees. One may not see with the naked eyes the functioning of management but its results are apparently known. Results through Others: The managers cannot do everything themselves. labour and capital. It is the force which assembles and integrates other resources. management is an essential ingredient of an organization. People often remark of the effectiveness (or ineffectiveness) of management on the basis of the end results. All these resources are made available to those who manage. they require the catalyst of management to produce goods and services required by the society. Economic Resource: Management is one of the factors of production together with land. 2. 5. namely. 6. Managers apply knowledge. Thus. Managers also seek to harmonize the individuals’ goals with the organizational goals for the smooth working of the organization. experience and management principles for getting the results from the workers by the use of non-human resources. It is imperative that the organizational goals must be well-defined and properly understood by the mangers at various levels. They must have the necessary ability and skills to get work accomplished through the efforts of others. 1. The success of management is measured by the extent to which the organizational goals are achieved. Its presence is evidenced by the result of its efforts-orderliness.
the degree of authority gets gradually reduced. For instance. Generally. It is bound together by a web of relationships between superiors and subordinates. government and hospital. Similarly. Multi-disciplinary Subject: Management has grown as a field of study (i. principles and techniques requires specialized knowledge and skills on the part of the manager. · Management as an economic resource Management is one of the factors of production along with land. money and machines into a productive. 1. manpower. The principles and techniques of management are equally applicable in the fields of business. Sociology and Psychology. In other words. (ii) a system of authority. useful. productivity orientation drew its inspiration from Industrial Engineering and human relations orientation from Psychology. and (iii) a class or elite. discipline) taking the help of so many other disciplines such as Engineering. management is the rule-making and rule-enforcing body.4 Scope of Management The scope of management is very wide. as we move down in the managerial hierarchy. Basically. the effective use of the five M’s of management (money. A Science and an Art: Management has an organized body of knowledge consisting of welldefined concepts. 9. Sociology and Operations Research have also contributed to the development of management science. The application of these concepts. on-going concern. Anthropology.7. materials. Authority enables the managers to perform their functions effectively. Managers at different levels possess varying degrees of authority. labour and capital. a hierarchy of command and control. how effectively and economically the five M’s are combined together to produce desired results. 10. In modern organizations. people .e. management may be understood as (i) an economic resource. 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. materials. Henri Fayol suggested that principles of management would apply more or less in every situation. machinery and methods or ways of doing things) depends to a great extent on the quality of management. According to Newman. military. Since the skills acquired by a manager are his personal possession. 8. principles and techniques which have wide applications. Universal Application: Management is universal in character. that is. According to Herbision and Myers. So it is treated as a science. System of Authority: Management as a team of managers represents a system of authority. it refers to three distinct ideas. Much of the management literature is the result of association of these disciplines. management is required to covert the disorganized resources of men. education. management is viewed as an art. · Management as a system of authority According to Herbison and Myers.
the lower level of management). or. finance manager. Top management determines objectives and provides direction to enterprise activities.. his job is to see that the decisions are implemented.e. and the range of production. For instance. or the General Manager or Executive Committee having key officers. All the managers form the chief executive to the first line supervisors are collectively addressed as ‘Management’ which refers to the group. . viz. and directing the operations to attain the objectives of the enterprise. Instructions and decisions downward and carry the problem and suggestions upward. Managing Director. planning and setting up of standards.are bound by authority relationships. but as head of wages and salary department.) interprets and explains the policies framed by the top management. ranks. · Management as a class or elite Sociologists view management as a distinct class in society having its own value system. (i) administrative management (i. the term management refers to the group of individuals occupying managerial positions. Managers working at top levels enjoy more authority than people working at lower levels. wage and salary director of a company may assist in fixing wages and salary structure as a member of the Board of Directors. But in actual practice. Considering the hierarchy of authority and responsibility.. or the Chief Executive. As a separate group. Board of Directors. The managerial class has become very important in modern organizations owing to its contribution to business success. one can identify three levels of management namely: i) Top management of a company consists of owners/shareholders. the upper level of management) and (ii) operating management (i. it is difficult of draw any clear-cut demarcation between thinking function and doing function as the basic/fundamental managerial functions are performed by all managers irrespective of their levels. Lower management (first line supervisors) is concerned with routine. Operative management is concerned with the “doing” function such as implementation of policies. They transmit orders.e. Middle management (departmental heads like work manage. The real significance of levels is that they explain authority relationships in an organization. day-to-day matters. personnel manager etc. Levels of management refer to a line of demarcation between various managerial positions in an enterprise. technical facilities. Administrative management is concerned with “thinking” functions such as laying down policy. The levels of management depend upon its size. Levels of Management An enterprise may have different levels of management. its Chairman. We generally come across two broad levels of management.
Middle management: The job of middle management is to implement the policies and plans framed by the top management. materials. . b) To interpret the policies chalked out by top management. Production Manager.ii) Middle management of a company consists of heads of functional departments namely. Supervisors. iii) Lower level or operative management of a company consists of Superintendents. f) To provide overall leadership to the enterprise. Foremen. Without them the top management’s plans and ambitious expectations will not be fruitfully realized. It is also described as the policy-making group responsible for the overall direction and success of all company activities. etc. policies and plans for the enterprise. d) To assemble the resources of money. It serves as an essential link between the top management and the lower level or operative management.. b) To make policies and frame plans to attain the objectives laid. e) To assign activities. It devotes more time on planning and co-ordinating functions. machines and methods to put the plans into action. 1. d) To recruit and select suitable operative and supervisory staff. The important functions of top management include: a) To establish the objectives or goals of the enterprise. etc. e) To exercise effective control of the operations. They provide the guidance and the structure for a purposeful enterprise. men. and Divisional Sectional Officers working under these Functional Heads. Financial Controller. c) To prepare the organizational set up in their own departments for fulfilling the objectives implied in various business policies. It is accountable to the owners of the business of the overall management. Top management: Top management is the ultimate source of authority and it lays down goals. c) To set up an organizational framework to conduct the operations as per plans. 2. Purchase Manager. They devote more time on the organization and motivation functions of management. They are responsible to the top management for the functioning of their department. duties and responsibilities for timely implementation of the plans. Marketing Manager. The following are the main functions of middle management: a) To establish the objective or goals of the enterprise.
sales officers. g) To motivate personnel to attain higher productivity and to reward them properly. They interpret and divide the plans of the management into short-range operating plans. (ii) Effective leadership and motivation: In the absence of management. They have to get the work done through the workers. an organization is merely a collection of men. k) To make suitable recommendations to the top management for the better execution of plans and policies. In its absence. evaluate their performance and report to the middle level management. Management makes group effort more effective. Their authority and responsibility is limited.5 Importance of Management According to Drucker. machines. 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.f) To compile all the instructions and issue them to supervisors under their control. They are also involved in the process of decisions-making. the working of an enterprise will become random and haphazard in nature. It consists of foreman. A right climate is created for workers to put in their best and show superior performance. supervisors. money and material. They pass on the instructions of the middle management to workers. Without management. They are concerned with direction and control functions of management. the resources of production remain resources and never become production. They allot various jobs to the workers. (i) Optimum use of resources: Management ensures optimum utilization of resources by attempting to avoid wastage of all kinds. 3. It is the activating force that gets things done through people. and actual operations are the responsibility of this level of management. They devote more time in the supervision of the workers. It helps in putting the resources to the best advantage within the limitations set by the organization and its environment. i) To collect reports and information on performance in their departments. management is the dynamic lift-giving element in every organization. Lower or operative management: It is placed at the bottom of the hierarchy of management. It enables employees to move cooperatively and achieve goals in a coordinated manner. j) To report to top management. accounts officers and so on. Management creates teamwork and . h) To co-operate with the other departments for ensuring a smooth functioning of the entire organization. 1. They are in direct touch with the rank and file or workers. The importance of management can be understood from the following points.
and specialized knowledge. An enterprise has to take note of these changes and adapt itself quickly. 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. ii) Formalized methods of acquiring training and experience. (iii) Establishers sound industrial relations: Management minimizes industrial disputes and contributes to sound industrial relations in an undertaking. In the final analysis. hire competent people and provide necessary guidance. often threaten the survival of a firm. According to McFarland. With a view to realize the predetermined goals-managers plan carefully. Successful managers are the ones who anticipate and adjust to changing circumstances rather than being passively swept along or caught unprepared. Organize the resources properly. They initiate prompt actions whenever workers express dissatisfaction over organizational rules. counseling and effective leadership. Industrial peace is an essential requirement for increasing productivity. Management is goal-oriented. Thus unnecessary deviations. . government policy. etc. skills. (b) Ensuring the survival of the firm in the face of continued changes. (iv) Achievement of goals: Management plays an important role in the achievement of objectives of an organization. forecasting combined with efficient use of resources) and taking appropriate steps. They try to put everything on the right tract. To this end. Overlapping efforts and waste motions are avoided. methods.. all these help in realizing goals with maximum efficiency. competition.motivates employees to work harder and better by providing necessary guidance. (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. Managers help an organization by anticipating these changes (carefull planning. Management as a profession By a professional manager. procedures and reward systems. manager tries to strike a happy balance between the demands of employees and organizational requirements. 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. (v) Change and growth: Changes in technology. a profession possesses the following characteristics: i) A body of principles. Objective can be achieved only when the human and non-human resources are combined in a proper way. techniques. (vi) Improves standard of living : Management improves the standard of living of people by (a) using scarce resources efficiently and turning out profits.
the Indian Institute of Management. in contrast to the predominant views at the time that managers were reflective thinkers who carefully and systematically processed information before making decisions. Training facilities are provided in most companies by their training divisions. In fact. and it is distinct. For instance. As a social science. Furthermore. What he discovered challenged several long-held notions about the manager’s job. Management partially fulfils the third characteristic of profession.A. A number of organizations such as the Administrative Staff College of India. It may be concluded from the above discussion that management is a science. There is no ethical code of conduct for managers as for doctors and lawyers. the American Management Association in U. and the university departments of management offer a variety of short-term management training programmes. however. and short-duration activities.S. Management does not fulfill the last two requirements of a profession. However. 1. It has also developed a vast number of tools and techniques. However. Henry Mintzberg did a careful study of five chief executives at work. managers in general. unpatterned. Indeed such mobile managers are regarded as more progressive and modern than others. try to develop a code of conduct for their own managers but there is no general and uniform code of conduct for all managers. the All India Management Association. sabotaging trade unions. manipulating prices and markets are by no means uncommon management practices. Mintberz found that his managers engaged in a large number of varied. an art as well as a profession. Some individual business organizations. identifiable discipline. Management is a profession to the extent it fulfils the above conditions. There are a number of representative organizations of management practitioners almost in all countries such as the All India Management Association in India. a management degree is not a pre-requisite to become a manager. and it is not as fully a profession as medicine and law. and v) The charging of fees based on the nature of services.. little regard is paid to the elevation of service over the desire for monetary compensation is evident by switching of jobs by managers. It is a profession in the sense that there is a systematized body of management. etc. Management is also a profession in the sense that formalized methods of training is available to those who desire to be managers. But unlike medicine or law. bribing public officials to gain favours.6 Role of Management In the late 1960s. do not seem to adhere to the principle of “service above self”. There was little time for reflective thinking because the managers encountered . none of them has the professionalizing of the management as its goal.iv) The formation of ethical codes for the guidance of conduct. management is not as exact as natural sciences. Management Development Institute. We have a number of institutes of management and university departments of management which provide formal education in this field.
he or she has an outside liaison relationship. When they represent the organisation to outsiders. Mintzberg provided a categorization scheme for defining what managers do based on actual managers on the job. Half of these managers’ activities lasted less than nine minutes each. The third role within the interpersonal grouping is the liaison role. manages also perform a spokesperson role. The sales manager who obtains information from the human resources manager in his or her same company has an internal liaison relationship.constant interruptions. duties of a legal or social nature. These sources are individuals or groups outside the manager’s unit. and decision-making. training. Mintzberg called this the monitor role. they do so by reading magazines and talking with others to learn of changes in the public’s tastes. 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. fulfill informational roles-receiving and collecting information from organizations and institutions outside their own. Managers also act as a conduit to transmit information to organizational members. and associated duties. When that sales manager confers with other sales executives through a marketing trade association. Table 1. All managers have a role as a leader. and may be inside or outside the organization.1: Mintzberg’s Managerial Roles Role Interpersonal Figurehead Description Identifiable Activities Leader Symbolic head. and the like. what competitors may be planning. activities that involve responsible for staffing. the transfer of information. Mintzberg described this activity as contacting external sources who provide the manager with information. These ten roles can be grouped as those primarily concerned with interpersonal relationships. The term ‘management roles’ refers to specific categories of managerial behaviour. to some degree. Informational Roles: All managers. But in addition to these insights. Responsible for the motivation Performing virtually all and activation of subordinates. and disciplining employees. This is the disseminator role. subordinates. obliged to Greeting visitors. training. signing perform a number of routine legal documents. Typically. This role includes hiring. . motivating. Mintzberg concluded that managers perform ten different but highly interrelated roles. he or she is acting in a figurehead role. Interpersonal Roles: All managers are required to perform duties that are ceremonial and symbolic in nature – interpersonal roles.
policies. actions. making phone subordinates to members of calls to relay information. Searches organization and its Organizing strategy and environment for opportunities review sessions to and initiates “improvement develop new programs. requesting of organizational resources of authorization. activities that involve outsiders. outsiders on organization’s giving information of the plans. serves as expert on organization’s industry. network of outside contacts doing external board and informers who provide work. supervises design of certain projects as well. Seeks and receives wide variety Reading periodicals and of special information (much of reports. unexpected involve disturbances and disturbances crises Responsible for the allocation Scheduling. results. the organization – some information is factual. performing other favors and information. the making any activity that involves or approval of all significant budgeting and the Informational Monitor Disseminator Spokesperson Decisional Entrepreneur Disturbance handler Resource allocator .. etc. some involves interpretation and integration of diverse value positions of organizational influencers. performing all kinds – in effect. projects” to bring about change. maintaining it current) to develop thorough personal contacts.Liaison Maintains self-developed Acknowledging mail. understanding of organization and environment. Transmits information to Holding board meetings. Responsible for corrective Organizing strategy and action when organization faces review sessions that important. media. Transmits information received Holding informational from outsides or from other meetings. emerges as nerve center of internal and external information about the organization.
Mintzberg identified four decisional roles which revolve around the making of choices. The evidence generally supports the idea that managers – regardless of the type of organization or level in the organization-perform similar roles. managers are responsible for allocating human. physical and monetary resources. are heavily involved in technical aspects of the organization’s operations. figurehead. He also found that the relative importance of these skills varied according to the manager’s level within the organization. finance. managers perform as negotiators when they discuss and bargain with other groups to gain advantages for their own units. The Nature of Managerial Work (New York: Harper & Row. Managers need certain skills to perform the duties and activities associated with being a manager. negotiations. As disturbance handlers. as well as many middle managers. managers take corrective action in response to previously unforeseen problems. However. negotiator. the roles of disseminator. Managerial Skills As you can see from the preceding discussion. managers initiate and oversee new projects that will improve their organization’s performance. Decisional Roles: Finally. 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. human. Responsible for representing Participating in union the organization at major contract negotiations. Negotiator programming of subordinates work. During the early 1970. Specifically. liaison. research by Robert L. the emphasis that managers give to the various roles seems to change with hierarchical level. and conceptual. or manufacturing. As entrepreneurs. Katz found that managers need three essential skills or competencies: technical. and spokesperson are more important at the higher levels of the organization than at the lower ones. pp 93-94 Copyright Ó 1973 by Hency Mintzberg. As resource allocators. Technical Skills: First-line managers. 1973). Last. Source: Henry Mintzberg. a manager’s job is varied and complex. Conversely. Technical skills include knowledge of and proficiency in a certain specialized field.organizational decisions. the leader role is more important for lowerlevel managers than it is for either middle-or-top-level managers. Reprinted by permission of Harper & Row. Publishers. an accounts payable manager must be proficient in accounting rules and standardized . Inc. For example. such as engineering. computers.
Although technical skills become less important as manager moves into higher levels of management. ii) Management is a generic term and includes administration. Since managers deal directly with people. Managers with good human skills can get the best out of their people. Administration is a higher level function: . Some writers do not see any difference between the two terms. Floerence and Tead. Those who held management and administration distinct include Oliver Sheldon. motivate. this skill is crucial. They know how to communicate. while others maintain that administration and management are two different functions. Conceptual Skills: Managers also must have the ability to think and to conceptualize about abstract situations. and all managers are involved in making decisions. even top managers need some proficiency in the organization’s speciality. Spriegal and Lansburg. In fact. 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. But some English authors like Brech are of the opinion that management is a wider term including administration. lead. and inspire enthusiasm and trust. 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.forms so that she can resolve problems and answer questions that her accounts payable clerks might encounter. Human Skills: The ability to work well with other people both individually and in a group is a human skill. 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. These abilities are essential to effective decision-making. administration is a higher level function. 1. it remains just as important at the top levels of management as it is at the lower levels. etc. iii) There is no distinction between the terms ‘management’ and ‘administration’ and they are used interchangeably. According to them. Thus.7 Administration and Management The use of two terms ‘management’ and ‘administration’ has been a controversial issue in the management literature.
e. 4. administration involves broad policy-making and management involves the execution of policies laid down by the administration. Administration is the phase of business enterprise that concerns itself with the overall determination of institutional objectives and the policies necessary to be followed in achieving those objectives. Spriegel and Walter. plans and policies through and with others. 8. Meaning Administration Management Administration is concerned Management means with the formulation of getting the work done objectives. making strategic plans to deal plans and policies of the effectively with the organisation. management as an executive function which is primarily concerned with carrying out of the broad policies laid down by the administration. Managers are Administrators are basically concerned mainly with concerned with planning and organisation and direction control. Direction of It is concerned with leading It is concerned with Human Resources and motivation of middle leading and motivation of level executives. Status Administration refers to Management is relevant higher levels of management. 5. Decision. 2.Administration refers to policy-making. administrative decisions. 7. It is a execution of decisions. whereas management refers to execution of policies laid down by administration. Usage of Term The term ‘administration’ is The term ‘management’ is often associated with widely used in business . environmental forces. objectives. policies.. Table 1. This view is held by Tead. is a doing function. Environment Administration has direct Management is mainly interaction with external concerned with internal environment of business and forces. of the organisation. Nature Administration relates to the Management relates to decision-making. Scope It is concerned with It is concerned with the determination of major implementation of objectives and policies. of human resources. 6. at lower levels of management. i. operative workforce for the execution of plans.2: Distinction between Administration and Management: Basic 1. It thinking function. Administration is a determinative function. 3. Thus. on the other hand.Administration determines Management decides who Making what is to be done and when shall implement the it is to be done.
3. 2. teamwork .8 Summary Management is concerned with getting things done through other people. It is the management which transforms physical resources of an organization into productive resources. Self Assessment Questions in the 1. Explain its characteristics. Discuss the importance of management. ___________. manpower 3. There are three levels of management-top. 1. Bring out the difference between Administration and Management. Managers perform different roles to discharge their responsibilities. Management creates ________ and motivates employees to work harder and better by providing necessary guidance. co-ordinating. public organisations sector and non-business private sector. Management is largely found at the middle and lower levels and administration is found at the higher levels. Still management is not completely a profession. Management 2. _________. machinery and methods or ways of doing things) depends to a great extent on the quality of management. 1.10 Answers to SAQs and TQs SAQs: 1.government offices. middle and lower.9 Terminal Questions 1. 2. Five M’s of management (________. organisations. motivating and controlling the efforts of others towards a specific objective. 1. Lower level managers require and use a greater degree of technical skill and managers at higher levels use a greater degree of conceptual skill. materials. Define management. Money. Human skills are important at all managerial levels. counseling and effective leadership. 3. __________is principally the task of planning.
9 Terminal Questions 2.6 Directing 2. Refer section 1.5 3.5 Staffing 2.1 Introduction Objectives 2.8 Summary 2.4 Organizing 2.3 Planning 2.7 Motivating Self Assessment Questions 2. Refer section 1.1.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .Answers to TQs: 1.3 2.2. Refer section 1.2 Process of Management 2. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.10 Answers to SAQs and TQs .
Staffing. Organizing 3. 2. Directing. Coordinating 5.2. you will be able to: · Define Management process. Policy Formulation We have noted earlier that all organizations have well-defined goals and objectives. 1949): 1. Motivating. Objectives: After this studying this unit. Even . Organizing. Planning 2. as the action of measuring a quantity on a regular basis and of adjusting some initial plan. Commanding 4.2 Management Process Peter Drucker said: “Management is doing things right. the two are not quite the same. Through leadership and management often overlap. One can also think of management functionally. There is a degree of overlap between the two. management functions have been regrouped into four categories. It is difficult to say where objectives end and policies begin. in recent time. Management is about accomplishing a goal efficiently. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent. Management functions are as follows (Fayol. Controlling However. · Explain different functions of management Process. leadership is about setting the desirable goals. · Explain Planning. leadership is doing the right things“. You might well ask what the need for a policy is when objectives are already defined.1 Introduction Follett (1933) defined management as "the art of getting things done through people”.
while a policy. it would be correct to assume that an objective is what you want to accomplish. policies are the means to achieve those ends. what distinguishers policies form objectives is that you first decide the objective. fuel and machine efficiency. or where you want go to. 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. planning begins with clearly defining the mission of the organization. establishing strategies for achieving these goals. In the football field. All levels of management engage in planning in their own way for achieving their preset goals. kicking the ball with the left foot or right foot is a reflex action. 2. Objectives are the ends. The mission statement is broad. and allocating resources. Decision – Making Taking decisions is a process. Every organization needs to plan for change in order to reach its set goal. A mission statement should be short – and should be easily understood and every employee should ideally be able to narrate it from memory. general strategies. Therefore. Planning in order to be useful must be linked to the strategic intent of an organization. An explicit mission guides employees to work independently and yet collectively toward the realization of the organization’s potential. studies on passenger comfort. overall goals. thus. it is not a decision in which any process is involved. planning is often referred to as strategic in nature and also termed as strategic planning. a process in which one chooses a course which one thinks is the best. It provides the direction for the other functions of management and for effective teamwork. However.so. Effective planning enables an organization adapt to change by identifying opportunities and avoiding problems. and then set out the method for achieving it. Planning also enhances the decisionmaking process. should precede a good deal of research involving market surveys. cost structure and so on. Strategic Planning: Top level managers engage chiefly in strategic planning or long range planning Strategic planning is the process of developing and analyzing the organization’s mission. The tasks of the strategic planning process include the following steps: Define the mission: A mission is the purpose of the organization. The mission statement may be accompanied by an overarching . the decision to change the design of a product. say a passenger car. driving comfort. and developing plans to integrate and coordinate activities. Thus.3 Planning It involves the process of defining goals. summarizing what the organization does.
customers (internal and external). journals and reports (scientific. Threats) analysis is vital for the creation of any strategic plan. Conduct a situational or SWOT analysis A situation or SWOT (Strengths. Do we have a superior reputation? For assessing the weaknesses of the organization the following questions are important: 1. international). Organizations need to examine their business situation in order to map out the opportunities and threats present in their environments. professional or trade associations (conventions and exhibitions). How skilled is our workforce? 4. For assessing the strengths of the organization the following questions are important: 1. and trade). Are the facilities outdated? 3. Opportunities. What is our market share? 5. Are the technologies obsolete? For identifying opportunities the following elements need to be looked at: 1. In which areas is the competition not meeting customer needs? 2. What makes the organization distinctive? 2. What are the vulnerable areas of the organization that could be exploited? 2. governments (local. SWOT analysis provides the assumptions and facts on which a plan will be based. Weaknesses. The SWOT analysis begins with a scan of the external environment. state. What are the possible new markets? .statement of philosophy or strategic purpose designed to convey a vision for the future as envisaged by top management. What financing is available? 6. suppliers. professional. federal. Sources of information may include stakeholders like. Analyzing strengths and weaknesses comprises the internal assessment of the organization. Is research and development adequate? 4. How efficient is our manufacturing? 3.
The SWOT analysis is used as a baseline for future improvement. Set goals and objectives Strategic goals and objectives are developed to fill the gap between current capability and the mission. as well as gap analysis. They are aligned with the mission and form the basis for the action plans of an organization. Are market tastes changing? 5. What are the new regulations? 6. earnings per share. In turn. It also helps in setting minimum acceptable standards or common-sense minimums.3. effectiveness. Generally. What is the strength of the economy? 4. These are specific plans that are needed for each task or supportive activity comprising the whole. Are there new competitors? 3. Is there a shortage of resources? 4. etc. Strategic. Develop related strategies (tactical and operational) Tactical plans are based on the organization’s strategic plan. or outcomes of an organization against similar measures from other internal or external organizations. Objectives are also called performance goals. Benchmarking systematically compares performance measures such as efficiency. In which areas does the competition meet customer needs more effectively? 2. Is there a possibility of growth of existing market?) Identifying threats involves the following: 1. the best strategy is one that fits the organization’s strengths to opportunities in the environment. What substitute products exist? In general terms. What are the emerging technologies? 6. Comparing the organization to external benchmarks (the best practices) is used to assess current capabilities. tactical. operational plans are based on the organization’s tactical plans. Are our rivals weak? 5. and operational planning . organizations have longterm objectives for factors such as. return on investment.
structuring. 2. The steps in the organizing process include: 1. Feedback is encouraged and incorporated to determine if goals and objectives are feasible. and relationships between departments. with ideas and resources. and coordinated. lines of authority.5 Staffing . who reports to whom. An organization chart displays the organizational structure and shows job titles. Formalization is an important aspect of structure.must be accompanied by controls to ensure proper implantation of the plans. Delegate authority to establish relationships between jobs and groups of jobs. Review plans 2. how the tasks are to be grouped. The purpose of the organizing function is to make the best use of the organization’s resources to achieve organizational goals. 2. A key issue in accomplishing the goals identified in the planning process is structuring the work of the organization. procedures. It is the official organizational structure conceived and built by top management. and where decisions are to be made. Organizations are groups of people. short-term standards for key variables that will tend to validate and support the long-range estimates must be established. and coordinating the work components to achieve organizational goal.4 Organizing It involves designing. necessary to maintain competitive advantage in the said market. List all tasks to be accomplished 3. working toward common goals. grouped. Organizational structure is the formal decision-making framework by which job tasks are divided. Monitor the plan A systematic method of monitoring the environment must be adopted to continuously improve the strategic planning process. It is the extent to which the units of the organization are explicitly defined and its policies. Divide tasks into groups one person can accomplish – a job 4. who is to do. Group related jobs together in a logical and efficient manner 5. and goals are clearly stated. To develop an environmental monitoring procedure. The formal organization can be seen and represented in chart form. Assign work to individuals 6. It is the process of determining what tasks are to be done. This review is used for the next planning cycle and review.
money. 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. placement. 3. 4. development. It has many sub-functions: Staffing involves determination of the manpower requirement. Pervasiveness of Staffing: Effective execution of staffing function is the responsibility of all managers in the organization. selection. It involves many sub-functions such as manpower planning. transfer and appraisal of personnel to fill the organizational positions. 2. appraisal. training. compensation and training of needed people”. 2. O’Donnell & Weihrich have defined staffing as “filling positions in the organization structure through identifying work force requirements. recruitment. Definition: 1. Deals with people: Staffing is a separate managerial function which deals with people in the organization.It is not the machines. Koontz. 3. Staffing refers to the managerial function of determining and improving the manpower requirements of an enterprise. materials. growth and development of all those members of the organization whose function is to get things done through the efforts of other individuals”. placement. performance appraisal etc. recruitment. promotion. Theo Haimann – “Concerned with the placement. Therefore it is the responsibility of the management to secure and maintain competent and dedicated workforce including managers and operatives. 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. . This task has been referred to as staffing. selection. inventorying the people available. Curther Geelick Cyndall Urwick – “Staffing is the whole personnel function of brining in and training the staff and marinating of favorable conditions of work” Features of Staffing The analysis of the above definitions highlights the following features: 1. Managers of the concerned departments are responsible for the selection and development of qualified people for their department and maintain them in their department.
Thus staffing is an ongoing process through – out the life of an organization. Personnel policies and programs must be formulated as guides to perform the staffing function effectively. motivate them. Direction is an important managerial function. training development and maintenance of personnel. Direction is continuous process and it continues throughout the life-time of the organization. Thus staffing deals with the future requirements also. overseeing and leading people. vacancies arise out of retirement. It is instructing people as to what to do. Direction is the managerial function of guiding.5. 2. management initiates actions in the organization. selection. identifying the manpower requirements. recruitment. promotion. how to do and telling them to do to the best of their ability. directing is the “interpersonal aspect of managing by which subordinates are led to understand and co-ordinate effectively and efficiently to the attainment of enterprises goals”.6 Directing Direction is one of the functions of management. Present positions must be filled keeping in mind the future requirements. It is a process: it is a process having a logical sequence i. It is a continuous function: With the growth and expansion of business additional manpower is needed. lead them and guide them on a continuous basis. It is an important managerial function. Definition According to Koontz and O’Donnel. It is performed in the context of superior-subordinate relationship and every manager in the organization performs his duties both as a superior and subordinate. Direction function is performed at every level of management. 2. resignation. A manger needs to give orders to his subordinates. Characteristics of Direction The characteristic features of direction are as follow: 1. Through direction. 3. 6. 8. .e. induction. 7. etc. It is a continuing function. It deals with future requirements: Staffing deals with current and future personnel requirements.
guide. coach and supervise his subordinates. Direction imitates at the top level in the organization and follows to bottom through the hierarchy. organizing and staffing on one hand and controlling on the other. The five needs are: · Physiological: Includes hunger. it aims at getting things done by subordinates and. As Theo Haimann puts it. on the other. human beings have wants and desires which influence their behaviour. the more individuality. It is an important function of management: Directing is an important management function which provides a connecting link between planning. “without the issuance of directives. teach. thirst. will vary depending upon his level.4. satisfied needs cannot. and the Two-Factor theory. only unsatisfied needs can influence behavior. The manager never ceases to direct. Essence of performance: Directing is the process around which all performances revolve. proposed by Maslow (1943). Pervasive function: Directing is a managerial function performed by all mangers at all levels of the organization. Continuous function: Directing is a continuous process. the number of subordinate he has and the other duties he is expected to perform. The needs are arranged in order of importance. Directing is the process around which all performances revolve. The amount of time and effort an executive spends in directing however. The person advances to the next level of needs only after the lower level need is at least minimally satisfied. Maslow’s Hierarchy of Needs Theory According to this theory. nothing or at the best very little would be accomplished”. without guiding and overseeing subordinates. It emphasizes that a subordinate is to be directed by his own superior only. 2. Nature of Directing The nature of directing can be discussed under the following: 1. 3. 2. and other bodily needs . shelter. Theories X and Y. humanness and psychological health a person will show. On the one hand. sex. Direction has dual objectives. 5. The further they progress up the hierarchy. to provide superiors opportunities for some more important work which their subordinates cannot do. from the basic to the complex.7 Motivating Motivating In the 1950s three specific theories were formulated and are the best known: Hierarchy of Needs theory. 4.
and self-actualization are classified as higherorder needs. externally. Higher-order needs are satisfied internally. and achievement. Herzberg’s Two Factor Theory . achieving one’s potential. such as. such as. It is also assumed that workers generally place security above all other factors and will display little ambition. esteem. recognition. belongingness. Workers need to be closely supervised and a comprehensive system of controls and a hierarchical structure is needed to supervise the workers closely. and self-fulfillment Maslow separated the five needs into higher and lower orders. Theory X and Theory Y Douglas McGregor argued that a manager’s view of the nature of human beings is based on a certain grouping of assumptions and he or she tends to mould his or her behavior toward employees according to these assumptions. Physiological and safety needs are described as lower-order. self-respect. 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. It is also believed that. self-motivated. status. From the above. if they can.· Safety: Includes security and protection from physical and emotional harm · Social: Includes affection. whereas. Theory Y assumes that higher-order needs dominate individuals. Theory X – In this theory management assumes employees are inherently lazy and will avoid work. and attention · Self-actualization: The drive to become what one is capable of becoming. acceptance. autonomy and empowerment. includes growth. Lower-order needs are predominantly satisfied. It is believed that employees enjoy their mental and physical work duties. it is clear that Theory X assumes that lower-order needs dominate individuals. Theory Y – In this theory management assumes employees may be ambitious. self-direction. and external esteem factors. autonomy. Social. and exercise self-control. if given the chance employees have the desire to be creative and forward thinking in the workplace. anxious to accept greater responsibility. and friendship · Esteem: Includes internal esteem factors.
2. and coordinating the work components to achieve organizational goal. Every organization needs to plan for change in order to reach its set goal. and salary are hygiene factors. It is the process of determining what tasks are to be done. The _____analysis begins with a scan of the external environment. 3. Planning involves the process of defining goals. Self Assessment Questions 1. structuring. To motivate people. such as. establishing strategies for achieving these goals. many related to the tasks being performed. _______refers to the managerial function of determining and improving the manpower requirements of an enterprise. Extrinsic factors. advancement. In summary. who is to do. neither will they be satisfied. Motivators are intrinsic factors. The satisfiers relate to what a person does while the dissatisfiers relate to the situation in which the person does what he or she does. and developing plans to integrate and coordinate activities. and where decisions are to be made. but their presence does not motivate or create satisfaction. performance appraisal etc. It involves many sub-functions such as manpower planning.8 Summary Management is the art of getting things done through people. When hygiene factors are adequate. recognition. such as. responsibility.Herzberg (1959) constructed a two-dimensional paradigm of factors affecting people’s attitudes about work. people will not be dissatisfied. 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. 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. working conditions. and achievement. Presence of these factors ensure job satisfaction. Hygiene factors on the other hand. ____defined management as the art of getting things done through people. supervision. have to do with a person’s relationship to the context or environment in which she or he performs the job. company policy. Job satisfaction factors are separate and distinct from job dissatisfaction factors. motivators describe a person’s relationship with what she or he does. . who reports to whom. recruitment. how the tasks are to be grouped. The absence of hygiene factors can create job dissatisfaction. interpersonal relations. Staffing refers to the managerial function of determining and improving the manpower requirements of an enterprise. Organization involves designing. 2. These two factors are motivators and hygiene factors and this theory is also called motivation-hygiene theory.
Staffing Answers to TQs: 1. Reference 2. SWOT 3.5 3. Write a short not on directing. 2. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3. Reference 2. Explain Staffing in detail 3.9 Terminal Questions 1. Follett 2. Reference 2.10 Answers to SAQs and TQs SAQs: 1.6 Copyright © 2009 SMU Powered by Sikkim Manipal University .2.3 2.1 Introduction Objectives . What is planning? 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.
” This definition is lengthy. we mean those processes through which organization members develop a viable. Top management must initiate the improvement “journey” and be committed to seeing it through. 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. The phrase led and supported by top management states an imperative: Top management must lead and actively encourage the change effort. Organizational change is hard. it must be built into the very fabric of the organization-its strategy. through an ongoing. or became distracted with other duties. including action research. we mean those interacting. By learning processes. team. and shared picture of the nature of the products and services the organization offers. and making it happen. we mean involving large numbers of people in building the vision of tomorrow. In fact. coherent. By long-term effort. By visioning processes. it is more accurate to describe “improvement” as a never-ending journey of continuous change.several years in most cases. processes. and problem-solving processes. We will explain this definition in some detail. There is no “quick fix” when it comes to lasting organizational improvement. listening. we mean that organizational change and development takes time. For empowerment to become fact of life.Now let’s turn to our definition of organization development. it includes pain and setbacks as well as success. and what the organization and its members can expect from each other. the ways those goods will be produced and delivered to customers. lost its commitment. By empowerment processes. but as one that includes characteristics we think are important for the present and future of the field. to improve an organization’s visioning. By empowerment. 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. where . and self-examining processes that facilitate individual. collaborative management of organization culture-with special emphasis on the culture of intact work teams and other team configurations-using the consultantfacilitator role and the theory and technology of applied behavioural science. Peter Senge describes learning organizations as “… organizations where people continually expand their capacity to create the results they truly desire. empowerment. One program or initiative moves the organization to a higher plateau. We do not propose it as the “right” definition. led and supported by top management. then another moves it to yet a higher plateau of effectiveness. structure. serious business. where new and expansive patterns of thinking are nurtured. but it includes a number of components that we consider essential. and organizational learning. Most OD programs that fail do so because top management was ambivalent. learning. and culture. “Organization development is a long-term effort. developing the strategy for getting there.
By including culture so prominently in our definition. sentiments. attitudes. make decisions. empowerment. activities. so is managing the culture. and problem-solving processes are opportunities for collaboration in organization development. 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. empowerment. therefore (e) is to be taught to new members as the (f) correct way to perceive. vitality. By ongoing collaborative management of the organization’s culture. . We believe solutions to problems are enhanced by tapping deeply into the creativity. values. (d) that has worked well enough to be considered valid and. and feel-that is why culture change is necessary for true organizational improvement. and we highlight the importance of visioning. we affirm our belief that culture is the bedrock of behaviour in organizations. not just a small group. Still. Edgar Schein clarifies the nature and power of culture in his definition: “Culture can now be defined as (a) a pattern of basic assumptions. so they are the place OD programs often begin – getting people to stop doing things one way and start doing them a different way. and where people are continually learning how to learn together. discovered. And second. think. learning. and each influences the others. strategy. solve problems. opportunities. So culture consists of basic assumptions. beliefs. and processes makes each important. But change becomes permanent when the culture changes and people accept the new ways as the “right” ways. and continuous learning the organization is bound to succeed. (b) invented. widely shared vision of a desired future creates the best climate for effective problem-solving by all the organization’s members. Empowerment means involving people in problems and decisions and letting them be responsible for results. We believe that when the culture promotes collaboration. first. and challenges in the organization’s environment and its internal functioning. Collaborative management of the culture means that everyone. or developed by a given group. in contrast to having only a select few involved. norms. structure. learning. has a stake in making the organization work. commitment. and take actions on problems. Processes are relatively easy to change. We further believe that having compelling. (c) as it learns to cope with its problems of external adaptation and internal integration. think. and common purposes of all members of the organization. and problem-solving processes. empowerment. managing the culture should be a collaborative business. we mean. expectations. Processes are how things get done.” Problem-solving processes refer to the ways organization members diagnose situations. and norms of behaviour that are viewed as the correct way to perceive. and artifacts. and feel in relation to those problems.collective aspiration is set free. The reciprocal influence among culture. interactions. that one of the most important things to manage in organizations is the culture: the prevailing pattern of values. culture is of primary importance. Just as visioning. Our definition also places considerable weight on organizational processes. assumptions. Michael Beer’s definition called for “developing new and creative organizational solutions”.
and using management information. The definition we have just analyzed contains the elements we believe are important for OD. The old method was to have functional specialists work on the problem sequentially. The results are usually highly gratifying both for the team members and for the organization. When one function finished with its part of the project. But in many organizations today. the process “threw the results over the wall” to the next functional unit. and training. we recognize that teams are central to accomplishing work in organizations. Specifically. team culture can be collaboratively managed to ensure effectiveness. intact work teams do not have a boss in the traditional sense-the teams manage themselves. members are trained in competencies such as planning. In Liberation Management. OD focuses on culture and processes. constantly shifting teams will be the dominant configuration for getting work done. and procurement. Further. The most prevalent form of teams in organizations is intact work teams consisting of superior and subordinates with a specific job to perform. hiring. This method resulted in loss of synergy. maintaining quality control. Temporary. Today’s organizations increasingly use ad hoc teams that perform a specific task and disband when the task is completed. Tom Peters predicts that the work of tomorrow (most of which will be “brain work”) will be done by ad hoc teams brought together to accomplish a task. according to Peters. individuals and the organization function well. firing. OD encourages collaboration between organization leaders and members in managing culture and processes. When teams function well. such as design. To summarize. engineering. much rework. Over time. In addition to team building and role and goal clarification. 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. multifunctional. here are the primary distinguishing characteristics of organization development: 1. 2. He uses the terms ‘multifunctional projectization’ and ‘horizontal systems’ to describe these teams and their work. wasted time. Team building and role and goal clarification interventions are standard activities in OD programs directed toward intact work teams. and considerable antagonism among the separate functional specialists.By intact work teams and other configurations. 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. These self-directed teams assume complete responsibility for planning and executing work assignments. . manufacturing. and then disbanded with the people going on to new tasks. self-directed teams control performance appraisals. We think teams are the basic building blocks of organizations.
3. Rather. Attempting to create “win-win” solutions is standard practice in OD programs. 3. OD focuses on total system change and views organizations as complex social systems. 8. The concept of comprehensive change is based on the systems concept-open. Long-range Change: OD efforts are not meant for solving short-term. Thus. OD efforts are not one-shot actions. Participation and involvement in problem-solving and decision-making by all levels of the organization are hallmarks of OD. 4. temporary. This ‘planned’ emphasis separates OD efforts from other kinds of more haphazard changes that are frequently undertaken by organizations. OD views organization improvement as an ongoing process in the context of a constantly changing environment. rather. OD relies on an action research model with extensive participation by client system members. OD takes a developmental view that seeks the betterment of both individuals and the organization. Teams of all kinds are particularly important for accomplishing tasks and are targets for OD activities. . 5. they are ongoing. interactive. 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. OD practitioners are facilitators. 2. 7.3 Characteristics of OD 1. OD focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. 4. and cyclic processes. 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. dynamic and adaptive system. 9. so the methods of attaining these goals should also change. Comprehensive Change: OD efforts focus on comprehensive change in the organization. 3. Dynamic Process: OD is a dynamic process and includes the efforts to guide and direct changes as well as to cope with or adapt changes imposed. Planned Change: OD is a strategy of planned change for organizational improvement. rather than focusing attention on individuals. 10. It recognizes that organizational goals change. 6. 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. collaborators. and co-learners with the client system.
Although Organization Development Programmes vary. He shares a social philosophy about human values. Organization Development is inextricably linked with action. and adaptability for the organization as a whole. yet following features are common to most of the programmes: (a) The client is a total system or major subunit of total system. identity. problem-solving. There is a close working relationship between the change agent and the target organizational members to be changed. participation. or catalyst. Emphasis on Intervention and Action Research: OD approach results in an active intervention in the ongoing activities of the organization. (b) Problems of human satisfaction and development. first. second.4 Categories of OD Programmes In general. and revitalization. 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’. . growth.5. OD attempts to provide opportunities to be ‘human’ and to increase awareness. A change agent in OD process does not just introspect the people and introduce changes. 3. practitioners and the client laymen. Two important elements of Organization Development are. and integrate individual and organizational goals. third party change agent. and mutual influence. Key areas are the normative type of model. He designs intervention strategies based on these data. collects relevant data. Action research is the basis for such intervention. evaluates these data. rather. the element which links Organization Development with the scientific method of inquiry and. and then. (b) The interventions are primarily directed towards problems and issues identified by the client group. This is done to arrive at certain desirable outcomes that may be in the form of increased effectiveness. The change agent is a humanist seeking to get a humanistic philosophy in the organization. it is a programme with a purpose that is to guide present and future action. They discourage ‘do it yourself’ approach. At the individual level. The relationship involves mutual trust. joint goals and means. takes actions for intervention. he conducts surveys. all types of experience requiring Organization Development efforts may be grouped into three categories: (a) Problems of destiny. Participation of Change Agent: Most OD experts emphasize the need for an outside. and (c) Problems of organizational effectiveness. the collaborative relationships between the scientists. further more. 7. the importance and centrality of goals and objectives and the different role requirements of the consultant change agent vis-à-vis the clients. 6.
with the authority of knowledge and competence. (e) To make competition more relevant to work goals and to maximize collaborative efforts. (i) To increase self-control and self-direction for people within the organization. This Organization Development progrmmes.5 Goals of Organization Development Following are the generally accepted goals of OD: (a) To create an open. and (d) The interventions are based on behavioural science theory and technology.(c) The interventions are directed towards problem-solving and improved functioning for the client system. problem solving climate throughout an organization. (c) To locate decision making and problem-solving responsibilities as close to sources of information as possible. (b) To supplement the authority associated with role or status. (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. (g) To increase the sense of ‘ownership’ or organization’s objectives throughout the work force. (d) To build trust among persons and groups throughout an organization. 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. (f) To develop a reward system which recognizes both the achievement of the organization’s goals (profit or service) and development of people. 3. 3. its underlying theory and assumptions and some of the pitfall and challenges in attempting to improve organizations through behavioural science. like other normative re-educative programmes. We need to examine carefully the techniques of Organization Development. (j) To improve effectiveness of the organization.6 OD and Management Development .
Based on this. He feels that management development reinforces the above four qualities and helps managers cultivate and develop the will to manage. organization. If OD efforts train people towards anti-authority value. These are: (i) a positive attitude towards authority. While the latter aims at developing the mangers individually for the accomplishment of better performance in organizational setting. there are four attributes of effective managers in large organization. Burke and Schmidt have made this difference more clear which is presented in the following table. accomplishments. it is beneficial to make a comparison between OD and Management Development (MD) as both have some common objectives that betterment of an organization. OD tries to fit the organization to the men. whereas OD efforts within organizations may cause confusion and chaos for incoming human resources if the organization is underplayed and the humanistic dimension alone is emphasized. Difference between Management Development and OD Factors Objectives Management Development Organization Development Increasing manager’s Changing the nature of the contributions to goal organization. let us define management development as we have seen the definition of OD. and (iv) a sense of responsibility. According to him. (ii) competitiveness. more attention to peer-groups. Before making a comparison between the two. according to him. have substantial influence in changing the capacity of the individual to perform his assignment better and in so doing are likely to increase his potential for future management assignment. Miner has drawn difference between two processes. the former goes one step further and purports to change the entire organizational climate where the mangers work. Train and equip employees Focus on design. management development has been defined as follows: “Management development is all those activities and programmes when recognized and controlled. then would the results be functional for managing organization activity in a competitive world? Thus. and techniques adopted in both may overlap to some extent. not on the and managers to perform managers.” Organization development differs from management development. he appears to be biased against OD and the real distinction between OD and MD lies in between these two extremes. Focus . focus on achieving better in existing improvement in design. and greater display of feelings and emotions. MD tries to fit the men to the organization. less individual competitiveness.At this stage. However. with their existing objectives and structure. (iii) assertiveness. The term ‘development’ refers broadly to the nature and direction of change induced in personnel through the process of training and education.
Problem-solving approach. To increase the level of trust and mutual emotional support among all organization members. Specialist No special requirement. Long-range strategy for organizational innovation and renewal. In early 60s. Since OD attempts to bring comprehensive change in the organization. 3. 2. Trained specialists required. Thus. 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. By 70s. however. To place emphasis on humanistic values and goals consistent with these vales. To increase the level of enthusiasms and personal satisfaction at all levels of the organization. as a long-term strategy for organizational change. 5. and laterally. it is quite suitable for improving organizational performance on long-term basis. however. To increase the level of self and group responsibility in planning and its implementation.7 Role of Organization Development Organization development. horizontally. has invited sharp criticism as a strategy to increase organizational viability and effectiveness because many OD programmes have failed. Research studies have also failed to conclude .Approach Time Educative and training Short-range. 4. To increase the openness of communications in all directions-vertically. plays key role in organizational improvement. substantial disenchantment with OD became evident because of many controversial OD techniques like sensitivity training. 3. Much of the enthusiasm created at the beginning of OD programmes vanished over the period of time. OD became quite successful with many professional consultants offering high services and programmes to various organizations. confrontation techniques.8 Problems in Organization Development Organization development. 3. To create an environment in which authority of assigned role is augmented by authority based on knowledge and skills. OD can be utilized for the following results in the organization: 1. etc. 6. To treat each human being as a complex person with a complex set of needs important in his work and his life. 7.
These should be based on the specific needs of the organization. Some of these efforts are as follows: 1. Hence. and (ii) failure to correctly model appropriate personnel behaviour in the programme. Thus. 3. Enough time should be allowed so that the effects of OD programme are realized. For example. some specific efforts are required. and (iii) failure to increase employee motivation through participation and development of personal growth and self-esteem. There is discrepancy between ideal and real situations. 5. 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. 5. it may be emphasized that OD programmes are likely to fail when these are not programmes and hence failure. Organization must formulate the objectives of OD programme very clearly and specifically. particularly in bottom-line ones. it is useless to try OD. and only large organizations can afford this luxury without any guarantee of positive outcome. . 3. in order to make best use of OD efforts. However. it can be visualized that OD itself may not be dysfunctional but application may be. OD makes people unfit for the real organizations world because no organization can fully adopt open system concept. Resistance to change is a natural phenomenon and OD puts undue pressure to change. 2. 2. Therefore. OD programmes are often quite costly. OD can not be taken as panacea for curing all organizational problems. In general. 4. it fails even as a long-term strategy. There should be proper use of OD interventions. Therefore. If an organization is laden with these people. There should be genuine support of OD programme from top management. OD fails to motivate people with low level of achievement needs. People realized its dysfunctional aspects only when many OD efforts failed. OD is criticized on the following lines: 1. OD tries to achieve ideal without taking into account real. 4. Evans has identified three factors which have been responsible for the failure of OD programmes: (i) failure of the management consultant group to correctly tailor the programme to actual needs of the organization.significant contributions of OD in all organizations.
3. What are the problems involved in the implementation of OD? 3. Explain the various characteristics of OD. Tom Peters 3. Management development aims at developing the managers individually. State the various roles of OD. ––––––––– is a process which includes leadership behaviours and human resource practices. The participative. 3. ––––––– is associated with “Liberation Management”. Organization development should be led and supported by –––––––. 4. Distinguish between ‘organizational development’ and ‘management development’. collaborative. _____________is a short-term strategy. Define OD. Top management 2. 2.11 Answers to SAQs and TQs SAQs: 1. 3. Explain its salient features. There is no ‘quick fix’ to organizations’ problems. OD is the ultimate remedy for organizational improvements and developments. problem-focused ‘nature of OD’ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. 5. Who is associated with the “Learning Organizations”? 5.9 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. 4.10 Terminal Questions 1. But OD aims at changing the entire organizational climate where the managers work. 2.Self Assessment Questions 1. Empowerment . 3.
6 4.6 Team-building . Refer section 3.5 Leadership Development 4. Refer section 3. Refer section 3. Peter Senge 5. MU0002-Unit-04. Refer section 3.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 3.2 2.1 Introduction Objectives 4.Organization Development – Interventions Unit-04.3 Process Consultation 4.3 3.Organization Development – Interventions Structure: 4. Management development Answers to TQs: 1.4.4 Grid Training 4.7 5.2 Survey Feedback 4.
7 Inter Group Development 4. survey feedback. For example.12 Answers to SAQs and TQs 4. French and Bell have suggested twelve families of OD interventions: diagnostic.10 Summary 4. work group. 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. However. education and training. process consultation.4. Thus. 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. many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others. People’s behaviour may be relevant to understand at individual level. mediation and negotiation activities. and organizational level. interpersonal level. interventions may be required to change people at all these levels. management grid. Further.1 Introduction OD interventions refer to various activities which a consultant and client organization perform for improving organizational performance through enabling organizational members better manage their behaviour. Interventions constitute the action thrust of organization development.8 Change Agents 4. Therefore. French and Bell have defined OD intervention as: “Sets of structured activities in which selected organizational units (target groups or individuals) engage with a task or a sequence of tasks where the task goals are related directly or indirectly to organizational improvement. the classification appears to be more relevant because it may specify the .11 Terminal Questions 4. inter-group level. the classification of OD interventions shows variation. techno-structural activities. they make things happen.” There are various OD interventions and they are classified in different ways. 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. Nevertheless.9 Role of Change Agents Self Assessment Questions 4. inter-group activities. group level. team-building. and organizational culture. various consultants and practitioners have different opinions about the activities which can be included in interventions.
and survey feedback method. peer support.2 Survey Feedback Besides laboratory training (sensitivity and grid). and follow up. · Explain grid training. team. · Realize the importance of team-building. peer work facilitation. Process of Survey Feedback Survey feedback usually proceeds with sequential activities involving data collection. other techniques like process consultation. · Role of change agents. ISR has prepared a questionnaire which includes questions on leadership – managerial support.building. To assist the group members to improve the relationships through discussion of common problems. managerial work facilitation. the other major thrust in the development of OD has come from survey research and feedback of data. managerial goal emphasis. developing action plans based on feedback.range of change that an organization requires. 2. Institute for Social Research (ISR) of University of Michigan. 4. peer goal emphasis. The basic objectives of survey feedback are as follows: 1. To assist the organization in diagnosing its problems and developing action plan for problemsolving. Historically. have been added. USA developed a comprehensive questionnaire for conducting survey in different aspects of an organization. · Describe process consultation. . Data Collection: The first step in survey feedback is data collection usually by a consultant based on a structured questionnaire. and peer interaction facilitation. and participative goal-setting which has become more popular as management by objectives. OD efforts were attempted through sensitivity training. you will be able to: · Describe survey feedback. feedback of information. grid training. Though some type of survey method was prevalent in various organizations earlier. Objectives: After studying this unit. Our further discussion follows this development. 1. Subsequently. The questionnaire may include different aspects of organizational functioning.
In oral system of feedback. even if valid and reliable information is collected. However. feedback is given to the persons who have participated in the fulfilling up of questionnaire. and satisfaction with the work group. In particular. Whatever the method of giving feedback is adopted. satisfaction with the pay. 3. it is provided through group discussion or problem-solving sessions conducted by the consultant.organizational climate-communication with the company. 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. 2. effectiveness of survey feedback depends on two factors. decision-making. and general management. survey feedback contributes in the following manner: 1. First. motivation. Feedback of Information: After the data are analyzed. follow-up action may be in the form of developing some specific OD interventions particularly process consultation and team-building. and satisfaction-satisfaction with the company. it is of no use unless follow-up action is taken based on the . co-ordination between departments. The feedback may be given either orally or in a written form. Alternatively. satisfaction with the supervisor. rather. After the questionnaires are completed. 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. It is cost-effective means of implementing a comprehensive OD programme making it a highly desirable technique. 2. The questionnaire is administered personally either by the members of consulting firm or by organization’s personnel. If it is biased. 3. feedback may be given in the form of a written summary of findings. it should be constructive and suggestive. 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. by the consultant. satisfaction with the job. control within the company. questionnaire used and method adopted for its administration should be reliable and valid. Follow-up Action: Survey feedback programme is not meaningful unless some follow-up action is taken based on the data collected. data are classified. tabulated. and analysis is made to arrive at some meaningful conclusions. It generates great amount of information efficiently and quickly which can be used in solving problems faced by the organization and its members. all attempts to diagnose the problems will be abortive and futile. Evaluation of Survey Feedback Survey feedback provides a base for many managerial actions which has been confirmed by various research studies.
Define the Relationship: At this stage. it provides base for action for change. communication.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. observations. group norms.C are communicated to them with a view that they co-operate with the consultant. To bring desired change in the various organizational processes like leadership. 4. 2. At this stage. group decision-making and problemsolving. the leading writer and consultant on P.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. etc. and interview about the problems. This data gathering occurs simultaneously with the entire consultative process. 1. To understand how various organizational processes can be linked to objective achievement in the organization. . 2. At this stage.C has defined it as follows: “The set of activities on the part of the consultant which help the client to perceive.information. Gather Data and Make a Diagnosis: Information is collected from various sources thorough the use of questionnaires. Steps in Process Consultation Schein has suggested following specific steps which the consultant would follow in a P. A survey feedback is not a technique in itself for change.3 Process Consultation Process Consultation (P. time. Initiate Contact: This is beginning stage of P. spelled out at the initial stage. roles and functions of group members. client and consultant enter into agreement covering various aspects of consultancy services like fees. 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. Edgar Schein. 4.C) is a technique for intervening in an ongoing system. and spelling out services. and act upon the process events which occur in the client’s environment. the consultant is introduced to the organizational members and basic objectives of the P.C programme of OD. and inter-group co-operation and conflicts. Information collected is processed to diagnose the problems and their underlying causes. the client’s expectations and hoped-for results are also decided.” The basic objectives of P.C are as follows: 1. 3. The basic content of P. understand.
P. Process of Grid Training The basic content of grid organization development is managerial grid as discussed. Intervene: At this stage. However. both these problems may be overcome by engaging a suitable consultant and developing willingness among the members for change. and processes necessary for effectiveness at the individual. However. The grid organization development consists of six phases. enabling individuals and groups to assess their own strengths and weaknesses. In the review of various P. coaching.5. One basic reason for this phenomenon may be the consultant’s inability to steer the organization out of troubles. 2. and total organizational levels. Its specific objectives are as follows: 1. 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.C programmes. 3. It utilizes a considerable number of instruments. and the organization as a whole. To understand the importance and rationale of systematic change. groups. To study the organization as an interactive system and apply techniques of analysis in diagnosing its problems.4 Grid Training Grid training is basically based on grid organization development developed by Blake and Mouton. feedback. P. Evaluation of Process Consultation: Process consultation is quite in-depth activity of OD in which the consultant plays a major role. significant correlation between the outcomes has not been found.C is also not free from criticisms. and/or structural change. group. focuses on skills. the consultant disengages from the client organization by mutual agreement but leaves the door open for future involvement. . The whole orientation is to develop managerial style through the application of behavioural science knowledge. From this point of view.C is very effective intervention for organizational improvement. Though he is involved only in suggesting the various changes in the processes.C is completed. the consultant intervenes in the organizational processes by using different interventions like agenda-setting. It is a comprehensive and systematic OD programme which aims at individuals. knowledge. he assists the organizational members to incorporate those changes. 4. 6. like other OD intervention techniques. inter-group. Reduce Involvement and Terminate: When the work of P. To evaluate the styles of leadership and techniques of participation to produce desirable results.
2. Each group separately analyses the ideal inter-group relations. Teamwork Development: The focus in this stage is to develop teamwork by analyzing team culture. grid training is a non-rigorous method. 4. Furthermore. The strategy is then implemented. therefore. Systematic Critique: In this stage. the various efforts from phase 1 to phase 5 are evaluated and critical analysis is made.5 Leadership Development . Further. problem-solving. Managerial grid: It covers various aspects of assessing managerial styles. Each group may be given assignment to evolve strategy for making ideal organization with the help of the consultant. some of them have not supported the claims made by Blake and Mouton. Evaluation of Grid Training Most of the support of grid training has come from its originators-Blake and Mouton. and teamwork.” In a later work. they maintained the same stand. The analysis will bring out the shortcomings that may be there. 3. the focus is on inter-group behaviour and relations. The thrust is on moving groups from conflict to co-operation. 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 4.1. Developing Ideal Strategic Corporate Model: At this stage. it appears that this type of educational strategy can help to make significant contributions to organizational effectiveness. Though research studies on the application of grid training are not many. Inter-group Development: At this phase. The individuals try to learn to become managers by practice. Action steps to move towards the ideal are developed and assigned to individuals who may be engaged in building co-operative inter-group relationships. The action is designed to identify the characteristics of the ideal organization. objective-setting. grid training has some positive contributions for organizational effectiveness. communication skills. it discounts reality. 6. traditions. In this light. and alike. The skills relating to planning. They have maintained that “managerial and team effectiveness can be taught to managers with outside assistance. 5. and problemsolving are also developed. Grid training programme is criticized on the basis that it lacks contingency approach and. the focus shifts to the total organization and to develop skills necessary for organizational excellence. The members of the organization are trained for achieving this excellence. 4. in spite of these criticisms. the various programmes may be redesigned.
Also during these times of change. Unfortunately. therefore. have no faith in the system or in the ability of leaders to turn the organization around. teambuilding is the most important. Slogging Through The Swamp. In organizations characterized by poor leadership.” A possible reason for this phenomenon is that people in the organization work in groups (teams) and the effectiveness of these groups ultimately determine organizational effectiveness. must labor under the weight of employees who have given up. employees will expect effective and sensible planning. lead. and regular. if haven’t established a track record of effective leadership. Before going through how team-building exercise can be undertaken to develop effective teams. problems in . if allowed to go on for too long. 4. how synergy is generated through team-work. and applied OD intervention for organizational improvement. but more importantly. In a climate of distrust. by the time you have to deal with difficult changes. As against these. clearly the most important determinant of "getting through the swamp". brings hope for better times in the future.6 Team-building Various OD interventions discussed so far have their specific implications for OD and. If you are to manage change effectively. and After Arrival. and credibility of senior and middle management. employees will perceive leadership as supportive. while at the same time recognizing that tough decisions need to be made. Poor leadership means an absence of hope. The existence of this trust. The organization must deal with the practical impact of unpleasant change. are closely associated with a very few advocates and practitioners. The best way to summarize is that there is a climate of trust between leader and the rest of the team. during and after change implementation is THE key to getting through the swamp. For example. widely accepted. employees learn that leaders will act in indecipherable ways and in ways that do not seem to be in anyone’s best interests. competence. results in an organization becoming completely nonfunctioning. and that makes coping with drastic change much easier.When change is imposed (as in downsizing scenarios). let us consider the life cycle of a team. The literature on the subject indicates that the nature of the change is secondary to the perceptions that employees have regarding the ability. The Role of Leadership In an organization where there is faith in the abilities of formal leaders. We can call these Preparing For the Journey. 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. Leadership before. concerned and committed to their welfare. During drastic change times. employees will look towards the leaders for a number of things. employees expect nothing positive. confident and effective decision-making. it may be too late. you need to be aware that there are three distinct times zones where leadership is important. is the ability of leadership to…well. which. complete communication that is timely. We will look more carefully at each of these.
even the most successful teams as they have completed their mission. they often pass through several stages as they learn to work together as a team.1: Life Cycle of a Team Though these are not followed rigidly. 4. team members start settling. because of individual differences. Norming: After storming stage. Performing: When team members interact among themselves on the basis of norms that have emerged in the team. interaction among team members is often cautious especially when they are new to one another. team members get introduced to each other if they have not interacted earlier. These typical stages of life cycle of a team are described below: 1. At this stage. different members may experience varying degree of tension and anxiety out of this interaction pattern. jockeying for relative control. each team has to be adjourned. and tasks are accompanied efficiently.team-work. The team begins to move in a co-operative fashion and a tentative balance among competing forces too is struck. and features of effective team so that team-building exercises focus more sharply on developing effective team. Adjourning: Adjourning is the end phase of cycle of a team. and begin to turn their attention to the group tasks. Storming: After the forming stage which is mostly related to perceiving and assessing each other. and arguing for appropriate strategies to be adopted for achieving team’s goals. 2. storming. members start interaction among themselves in the form of competing for status. start to accept others. norming. These stages are: forming. 4. 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. At this stage. Functional roles are performed and exchanged as needed. The . 3. Forming: At the first stage of the life cycle. Sooner or later. performing. Life Cycle of a Team When a number of individuals begin to work at interdependent jobs. they learn to handle complex problems that come before the team. They share personal information. and adjourning as shown below: Fig. they do represent a broad pattern that may be observed and predicted in many settings across team’s time together. 5. group norms emerge to guide individual behaviour which form the basis for co-operative feelings and behaviour among members.
the team would be effective. After the adjournment of the team. committee. However. etc. fail to perform their assigned tasks.” Thus. 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. team-work does not necessarily spurt group efforts. 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. intense social relationship among members comes to an end. other factors remaining the same. Other types of team like a department in an organization run on the basis of some permanency though there may be changes in team members. students find that one or two students do not put their weight for the completion of the project. 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. the complementarity among members is achieved. that is. A simple phenomenon of social loafing may be observed in a group assignment to students during their study. 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. a team is created to undertake a task which requires a variety of skills and single individual cannot perform that task alone. concept of stages is significant in the context of the nature of problem which team members are likely to face in team-work. These students may be called loafers (not attaching the same connotation which is attached with the term loafer in our social phenomenon) who frequently miss the project group’s meetings. This effect can be described as 2+2=5 effect. . in one experiment. 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.adjournment phase takes place in the case of those teams which are created for some special purposes like task force. and so on. Putting the concept of synergy in teamwork means members of the team are complementary to each other and they contribute positively to one another. For example. In fact. In such an assignment. synergistic effect is not automatic but depends on the complementarity of different elements that are put together and the way they interact among themselves. To the extent. This phenomenon may happen in teams in work organizations too. They rely on the fact the more reliable members will complete the project without their help. how a particular element affects another and is affected by it.
team members may tend to contribute positively to the teamwork. While skills are relevant for job performance. Let us see how these factors make a team effective. two things are required from its members. Thus. From this statement. Skills and Role Clarity: For an effective team. it appears that there are many factors in an effective team. Supportive Environment: A team loaded with skilled members cannot perform well if the organizational climate is not supportive for that. 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. group of eight. . Even if one member lacks behind. When the group is not cohesive with high output norms. The possibility of occurring of social loafing in a team-work increases because of the following reasons: 1. When the same individuals pulled on the rope of groups of three. we have mentioned that team effectiveness depends on the complementarity of team members. The phenomenon of social loafing can be minimized by constituting effective team for group performance.2 pounds. goals. managers at higher levels particularly at the top level should set organizational climate and culture which enthuse team members to put their best. 2. Individuals were asked to pull alone as hard as possible on a rope attached to a strain gauge.it was found that individuals’ total efforts were much higher than the group efforts. 2. They averaged 138. super-ordinate goals and team rewards. the individual average dropped down still lower68. other factors remaining the same. supportive environment. 1. Therefore. and attitudes. skills which are complementary to the team requirement and understanding of one’s own role as well as roles of other members. individual members do not contribute to the fullest extent. These factors are skills and role clarity. he may tend to affect others because of chain reaction just like a rotten apple injures its companions. If the organizational climate is not in tune with high achievement. team members may not show high degree of enthusiasm and they will use only a part of their skills in performing the jobs. group efforts tend to slacken. 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. When the division of work cannot be accomplished properly and individual efforts are hard to determine. Dropping of average output in group efforts indicates that some members of the group were not contributing as much as they did individually. understanding of roles helps members to meet the requirement of one another thereby solving the problems which the team faces.6 pound of pressure while tugging on the rope. In the above paragraph.
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
2. 3. . though. It helps developing communication within the group and inter-group and overcoming many psychological barriers that block communication flow. this has been a subject to which change efforts have been directed. 4. Once the causes of the difficulty have been identified.organization’s outcomes. monitoring. structure. In spite of these problems. It helps in developing effective interpersonal relationships by stimulating the group members for that. and how it believes the other group perceivers it. there have been calls for combining team-building with organization behaviour modification approaches. However. It improves the organization’s problem-solving and decision-making ability. are not given adequate attention. it is not that effective in isolation. Although there are several approaches for improving intergroup relations. listening. Therefore. and perceptions that groups have of each other. stereotypes.. Team-building becomes a complicated exercise when there is frequent change in team members. One such suggestion is to use a task hierarchy to reinforce the team as it progresses up a behaviour skill hierarchy (for example. team-building contributes to the organizational performance in the following manner: 1. In general. one of the more Popular methods emphasize problem solving. As a result. each group meets independently to develop lists of its perception of itself. The groups then share their lists. and feedback skills). 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. 2. in different degrees. However. and the groups look for the causes of the disparities. team-building has been termed as one-sided effort and it suffers from the following limitations: 1. the other group. In this method. the groups can move to the integration phase – working to develop solutions that will improve relations. team-building has a positive outlook. Differences are clearly articulate. after which similarities and differences are discussed. It focuses only on work groups and other major organizational variables such as technology.7 Inter-group Development A major area of concern is OD is the dysfunctional conflict that exists between groups. etc. communicating. It seeks to change to attitudes.
employees of the organization. presentations. enabling the client to let off steam: as the ignition to spark action. 4. He has to educate people on the need and importance o change using a variety of methodologies – lectures. as the accelerator to build up momentum. changing (intervening) and refreezing.9 Role of Change Agents The change agent may play different roles according to the need of organization development . but one thing he/she is not the driver”. culture. may be more thoughtful (and possibly cautious) because they to live with the consequences of their actions. Because they are from the outside these individuals an offer can offer an objective perspective often unavailable to insiders. or outside consultants. group discussions. According to Curtis Mial: “The Consultant may serve as the exhaust value.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. For major change efforts. In contrast. internal staff specialists or managers when acting as change agents. can now be created for further diagnosis and to begin to formulate possible alternative actions that will improve relations. . are disadvantaged because they usually have an inadequate understanding of the organization’s history. however. as the shock absorber when the going is rough. films. with members from each of the conflicting groups. Outside consultants. Trainer A change agent needs to be a trainer and educator.Subgroups. operating procedures. or as fog lamp when the future is hazy. and personnel. role-plays and instruments. internal management often will hire the services or outside consultants to provide advice and assistance. cases and experiential learning etc. The consultant may fulfill a variety of functions. as the radiator absorbing some of the heat of the controversy. The trainer role is most widely and intensively used at all stages of a change project: unfreezing. as the break for too quick action.8 Change Agents Change agents: Can be managers or nonmanagers. 4. 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.
group. 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. 4. 2. Self Assessment Questions 1. Grid training focuses on individuals and groups to assess their own strengths and weaknesses. Grid Training was developed by –––––––––––– 3. team-work does not necessarily spurt group efforts 4.Training is required for enhancing knowledge. It focuses on skills. feedback of information. attitudes and beliefs. knowledge and processes necessary for effectiveness at the individual. inter-group and total organization levels. The first step in survey feedback is ______ usually by a consultant based on a structured questionnaire. Survey feedback usually proceeds with sequential activities involving data collection. skills and change in behavior.11 Terminal Questions 1. Data collection. Sensitivity training focuses on small group ranging from ten to twelve. Useful hypothesis are to be formulated and tested. Training is used both in ‘content orientation’ and process orientation’. In process consultation. 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. 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. generation of new behavioral science knowledge. widely accepted and applied OD intervention for organizational improvement. What is Grid Training? How does it help in improving individual performance in an organization? 2. What is survey feedback as an intervention of OD? How does it provide base for other OD interventions? . ________is antithesis of synergy in team-work which suggests that people working together on a common task may actually decrease their individual efforts.10 Summary OD intervention strategies are various activities which a consultant and client organization performs for improving organizational performance. Teambuilding is most important. diagnosis. developing action plans based on feedback and follow-up.
1 Introduction Objectives 5.6 4.2 Definitions and . Refer section 4. MU0002-Unit-05-Values. Refer section 4. Refer section 4. Beliefs in Organization Development Unit-05-Values. What is team-building? What are the stages of life cycle of a team? 4. and Beliefs in Organization Development Structure: 5.12 Answers to SAQs and TQs SAQs: 1.3. Assumptions. Refer section 4.2 3. Social loafing Answers to TQs: 1. Explain Change agents and discuss the role of change agents in detail. 3. Blake and Mouton.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Assumptions. 4. Data collection 2.4 2.
1 Introduction A set of values. · Give the statement of OD values and assumptions.5.4 Early Statements of OD Values and Assumptions 5.6 Summary Self Assessment Questions 5. beliefs and assumptions. shaping the goals and methods of the field and distinguishing OD from other improvement strategies.5. 5.7 Terminal Questions 5.3 Chronology of Events in Management and Organization Thought 5. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers. . · State the implications of OD values and assumptions. beliefs and assumptions. it is a cognitive fact for the person.5. and beliefs constitutes an integral part of organization development. Most of these beliefs were formulated early in the development of the field. Objectives: After studying this unit. and they continue to evolve as the field itself evolves.5 Implications of OD Values and Assumptions 5. you will be able to: · Explain the meaning of values.2 Implications for Dealing with Groups 5. assumptions. · List the chronology of events of values.1 Implications for Dealing with Individuals 5.2 Definitions A belief is a proposition about how the world works that the individual accepts as true.5.3 Implications for Designing and Running Organizations 5.8 Answers to SAQs and TQs 5.
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. reason." or slacking off. dishonesty). treat people with respect and dignity. and the like. optimistic. OD values tend to be humanistic. Democratic values assert the sanctity of the individual. and that rationality.g. and beliefs provide structure and stability for people as they attempt to understand the world around them. Major ingredients of the zeitgeist that influenced OD values and assumptions are presented here in a brief chronology. Values. Piece-rate pay systems were designed to increase motivation and to prevent "soldiering. Humanistic values proclaim the importance of the individual: respect the whole person. and democratic. Optimistic values posit that people are basically good. As these ingredients accumulated. the human relations movement. increasing awareness of the dysfunctions of bureaucracies. or spirit of the time. Simple. . repetitive tasks minimized the skills required to do the job.. and beliefs are all cognitive facts or propositions.Values are also beliefs and are defined as: "Beliefs about what is desirable or ‘good’ (e. research on the effects of different leadership styles. that progress is possible and desirable in human affairs. and the need for justice through the rule of law and due process. free speech) and what is undesirable or ‘bad’ (e. and goodwill are the tools for making progress.. the importance of fair and equitable treatment for all. relatively unexamined beliefs accepted as the truth. 5. and assumptions being." Assumptions are beliefs that are regarded as so valuable and obviously correct that they are taken for granted and rarely examined or questioned. Evidence for the validity of these values and their supporting assumptions comes from many sources – the Hawthorne studies. assumptions. view all people as having the potential for growth and development. Thus. Expert engineers and supervisors designed each task and ensured it was done correctly. assumptions. the laboratory training movement. Values and assumptions do not spring full grown from individuals or societies they are formed from the collective beliefs of an era-the zeitgeist.g. greater understanding of individual motivation and group dynamics. strongly held. repetitive tasks in an attempt to find "the one best way" to do each job. values. they were fashioned into a coherent value foundation for the theory and practice of organization development. assume that everyone has intrinsic worth. the clash between fascism and democracy in World War II. the right of people to be free from arbitrary misuse of power. with values being beliefs about good and bad. Taylor’s methods quickly swept the country and the world as the way to organize work.
and rigid procedures would create a well-oiled human machine called the organization. Research by Lewin. a management theorist and astute observer of labourmanagement relations. by Roethlisberger and Dickson in 1939. and practice since the late 1920s have focused on the shortcomings of these two paradigms and how to overcome the limitations. A strong hierarchy of authority. wrote an article on “The Giving of Orders” advocating participative leadership and joint problem-solving by labour and management. extensive division of labor. authoritarian leadership caused dependency. Barnard viewed organizations as social systems that must be effective (achieve goals) and efficient (satisfy the needs of employees). Group Dynamics (1940) – The scientific study of groups using experimental research methods-was launched by Kurt Lewin and his students. but also contained serious flaws that led to unintended consequences. Democratic leadership seemed to bring out the best in the groups. most efficient way to organize people. People were not cogs. and by Homans in 1950 profoundly and irreversibly affected people’s beliefs about organizational behaviour. . People came to work as whole people. impersonal rules. much of the research. Some early experiments were conducted in the late 1930s. The Famous Hawthorne Studies (1927 to 1932) were conducted at the Hawthorne plant of Western Electric Company. Mary Parker Follett (1926). In a sense. These approaches possessed many desirable features. Lippitt (1939). Reports on these studies by Mayo in 1933 and 1945. theory. ‘The Functions of the Executive’ by Chester 1. His acceptance theory of authority proposed that authority derives from the willingness of subordinates to comply with directions rather than from position power. apathy. and White demonstrated that democratic leadership was superior to authoritarian leadership and laissez-faire leadership in affecting group climate and group performance. Group norms had more powerful effects on productivity than economic incentives. 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. aggressiveness and poor performance. The research demonstrated the primacy of social factors on productivity and morale. Much of her career was devoted to finding ways to reduce adversarial relationships between workers and management. and the supervisor determined their performance. The great German sociologist Max Weber (1922) introduced the concept of “bureaucracy” as the best. the work environment. their feelings and attitudes about the work. repetitive jobs left them feeling alienated and dispirited. Their simple. Barnard (1938) presented insights from his experiences as President of the New Jersey Bell Telephone Company. organizations were not machines.
greater attention to workers’ social needs. Motivation and Personality by Abraham Maslow (1954) presented a new view of human motivation. Laboratory training taught people how to improve interpersonal relations. are self-centered. higher-level needs become dominant. This article introduced the concept of organizations as sociotechnical systems. Humanistic and democratic values suffused the movement. dislike responsibility. The Hawthorne Studies (1940s to 1960) spawned the human relations movement that was in full flower from the 1930s to the 1960s. and a general “humanizing” of the workplace. Those who subscribe to Theory X assume that people are lazy. Lester Coch and John R. Rogers’ focus on effective interpersonal communications was applicable to superior-subordinate relations. caring social climate. Eric Trist and Ken Bamforth of the Tavistock Clinic (1951) published the results of their work in British coal mines. These years witnessed the beginnings of the laboratory training movement (1946 and 1947).” 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. Douglas McGregor wrote ‘The Human Side of Enterprise’ (1960) in which he described his famous Theory X and Theory Y assumptions. P. which holds that individuals have within themselves the capacity to assume responsibility for their behaviour and mental health when provided with a supportive. increase self-understanding. “Overcoming Resistance to Change. healthy adults. Ken Benne and Paul Sheats (1948). training in interpersonal skills for supervisors. Carl Rogers’ Client-Centered Therapy (1951) demonstrated the efficacy of non-directive psychotherapy. and understand group dynamics. French’s (1948) article. 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. The human relations movement advocated participative management. lack ambition. . Chris Argyrif’s Personality and Organization (1957) was the first of several books in which he stated that there is an inherent conflict between the needs of organizations and the needs of mature. The theory postulated that when lowerlevel needs are satisfied. 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. proposed that the leadership functions of a group should be shared between the leader and group members and showed how that could be done. a direct precursor of OD. pioneers in laboratory training.
These six books presented the theory. ‘The Social Psychology of Organizations’ by Daniel Katz and Robert L. theory. . We will examine three early statements regarding OD values that had a significant impact on the field. This leadership style was contrasted with an authoritarian. and human resource practices to allow individual potential to be released. In an environment of slow change.indifferent to the organization’s needs. an organic organization form is preferred. this book popularized Maslow’s motivation theory. resist change. and shares decision-making with the work group. goal-oriented. a mechanistic organization structure may be appropriate. and observations utilized by OD practitioners. Burns and Stalker (1961) described two very different forms of organization structuremechanistic and organic. and authoritarian leadership gave way to increasing doubts about these organizational practices as theory and research pointed up their limitations. Kahn (1966) presented the first comprehensive exposition of organizations as open systems. and introduced practicing managers to the concepts of need hierarchy and self-actualization. bureaucracy. humanistic. optimistic. Values have always been an integral part of OD. and negative consequences. and democratic. The task of management is to change organizational structures. the initial enthusiasm for scientific management. dysfunctions. This chronology captures most of the significant influences from research. management practices. Organic structures encourage decentralized decision making and authority. one-on-one leadership style. to assume responsibility. Those who subscribe to Theory Y assume that people have the potential to develop. in an environment of high change. as we have said.” (1969) a set of six little books on OD by prominent practitioners. In addition to presenting Theory X and Y. practice. and values of the field. organization development practitioners formulated a set of values and assumptions regarding people. summarized the state of organization development a decade or so after its inception. To summarize the intellectual climate of this period. Rensis Likert’s ‘New Patterns of Management’ (1961) presented data and theory showing the overwhelming superiority of a democratic leadership style in which the leader is group oriented. and greater individual autonomy. groups. open communications. and organizations that is. The Bennis and Beckhard quotations come from their books in the Addison-Wesley Six-Pack. The Addison-Wesley Publishing Company “OD Six-Pack. Tannenbaum and Davis presented their ideas in an article appearing in Industrial Management Review. and need to be led. and to pursue organizational goals if given the chance and the social environment to do so. Out of this zeitgeist.
Here is his list." Mechanical systems insist on "strict division of labour and hierarchical supervision" while organic systems foster "multi-group membership and responsibility. Therefore. and unprincipled power. compromise. Rather than the usual bureaucratic methods which rely mainly on suppression.Writing in 1969. · Development of organic rather than mechanical systems. The earlier work by Tom Burns and G. Bennis clarified some of the salient differences between mechanical systems and organic systems." Mechanical systems encourage "centralized decision-making" while organic systems encourage "wide sharing of responsibility and control. the capacity for functional groups to work more competently. Another major player in the field was Richard Beckhard. · Development of more effective "team management. · Development of better methods of conflict resolution." 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. not individuals. The basic building blocks of an organization are groups (teams)." like pushing buttons. the basic units of change are groups. Warren Bennis proposed that OD practitioners (change agents) share a set of normative goals based on their humanistic/ democratic philosophy.” For example. . Through focused attention and through the collection and feedback of relevant data to relevant people. Stalker used the term “mechanistic” in contrast to “mechanical. This is a strong reaction against the idea of organizations as mechanisms which managers "work on." that is. · A shift in values so that human factors and feelings come to be considered legitimate. more rational and open methods of conflict resolution are sought. In his 1969 book he described "several assumptions about the nature and functioning of organizations" held by OD practitioners. He listed these normative goals as follows: · Improvement in interpersonal competence. · Development of increased understanding between and within working groups in order to reduce tensions. M. mechanical systems rely on "authority-obedience relationships" while organic systems rely on "mutual confidence and trust. 1. more choices become available and hence better decisions are made.
director of organization development. . not the basis of managerial strategy. · Away from a view of individuals as fixed.2. 4. and confidence between and across levels. 6. "People support what they help create. Robert Tannenbaum. · Away from maskmanship and game-playing toward authentic behaviour. 5. a professor and Sheldon Davis. · Away from distrusting people toward trusting them. · Away from utilizing an individual primarily with reference to his or her job description toward viewing an individual as a whole person. · Away from walling off the expression of feelings toward making possible both appropriate expression and effective use. toward seeing them as being in process. 3. presented their view of OD values in a 1969 article. · Away from avoidance of negative evaluation of individuals toward confirming them as human beings. and individuals continuously manage their affairs against goals." People affected by a change must be allowed active participation and a sense of ownership in the planning and conduct of the change. One goal of a healthy organization is to develop generally open communication. · Away from resisting and fearing individual differences toward accepting and utilizing them. rather than in a particular role or level of hierarchy. Decision-making in a healthy organization is located where the information sources are. mutual trust. · Away from avoiding facing others with relevant data toward making appropriate confrontation. sub-units of organizations. 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. An always relevant change goal is the reduction of inappropriate competition between parts of the organization and the development of a more collaborative condition. Organizations. Controls are interim measurements. · Away from use of status for maintaining power and personal prestige toward use of status for organizationally relevant purposes. They asserted that an important shift in values was occurring and that this shift signaled a more appropriate and accurate view of people in organizations.
· Away from a primary emphasis on competition toward a much greater emphasis on collaboration. permit failure. but in the 1950s and 1960s they represented a radical departure from accepted beliefs and assumptions. challenge. remove obstacles and barriers. 5. and so forth were seldom espoused and rarely implemented in the vast majority of organizations at that time. 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. appropriate uses of power. encourage risk-taking. authentic interpersonal relations. participation and contribution by all organization members. give autonomy. These values and assumptions may not seem profound today.1 Implications for Dealing with Individuals Two basic assumptions about individuals in organizations pervade organization development. 5. The implications of these two assumptions are straightforward: Ask. Beliefs such as trust and respect for the individual. and arbitrary management practices as well as the dysfunctions of bureaucracies. and reward success. the legitimacy of feelings. set high standards.5. autocratic. a greater contribution to attaining organization goals than most organizational environments permit. The second assumption is that most people desire to make.5 Implications of OD Values and Assumptions Let us examine specific assumptions and their implications for organization leaders and members. listen. The humanistic values prompted a search for better ways to run organizations and develop the people in them. support. 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 view of process work as being unproductive effort toward seeing it as essential to effective task accomplishment. Most people want to develop their potential. and organizations? 5. open communication.2 Implications for Dealing with Groups . decentralized decision making. The people doing the work are generally experts on how to do it and how to do it better. and are capable of making. collaboration and co-operation. groups. A tremendous amount of constructive energy can be tapped if organizations realize and act on these assumptions. We answer the question: What are some of the implications of OD assumptions and values for dealing with individuals. give responsibility.5.· Away from avoidance of risk-taking toward willingness to risk. The democratic values prompted a critique of authoritarian.
Dealing appropriately with feelings and attitudes increases the level of interpersonal trust. the assumption is that many attitudinal and motivational problems in organizations require interactive and transactional solutions. and interpersonal communication. They cannot meet the demands of the marketplace.Several assumptions relate to the importance of work teams and the collaborative management of team culture. To do this. leaders should invest in groups: Invest the time required for group development. and so on.3 Implications for Designing and Running Organizations Clearly. 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. emphasis on topdown directives. facilitation. Let teams flourish because they are often the best way to get work done and. including peers and boss. in which one side wins and the other side loses. Second. are dysfunctional . group members should assist the leader with the multiple roles required for group effectiveness. a church or club group. Finally. are the best way to satisfy social and emotional needs at work. What occurs in the work group. formalized cross-functional communication. adherence to the chain of command. 5. and E can support these changes. and usually with more than one group. grouping by specialized function. Third. Implications of these assumptions are several. First. invest training time and money to increase group members’ skills. a growing awareness that “win-lose” organizational situations. support. D. One implication is that group members should receive training in group effectiveness skills such as group problem-solving and decision-making.5. in addition. greatly influences feelings of satisfaction and competence. experimenting with new organization structures and new forms of authority is imperative. not individuals. and co-operation within the group. Such problems have the greatest chance of constructive solution if all parties in the system alter their mutual relationships. one of the most psychologically relevant reference groups for most people is the work group. such as a work group. Therefore. Hence. conflict management. And because suppressed feelings and attitudes adversely affect problem-solving. It is especially important that leaders adopt a team leadership style. leaders need to give important work to teams. By implication. traditional hierarchical forms of organization-fairly steep pyramid. 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. including how persons C. not a one-on-one leadership style. at both the formal and informal levels. This skill is a trainable one. The question becomes not how A can get B to perform better. Frequently the challenge is broader. most people wish to be accepted and to interact co-operatively with at least one small reference group. most people are capable of making greater contributions to a group’s effectiveness and development. and so on-are obsolete. the family. invest energy and intelligence in creating a positive climate. Also. personal growth. group members should be encouraged to learn to deal effectively with positive and negative feelings. and job satisfaction. Another assumption is that the formal leader cannot perform all the leadership and maintenance functions required for a group to optimize its effectiveness. In addition.
Values are also beliefs.6 Summary The field of OD rests on a foundation of values and assumptions about people and organizations. The belief that people can grow and develop in terms of personal and organizational competency tends to produce that result. By implication. 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. Chronology of events in management and OD tremendously influenced OD practitioners. and empowering. Creating co-operative rather than competitive organizational dynamics is a primary task of the organization’s leaders. and on the other hand are high performing in terms of productivity.over the long run and highlight the need for a “win win” attitude. organizing structures. Values. The belief that people are important tends to result in their being important. it is possible to create organizations that on the one hand are humane. beliefs and assumptions are cognitive facts. Evidence for this assumption comes from numerous examples where “putting people first” paid off handsomely in profits and performance. Still. they change over time. Finally. they are the source of productivity and profits and should be treated with care. developmental set of assumptions about people is likely to reap rewards beneficial to both the organization and its members. These OD values were considered revolutionary when they emerged in the 1950s. values are never static. Such an orientation creates a self-fulfilling prophecy. but are widely accepted today. an optimistic. Self Assessment Questions . 5. A key assumption in organization development is that the needs and aspirations of human beings are the reasons for organized effort in society. This notion suggests it is good to have a developmental outlook and seek opportunities in which people can experience personal and professional growth. developmental. These beliefs help to define what OD is and guide its implementation. Values. societal. and ways to optimize human potential. optimistic and democratic. The rapid technological. assumptions and beliefs help to define what OD is and guide its implementation. and organizational changes taking place assure that tomorrow will bring new definitions of what is "true" and new beliefs about what is "good. The implication is that people are an organization’s most important resource. Concluding Comment: The field of organization development rests on a foundation of values and assumptions about people and organizations." as behavioural scientists and managers continue to develop better understanding of authority structures. quality of output. and profitability. OD values tend to be humanistic.
beliefs and assumptions. and assumptions are all –––––––––– facts. W. Values. State the assumptions of Theory X and Theory Y. values. Taylor 3. 5. Refer section 5.7 Terminal Questions 1. The outcome of –––––––– was that people were not cogs and organizations were not machines. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. Bureaucracy 4. F. 3. Refer section 5. What was the outcome of Hawthorne Experiments? 4. 3. Douglas McGregor Answers to TQs: 1. 5. Cognitive 2. 2.8 Answers to SAQs and TQs SAQs: 1.2 2. Write a note about F.W.1. Hawthorne experiments 5. Taylor’s principles of scientific management. 5. The concept of –––––––––– was introduced by MaxWeber.3 3. 4. beliefs. Define concepts. _______________ gave theory X and theory Y. __________ is associated with scientific management.3 . 2. Refer section 5.
3 Copyright © 2009 SMU Powered by Sikkim Manipal University .1 Kurt Lewin and Friends 6.4 Open Systems Thinking 6.3.1 Introduction Objectives 18.104.22.168 Congruence among System Elements 6.3 Systems Theory 6.3 The Burke-Litwin Model of Organizational Change 6.3 5.3 Socio-technical Theory and Open Systems Planning 6.2 Models and Theories of Planned Change 6.1 The Nature of Systems 6.2 Beyond the Quick Fix 6.3.2. Refer section 5.4 Participation and Empowerment .4.3. Refer section 5. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.4 Porras and Robertson Model of Organizational Change 6.2.2.
We will examine the following concepts: .11 Terminal Questions 6. · Explain normative-re-educative strategy of changing The knowledge base of OD is extensive and is constantly growing.1 Introduction This unit describes the foundations of organization development theory and practice. · Realize the importance of teams and teamwork. · Explain systems theory. · Explain the terms ‘participation’ and ‘empowerment’. you will be able to: · Explain various models and theories of planned change.5 Teams and Teamwork 6.9 Action Research Self Assessment Questions 6.12 Answers to SAQs and TQs 6.8 Applied Behavioural Science 6. Here we describe what we believe are the most important underpinnings for the field.6 Parallel Learning Structures 6.6.7 A Normative – Re-educative Strategy of Changing 6. · Describe the parallel learning structures. art and science which form the knowledge base upon which OD is constructed. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs. Objectives: After studying this unit. In this discussion.10 Summary 6. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning.
For example. 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. Here we provide a framework for thinking about planned change by exploring several models from the literature. Although morale may get a little better or a little worse on occasion. it generally hovers around some equilibrium point that is the resultant in a field of forces. Several recent theories show great promise for increasing our understanding of what happens and how it happens in planned change. That is. 6. This concept is useful for thinking about the dynamics of change situations. we can think of the level of morale in that plant as a resultant equilibrium point. some forces pushing toward higher morale and some pushing toward lower morale. The development of models of planned change facilitated the development of OD. The production level tends to remain fairly constant because the field of forces remains fairly constant.· Models and theories of planned change · Systems theory · Participation and empowerment · Teams and teamwork · Parallel and learning structures · A normative-re-educative strategy of changing · Action research 6. in words or pictures. He suggested that change is a three-stage process: . The first idea states that what is occurring at any point in time is a resultant in a field of opposing forces. the important features of some phenomenon. Lewin’s second idea was a model of the change process itself. describe those features as variables. Likewise. and specify the relationships among the variables.2. with some forces pushing toward higher levels of production and some forces pushing toward lower levels of production.2 Models and Theories of Planned Change Organization development is planned change in an organizational context. the status quo-whatever is happening right now-is the result of forces pushing in opposing directions. Models and theories depict. With a technique called the force-field analysis. we can think of the production level of a manufacturing plant as a resultant equilibrium point in a field of forces. Planned change theories are rudimentary as far as explaining relationships among variables. but pretty good for identifying the important variables involved.1 Kurt Lewin and Friends Kurt Lewin introduced two ideas about change that have been influential since the 1940s.
Refreezing the desired behaviour requires establishing a new field of forces to support the new behaviour. mentor. he must move. believe that cigarette smoking is bad for him and that he should stop smoking. Finally. which motivate the person to change. The three-stage model says he must first unfreeze the old behaviour of smoking. That is. Lewin’s three-stage model is a powerful tool for understanding change situations.Unfreezing the old behaviour (or situation). judge things. the non-smoking behaviour must become permanent. Next. . Significant relationships. feel things. that is.non-smoking becomes the new equilibrium point. b. Identifying with a new role model. In stage 1. Edgar Schein took this excellent idea and improved it by specifying the psychological mechanisms involved in each stage. the person must develop a sense of psychological safety in order to replace the old behaviours with new behaviours. change his behaviour from being a smoker to being a non-smoker. Take the example of a man who smokes cigarettes and wants to quit. and react to things differently based on a new point of view obtained through a. etc. b. The total personality and self-concept. Disconfirmation or lack of confirmation b. Provision of psychological safety Stage 2: Changing through Cognitive Restructuring: Helping the client to see things. disconfirmation creates pain and discomfort. Refreezing the behaviour at the new level. Creation of guilt or anxiety c. that is. Scanning the environment for new relevant information Stage 3: Refreezing: Helping the client to integrate the new point of view into a. unfreezing. Change entails moving from one equilibrium point to another. moving to new level of behaviour. A Three-Stage Model of the Change Process: Stage 1: Unfreezing: Creating motivation and readiness to change through a. which cause guilt and anxiety. change will not occur. But unless the person feels comfortable with dropping the old behaviours and acquiring new ones.
Phase 4: Examining alternative routes and goals. establishing goals and intentions of action. refreezing. That is. This phase corresponds to Lewin’s unfreezing phase. and 5 correspond ro Lewin’s moving phase. stabilizing the changes requires testing to see if they fit-fit with the individual. Similar models have been developed by Kolb and Frohman and by Burke. Jeanne Watson. the person undergoes cognitive restructuring. and attitudes. These "road maps" are useful for thinking about change. and Bruce Westley. 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. Their seven stages are as follows: Phase 1: Developing a need for change. Phases 3. . They expanded the three-stage model into a seven-stage model representing the consulting process. This phase corresponds to Lewin’s refreezing phase.2 Beyond the “Quick Fix” A comprehensive change model by Ralph Kilmann specifies the critical leverage points for organizational change. This seven-stage model lays out the logical steps involved in OD consulting. Phase 6: Generalizing and stabilizing change.2. and fit with the individual’s social surroundings.In stage 2. terminating the client-consultant relationship. Phase 2: Establishing a change relationship. moving. Phase 3: Clarifying or diagnosing the client system’s problem. 6. Phase 7: Achieving a terminal relationship. This model has five sequential stages: 1) Initiating the program. identifying with ex-smokers and learning about the health risks of smoking. is to integrate the new behaviours into the person’s personality. The primary task in stage 3. This motivating evidence is gained by. Phase 5: Transforming intentions into actual change efforts. for example. The person acquires information and evidence showing that the change is desirable and possible. 4. In this phase a client system in need of help and a change agent from outside the system establish a working relationship. that is.
cause the organization to be successful. Interventions include training programs. problem-solving sessions. and willingness to change among members the conditions that must exist before any other improvement effort can succeed. . Diagnosing the problems requires a thorough analysis of the problems and opportunities facing the organization. information sharing." that. Change programs take from one to five years to complete.2) Diagnosing the problems. 4) Implementing the "tracks" 5) Evaluating the results. These problems and opportunities will be the targets of later interventions. called "tracks. Kilmann’s five tracks are: 1) The culture track. critique practices and procedures. communication. 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. Kilmann describes the five tracks: What does each track do for the organization? The culture track enhances trust. 3) Scheduling the "tracks". and so forth. Scheduling and implementing the "tracks" involve intervening in five critical leverage points. 3) The team-building track. when functioning properly. Initiating the program entails securing commitment from top management. The management-skills track provides all management personnel with new ways of coping with complex problems and hidden assumptions. 4) The strategy-structure track. and 5) The reward system track.
its identification of the five tracks as critical leverage points. First-order change goes by many different labels: transactional. The premise of the BurkeLitwin model is this: OD interventions directed toward structure. and so forth. The model distinguishes between organizational climate and organizational culture. and .3 The Burke-Litwin Model of Organizational Change The next model to be examined is the Burke-Litwin model of individual and organizational performance. One likes this model because of its comprehensive nature. radical. organizational culture is defined as deep-seated assumptions. with an increasing emphasis on second-order transformational change. Eastman Kodak. departments. TRW. In first-order change. An OD consultant implements the tracks in a phased sequence. and beliefs that are enduring. These perceptions are relatively easy to change because they are built on employees’ reactions to current managerial and organization practices. adaptive. Ford General Electric. developed by Warner Burke and George Litwin. values. In second-order change. Second-order change goes by many different labels: transformational.2. The reward-system track establishes a performance-based reward system that sustains all improvements by officially sanctioning the new culture. This model shows how to create first-order and second-order change (which the authors call “transactional change” and “transformational change”). the nature of the organization is fundamentally and substantially altered – the organization is transformed. and Xerox with good results. and all resources with the new strategic direction. On the other hand. or continuous change.The strategy-structure track develops either a completely new or a revised strategic plan for the firm and then aligns divisions. General Foods. then moving to the management skills track. OD programs are directed toward both first. or discontinuous change. Kilmann has tested his model at AT&T. and co-operative team efforts within and among all work groups.and second-order change. Organizational climate is defined as people’s perceptions and attitudes about the organizationwhether it is a good or bad place to work. beginning with the culture track. the use of updated management skills. work groups. friendly or unfriendly. and so forth. some features of the organization change but the fundamental nature of the organization remains the same. then moving to the team-building track. revolutionary. evolutionary. Changing culture is much more difficult than changing climate. incremental. and difficult to change. 6. Westinghouse. hard-working or easy-going. jobs. often unconscious. management practices. and its holistic view of organization change and development.
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. Changing structure.systems (policies and procedures) result in first-order change." Transactional leadership embodies a fair exchange between leader and follower that leads to "normal" performance. Following figure shows the factors involved in first-order (transactional) change. in turn. We will do so in several steps. Transactional leadership is required to make this change in organizational climate. which change motivation and. Transformational leadership is required for causing second-order change. interventions directed toward mission and strategy.1: The Transactional Factors Involved in First – Order Change . and organization culture result in second-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. 6. individual and organizational performance. management practices. and systems cause changes in work unit climate." Transformational leadership embodies inspiration which leads to new heights of performance. Now let us look at the Burke-Litwin model. The model also makes a distinction between transactional and transformational leadership styles. Fig. Transactional leadership is sufficient for causing first-order change. Transactional leaders are "leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements. leadership.
that is.” We consider the Burke-Litwin model to be a significant advance in thinking about planned change. mission and strategy. The second set of dynamics is concerned with processes of human transformation. and systems produce transactional change or change in organizational climate. Burke says: “Thus there are two distinct sets of organizational dynamics. structure. One set primarily is associated with the transactional level of human behaviour or the everyday interactions and exchanges that create the climate.Fig. The bottom half of figure displays the factors involved in transactional change. which produces changes in individual and organizational performance.2: The Transformational Factors Involved in Second – Order Change On the other hand. These factors are powerful enough to change the culture fundamentally. as shown in the above figure. leadership styles. . Interventions directed toward management practices. determines the kind of change required (transactional or transformational). and then targets interventions toward factors of the organization that produce the desired change. The OD practitioner sizes up the change situation. and organization culture. The top half of figure displays the factors involved in transformational change. 6. and organization culture produce transformational change or fundamental change in the organization’s culture. Interventions directed toward these factors transform the organization and cause a permanent change in organization culture. The above two figures together yield the full Burke-Litwin model shown in the following figure. Research by Burke and his students suggests the model performs as intended. sudden "leaps" in behaviour. we must change mission and strategy. if we want to cause second-order (transformational) change. Burke and Litwin propose that interventions directed toward leadership. these transformational processes are required for genuine change in the culture of an organization. To summarize. These factors are able to change the climate.
rewarded). and technology.Fig. and rewards will affect organizing arrangements. The premise modeled here is that work setting factors influence organizational members’ cognitions (they learn what is expected. which in turn lead to individual and organizational improvements. strategies. 6. social factors. required. it is described in a discussion by Porras and Peter Robertson. management style. according to Porras and Robertson.4 Porras and Robertson Model of Organizational Change Jerry Porras and his associates developed a model of how organization development works. This model shows how OD interventions can be linked to factors in the work setting.3: The Burke Litwin Model of Organizational Performance and Change 6.4: Organizational Work-Setting Factors This model is extremely useful for OD practitioners and organizational leaders. Interventions that focus on culture. The basic premise is that OD interventions alter features of the work setting causing changes in individuals’ behaviours. Fig. 6. and interaction processes will affect social factors. OD interventions that focus on goals.2. Organizational change occurs only when individuals change their behaviour. The work setting plays a central role in this model and consists of four factors: organizing arrangements. Following figure shows the work setting in the larger organizational framework. For example. Keep this framework in mind as you read the units on OD interventions because all interventions target one or more factors shown in figures. which determine organizational performance and individual development. . It is how OD works. which influence on-the job behaviours. Interventions that focus on job design and work flow design will affect technology. and these behaviour changes occur when elements of the work setting have been modified by OD interventions. physical setting.
that is the system. This section explains systems theory. Fagen defines system as "a set of objects together with relationships between the objects and between their attributes.Fig." Von Bertalanffy refers to a system as a set of "elements standing in interaction. which views organizations as open systems in active exchange with their environment. Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950.5: A Change-based Organizational Framework 6. one begins by identifying the individual parts and then seeks to understand the nature of their collective interaction.system. and interrelatedness among elements in a set that constitutes an identifiable whole or gestalt. The words ‘arrangement’ and ‘interrelated’ describe interdependent elements forming an entity. or subsystems." Hanna says: "A system is an arrangement of interrelated parts. interconnectedness. 6." Kast and Rosenzweig define system as "an organized. . system denotes interdependency. Thus. and Katz and Kahn were the first to apply open systems theory to organizations in 1966. unitary whole composed of two or more interdependent parts. and shows how systems theory enhances the practice of OD. Systems theory is one of the most powerful conceptual tools available for understanding the dynamics of organizations and organizational change. describes the characteristics of systems. when taking a systems approach." To summarize. components.3 Systems Theory A second foundation of organization development is systems theory. and delineated by identifiable boundaries from its environmental supra.
information. dynamics. These purposes must align with purposes or needs in the environment. and they export products to the environment in the form of outputs. Organizations are open systems. or transformation processes that change the inputs.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. people. money. the organization will cease to exist. Here.1 The Nature of Systems The nature. They do something to the inputs via throughput. Therefore. A good rule of thumb for drawing the boundary is that more energy exchange occurs within the boundary than across the boundary. and if the environment does not want these outputs. Systems take inputs from the environment in the form of energy. and characteristics of open systems are well-known. we examine the characteristics of open systems drawing OD expositions by Katz and Kahn and Hanna. conversion. and what is outside the boundary is the environment.3. . Boundaries of open systems are permeable. Organizations achieve negative entropy when they are able to exchange their outputs for enough inputs to keep the system from running down. Open systems have purposes and goals. What is inside the boundary is the system. the organization’s purposes will be reflected in its outputs. resources. and energy between system and environment. All open systems are input-throughput-output mechanisms. the reasons for their existence. Every system is delineated by a boundary. 6. For example. raw material and so on.6. in that they permit exchange of information. Fig. studying open systems leads to a good understanding of organizations. Each of these three system processes must work well if the system is to be effective and survive.
the principle that there are multiple ways to arrive at a particular outcome or state – systems have multiple paths to goals. 6. it will signal whether the environment needs and/or wants buggy whips. if a rocket ship traveling to the moon strays off its trajectory. it receives information to that effect in the form of negative feedback. Another characteristic of systems is equifinality. For example.Information is important to systems in several ways. As Katz and Kahn say: “The basic principle is the preservation of the character of the system." Here is another example of negative and positive feedback. and complex over time. Negative feedback tells you if you are on track with your scheduled production output. For example. organizations in the fast-food industry pay a lot of attention to information about their industry-nutrition. aerospace. eating fads. and the like. Subsystems exist within larger systems. This model depicts the organization as an input-throughput-output system.2 Congruence among System Elements David Nadler and associates at Delta Consulting Group developed the congruence model for understanding organizational dynamics and change. and the system adjusts to a new goal. Feedback is information from the environment about system performance. It is sometimes called deviation-amplifying feed back. If the mission (target) changes. negative and positive. Say your company makes buggy whips. but most are not useful. and the production plan calls for 100 buggy whips per month. competitors. and makes a course correction. that information is called positive feedback. specialized. say. Systems "code" useful information and incorporate it. increased integration and co-ordination are necessary. Another characteristic of open systems is steady state or dynamic homeostasis. These subsystems can be arranged into a hierarchy of systems moving from less important to more important. and so on. "return to earth. differentiated. either internal or external. It is also known as deviation-correcting feedback. Systems are bombarded by all kinds of information: some are useful.” Also. systems tend to get more elaborated. Systems require two kinds of feedback. Positive feedback measures whether or not the purpose and goals are aligned with environmental needs. they usually ignore information about other industries such as electronics. Survival of the system is equally influenced by whether or not the targets themselves are appropriate. The usefulness of the two concepts is that they demonstrate that it is not enough to merely measure our outputs versus the intended targets. this process is called differentiation. Systems achieve a steady state or equilibrium point and seek to maintain this equilibrium against disruptive forces. while screening out other information. The three major input factors are: . With increased differentiation. By the same token. Negative feedback measures whether or not the output is on course with the purpose and goals. mining. however.3. Positive feedback comes from the environment.
performance will suffer. important events. the tasks people perform to create products and service markets people. and technology. 6. You can use this model to analyze organizations with which you are familiar. knowledge. knowledge." The premise is that alignment (harmony. . and the workforce’s expectations. and individual level. If the organization’s culture (informal organization) praises individual accomplishments and the work requires teamwork and collaboration. perceptions. and 2) Evaluating the "goodness of fit" or how well the elements "go together. performance will suffer. formal organization. which imposes constraints and opportunities about what the organization can and can not do. Elements of the organization per se are labeled strategy. unit/group level. and systems for performing the work." and which elements . processes. and informal organization. and how things really work (versus how they are supposed to work as defined by the formal organization). which includes formal structures. people. failures. fit) must be present among the system’s components’ for the organization to produce satisfactory outputs. If the strategy calls for entrepreneurial quickness and risk-taking and the formal organization is bureaucratic and highly centralized. if people don’t have the skills and knowledge required to do the work. such as capital.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. which includes the organization’s culture informal rules and understandings. Outputs are performance at the total organization level. Fig.1) The environment. what the organization is trying to accomplish and how it plans to do it. performance will suffer. and critical decisions that still influence behaviour today. and 3) History which consists of memories of past successes. 2) Resources available to the organization. For example. which components are "not functioning correctly. which includes skills. In a company that is performing poorly. work.
6. Hanna writes: In the late 1960s a small team of consultants led by James Clark.are poorly aligned? In companies showing outstanding performance. Systems models are essential for the practice of OD.KI Jayaram. 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. organizations must optimize both systems. multi-skilled teams. giving information and feedback to the people doing the work. that is. Open systems planning entails: 1) Scanning the environment to determine the expectations of external organizations and stake-holders. controlling variance at the source. To achieve high productivity and employee satisfaction. and . Another important application of systems theory in organization development is open systems planning. Fred Emery. and identifying core tasks help STS consultants structure organizations and tasks for maximum effectiveness and efficiency. training group members in multiple skills. Socio-technical systems theory was developed by Eric Trist.3. both realistic (likely to happen if the organization continues on its current course) and ideal (what the organization would like to see happen). two active segments of OD today. and information to the point of action.3 Socio-technical Systems Theory and Open Systems Planning Two major variations of open systems theory. A number of design principles have been developed to implement socio-technical systems theory. 2) Developing scenarios of possible futures. G. STS is the principal conceptual foundation for efforts in work redesign and organization restructuring. to the workers doing the job. Charles Krone.socio-technical systems theory (STS) and open systems planning (OSP)-play an important role in organization development. forming autonomous work groups. Their technology became known as Open systems Planning (OSP). 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. and others at the Tavistock Institute in the 1950s. High-performance organizations almost always use principles from socio-technical systems theory. especially autonomous work groups (self-regulated teams or self-direct teams). a social system and a technical system. and that changes in one system affect the other system. 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. Principles such as optimizing the social and technical systems.
and incidents are not viewed as isolated phenomena. it is extended broadly throughout the organization. according to Peter Senge. OD practitioners expect multiple effects. and systems thinking. therefore. Viewing organizations from this perspective has several consequences. not single effects. Senge believes that five disciplines must be mastered to create a learning organization: personal mastery. because most phenomena have more than one cause. This idea moves the practitioner away from analyzing historical events and toward examining contemporary events and forces. team learning. from their activities. events and forces. By enhancing each of the other disciplines. to change a system.4 Participation of Empowerment One of the most important foundations of organization development is a participation/ empowerment model. it continually reminds us that the whole can exceed the sum of its parts. Learning organizations can cope effectively with rapidly changing environmental demands.3. but seen in relation to other issues. events. For example.3) Developing action plans to ensure that a desirable future occurs. one changes the system. Fourth. from diagnosis to intervention to evaluation. this combination is often used in designing high-performance organizations. Without a systemic orientation. a systems approach encourages analysis of events in terms of multiple causation rather than single causation. according to field theory (Kurt Lewin). systems theory pervades the theory and practice of organization development.4 Open Systems Thinking Open systems thinking is required for creating learning organizations. systems thinking. 6. He says of systems thinking: “It is the discipline that integrates the disciplines. building shared vision. mental models. Second. the fifth discipline.” In conclusion. Third. fusing them into a coherent body of theory and practice. Most OD practitioners engaged in redesign projects use a combination of socio-technical systems theory and open systems planning. Of all these disciplines. there is no motivation to look at how the disciplines interrelate. And fifth. First. the forces in the field at the time of the event are the relevant forces for analysis. Participation in OD programs is not restricted to elites or the top people. 6. Increased participation and empowerment . issues. forces. changing one part of a system influences other parts. It keeps them from being separate gimmicks or the latest organization change fads. is the most important. not just its component parts.
called "organic. Quinn and Spreitzer conclude: “Empowerment. autonomous work groups. and give more power to more people. They must see themselves as having freedom and discretion. Researchers found that group dynamics work to overcome resistance to change. which is done by giving individuals the authority to make decisions. Robert Quinn and Gretchen Spreitzer found two vastly different views of empowerment. Participation enhances empowerment. and to be responsible. they must if personally connected to ." direct leaders to push decision-making lower in the organization. with its emphasis on risk-taking. the organic approach unleashes talent and energy in people that are best channeled by providing clear guidelines and boundaries. While management can create a context that is more empowering. They describe the organic view: "The other group of executives saw empowerment much differently. personal initiative. Research on group dynamics began in the 1940s and achieved exponential growth in the 1950s and 1960s." and "Have decisions made by those who are closest to the problem. involvement and participation energize greater performance. These pillars of OD practice are validated by both research and practice. and greatly enhance acceptance of decisions. treat those closest to the problem as the relevant experts." is a top-down delegation of decision-making with clear boundaries and strict accountability that increases managerial control. but rather a mind-set that employees have about their roles in the organization. team building. to exert influence. Empowerment meant trusting people and tolerating their imperfections. The entire field of OD is about empowerment. then. But both views contain valid ideas: for example.have always been central goals and fundamental values of the field. produce better solutions to problems. Rules of thumb such as "Involve all those who are part of the problem or part of the solution. is the more useful perspective. reduce stress levels. search conferences. increase commitment to the organization. For example. and the culture audit are all predicated on the belief that increased participation will lead to better solutions. The most important contrast between the two views involves the implicit but potentially volatile assumptions people make about trust and contro1. quality circles. To empower is to give someone power. One view. quality of work life programs. and change. This research demonstrated that most people desire increased involvement and participation. to contribute their ideas. Participation is a powerful elixir-it is good for people and performance. Participation is an especially effective form of empowerment. OD interventions are deliberately designed to increase involvement and participation by organization leaders and members. The other view. OD interventions are basically methods for increasing participation. Further. which they call "mechanistic." is bottom-up and less controlling. survey feedback. growth. and growth. They believed that it was about risk-taking. is not something that management does to employees. and generally make people feel better about themselves and their worlds. employees must choose to be empowered." These authors believe the organic view. and empowerment in turn enhances performance and individual well-being.
and relationships if they are to be effective. we examine the potential of teams and teamwork. and practice attest to the central role teams play in organizational success. crossfunctional "design-build" teams developed the Boeing 777. and capable of having an impact on the system in which they are embedded. recognition. confident about their abilities. 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.” 6. If the team. and team-related acronyms abound-SDTs (self-directed teams). A number of OD interventions are specifically designed to improve team performance. much individual behaviour is rooted in the socio-cultural norms and values of the work team. quality circles. to name just a few. STS (socio-technical systems). as a team. changes those norms and values. and explore ways to realize that potential. the effects on individual behaviour are immediate and lasting. The message of this section is that putting those empowered individuals into teams creates extraordinary effects on performance and satisfaction.5 Team and Teamwork A fundamental belief in organization development is that work teams are the building blocks of organizations. Teams at Motorola produced its bestselling cellular phones. systems. research. QCs (quality circles). Examples are team-building. Theory. teams at 3M generate the hundreds of innovations that keep 3M ahead of its competition. In this section. Fourth. Team Taurus developed Ford’s best-selling automobile. Third. processes. Teams are important for a number of reasons: First. HPWSs (high-performance work systems). Team Saturn produced the Saturn automobile. status. people must work together to accomplish them. teaming. Teams and teamwork are "in. the sum of the efforts of team members is far greater than the sum of the individual efforts of people working alone. "The evidence is abundantly clear: Effective teams produce results far beyond the performance of unrelated individuals. that is. teams create synergy. . and respectteams nurture human nature. teams satisfy people’s needs for social interaction. Teams and teamwork are part of the foundation of organization development. inter-group team-building. process consultation. the noun team has become a verb. Second. Teams and teamwork are among the "hottest" things happening in organizations today – gurus extol the virtues of teams. A second fundamental belief is that teams must manage their culture.the organization. HPOs (high-performance organizations). Synergy is a principal reason teams are so important.
help each other. When any one feature is lost. High-performance teams regulate the behaviour of team members. find innovative ways around barriers. temporary teams. 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. Investigators are discovering why some teams are successful while others are not. Grid OD and techniques such as role analysis technique. He uses examples from EDS (Electronic Data Systems). including collegiate football national champions. and the like. Team-building activities are now a way of life for many organizations. people are trained in group dynamics and group problem-solving skills. and responsibility charting. and others.parallel learning structures. Larson and LaFasto found eight characteristics always present: 1) A clear. Teams periodically hold team-building meetings. The net effect is that teams perform at increasingly higher levels. All these characteristics are required for superior team performance. autonomous. cross-functional teams. and set ever-higher goals. socio-technical systems programs. role negotiation technique. the crew of the USS Kitty Hawk. heart transplant surgical teams. Larson and LaFasto also discovered that the most frequent cause of team failure was letting personal or political agendas take precedence over the clear and elevating team goal. and that teamwork becomes more satisfying for team members. to determine the characteristics that make them successful. Tom Peters asserts in Liberation Management that cross-functional. Asea Brown Boveri. Larson and LaFasto studied a number of high-performance teams. . empowered teams are what the best organizations are using right now to outdistance the competition. These interventions apply to formal work teams as well as startup teams. Union Pacific Railroad. elevating goal 2) A results-driven structure 3) Competent team members 4) Unified commitment 5) A collaborative climate 6) Standards of excellence 7) External support and recognition Principled leadership. and individuals are trained as group leaders and group facilitators. that they achieve synergy. team performance declines.
normal hierarchical considerations become obsolete for these project teams-you could be the boss of one team. 6. and report to one of your subordinates on another team. If you don’t implement different norms and procedures. talking. you don’t have a parallel structure. What’s important is that people act in a way that promotes learning and adaptation. projects will be performed by teams. It isn’t the supplemental structure that’s important. and countless other organizations to demonstrate the ability of small project teams to produce high quality.Titeflex. and employees. Projects are the work of the future. engage in genuine inquiry and experimentation.” Parallel structures help people break free of the normal constraints imposed by the organization. and high accountability drive these project teams to outperform traditional organization structures on every measurable dimension.7 A Normative – Re-educative Strategy of Changing . and then leading the process. High responsibility. superior customer service. 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 acting differently than normally takes place at work. In essence. parallel structures are a vehicle for learning how to change the system.” The purpose of the collateral organization is to deal with "ill-structured" problems the formal organization is unable to resolve. and continuous learning. At Ford Motor Company. The quality of work life programs of the 1970s and 1980s used parallel structures composed of union leaders. Interestingly. especially when the change involves a fundamental shift in the organization’s methods of work and/or culture. constitute another important foundation of organization development. 6. Parallel learning structures are often the best way to initiate change in large bureaucratic organizations.6 Parallel Learning Structures Parallel learning structures. deciding. Considerable experimentation with collateral organizations occurred in the 1970s and 1980s. flexible response. High-performance organizations often use parallel structures to co-ordinate self-directed teams. a steering committee and working groups were used to co-ordinate the employee involvement teams. specially created organizational structures for planning and guiding change programs. clear objectives. Most socio-technical systems redesign efforts and open systems planning programs use parallel structures. Parallel learning structures are a foundation of OD because they are prevalent in so many different OD programs. and initiate needed changes. Bushe and Shani say: “The key thing about parallel structures is that they create a bounded space and time for thinking. 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. The most important and difficult task for the people creating the parallel learning structure is to create a different culture within it.
skills. doubts. . that is. The client system members define what changes and improvements they want to make. anxieties. they impel a collaborative effort rather than a "doing something to" effort. although often OD represents a combination of the normative-reeductive and the empirical-rational strategies. Sociocultural norms are supported by the attitude and value systems of individuals-normative outlooks which undergird their commitments. The first type is empirical rational strategies. and it rests on a particular strategy for change that has implications for practitioners and organization members alike. The second group of strategies is normative-re-educative strategies. relationships and customary ways of doing things. and will change if and when they come to realize change is advantageous to them. will follow their rational self-interest. Evaluated against these three change strategies. or intellectual rationales for action and practice. and change comes through re-education in which old norms are discarded and supplanted by new ones. The point here is that different strategies are available for effecting change. and’ negative feelings are surfaced for "working through. rather than the OD practitioner. These strategies build upon assumptions about human motivation different from those underlying the first. The norms to be changed and the form of re-education are decided by the client system members. strategy has the following implications for the practice of OD." Solutions to problems are not a priori assigned to greater technical information but may reside in values. Change in a pattern of practice or action. not just changes in knowledge. These implications give clients considerable control over the situation. based on the assumption that change is compliance of those who have less power with the desires of those who have are power.Organization development involves change. and together they define problems and seek solutions. and they give more options to both the clients and the practitioner. based on the assumptions that people are rational. The rationality and intelligence of men are not denied. will occur only as the persons involved are brought to change their normative orientations to old patterns and develop commitments to new ones. based on the assumptions that norms form the basis for behaviour. and significant relationships. the practitioner intervenes in a collaborative way with the clients. Patterns of action and practice are supported – by socio-cultural norms and by commitments on the part of the individuals to these norms. Chin and Benne describe three types of strategies for changing. values. information. OD clearly falls within the normativere-educative category. according to this view. Anything hindering effective problem solving is brought to light and publicly examined. The third set of strategies is the power-coercive strategies. And changes in normative orientations involve changes in attitudes. Chin and Benne indicate the nature of the normative-reductive strategy as follows: A second group of strategies we call normative-re-educative. and OD is based primarily on a normative-re-educative strategy and secondarily on a rational-empirical strategy. Chin and Benne suggest that a normative-re-educative. attitudes.
placing it in a classification scheme or typology." applied science.” . Although human behaviour in organizations is far from an exact science. or practice. lawful patterns of events produce effectiveness and ineffectiveness. on the basis of which he or she prescribes a solution that. behavioural science knowledge. and skills in ongoing systems in collaboration with system members.” Norms help determine individual behaviour and a normative-re-educative strategy of changing pervades the practice of OD. i. failure negating it and thus requiring re-diagnosis. Each type description of the diagnostic typology contains implications for a certain type of treatment. Greenwood discusses the activities of the practitioner as follows: "The problem that confronts a practitioner is customarily a state of disequilibrium that requires rectification. This process is customarily referred to as diagnosis and treatment. the object of which is knowledge for its own sake. on the basis of selected variables. by modifying a group norm or standards. pressing problems. norms can best be changed by focusing on the group. hopefully. Greenwood states: “The diagnostic and treatment typologies are employed together. OD practitioners know about these patterns through research and theory." Both diagnosis and treatment consist of observing a situation and. Thus. 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. 6. success corroborating the diagnosis. The practitioner uses treatment as the empirical test of his diagnosis. A conventional distinction is made between (1) "pure" or basic science.8 Applied Behavioural Science This foundation of OD relates to the primary knowledge base of the field. On this point. applied science or practice. the major leverage point for change is at the group level. the object of which is knowledge to solve practical. 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. not the individual.e. practices. OD emphasizes the latter. The diagnostic typology allows the practitioner to know what category of situation he or she has examined.. The principles of diagnosis and of treatment constitute the principles of practice. the treatment typology allows the practitioner to know what remedial efforts to apply to correct the problem. with their elaborations and implications constitute practice theory.Because norms are socially accepted beliefs held by groups about appropriate and inappropriate behaviours. for example. re-establishes the equilibrium. The practitioner examines the problem situation. OD is the application of behavioural science knowledge. thereby solving the problem. and (2) "technology. The aim of this discussion is to look briefly at how behavioural science knowledge becomes applied behavioural science knowledge.
It is a type of action-research. perhaps more accurately. then selecting and implementing treatments based on the diagnosis. the two top in puts. I am inclined to hold the opposite to be true. behavioural science research and two behavioural science theory. Fig. 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." the OD practitioner works: first diagnosing the situation. and doing or implementing change efforts. had this to say about it: “The research needed for social practice can best be characterized as research for social management or social engineering. and finally evaluating the effects of the treatments. 6. a comparative search on the conditions and effects of various forms of social action. Action research involves three processes: data collection. Action research is a method that combines learning and doing – learning about the dynamics of organizational change. problem-solving method that replicates the steps involved in the scientific method of inquiry underlies most OD activities. represent contributions from applied science.From this "practice theory. and action planning based on the data.” Concluding Comments: . Action research is especially well-suited for planned change programs. The two bottom inputs. 6. feedback of the data to the client system members. it is a program of applying behavioural science to organizations. represent contributions from pure or basic science.9 Action Research The action research model – a data-based. practice research and practice theory.8: Composition of Applied Behavioural Science Organization development is both a result of applied behavioural science and a. form of applied behavioural science. who developed the concept of action research. Kurt Lewin.
Bring out the essence of “managing beyond the quick fix” model of organizational development. –––––––––– means moving to new level of behaviour. Self Assessment Questions 1.These foundations of organization development form the theoretical and practice underpinnings of the field. Ralph Kilmann specified the critical leverage points for organizational change. 4. 2. A fundamental belief in OD is that work teams are the building blocks of organizations. In parallel learning structures members have to think and behave in ways that are different from the normal roles and rules of the organization. Action research model combines learning and doing. . The Burke-Litwin model emphasized on first-order and second-order change.11 Terminal Questions 1. which in turn lead to individual and organizational improvements is the principle of Porras and Robertson model organizational change. Taken collectively. First—order change is also called ___________. Explain Kurt Lewin’s models and theories of planned organizational change. A _____________ is defined as “a set of elements standing in interaction. Kurt Lewin introduced two ideas about change the first idea states that what is occurring at any point in time is a resultant in a field of opposing forces and the second is the model of the change process. OD interventions alter features of the work setting causing changes in individuals’ behaviours. _____________ means sum of the efforts of team members is far greater than the sum of individual efforts of members. What are first-order and second order change according to Burke-Litwin Model of organizational change? Explain. 3. Taken separately. they constitute the beginning of a theory of organization development and change that has enormous potential for improving organizational performance and individual development. 3. 6. Systems theory views organizations as open systems in active exchange with their environment. 2. each is a powerful conceptual tool for thinking out and implementing change. –––––––––– gave the model “Beyond the Quick Fix”.10 Summary The foundations of organizational development form the theoretical and practice underpinnings of the field. 6.” 5.
2. What are the features of systems theory of organizational development? 5. Refer section 6.1 Introduction Objectives 7. Refer section 6.Refer section 6.2. Refer section 6. “Work teams are building blocks of organizational development.12 Answers to SAQs and TQs SAQs: 1. 6. Refer section 22.214.171.124 Characteristics of Organization Culture Culture and .” Comment on this statement.3 4.1 2. Unfreezing 2. MU0002-Unit-07-Organization Climate Unit-07-Organization Culture and Climate Structure: 7.3 5. Transactional change 4. System 5.2 3. Synergy Answers to TQs: 1.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . Ralph Kilmann 3.
7 Terminal Questions 7. You can tell the culture of an organization by looking at the arrangement of furniture. organizational culture is the personality of the organization.4 Organization Culture and Effectiveness 7. but everyone knows it when they sense it. For example. despite the best-laid plans. and validated enough to be taught to new members as the correct ways of perceiving. Comprehensively organization culture is the pattern of basic assumptions that is invented. Practitioners are coming to realize that. but also changing the corporate culture as well. 1986). 7. the culture of a large.1 Introduction Basically. what members wear.3 Types of Organization Culture. Objectives: After studying this unit. thinking.8 Answers to SAQs and TQs 7. what they brag about. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. discovered. Members of an organization soon come to sense the particular culture of an organization. etc. organizational change must include not only changing structures and processes. norms and tangible signs (artifacts) of organization members and their behaviors.6 Summary 7. for-profit corporation is quite different than that of a hospital which is quite different than that of a university.5 Developing and changing Organization Culture Self Assessment Questions 7.7. Martin and Meyerson. Culture is one of those terms that’s difficult to express distinctly. . you will be able to: · Understand Organization Culture. · Describe different types of Organization Culture · Explain organization culture and effectiveness. – similar to what you can use to get a feeling about someone’s personality. The concept of culture is particularly important when attempting to manage organization-wide change. and feeling in relation to these problems (Schein. values. Culture is comprised of the assumptions.
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. and the way members of the organization conduct themselves with customers or other outsiders. Hierarchies have respect for position and power. this was considered the only effective way of organizing and is still a basic element of the vast majority of organizations. internal and external are viewed in market . 4. Observed behavioral regularities. Market The Market organization also seeks control but does so by looking outward. Low absenteeism and high efficiency.2 Characteristics of Organization Culture Organizational culture has a number of important characteristics. and rituals related to deference and demeanor. 5.· Discuss about developing and changing organization culture. Norms. processes and procedures. Note that the Market organization is not one which is focused just on marketing. but one where all transactions. Rules: There are strict guidelines related to getting along in the organization. 7. New-comers must learn those “ropes” in order to be accepted as full-fledged members of the group. When organizational participants interact with one another. Organizational climate: This is an overall “feeling” that is conveyed by the physical layout. Dominate value: These are major values that the organization advocates and expects the participants to share. the way participants interact. Standards of behavior exist. they use common language. Some of the most readily agreed upon are the following: 1. Typical examples are high product quality. do not do too little?” 3. For many years. They often have well-defined policies. 2. Which in many organizations come down to “Do not do too much. and in particular taking note of transaction cost. Hierarchical leaders are typically coordinators and organizers who keep a close eye on what is happening. including guidelines on how much work to do. 6. terminology. 7. Philosophy: These are policies that set forth the organization’s beliefs about how employees and/or customers are to be treated.
value flows between people and stakeholders with minimal cost and delay. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. 1993). Where market success goes to those with greatest speed and adaptability.terms. shared goals. In an efficient market organization. In biological terms. Comprehensively organization culture is the pattern of basic assumptions that is invented. Clan The Clan organization has less focus on structure and control and a greater concern for flexibility. invisible to the naked eye. Market cultures are outward looking. 7. Clan leaders act in a facilitative. which is necessary in a rapidly changing business climate. although not necessarily documented. outputs and outcomes. are particularly driven by results and are often very competitive. 1995) and how problems are solved in an organization. In contrast to Hierarchies. Transactions are exchanges of value. Adhocracy The Adhocracy has even greater independence and flexibility than the Clan.4 Organization Culture and Effectiveness It is reflected in how things are done (Flanagan. Leaders in an adhocracy are visionary. It will use prototyping and experimenting rather than long. people are driven through vision. affecting the performance of every-one within the culture in positive or negative ways. do still exist and are often communicated and inculcated socially. and validated enough to be taught to new members as the correct ways of . innovative entrepreneurs who take calculated risks to make significant gains. but critical to shaping its behavior. 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. Rules. strongly driven by loyalty to one another and the shared cause. discovered. 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). clans often have flat organizations and people and teams act more autonomousl. the adhocracy will rapidly form teams to face new challenges. Rather than strict rules and procedures. big-bang projects and development. supportive way and may take on a parental role. culture is like the DNA of an organization. It has an inward focus and a sense of family and people work well together. Leaders in market cultures are often hard-driving competitors who seek always to deliver the goods.
and no unanimity is found in different approaches. symbols. norms. there is often contradiction in various approaches. Though an organization espouses a series of values. the personality of the organization). etc. and are generally not compromised for short-term benefits or financial gains. communicating. 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. Identifying. 1986). They are reflected in the core capabilities of a company. Organization Effectiveness Organizational effectiveness. goals. Artifacts: The visible manifestations of culture as seen in the physical and social environment of the organization such as: · Its structure. Thus. thinking. The various approaches are judgmental and open to question. various terms such as efficiency. systems and subsystems. its core value are limited to a few in number. · Its rituals. These are the essential and enduring tenets of an organization. and procedures. Martin and Meyerson. rules. Though a large volume of literature is available on the concept and working of organizational effectiveness.perceiving. Values evolve out of the basic assumption and form the core (or heart) of the culture. · The observable behavior of its members (the way they talk. and doing. is defined and conceptualized in different ways. from the basis of its policies and action. individually and collectively. the jargon they use. . and feeling in relation to these problems (Schein. Values: These are the social principles. For example. plaques. The set of basic assumptions evolve into values artifacts and norms in terms of which an organization culture may be examined and understood. the way they dress etc. productivity. believing.the informal rules of the fame telling employees what they are supposed to be saying. or standards held by members of an organization. also called as organizational success or growth. reflecting what is important in the organization and determining how the organization ought to be (the ethos. · Public documents it releases and media reports and stories about it. and what is right and what is wrong. IBM norms dictate that employees should actively listen and respond to customer demands and complaints.
the organizational analysis is incomplete for a practicing manager unless the factors underlying effectiveness are identifying. The intervening variables may be divided into two broad categories: (i) the intervening attitudinal.which are useful in discussing organizational effectiveness over time. to denote organizational effectiveness. Many of these variables are caused by causal variables. attitudes. motivations. 2. Though each individual’s effectiveness is significant but perhaps the most important aspect of effectiveness is its relationship to the entire organization. Intervening variables are concerned with building and developing the organization. and behaviour. From this point of view. According to Likert. and they tend to be long-term goals.5 Developing and Changing Organization Culture How Organizational Cultures Start Although organizational cultures can develop in a number of different ways. and perceptions of all members and their collective capacity for effective interaction. and perceptual cluster. End – result Variables: End-result variable are those factors which are caused by causal and intervening variable and are often in terms of the factors in which managers are interested or measure their effectiveness.. and (ii) the intervening behavioral cluster. This is one part of effectiveness that many managers overlook because it emphasis long-term potential as well as short-term performance. 7. organizational growth. These causal variables include only those independent variables which can be altered or changed by the organization and its management.g. 3. skills. Likert states that causal variables are independent variables which determine the course of developments within an organization and the results achieved by the organization. Causal variables include the structure of the organization and its management. Intervening Variables: Intervening variables are those factors which are reflected as the internal state of organization. the process usually involves some version of the following steps: . These variables have been classified by Likert into three groups-causal. business and leadership strategies. scrap loss. motivational. Likert states that the intervening variables reflect the internal state and health of the organization. communication. and earnings.profitability. Whatever the criteria adopted for organizational effectiveness. decisions. Grouping variables into these categories aids greatly in the correct interpretation of the data and their use for diagnostic and other purposes. intervening and end result. e. and decision-making. there are numerous variables. Causal variables include the structure of the organization and management’s policies. performance goals. end-result variables are the dependent variables which reflect the achievements in the organization such as its productivity. are often used interchangeably. costs. the loyalties. 1. Causal Variables: Causal variables are those factors that influence the course of development within an organization and its results or accomplishment.
powerful stakeholders such as unions. if the appropriate organization culture is in place. and history of two firms. At this point. and a common history begins to be built. 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?. obtaining patents. Where does the power and managerial decision making really reside? Corporate cultures range from autocratic extremes to total employee empowerment. age. 2. and whether products and/or services are involved. and structures that work together to reinforce traditional cultural patterns. 3. building. is workable. the current environmental context has undergone drastic change and either the organization must adapt to these new conditions or it may not survive. Predictable obstacles include entrenched skills. . 4. and is worth the investment of time. Even through some firms have had a culture in place to anticipate change. management. roles. Structure. Staffs. and energy that will be required. New product development and information technology is changing so rapidly that any example would be soon out-of –date. The founder brings in one or more other key people and creates a core group that shares a common vision with the founder. In addition. or even customers may support the existing culture. These factors from the two cultures include the size. is worth running some risks for. the geographic location. the industry in which the partners come from and now reside.1. then such rapid change can be welcomed and accommodated with as little disruption and as few problems as possible. The founding core group beings to act in concert to create an organization by raising funds. For example. all in this core group believe that the idea is a good one. A single person (founder) has an idea for a new enterprise. That is. Changing Organizational Culture Sometimes an organization determines that its culture has to be changed. and so on. and how this plays out among the partners will be important to cultural compatibility. 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. relationships. Politics. However. locating space. others are brought into the organization. incorporating. 2. money.
3. take these losses early. habits. are particularly driven by results and are often very competitive. 6. Recruit outside personnel with industry experience. 1. Simple guidelines such as the following can be helpful. 7. Stay the course by being persistent. 7. attitudes. 8. Make changes from the top down. This attempt to change culture can take many different forms. _____are the visible manifestations of culture as seen in the physical and social environment of the organization. 4. Move quickly and decisively to build momentum and to defuse resistance to the new culture. and patterns of daily behavior. 5. Set realistic goals that impact on the bottom line. commitment. Expect to have some problems and find people who would rather move than change with the culture and. These emotions will be a major input into the clash or compatibility of the two cultures. if possible. ___________are those factors that influence the course of development within an organization and its results or accomplishment. Include employees in the culture change process. 9. 2. Self Assessment Questions 1. organizational cultures can be managed and changed over time. so that they are able to interact well with the organizational personnel. Emotions. 3.6 Summary . Take out all trappings that remind the personnel of the previous culture. The personal feelings. 3. Guidelines for change Despite the significant barriers and resistance to change. Assess the current culture. especially when making changes in rules and processes. ________cultures are outward looking. 2. so that a consistent message is delivered from all management team members. the “culture contract” that individuals have bought into to guide their day-to-day thoughts.
Refer section 7.3 3. system-resource approach. Explain the characteristics of organization culture. Finally. Causal variables Answers to TQs: 1.8 Answers to SAQs and TQs SAQs: 1. Organizational effectiveness can be measured through various approaches. Refer section 7. Factors in organizational effectiveness include casual variables.goal approach. 7. 2. Market 3. . Discuss the development and change of organizational development.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . Briefly explain different types of organizational culture. Effectiveness of an organization can be increased through economic man approach and administrative man approach. intervening variables and end-result variables and there exists interrelationship among these variables. Refer section 7. effectiveness through adaptive-coping cycle has been discussed. behavioural approach. Organizations to be successful must be efficient and effective.Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. 3. Artifacts 2. and strategic constituencies approach. 7.2 2.7 Terminal Questions 1.
Power. and for change to occur in an organization. must be understood if one is to be effective in organizations. power must be exercised. Organization Development Unit-08. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics.1 Introduction Objectives 8.10 Terminal Questions 8.5 Organizational Politics Defined and Explored 8. Politics and Organization Development Structure: 8. That criticism was essentially correct for many years although it is less valid .MU0002-Unit-08Power.” Organization development has been criticized for not taking into account power in organizations.8 Acquiring and using Power Skills Self Assessment Questions 8. we examine power and politics in relation to organization development.9 Summary 8.7 Operating in a Political Environment 8.3 Two Faces of Power 8. As Warner Burke observes: "Organization development signifies change. indisputable facts of organizational life.2 Power Defined and Explored 8. In this unit.11 Answers to SAQs and TQs 8.6 The Role of Power and Politics in the Practice of OD 8.4 Theories about the Sources of Social Power 8.1 Introduction Politics and Power and politics.
you will be able to: · Define power and politics in organizations. Without leadership (power) in medical. One person exerts power over another to the degree that he is able to exact compliance as desired. 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.2 Power Defined and Explored "Power is the intentional influence over the beliefs. · Explain theories about the sources of power. spiritual. the necessity of social interaction between two or more parties. · Explain the role of power and politics in the practice of OD. and outcomes favoring one party over the other. and behaviours of people. political. Power-in-action may . technological. and organizational activities. financial." “Power is the ability of those who possess power to bring about the outcomes they desire. to effect outcomes. Without influence (power) people would have no cooperation and no society. The phenomenon of power is ubiquitous. the act or ability of influencing others.actions and the decisions that precede them. humankind would not have much of the misery it does today. Recent years have seen a sizable outpouring of theory and research on power and politics from which OD practitioners have derived implications and applications for the field but we are still in the early stages of knowing how power and organization development should be related. humankind would not have the standard of living it does today. · Acquire skills to handle power and politics in organizations. The French word ‘pouvoir’ stands for both the noun ‘power’ and the verb ‘to be able. but kinetic power is the act of doing so. confiscation.” “A has power over B to the extent that he can get B to do something that B would otherwise not do." "Power is defined in this unit simply as the capacity to effect (or affect) organizational outcomes.today. Potential power is the capacity to do so. 8.’ To have power is to be able to get desired things done. emotions." Analyzing these definitions shows some common elements: effectance-getting one’s way. We therefore define interpersonal power as the ability to get one’s way in a social situation. Without leadership (power) directed toward warfare. Objectives: After this studying this unit. and repression.
" A moment’s reflection. This positive face of power enables others to reach their goals as well as lets the person exercising power reach his or her goals. How do some people come to possess power? How is power generated. coercing-these are examples of negative uses of power. power being the predominant mode." · Salancik and Pfeffer’s "Strategic-Contingency Model of Power. suggests that many problems with power stem from the goals of persons with power and the means they use. we will examine four different views about who gets power and how: · Emerson’s "Power-Dependence theory. Power per se is probably neither good nor bad although Lord Acton observed that "power tends to corrupt. for organizations to function. hurting. being exercised. with collective. influencing. In fact. however. both positive and negative." Her research in four organizations showed both kinds of power.take many forms. and lead. Leading. . Roberts came to a similar conclusion in her study of "collective power" and "competitive power. 8. 8. We think this distinction provides a good insight into the concept of power. the positive face of power seeks to empower self and others. or positive. influence. selling. bestowed. forcing. absolute power corrupts absolutely. It is especially salient in coordinated activities such as those found in organizations. 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. the negative face of power is characterized by a primitive. Crushing.4 Theories about the Sources of Social Power Power exists in virtually all social situations. persuading-these are examples of positive uses of power. or acquired? In this unit. According to him. The positive face of power is characterized by a socialized need to initiate. not the possession of power as such. it is through the use of power that things get done in the world." · French and Raven’s "Bases of Social Power.3 Two Faces of Power David McClelland proposed an important distinction when he identified "two faces of power" – positive and negative. McClelland observed that while power has a negative connotation for most people. The negative face of power seeks to dominate and control others. an authority or power dimension is required. In most organizations the positive face of power is much more prevalent than the negative face of power." · Mintzberg’s Observations on the Genesis of Power in Organizations. unsocialized need to dominate others.
of social power as follows: 1. Informational power is a form of expert power where the powerholder possesses important facts or information needed by the other. we will continue the exchange relationship. In this theory. power. respect. when the net balance for us is negative. The components of this theory are a social relation between two parties and resources (commodities. we will terminate or alter the relationship. Referent power – power based on the power-receiver having an identification with (attraction to. if a person has something we want badly and we cannot get it any other place. 5. French and Bertram Raven on "the bases of social power. 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. power belongs to those persons who control or mediate desired commodities. and so forth. rejection. Reward power – power based on the ability of the powerholder to reward another. or feeling of oneness with) the power holder. that is. 3. Coercive power – power based on the ability of the powerholder to punish another. 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. 2. or bases. When the net balance for us is positive. Closely related to these ideas is the classic statement by John R. Social interaction represents an exchange of social goods and services. 4. to give something negatively valued by the other. that is. blame. influence.Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another." In other words. Viewed in this light. that person has power over us. Power-dependence theory is related to a broader framework of social interaction called social exchange theory. to give something valued by the other." These authors suggested five sources. and (2) inversely proportional to the availability of those goals to A outside of the A-B relation. Richard Emerson states that "the dependence of Actor A upon Actor B is (1) directly proportional to A’s motivational investment in the goals mediated by B. . goals. information. praise. rewards) that are controlled by one party. and desired by the other. Exchange theory and power-dependence theory are quite compatible with the ideas proposed by French and Raven. hate. P. which posits that what goes on between persons is an exchange of social commodities: love. giving someone power over us is the commodity we exchange when we are dependent on that person for something we want. attraction. The sociologist. Expert power – power based on the powerholder possessing expert knowledge or expertise needed by the other.
and so forth. the five possible bases of power are. All of these must be critical to the organization. the special expertise needed for the organization’s survival-have power. the influencer must have both the "will" and the "skill" to use it. second. the managers. or information. supports the notion that those who have something highly valued by. "is built on the premise that organizational behavior is a power game in which various players. customers. These critical problems are generally "uncertainties" posed by the environment. through the placement of allies in key positions. Salancik and Pfeffer further suggest how power is used: "Power is used by subunits. first. the unions. Henry Mintzberg has developed a theory of organizational power drawn from the organization theory literature and his own creative synthesis abilities. control of a technical skill. In addition to a base of power. coupled with 2) The expenditure of energy in a 3) Politically skillful way. control of a resource. indeed. and. The resources may be ability to reward and punish. suppliers. or departments) most important for solving the organization’s most critical problems. and that the organization is the context for the exercise of power. In summary. knowledge. the ability to solve critical problems or exigencies-anything that creates dependence of one actor or set of actors on another.others-in this case. The fourth basis is legal prerogatives-being given exclusive rights to impose choices." These authors view organizational power as a good thing." The three basic conditions for the exercise of power are 1) Some source or basis of power. for power in the hands of the critical problem solvers helps the organization cope with the various realities it faces. This theory. According to Mintzberg. to enhance their own survival through control of scarce critical resources. these four views of the sources of power are remarkably similar – power stems from possession of or mediation of desired resources.The strategic-contingency model of power asserts that power in organizations accrues to the subunits (individuals. regulators. the top executives. This theory. being in control of critical skills. third. such as the board of directors. units. that power-in-action requires will and skill. The important aspects of Mintzberg’s theory are that the sources of power derive from possession of a commodity desired by others. A fifth basis of power is access to those who have power based on the first four bases. seek to control the organization’s decisions and actions. called influencers. like the ones discussed previously. the employees. used by all who have it. control of a body of knowledge. An organization has many potential influencers. and through the definition of organizational problems and policies. .
one gains a quick understanding of the overall "political climate" of an organization by studying its methods of resource allocation. Both relate to getting one’s way-effectance. surprise. organizational politics is power-in-action in organizations. a tendency to view situations in win-lose terms-what I win. and choosing among alternative means and goals. Analyzing these definitions suggests that the concepts of power and politics are similar. viewing situations in win-win terms as much as possible. One important feature in these definitions should be examined further. but in this sense. Organizational politics tend to be associated with decision-making. In fact. initiate. Thus. We are inclined to consider politics as neither good nor bad per se but believe that politics. These key areas are the battlefields where actors win and lose. develop and use power and other resources to obtain one’s preferred outcomes in a situation in which there is uncertainty about choices”. we view politics as a subset of power. the capacity to get things done by virtue of the position held. The first three definitions treat politics as a neutral set of activities. formal power. For our purposes. 8. has two faces. a relative absence of the tactics of fighting. conflict resolution. illegitimate in nature. Likewise we also treat authority as a subset of power.8. when. like power. “Organizational politics involve intentional acts of influence to enhance or protect the selfinterest of individuals or groups”. it is engaging in activities to get one’s way. you must lose-rather than win-win terms. treating it as informal power. and influence others. and predominant use of the tactics of fighting-secrecy. resource allocation. the last two definitions view politics as illegitimate or unsanctioned activities. and how”. holding hidden agendas. and conflict resolution processes. Both relate to pursuit of self-interest and overcoming the resistance of others. withholding information. “Organizational politics involve those activities taken within organizations to acquire. The positive face is characterized by a balanced pursuit of self-interest and the interests of others.5 Organizational Politics Defined and Explored Harold Lasswell defined “politics simply as the study of who gets what. they are where the "goods" are distributed and the goals decided. the power vested in office. engaging in open problem solving followed by action and influencing.6 The Role of Power and Politics in the Practice OD . “Organizational politics is the management of influence to obtain ends not sanctioned by the organization or to obtain ends through non-sanctioned influence means”. and a socialized need to lead. unsocialized needs to dominate others. The negative face of politics is characterized by extreme pursuit of self-interest. deceiving.
collaboration. and by so doing adds power to the organization. all OD interventions promote problem-solving. The practitioner works to strengthen skills and knowledge in the organization. (2) to promote free. Not only is organization development not a power/political intervention strategy. problem solver.We have discussed a number of ideas concerning power and politics. Cobb and Margulies caution that OD practitioners can get into trouble if they move from a facilitator role to a political role. as a preferred way to get things accomplished. and expertise. informed choice. Emphasis on power equalization stems from two beliefs: first. and promoting individual and organizational competence are part of the foundation of organization development. and educator. as we discussed earlier. openness. organization development represents an approach and method to enable organization members to go beyond the negative face of power and politics. the "interventionist" has three primary tasks: (1) to generate valid useful information. These values are congruent with rational problem solving and incongruent with extremely political modes of operating. This major . being one aspect of the positive face of power. But organization members are free to accept or reject the practitioner. thereby making the negative face of power less prevalent and/or necessary. We know of no OD interventions designed to increase coercion or unilateral power. Virtually. For example. public data are indispensable-for problem solving but anathema for organizational politics. OD interventions do not deny or attempt to abolish the reality of power in organizations. co-operation. "Power equalization" has long been described as one of the values of organization development. The OD consultant. In summary. and weaknesses. and his or her values. like all consultants. 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. increases the amount of power available to organization members. strengths. power equalization. The practitioner is not a political activist or power broker. and effective pursuit of goals while decreasing reliance on the negative faces of power and politics. Valid. collaboration. problem solving is usually superior to power coercion as a way to find solutions to problematic situations. provides a service that the organization is free to "buy" or "not buy. methods. OD values are consistent with the positive face of power. catalyst. OD interventions increase problem-solving. processes. his or her program. they enhance the positive face of power. fact-finding. The role of the OD practitioner is that of a facilitator. it is instead a rational problem-solving approach that is incompatible with extreme poweroriented situations. Values such as trust." 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. not politics. rather. individual dignity. but not with the negative face of power. OD interventions typically generate valid. public data about the organization’s culture. and (3) to promote the client’s internal commitment to the choices made. According to Chris Argyris. second.
2. acceptability. According to the framework of French and Raven. 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. . 5. Success leads to credibility and stature. it will gain more power. it will be strong externally. Group support: If the OD group is strong internally. in powerful places. expert power (the consultant possesses expert knowledge). the resources of OD expertise and ability to help organizational subunits solve their pressing problems. organization development practitioners operate from a potentially strong power base they can use to advantage."34 This maxim has been recognized for years under the heading of "get top-level support for the program. Stature and credibility: Beer notes that power accrues to those who have been successful and effective. Paying attention to these sources of power will enhance the likelihood of success of OD programs. and ability to gain organizational support. followed by some rules of thumb for the OD practitioner. Resource management: Power accrues to those who control resources-in this case. If the OD group is cohesive and free of internal dissention. the values. Competence: Demonstrated competence is the most important source of power. and possibly referent power (others may identify with and be attracted to the consultant)." 4. Early success in the OD program and its usefulness to key managers of the organization helps promote this reputation. and the roles of OD practitioners. informational power (the consultant has a wealth of information about the strengths and weaknesses of the organization). the OD consultant possesses power from the following bases: legitimate power (the OD program and consultant are authorized by the organization’s decision makers). 6. the technology. First.strength of OD derives from the strategy of change. 3. Sponsorship: "Organization development groups will gain power to the extent that they have sponsorship. 8. preferably multiple sponsorship. Michael Beer has identified additional means by which an OD group can gain and wield power in organizations: 1.7 Operating in a Political Environment We will present some general observations on operating in a political environment.
those issues vital to the organization’s success. usually managers. Rule Three: Make the OD program a valued commodity for multiple powerful people in the organization. Becoming a desired commodity as a person means being interpersonally competent and trustworthy. Rule Four: Create win-win solutions. OD practitioners are likely to have high interpersonal competence by virtue of their training. it gains an aura of respect and protection that sets it above most political entanglements. Another way the OD program becomes a desired commodity is by focusing on important issues. OD professionals who are skilled in conflict management techniques and OD programs that encompass conflict resolution activities become valued commodities. Skills such as listening. Many OD interventions promote win-win solutions for conflict situations. Sometimes OD practitioners overlook that they are hired by others. Rule Two: Make the OD program itself a desired commodity. Beer and Walton argue that organization development should move from being practitioner centered to being manager-centered. constructive social relationships. The OD program belongs to the manager. and effective conflict management techniques are required to enhance stable. Organizations are social systems in which members have both a history and a future of interacting. When the OD program serves the needs of top executives. both as a person and as a professional. Each is derived from one general principle: Mind your own business. OD programs become desired commodities when they are instruments that allow individuals and organizations to reach their goals. coaching. counseling.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. which is to help someone else solve his or her major problems. communicating. The role of the OD consultant is to help others upon request. Rule One: Become a desired commodity. The nature of organizations and the nature of organization development suggest this rule. not the OD consultant. The following rules describe ways to avoid becoming involved in one’s own or in others’ political struggles. experience. OD programs should be results-oriented. to help them achieve their goals and solve their problems. problem solving. and showing appreciation for the strengths of others are components of interpersonal competence. the manager will vigorously defend it. and expertise. The preceding rules of thumb describe ways to increase or solidify one’s power base. 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. A valuable by-product of this fact is that if the program runs into political turbulence. . Good OD practitioners will have learned and practiced these skills. Rule Five: Mind your own business. OD consultants have a formal or informal contractual agreement with managers to help them do what they are trying to do-better.
" OD practitioners have typically pursued a "playing it straight" strategy as their sole means of exerting power. while at the same time increasing his or her usefulness to the organization’s powerholders. not by getting involved in the answers. and the characteristics and behaviors of powerholders. Table 8. thereby greatly expanding practitioner influence. We believe the legitimate role of the OD practitioner is that of facilitator. Earlier we stated that the OD practitioner should learn as much as possible about bargaining. viable. not power activist or power broker. As shown in the figure. but that does not mean practitioners must be naive or incompetent in the political arena. Illegitimate behavior causes others to try to exert greater control over the situation. and educator. The authors propose adding the "using social networks" strategy to their repertoires. which is to be an expert on process. negotiations the nature of power and politics.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. dealing directly with powerholders and decision makers. the strategy and tactics of influence. We could propose more rules of thumb. The principle is simple but powerful: know your legitimate business and stick to it.1: Power Base and Power Strategy Connection Individual Power Bases Knowledge Strategies for Success Playing It Straight . A subtle phenomenon is involved here: when people engage in illegitimate behavior. and using contacts for information. not content." which arouses defensive actions. but these give the flavor of the issues one must consider when operating in a political environment. such behavior is often interpreted as politically motivated. individual power derives from knowledge. Illegitimate behavior encroaches on others’ legitimate "turf. others’ support. catalyst. One carries out such a strategy by participating in alliances and coalitions." and "going around the formal system. Networking is recognized as a potent. 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. and personality characteristics.Rule Six: Mind your own business. Rule Seven: Mind your own business because to do otherwise is to invite political trouble." "using social networks. problem solver. Attention to these rules can save OD practitioners time and energy that can be more profitably invested in the OD program. 8. Three successful power strategies are "playing it straight. yet legitimate means of acquiring power.
then utilize a facilitative OD process in which the powerholders work on strategic business issues using consensus decision making to develop a corporate strategy. how-to book on power and organization development is well worth studying. The power structure will realize that collaborative power is preferable to manipulation and deception. criticality-how important one’s job is flexibility-the amount of discretion in the job. personal power and position power. which in turn will protect the interests of all concerned. visibility-how much one’s work is seen by . 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.) 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. This practical. In this model. even those of little power. (Legitimacy refers to abiding by and promoting the values of the organization. Whetton and Cameron’s model is shown in following figure. in turn. and legitimacy. effort. influence key powerholders to accept the OD program.· Expertise · Information · Tradition Others’ Support · Use data to convince · Focus on target group · Be persistent Using Social Networks · Alliances and coalitions · Deal with decision maker · Contacts for information Going Around Formal System · Work around roadblocks · (Don’t) use organization rules Political access Staff support Personality Charisma Reputation Professional credibility Finally. Personal power. arises from expertise. personal attraction. a person’s power comes from two main sources.
Reason refers to persuasion by facts. reciprocity. Reciprocity refers to exchange of favors. They write: "Influence entails actually securing the consent of others to work with you in accomplishing an objective." And. Three influence strategies can be used to influence others-reason. Usually reason is the preferred strategy. Indeed. one investigation of the determinants of effective management performance concluded that a key factor distinguishing high and low performers was the ability to establish informal relationships via networks”. 8. Retribution is not recommended except in unusual cases. Retribution refers to coercion and threats. Whetton and Cameron suggest . According to these authors. and reciprocity can be useful when reason fails. "Power is converted into influence when the target individual consents to behave according to the desires of the power holder. Having power is one thing.1: Model of Power and Influence Networking is used to increase both personal power and position power.influential people. power-in-use is called influence." Three things are involved in converting power into influence: (1) resisting other people’s inappropriate influence attempts. no one has the necessary information and resources to accomplish what’s expected of them. Networks are critical to effective performance for one compelling reason: Except for routine jobs. and (3) empowering others. and relevance-how important one’s task is in relation to organizational priorities. (2) selecting the proper influence strategy. Fig. “One of the most important ways of gaining power in an organization is by establishing a broad network of task and interpersonal relationships. and retribution. actually using it to get things done is another.
The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics. 5. arise from known conditions. Power can be either positive or negative. Organizational power is the ability of those who possess power to bring about the outcomes they desire. Organizational politics is defined as the study of who gets what. (2) provide a positive. reputation and professional credibility. 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. Self Assessment Questions 1. when and how. and (6) build on success. (3) reward and encourage others in visible and personal ways. Methods for empowering others are the following: (1) involve subordinates in assigning work. –––––– is the intentional influence over the beliefs.9 Summary Power and politics are inseparable facts of organizational life. units or departments is most important in solving organizational problems. Organizational politics involve intentional acts of influence to enhance or protect the self-interest of individuals or groups. Power based on the power-receiver having identification with the power holder is called ––– ––––––––. when. Power and politics are similar in nature. Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another.several means of resisting others’ influence attempts such as confrontation and using countervailing power. arise from known conditions. we have examined power and politics with the goals of understanding the phenomena and deriving implications for OD practitioners. (4) express confidence (5) foster initiative and responsibility. emotions or behaviour of people. and how. Define power in an organizational context and explain types of power. Concluding Comments: In this unit. 4. Power and politics are similar in nature. 8. Strategic-contingency model of power asserts that power that accrues to the individuals. 2.10 Terminal Questions 1. 3.. _____________ has identified two faces of power. –––––––––– is made up of Charisma. and are amenable to positive control. –––––––– defined politics as the study of who gets what. collaborative work environment. 8.
4 3. 8. Power 2. Refer section 8. 3. Refer section 8. Harold Lasswell 5. 5. Explain the role of power and politics in the practice of OD. Personality Answers to TQs: 1.2. 4. Referent power 4.1 Introduction .2 2. Refer section 8. Describe briefly various theories of power.11 Answers to SAQs and TQs SAQs: 1.6 5.5 4.Refer section 8.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Identify the bases of individual power and the respective strategies for their success. McClelland 3. Define organization politics. Refer section 8. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9.
11 Terminal Questions 9.4 Management By Objectives 9.5 Quality Circles 9. In this dynamic and fluid environment. actions.6 Quality of Work Life Projects 9.12 Answers to SAQs and TQs 9. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future. 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.2 Meaning and Definitions 9.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. events intended to help an organization improve its performance and effectiveness. These methods are receiving increasing attention in Organization Development. Objectives: .10 Summary 9. organizational problems may repeat.7 Parallel Learning Structures 9. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design. An organization development intervention is a sequence of activities.9 Reengineering Self Assessment Questions 9. These interventions vary from standardized program that have been developed and sometimes tailored program.Objectives 9. Nothing is permanent except change because change is permanently changing. These programs are derived from careful diagnosis.8 Total Quality Management 9.3 Socio Technical Systems 9.
· Explain Reengineering. Advantages of Structural Interventions There are a number of reasons why a consultant should consider employing a structural intervention. their attractiveness is also increased by the following advantages: 1. meaning the major costs are associated with analysis and design of change. and OD practice enables the change agent to estimate the probable consequences of the change. · Explain Total Quality Management. · Discuss the parallel Learning Structures. · Discuss the Management By Objectives · Explain the Quality Circles. organization theory. includes removing or adding layers to hierarchy. From a benefit cost analysis. The cost of structural change is generally “front-end” loaded. you will be able to: · Explain the Socio technical change. Weeks and months of group effort are saved. Structural changes are consistent with their operating styles and are generally understood by practitioners. Structure changes are normally “institutionalized” and less subject to this problem. 9. structural Interventions compare quite favorably with all other alternatives. This normally is a reasonable. Organization Acceptance of Change.After studying this unit. 5. Downsizing associated with restructuring.2 Meaning and Definitions Structural Intervention is related to the changes that relate elements of organization to one another. Cost is Low. Succession Doesn’t Destroy Change Effort. Basic reinforcement theories. One problem with behavioral/ group interventions is the tendency for new managers or employees to discount or fail to continue the change program. Greater Predictability. Rapidity of change. Changes can involve decentralization and centralization. change can be introduced relatively rapidly by top management. 4. 3. In addition. Managers and administrators are notoriously pragmatic. 2. and more . Once diagnosed and an appropriate correction developed.
It endeavors to re-design the organization’s structure. Cummings.critically. 1976.” . 9. it has been defined as follows: MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. 1967. though not strictly an OD intervention in the sense in which other interventions have been discussed so far. Though there are some variations in the practices of MBO and. a predictable cost Implementation of group strategies involves significant long-term man-hour and consultant costs. processes and functions to create a balance between the organization and its changing external environment. therefore. It could involve the following steps (Foster. is a technique and system which helps in improving organizational performance. Pasmore. 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. Its basic idea has been derived from the concept of participative goal setting as a technique of OD. its definitional aspect. Since then.4 Management by Objectives Management by objectives (MBO). The term MBO was coined by Drucker in 1964 when he emphasized the concept of managing by results.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. many business and nonbusiness organizations have adopted this in some form or the other.
non-specialist. its subsystems and people. This process clarifies the role very sharply in terms of what one is expected to achieve. Resource allocation. It is a particular way of thinking about management. MBO employs several techniques but it is not merely the sum total of all these techniques. Certain degree of overlapping is there.. etc. each manager takes active part in setting objectives for himself and also in evaluating his performance as to how he is performing. operational managerial process for the effective utilization of material. managers have the opportunities for clarifying their job relationships with peers. It works as an integrating device. It emphasises initiative and active role by the manger who is responsible for achieving objectives. 3. Whereas the various techniques of management help in measurement of results in resources. superiors and subordinates. Therefore. MBO is likely to affect every management practice in the organization. On the other hand. A management technique can be applied in selected parts of the organization and will have limited implications for its other parts. Objectives are established for all the levels of the organization. The total management process revolves round the objectives set jointly by the superior and the subordinate. Objectives provide the means for integrating the organization with its environment. 2. with objective orientation as its essence. 6. The performance review is held regularly. The MBO is characterized by the participation of concerned managers in objective setting and performance reviews. 4. 5. MBO is an approach and philosophy to management and not merely a technique. MBO is bound to have some relationship with every management technique. physical. This is possible because MBO tries to match objectives and resources. and human resources of the organization by integrating the individual with organization and organization with the environment. The review is future-oriented because it provides basis for planning and corrective actions. all the units or departments and individual manager. The basic emphasis of MBO is on objectives. MBO is the joint application of a number of principles and techniques. reward and punishment system is attached with the achievement of the objectives. its features can be identified as follows: 1. including the corporate level. Periodic review of performance is an important feature of MBO. Objectives in MBO provide guidelines for appropriate system and procedures.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. Similarly. Therefore. In fact. .” Based on the definition of MBO. delegation of authority. are determined on the basis of objectives. often MBO provides the stimulus for the introduction of new techniques of management and enhances the relevance and utility of the existing ones. normally once a year. As an approach to management. MBO is also concerned with determining what these results and resources should be.
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.
structural Interventions compare quite favorably with all other alternatives. Self Assessment Questions 1. 2. Reengineering is a top-down process. eliminating. assumes neither an upward flow of involvement nor that consensus decision making. or restructuring activities without regard to present hierarchical or control procedures. events intended to help an organization improve its performance and effectiveness. Quality . such as cost.· Competitive benchmarking. consciously directed towards the effective and efficient achievement of organizational objectives. actions. The term MBO was coined by _________ in 1964. __________ represents a participative approach to employee involvement in problem solving and productivity improvement. · An emphasis on teams and teamwork. 3. 9. quality.10 Summary An organization development intervention is a sequence of activities. · A major emphasis on continuous learning. · Participative management. Sociotechnical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. · Continuous search for sources of defects with a goal of eliminating them entirely. An organization development __________ is a sequence of activities. actions. MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. 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. 9. and speed. · Top management support on an ongoing basis. service. contemporary measures of performance. From a benefit cost analysis. events intended to help an organization improve its performance and effectiveness.9 Reengineering It is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical. Reengineering focuses on visualizing and streamlining any or all business processes in the organization.
Intervention 2. ties reward to performance and increase workers knowledge and skills through extensive training. Drucker 3. Quality circle Answers to TQs: 1. Write a short note on Total Quality Management.3 2.5 4. .11 Terminal Questions 1. provides relevant information to all employees. Refer section 9. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. TQM pushes decision making power downwards in the organization.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Explain Management By Objectives? 4. Discuss Socio Technical Systems? 2. What are the advantages of structural interventions? 3. 9.12 Answers to SAQs and TQS SAQs: 1. 9. It is also called continuous quality improvement. Refer section 9.circle represents a participative approach to employee involvement in problem solving and productivity improvement.2 3.Refer section 9. Refer section 9.
Objectives: . cope with the ongoing changes successfully in the first instance.7 Summary 10.9 Answers to SAQs and TQs 10.8 Terminal Questions 10.3 Resistance to Change 10. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented). Self Assessment Questions 10.MU0002-Unit-10-Managing Organization Development Unit-10-Managing Change in Organization Development Structure: 10.1 Introduction Objectives 10.4 Causes for Resistance to Change.6 Methods of Reducing Resistance to Change. 10. organizational problems may repeat. Hence.1 Introduction Change in Organizations are increasingly realizing the fact that change is the price of the survival.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. Nothing is permanent except change because change is permanently changing. In this dynamic and fluid environment.5 Impact of Change on the Future Manager 10. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future.
· Discuss the nature of change · Explain resistance to change and the factors which resist change. When a finger (which represents external force) is forced against a point on the balloon (which represents the organization).2 Nature of Change The term ‘change’ refers to an alteration in a system. you will be able to: · Explain the meaning of organization change. It implies a new equilibrium between different components of the organization – technology. they have concluded that the whole organization tends to be affected by change in any part of it. the contour of the balloon visibly changes. Thus.whether physical. which are major ones. · State the methods of reducing resistance to change. structural arrangement. 3. Any change may effect the whole organization. Thus. However. it becomes indented at the point of contact. organizational change may have the following features: 1. When change occurs in any part of the organization. and others. organizational change is the alteration of work environment in an organization. if we look minutely. Organizational change is a continuous process. it has stretched slightly. The type of new equilibrium depends on the degree of change and its impact on the organization. 10. and others. some parts of organization may be affected more. Newstrom and Davis have explained the impact of a change in any part of the organization on the total organization. While managers as change agents want to bring changes in the organization. indirectly. 2. or social. it disturbs the old equilibrium necessitating the development of a new equilibrium. the change in organization does not occur purely on mechanical relationship. They have illustrated it by comparing an organization to an air-filled balloon. 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. some changes which are of minor type may be absorbed by the existing equilibrium.After studying this unit. we find that the shape of the entire balloon has changed. Thus. However. Though this phenomenon will be taken later. However. . some parts may be affected directly. others. may require special change efforts. biological. employees want to maintain a status quo. · Impact of change on future managers. job design and people. less.
In fact. let us discuss whether resistance is always bad as it is generally perceived to be. We saw resistance to change at the existing plant. resistance to change is costly affair. Homeostasis implies self-correcting characteristics of organism to maintain equilibrium as a result of change. In fact. adjustment is fairly routine. If people resist to change. Thus. Before we trace out the reasons for résistance to change. so is the resistance to change. the reality lies in between. it provides some benefits to the organization as its change agent. people act to establish a steady state of need fulfillment and to secure themselves from disturbance of that balance. social systems tend to resist change because of homeostasis. Many companies have been forced to do so in the past.10. Madhur Bajaj. that is. fear of change can be as significantly disrupting as change itself. We shall take new workers at the new place. the organizational may not be able to introduce new phenomena in order to adapt environmental requirement.3 Resistance to Change In the management of change effectively. and its basic survival may be jeopardized. While on negative side. many organizations have been forced to abandon change programmes because of resistance to such programmes. commented. We wanted a new culture and new layout. In fact. resistance to change provides help in managing change in two ways: . Resistance by some members of the organization provides an opportunity to the change agents to weigh the pros and cons of introducing change more carefully. Managing Director of Bajaj Auto. there are two sides of resistance. One example of Bajaj Auto Limited is relevant here. more serious upsets may occur. or they have been forced to adopt alternative strategies. but when a change is major or unusual. In order to increase its manufacturing capacity of two-wheelers. On this phenomenon. When change is minor and within the scope of correcting programme. Resistance as Cost: Since all changes have some cost. Similarly. and on the other.as cost and as benefit. like shifting of the manufacturing plants at new locations.” Resistance as Benefit: On the one hand. This leads to general proposition that people and their social systems will often resist change in organizations. 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. “The Pune plant is fully saturated. People tend to resist many types of changes because new habits or sacrifices are required. the managers face the problem of resistance to change. Resistance to change forces management to find out this reality which helps in managing change more effectively.
Factors in Resistance to Change People tend to evaluate the effect of change individually but they express it through group in collective form. Economic Factors People feel attached to the organization for satisfying their needs and economic needsphysiological. These feeling may be based either on reality or there may be emotional feeling towards the change. whenever people sense that new machinery (change) poses a threat of replacing or degrading them. Reduced Opportunities for Incentives: Employees are generally offered incentives linked to their output in the form of incentive schemes. etc. either real or emotional. 2. When computer was introduced in the business sector in India. 2. bonus. they simply resist such a change. This feeling is created because people feel that those who can match the new requirements will be better off than those who cannot match. psychological and social. it attracted a lot of resistance because of this reason. Fear of Economic Loss: A change may create fear of economic loss in the sense that it may affect economic compensation adversely. Whenever there is change. People may perceive that they will be adversely affected by the change in terms of their needs satisfaction in the following ways: 1. people may feel that in the new system. reduce job options. 3. Degree of force in resistance depends on how people feel about change. precede over other needs.1. Skill Obsolescence: A change is generally meant for better methods of working which may involve new techniques. 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. 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. All these are well-established in the old system. Therefore. may be seen in the context of three types of factors: economic. etc. These feelings. and turn into technological unemployment. job security etc.. Psychological Factors . they will have lower opportunity to earn incentives and bonus as the new system requires additional skills. technology. It also highlights real inadequacies in the proposed change and suggests better ways for developing and introducing changes.
To the extent the satisfaction of these needs is affected by a change. particularly social needs. i. which is always uncertain. they do not want any disturbance in their existing equilibrium of life and work pattern. These are qualitative and. 5. Social Factors People derive need satisfaction. sentiments and attitudes towards change. Some people have very low level of tolerance for change and ambiguity as compared to others. Major psychological factors responsible for resistance are: ego defensiveness. and fear of unknown. The change will bring results in future. Therefore. their existing social interactions are likely to be changed. status quo. Therefore. 1. lack of trust in change agent. . Fear of Unknown: A change may be perceived as entering into unchartered area which is unknown. Ego Defensiveness: A change may affect the ego of the people affected by the change and in order to defend their ego. The lack of adequate information about the likely impact of change further complicates the problems. The major factors causing resistance to change are: desire to retain existing social interaction and feeling of outside interference. Therefore. people may differ. They form their own social groups at the work place for the satisfaction of their social needs. This is the reason why labour union resists changes initiated by management because of the feeling that labour and management are two different interest groups in the organization. everyone tries to avoid it. through their mutual compatible interactions. 3. therefore. which people do not want.e. low tolerance for change. they resist change. Status Quo: People want status quo. 1. 4. the person who initiates change. people resist change. that is. 2. Low Tolerance for Change: In the context of maintaining status quo. The change initiated by the organization disturbs such equilibrium and people have to obtain another equilibrium which is a painful exercise. people resist it. If people have low degree of confidence in the change agent. Thus. A change in itself suggests that everything is not right at a particular level. Desire to Maintain Existing Social Interaction: People desire to maintain existing social interaction since it is a satisfying one.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. This lack of certainty creates anxiety and stress in the minds of people and they want to avoid it. they show resistance to change efforts. When there is any change. these people resist any new idea. the change may be perceived as an instrument for exposing the weakness of the people. Lack of Trust in Change Agent: The effect of change is perceived in the context of change agent.
resources and processes of the most successful companies have in the past ossified into clichés. This is the reason why many old industrial houses are languishing far behind and their places are being taken away by newer organizations. 1. these organizations start falling. Counting Past Successes: A major problem before the organizations which have past success stories is how to face challenges of the changing environment. Strategies. For example. even the organization itself resists many changes because of certain reasons. if new . Caterpillar. change initiated by managers affecting workers.2. Whether it is IBM. Feeling of Outside Interference: A change brought about by the change agent is considered to be interference in the working of people. This phenomenon is heightened if the change agent belongs to another social class.. it may not be possible for the organization to bring necessary change. Zerox or nearer home-TI cycles. If the organization is not fully equipped for meeting such demands. 2. the organization may not bring it easily because it is accustomed to a particular system. has commented as follows: “Nothing fails like success. Many powerful organizations of the past have failed to change and they have developed into routines. an organization has to adapt to its environment but the adaptation has its own cost. It a change is required in these aspects. e. all these companies have been victims of corporate disease. first two reasons are basic and others are by-products of the first two.g. Resource Limitations: No doubt. sunk cost. dogmas. The system is stabilized and any change may be perceived as a threat by the organization itself. Some of these reasons are basic while others are by-products of those. For example. values.” This statement suggests that organizations tend to stabilize at a particular level and if the change efforts are not brought. For example. a bureaucratic organization has certain fixed rules. they become too rigid to change and they hide their failure to change in the guise of past successes. All these work in some circumstances. It is called ‘The Failure of Success’. prescribes rigid authority relationships. Organizational Resistance to Change: Not only individuals and groups within an organization resist change. millstones and routines. Sumantra Ghoshal. Stability of Systems: The organization may design a system through which it may derive many benefits. The major reasons for organizational failure to change are: counting past successes. 3. and inter-organizational agreement. Digital Equipment Corporation. Many organizations are designed to be innovation-resisting. Since these organizations have achieved success by following a particular set of management practices. nothing fails as spectacularly as spectacular success. For example. stability of systems. 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. a professor of strategic leadership who is considered to be a management Guru. resource limitations. and institutes reward and punishment system.
They emphasize more on cost-effectiveness. It depends more on the style of top management. the organization may take change programmes much more frequently. Therefore. and reactors. 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. it will require resources to procure machine. Defenders: These are the firms which penetrate in a narrow market product domain and guard it. analyzers. . innovative. In such a case. and put less emphasis on environmental scanning. organization has to pay for his services though these may not be as useful. what will happen to these assets? Naturally. forward-looking. and commensurate expenses on other items also. it is not necessary that his services are done away with. Thus. Reactors: These organizations realize that their specific environment is changing but fail to relate themselves with the changing environment. Prospectors: These firms use broad planning approaches. Sunk Cost: Most of the organizations have sunk cost involved in various assets. It an individual is not making commensurate contribution. 4. they have to behave in one of the above three ways. Analyzers: Above two are the extreme cases of choice-making modes in between the analyzers and reactors. if any change is to be incorporated. It is necessary too that other organizations also agree to the change proposal. This can be in the form of people also. these can be used for specific period.” This is the true reflection of difference between change-initiating companies and changeresisting companies.defenders. those who watch things happen. 3. Analyzers act sometimes as defenders and sometimes as prospectors.technology is adopted. prospectors. building and training for its personnel. centralized control. Miles and Snow have classified them into four categories. If it is risk-taking. broad environmental scanning. 1. and reserve some resources unutilized for future use. Let us see what someone has said long back: “There are three types of companies: those who make things happen. They go on searching new products/markets on regular basis. decentralized controls. 5. For example. intensive planning. they cannot survive. if the change is required. Now. 4. it may enter into agreement with other organizations over certain aspects of working. Based on the aggressiveness which various companies show in changing themselves. the organization has to take into consideration the wishes of other organizations too. and has zeal for progress. Inter-organizational Agreements: The organization interacts with its environment. the organization may enter into agreement with labour union about not bringing any technological change. Sunk cost cannot be only in terms of various physical things. In this interaction process. Otherwise. 2. Once the assets are acquired. those who wonder what happened.
or programmed responses. do you continually use the same route and streets? Probably if you’re like most people. Life is complex enough. The same applies to employee. finding a new parking place. developing a new lunchtime routine. therefore. we’ve categorized them by individual and organizational sources.000 people or Ford introduces new robotic equipment. or deferred. you find a single route and you use it regularly. we don’t need to consider the full range of options for the hundreds of decisions we have to make every day. the selection process systematically selects certain people in and certain people out. As human beings. So when your department is moved to a new office building across town.4 Cause for Resistance to Change Resistance to change doesn’t necessarily surface in standardized ways. Resistance can be overt. immediate. For instance. Security: People who have a high need for security are likely to resist change because it threatens their feeling of safety. When we are confronted with change. we’re creatures of habit. develop a negative attitude towards quality management or behave dysfunctionally if required to use statistical techniques. And people in general don’t like the unknown. adjusting to the new office layout. it means you’re likely to have to change many habits: waking up 10 minutes earlier. Let’s look at the sources of resistance. this tendency to respond in our accustomed ways becomes a source of resistance. many employees at these firms may fear that their jobs are in jeopardy. To cope with this complexity. we all rely on habits. Organizational resistance Structural Inertia: Organizations have built-in mechanisms to produce stability. the introduction of a quality management program requires that production workers learn statistical process control techniques. and so on. 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. engaging in a work showdown. Fear of the Unknown: Change substitute ambiguity and uncertainty for the known. when you go to work or school. For analytical purpose.10. Habit Every day. They may. some may fear they’ll be unable to do so. taking a new set of streets to work. If for example. implicit. It is easiest for management to deal with resistance when it is overt and immediate. or the like. When Boeing announces its laying off 10. threatening to go on strike. Training . a change is proposed and employees quickly respond by voicing complaints. especially when pay is closely tied to productivity. For example. Economic Factors: Another source of individual resistance is concern that changes will lower one’s income.
They tend to be content with the way things are. So limited changes in subsystems tend to get nullified by the larger system. For example. development of pay plans. Limited Focus of Change: Organization is made up of interdependent subsystems. That is. group norms may act as a constraint. But if union norms dictate resisting any unilateral change made by management. and benefits administration – has been resisted by many human resource departments. human resource people with engineers and finance individuals with operations employees. People from one functional department are placed on terms with people from other functional areas. . Group Inertia: Even if individuals want to change their behavior. An individual union member. the change in technology is not likely to be accepted.and other socialization techniques reinforce specific role requirements and skills. may be willing to accept changes in his job suggested by management. Why? Because this outsourcing is a threat to the specialized skills held by people in HR departments. 10. the way in which companies are configured today is changing. Threat to Established Resource Allocations: the groups in the organization that control sizable resources often see change as a threat. The recent move by some companies to outsource many of their human resource activities – such as training. he’s likely to resist. accountants work with marketers. For example. for instance. These teams are comprised of people from various areas within the company. 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. Will the change. rules and procedures for employees to follow. You can’t change one without affecting the others.5 Impact of Change on Future Manager Organizations are changing nearly daily. The only constant in organizational life today appears to be the presence of continuous change. Formalization provides job description. Thereat to Established Power Relationships: Any redistribution of decision-making authority can threaten long-established power relationship within the organization. Changing Skill Sets More organizations are utilizing cross functional teams. Threat to Expertise: Changes in organizational patterns may threaten the expertise of specialized groups. if management changes the technological processes without simultaneously modifying the organization’s structure to match. for instance. One area of organizations that continues its metamorphosis is the design itself.
Unless this problem is overcome properly. Problem solving now involves the people who are experts in the issue – not necessarily those in high positions in the organization. Therefore. For this purpose.” The newer organizational structures use term problem solving. Decision making is becoming more and more comfortable for those throughout the organization as the need to make decisions is distributed more evenly across all organizational levels. 10. More fluid structures require that managers improve their strategic orientation. Efforts at Individual Level A change is likely to affect some people in some way. managers must be more skilled at reading the environment and grasping the big picture. that is. the role of formal authority in implementing a change may not be effective all the times. the following efforts can be taken: 1. Locavini observes that “the secret of real success is effective management of the emotional vulnerability that accompanies organizational change. it can make effectively by managing resistance effectively. both at the formal and informal levels. In many cases.6 Methods of Reducing Resistance to Change One of the basic problems in managing change is to overcome people’s resistance to change successfully. It implies explanation and . even the impact of change may be dysfunctional if change is imposed upon the people by the use of formal authority. However. rather should be looked upon as a dialogue which continues over a period of time.The ultimate goal is to improve organizational performance by cutting production time or time to market. at the level of individual and at the level of group. It may affect only a few while others may not be affected. When the resistance comes from the people at individual levels. They need to be adept at reading the trends in the environment and then determining what they mean specifically for their own organization. the problems can be solved at the same level. through group dynamics.” Problem of overcoming resistance to change can be handled at two levels. For example. this is not a one-time action. strategic directions for the company must be identified in light of these changes. Stephen Robbins suggests that “…… managers in virtual structures spend most of their time coordinating and controlling external relations. Involvement: Involvement is a process through which those who are affected by the change are brought to understand the change. In addition. This requires that managers think differently and teach employees to think differently. typically by way of computer network links. the effect of the change may not be as functional as envisaged by the management. As organizations must be better equipped to respond to change in their external environment. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups.
and conferences. understanding of change increases and personal involvement in the change increases. 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. to become effective. Based on these characteristics of group as a means of change. the level of resistance to change tends to decrease. A manager as weak leader presents change on the basis of the impersonal requirements of the situation. Group dynamics offers some basic help in this regard. As this process goes. 2. but a transformational leader can use personal reasons for change without arousing resistance. Commitment to take part in the change programme can be obtained in private from each individual. sometimes. 4. Such educational process can be aided by training classes. its basic nature. Thus. Thus. education must be a part of the manager’s everyday activity on the job. Usually. This helps in creating receptive environment in the organization. It grows slowly along with relationship. more than one person is involved in the change. However. Training and Psychological Counseling: The management can change the basic values of the people by training and psychological counseling. its process and working. it is more meaningful if it is done through group. instead of solving the problem at the individual level. is an important trust-building task. 3. For using group as a means of overcoming resistance to change. An effective leader tries to time a change to fit the psychological needs of his followers. helped to change attitudes. meetings. either the subordinates do not resist or if they resist. The fundamental idea in this process is to encourage the person to say something about any aspect of the change. They must be taught new skills. People should be educated to become familiar with change. and indoctrinated in new relationships. Obtaining Commitment: Commitment is an agreement to take an active part in the actual mechanics of the change. Though each person interprets the change individually often. he expresses it through a group. the leader tries to overcome this resistance by leadership process. However. must be understood so that its effective use can be made. as discussed earlier. so that they are looked at and evaluated. The decision to commit oneself is a dynamic process. People always have some ideas and opinions about what is going on in the world and more specially if touches them personally. Getting opinions out in the open. Efforts at Group Level Although agreement to a change can be obtained individually. It includes finding out from the members how they interpret the proposed changes and what they think about them. it is desirable at the group level to get better acceptability of change. getting a man to commit himself in private to change programme may yield fewer results than if he voluntarily and publicly gives his commitment to an idea of change. the manager can form strategies for overcoming resistance in the following manner: . most of the times.then discussion of the proposed changes.
Participation: Participation helps to give people involved in the organizational change and inculcate a feeling of importance. Group Contact: Any effect to change is likely to succeed if the group accepts that change. Those people who are directly affected by the change should be given opportunity to participate in that change before the final decisions are reached. __________ are based on people’s emotions. (ii) In group. It makes people feel that the organization needs their opinions and ideas and is unwilling to go ahead without taking them into account. Through the group contact. and how members contribute. structural arrangement. . job design and people. and how the benefits of the meaningful and continuous dialogue are necessary. It implies a new equilibrium between different components of the organization – technology. The organization must regard the participation as meaningful and share the results of the change with its members. Free flow of information helps people to understand the real picture of the change and many misunderstandings may be avoided. Group Dynamics Training for Change: Group dynamics also helps in providing various training programmes for accepting and implementing change. 3. Self Assessment Questions 1. one can communicate with more people per unit of time. thereby the people can build up the climate based on mutual trust and understanding which are essential for bringing organizational changes successfully. (iii) Group can get at the basic problem very rapidly as compared to a single individual. psychodrama. 2. Even if only some of the members are affected by the change. The group contact offers some specific advantages: (i) Through groups. benefits of change. many things about change can be made clear. It purports how the results are. mere participation may not help. _________ helps to give people involved in the organizational change and inculcate a feeling of importance. This is more important in the case of workers who themselves treat a separate group and do not identify with the management. It would be prudent for management to take labour representatives into confidence before implementing any change. the group itself should be the point of contact. They must be made a party to the change rather than an agent for resistance to change. _________ is the alteration of work environment in an organization. The same is true of problem-solving. sentiments and attitudes towards change. However. 2. there may be some person who may communicate to the same group.1. For this purpose. Such training techniques include role playing. Research studies also support this aspect. The laboratory method provides a setting where group processes can be studied intensively.such aspects as the reasons for change. and sensitivity or T-group training. taking whole of the group into confidence helps in maintaining a cooperative attitude. 3. Such training techniques provide understanding of behaviour.
Psychological factors 3. 10. engaging in a work showdown. It is easiest for management to deal with resistance when it is overt and immediate.7 Summary Change is inevitable. immediate.8 Terminal Questions 1.10. Problem of overcoming resistance to change can be handled at two levels. Why do organizations resist change? 3.4 3. at the level of individual and at the level of group. both at the formal and informal levels. Discuss the methods of reducing resistance to change. a change is proposed and employees quickly respond by voicing complaints. Economic factors. It implies a new equilibrium between different components of the organization. Organizational change 2. or the like. Explain the nature of change? 2. or deferred.6. Organizational change is the alteration of work environment in an organization. Refer section 10. group resistance and vested interests.2 2. Refer section 10. psychological factors. Participation Answers to TQs: 1. social factors. implicit. 10.9 Answers to SAQs and TQS SAQs: 1. that is. Resistance can be overt. Reference: . For instance. threatening to go on strike. Changes may be influenced by external and internal factors. People tend to resist many types of changes because new habits or sacrifices are required. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. Refer section 10. through group dynamics.
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