45247165 Management and Organization Development | Swot Analysis | Strategic Planning

MU0002-Unit-01-Introduction to Management

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1. There are three levels of management-top. Explain its characteristics. Management creates ________ and motivates employees to work harder and better by providing necessary guidance. public organisations sector and non-business private sector. motivating and controlling the efforts of others towards a specific objective.10 Answers to SAQs and TQs SAQs: 1. 1. ___________. co-ordinating. It is the management which transforms physical resources of an organization into productive resources. Lower level managers require and use a greater degree of technical skill and managers at higher levels use a greater degree of conceptual skill. __________is principally the task of planning. machinery and methods or ways of doing things) depends to a great extent on the quality of management. Management is largely found at the middle and lower levels and administration is found at the higher levels. Human skills are important at all managerial levels.8 Summary Management is concerned with getting things done through other people. Still management is not completely a profession. Bring out the difference between Administration and Management. Five M’s of management (________. Define management. teamwork . materials. 1. 3. 3. Managers perform different roles to discharge their responsibilities. counseling and effective leadership. Discuss the importance of management.9 Terminal Questions 1. Money.government offices. Self Assessment Questions in the 1. 2. _________. middle and lower. manpower 3. Management 2. organisations. 2.

3 Planning 2.5 3.Answers to TQs: 1.4 Organizing 2.6 Directing 2.1 Introduction Objectives 2. Refer section 1.2 Process of Management 2. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.5 Staffing 2.2. Refer section 1.1.7 Motivating Self Assessment Questions 2.8 Summary 2. Refer section 1.9 Terminal Questions 2.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .10 Answers to SAQs and TQs .3 2.

2. You might well ask what the need for a policy is when objectives are already defined. in recent time. Management is about accomplishing a goal efficiently. Management functions are as follows (Fayol. management functions have been regrouped into four categories. Staffing. leadership is doing the right things“. Motivating. Organizing. leadership is about setting the desirable goals. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent. the two are not quite the same. Directing. Even . you will be able to: · Define Management process. as the action of measuring a quantity on a regular basis and of adjusting some initial plan. It is difficult to say where objectives end and policies begin.2 Management Process Peter Drucker said: “Management is doing things right. Planning 2. Through leadership and management often overlap. · Explain different functions of management Process. Policy Formulation We have noted earlier that all organizations have well-defined goals and objectives. Objectives: After this studying this unit. Organizing 3. There is a degree of overlap between the two. 2. Coordinating 5. 1949): 1.1 Introduction Follett (1933) defined management as "the art of getting things done through people”. One can also think of management functionally. · Explain Planning. Controlling However. Commanding 4.

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

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

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

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

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

Characteristics of Direction The characteristic features of direction are as follow: 1. Direction is the managerial function of guiding. Through direction. etc. 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. 2. induction. 6. identifying the manpower requirements. Thus staffing deals with the future requirements also. resignation. promotion. Present positions must be filled keeping in mind the future requirements. training development and maintenance of personnel.5. recruitment. how to do and telling them to do to the best of their ability. 2. lead them and guide them on a continuous basis. It is a process: it is a process having a logical sequence i.6 Directing Direction is one of the functions of management. Direction is continuous process and it continues throughout the life-time of the organization. It is an important managerial function. vacancies arise out of retirement. management initiates actions in the organization. It deals with future requirements: Staffing deals with current and future personnel requirements. . motivate them. It is instructing people as to what to do. Direction function is performed at every level of management. 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”. 3.e. Personnel policies and programs must be formulated as guides to perform the staffing function effectively. 7. It is a continuing function. Direction is an important managerial function. Thus staffing is an ongoing process through – out the life of an organization. overseeing and leading people. selection. It is a continuous function: With the growth and expansion of business additional manpower is needed. A manger needs to give orders to his subordinates. Definition According to Koontz and O’Donnel. 8.

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

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

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

Reference 2.1 Introduction Objectives . Follett 2.5 3. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3. Reference 2. 2.3 2. Write a short not on directing. Staffing Answers to TQs: 1.10 Answers to SAQs and TQs SAQs: 1.9 Terminal Questions 1.2. SWOT 3. Explain Staffing in detail 3. What is planning? 2.6 Copyright © 2009 SMU Powered by Sikkim Manipal University . Reference 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.

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

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

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

4. Planned Change: OD is a strategy of planned change for organizational improvement.3 Characteristics of OD 1. . 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. Attempting to create “win-win” solutions is standard practice in OD programs. 6. OD focuses on the elevation of an organization to a higher level of functioning by improving the performance and satisfaction. collaborators. 4. 8. interactive. so that change is easily observed. rather than focusing attention on individuals. they are ongoing. 5. 3. The concept of comprehensive change is based on the systems concept-open. OD relies on an action research model with extensive participation by client system members. 3. Teams of all kinds are particularly important for accomplishing tasks and are targets for OD activities. Rather. 10. OD efforts are not one-shot actions. 7. and co-learners with the client system. OD takes a developmental view that seeks the betterment of both individuals and the organization. 2. dynamic and adaptive system. Participation and involvement in problem-solving and decision-making by all levels of the organization are hallmarks of OD. and cyclic processes. 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. OD practitioners are facilitators. rather. or isolated problems. Thus. 9. so the methods of attaining these goals should also change. OD focuses on total system change and views organizations as complex social systems. 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. temporary. It recognizes that organizational goals change.3. Comprehensive Change: OD efforts focus on comprehensive change in the organization. OD focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. Long-range Change: OD efforts are not meant for solving short-term. OD efforts take an organization as an interrelated whole and no part of it can be changed meaningfully without making corresponding changes in other parts.

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

problem solving climate throughout an organization. (e) To make competition more relevant to work goals and to maximize collaborative efforts. 3. (f) To develop a reward system which recognizes both the achievement of the organization’s goals (profit or service) and development of people. like other normative re-educative programmes. (i) To increase self-control and self-direction for people within the organization. (g) To increase the sense of ‘ownership’ or organization’s objectives throughout the work force. its underlying theory and assumptions and some of the pitfall and challenges in attempting to improve organizations through behavioural science. (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. (d) To build trust among persons and groups throughout an organization.(c) The interventions are directed towards problem-solving and improved functioning for the client system. (b) To supplement the authority associated with role or status. We need to examine carefully the techniques of Organization Development. (c) To locate decision making and problem-solving responsibilities as close to sources of information as possible.5 Goals of Organization Development Following are the generally accepted goals of OD: (a) To create an open. 3. 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. (j) To improve effectiveness of the organization. This Organization Development progrmmes. and (d) The interventions are based on behavioural science theory and technology.6 OD and Management Development . with the authority of knowledge and competence.

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

it is quite suitable for improving organizational performance on long-term basis. plays key role in organizational improvement. OD can be utilized for the following results in the organization: 1. To place emphasis on humanistic values and goals consistent with these vales. 6. Specialist No special requirement. has invited sharp criticism as a strategy to increase organizational viability and effectiveness because many OD programmes have failed. 2. To create an environment in which authority of assigned role is augmented by authority based on knowledge and skills. By 70s. Problem-solving approach.7 Role of Organization Development Organization development. however. etc. 5. Research studies have also failed to conclude . 4.8 Problems in Organization Development Organization development. Trained specialists required. Thus.Approach Time Educative and training Short-range. To increase the openness of communications in all directions-vertically. as a long-term strategy for organizational change. Much of the enthusiasm created at the beginning of OD programmes vanished over the period of time. The basic problem in a change effort which is not comprehensive is that it does not work properly unless there is a proper change in the internal environment of the organization in which people work. and laterally. horizontally. OD became quite successful with many professional consultants offering high services and programmes to various organizations. In early 60s. confrontation techniques. 3. To increase the level of trust and mutual emotional support among all organization members. Long-range strategy for organizational innovation and renewal. Since OD attempts to bring comprehensive change in the organization. 3. To treat each human being as a complex person with a complex set of needs important in his work and his life. however. substantial disenchantment with OD became evident because of many controversial OD techniques like sensitivity training. To increase the level of self and group responsibility in planning and its implementation. To increase the level of enthusiasms and personal satisfaction at all levels of the organization. 3. 7.

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

Self Assessment Questions 1. OD is the ultimate remedy for organizational improvements and developments. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. State the various roles of OD. 3. 2. ––––––– is associated with “Liberation Management”. Who is associated with the “Learning Organizations”? 5. Management development aims at developing the managers individually. Tom Peters 3. Organization development should be led and supported by –––––––. Explain the various characteristics of OD. _____________is a short-term strategy. 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. Empowerment . problem-focused ‘nature of OD’ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. Define OD. But OD aims at changing the entire organizational climate where the managers work.11 Answers to SAQs and TQs SAQs: 1. 3. The participative. 3. 4. There is no ‘quick fix’ to organizations’ problems. collaborative. 2. Distinguish between ‘organizational development’ and ‘management development’. Top management 2.10 Terminal Questions 1. What are the problems involved in the implementation of OD? 3. Explain its salient features. 4. 3. ––––––––– is a process which includes leadership behaviours and human resource practices.

Organization Development – Interventions Structure: 4.1 Introduction Objectives 4.5 Leadership Development 4. Refer section 3.4.2 Survey Feedback 4.7 5.3 Process Consultation 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 3.6 Team-building . Refer section 3. MU0002-Unit-04. Refer section 3. Refer section 3. Peter Senge 5.6 4.2 2.Organization Development – Interventions Unit-04.3 3. Management development Answers to TQs: 1.4 Grid Training 4.

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

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

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

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

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

6. in spite of these criticisms. objective-setting. it appears that this type of educational strategy can help to make significant contributions to organizational effectiveness. The thrust is on moving groups from conflict to co-operation. Each group may be given assignment to evolve strategy for making ideal organization with the help of the consultant. the focus is on inter-group behaviour and relations. The skills relating to planning. Implementing the Ideal Strategic Model: The implementation stage includes the building of the organization on the model of ideal organization on the basis of concepts developed under stage 4. 5. grid training has some positive contributions for organizational effectiveness. and teamwork. grid training is a non-rigorous method. the various programmes may be redesigned. The strategy is then implemented. communication skills. Evaluation of Grid Training Most of the support of grid training has come from its originators-Blake and Mouton.1. The analysis will bring out the shortcomings that may be there. The action is designed to identify the characteristics of the ideal organization. Each group separately analyses the ideal inter-group relations. some of them have not supported the claims made by Blake and Mouton. The members of the organization are trained for achieving this excellence. Though research studies on the application of grid training are not many. and alike. problem-solving. Grid training programme is criticized on the basis that it lacks contingency approach and. 4. 3.5 Leadership Development . the various efforts from phase 1 to phase 5 are evaluated and critical analysis is made. 4. Further. Systematic Critique: In this stage. it discounts reality. They have maintained that “managerial and team effectiveness can be taught to managers with outside assistance.” In a later work. In this light. Action steps to move towards the ideal are developed and assigned to individuals who may be engaged in building co-operative inter-group relationships. Teamwork Development: The focus in this stage is to develop teamwork by analyzing team culture. The individuals try to learn to become managers by practice. Inter-group Development: At this phase. traditions. Managerial grid: It covers various aspects of assessing managerial styles. and problemsolving are also developed. the focus shifts to the total organization and to develop skills necessary for organizational excellence. they maintained the same stand. 2. Furthermore. Developing Ideal Strategic Corporate Model: At this stage. therefore.

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

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

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

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

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

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

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

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

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

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

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

2. ________is antithesis of synergy in team-work which suggests that people working together on a common task may actually decrease their individual efforts. inter-group and total organization levels. developing action plans based on feedback and follow-up. The first step in survey feedback is ______ usually by a consultant based on a structured questionnaire. skills and change in behavior. 4. attitudes and beliefs. Data collection.10 Summary OD intervention strategies are various activities which a consultant and client organization performs for improving organizational performance. group. knowledge and processes necessary for effectiveness at the individual. 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.Training is required for enhancing knowledge. Sensitivity training focuses on small group ranging from ten to twelve. Grid Training was developed by –––––––––––– 3. It focuses on skills. Training is used both in ‘content orientation’ and process orientation’. generation of new behavioral science knowledge. diagnosis. Grid training focuses on individuals and groups to assess their own strengths and weaknesses. feedback of information. 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. Self Assessment Questions 1. In process consultation. Teambuilding is most important. What is Grid Training? How does it help in improving individual performance in an organization? 2.11 Terminal Questions 1. team-work does not necessarily spurt group efforts 4. widely accepted and applied OD intervention for organizational improvement. What is survey feedback as an intervention of OD? How does it provide base for other OD interventions? . Researcher A change agent has to carry out some research activities for the purpose of generating valid information prior to and during the change process. Survey feedback usually proceeds with sequential activities involving data collection. Useful hypothesis are to be formulated and tested.

3. Beliefs in Organization Development Unit-05-Values. What is team-building? What are the stages of life cycle of a team? 4. Assumptions.12 Answers to SAQs and TQs SAQs: 1. 4. Explain Change agents and discuss the role of change agents in detail.2 Definitions and .2 3.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .6 4. Blake and Mouton. Refer section 4. Refer section 4. MU0002-Unit-05-Values. Refer section 4. and Beliefs in Organization Development Structure: 5.1 Introduction Objectives 5. 3.4 2. Refer section 4. Assumptions. Social loafing Answers to TQs: 1. Data collection 2.

1 Introduction A set of values.8 Answers to SAQs and TQs 5.5. · State the implications of OD values and assumptions. beliefs and assumptions. beliefs and assumptions.5. and they continue to evolve as the field itself evolves.2 Implications for Dealing with Groups 5. · Give the statement of OD values and assumptions. shaping the goals and methods of the field and distinguishing OD from other improvement strategies.5 Implications of OD Values and Assumptions 5.5. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers. Most of these beliefs were formulated early in the development of the field.3 Chronology of Events in Management and Organization Thought 5.5.6 Summary Self Assessment Questions 5.3 Implications for Designing and Running Organizations 5. · List the chronology of events of values.2 Definitions A belief is a proposition about how the world works that the individual accepts as true. . Objectives: After studying this unit.4 Early Statements of OD Values and Assumptions 5. and beliefs constitutes an integral part of organization development. 5. it is a cognitive fact for the person.7 Terminal Questions 5.1 Implications for Dealing with Individuals 5. assumptions. you will be able to: · Explain the meaning of values.

increasing awareness of the dysfunctions of bureaucracies. Expert engineers and supervisors designed each task and ensured it was done correctly. the laboratory training movement. the right of people to be free from arbitrary misuse of power." or slacking off.Values are also beliefs and are defined as: "Beliefs about what is desirable or ‘good’ (e. Democratic values assert the sanctity of the individual. repetitive tasks in an attempt to find "the one best way" to do each job. OD values tend to be humanistic. values. dishonesty). and goodwill are the tools for making progress. the clash between fascism and democracy in World War II.3 Chronology of Events in Management and Organization Thought  Frederick Winslow Taylor’s ‘The Principles of Scientific Management’ (1911) launched the scientific management movement with its emphasis on time and motion studies and breaking jobs into small.. assumptions. that progress is possible and desirable in human affairs. Evidence for the validity of these values and their supporting assumptions comes from many sources – the Hawthorne studies. free speech) and what is undesirable or ‘bad’ (e. As these ingredients accumulated. Major ingredients of the zeitgeist that influenced OD values and assumptions are presented here in a brief chronology. . Taylor’s methods quickly swept the country and the world as the way to organize work. assume that everyone has intrinsic worth. Piece-rate pay systems were designed to increase motivation and to prevent "soldiering. greater understanding of individual motivation and group dynamics. treat people with respect and dignity. relatively unexamined beliefs accepted as the truth. Optimistic values posit that people are basically good. Values. and the need for justice through the rule of law and due process. and the like." Assumptions are beliefs that are regarded as so valuable and obviously correct that they are taken for granted and rarely examined or questioned. and democratic. research on the effects of different leadership styles. and assumptions being. and beliefs are all cognitive facts or propositions. repetitive tasks minimized the skills required to do the job.. Simple. they were fashioned into a coherent value foundation for the theory and practice of organization development. assumptions. Values and assumptions do not spring full grown from individuals or societies they are formed from the collective beliefs of an era-the zeitgeist. with values being beliefs about good and bad.g. view all people as having the potential for growth and development. optimistic. strongly held. the human relations movement. the importance of fair and equitable treatment for all. Humanistic values proclaim the importance of the individual: respect the whole person. and beliefs provide structure and stability for people as they attempt to understand the world around them. reason. 5. Thus. or spirit of the time. and that rationality.g.

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

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

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

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

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

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

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

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

Write a note about F. beliefs. F. Taylor’s principles of scientific management.7 Terminal Questions 1. W. 5. Refer section 5. Refer section 5.W. 5. 5.3 .8 Answers to SAQs and TQs SAQs: 1. Bureaucracy 4.3 3. __________ is associated with scientific management. Values.2 2. Define concepts. _______________ gave theory X and theory Y. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. Douglas McGregor Answers to TQs: 1. values. Refer section 5. 2. State the assumptions of Theory X and Theory Y. The concept of –––––––––– was introduced by MaxWeber. 4. 3.1. Taylor 3. What was the outcome of Hawthorne Experiments? 4. Cognitive 2. The outcome of –––––––– was that people were not cogs and organizations were not machines. 2. 3. beliefs and assumptions. Hawthorne experiments 5. and assumptions are all –––––––––– facts.

1 Introduction Objectives 6.4 Porras and Robertson Model of Organizational Change 6.2 Models and Theories of Planned Change 6.3.2 Congruence among System Elements 6.3 The Burke-Litwin Model of Organizational Change 6. Refer section 5.3 Copyright © 2009 SMU Powered by Sikkim Manipal University .3.4. Refer section 5.2.4 Participation and Empowerment .1 The Nature of Systems 6.2 Beyond the Quick Fix 6.3 5.3.4 Open Systems Thinking 6.2.3 Socio-technical Theory and Open Systems Planning 6. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.2.3 Systems Theory 6.2.3.1 Kurt Lewin and Friends 6.

12 Answers to SAQs and TQs 6.9 Action Research Self Assessment Questions 6.10 Summary 6.1 Introduction This unit describes the foundations of organization development theory and practice. art and science which form the knowledge base upon which OD is constructed.6 Parallel Learning Structures 6.6. · Explain the terms ‘participation’ and ‘empowerment’. We will examine the following concepts: .7 A Normative – Re-educative Strategy of Changing 6.11 Terminal Questions 6.8 Applied Behavioural Science 6. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning. · Describe the parallel learning structures. Objectives: After studying this unit. · Explain systems theory. · Explain normative-re-educative strategy of changing The knowledge base of OD is extensive and is constantly growing. Here we describe what we believe are the most important underpinnings for the field. you will be able to: · Explain various models and theories of planned change. In this discussion.5 Teams and Teamwork 6. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs. · Realize the importance of teams and teamwork.

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

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

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

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

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

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. Transformational leadership is required for causing second-order change. 6. and systems cause changes in work unit climate. Fig. leadership. management practices. These two concepts come from leadership research which found that some leaders are capable of obtaining extraordinary performance from followers while other leaders are not. Now let us look at the Burke-Litwin model. Following figure shows the factors involved in first-order (transactional) change.1: The Transactional Factors Involved in First – Order Change . We will do so in several steps. The model also makes a distinction between transactional and transformational leadership styles. interventions directed toward mission and strategy. Transactional leadership is required to make this change in organizational climate. Transactional leadership is sufficient for causing first-order change. which change motivation and." Transactional leadership embodies a fair exchange between leader and follower that leads to "normal" performance. Transactional leaders are "leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements." Transformational leadership embodies inspiration which leads to new heights of performance. and organization culture result in second-order change.systems (policies and procedures) result in first-order change. individual and organizational performance. Changing structure. in turn.

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

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

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

Boundaries of open systems are permeable.6. Systems take inputs from the environment in the form of energy. studying open systems leads to a good understanding of organizations. These purposes must align with purposes or needs in the environment. For example.1 The Nature of Systems The nature. and they export products to the environment in the form of outputs. . the organization will cease to exist. raw material and so on. Organizations are open systems. Therefore. the organization’s purposes will be reflected in its outputs. and characteristics of open systems are well-known. information. people. the reasons for their existence. 6.6: A System in Interaction with its Environment The law of entropy states that all systems “run down” and disintegrate unless they reverse the entropic process by importing more energy than they use. All open systems are input-throughput-output mechanisms. Every system is delineated by a boundary. resources. money. Open systems have purposes and goals. or transformation processes that change the inputs. Each of these three system processes must work well if the system is to be effective and survive. and what is outside the boundary is the environment. Fig. in that they permit exchange of information. and energy between system and environment. They do something to the inputs via throughput. and if the environment does not want these outputs. conversion.3. we examine the characteristics of open systems drawing OD expositions by Katz and Kahn and Hanna. dynamics. Here. A good rule of thumb for drawing the boundary is that more energy exchange occurs within the boundary than across the boundary. What is inside the boundary is the system. Organizations achieve negative entropy when they are able to exchange their outputs for enough inputs to keep the system from running down.

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

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

a social system and a technical system. two active segments of OD today. to the workers doing the job. Another important application of systems theory in organization development is open systems planning.socio-technical systems theory (STS) and open systems planning (OSP)-play an important role in organization development. and Will McWhinney developed a technology for addressing the interface between organization and the environment. Principles such as optimizing the social and technical systems. Fred Emery. and information to the point of action. High-performance organizations almost always use principles from socio-technical systems theory. Their technology became known as Open systems Planning (OSP). STS is the principal conceptual foundation for efforts in work redesign and organization restructuring.3.3 Socio-technical Systems Theory and Open Systems Planning Two major variations of open systems theory. The thesis of STS is that all organizations are comprised of two interdependent systems. Systems models are essential for the practice of OD. G.KI Jayaram.are poorly aligned? In companies showing outstanding performance. especially autonomous work groups (self-regulated teams or self-direct teams). and . 6. that is. Open systems planning entails: 1) Scanning the environment to determine the expectations of external organizations and stake-holders. organizations must optimize both systems. Charles Krone. A number of design principles have been developed to implement socio-technical systems theory. Socio-technical systems theory was developed by Eric Trist. forming autonomous work groups. both realistic (likely to happen if the organization continues on its current course) and ideal (what the organization would like to see happen). training group members in multiple skills. and others at the Tavistock Institute in the 1950s. To achieve high productivity and employee satisfaction. It was the first attempt to help organizations methodically analyze the environmental demands and expectations placed on them and plan to successfully meet these demands and expectations. 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. and that changes in one system affect the other system. multi-skilled teams. controlling variance at the source. and identifying core tasks help STS consultants structure organizations and tasks for maximum effectiveness and efficiency. Hanna writes: In the late 1960s a small team of consultants led by James Clark. 2) Developing scenarios of possible futures. giving information and feedback to the people doing the work.

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

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

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

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

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

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

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

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

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

MU0002-Unit-07-Organization Climate Unit-07-Organization Culture and Climate Structure: 7.3 4.3 5.4.12 Answers to SAQs and TQs SAQs: 1. 6.1 Introduction Objectives 7.1 2. Refer section 6.2. “Work teams are building blocks of organizational development.Refer section 6. Refer section 6. Refer section 6. Unfreezing 2. Synergy Answers to TQs: 1.2.2 3. What are the features of systems theory of organizational development? 5.2 Characteristics of Organization Culture Culture and . Transactional change 4.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .2. Ralph Kilmann 3. Refer section 6. System 5.” Comment on this statement.

and feeling in relation to these problems (Schein. values. for-profit corporation is quite different than that of a hospital which is quite different than that of a university.6 Summary 7. .5 Developing and changing Organization Culture Self Assessment Questions 7. etc. Culture is comprised of the assumptions.7. Martin and Meyerson. Practitioners are coming to realize that.4 Organization Culture and Effectiveness 7.7 Terminal Questions 7. the culture of a large. 7. · Describe different types of Organization Culture · Explain organization culture and effectiveness. Culture is one of those terms that’s difficult to express distinctly. you will be able to: · Understand Organization Culture. You can tell the culture of an organization by looking at the arrangement of furniture. discovered. For example. despite the best-laid plans. Objectives: After studying this unit. 1986). and validated enough to be taught to new members as the correct ways of perceiving.3 Types of Organization Culture. norms and tangible signs (artifacts) of organization members and their behaviors. The concept of culture is particularly important when attempting to manage organization-wide change. but also changing the corporate culture as well. thinking.1 Introduction Basically. Comprehensively organization culture is the pattern of basic assumptions that is invented. – similar to what you can use to get a feeling about someone’s personality. what members wear. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. what they brag about.8 Answers to SAQs and TQs 7. organizational change must include not only changing structures and processes. Members of an organization soon come to sense the particular culture of an organization. organizational culture is the personality of the organization. but everyone knows it when they sense it.

2 Characteristics of Organization Culture Organizational culture has a number of important characteristics. When organizational participants interact with one another. Philosophy: These are policies that set forth the organization’s beliefs about how employees and/or customers are to be treated. do not do too little?” 3. the way participants interact. 2. Market The Market organization also seeks control but does so by looking outward. and in particular taking note of transaction cost. Standards of behavior exist. but one where all transactions. Organizational climate: This is an overall “feeling” that is conveyed by the physical layout. 7.· Discuss about developing and changing organization culture. Norms. 5. Hierarchical leaders are typically coordinators and organizers who keep a close eye on what is happening. They often have well-defined policies. Note that the Market organization is not one which is focused just on marketing. Rules: There are strict guidelines related to getting along in the organization. Low absenteeism and high efficiency. processes and procedures. 4. For many years. terminology. and rituals related to deference and demeanor. Observed behavioral regularities. 6. internal and external are viewed in market . 7.3 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. Typical examples are high product quality. Some of the most readily agreed upon are the following: 1. New-comers must learn those “ropes” in order to be accepted as full-fledged members of the group. Which in many organizations come down to “Do not do too much. Dominate value: These are major values that the organization advocates and expects the participants to share. this was considered the only effective way of organizing and is still a basic element of the vast majority of organizations. including guidelines on how much work to do. they use common language.

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

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

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

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

Self Assessment Questions 1. so that they are able to interact well with the organizational personnel. ________cultures are outward looking. take these losses early. The personal feelings. This attempt to change culture can take many different forms. 3. Emotions.3. 5. if possible. 7. Move quickly and decisively to build momentum and to defuse resistance to the new culture. 1. organizational cultures can be managed and changed over time. Recruit outside personnel with industry experience. 6. Guidelines for change Despite the significant barriers and resistance to change.6 Summary . Assess the current culture. especially when making changes in rules and processes. attitudes. habits. Make changes from the top down. 2. Simple guidelines such as the following can be helpful. Set realistic goals that impact on the bottom line. Include employees in the culture change process. 3. and patterns of daily behavior. so that a consistent message is delivered from all management team members. commitment. 8. 4. These emotions will be a major input into the clash or compatibility of the two cultures. the “culture contract” that individuals have bought into to guide their day-to-day thoughts. Take out all trappings that remind the personnel of the previous culture. 7. are particularly driven by results and are often very competitive. Expect to have some problems and find people who would rather move than change with the culture and. 9. Stay the course by being persistent. _____are the visible manifestations of culture as seen in the physical and social environment of the organization. ___________are those factors that influence the course of development within an organization and its results or accomplishment. 2.

5 Copyright © 2009 SMU Powered by Sikkim Manipal University . Artifacts 2. Causal variables Answers to TQs: 1. Factors in organizational effectiveness include casual variables. Effectiveness of an organization can be increased through economic man approach and administrative man approach. and strategic constituencies approach.8 Answers to SAQs and TQs SAQs: 1.2 2. 7. Finally.goal approach. Organizational effectiveness can be measured through various approaches. Discuss the development and change of organizational development.3 3. 2.Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. Explain the characteristics of organization culture. effectiveness through adaptive-coping cycle has been discussed. 3. Briefly explain different types of organizational culture. .7 Terminal Questions 1. system-resource approach. Refer section 7. 7. Organizations to be successful must be efficient and effective. Market 3. intervening variables and end-result variables and there exists interrelationship among these variables. behavioural approach. Refer section 7. Refer section 7.

8 Acquiring and using Power Skills Self Assessment Questions 8. Organization Development Unit-08. Politics and Organization Development Structure: 8.4 Theories about the Sources of Social Power 8.5 Organizational Politics Defined and Explored 8.Power. power must be exercised. That criticism was essentially correct for many years although it is less valid . In this unit.1 Introduction Politics and Power and politics.” Organization development has been criticized for not taking into account power in organizations.7 Operating in a Political Environment 8.2 Power Defined and Explored 8.MU0002-Unit-08Power. and for change to occur in an organization. indisputable facts of organizational life.1 Introduction Objectives 8.11 Answers to SAQs and TQs 8.6 The Role of Power and Politics in the Practice of OD 8. As Warner Burke observes: "Organization development signifies change. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics. we examine power and politics in relation to organization development. must be understood if one is to be effective in organizations.9 Summary 8.3 Two Faces of Power 8.10 Terminal Questions 8.

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

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

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

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

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

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

. the values. the OD consultant possesses power from the following bases: legitimate power (the OD program and consultant are authorized by the organization’s decision makers). and ability to gain organizational support. and the roles of OD practitioners. preferably multiple sponsorship. 2. Success leads to credibility and stature. in powerful places. 6. If the OD group is cohesive and free of internal dissention.strength of OD derives from the strategy of change. 3. it will be strong externally. Sponsorship: "Organization development groups will gain power to the extent that they have sponsorship. First. the technology. Paying attention to these sources of power will enhance the likelihood of success of OD programs. Michael Beer has identified additional means by which an OD group can gain and wield power in organizations: 1. expert power (the consultant possesses expert knowledge). Competence: Demonstrated competence is the most important source of power." 4. Early success in the OD program and its usefulness to key managers of the organization helps promote this reputation. According to the framework of French and Raven. acceptability."34 This maxim has been recognized for years under the heading of "get top-level support for the program. Group support: If the OD group is strong internally. organization development practitioners operate from a potentially strong power base they can use to advantage. the resources of OD expertise and ability to help organizational subunits solve their pressing problems. These sources of influence produce a substantial power base that will enhance the likelihood of success. Stature and credibility: Beer notes that power accrues to those who have been successful and effective. and possibly referent power (others may identify with and be attracted to the consultant). 5.7 Operating in a Political Environment We will present some general observations on operating in a political environment. Resource management: Power accrues to those who control resources-in this case. it will gain more power. 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. informational power (the consultant has a wealth of information about the strengths and weaknesses of the organization). followed by some rules of thumb for the OD practitioner. 8.

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

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

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

power-in-use is called influence. They write: "Influence entails actually securing the consent of others to work with you in accomplishing an objective. Retribution refers to coercion and threats." Three things are involved in converting power into influence: (1) resisting other people’s inappropriate influence attempts. "Power is converted into influence when the target individual consents to behave according to the desires of the power holder. Whetton and Cameron suggest . Fig. (2) selecting the proper influence strategy. Usually reason is the preferred strategy. and reciprocity can be useful when reason fails. Retribution is not recommended except in unusual cases. According to these authors. 8.influential people. Three influence strategies can be used to influence others-reason. and relevance-how important one’s task is in relation to organizational priorities. Having power is one thing. Reciprocity refers to exchange of favors. and retribution. actually using it to get things done is another. no one has the necessary information and resources to accomplish what’s expected of them. reciprocity. and (3) empowering others. Networks are critical to effective performance for one compelling reason: Except for routine jobs. “One of the most important ways of gaining power in an organization is by establishing a broad network of task and interpersonal relationships. Reason refers to persuasion by facts." And.1: Model of Power and Influence Networking is used to increase both personal power and position power. Indeed. one investigation of the determinants of effective management performance concluded that a key factor distinguishing high and low performers was the ability to establish informal relationships via networks”.

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

Refer section 8. Power 2.4 3. Refer section 8. Personality Answers to TQs: 1.2. Refer section 8.2 2.1 Introduction . Referent power 4.5 4.Refer section 8. 5. Harold Lasswell 5. Define organization politics. 4. McClelland 3. Explain the role of power and politics in the practice of OD.6 5. 8. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9. Identify the bases of individual power and the respective strategies for their success.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . 3.11 Answers to SAQs and TQs SAQs: 1. Describe briefly various theories of power. Refer section 8.

10 Summary 9.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival.4 Management By Objectives 9.8 Total Quality Management 9. These interventions vary from standardized program that have been developed and sometimes tailored program. These methods are receiving increasing attention in Organization Development.2 Meaning and Definitions 9. Objectives: . how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design.9 Reengineering Self Assessment Questions 9. One important intervention technique is Technostructural interventions because these are related to technical and structural issues such as how to divide labour and how to coordinate department which is related to Restructuring organization.12 Answers to SAQs and TQs 9. These programs are derived from careful diagnosis. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future. organizational problems may repeat. Nothing is permanent except change because change is permanently changing. In this dynamic and fluid environment.3 Socio Technical Systems 9. actions.Objectives 9.5 Quality Circles 9. events intended to help an organization improve its performance and effectiveness.11 Terminal Questions 9. An organization development intervention is a sequence of activities.7 Parallel Learning Structures 9.6 Quality of Work Life Projects 9.

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

1976. it has been defined as follows: MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. many business and nonbusiness organizations have adopted this in some form or the other.critically. Its basic idea has been derived from the concept of participative goal setting as a technique of OD. Pasmore. 1967. therefore. 9. 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. Cummings. Since then. a predictable cost Implementation of group strategies involves significant long-term man-hour and consultant costs. is a technique and system which helps in improving organizational performance. though not strictly an OD intervention in the sense in which other interventions have been discussed so far. The term MBO was coined by Drucker in 1964 when he emphasized the concept of managing by results.” .3 Socio Technical Systems Socio-technical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. consciously directed towards the effective and efficient achievement of organizational objectives. Though there are some variations in the practices of MBO and. its definitional aspect. It endeavors to re-design the organization’s structure. processes and functions to create a balance between the organization and its changing external environment.4 Management by Objectives Management by objectives (MBO). It could involve the following steps (Foster.

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

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.

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

8 Copyright © 2009 SMU Powered by Sikkim Manipal University .3 2. Write a short note on Total Quality Management. 9. Intervention 2. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. . Refer section 9. Quality circle Answers to TQs: 1. ties reward to performance and increase workers knowledge and skills through extensive training.Refer section 9. TQM pushes decision making power downwards in the organization.2 3.circle represents a participative approach to employee involvement in problem solving and productivity improvement. What are the advantages of structural interventions? 3. It is also called continuous quality improvement. provides relevant information to all employees.11 Terminal Questions 1. Drucker 3.12 Answers to SAQs and TQS SAQs: 1. Refer section 9. Refer section 9. Explain Management By Objectives? 4. 9. Discuss Socio Technical Systems? 2.5 4.

organizational problems may repeat.7 Summary 10. and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other. In this dynamic and fluid environment.3 Resistance to Change 10.2 Nature of Change 10. Nothing is permanent except change because change is permanently changing.4 Causes for Resistance to Change.1 Introduction Change in Organizations are increasingly realizing the fact that change is the price of the survival. Objectives: .MU0002-Unit-10-Managing Organization Development Unit-10-Managing Change in Organization Development Structure: 10.5 Impact of Change on the Future Manager 10. 10.9 Answers to SAQs and TQs 10.8 Terminal Questions 10. Self Assessment Questions 10. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented).1 Introduction Objectives 10.6 Methods of Reducing Resistance to Change. Hence. cope with the ongoing changes successfully in the first instance.

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

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

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

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

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

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

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

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

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

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

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

Organizational change is the alteration of work environment in an organization. Changes may be influenced by external and internal factors. Discuss the methods of reducing resistance to change. Participation Answers to TQs: 1. 10. immediate. threatening to go on strike. It is easiest for management to deal with resistance when it is overt and immediate. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. Explain the nature of change? 2. Refer section 10. at the level of individual and at the level of group.6. For instance. a change is proposed and employees quickly respond by voicing complaints. Economic factors. Psychological factors 3. 10.8 Terminal Questions 1. or the like. or deferred. It implies a new equilibrium between different components of the organization.10. engaging in a work showdown.4 3. Refer section 10. Resistance can be overt. People tend to resist many types of changes because new habits or sacrifices are required.7 Summary Change is inevitable. both at the formal and informal levels.9 Answers to SAQs and TQS SAQs: 1. Organizational change 2. Why do organizations resist change? 3. implicit. through group dynamics. Refer section 10. that is. group resistance and vested interests. psychological factors. Reference: . social factors.2 2. Problem of overcoming resistance to change can be handled at two levels.

New Delhi. Pvt.org/org_chng/org_chng. Ltd.cfm http://www.managementhelp. Edward Freeman.oup. · Stephen P. Anmol Publications Pvt. Chhabra.managementtoday.Response Books.humtech. · L. F. · T.htm#anchor73776 Copyright © 2009 SMU Powered by Sikkim Manipal University . Jr. Robbins. Prentice-Hall of India Private Limited.jp/~kyodo/kokyuroku/contents/pdf/1461-15. · James A.co.pdf http://webuser. Thomson South Western.oup.management of Organization Change.pdf http://www. .htm#TopOfPage http://www. Educatiional Publishers.pdf http://www. · Laxmi Devi. eighth edition. Thomson · Daft Richard L. Management. Regal Publications New Delhi.htm www. · Harigopal K.co. N. M. Robbbins. E References            http://fds.html http://muse. Sultan Chand & Sons.edu/groups/learning/wp8.edu/cameronk/CULTURE%20BOOK-CHAPTER%201. Organizational Behaviour. Management.com/opm/grtl/OLS/ols6. Prentice-Hall of India. New Delhi.umd. New Delhi.work911.uk/search/article/634958/the-ceos-role-managing-change/ http://www. Organization Theory and Design. Prentice-Hall India.lib.pdf www. New Delhi.1lowry. New Delhi.bus..pdf http://www. Dhanpat Rai & Co.org/docrep/w7503e/w7503e05. Principles & Practice of Management.uk/pdf/bt/fincham/Chapter15. · Cummings & Worley. · Stephens P.umich. Organizational Development. Organizational Behaviour. Ltd. French and Cecil H.· Wendell L.edu/journals/portal_libraries_and_the_academy/v005/5.kurims. New Delhi. · J.jhu. Bell. Prentice-Hall of India. Jain. Modern Organization Development and Change.. Prasad. Organization Development & Change. Stoner and R. N. Principles and Practices.edu/files/Publications/WorkingPapers/wp598. P. Organization Development.fao. P.wdi.com/www.kyoto-u.com/articles/leadchange.Singh.ac. 12th edition.umich.

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