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

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

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

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

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

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

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

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

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

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

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

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

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

Money. 3. There are three levels of management-top. Management 2. Define management. motivating and controlling the efforts of others towards a specific objective. 1. 1. manpower 3. middle and lower. 3.government offices. _________. co-ordinating. Self Assessment Questions in the 1. ___________. materials. Management creates ________ and motivates employees to work harder and better by providing necessary guidance. Explain its characteristics. Lower level managers require and use a greater degree of technical skill and managers at higher levels use a greater degree of conceptual skill. Five M’s of management (________. teamwork . 2.10 Answers to SAQs and TQs SAQs: 1. machinery and methods or ways of doing things) depends to a great extent on the quality of management. 1. Still management is not completely a profession. Managers perform different roles to discharge their responsibilities. Bring out the difference between Administration and Management. Discuss the importance of management. It is the management which transforms physical resources of an organization into productive resources.9 Terminal Questions 1. public organisations sector and non-business private sector. counseling and effective leadership. organisations. 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. 2. __________is principally the task of planning.

Refer section 1.7 Motivating Self Assessment Questions 2.8 Summary 2.3 2.3 Planning 2.2. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.5 3. Refer section 1.10 Answers to SAQs and TQs .1.6 Directing 2.2 Process of Management 2. Refer section 1.1 Introduction Objectives 2.5 Staffing 2.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .Answers to TQs: 1.4 Organizing 2.9 Terminal Questions 2.

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

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

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

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

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

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

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

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

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

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

Reference 2.2. Staffing Answers to TQs: 1.3 2. What is planning? 2. 2. Write a short not on directing.6 Copyright © 2009 SMU Powered by Sikkim Manipal University . Explain Staffing in detail 3.10 Answers to SAQs and TQs SAQs: 1.9 Terminal Questions 1.1 Introduction Objectives . Follett 2. SWOT 3. Reference 2.5 3. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3. 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.

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

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

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

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

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

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

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

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

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

––––––– is associated with “Liberation Management”.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. 2. State the various roles of OD. The participative. Management development aims at developing the managers individually. Empowerment . 3. What are the problems involved in the implementation of OD? 3. ––––––––– is a process which includes leadership behaviours and human resource practices.Self Assessment Questions 1. 4. Define OD. _____________is a short-term strategy. Who is associated with the “Learning Organizations”? 5. 4. 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. There is no ‘quick fix’ to organizations’ problems. But OD aims at changing the entire organizational climate where the managers work. Explain its salient features. 3. Organization development should be led and supported by –––––––. problem-focused ‘nature of OD’ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization.11 Answers to SAQs and TQs SAQs: 1. Top management 2. Tom Peters 3. collaborative. 3. OD focuses on culture and processes. 3. 2. 5.10 Terminal Questions 1. Explain the various characteristics of OD. Distinguish between ‘organizational development’ and ‘management development’.

Organization Development – Interventions Structure: 4. Refer section 3. MU0002-Unit-04.2 Survey Feedback 4.Organization Development – Interventions Unit-04.4 Grid Training 4.3 Process Consultation 4. Refer section 3.3 3.7 5.6 Team-building .2 2.1 Introduction Objectives 4. Refer section 3.4. Refer section 3. Refer section 3. Management development Answers to TQs: 1.5 Leadership Development 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .6 4. Peter Senge 5.

Interventions constitute the action thrust of organization development. Therefore.10 Summary 4.11 Terminal Questions 4. work group.9 Role of Change Agents Self Assessment Questions 4.4. the classification of OD interventions shows variation. Further. group level. 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. survey feedback.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. For example. 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. 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. inter-group activities. interventions may be required to change people at all these levels. team-building. and organizational culture. various consultants and practitioners have different opinions about the activities which can be included in interventions. Thus. process consultation. many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others. French and Bell have suggested twelve families of OD interventions: diagnostic. the classification appears to be more relevant because it may specify the . and organizational level. Nevertheless.” There are various OD interventions and they are classified in different ways. mediation and negotiation activities. management grid.7 Inter Group Development 4. However. 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. education and training. interpersonal level. they make things happen. People’s behaviour may be relevant to understand at individual level.12 Answers to SAQs and TQs 4.8 Change Agents 4. techno-structural activities. inter-group level.

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

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

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

Process of Grid Training The basic content of grid organization development is managerial grid as discussed. 4.4 Grid Training Grid training is basically based on grid organization development developed by Blake and Mouton. focuses on skills. The grid organization development consists of six phases. significant correlation between the outcomes has not been found. and/or structural change. groups. 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. feedback.5. enabling individuals and groups to assess their own strengths and weaknesses. 6. In the review of various P. group. It is a comprehensive and systematic OD programme which aims at individuals. coaching.C is completed. To study the organization as an interactive system and apply techniques of analysis in diagnosing its problems. Evaluation of Process Consultation: Process consultation is quite in-depth activity of OD in which the consultant plays a major role. both these problems may be overcome by engaging a suitable consultant and developing willingness among the members for change. P. he assists the organizational members to incorporate those changes. P. and the organization as a whole. To evaluate the styles of leadership and techniques of participation to produce desirable results. It utilizes a considerable number of instruments. To understand the importance and rationale of systematic change. like other OD intervention techniques. knowledge. and total organizational levels. Intervene: At this stage. 3. . and processes necessary for effectiveness at the individual. 2. One basic reason for this phenomenon may be the consultant’s inability to steer the organization out of troubles. From this point of view. Though he is involved only in suggesting the various changes in the processes. However. The whole orientation is to develop managerial style through the application of behavioural science knowledge. Reduce Involvement and Terminate: When the work of P.C is also not free from criticisms.C is very effective intervention for organizational improvement. the consultant intervenes in the organizational processes by using different interventions like agenda-setting. However. inter-group. Its specific objectives are as follows: 1.C programmes. the consultant disengages from the client organization by mutual agreement but leaves the door open for future involvement.

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

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

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

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

he may tend to affect others because of chain reaction just like a rotten apple injures its companions. skills which are complementary to the team requirement and understanding of one’s own role as well as roles of other members. If the organizational climate is not in tune with high achievement. the individual average dropped down still lower68. and attitudes. The possibility of occurring of social loafing in a team-work increases because of the following reasons: 1. Effective Team An effective team is one which contributes to the achievement of organizational objectives by performing the task assigned to it and providing satisfaction to its members. other factors remaining the same. supportive environment. it appears that there are many factors in an effective team. group of eight. In the above paragraph. 1. we have mentioned that team effectiveness depends on the complementarity of team members. understanding of roles helps members to meet the requirement of one another thereby solving the problems which the team faces. Supportive Environment: A team loaded with skilled members cannot perform well if the organizational climate is not supportive for that. 2.6 pound of pressure while tugging on the rope. group efforts tend to slacken. .it was found that individuals’ total efforts were much higher than the group efforts. From this statement. They averaged 138. Thus. While skills are relevant for job performance. 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. 2. team members may not show high degree of enthusiasm and they will use only a part of their skills in performing the jobs. Dropping of average output in group efforts indicates that some members of the group were not contributing as much as they did individually. individual members do not contribute to the fullest extent. When the group is not cohesive with high output norms. goals. team members may tend to contribute positively to the teamwork. Let us see how these factors make a team effective. managers at higher levels particularly at the top level should set organizational climate and culture which enthuse team members to put their best. When the division of work cannot be accomplished properly and individual efforts are hard to determine. two things are required from its members. These factors are skills and role clarity. The phenomenon of social loafing can be minimized by constituting effective team for group performance. super-ordinate goals and team rewards. Skills and Role Clarity: For an effective team. When the same individuals pulled on the rope of groups of three. Therefore.2 pounds. Individuals were asked to pull alone as hard as possible on a rope attached to a strain gauge. Even if one member lacks behind.

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

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

He has to educate people on the need and importance o change using a variety of methodologies – lectures.Subgroups. cases and experiential learning etc. Outside consultants. internal management often will hire the services or outside consultants to provide advice and assistance. group discussions. internal staff specialists or managers when acting as change agents. or as fog lamp when the future is hazy. 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. are disadvantaged because they usually have an inadequate understanding of the organization’s history. changing (intervening) and refreezing. however. 4.9 Role of Change Agents The change agent may play different roles according to the need of organization development .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. enabling the client to let off steam: as the ignition to spark action. presentations. or outside consultants. 4. . employees of the organization. may be more thoughtful (and possibly cautious) because they to live with the consequences of their actions. as the radiator absorbing some of the heat of the controversy. culture. as the break for too quick action. According to Curtis Mial: “The Consultant may serve as the exhaust value. with members from each of the conflicting groups. can now be created for further diagnosis and to begin to formulate possible alternative actions that will improve relations. operating procedures.8 Change Agents Change agents: Can be managers or nonmanagers. For major change efforts. Trainer A change agent needs to be a trainer and educator. as the shock absorber when the going is rough. and personnel. as the accelerator to build up momentum. role-plays and instruments. In contrast. The trainer role is most widely and intensively used at all stages of a change project: unfreezing. films. Because they are from the outside these individuals an offer can offer an objective perspective often unavailable to insiders. The consultant may fulfill a variety of functions. but one thing he/she is not the driver”.

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

1 Introduction Objectives 5.6 4.4 2. Refer section 4. Data collection 2.3. 4. Explain Change agents and discuss the role of change agents in detail. Assumptions. Refer section 4. Assumptions. What is team-building? What are the stages of life cycle of a team? 4. Beliefs in Organization Development Unit-05-Values. Refer section 4. Blake and Mouton.2 Definitions and . 3. MU0002-Unit-05-Values.2 3.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .12 Answers to SAQs and TQs SAQs: 1. Social loafing Answers to TQs: 1. and Beliefs in Organization Development Structure: 5. Refer section 4.

3 Chronology of Events in Management and Organization Thought 5. and they continue to evolve as the field itself evolves. shaping the goals and methods of the field and distinguishing OD from other improvement strategies.2 Definitions A belief is a proposition about how the world works that the individual accepts as true. assumptions. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers.5. 5. beliefs and assumptions. · Give the statement of OD values and assumptions. beliefs and assumptions. · List the chronology of events of values.5.2 Implications for Dealing with Groups 5.5. and beliefs constitutes an integral part of organization development.1 Introduction A set of values. Most of these beliefs were formulated early in the development of the field.5.1 Implications for Dealing with Individuals 5. it is a cognitive fact for the person.7 Terminal Questions 5.3 Implications for Designing and Running Organizations 5. you will be able to: · Explain the meaning of values. Objectives: After studying this unit.4 Early Statements of OD Values and Assumptions 5.8 Answers to SAQs and TQs 5. .6 Summary Self Assessment Questions 5. · State the implications of OD values and assumptions.5 Implications of OD Values and Assumptions 5.

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

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

and understand group dynamics. Chris Argyrif’s Personality and Organization (1957) was the first of several books in which he stated that there is an inherent conflict between the needs of organizations and the needs of mature. and a general “humanizing” of the workplace. increase self-understanding. caring social climate. proposed that the leadership functions of a group should be shared between the leader and group members and showed how that could be done. “Overcoming Resistance to Change. Laboratory training taught people how to improve interpersonal relations. which holds that individuals have within themselves the capacity to assume responsibility for their behaviour and mental health when provided with a supportive.         . lack ambition. 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. Douglas McGregor wrote ‘The Human Side of Enterprise’ (1960) in which he described his famous Theory X and Theory Y assumptions. pioneers in laboratory training. training in interpersonal skills for supervisors. The theory postulated that when lowerlevel needs are satisfied. healthy adults. P. are self-centered. Carl Rogers’ Client-Centered Therapy (1951) demonstrated the efficacy of non-directive psychotherapy. Lester Coch and John R. Those who subscribe to Theory X assume that people are lazy.” 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. higher-level needs become dominant. a direct precursor of OD. Rogers’ focus on effective interpersonal communications was applicable to superior-subordinate relations. Ken Benne and Paul Sheats (1948). Motivation and Personality by Abraham Maslow (1954) presented a new view of human motivation. dislike responsibility. Eric Trist and Ken Bamforth of the Tavistock Clinic (1951) published the results of their work in British coal mines. This article introduced the concept of organizations as sociotechnical systems. These years witnessed the beginnings of the laboratory training movement (1946 and 1947). Humanistic and democratic values suffused the movement. Maslow suggested that human motivation is arranged in a hierarchy of needs from lower-level needs such as physiological and survival needs to higher-level needs such as esteem and self-actualization. greater attention to workers’ social needs. French’s (1948) article. The human relations movement advocated participative management. The Hawthorne Studies (1940s to 1960) spawned the human relations movement that was in full flower from the 1930s to the 1960s.

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

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

Decision-making in a healthy organization is located where the information sources are. Organizations. 3. · Away from walling off the expression of feelings toward making possible both appropriate expression and effective use. · Away from utilizing an individual primarily with reference to his or her job description toward viewing an individual as a whole person. · Away from distrusting people toward trusting them. · Away from maskmanship and game-playing toward authentic behaviour. director of organization development. · Away from resisting and fearing individual differences toward accepting and utilizing them. toward seeing them as being in process. not the basis of managerial strategy. sub-units of organizations. An always relevant change goal is the reduction of inappropriate competition between parts of the organization and the development of a more collaborative condition. · Away from avoidance of negative evaluation of individuals toward confirming them as human beings. and individuals continuously manage their affairs against goals. 5. Robert Tannenbaum. One goal of a healthy organization is to develop generally open communication. · 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. · Away from a view of individuals as fixed." People affected by a change must be allowed active participation and a sense of ownership in the planning and conduct of the change. 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. rather than in a particular role or level of hierarchy. · Away from avoiding facing others with relevant data toward making appropriate confrontation. presented their view of OD values in a 1969 article. 6. a professor and Sheldon Davis. Controls are interim measurements. They asserted that an important shift in values was occurring and that this shift signaled a more appropriate and accurate view of people in organizations. and confidence between and across levels. mutual trust. . 4.2.

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

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

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

Refer section 5. State the assumptions of Theory X and Theory Y.3 3.1. Taylor’s principles of scientific management. 5. The concept of –––––––––– was introduced by MaxWeber. beliefs. What was the outcome of Hawthorne Experiments? 4.2 2. 5. beliefs and assumptions. Write a note about F. Values. 3. W. Define concepts.7 Terminal Questions 1. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. 2. values. 4. Refer section 5. Bureaucracy 4. 3.W. Cognitive 2. Douglas McGregor Answers to TQs: 1. Hawthorne experiments 5. F.3 . 2. __________ is associated with scientific management. The outcome of –––––––– was that people were not cogs and organizations were not machines. Taylor 3. Refer section 5. 5. _______________ gave theory X and theory Y. and assumptions are all –––––––––– facts.8 Answers to SAQs and TQs SAQs: 1.

1 Kurt Lewin and Friends 6. Refer section 5.3 5.4.3 The Burke-Litwin Model of Organizational Change 6. Refer section 5.3 Systems Theory 6.2 Beyond the Quick Fix 6.1 The Nature of Systems 6.4 Porras and Robertson Model of Organizational Change 6.2 Congruence among System Elements 6.2.4 Open Systems Thinking 6.2 Models and Theories of Planned Change 6.4 Participation and Empowerment .3.2.1 Introduction Objectives Copyright © 2009 SMU Powered by Sikkim Manipal University . MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.3.3 Socio-technical Theory and Open Systems Planning 6.

5 Teams and Teamwork 6. Objectives: After studying this unit.12 Answers to SAQs and TQs 6.9 Action Research Self Assessment Questions 6. · Realize the importance of teams and teamwork. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs.8 Applied Behavioural Science 6.6 Parallel Learning Structures 6. · Describe the parallel learning structures. · Explain systems theory.6. Here we describe what we believe are the most important underpinnings for the field. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning.1 Introduction This unit describes the foundations of organization development theory and practice. · Explain normative-re-educative strategy of changing The knowledge base of OD is extensive and is constantly growing. · Explain the terms ‘participation’ and ‘empowerment’. We will examine the following concepts: . In this discussion.10 Summary 6. art and science which form the knowledge base upon which OD is constructed. you will be able to: · Explain various models and theories of planned change.11 Terminal Questions 6.7 A Normative – Re-educative Strategy of Changing 6.

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

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

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

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

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

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

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

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

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

Organizations achieve negative entropy when they are able to exchange their outputs for enough inputs to keep the system from running down. Open systems have purposes and goals. raw material and so on. These purposes must align with purposes or needs in the environment.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. the organization will cease to exist.1 The Nature of Systems The nature. in that they permit exchange of information. Organizations are open systems. What is inside the boundary is the system. For example. A good rule of thumb for drawing the boundary is that more energy exchange occurs within the boundary than across the boundary. and characteristics of open systems are well-known. They do something to the inputs via throughput. dynamics. 6.3. the organization’s purposes will be reflected in its outputs. Each of these three system processes must work well if the system is to be effective and survive. and if the environment does not want these outputs.6. information. conversion. people. Every system is delineated by a boundary. All open systems are input-throughput-output mechanisms. we examine the characteristics of open systems drawing OD expositions by Katz and Kahn and Hanna. or transformation processes that change the inputs. Boundaries of open systems are permeable. Fig. money. and energy between system and environment. and what is outside the boundary is the environment. Here. the reasons for their existence. resources. Systems take inputs from the environment in the form of energy. . and they export products to the environment in the form of outputs. Therefore. studying open systems leads to a good understanding of organizations.

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

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

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

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

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

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

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

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

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

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

a comparative search on the conditions and effects of various forms of social action. and doing or implementing change efforts. Action research is especially well-suited for planned change programs. perhaps more accurately. and action planning based on the data. form of applied behavioural science. who developed the concept of action research." the OD practitioner works: first diagnosing the situation. problem-solving method that replicates the steps involved in the scientific method of inquiry underlies most OD activities. Action research involves three processes: data collection. 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. practice research and practice theory. 6.9 Action Research The action research model – a data-based. 6. It is a type of action-research. Action research is a method that combines learning and doing – learning about the dynamics of organizational change. then selecting and implementing treatments based on the diagnosis. had this to say about it: “The research needed for social practice can best be characterized as research for social management or social engineering. The two bottom inputs.8: Composition of Applied Behavioural Science Organization development is both a result of applied behavioural science and a. represent contributions from applied science. and finally evaluating the effects of the treatments. behavioural science research and two behavioural science theory.” Concluding Comments: . I am inclined to hold the opposite to be true. feedback of the data to the client system members. represent contributions from pure or basic science. Kurt Lewin. the two top in puts. Fig. it is a program of applying behavioural science to organizations.From this "practice theory.

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

1 2.3 4.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .2. Synergy Answers to TQs: 1.2.2. What are the features of systems theory of organizational development? 5. MU0002-Unit-07-Organization Climate Unit-07-Organization Culture and Climate Structure: 7.12 Answers to SAQs and TQs SAQs: 1.” Comment on this statement. Ralph Kilmann 3.2 Characteristics of Organization Culture Culture and . Refer section 6.2 3. Refer section 6. Unfreezing 2. Refer section 6. “Work teams are building blocks of organizational development. 6.4. Refer section 6.Refer section 6.1 Introduction Objectives 7. Transactional change 4.3 5. System 5.

discovered. and validated enough to be taught to new members as the correct ways of perceiving. You can tell the culture of an organization by looking at the arrangement of furniture.1 Introduction Basically. 1986).5 Developing and changing Organization Culture Self Assessment Questions 7.7. you will be able to: · Understand Organization Culture. 7. but everyone knows it when they sense it. Members of an organization soon come to sense the particular culture of an organization. norms and tangible signs (artifacts) of organization members and their behaviors. For example. thinking. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. · Describe different types of Organization Culture · Explain organization culture and effectiveness. Practitioners are coming to realize that. values.8 Answers to SAQs and TQs 7. what members wear.6 Summary 7.3 Types of Organization Culture. Martin and Meyerson. organizational culture is the personality of the organization.4 Organization Culture and Effectiveness 7. Culture is one of those terms that’s difficult to express distinctly. and feeling in relation to these problems (Schein. but also changing the corporate culture as well. etc. 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. The concept of culture is particularly important when attempting to manage organization-wide change. despite the best-laid plans. Objectives: After studying this unit. . Culture is comprised of the assumptions. what they brag about. for-profit corporation is quite different than that of a hospital which is quite different than that of a university.7 Terminal Questions 7. the culture of a large. organizational change must include not only changing structures and processes.

terminology.· Discuss about developing and changing organization culture. Some of the most readily agreed upon are the following: 1. When organizational participants interact with one another. Which in many organizations come down to “Do not do too much. Organizational climate: This is an overall “feeling” that is conveyed by the physical layout. Standards of behavior exist. Market The Market organization also seeks control but does so by looking outward. but one where all transactions. New-comers must learn those “ropes” in order to be accepted as full-fledged members of the group. Dominate value: These are major values that the organization advocates and expects the participants to share. 7. Rules: There are strict guidelines related to getting along in the organization. Observed behavioral regularities. Low absenteeism and high efficiency. internal and external are viewed in market . including guidelines on how much work to do. 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. 2. Norms. they use common language. this was considered the only effective way of organizing and is still a basic element of the vast majority of organizations. and the way members of the organization conduct themselves with customers or other outsiders. 7.2 Characteristics of Organization Culture Organizational culture has a number of important characteristics.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. For many years. 4. and in particular taking note of transaction cost. They often have well-defined policies. Note that the Market organization is not one which is focused just on marketing. Hierarchical leaders are typically coordinators and organizers who keep a close eye on what is happening. Hierarchies have respect for position and power. Typical examples are high product quality. 5. and rituals related to deference and demeanor. 6. the way participants interact. processes and procedures.

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

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

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

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

Emotions. especially when making changes in rules and processes. so that a consistent message is delivered from all management team members. Make changes from the top down. if possible. Expect to have some problems and find people who would rather move than change with the culture and. take these losses early. 7. 4. ________cultures are outward looking. 9. These emotions will be a major input into the clash or compatibility of the two cultures. commitment. _____are the visible manifestations of culture as seen in the physical and social environment of the organization. 3. 3. 2. are particularly driven by results and are often very competitive. Move quickly and decisively to build momentum and to defuse resistance to the new culture. This attempt to change culture can take many different forms. Set realistic goals that impact on the bottom line. 8. Include employees in the culture change process. Guidelines for change Despite the significant barriers and resistance to change. Stay the course by being persistent. ___________are those factors that influence the course of development within an organization and its results or accomplishment. attitudes. Self Assessment Questions 1. 1. 6.6 Summary .3. so that they are able to interact well with the organizational personnel. Assess the current culture. organizational cultures can be managed and changed over time. the “culture contract” that individuals have bought into to guide their day-to-day thoughts. The personal feelings. Take out all trappings that remind the personnel of the previous culture. and patterns of daily behavior. habits. 5. Recruit outside personnel with industry experience. 2. 7. Simple guidelines such as the following can be helpful.

2. and strategic constituencies approach.goal approach. Refer section 7. 3. Refer section 7. Organizational effectiveness can be measured through various approaches. intervening variables and end-result variables and there exists interrelationship among these variables.Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. behavioural approach. 7.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 7. Causal variables Answers to TQs: 1.2 2. Discuss the development and change of organizational development. Briefly explain different types of organizational culture. Effectiveness of an organization can be increased through economic man approach and administrative man approach. Artifacts 2.3 3.8 Answers to SAQs and TQs SAQs: 1.7 Terminal Questions 1. Market 3. . Factors in organizational effectiveness include casual variables. 7. Finally. Organizations to be successful must be efficient and effective. system-resource approach. effectiveness through adaptive-coping cycle has been discussed. Explain the characteristics of organization culture.

That criticism was essentially correct for many years although it is less valid .6 The Role of Power and Politics in the Practice of OD 8.5 Organizational Politics Defined and Explored 8.MU0002-Unit-08Power.1 Introduction Politics and Power and politics.4 Theories about the Sources of Social Power 8.7 Operating in a Political Environment 8.8 Acquiring and using Power Skills Self Assessment Questions 8. Organization Development Unit-08.10 Terminal Questions 8. In this unit.2 Power Defined and Explored 8.1 Introduction Objectives 8. we examine power and politics in relation to organization development.11 Answers to SAQs and TQs 8. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics. indisputable facts of organizational life. As Warner Burke observes: "Organization development signifies change.9 Summary 8.” Organization development has been criticized for not taking into account power in organizations. power must be exercised.3 Two Faces of Power 8.Power. must be understood if one is to be effective in organizations. and for change to occur in an organization. Politics and Organization Development Structure: 8.

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

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

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

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

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

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

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

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

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. The authors propose adding the "using social networks" strategy to their repertoires." and "going around the formal system. Table 8.8 Acquiring and Using Power Skills The OD practitioner is neither power activist nor power broker." "using social networks. and the characteristics and behaviors of powerholders. viable.Rule Six: Mind your own business. A subtle phenomenon is involved here: when people engage in illegitimate behavior. not power activist or power broker. individual power derives from knowledge. while at the same time increasing his or her usefulness to the organization’s powerholders. but that does not mean practitioners must be naive or incompetent in the political arena. and personality characteristics. Three successful power strategies are "playing it straight. thereby greatly expanding practitioner influence. The principle is simple but powerful: know your legitimate business and stick to it. and using contacts for information. Illegitimate behavior encroaches on others’ legitimate "turf. catalyst. Abiding by this rule keeps the consultant from becoming entangled in politics. Illegitimate behavior causes others to try to exert greater control over the situation. One carries out such a strategy by participating in alliances and coalitions. 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. not by getting involved in the answers. the strategy and tactics of influence. problem solver. which is to be an expert on process.1: Power Base and Power Strategy Connection Individual Power Bases Knowledge Strategies for Success Playing It Straight . Earlier we stated that the OD practitioner should learn as much as possible about bargaining. and educator. As shown in the figure." which arouses defensive actions. others’ support. yet legitimate means of acquiring power. not content." OD practitioners have typically pursued a "playing it straight" strategy as their sole means of exerting power. Rule Seven: Mind your own business because to do otherwise is to invite political trouble. dealing directly with powerholders and decision makers. We believe the legitimate role of the OD practitioner is that of facilitator. 8. We could propose more rules of thumb. negotiations the nature of power and politics. such behavior is often interpreted as politically motivated. but these give the flavor of the issues one must consider when operating in a political environment.

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

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

arise from known conditions. 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. 3. Organizational politics involve intentional acts of influence to enhance or protect the self-interest of individuals or groups.. (4) express confidence (5) foster initiative and responsibility. Power and politics are similar in nature. emotions or behaviour of people. Power can be either positive or negative. –––––– is the intentional influence over the beliefs. (3) reward and encourage others in visible and personal ways. reputation and professional credibility. _____________ has identified two faces of power. when. Organizational politics is defined as the study of who gets what. Define power in an organizational context and explain types of power. Organizational power is the ability of those who possess power to bring about the outcomes they desire.several means of resisting others’ influence attempts such as confrontation and using countervailing power. 8.10 Terminal Questions 1. and are amenable to positive control. Methods for empowering others are the following: (1) involve subordinates in assigning work. and (6) build on success. 2. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics. Strategic-contingency model of power asserts that power that accrues to the individuals. units or departments is most important in solving organizational problems. . and how. and are amenable to positive control. 4. collaborative work environment. 5. when and how. we have examined power and politics with the goals of understanding the phenomena and deriving implications for OD practitioners. Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another. 8. Concluding Comments: In this unit. (2) provide a positive. Power and politics are similar in nature. arise from known conditions. Power based on the power-receiver having identification with the power holder is called ––– ––––––––.9 Summary Power and politics are inseparable facts of organizational life. –––––––––– is made up of Charisma. –––––––– defined politics as the study of who gets what. Self Assessment Questions 1.

Referent power 4. McClelland 3.2. 4. Refer section 8. Power 2.4 3. 3. 8. Define organization politics. Identify the bases of individual power and the respective strategies for their success.Refer section 8. Refer section 8. Harold Lasswell 5. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9. Describe briefly various theories of power.1 Introduction . Explain the role of power and politics in the practice of OD. Refer section 8.2 2.11 Answers to SAQs and TQs SAQs: 1.5 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 8.6 5. 5. Personality Answers to TQs: 1.

Objectives: .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.8 Total Quality Management 9. An organization development intervention is a sequence of activities. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival.9 Reengineering Self Assessment Questions 9.4 Management By Objectives 9.5 Quality Circles 9.10 Summary 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. events intended to help an organization improve its performance and effectiveness.6 Quality of Work Life Projects 9. These interventions vary from standardized program that have been developed and sometimes tailored program. Nothing is permanent except change because change is permanently changing.2 Meaning and Definitions 9.Objectives 9.3 Socio Technical Systems 9. actions.11 Terminal Questions 9.7 Parallel Learning Structures 9. In this dynamic and fluid environment. organizational problems may repeat. These methods are receiving increasing attention in Organization Development.

Weeks and months of group effort are saved. 5. 3. Organization Acceptance of Change. Greater Predictability. their attractiveness is also increased by the following advantages: 1.2 Meaning and Definitions Structural Intervention is related to the changes that relate elements of organization to one another. Managers and administrators are notoriously pragmatic. 9. includes removing or adding layers to hierarchy. 2. and more . Basic reinforcement theories. Advantages of Structural Interventions There are a number of reasons why a consultant should consider employing a structural intervention. · Explain Reengineering. · Discuss the Management By Objectives · Explain the Quality Circles. Rapidity of change. Once diagnosed and an appropriate correction developed. From a benefit cost analysis. Structure changes are normally “institutionalized” and less subject to this problem. · Explain Total Quality Management.After studying this unit. Structural changes are consistent with their operating styles and are generally understood by practitioners. One problem with behavioral/ group interventions is the tendency for new managers or employees to discount or fail to continue the change program. Changes can involve decentralization and centralization. This normally is a reasonable. Cost is Low. · Discuss the parallel Learning Structures. In addition. The cost of structural change is generally “front-end” loaded. structural Interventions compare quite favorably with all other alternatives. 4. Downsizing associated with restructuring. meaning the major costs are associated with analysis and design of change. you will be able to: · Explain the Socio technical change. Succession Doesn’t Destroy Change Effort. and OD practice enables the change agent to estimate the probable consequences of the change. organization theory. change can be introduced relatively rapidly by top management.

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

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

Process of MBO MBO is a system for achieving organizational objectives, enhancement of employee commitment and participation. Therefore, its process should facilitate translation of basic concepts into management practice. The MBO process is characterized by the emphasis on the rigorous analysis, the clarity and balance of objectives, and participation of the managers with accountability for results. The MBO process is not as simple as it appears to be. Managers need training and experience for developing the required skills. 1. Setting of Organizational Purpose and Objectives: The first step in MBO is the definition of organizational purpose and objectives. Questions, such as, “why does the organization exist?”. What business are we in?” and what should be our business?” provide guidelines for the statement of purpose. This, in interaction with external factors, then determines the long-range strategic objectives like (i) whether to achieve growth through expansion in the same line of business or diversity: (ii) what should be blending of trading and manufacturing activities; (iii) what should be the degree of vertical integration and so on. Usually the objective setting starts at the top level of the organization and moves downward to the lowest managerial levels. This will go in a sequence like this (i) defining the purpose of the organization, (ii) long-range and strategic objectives, (iii) short-term organizational objectives, (iv) divisional/departmental/sectional objectives, (v) individual manager’s objectives. 2. Key Result Areas: Organizational objective and planning premises together provide the basis for the identification of key result areas (KRAs). It may be emphasized that KRAs are derived from the expectations of various stakeholders and indicate the priorities for organizational performance. KRAs also indicate the present state of an organization’s health and the top management perspective for the future. Examples of KRAs applicable to most of the business organizations are (i) profitability, (ii) market standing, (iii) innovation, (iv) productivity, (v) worker performance, (vi) financial and physical resources, (vii) manager performance, and (viii) public responsibility. Even though KRAs are most durable, the list of KRAs gets considerably changed over the period in response to new needs and opportunities. Sometimes, the achievement in a particular KRA also provides the impetus for a new KRA in future. 3. Setting Subordinates’ Objectives: The organizational objectives are achieved through individuals. Therefore, each individual manager must know in advance what he is expected to achieve. Every manager in the managerial hierarchy is both superior and subordinate except the person at the top level and lowest level. Therefore, there is a series of superior and subordinate relationships. The process of objective setting begins with superior’s proposed recommendations for his subordinate’s objectives. In turn, the subordinate states his own objectives as perceived by him. Thereafter, the final objectives for the subordinate are set by the mutual negotiation between superior and subordinate. In the beginning of MBO process in an organization, there may be wide gap between the recommended objectives by the superior and subordinate’s stated objectives because the latter may like to put lesser burden on him by

setting easily achievable objectives. However, with the experience gained over the period of time, this gap narrows because of narrowing down of perception of superior and subordinate about what can be done at a particular level. 4. Matching Resources with Objectives: When objectives are set carefully, they also indicate the resource requirement. In fact, resource availability becomes an important aspect of objective setting because it is the proper application of resources which ensures objective achievement. Therefore, there should be matching between objectives and resources. By relating these to objectives, a superior manager is better able to set the need and economy of allocating resources. By relating these to objectives, a superior manger is better able to see the need and economy of allocating resources. The allocation and movement of resources should be done in consultation with the subordinate manager. 5. Appraisal: Appraisal aspect of MBO tries to measure whether the subordinate is achieving his objective or not. If not, what are the problems and how these problems can be overcome? Appraisal is undertaken as an ongoing process with a view to find out deficiency in the working and also to remove it promptly. It is not taken merely to punish the non-performer or to reward the performer. It is taken as a matter of system to ensure that everything is going as planned and the organization is able to achieve its objectives. 6. Recycling: Though appraisal is the last aspect of MBO process, it is used as an input for recycling objectives and other actions. Objectives are neither set at the top and communicated to the bottom nor are they set at the bottom and go up. Objective setting is a joint process through interaction between superior and subordinate. Therefore, what happens at each level may affect other levels also. The outcome of appraisal at one level is recycled to see if the objectives have been set properly at the level concerned and also at the next higher level. 9.5 Quality Circles Quality circle is one of the most popular methods in the USA which was originally developed in Japan in 1950s.Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. Quality circle requires a managerial philosophy and culture that promotes sharing power, information, knowledge, and rewards. Quality circle program consists of several circles, each having three to fifteen members. The original idea of quality circles involved small groups of volunteers meeting on a regular basis, but in its contemporary form, quality groups are often compulsory and organized around specific work teams. Some organizations have even gone as far as setting targets for the number of suggestions quality groups are expected to come up with. 9.6 Quality of Work Life Based on the research of Eric Trist et al. at the Tavistcock Institute of Human Relations in London, this approach looked both at technical and human sides of organizations and how they

are interrelated. QWL programs, in general, require joint participation by union and management in the process of work-designing, which consequently result into high level of task variety, appropriate feedback and employee discretion. The most distinguishing feature of QWL program is the development of self-managing work groups which consist of multi-skilled workers. 9.7 Parallel Learning Structures Parallel Learning Structures (also known as Communities of Practice) promote innovation and change in large bureaucratic organizations while retaining the advantages of bureaucratic design. Groups representing various levels and functions work to open new channels of communication outside of and parallel to the normal, hierarchical structure. Parallel Learning Structures may be a form of Knowledge Management. Knowledge Management involves capturing the organization’s collective expertise wherever it resides (in databases, on paper, or in people’s heads) and distributing it to the people who need it in a timely and efficient way. It Consists of a steering committee and a number of working groups that: · Study what changes are needed in the organization, · Make recommendations for improvement, and · Then monitor the resulting change efforts. 9.8 Total Quality Management It is a long term effort that orients all of an organization’s activities around the concept of quality. It is very popular in USA in 1990s.TQM pushes decision making power downwards in the organization, provides relevant information to all employees, ties reward to performance and increase workers knowledge and skills through extensive training. It is also called continuous quality improvement. A combination of a number of organization improvement techniques and approaches, including the use of quality circles, statistical quality control, statistical process control, self-managed teams and task forces, and extensive use of employee participation. Features that characterize TQM: · Primary emphasis on customers. · Daily operational use of the concept of internal customers. · An emphasis on measurement using both statistical quality control and statistical process control techniques.

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

TQM pushes decision making power downwards in the organization. It is also called continuous quality improvement. Drucker 3.5 4.11 Terminal Questions 1.2 3. 9.12 Answers to SAQs and TQS SAQs: 1. Refer section 9. ties reward to performance and increase workers knowledge and skills through extensive training. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. 9. Refer section 9. Write a short note on Total Quality Management.3 2. Refer section 9. provides relevant information to all employees. Quality circle Answers to TQs: represents a participative approach to employee involvement in problem solving and productivity improvement. Discuss Socio Technical Systems? 2.Refer section 9. What are the advantages of structural interventions? 3. Intervention 2.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . . Explain Management By Objectives? 4.

Objectives: . 10. Self Assessment Questions 10. organizational problems may repeat. and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other. Nothing is permanent except change because change is permanently changing.4 Causes for Resistance to Change.6 Methods of Reducing Resistance to Change.8 Terminal Questions 10.1 Introduction Change in Organizations are increasingly realizing the fact that change is the price of the survival. In this dynamic and fluid environment. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented).2 Nature of Change 10.5 Impact of Change on the Future Manager 10. Hence.MU0002-Unit-10-Managing Organization Development Unit-10-Managing Change in Organization Development Structure: 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.7 Summary 10.3 Resistance to Change 10.9 Answers to SAQs and TQs 10.1 Introduction Objectives 10. cope with the ongoing changes successfully in the first instance.

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

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

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

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

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

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

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

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

typically by way of computer network links. Involvement: Involvement is a process through which those who are affected by the change are brought to understand the change. the problems can be solved at the same level. In many cases. This requires that managers think differently and teach employees to think differently. both at the formal and informal levels.” The newer organizational structures use term problem solving. at the level of individual and at the level of group. However. In addition. the role of formal authority in implementing a change may not be effective all the times.” Problem of overcoming resistance to change can be handled at two levels. For this purpose. Unless this problem is overcome properly. the following efforts can be taken: 1.6 Methods of Reducing Resistance to Change One of the basic problems in managing change is to overcome people’s resistance to change successfully. through group dynamics. Efforts at Individual Level A change is likely to affect some people in some way. It may affect only a few while others may not be affected. Locavini observes that “the secret of real success is effective management of the emotional vulnerability that accompanies organizational change. Stephen Robbins suggests that “…… managers in virtual structures spend most of their time coordinating and controlling external relations. It implies explanation and . managers must be more skilled at reading the environment and grasping the big picture. As organizations must be better equipped to respond to change in their external environment. even the impact of change may be dysfunctional if change is imposed upon the people by the use of formal authority. Problem solving now involves the people who are experts in the issue – not necessarily those in high positions in the organization. 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. strategic directions for the company must be identified in light of these changes. 10. the effect of the change may not be as functional as envisaged by the management. Therefore. When the resistance comes from the people at individual levels. They need to be adept at reading the trends in the environment and then determining what they mean specifically for their own organization. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups.The ultimate goal is to improve organizational performance by cutting production time or time to market. For example. it can make effectively by managing resistance effectively. this is not a one-time action. rather should be looked upon as a dialogue which continues over a period of time. that is. More fluid structures require that managers improve their strategic orientation.

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

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

Explain the nature of change? 2. Changes may be influenced by external and internal factors.4 3. 10. People tend to resist many types of changes because new habits or sacrifices are required. engaging in a work showdown.10. implicit. or the like. Discuss the methods of reducing resistance to change. group resistance and vested interests.2 2. Reference: . a change is proposed and employees quickly respond by voicing complaints. Why do organizations resist change? 3. both at the formal and informal levels. threatening to go on strike. Organizational change is the alteration of work environment in an organization.8 Terminal Questions 1. Refer section 10.9 Answers to SAQs and TQS SAQs: 1.7 Summary Change is inevitable. that is. Problem of overcoming resistance to change can be handled at two levels. psychological factors. at the level of individual and at the level of group. It implies a new equilibrium between different components of the organization. Refer section 10. For instance. 10. Participation Answers to TQs: 1. It is easiest for management to deal with resistance when it is overt and immediate. Refer section 10. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. Resistance can be overt. or deferred. Organizational change 2. Economic factors. immediate.6. social factors. through group dynamics. Psychological factors 3.

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

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