MU0002-Unit-01-Introduction to Management

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Money. 1. Lower level managers require and use a greater degree of technical skill and managers at higher levels use a greater degree of conceptual skill.10 Answers to SAQs and TQs SAQs: 1. organisations. Self Assessment Questions in the 1. Management 2. _________. Explain its characteristics.8 Summary Management is concerned with getting things done through other people. 3. Management creates ________ and motivates employees to work harder and better by providing necessary guidance.government offices. It is the management which transforms physical resources of an organization into productive resources. ___________. public organisations sector and non-business private sector. 1. Bring out the difference between Administration and Management. Discuss the importance of management. Managers perform different roles to discharge their responsibilities. motivating and controlling the efforts of others towards a specific objective. manpower 3.9 Terminal Questions 1. co-ordinating. middle and lower. machinery and methods or ways of doing things) depends to a great extent on the quality of management. Human skills are important at all managerial levels. materials. 1. Define management. 2. Five M’s of management (________. There are three levels of management-top. 3. 2. __________is principally the task of planning. teamwork . Still management is not completely a profession. Management is largely found at the middle and lower levels and administration is found at the higher levels. counseling and effective leadership.

2.2 Process of Management 2. Refer section 1. Refer section 1. Refer section 1.4 Organizing 2.1 Introduction Objectives 2.3 2.5 Staffing 2.10 Answers to SAQs and TQs . MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.9 Terminal Questions 2.5 3.6 Directing 2.1.7 Motivating Self Assessment Questions 2.8 Summary 2.3 Planning 2.Answers to TQs: 1.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .

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

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

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

Are there new competitors? 3. operational plans are based on the organization’s tactical plans. or outcomes of an organization against similar measures from other internal or external organizations. earnings per share. Are our rivals weak? 5. In which areas does the competition meet customer needs more effectively? 2. as well as gap analysis. Comparing the organization to external benchmarks (the best practices) is used to assess current capabilities. tactical. effectiveness. Benchmarking systematically compares performance measures such as efficiency. Objectives are also called performance goals. Is there a shortage of resources? 4. Strategic. The SWOT analysis is used as a baseline for future improvement. Are market tastes changing? 5. return on investment. Develop related strategies (tactical and operational) Tactical plans are based on the organization’s strategic plan. What substitute products exist? In general terms. the best strategy is one that fits the organization’s strengths to opportunities in the environment. In turn. What are the emerging technologies? 6. Is there a possibility of growth of existing market?) Identifying threats involves the following: 1. Set goals and objectives Strategic goals and objectives are developed to fill the gap between current capability and the mission. These are specific plans that are needed for each task or supportive activity comprising the whole. What is the strength of the economy? 4. It also helps in setting minimum acceptable standards or common-sense minimums. etc. What are the new regulations? 6.3. and operational planning . organizations have longterm objectives for factors such as. They are aligned with the mission and form the basis for the action plans of an organization. Generally.

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

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

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

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

recognition. self-motivated. autonomy and empowerment.· Safety: Includes security and protection from physical and emotional harm · Social: Includes affection. Social. and friendship · Esteem: Includes internal esteem factors. Herzberg’s Two Factor Theory . and external esteem factors. There is a chance for greater productivity by giving employees the freedom to perform to the best of their abilities without being bogged down by rules. Theory X – In this theory management assumes employees are inherently lazy and will avoid work. It is also assumed that workers generally place security above all other factors and will display little ambition. self-direction. Workers need to be closely supervised and a comprehensive system of controls and a hierarchical structure is needed to supervise the workers closely. and attention · Self-actualization: The drive to become what one is capable of becoming. achieving one’s potential. Physiological and safety needs are described as lower-order. It is also believed that. 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-fulfillment Maslow separated the five needs into higher and lower orders. Higher-order needs are satisfied internally. From the above. anxious to accept greater responsibility. such as. status. and self-actualization are classified as higherorder needs. whereas. Theory Y assumes that higher-order needs dominate individuals. Theory Y – In this theory management assumes employees may be ambitious. esteem. if given the chance employees have the desire to be creative and forward thinking in the workplace. externally. autonomy. acceptance. self-respect. such as. it is clear that Theory X assumes that lower-order needs dominate individuals. It is believed that employees enjoy their mental and physical work duties. and exercise self-control. if they can. belongingness. and achievement. Lower-order needs are predominantly satisfied. includes growth.

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

9 Terminal Questions 1. Write a short not on directing. Reference 2.5 3.10 Answers to SAQs and TQs SAQs: 1. Reference 2.2. 2. SWOT 3. Reference 2. Follett 2.1 Introduction Objectives . Explain Staffing in detail 3.6 Copyright © 2009 SMU Powered by Sikkim Manipal University . What is planning? 2. Staffing Answers to TQs: 1.3 2. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3.

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

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

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

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

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

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

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

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

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

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

3. OD can be utilized for the following results in the organization: 1. To place emphasis on humanistic values and goals consistent with these vales. To increase the level of self and group responsibility in planning and its implementation. substantial disenchantment with OD became evident because of many controversial OD techniques like sensitivity training. 5. 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. as a long-term strategy for organizational change. To create an environment in which authority of assigned role is augmented by authority based on knowledge and skills. Research studies have also failed to conclude . Long-range strategy for organizational innovation and renewal. To increase the level of trust and mutual emotional support among all organization members. To increase the level of enthusiasms and personal satisfaction at all levels of the organization. has invited sharp criticism as a strategy to increase organizational viability and effectiveness because many OD programmes have failed. 2. however. 3. however. 4. it is quite suitable for improving organizational performance on long-term basis. Specialist No special requirement.8 Problems in Organization Development Organization development. horizontally. In early 60s.Approach Time Educative and training Short-range. confrontation techniques.7 Role of Organization Development Organization development. Since OD attempts to bring comprehensive change in the organization. Trained specialists required. OD became quite successful with many professional consultants offering high services and programmes to various organizations. and laterally. To treat each human being as a complex person with a complex set of needs important in his work and his life. 7. 6. plays key role in organizational improvement. 3. etc. Problem-solving approach. Much of the enthusiasm created at the beginning of OD programmes vanished over the period of time. To increase the openness of communications in all directions-vertically. Thus.

OD fails to motivate people with low level of achievement needs. In general. 3. . There should be proper use of OD interventions. 5. For example. OD programmes are often quite costly. 4. 4. OD tries to achieve ideal without taking into account real. 2. Only fully competent OD consultant should be pressed for the service and he should develop understanding with internal change agents.significant contributions of OD in all organizations. Resistance to change is a natural phenomenon and OD puts undue pressure to change. in order to make best use of OD efforts. These should be based on the specific needs of the organization. and (iii) failure to increase employee motivation through participation and development of personal growth and self-esteem. Hence. 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. People realized its dysfunctional aspects only when many OD efforts failed. 5. 3. Thus. and (ii) failure to correctly model appropriate personnel behaviour in the programme. There should be genuine support of OD programme from top management. it may be emphasized that OD programmes are likely to fail when these are not programmes and hence failure. Enough time should be allowed so that the effects of OD programme are realized. and only large organizations can afford this luxury without any guarantee of positive outcome. OD is criticized on the following lines: 1. If an organization is laden with these people. Therefore. 2. However. OD can not be taken as panacea for curing all organizational problems. Some of these efforts are as follows: 1. some specific efforts are required. It can be seen that many of these criticisms are based on reality and experience. it can be visualized that OD itself may not be dysfunctional but application may be. particularly in bottom-line ones. it is useless to try OD. Therefore. 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. Organization must formulate the objectives of OD programme very clearly and specifically. There is discrepancy between ideal and real situations.

OD focuses on culture and processes. 3. 2. Empowerment . 4. But OD aims at changing the entire organizational climate where the managers work. Top management 2. collaborative. Explain its salient features.10 Terminal Questions 1. ––––––– is associated with “Liberation Management”. Management development aims at developing the managers individually. State the various roles of OD. There is no ‘quick fix’ to organizations’ problems. The participative.Self Assessment Questions 1. Tom Peters 3. 3. OD is the ultimate remedy for organizational improvements and developments. 3.11 Answers to SAQs and TQs SAQs: 1. _____________is a short-term strategy. problem-focused ‘nature of OD’ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. What are the problems involved in the implementation of OD? 3. Organization development should be led and supported by –––––––. Explain the various characteristics of OD. Distinguish between ‘organizational development’ and ‘management development’. ––––––––– is a process which includes leadership behaviours and human resource practices. Who is associated with the “Learning Organizations”? 5.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. 4. 5. 2. Define OD. 3. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides.

MU0002-Unit-04.7 5.2 Survey Feedback 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 2. Refer section 3.6 4. Refer section 3.6 Team-building .Organization Development – Interventions Unit-04.1 Introduction Objectives 4.5 Leadership Development 4. Refer section 3.4 Grid Training 4. Management development Answers to TQs: 1.3 Process Consultation 4.4.Organization Development – Interventions Structure: 4. Peter Senge 5. Refer section 3.3 3. Refer section 3.

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 level. Further. education and training.8 Change Agents 4. interventions may be required to change people at all these levels. Nevertheless.10 Summary 4. inter-group activities. and organizational culture. the classification appears to be more relevant because it may specify the . management grid. People’s behaviour may be relevant to understand at individual level. Thus. This classification of OD interventions is very comprehensive and many activities do not strictly form the part of OD as process of organizational improvement but other methods of improving the performance of the organization. mediation and negotiation activities.1 Introduction OD interventions refer to various activities which a consultant and client organization perform for improving organizational performance through enabling organizational members better manage their behaviour. Interventions constitute the action thrust of organization development. such a classification of interventions may not put them into mutually exclusive categories as a particular intervention may be applied at more than one level. many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others.11 Terminal Questions 4. techno-structural activities. For example.9 Role of Change Agents Self Assessment Questions 4. various consultants and practitioners have different opinions about the activities which can be included in interventions. interpersonal level.4.7 Inter Group Development 4. team-building. 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. work group.” There are various OD interventions and they are classified in different ways. process consultation. they make things happen. and organizational level. group level. French and Bell have suggested twelve families of OD interventions: diagnostic. However. survey feedback. Therefore. the classification of OD interventions shows variation.12 Answers to SAQs and TQs 4.

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

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

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

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

The skills relating to planning. They have maintained that “managerial and team effectiveness can be taught to managers with outside assistance. in spite of these criticisms. and alike. Furthermore. Inter-group Development: At this phase. Implementing the Ideal Strategic Model: The implementation stage includes the building of the organization on the model of ideal organization on the basis of concepts developed under stage 4.5 Leadership Development . it appears that this type of educational strategy can help to make significant contributions to organizational effectiveness. The analysis will bring out the shortcomings that may be there. grid training has some positive contributions for organizational effectiveness. Evaluation of Grid Training Most of the support of grid training has come from its originators-Blake and Mouton. they maintained the same stand. some of them have not supported the claims made by Blake and Mouton. the various programmes may be redesigned. 2. Though research studies on the application of grid training are not many. Grid training programme is criticized on the basis that it lacks contingency approach and. The members of the organization are trained for achieving this excellence. 4. and problemsolving are also developed. Developing Ideal Strategic Corporate Model: At this stage. Systematic Critique: In this stage. the various efforts from phase 1 to phase 5 are evaluated and critical analysis is made. Managerial grid: It covers various aspects of assessing managerial styles. Teamwork Development: The focus in this stage is to develop teamwork by analyzing team culture. In this light. The strategy is then implemented. 5. The action is designed to identify the characteristics of the ideal organization. The thrust is on moving groups from conflict to co-operation. the focus shifts to the total organization and to develop skills necessary for organizational excellence. grid training is a non-rigorous method. objective-setting. and teamwork. Each group separately analyses the ideal inter-group relations. Each group may be given assignment to evolve strategy for making ideal organization with the help of the consultant. therefore. Further.” In a later work. The individuals try to learn to become managers by practice. Action steps to move towards the ideal are developed and assigned to individuals who may be engaged in building co-operative inter-group relationships. it discounts reality.1. problem-solving. the focus is on inter-group behaviour and relations. 3. traditions. 6. communication skills. 4.

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

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

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

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

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

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

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

11 Terminal Questions 1. feedback of information. inter-group and total organization levels. knowledge and processes necessary for effectiveness at the individual. skills and change in behavior. evolving best strategies for change by assessing alternatives and the important stages in a change project where the change agent has to be a Researcher. Grid Training was developed by –––––––––––– 3.10 Summary OD intervention strategies are various activities which a consultant and client organization performs for improving organizational performance.Training is required for enhancing knowledge. Teambuilding is most important. 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. Self Assessment Questions 1. The first step in survey feedback is ______ usually by a consultant based on a structured questionnaire. attitudes and beliefs. It focuses on skills. 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. 2. What is Grid Training? How does it help in improving individual performance in an organization? 2. Training is used both in ‘content orientation’ and process orientation’. ________is antithesis of synergy in team-work which suggests that people working together on a common task may actually decrease their individual efforts. Survey feedback usually proceeds with sequential activities involving data collection. widely accepted and applied OD intervention for organizational improvement. Sensitivity training focuses on small group ranging from ten to twelve. Grid training focuses on individuals and groups to assess their own strengths and weaknesses. In process consultation. generation of new behavioral science knowledge. What is survey feedback as an intervention of OD? How does it provide base for other OD interventions? . group. diagnosis. developing action plans based on feedback and follow-up. 4. Useful hypothesis are to be formulated and tested. Data collection. team-work does not necessarily spurt group efforts 4.

Social loafing Answers to TQs: 1. Beliefs in Organization Development Unit-05-Values. and Beliefs in Organization Development Structure: 5.1 Introduction Objectives 5. Explain Change agents and discuss the role of change agents in detail. Assumptions. Refer section 4. Refer section 4. 3. Refer section 4.2 3. Refer section 4. 4. Data collection 2.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .4 2.2 Definitions and .6 4.12 Answers to SAQs and TQs SAQs: 1. MU0002-Unit-05-Values.3. What is team-building? What are the stages of life cycle of a team? 4. Blake and Mouton. Assumptions.

7 Terminal Questions 5. shaping the goals and methods of the field and distinguishing OD from other improvement strategies. Most of these beliefs were formulated early in the development of the field. · List the chronology of events of values.2 Implications for Dealing with Groups 5. it is a cognitive fact for the person.6 Summary Self Assessment Questions 5. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers. 5. and beliefs constitutes an integral part of organization development. Objectives: After studying this unit. beliefs and assumptions.5.3 Implications for Designing and Running Organizations 5.2 Definitions A belief is a proposition about how the world works that the individual accepts as true. · State the implications of OD values and assumptions.5.5. .1 Introduction A set of values.1 Implications for Dealing with Individuals 5.3 Chronology of Events in Management and Organization Thought 5. you will be able to: · Explain the meaning of values.8 Answers to SAQs and TQs 5. · Give the statement of OD values and assumptions.5.4 Early Statements of OD Values and Assumptions 5. assumptions. beliefs and assumptions.5 Implications of OD Values and Assumptions 5. and they continue to evolve as the field itself evolves.

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

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

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

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

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

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

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

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

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

The concept of –––––––––– was introduced by MaxWeber.8 Answers to SAQs and TQs SAQs: 1. Write a note about F. F. 5.2 2. Taylor’s principles of scientific management. and assumptions are all –––––––––– facts. 2. 5. 3. Cognitive 2.3 . _______________ gave theory X and theory Y. W. Hawthorne experiments 5. Taylor 3.3 3. beliefs and assumptions. Refer section 5. The outcome of –––––––– was that people were not cogs and organizations were not machines. Bureaucracy 4. values. Refer section 5. 3.7 Terminal Questions 1.W. Refer section 5. 5. Douglas McGregor Answers to TQs: 1. Values. __________ is associated with scientific management. beliefs. What was the outcome of Hawthorne Experiments? 4.1. 2. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. Define concepts. State the assumptions of Theory X and Theory Y. 4.

1 Introduction Objectives 6.4 Porras and Robertson Model of Organizational Change 6.3 The Burke-Litwin Model of Organizational Change 6.2 Beyond the Quick Fix 6.1 The Nature of Systems 6.3 Systems Theory 6.3.1 Kurt Lewin and Friends 6.2.4 Participation and Empowerment .3.2.3 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 Models and Theories of Planned Change 6. Refer section 5.2 Congruence among System Elements 6. Refer section 5.4.4 Open Systems Thinking 6.2. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.3 5.2.3 Socio-technical Theory and Open Systems Planning 6.3.3.

In this discussion. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs. Objectives: After studying this unit.7 A Normative – Re-educative Strategy of Changing 6.8 Applied Behavioural Science 6. · Describe the parallel learning structures. We will examine the following concepts: . · Realize the importance of teams and teamwork.12 Answers to SAQs and TQs 6. Here we describe what we believe are the most important underpinnings for the field.1 Introduction This unit describes the foundations of organization development theory and practice.6.11 Terminal Questions 6. · Explain the terms ‘participation’ and ‘empowerment’.5 Teams and Teamwork 6. · Explain normative-re-educative strategy of changing The knowledge base of OD is extensive and is constantly growing.9 Action Research Self Assessment Questions 6.10 Summary 6. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning. · Explain systems theory.6 Parallel Learning Structures 6. you will be able to: · Explain various models and theories of planned change. art and science which form the knowledge base upon which OD is constructed.

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

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

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. terminating the client-consultant relationship. is to integrate the new behaviours into the person’s personality. Similar models have been developed by Kolb and Frohman and by Burke. Phase 3: Clarifying or diagnosing the client system’s problem. Jeanne Watson. stabilizing the changes requires testing to see if they fit-fit with the individual. Phase 2: Establishing a change relationship. refreezing. The person acquires information and evidence showing that the change is desirable and possible. They expanded the three-stage model into a seven-stage model representing the consulting process. These "road maps" are useful for thinking about change. This model has five sequential stages: 1) Initiating the program. This seven-stage model lays out the logical steps involved in OD consulting. Phase 6: Generalizing and stabilizing change. and Bruce Westley. Their seven stages are as follows: Phase 1: Developing a need for change. . This phase corresponds to Lewin’s refreezing phase. and attitudes. Phases 3. for example. 6. Phase 4: Examining alternative routes and goals. In this phase a client system in need of help and a change agent from outside the system establish a working relationship. This phase corresponds to Lewin’s unfreezing phase. and 5 correspond ro Lewin’s moving phase.In stage 2. the person undergoes cognitive restructuring. that is. 4. Phase 5: Transforming intentions into actual change efforts. Phase 7: Achieving a terminal relationship. The primary task in stage 3.2. moving.2 Beyond the “Quick Fix” A comprehensive change model by Ralph Kilmann specifies the critical leverage points for organizational change. This motivating evidence is gained by. identifying with ex-smokers and learning about the health risks of smoking. and fit with the individual’s social surroundings. That is. establishing goals and intentions of action.

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

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

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

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

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

5: A Change-based Organizational Framework 6. Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950.3 Systems Theory A second foundation of organization development is systems theory. when taking a systems approach. Thus." Kast and Rosenzweig define system as "an organized. and delineated by identifiable boundaries from its environmental supra. one begins by identifying the individual parts and then seeks to understand the nature of their collective interaction. 6.Fig. The words ‘arrangement’ and ‘interrelated’ describe interdependent elements forming an entity. unitary whole composed of two or more interdependent parts. 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. components. or subsystems." To summarize.system. . This section explains systems theory." Von Bertalanffy refers to a system as a set of "elements standing in interaction. and interrelatedness among elements in a set that constitutes an identifiable whole or gestalt. interconnectedness. system denotes interdependency. which views organizations as open systems in active exchange with their environment. that is the system. Fagen defines system as "a set of objects together with relationships between the objects and between their attributes." Hanna says: "A system is an arrangement of interrelated parts. describes the characteristics of systems. and shows how systems theory enhances the practice of OD.

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

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

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

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

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

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

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

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

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

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

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

8: Composition of Applied Behavioural Science Organization development is both a result of applied behavioural science and a. The two bottom inputs. Kurt Lewin. Action research is especially well-suited for planned change programs. and doing or implementing change efforts. and research leading to social action… This by no means implies that the research needed is in any respect less scientific or "lower" than what would be required for pure science in the field of social events. the two top in puts. Fig. form of applied behavioural science. and action planning based on the data. 6.9 Action Research The action research model – a data-based. feedback of the data to the client system members. and finally evaluating the effects of the treatments. It is a type of action-research. problem-solving method that replicates the steps involved in the scientific method of inquiry underlies most OD activities. who developed the concept of action research. represent contributions from applied science.From this "practice theory. had this to say about it: “The research needed for social practice can best be characterized as research for social management or social engineering. I am inclined to hold the opposite to be true. Action research is a method that combines learning and doing – learning about the dynamics of organizational change." the OD practitioner works: first diagnosing the situation. behavioural science research and two behavioural science theory. then selecting and implementing treatments based on the diagnosis.” Concluding Comments: . 6. it is a program of applying behavioural science to organizations. represent contributions from pure or basic science. Action research involves three processes: data collection. perhaps more accurately. practice research and practice theory. a comparative search on the conditions and effects of various forms of social action.

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

Refer section 6.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .2. Refer section 6.2.2 Characteristics of Organization Culture Culture and .2 3. What are the features of systems theory of organizational development? 5.4.12 Answers to SAQs and TQs SAQs: 1.” Comment on this statement.3 4. System 5. Refer section 6. “Work teams are building blocks of organizational development.1 2. 6.1 Introduction Objectives 7.Refer section 6. Refer section 6. Synergy Answers to TQs: 1. Transactional change 4.2. Ralph Kilmann 3. MU0002-Unit-07-Organization Climate Unit-07-Organization Culture and Climate Structure: 7. Unfreezing 2.3 5.

Members of an organization soon come to sense the particular culture of an organization. thinking. despite the best-laid plans.5 Developing and changing Organization Culture Self Assessment Questions 7. Culture is one of those terms that’s difficult to express distinctly. 7. – similar to what you can use to get a feeling about someone’s personality. what they brag about. norms and tangible signs (artifacts) of organization members and their behaviors. Practitioners are coming to realize that. but also changing the corporate culture as well. what members wear. organizational culture is the personality of the organization. Comprehensively organization culture is the pattern of basic assumptions that is invented. You can tell the culture of an organization by looking at the arrangement of furniture. · Describe different types of Organization Culture · Explain organization culture and effectiveness. organizational change must include not only changing structures and processes.6 Summary 7. Culture is comprised of the assumptions.7 Terminal Questions 7. and feeling in relation to these problems (Schein. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. values.1 Introduction Basically. etc.4 Organization Culture and Effectiveness 7. 1986). you will be able to: · Understand Organization Culture. and validated enough to be taught to new members as the correct ways of perceiving. Martin and Meyerson. For example. the culture of a large. for-profit corporation is quite different than that of a hospital which is quite different than that of a university. The concept of culture is particularly important when attempting to manage organization-wide change. but everyone knows it when they sense it.8 Answers to SAQs and TQs 7.7.3 Types of Organization Culture. Objectives: After studying this unit. . discovered.

Low absenteeism and high efficiency. Hierarchical leaders are typically coordinators and organizers who keep a close eye on what is happening. 6. internal and external are viewed in market . and the way members of the organization conduct themselves with customers or other outsiders. Which in many organizations come down to “Do not do too much. 4. Some of the most readily agreed upon are the following: 1. Note that the Market organization is not one which is focused just on marketing. 7. Philosophy: These are policies that set forth the organization’s beliefs about how employees and/or customers are to be treated. they use common language. Standards of behavior exist.· Discuss about developing and changing organization culture. Hierarchies have respect for position and power. 7. New-comers must learn those “ropes” in order to be accepted as full-fledged members of the group. and in particular taking note of transaction cost. including guidelines on how much work to do.2 Characteristics of Organization Culture Organizational culture has a number of important characteristics. but one where all transactions. Dominate value: These are major values that the organization advocates and expects the participants to share. 2. do not do too little?” 3. processes and procedures. Observed behavioral regularities. this was considered the only effective way of organizing and is still a basic element of the vast majority of organizations. terminology. and rituals related to deference and demeanor. the way participants interact. Norms. They often have well-defined policies. When organizational participants interact with one another. 5.3 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. Typical examples are high product quality. Market The Market organization also seeks control but does so by looking outward. Rules: There are strict guidelines related to getting along in the organization. Organizational climate: This is an overall “feeling” that is conveyed by the physical layout. For many years.

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

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

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

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

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

Factors in organizational effectiveness include casual variables. 3.8 Answers to SAQs and TQs SAQs: 1. Finally. Discuss the development and change of organizational development. Effectiveness of an organization can be increased through economic man approach and administrative man approach. 7. Organizations to be successful must be efficient and effective. Refer section 7.2 2. effectiveness through adaptive-coping cycle has been discussed.3 3.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . Artifacts 2. and strategic constituencies approach. 7. Refer section 7. Refer section 7. 2. Explain the characteristics of organization culture. system-resource approach.goal approach. Briefly explain different types of organizational culture. behavioural approach.7 Terminal Questions 1. Causal variables Answers to TQs: 1.Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. intervening variables and end-result variables and there exists interrelationship among these variables. . Organizational effectiveness can be measured through various approaches. Market 3.

4 Theories about the Sources of Social Power 8.8 Acquiring and using Power Skills Self Assessment Questions 8.3 Two Faces of Power 8.1 Introduction Politics and Power and politics. and for change to occur in an organization. Organization Development Unit-08. Politics and Organization Development Structure: 8.5 Organizational Politics Defined and Explored 8.Power. As Warner Burke observes: "Organization development signifies change.7 Operating in a Political Environment 8.9 Summary 8. must be understood if one is to be effective in organizations. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics.11 Answers to SAQs and TQs 8. power must be exercised. In this unit.MU0002-Unit-08Power. That criticism was essentially correct for many years although it is less valid .10 Terminal Questions 8. indisputable facts of organizational life.1 Introduction Objectives 8. we examine power and politics in relation to organization development.2 Power Defined and Explored 8.6 The Role of Power and Politics in the Practice of OD 8.” Organization development has been criticized for not taking into account power in organizations.

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

with collective. the positive face of power seeks to empower self and others. 8. persuading-these are examples of positive uses of power. or positive. suggests that many problems with power stem from the goals of persons with power and the means they use.take many forms. How do some people come to possess power? How is power generated. influencing. selling." · French and Raven’s "Bases of Social Power. unsocialized need to dominate others. 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. . bestowed. coercing-these are examples of negative uses of power. both positive and negative. an authority or power dimension is required. for organizations to function. not the possession of power as such. 8.4 Theories about the Sources of Social Power Power exists in virtually all social situations. being exercised. influence. Leading. absolute power corrupts absolutely. This positive face of power enables others to reach their goals as well as lets the person exercising power reach his or her goals. The positive face of power is characterized by a socialized need to initiate. or acquired? In this unit." · Salancik and Pfeffer’s "Strategic-Contingency Model of Power. The negative face of power seeks to dominate and control others. Roberts came to a similar conclusion in her study of "collective power" and "competitive power. According to him. Power per se is probably neither good nor bad although Lord Acton observed that "power tends to corrupt. We think this distinction provides a good insight into the concept of power. we will examine four different views about who gets power and how: · Emerson’s "Power-Dependence theory. forcing. the negative face of power is characterized by a primitive. however.3 Two Faces of Power David McClelland proposed an important distinction when he identified "two faces of power" – positive and negative. Crushing. power being the predominant mode. hurting." A moment’s reflection. and lead." Her research in four organizations showed both kinds of power. In fact. It is especially salient in coordinated activities such as those found in organizations. In most organizations the positive face of power is much more prevalent than the negative face of power. McClelland observed that while power has a negative connotation for most people. it is through the use of power that things get done in the world." · Mintzberg’s Observations on the Genesis of Power in Organizations.

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

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

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

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

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

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

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

visibility-how much one’s work is seen by . a person’s power comes from two main sources. even those of little power. criticality-how important one’s job is flexibility-the amount of discretion in the job. influence key powerholders to accept the OD program. in turn. (Legitimacy refers to abiding by and promoting the values of the organization. personal power and position power. The four stages are: Phase I Consolidating Power to Prepare for Change Phase ll Focusing Power on Strategic Consensus Phase Ill Aligning Power with Structure and People Phase IV Realizing Power through leadership and Collaboration These stages are the means the OD consultant uses to "take the high road" mentioned in the previous quotation-build a power base. The power structure will realize that collaborative power is preferable to manipulation and deception.· 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. then utilize a facilitative OD process in which the powerholders work on strategic business issues using consensus decision making to develop a corporate strategy. how-to book on power and organization development is well worth studying. effort. personal attraction. This practical. and legitimacy. Personal power. Whetton and Cameron’s model is shown in following figure. In this model.) Position power derives from five sources: Centrality-access to information in a communication network. the authors propose a four-stage model for using the OD process to help the power elite transform the organization in ways beneficial for all concerned. which in turn will protect the interests of all concerned. arises from expertise.

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

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

Referent power 4. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9. McClelland 3. Describe briefly various theories of power. 5.2 2.4 3.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 8. Define organization politics.1 Introduction . Personality Answers to TQs: 1. Power 2. 8. Identify the bases of individual power and the respective strategies for their success. Explain the role of power and politics in the practice of OD. Harold Lasswell 5.5 4. Refer section 8.11 Answers to SAQs and TQs SAQs: 1. 3.6 5. Refer section 8.Refer section 8. 4.2. Refer section 8.

In this dynamic and fluid environment.4 Management By Objectives 9.2 Meaning and Definitions 9.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. These programs are derived from careful diagnosis.Objectives 9.9 Reengineering Self Assessment Questions 9.10 Summary 9.7 Parallel Learning Structures 9. Nothing is permanent except change because change is permanently changing.5 Quality Circles 9. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design.3 Socio Technical Systems 9. One important intervention technique is Technostructural interventions because these are related to technical and structural issues such as how to divide labour and how to coordinate department which is related to Restructuring organization.12 Answers to SAQs and TQs 9. organizational problems may repeat. Objectives: . These methods are receiving increasing attention in Organization Development. An organization development intervention is a sequence of activities.8 Total Quality Management 9. These interventions vary from standardized program that have been developed and sometimes tailored program.6 Quality of Work Life Projects 9. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future. actions. events intended to help an organization improve its performance and effectiveness.11 Terminal Questions 9.

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

Cummings. consciously directed towards the effective and efficient achievement of organizational objectives. Its basic idea has been derived from the concept of participative goal setting as a technique of OD. 9. Pasmore. 1967.critically. 1988): • Determining the environmental demands • Creating a vision statement • Educating organizational members • Creating the change structure • Conducting socio-technical analysis • Formulating re-design proposals · Defining the scope of the system to be re-designed · Implementing recommended changes · Evaluating changes 9.4 Management by Objectives Management by objectives (MBO). Since then. its definitional aspect. processes and functions to create a balance between the organization and its changing external environment. though not strictly an OD intervention in the sense in which other interventions have been discussed so far.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. it has been defined as follows: MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. The term MBO was coined by Drucker in 1964 when he emphasized the concept of managing by results. a predictable cost Implementation of group strategies involves significant long-term man-hour and consultant costs.” . 1976. is a technique and system which helps in improving organizational performance. It could involve the following steps (Foster. It endeavors to re-design the organization’s structure. many business and nonbusiness organizations have adopted this in some form or the other. therefore. Though there are some variations in the practices of MBO and.

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

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

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

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

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

Intervention 2.2 3.12 Answers to SAQs and TQS SAQs: 1. TQM pushes decision making power downwards in the organization. Explain Management By Objectives? 4. Write a short note on Total Quality Management. What are the advantages of structural interventions? 3. Refer section 9. ties reward to performance and increase workers knowledge and skills through extensive training. It is also called continuous quality improvement. Quality circle Answers to TQs: 1. .5 4. Refer section 9.3 2.circle represents a participative approach to employee involvement in problem solving and productivity improvement. 9.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .11 Terminal Questions 1. 9. Refer section 9. Drucker 3. It consists of small group of employees who meet voluntarily to identify and solve productivity problems.Refer section 9. provides relevant information to all employees. Discuss Socio Technical Systems? 2.

2 Nature of Change 10. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented). cope with the ongoing changes successfully in the first instance.MU0002-Unit-10-Managing Organization Development Unit-10-Managing Change in Organization Development Structure: 10.4 Causes for Resistance to Change.6 Methods of Reducing Resistance to Change. 10. Objectives: . Nothing is permanent except change because change is permanently changing.9 Answers to SAQs and TQs 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.3 Resistance to Change 10.5 Impact of Change on the Future Manager 10.8 Terminal Questions 10.7 Summary 10. and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other. Self Assessment Questions 10. Hence.1 Introduction Change in Organizations are increasingly realizing the fact that change is the price of the survival.1 Introduction Objectives 10. In this dynamic and fluid environment. organizational problems may repeat.

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

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

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

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

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

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

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

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

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

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

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

Problem of overcoming resistance to change can be handled at two levels. a change is proposed and employees quickly respond by voicing complaints. or the like. Resistance can be overt. Participation Answers to TQs: 1. threatening to go on strike. Organizational change is the alteration of work environment in an organization.2 2. through group dynamics. Psychological factors 3. Explain the nature of change? 2. implicit.8 Terminal Questions 1. Refer section 10. social factors. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. Reference: . It implies a new equilibrium between different components of the organization. or deferred. psychological factors. 10.4 3. Discuss the methods of reducing resistance to change. Economic factors.9 Answers to SAQs and TQS SAQs: 1.10. It is easiest for management to deal with resistance when it is overt and immediate. For instance. both at the formal and informal levels. Why do organizations resist change? 3. engaging in a work showdown. Refer section 10.7 Summary Change is inevitable. group resistance and vested interests. People tend to resist many types of changes because new habits or sacrifices are required. Organizational change 2. immediate. 10. at the level of individual and at the level of group.6. that is. Refer section 10. Changes may be influenced by external and internal factors.

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