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

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

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

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

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

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

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

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

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

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

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

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

co-ordinating. 3. Self Assessment Questions in the 1. materials. Explain its characteristics.10 Answers to SAQs and TQs SAQs: 1.9 Terminal Questions 1. Define management. motivating and controlling the efforts of others towards a specific objective. Management creates ________ and motivates employees to work harder and better by providing necessary guidance. ___________. Five M’s of management (________. machinery and methods or ways of doing things) depends to a great extent on the quality of management. counseling and effective leadership. 3.government offices. teamwork . __________is principally the task of planning. Management 2. _________. Still management is not completely a profession. Managers perform different roles to discharge their responsibilities. organisations. Management is largely found at the middle and lower levels and administration is found at the higher levels. Money. middle and lower. There are three levels of management-top. Lower level managers require and use a greater degree of technical skill and managers at higher levels use a greater degree of conceptual skill. 2. It is the management which transforms physical resources of an organization into productive resources. 2. public organisations sector and non-business private sector. Bring out the difference between Administration and Management. 1.8 Summary Management is concerned with getting things done through other people. manpower 3. Human skills are important at all managerial levels. 1. 1. Discuss the importance of management.

8 Summary 2.9 Terminal Questions 2.1. Refer section 1. Refer section 1.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .3 2.2 Process of Management 2.7 Motivating Self Assessment Questions 2. Refer section 1.5 Staffing 2.6 Directing 2.5 3.3 Planning 2. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.10 Answers to SAQs and TQs .4 Organizing 2.Answers to TQs: 1.2.1 Introduction Objectives 2.

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

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

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

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

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

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

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

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

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

Self Assessment Questions 1.8 Summary Management is the art of getting things done through people. emphasize factors intrinsically rewarding that are associated with the work itself or to outcomes directly derived from it. 2. _______refers to the managerial function of determining and improving the manpower requirements of an enterprise. motivators describe a person’s relationship with what she or he does. such as. Extrinsic factors. but their presence does not motivate or create satisfaction. structuring. company policy. and coordinating the work components to achieve organizational goal. establishing strategies for achieving these goals. who is to do. 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. how the tasks are to be grouped. supervision. Organization involves designing. performance appraisal etc. and where decisions are to be made. . have to do with a person’s relationship to the context or environment in which she or he performs the job. When hygiene factors are adequate. It involves many sub-functions such as manpower planning. Every organization needs to plan for change in order to reach its set goal.Herzberg (1959) constructed a two-dimensional paradigm of factors affecting people’s attitudes about work. advancement. recruitment. Removing dissatisfying characteristics from a job does not necessarily make the job satisfying. responsibility. Hygiene factors on the other hand. Job satisfaction factors are separate and distinct from job dissatisfaction factors. It is the process of determining what tasks are to be done. people will not be dissatisfied. These two factors are motivators and hygiene factors and this theory is also called motivation-hygiene theory. Presence of these factors ensure job satisfaction. To motivate people. 2. interpersonal relations. Staffing refers to the managerial function of determining and improving the manpower requirements of an enterprise. 3. and developing plans to integrate and coordinate activities. neither will they be satisfied. 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. Planning involves the process of defining goals. and achievement. The absence of hygiene factors can create job dissatisfaction. recognition. such as. and salary are hygiene factors. The _____analysis begins with a scan of the external environment. In summary. who reports to whom. ____defined management as the art of getting things done through people. many related to the tasks being performed. working conditions. Motivators are intrinsic factors.

What is planning? 2.9 Terminal Questions 1. Follett 2. Staffing Answers to TQs: 1. Reference 2.1 Introduction Objectives .5 3. 2.10 Answers to SAQs and TQs SAQs: 1. SWOT 3. Reference 2.6 Copyright © 2009 SMU Powered by Sikkim Manipal University . Reference 2.2.3 2. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3. Explain Staffing in detail 3. Write a short not on directing.

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

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

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

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

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

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

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

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

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

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

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

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

––––––– is associated with “Liberation Management”. 4. OD is the ultimate remedy for organizational improvements and developments. 2. 3.10 Terminal Questions 1. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. 3. Who is associated with the “Learning Organizations”? 5. 4. 5. problem-focused ‘nature of OD’ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. ––––––––– is a process which includes leadership behaviours and human resource practices. 2.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. Define OD. What are the problems involved in the implementation of OD? 3. 3. Tom Peters 3. Organization development should be led and supported by –––––––. OD focuses on culture and processes. Top management 2. But OD aims at changing the entire organizational climate where the managers work.Self Assessment Questions 1. Explain the various characteristics of OD. _____________is a short-term strategy. Distinguish between ‘organizational development’ and ‘management development’.11 Answers to SAQs and TQs SAQs: 1. Management development aims at developing the managers individually. 3. Explain its salient features. There is no ‘quick fix’ to organizations’ problems. Empowerment . State the various roles of OD. The participative. collaborative.

Refer section 3.6 Team-building .Organization Development – Interventions Unit-04. Management development Answers to TQs: 1.3 Process Consultation 4. Refer section 3.7 5. Refer section 3.2 Survey Feedback 4.3 3. Refer section 3.6 4.2 2.1 Introduction Objectives 4. MU0002-Unit-04.4 Grid Training 4. Peter Senge 5.5 Leadership Development 4.4. Refer section 3.Organization Development – Interventions Structure: 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .

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

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

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

time. A survey feedback is not a technique in itself for change. it provides base for action for change.C are communicated to them with a view that they co-operate with the consultant.C are as follows: 1. 3. At this stage. client and consultant enter into agreement covering various aspects of consultancy services like fees. Initiate Contact: This is beginning stage of P. group norms. 2. Gather Data and Make a Diagnosis: Information is collected from various sources thorough the use of questionnaires. understand.information. This data gathering occurs simultaneously with the entire consultative process. Edgar Schein. the leading writer and consultant on P. the client’s expectations and hoped-for results are also decided. To understand how various organizational processes can be linked to objective achievement in the organization.” The basic objectives of P. spelled out at the initial stage. and interview about the problems. 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. the consultant is introduced to the organizational members and basic objectives of the P. 4.3 Process Consultation Process Consultation (P.C programme of OD. group decision-making and problemsolving. and act upon the process events which occur in the client’s environment. and spelling out services. Steps in Process Consultation Schein has suggested following specific steps which the consultant would follow in a P. 4.C is that the consultant works with individuals and groups in the organization to help them learn about human and social processes and to solve problems that stem from process events. The basic content 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. . 1. To bring desired change in the various organizational processes like leadership. etc. Define the Relationship: At this stage. observations. 2.C has defined it as follows: “The set of activities on the part of the consultant which help the client to perceive. At this stage.C) is a technique for intervening in an ongoing system. Information collected is processed to diagnose the problems and their underlying causes. communication. and inter-group co-operation and conflicts. roles and functions of group members.

2. coaching. inter-group. Process of Grid Training The basic content of grid organization development is managerial grid as discussed. However. feedback. To evaluate the styles of leadership and techniques of participation to produce desirable results. 3. the consultant disengages from the client organization by mutual agreement but leaves the door open for future involvement. enabling individuals and groups to assess their own strengths and weaknesses. . groups. Though he is involved only in suggesting the various changes in the processes. 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. Intervene: At this stage. he assists the organizational members to incorporate those changes. It is a comprehensive and systematic OD programme which aims at individuals. knowledge. significant correlation between the outcomes has not been found. P. and/or structural change. and total organizational levels. group. From this point of view. To study the organization as an interactive system and apply techniques of analysis in diagnosing its problems.C is completed. It utilizes a considerable number of instruments. 4. and the organization as a whole. Reduce Involvement and Terminate: When the work of P. Its specific objectives are as follows: 1.4 Grid Training Grid training is basically based on grid organization development developed by Blake and Mouton.C programmes. focuses on skills. However. One basic reason for this phenomenon may be the consultant’s inability to steer the organization out of troubles. like other OD intervention techniques. Evaluation of Process Consultation: Process consultation is quite in-depth activity of OD in which the consultant plays a major role. To understand the importance and rationale of systematic change. and processes necessary for effectiveness at the individual. the consultant intervenes in the organizational processes by using different interventions like agenda-setting. In the review of various P. both these problems may be overcome by engaging a suitable consultant and developing willingness among the members for change.C is also not free from criticisms. 6. P.C is very effective intervention for organizational improvement. The grid organization development consists of six phases.5. The whole orientation is to develop managerial style through the application of behavioural science knowledge.

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

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

start to accept others. Storming: After the forming stage which is mostly related to perceiving and assessing each other. They share personal information. At this stage. interaction among team members is often cautious especially when they are new to one another. At this stage. 5.1: Life Cycle of a Team Though these are not followed rigidly. and adjourning as shown below: Fig. group norms emerge to guide individual behaviour which form the basis for co-operative feelings and behaviour among The team begins to move in a co-operative fashion and a tentative balance among competing forces too is struck. Functional roles are performed and exchanged as needed. These stages are: forming. members start interaction among themselves in the form of competing for status. norming. performing. each team has to be adjourned. they often pass through several stages as they learn to work together as a team. Norming: After storming stage. they learn to handle complex problems that come before the team. different members may experience varying degree of tension and anxiety out of this interaction pattern. storming. 3. jockeying for relative control. team members get introduced to each other if they have not interacted earlier. Sooner or later. Forming: At the first stage of the life cycle. and arguing for appropriate strategies to be adopted for achieving team’s goals. Performing: When team members interact among themselves on the basis of norms that have emerged in the team. Adjourning: Adjourning is the end phase of cycle of a team. and tasks are accompanied efficiently. These typical stages of life cycle of a team are described below: 1. and features of effective team so that team-building exercises focus more sharply on developing effective team. because of individual differences. The . they do represent a broad pattern that may be observed and predicted in many settings across team’s time together. even the most successful teams as they have completed their mission. team members start settling. 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. 4. 4. 2. Life Cycle of a Team When a number of individuals begin to work at interdependent jobs. and begin to turn their attention to the group tasks.

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

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

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

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

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

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

Refer section 4. Refer section 4. Social loafing Answers to TQs: 1. and Beliefs in Organization Development Structure: 5. Assumptions. Assumptions.4 2.1 Introduction Objectives 5.6 4. Data collection 2. 4.2 3. Beliefs in Organization Development Unit-05-Values. Blake and Mouton. MU0002-Unit-05-Values.12 Answers to SAQs and TQs SAQs: 1. What is team-building? What are the stages of life cycle of a team? 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 4. Explain Change agents and discuss the role of change agents in detail. Refer section 4. 3.3.2 Definitions and .

· List the chronology of events of values.5. Objectives: After studying this unit. beliefs and assumptions. and they continue to evolve as the field itself evolves.3 Chronology of Events in Management and Organization Thought 5. Most of these beliefs were formulated early in the development of the field.6 Summary Self Assessment Questions 5.2 Definitions A belief is a proposition about how the world works that the individual accepts as true. . · Give the statement of OD values and assumptions.5.1 Introduction A set of values. 5. shaping the goals and methods of the field and distinguishing OD from other improvement strategies.4 Early Statements of OD Values and Assumptions 5.7 Terminal Questions 5. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers. assumptions. and beliefs constitutes an integral part of organization development. you will be able to: · Explain the meaning of values.5. beliefs and assumptions.2 Implications for Dealing with Groups 5. · State the implications of OD values and assumptions. it is a cognitive fact for the person.5.1 Implications for Dealing with Individuals 5.5 Implications of OD Values and Assumptions 5.3 Implications for Designing and Running Organizations 5.8 Answers to SAQs and TQs 5.

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

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

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

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

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

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

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

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

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

The concept of –––––––––– was introduced by MaxWeber. Taylor’s principles of scientific management. The outcome of –––––––– was that people were not cogs and organizations were not machines.7 Terminal Questions 1. 4. Values.1. Define concepts. beliefs and assumptions. Cognitive 2. Refer section 5. 5. State the assumptions of Theory X and Theory Y. _______________ gave theory X and theory Y. __________ is associated with scientific management.3 3. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. W.8 Answers to SAQs and TQs SAQs: 1. Bureaucracy 4.W. 2. 5. Taylor 3.3 . What was the outcome of Hawthorne Experiments? 4. beliefs. Douglas McGregor Answers to TQs: 1. and assumptions are all –––––––––– facts. 3. Refer section 5. values. Write a note about F. F. 2. 5. 3. Refer section 5.2 2. Hawthorne experiments 5.

3.2.1 The Nature of Systems Introduction Objectives 6.3.4 Porras and Robertson Model of Organizational Change 6.2.3 5.4. Refer section 5.3 Systems Theory 6.3 The Burke-Litwin Model of Organizational Change 6.4 Open Systems Thinking 6.3 Socio-technical Theory and Open Systems Planning 6. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.2 Models and Theories of Planned Change 6.1 Kurt Lewin and Friends 6. Refer section 5.3 Copyright © 2009 SMU Powered by Sikkim Manipal University .2.2 Beyond the Quick Fix 6.2 Congruence among System Elements 6.2.4 Participation and Empowerment .

6 Parallel Learning Structures 6. · Explain systems theory. art and science which form the knowledge base upon which OD is constructed.1 Introduction This unit describes the foundations of organization development theory and practice. Objectives: After studying this unit. you will be able to: · Explain various models and theories of planned change. We will examine the following concepts: .5 Teams and Teamwork 6. · Explain normative-re-educative strategy of changing The knowledge base of OD is extensive and is constantly growing.6. In this discussion.8 Applied Behavioural Science 6.7 A Normative – Re-educative Strategy of Changing 6. · Realize the importance of teams and teamwork.11 Terminal Questions 6.12 Answers to SAQs and TQs 6. · Explain the terms ‘participation’ and ‘empowerment’.9 Action Research Self Assessment Questions 6. Here we describe what we believe are the most important underpinnings for the field. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning.10 Summary 6. · Describe the parallel learning structures. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs.

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

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

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

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

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

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

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

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

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

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

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

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

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

Fourth. because most phenomena have more than one cause. from diagnosis to intervention to evaluation. Senge believes that five disciplines must be mastered to create a learning organization: personal mastery.3. It keeps them from being separate gimmicks or the latest organization change fads. there is no motivation to look at how the disciplines interrelate. 6.4 Open Systems Thinking Open systems thinking is required for creating learning organizations. not just its component parts. systems thinking. the fifth discipline. is the most important. and systems thinking. from their activities. By enhancing each of the other disciplines. it is extended broadly throughout the organization. and incidents are not viewed as isolated phenomena. mental models. one changes the system. Increased participation and empowerment . fusing them into a coherent body of theory and practice. Participation in OD programs is not restricted to elites or the top people. He says of systems thinking: “It is the discipline that integrates the disciplines. changing one part of a system influences other parts. forces. it continually reminds us that the whole can exceed the sum of its parts.” In conclusion. Without a systemic orientation. OD practitioners expect multiple effects. team learning. according to field theory (Kurt Lewin). For example. therefore. building shared vision. First. Third.3) Developing action plans to ensure that a desirable future occurs. Viewing organizations from this perspective has several consequences. And fifth.4 Participation of Empowerment One of the most important foundations of organization development is a participation/ empowerment model. the forces in the field at the time of the event are the relevant forces for analysis. events and forces. Learning organizations can cope effectively with rapidly changing environmental demands. Most OD practitioners engaged in redesign projects use a combination of socio-technical systems theory and open systems planning. according to Peter Senge. events. to change a system. Of all these disciplines. not single effects. this combination is often used in designing high-performance organizations. but seen in relation to other issues. 6. This idea moves the practitioner away from analyzing historical events and toward examining contemporary events and forces. systems theory pervades the theory and practice of organization development. issues. Second. a systems approach encourages analysis of events in terms of multiple causation rather than single causation.

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

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

people are trained in group dynamics and group problem-solving skills. heart transplant surgical teams. Larson and LaFasto also discovered that the most frequent cause of team failure was letting personal or political agendas take precedence over the clear and elevating team goal. and responsibility charting. All these characteristics are required for superior team performance. The net effect is that teams perform at increasingly higher levels. empowered teams are what the best organizations are using right now to outdistance the competition. When any one feature is lost. and set ever-higher goals. Teams periodically hold team-building meetings. and others. Larson and LaFasto found eight characteristics always present: 1) A clear.parallel learning structures. help each other. . Grid OD and techniques such as role analysis technique. Larson and LaFasto studied a number of high-performance teams. find innovative ways around barriers. 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. and that teamwork becomes more satisfying for team members. Union Pacific Railroad. Team-building activities are now a way of life for many organizations. elevating goal 2) A results-driven structure 3) Competent team members 4) Unified commitment 5) A collaborative climate 6) Standards of excellence 7) External support and recognition Principled leadership. and individuals are trained as group leaders and group facilitators. Asea Brown Boveri. team performance declines. Tom Peters asserts in Liberation Management that cross-functional. including collegiate football national champions. that they achieve synergy. and the like. High-performance teams regulate the behaviour of team members. These interventions apply to formal work teams as well as startup teams. He uses examples from EDS (Electronic Data Systems). Investigators are discovering why some teams are successful while others are not. autonomous. to determine the characteristics that make them successful. cross-functional teams. socio-technical systems programs. role negotiation technique. the crew of the USS Kitty Hawk. temporary teams.

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

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

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

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

_____________ means sum of the efforts of team members is far greater than the sum of individual efforts of members. –––––––––– means moving to new level of behaviour. A _____________ is defined as “a set of elements standing in interaction.10 Summary The foundations of organizational development form the theoretical and practice underpinnings of the field. 4. 2. 3.” 5. Kurt Lewin introduced two ideas about change the first idea states that what is occurring at any point in time is a resultant in a field of opposing forces and the second is the model of the change process. 3. Action research model combines learning and doing. The Burke-Litwin model emphasized on first-order and second-order change. Systems theory views organizations as open systems in active exchange with their environment. Explain Kurt Lewin’s models and theories of planned organizational change. Bring out the essence of “managing beyond the quick fix” model of organizational development. each is a powerful conceptual tool for thinking out and implementing change. Ralph Kilmann specified the critical leverage points for organizational change.These foundations of organization development form the theoretical and practice underpinnings of the field. Taken separately. What are first-order and second order change according to Burke-Litwin Model of organizational change? Explain. OD interventions alter features of the work setting causing changes in individuals’ behaviours. Self Assessment Questions 1. 6. they constitute the beginning of a theory of organization development and change that has enormous potential for improving organizational performance and individual development. In parallel learning structures members have to think and behave in ways that are different from the normal roles and rules of the organization. –––––––––– gave the model “Beyond the Quick Fix”. First—order change is also called ___________. Taken collectively. 2.11 Terminal Questions 1. 6. A fundamental belief in OD is that work teams are the building blocks of organizations. . which in turn lead to individual and organizational improvements is the principle of Porras and Robertson model organizational change.

“Work teams are building blocks of organizational development. Refer section 6.1 2. Ralph Kilmann 3.2. Unfreezing 2.” Comment on this statement. What are the features of systems theory of organizational development? 5.3 4. MU0002-Unit-07-Organization Climate Unit-07-Organization Culture and Climate Structure: 7.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .3 5. Refer section 6. Transactional change 4. Refer section 6.2. Refer section 6.Refer section 6. System 5.12 Answers to SAQs and TQs SAQs: 1. Synergy Answers to TQs: 1.2 3.2 Characteristics of Organization Culture Culture and . Introduction Objectives 7.

· Describe different types of Organization Culture · Explain organization culture and effectiveness. – similar to what you can use to get a feeling about someone’s personality. Comprehensively organization culture is the pattern of basic assumptions that is invented. thinking. but also changing the corporate culture as well.3 Types of Organization Culture.1 Introduction Basically. norms and tangible signs (artifacts) of organization members and their behaviors.7 Terminal Questions 7. Culture is one of those terms that’s difficult to express distinctly. you will be able to: · Understand Organization Culture. 1986). the culture of a large. The concept of culture is particularly important when attempting to manage organization-wide change. what they brag about. Practitioners are coming to realize that. For example. organizational change must include not only changing structures and processes. for-profit corporation is quite different than that of a hospital which is quite different than that of a university. values. but everyone knows it when they sense it.8 Answers to SAQs and TQs 7. Members of an organization soon come to sense the particular culture of an organization.6 Summary 7.7.4 Organization Culture and Effectiveness 7. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. organizational culture is the personality of the organization. etc. despite the best-laid plans. Culture is comprised of the assumptions. and feeling in relation to these problems (Schein. discovered. 7. what members wear. . Objectives: After studying this unit. Martin and Meyerson. You can tell the culture of an organization by looking at the arrangement of furniture.5 Developing and changing Organization Culture Self Assessment Questions 7. and validated enough to be taught to new members as the correct ways of perceiving.

and rituals related to deference and demeanor. Observed behavioral regularities. Some of the most readily agreed upon are the following: 1. they use common language. Hierarchies have respect for position and power. Standards of behavior exist. 2.3 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. Rules: There are strict guidelines related to getting along in the organization. terminology. the way participants interact. Note that the Market organization is not one which is focused just on marketing. processes and procedures.· Discuss about developing and changing organization culture. internal and external are viewed in market . They often have well-defined policies. Market The Market organization also seeks control but does so by looking outward. When organizational participants interact with one another. and the way members of the organization conduct themselves with customers or other outsiders. Dominate value: These are major values that the organization advocates and expects the participants to share. 7. Philosophy: These are policies that set forth the organization’s beliefs about how employees and/or customers are to be treated. Hierarchical leaders are typically coordinators and organizers who keep a close eye on what is happening. Typical examples are high product quality. and in particular taking note of transaction cost. 7. 5. including guidelines on how much work to do. Which in many organizations come down to “Do not do too much. Organizational climate: This is an overall “feeling” that is conveyed by the physical layout.2 Characteristics of Organization Culture Organizational culture has a number of important characteristics. 4. For many years. Low absenteeism and high efficiency. this was considered the only effective way of organizing and is still a basic element of the vast majority of organizations. 6. do not do too little?” 3. but one where all transactions. New-comers must learn those “ropes” in order to be accepted as full-fledged members of the group. Norms.

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

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

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

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

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

7 Terminal Questions 1. Organizations to be successful must be efficient and effective. Artifacts 2.2 2. effectiveness through adaptive-coping cycle has been discussed. Explain the characteristics of organization culture. . 7. Briefly explain different types of organizational culture. 7. behavioural approach. Organizational effectiveness can be measured through various approaches.Organizational effectiveness is the degree to which organization is successful in accomplishing its goals.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 7. Discuss the development and change of organizational development. Causal variables Answers to TQs: 1.8 Answers to SAQs and TQs SAQs: 1. and strategic constituencies approach. 3. Factors in organizational effectiveness include casual variables. Effectiveness of an organization can be increased through economic man approach and administrative man approach.3 3. Market 3. Finally. Refer section 7. system-resource approach.goal approach. 2. intervening variables and end-result variables and there exists interrelationship among these variables. Refer section 7.

Politics and Organization Development Structure: 8. and for change to occur in an organization. As Warner Burke observes: "Organization development signifies change.4 Theories about the Sources of Social Power 8.10 Terminal Questions 8. Organization Development Unit-08. power must be exercised.1 Introduction Objectives 8.MU0002-Unit-08Power.1 Introduction Politics and Power and politics.11 Answers to SAQs and TQs 8. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics.7 Operating in a Political Environment 8. must be understood if one is to be effective in organizations.Power. indisputable facts of organizational life.6 The Role of Power and Politics in the Practice of OD 8. That criticism was essentially correct for many years although it is less valid . we examine power and politics in relation to organization development.” Organization development has been criticized for not taking into account power in organizations.2 Power Defined and Explored 8. In this unit.5 Organizational Politics Defined and Explored 8.8 Acquiring and using Power Skills Self Assessment Questions 8.3 Two Faces of Power 8.9 Summary 8.

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

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

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

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

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

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

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

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

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

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

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

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

8 Copyright © 2009 SMU Powered by Sikkim Manipal University .4 3. Explain the role of power and politics in the practice of OD. Refer section 8. Referent power 4.5 4.6 5. 3. Refer section 8. Describe briefly various theories of power.11 Answers to SAQs and TQs SAQs: 1. 8.2. Define organization politics.1 Introduction . 5. 4. McClelland 3. Power 2. Harold Lasswell 5. Identify the bases of individual power and the respective strategies for their success.Refer section 8. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9. Refer section 8. Personality Answers to TQs: 1.2 2. Refer section 8.

6 Quality of Work Life Projects 9.2 Meaning and Definitions 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.3 Socio Technical Systems 9.11 Terminal Questions 9.10 Summary 9.12 Answers to SAQs and TQs 9. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design.4 Management By Objectives 9. events intended to help an organization improve its performance and effectiveness. 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. In this dynamic and fluid environment. These interventions vary from standardized program that have been developed and sometimes tailored program.5 Quality Circles 9. Nothing is permanent except change because change is permanently changing. An organization development intervention is a sequence of activities. These methods are receiving increasing attention in Organization Development. actions.9 Reengineering Self Assessment Questions 9.Objectives 9.7 Parallel Learning Structures 9. These programs are derived from careful diagnosis.8 Total Quality Management 9.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. organizational problems may repeat. Objectives: .

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

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

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

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.

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

TQM pushes decision making power downwards in the organization. 9. Drucker 3. Discuss Socio Technical Systems? represents a participative approach to employee involvement in problem solving and productivity improvement. Refer section 9. What are the advantages of structural interventions? 3. Refer section 9. . provides relevant information to all employees. Refer section 9.12 Answers to SAQs and TQS SAQs: 1. It is also called continuous quality improvement.3 2. It consists of small group of employees who meet voluntarily to identify and solve productivity problems.2 3.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .11 Terminal Questions 1. Quality circle Answers to TQs: 1.5 4. 9. ties reward to performance and increase workers knowledge and skills through extensive training. Write a short note on Total Quality Management.Refer section 9. Explain Management By Objectives? 4. Intervention 2.

Objectives: . organizational problems may repeat. and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented).4 Causes for Resistance to Change. In this dynamic and fluid environment.9 Answers to SAQs and TQs 10.MU0002-Unit-10-Managing Organization Development Unit-10-Managing Change in Organization Development Structure: 10.1 Introduction Objectives 10.1 Introduction Change in Organizations are increasingly realizing the fact that change is the price of the survival.6 Methods of Reducing Resistance to Change.2 Nature of Change 10.5 Impact of Change on the Future Manager 10. Hence. Nothing is permanent except change because change is permanently changing. 10.7 Summary 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. Self Assessment Questions 10.8 Terminal Questions 10.3 Resistance to Change 10. cope with the ongoing changes successfully in the first instance.

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

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

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

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

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

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

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

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

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

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

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

Refer section 10. It is easiest for management to deal with resistance when it is overt and immediate. It implies a new equilibrium between different components of the organization. or the like. group resistance and vested interests. immediate. or deferred. engaging in a work showdown. Organizational change 2.9 Answers to SAQs and TQS SAQs: 1. at the level of individual and at the level of group. Changes may be influenced by external and internal factors.2 2. threatening to go on strike. that is. 10. Why do organizations resist change? 3. Problem of overcoming resistance to change can be handled at two levels. Organizational change is the alteration of work environment in an organization. 10. psychological factors. Explain the nature of change? 2.7 Summary Change is inevitable. a change is proposed and employees quickly respond by voicing complaints. through group dynamics. both at the formal and informal levels. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. For instance. implicit. Resistance can be overt. Discuss the methods of reducing resistance to change. Economic factors.4 3. social factors. Reference: .6. Participation Answers to TQs: 1. Refer section 10. Psychological factors 3. People tend to resist many types of changes because new habits or sacrifices are required.8 Terminal Questions 1. Refer section 10.10.

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