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

The success of management is measured by the extent to which the organizational goals are achieved. buoyant spirit and adequate work output. namely. high efficiency is associated more typically with high effectiveness. Thus. People often remark of the effectiveness (or ineffectiveness) of management on the basis of the end results. It is the most critical input in the success of any organized group activity. directing and controlling. They must have the necessary ability and skills to get work accomplished through the efforts of others. 1. Distinct Process: Management is a distinct process consisting of such functions as planning. informed employees. the process of management involves decision-making and putting of decisions into practice. they require the catalyst of management to produce goods and services required by the society. 6.3 Characteristics of Management Management is a distinct activity having the following salient features or characteristics: 1. Results through Others: The managers cannot do everything themselves. staffing. Thus. labour and capital. It co-ordinates the efforts of workers to achieve the goals of the organization. organizing. Intangible Force: Management has been called an unseen force. Managers apply knowledge. It is the force which assembles and integrates other resources. They must motivate the subordinates for the accomplishment of the tasks assigned to them. management is an essential ingredient of an organization. These functions are so interwoven that it is not possible to lay down exactly the sequence of various functions or their relative significance.course. 3. experience and management principles for getting the results from the workers by the use of non-human resources. labour. Economic Resource: Management is one of the factors of production together with land. Integrative Force: The essence of management is integration of human and other resources to achieve the desired objectives. . And poor management is most often due to both inefficiency and ineffectiveness or to effectiveness achieved through inefficiency. All these resources are made available to those who manage. 2. It is imperative that the organizational goals must be well-defined and properly understood by the mangers at various levels. 4. Goal-oriented: Management is a purposeful activity. Managers also seek to harmonize the individuals’ goals with the organizational goals for the smooth working of the organization. capital and materials. In essence. 5. Its presence is evidenced by the result of its efforts-orderliness. feeling of management is result-oriented. One may not see with the naked eyes the functioning of management but its results are apparently known. These factors do not by themselves ensure production. although they can’t observe it during operation.

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

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

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

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

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

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

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

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

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

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

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

public organisations sector and non-business private sector. Still management is not completely a profession.9 Terminal Questions 1. organisations. 1. middle and lower. 2. __________is principally the task of planning. materials. Managers perform different roles to discharge their responsibilities. co-ordinating. 3. 1. ___________. teamwork . Discuss the importance of management. Lower level managers require and use a greater degree of technical skill and managers at higher levels use a greater degree of conceptual skill. motivating and controlling the efforts of others towards a specific objective.10 Answers to SAQs and TQs SAQs: 1. counseling and effective leadership. Bring out the difference between Administration and Management. Self Assessment Questions in the 1. Define management. Management is largely found at the middle and lower levels and administration is found at the higher levels. 2. It is the management which transforms physical resources of an organization into productive resources. Management creates ________ and motivates employees to work harder and better by providing necessary guidance. _________. Human skills are important at all managerial levels.government offices. Money. 3.8 Summary Management is concerned with getting things done through other people. manpower 3. Five M’s of management (________. machinery and methods or ways of doing things) depends to a great extent on the quality of management. Management 2. There are three levels of management-top. Explain its characteristics. 1.

1.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .10 Answers to SAQs and TQs .8 Summary 2. Refer section 1.1 Introduction Objectives 2.7 Motivating Self Assessment Questions 2.4 Organizing 2.3 2.9 Terminal Questions 2. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.3 Planning 2.5 Staffing 2.6 Directing 2.2 Process of Management 2. Refer section 1.Answers to TQs: 1.2. Refer section 1.5 3.

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

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

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

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

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

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

8. Direction is the managerial function of guiding.5. . motivate them.e. Definition According to Koontz and O’Donnel. It is performed in the context of superior-subordinate relationship and every manager in the organization performs his duties both as a superior and subordinate. vacancies arise out of retirement. Present positions must be filled keeping in mind the future requirements. Through direction. 3. It is a process: it is a process having a logical sequence i. how to do and telling them to do to the best of their ability. promotion. Direction is an important managerial function. Direction function is performed at every level of management. A manger needs to give orders to his subordinates. Personnel policies and programs must be formulated as guides to perform the staffing function effectively. It deals with future requirements: Staffing deals with current and future personnel requirements. 7. Characteristics of Direction The characteristic features of direction are as follow: 1. lead them and guide them on a continuous basis. Direction is continuous process and it continues throughout the life-time of the organization. It is a continuous function: With the growth and expansion of business additional manpower is needed. induction. It is an important managerial function. 2. management initiates actions in the organization. Thus staffing deals with the future requirements also. 6. etc. training development and maintenance of personnel. 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”. resignation. It is a continuing function. recruitment. selection. overseeing and leading people. identifying the manpower requirements. 2.6 Directing Direction is one of the functions of management. It is instructing people as to what to do. Thus staffing is an ongoing process through – out the life of an organization.

satisfied needs cannot. the number of subordinate he has and the other duties he is expected to perform. guide. and the Two-Factor theory. 2. humanness and psychological health a person will show. It emphasizes that a subordinate is to be directed by his own superior only. the more individuality. proposed by Maslow (1943). 4.4. Nature of Directing The nature of directing can be discussed under the following: 1. 2. The five needs are: · Physiological: Includes hunger. The needs are arranged in order of importance. Direction has dual objectives. it aims at getting things done by subordinates and. sex. The person advances to the next level of needs only after the lower level need is at least minimally satisfied. without guiding and overseeing subordinates. from the basic to the complex.7 Motivating Motivating In the 1950s three specific theories were formulated and are the best known: Hierarchy of Needs theory. and other bodily needs . thirst. coach and supervise his subordinates. The amount of time and effort an executive spends in directing however. “without the issuance of directives. human beings have wants and desires which influence their behaviour. Pervasive function: Directing is a managerial function performed by all mangers at all levels of the organization. on the other. nothing or at the best very little would be accomplished”. Directing is the process around which all performances revolve. On the one hand. organizing and staffing on one hand and controlling on the other. Essence of performance: Directing is the process around which all performances revolve. Continuous function: Directing is a continuous process. shelter. The further they progress up the hierarchy. The manager never ceases to direct. 5. will vary depending upon his level. Direction imitates at the top level in the organization and follows to bottom through the hierarchy. to provide superiors opportunities for some more important work which their subordinates cannot do. teach. Theories X and Y. It is an important function of management: Directing is an important management function which provides a connecting link between planning. Maslow’s Hierarchy of Needs Theory According to this theory. As Theo Haimann puts it. only unsatisfied needs can influence behavior. 3.

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

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

Reference 2. Reference 2. Write a short not on directing. What is planning? 2. Reference 2.2.10 Answers to SAQs and TQs SAQs: 1.5 3.3 2.9 Terminal Questions 1. SWOT 3. Staffing Answers to TQs: 1. Explain Staffing in detail 3. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3. 2.6 Copyright © 2009 SMU Powered by Sikkim Manipal University . Follett 2.1 Introduction Objectives .

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.

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

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

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

2. 4. 5. Long-range Change: OD efforts are not meant for solving short-term. OD focuses on the elevation of an organization to a higher level of functioning by improving the performance and satisfaction. OD takes a developmental view that seeks the betterment of both individuals and the organization. It recognizes that organizational goals change. 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. 9.3. Rather. collaborators. 7. OD views organization improvement as an ongoing process in the context of a constantly changing environment. 4. OD practitioners are facilitators. 8. rather. This ‘planned’ emphasis separates OD efforts from other kinds of more haphazard changes that are frequently undertaken by organizations. The concept of comprehensive change is based on the systems concept-open. 3.3 Characteristics of OD 1. An overarching goal is to make the client system able to solve its problems on its own by teaching the skills and knowledge of continuous learning through self-analytical methods. Dynamic 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. 6. so the methods of attaining these goals should also change. temporary. Teams of all kinds are particularly important for accomplishing tasks and are targets for OD activities. and cyclic processes. OD focuses on total system change and views organizations as complex social systems. dynamic and adaptive system. OD relies on an action research model with extensive participation by client system members. or isolated problems. OD focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. Planned Change: OD is a strategy of planned change for organizational improvement. Comprehensive Change: OD efforts focus on comprehensive change in the organization. 10. rather than focusing attention on individuals. interactive. Attempting to create “win-win” solutions is standard practice in OD programs. Thus. so that change is easily observed. Participation and involvement in problem-solving and decision-making by all levels of the organization are hallmarks of OD. . OD efforts are not one-shot actions. 3. and co-learners with the client system.

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

This Organization Development progrmmes. with the authority of knowledge and competence. (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. its underlying theory and assumptions and some of the pitfall and challenges in attempting to improve organizations through behavioural science. (g) To increase the sense of ‘ownership’ or organization’s objectives throughout the work force. and (d) The interventions are based on behavioural science theory and technology.6 OD and Management Development . problem solving climate throughout an organization. 3. (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.(c) The interventions are directed towards problem-solving and improved functioning for the client system. (b) To supplement the authority associated with role or status.5 Goals of Organization Development Following are the generally accepted goals of OD: (a) To create an open. (j) To improve effectiveness of the organization. (e) To make competition more relevant to work goals and to maximize collaborative efforts. 3. (d) To build trust among persons and groups throughout an organization. should begin with a clear-cut statement of specific objectives and criteria for determining if these objectives have been met from the stand point of the employee/employees simply as team member or for the total group. (c) To locate decision making and problem-solving responsibilities as close to sources of information as possible. like other normative re-educative programmes. We need to examine carefully the techniques of Organization Development.

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

OD became quite successful with many professional consultants offering high services and programmes to various organizations. By 70s. To treat each human being as a complex person with a complex set of needs important in his work and his life. OD can be utilized for the following results in the organization: 1. it is quite suitable for improving organizational performance on long-term basis. Thus. horizontally. Problem-solving approach. 3. as a long-term strategy for organizational change. 7. Research studies have also failed to conclude . however. has invited sharp criticism as a strategy to increase organizational viability and effectiveness because many OD programmes have failed. however. substantial disenchantment with OD became evident because of many controversial OD techniques like sensitivity training. 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. Much of the enthusiasm created at the beginning of OD programmes vanished over the period of time. To increase the level of self and group responsibility in planning and its implementation. and laterally. Trained specialists required. 2. 3. plays key role in organizational improvement.8 Problems in Organization Development Organization development. To increase the openness of communications in all directions-vertically. etc. 6. 3. Specialist No special requirement. Long-range strategy for organizational innovation and renewal. To place emphasis on humanistic values and goals consistent with these vales. To increase the level of enthusiasms and personal satisfaction at all levels of the organization. 4. 5. To increase the level of trust and mutual emotional support among all organization members.Approach Time Educative and training Short-range. Since OD attempts to bring comprehensive change in the organization. In early 60s. confrontation techniques.7 Role of Organization Development Organization development. To create an environment in which authority of assigned role is augmented by authority based on knowledge and skills.

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

collaborative. Tom Peters 3. 3. Explain its salient features. _____________is a short-term strategy. ––––––––– is a process which includes leadership behaviours and human resource practices. 2. Management development aims at developing the managers individually. 3. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. Distinguish between ‘organizational development’ and ‘management development’. 3. What are the problems involved in the implementation of OD? 3. OD focuses on culture and processes. Top management 2. ––––––– is associated with “Liberation Management”. Define OD. 4. problem-focused ‘nature of OD’ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. Empowerment . 3. Explain the various characteristics of OD. Organization development should be led and supported by –––––––.10 Terminal Questions 1. Who is associated with the “Learning Organizations”? 5.11 Answers to SAQs and TQs SAQs: 1.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. 5.Self Assessment Questions 1. OD is the ultimate remedy for organizational improvements and developments. 2. But OD aims at changing the entire organizational climate where the managers work. 4. There is no ‘quick fix’ to organizations’ problems. State the various roles of OD. The participative.

2 Survey Feedback 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .4 Grid Training 4.Organization Development – Interventions Unit-04. Refer section 3.5 Leadership Development 4. MU0002-Unit-04. Refer section 3. Refer section 3.7 5. Refer section 3. Management development Answers to TQs: 1. Peter Senge 5. Refer section 3.1 Introduction Objectives 4.2 2.3 3.6 4.6 Team-building .Organization Development – Interventions Structure: 4.4.3 Process Consultation 4.

they make things happen. team-building. However. 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. Therefore. interpersonal level. Interventions constitute the action thrust of organization development. management grid. For example. process consultation.10 Summary 4. French and Bell have suggested twelve families of OD interventions: diagnostic. Nevertheless. Further.12 Answers to SAQs and TQs 4.8 Change Agents 4. inter-group level.9 Role of Change Agents Self Assessment Questions 4. many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others. work group. group level. and organizational level.” There are various OD interventions and they are classified in different ways. Thus.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. mediation and negotiation activities.7 Inter Group Development 4. the classification appears to be more relevant because it may specify the . inter-group activities. 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. education and training. People’s behaviour may be relevant to understand at individual level.11 Terminal Questions 4.4. techno-structural activities. interventions may be required to change people at all these levels. 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. and organizational culture. survey feedback. the classification of OD interventions shows variation. 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. various consultants and practitioners have different opinions about the activities which can be included in interventions.

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

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

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

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

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

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

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

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

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

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

According to Curtis Mial: “The Consultant may serve as the exhaust value. with members from each of the conflicting groups. The trainer role is most widely and intensively used at all stages of a change project: unfreezing. group discussions. enabling the client to let off steam: as the ignition to spark action. In contrast.9 Role of Change Agents The change agent may play different roles according to the need of organization development . Trainer A change agent needs to be a trainer and educator.Subgroups. films. as the shock absorber when the going is rough. He has to educate people on the need and importance o change using a variety of methodologies – lectures. as the radiator absorbing some of the heat of the controversy. role-plays and instruments. but one thing he/she is not the driver”. . internal management often will hire the services or outside consultants to provide advice and assistance. 4. and personnel. 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 outside consultants. Outside consultants. cases and experiential learning etc. however. internal staff specialists or managers when acting as change agents. The consultant may fulfill a variety of functions. culture. or as fog lamp when the future is hazy. Because they are from the outside these individuals an offer can offer an objective perspective often unavailable to insiders. can now be created for further diagnosis and to begin to formulate possible alternative actions that will improve relations. as the accelerator to build up momentum. 4.8 Change Agents Change agents: Can be managers or nonmanagers. are disadvantaged because they usually have an inadequate understanding of the organization’s history. as the break for too quick action. changing (intervening) and refreezing. presentations.These three roles are having been brief described below: Consultant A consultant is a professional (internal or external) who applies behavioral Science knowledge in an ongoing organization (or client system) with clear objectives of managing change and improving effectiveness. For major change efforts. operating procedures. may be more thoughtful (and possibly cautious) because they to live with the consequences of their actions. employees of the organization.

feedback of information. What is survey feedback as an intervention of OD? How does it provide base for other OD interventions? . Sensitivity training focuses on small group ranging from ten to twelve. It focuses on skills. Training is used both in ‘content orientation’ and process orientation’. Survey feedback usually proceeds with sequential activities involving data collection. generation of new behavioral science knowledge. 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. 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. group. knowledge and processes necessary for effectiveness at the individual. 4. In process consultation.11 Terminal Questions 1.10 Summary OD intervention strategies are various activities which a consultant and client organization performs for improving organizational performance. ________is antithesis of synergy in team-work which suggests that people working together on a common task may actually decrease their individual efforts. Grid Training was developed by –––––––––––– 3. widely accepted and applied OD intervention for organizational improvement. skills and change in behavior. Grid training focuses on individuals and groups to assess their own strengths and weaknesses. developing action plans based on feedback and follow-up. team-work does not necessarily spurt group efforts 4. 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. Teambuilding is most important.Training is required for enhancing knowledge. What is Grid Training? How does it help in improving individual performance in an organization? 2. inter-group and total organization levels. Self Assessment Questions 1. The first step in survey feedback is ______ usually by a consultant based on a structured questionnaire. Useful hypothesis are to be formulated and tested. 2. diagnosis. attitudes and beliefs.

Refer section 4.4 2. Social loafing Answers to TQs: 1. and Beliefs in Organization Development Structure: 5. What is team-building? What are the stages of life cycle of a team? 4. Blake and Mouton. Data collection 2.2 3. Assumptions. Assumptions. Refer section 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .12 Answers to SAQs and TQs SAQs: 1. Refer section 4.1 Introduction Objectives 5. MU0002-Unit-05-Values.3. 4. Refer section 4. 3.2 Definitions and . Beliefs in Organization Development Unit-05-Values. Explain Change agents and discuss the role of change agents in detail.6 4.

5.6 Summary Self Assessment Questions 5. Most of these beliefs were formulated early in the development of the field.5 Implications of OD Values and Assumptions 5. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers. and they continue to evolve as the field itself evolves.5.3 Chronology of Events in Management and Organization Thought 5. beliefs and assumptions.2 Implications for Dealing with Groups 5.5. · Give the statement of OD values and assumptions. · State the implications of OD values and assumptions. and beliefs constitutes an integral part of organization development.1 Introduction A set of values. assumptions. you will be able to: · Explain the meaning of values.1 Implications for Dealing with Individuals 5.8 Answers to SAQs and TQs 5. shaping the goals and methods of the field and distinguishing OD from other improvement strategies. it is a cognitive fact for the person. 5. Objectives: After studying this unit. · List the chronology of events of values.5.4 Early Statements of OD Values and Assumptions 5. .3 Implications for Designing and Running Organizations 5. beliefs and assumptions.7 Terminal Questions 5.2 Definitions A belief is a proposition about how the world works that the individual accepts as true.

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

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

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

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

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

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

decentralized decision making. The humanistic values prompted a search for better ways to run organizations and develop the people in them. The democratic values prompted a critique of authoritarian. These values and assumptions may not seem profound today. a greater contribution to attaining organization goals than most organizational environments permit. encourage risk-taking. authentic interpersonal relations. and organizations? 5. groups. permit failure. 5. The first assumption is that most individuals have drives toward personal growth and development if provided an environment that is both supportive and challenging. open communication. challenge. but in the 1950s and 1960s they represented a radical departure from accepted beliefs and assumptions. · Away from a primary emphasis on competition toward a much greater emphasis on collaboration. 5. A tremendous amount of constructive energy can be tapped if organizations realize and act on these assumptions. The second assumption is that most people desire to make.5.2 Implications for Dealing with Groups . participation and contribution by all organization members.· Away from avoidance of risk-taking toward willingness to risk. remove obstacles and barriers. autocratic. Most people want to develop their potential. appropriate uses of power. The people doing the work are generally experts on how to do it and how to do it better. Beliefs such as trust and respect for the individual. listen. and are capable of making. 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. set high standards.1 Implications for Dealing with Individuals Two basic assumptions about individuals in organizations pervade organization development. We answer the question: What are some of the implications of OD assumptions and values for dealing with individuals.5. and reward success. support. the legitimacy of feelings. We think most organization development practitioners held these humanistic and democratic values with their implications for different and "better" ways to run organizations and deal with people. and so forth were seldom espoused and rarely implemented in the vast majority of organizations at that time. The implications of these two assumptions are straightforward: Ask. give autonomy. collaboration and co-operation. · Away from a view of process work as being unproductive effort toward seeing it as essential to effective task accomplishment. give responsibility.

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

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

Cognitive 2.3 3. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5.8 Answers to SAQs and TQs SAQs: 1. Refer section 5. values. The outcome of –––––––– was that people were not cogs and organizations were not machines. beliefs and assumptions. Taylor 3. Bureaucracy 4. 5. Refer section 5. The concept of –––––––––– was introduced by MaxWeber.3 . __________ is associated with scientific management. Hawthorne experiments 5. Refer section 5. 5. F. Write a note about F. _______________ gave theory X and theory Y. Douglas McGregor Answers to TQs: 1.7 Terminal Questions 1. What was the outcome of Hawthorne Experiments? 4. 2. Define concepts. 3.2 2. and assumptions are all –––––––––– facts. 2.1. 5. beliefs.W. 4. State the assumptions of Theory X and Theory Y. Values. Taylor’s principles of scientific management. 3. W.

1 The Nature of Systems 6.4.2 Beyond the Quick Fix 6.3.3.4 Porras and Robertson Model of Organizational Change 6.2 Congruence among System Elements 6.3 5.3 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 5.1 Introduction Objectives 6.2.3 Socio-technical Theory and Open Systems Planning 6.2.4 Open Systems Thinking 6.1 Kurt Lewin and Friends 6.3.3.3 Systems Theory 6.2.3 The Burke-Litwin Model of Organizational Change 6. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.4 Participation and Empowerment .2 Models and Theories of Planned Change 6. Refer section 5.2.

6.8 Applied Behavioural Science 6.12 Answers to SAQs and TQs 6.5 Teams and Teamwork 6.9 Action Research Self Assessment Questions 6. In this discussion. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning. · Realize the importance of teams and teamwork.11 Terminal Questions 6.6 Parallel Learning Structures 6. · Explain normative-re-educative strategy of changing The knowledge base of OD is extensive and is constantly growing. you will be able to: · Explain various models and theories of planned change. · Explain the terms ‘participation’ and ‘empowerment’. Objectives: After studying this unit. · Describe the parallel learning structures.10 Summary 6.1 Introduction This unit describes the foundations of organization development theory and practice. Here we describe what we believe are the most important underpinnings for the field. We will examine the following concepts: . art and science which form the knowledge base upon which OD is constructed.7 A Normative – Re-educative Strategy of Changing 6. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs. · Explain systems theory.

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

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

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

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

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

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

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

Interventions that focus on job design and work flow design will affect technology. Following figure shows the work setting in the larger organizational framework.4 Porras and Robertson Model of Organizational Change Jerry Porras and his associates developed a model of how organization development works. physical setting. social factors. The basic premise is that OD interventions alter features of the work setting causing changes in individuals’ behaviours. For example. 6.4: Organizational Work-Setting Factors This model is extremely useful for OD practitioners and organizational leaders. management style. strategies. It is how OD works. and interaction processes will affect social factors. rewarded).3: The Burke Litwin Model of Organizational Performance and Change 6.Fig. which determine organizational performance and individual development. This model shows how OD interventions can be linked to factors in the work setting. which influence on-the job behaviours. Interventions that focus on culture. OD interventions that focus on goals. Keep this framework in mind as you read the units on OD interventions because all interventions target one or more factors shown in figures. it is described in a discussion by Porras and Peter Robertson. Organizational change occurs only when individuals change their behaviour. Fig. The premise modeled here is that work setting factors influence organizational members’ cognitions (they learn what is expected. according to Porras and Robertson.2. 6. which in turn lead to individual and organizational improvements. The work setting plays a central role in this model and consists of four factors: organizing arrangements. required. and technology. and these behaviour changes occur when elements of the work setting have been modified by OD interventions. . and rewards will affect organizing arrangements.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Refer section 6.2 Characteristics of Organization Culture Culture and . Refer section 6. Refer section 6. Ralph Kilmann 3.2.” Comment on this statement. MU0002-Unit-07-Organization Climate Unit-07-Organization Culture and Climate Structure: 7.2. What are the features of systems theory of organizational development? 5. Refer section 6.3 4. Refer section 6.2.3 5. System 5.4. Synergy Answers to TQs: 1.1 Introduction Objectives 7.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .1 2. “Work teams are building blocks of organizational development.2 3. Transactional change 4. 6.12 Answers to SAQs and TQs SAQs: 1. Unfreezing 2.

7. – similar to what you can use to get a feeling about someone’s personality. You can tell the culture of an organization by looking at the arrangement of furniture. discovered. · Describe different types of Organization Culture · Explain organization culture and effectiveness. Culture is comprised of the assumptions. organizational change must include not only changing structures and processes. what they brag about. but everyone knows it when they sense it. organizational culture is the personality of the organization. you will be able to: · Understand Organization Culture. . thinking. For example.7. Practitioners are coming to realize that. The concept of culture is particularly important when attempting to manage organization-wide change. and feeling in relation to these problems (Schein. Culture is one of those terms that’s difficult to express distinctly. 1986). or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. Comprehensively organization culture is the pattern of basic assumptions that is invented. what members wear. Members of an organization soon come to sense the particular culture of an organization. and validated enough to be taught to new members as the correct ways of perceiving.4 Organization Culture and Effectiveness 7. for-profit corporation is quite different than that of a hospital which is quite different than that of a university.6 Summary 7. but also changing the corporate culture as well. values.8 Answers to SAQs and TQs 7. despite the best-laid plans. Martin and Meyerson. the culture of a large. norms and tangible signs (artifacts) of organization members and their behaviors. Objectives: After studying this unit.1 Introduction Basically.3 Types of Organization Culture.7 Terminal Questions 7.5 Developing and changing Organization Culture Self Assessment Questions 7. etc.

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

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

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

Many of these variables are caused by causal variables. 7. 1.5 Developing and Changing Organization Culture How Organizational Cultures Start Although organizational cultures can develop in a number of different ways. Intervening variables are concerned with building and developing the organization.profitability. The intervening variables may be divided into two broad categories: (i) the intervening attitudinal. Grouping variables into these categories aids greatly in the correct interpretation of the data and their use for diagnostic and other purposes.which are useful in discussing organizational effectiveness over time. motivations. Likert states that the intervening variables reflect the internal state and health of the organization. Likert states that causal variables are independent variables which determine the course of developments within an organization and the results achieved by the organization. organizational growth. Causal Variables: Causal variables are those factors that influence the course of development within an organization and its results or accomplishment. are often used interchangeably. business and leadership strategies. intervening and end result. These causal variables include only those independent variables which can be altered or changed by the organization and its management. motivational. and earnings. These variables have been classified by Likert into three groups-causal. According to Likert. Though each individual’s effectiveness is significant but perhaps the most important aspect of effectiveness is its relationship to the entire organization. costs. communication. Intervening Variables: Intervening variables are those factors which are reflected as the internal state of organization. the loyalties. 3. end-result variables are the dependent variables which reflect the achievements in the organization such as its productivity. Causal variables include the structure of the organization and its management. the process usually involves some version of the following steps: . the organizational analysis is incomplete for a practicing manager unless the factors underlying effectiveness are identifying. decisions. Whatever the criteria adopted for organizational effectiveness. This is one part of effectiveness that many managers overlook because it emphasis long-term potential as well as short-term performance. and perceptions of all members and their collective capacity for effective interaction. scrap loss. and they tend to be long-term goals. attitudes. skills. to denote organizational effectiveness. 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. performance goals. e.g. From this point of view. there are numerous variables. and behaviour. 2. Causal variables include the structure of the organization and management’s policies. and perceptual cluster. and decision-making. and (ii) the intervening behavioral cluster..

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

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

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

power must be exercised.MU0002-Unit-08Power.5 Organizational Politics Defined and Explored 8. must be understood if one is to be effective in organizations.1 Introduction Politics and Power and politics. That criticism was essentially correct for many years although it is less valid .6 The Role of Power and Politics in the Practice of OD 8.3 Two Faces of Power 8. Organization Development Unit-08.1 Introduction Objectives 8.8 Acquiring and using Power Skills Self Assessment Questions 8.11 Answers to SAQs and TQs 8.9 Summary 8. In this unit.7 Operating in a Political Environment 8.10 Terminal Questions 8. As Warner Burke observes: "Organization development signifies change. we examine power and politics in relation to organization development.4 Theories about the Sources of Social Power 8. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics. Politics and Organization Development Structure: 8. and for change to occur in an organization.2 Power Defined and Explored 8.Power. indisputable facts of organizational life.” Organization development has been criticized for not taking into account power in organizations.

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

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

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

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

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

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

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

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

The authors propose adding the "using social networks" strategy to their repertoires. Attention to these rules can save OD practitioners time and energy that can be more profitably invested in the OD program. We could propose more rules of thumb. individual power derives from knowledge. and personality characteristics. yet legitimate means of acquiring power. such behavior is often interpreted as politically motivated. The principle is simple but powerful: know your legitimate business and stick to it. the strategy and tactics of influence. 8.1: Power Base and Power Strategy Connection Individual Power Bases Knowledge Strategies for Success Playing It Straight . and the characteristics and behaviors of powerholders. Three successful power strategies are "playing it straight. dealing directly with powerholders and decision makers. viable. We believe the legitimate role of the OD practitioner is that of facilitator. One carries out such a strategy by participating in alliances and coalitions. others’ support." OD practitioners have typically pursued a "playing it straight" strategy as their sole means of exerting power. but that does not mean practitioners must be naive or incompetent in the political arena. and educator. and using contacts for information. As shown in the figure. catalyst. problem solver. while at the same time increasing his or her usefulness to the organization’s powerholders. Abiding by this rule keeps the consultant from becoming entangled in politics. A subtle phenomenon is involved here: when people engage in illegitimate behavior. Table 8. Illegitimate behavior causes others to try to exert greater control over the situation. Illegitimate behavior encroaches on others’ legitimate "turf. but these give the flavor of the issues one must consider when operating in a political environment. 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. negotiations the nature of power and politics. Rule Seven: Mind your own business because to do otherwise is to invite political trouble." which arouses defensive actions. Networking is recognized as a potent. Earlier we stated that the OD practitioner should learn as much as possible about bargaining. not content." and "going around the formal system. not power activist or power broker.8 Acquiring and Using Power Skills The OD practitioner is neither power activist nor power broker. thereby greatly expanding practitioner influence. not by getting involved in the answers.Rule Six: Mind your own business." "using social networks. which is to be an expert on process.

This practical. (Legitimacy refers to abiding by and promoting the values of the organization. personal power and position power. which in turn will protect the interests of all concerned. In this model.) Position power derives from five sources: Centrality-access to information in a communication network. Whetton and Cameron’s model is shown in following figure. The power structure will realize that collaborative power is preferable to manipulation and deception. influence key powerholders to accept the OD program. visibility-how much one’s work is seen by . personal attraction. effort. and legitimacy. 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. even those of little power. The four stages are: Phase I Consolidating Power to Prepare for Change Phase ll Focusing Power on Strategic Consensus Phase Ill Aligning Power with Structure and People Phase IV Realizing Power through leadership and Collaboration These stages are the means the OD consultant uses to "take the high road" mentioned in the previous quotation-build a power base. then utilize a facilitative OD process in which the powerholders work on strategic business issues using consensus decision making to develop a corporate strategy.· Expertise · Information · Tradition Others’ Support   · Use data to convince · Focus on target group · Be persistent Using Social Networks · Alliances and coalitions · Deal with decision maker · Contacts for information Going Around Formal System · Work around roadblocks · (Don’t) use organization rules Political access Staff support Personality    Charisma Reputation Professional credibility Finally. how-to book on power and organization development is well worth studying. criticality-how important one’s job is flexibility-the amount of discretion in the job. Personal power. arises from expertise. a person’s power comes from two main sources. in turn.

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

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

5.2 2.11 Answers to SAQs and TQs SAQs: 1. Refer section 8.4 3. Explain the role of power and politics in the practice of OD. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9. 3. Describe briefly various theories of power.1 Introduction . Refer section 8.6 5. 4. Define organization politics. Referent power 4.5 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . McClelland 3. Power 2. Harold Lasswell 5. Identify the bases of individual power and the respective strategies for their success.Refer section 8. Refer section 8. Personality Answers to TQs: 1. 8. Refer section 8.2.

In this dynamic and fluid environment. 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. organizational problems may repeat. actions. events intended to help an organization improve its performance and effectiveness. Objectives: .2 Meaning and Definitions 9. Nothing is permanent except change because change is permanently changing.3 Socio Technical Systems 9. These interventions vary from standardized program that have been developed and sometimes tailored program. 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.10 Summary 9.6 Quality of Work Life Projects 9.11 Terminal Questions 9.9 Reengineering Self Assessment Questions 9. These programs are derived from careful diagnosis. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future.8 Total Quality Management 9.7 Parallel Learning Structures 9. An organization development intervention is a sequence of activities.12 Answers to SAQs and TQs 9. These methods are receiving increasing attention in Organization Development.5 Quality Circles 9.Objectives 9.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival.

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

The term MBO was coined by Drucker in 1964 when he emphasized the concept of managing by results.3 Socio Technical Systems Socio-technical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. many business and nonbusiness organizations have adopted this in some form or the other.4 Management by Objectives Management by objectives (MBO). It could involve the following steps (Foster. consciously directed towards the effective and efficient achievement of organizational objectives. 1988): • Determining the environmental demands • Creating a vision statement • Educating organizational members • Creating the change structure • Conducting socio-technical analysis • Formulating re-design proposals · Defining the scope of the system to be re-designed · Implementing recommended changes · Evaluating changes 9. 1967. Pasmore. processes and functions to create a balance between the organization and its changing external environment. Though there are some variations in the practices of MBO and. it has been defined as follows: MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. Since then. 9.” . therefore. 1976. a predictable cost Implementation of group strategies involves significant long-term man-hour and consultant costs. Cummings. though not strictly an OD intervention in the sense in which other interventions have been discussed so far. its definitional aspect. It endeavors to re-design the organization’s structure.critically. is a technique and system which helps in improving organizational performance. Its basic idea has been derived from the concept of participative goal setting as a technique of OD.

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

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.

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

Refer section 9.2 3. Discuss Socio Technical Systems? 2. Quality circle Answers to TQs: 1.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . 9. Refer section 9. Drucker 3. 9.12 Answers to SAQs and TQS SAQs: 1. Refer section 9. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. Intervention 2.3 2. ties reward to performance and increase workers knowledge and skills through extensive training.11 Terminal Questions 1. Refer section 9.5 4. . It is also called continuous quality improvement. TQM pushes decision making power downwards in the organization. provides relevant information to all employees. What are the advantages of structural interventions? 3. Explain Management By Objectives? 4.circle represents a participative approach to employee involvement in problem solving and productivity improvement. Write a short note on Total Quality Management.

4 Causes for Resistance to Change.3 Resistance to Change 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.6 Methods of Reducing Resistance to Change.MU0002-Unit-10-Managing Organization Development Unit-10-Managing Change in Organization Development Structure: 10. Self Assessment Questions 10.8 Terminal Questions 10.1 Introduction Change in Organizations are increasingly realizing the fact that change is the price of the survival. cope with the ongoing changes successfully in the first instance. Nothing is permanent except change because change is permanently changing. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented). organizational problems may repeat.9 Answers to SAQs and TQs 10. In this dynamic and fluid environment. and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other.2 Nature of Change 10. Hence.5 Impact of Change on the Future Manager 10. Objectives: .7 Summary 10. 10.1 Introduction Objectives 10.

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

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

Degree of force in resistance depends on how people feel about change. Factors in Resistance to Change People tend to evaluate the effect of change individually but they express it through group in collective form. psychological and social. people may feel that in the new system. etc. etc.. 3. job security etc. Reduced Opportunities for Incentives: Employees are generally offered incentives linked to their output in the form of incentive schemes. 2. It also highlights real inadequacies in the proposed change and suggests better ways for developing and introducing changes. When computer was introduced in the business sector in India. People may perceive that they will be adversely affected by the change in terms of their needs satisfaction in the following ways: 1.1. may be seen in the context of three types of factors: economic. 2. whenever people sense that new machinery (change) poses a threat of replacing or degrading them. 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. and turn into technological unemployment. 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. they will have lower opportunity to earn incentives and bonus as the new system requires additional skills. These feeling may be based either on reality or there may be emotional feeling towards the change. reduce job options. technology. All these are well-established in the old system. bonus. Psychological Factors . precede over other needs. Therefore. Whenever there is change. it attracted a lot of resistance because of this reason. Skill Obsolescence: A change is generally meant for better methods of working which may involve new techniques. Economic Factors People feel attached to the organization for satisfying their needs and economic needsphysiological. they simply resist such a change. Fear of Economic Loss: A change may create fear of economic loss in the sense that it may affect economic compensation adversely. This feeling is created because people feel that those who can match the new requirements will be better off than those who cannot match. These feelings. either real or emotional.

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

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

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

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

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

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

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

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

psychological factors. Participation Answers to TQs: 1. Refer section 10. Explain the nature of change? 2. Psychological factors 3. 10. or deferred. or the like. a change is proposed and employees quickly respond by voicing complaints. Why do organizations resist change? 3. both at the formal and informal levels. Discuss the methods of reducing resistance to change. implicit. Changes may be influenced by external and internal factors. social factors. For instance. threatening to go on strike. Economic factors.7 Summary Change is inevitable. that is. engaging in a work showdown. Organizational change 2. Organizational change is the alteration of work environment in an organization. 10. at the level of individual and at the level of group. immediate. Refer section 10. People tend to resist many types of changes because new habits or sacrifices are required. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. It implies a new equilibrium between different components of the organization.2 2.10. Reference: . It is easiest for management to deal with resistance when it is overt and immediate. Resistance can be overt.4 3.8 Terminal Questions 1.9 Answers to SAQs and TQS SAQs: 1. through group dynamics. Refer section 10. group resistance and vested interests. Problem of overcoming resistance to change can be handled at two levels.6.

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