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 µmanagement¶ which uses the available resources in such a manner that a business enterprise is able to earn µsurplus¶ 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 ³management´. Some of these definitions are reproduced below: According to Lawerence A. Appley ± ³Management is the development of people and not the direction of things.´ In the words of George R. Terry ± ³Management 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 ± ³Management 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 ± ³To manage is to forecast and to plan, to organize, to command, to co-ordinate and to control.´ According to Peter F. Drucker ± ³Management is a multi-purpose organ that manages a business and managers and manages worker and work´. In the words of Koontz and O¶Donnel ± ³Management 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 ± ³The 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 ³management´ 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 ³management´. If the views of the various authorities are combined, management could be defined as a ³distinct 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 ³doing 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 ³doing 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 course, high efficiency is associated more typically with high effectiveness. And poor

Distinct Process: Management is a distinct process consisting of such functions as planning. buoyant spirit and adequate work output.management is most often due to both inefficiency and ineffectiveness or to effectiveness achieved through inefficiency. Thus. It is the most critical input in the success of any organized group activity. They must motivate the subordinates for the accomplishment of the tasks assigned to them. 5. capital and materials. labour. organizing. Results through Others: The managers cannot do everything themselves. 1. All these resources are made available to those who manage. Integrative Force: The essence of management is integration of human and other resources to achieve the desired objectives. 3. It is the force which assembles and integrates other resources. Thus. the process of management involves decision-making and putting of decisions into practice. feeling of management is result-oriented. experience and management principles for getting the results from the workers by the use of non-human resources. These functions are so interwoven that it is not possible to lay down exactly the sequence of various functions or their relative significance. labour and capital. 7. A Science and an Art: Management has an organized body of knowledge consisting of welldefined concepts. They must have the necessary ability and skills to get work accomplished through the efforts of others. So it is treated as a science. In essence. 4. 2. The application of these concepts. management is an essential ingredient of an organization. Economic Resource: Management is one of the factors of production together with land. Managers apply knowledge. directing and controlling. It is imperative that the organizational goals must be well-defined and properly understood by the mangers at various levels. Its presence is evidenced by the result of its efforts-orderliness. People often remark of the effectiveness (or ineffectiveness) of management on the basis of the end results. principles and techniques which have wide applications. staffing. Goal-oriented: Management is a purposeful activity. namely. Managers also seek to harmonize the individuals¶ goals with the organizational goals for the smooth working of the organization. 6. One may not see with the naked eyes the functioning of management but its results are apparently known. informed employees.3 Characteristics of Management Management is a distinct activity having the following salient features or characteristics: 1. The success of management is measured by the extent to which the organizational goals are achieved. although they can¶t observe it during operation. principles and techniques requires specialized . Intangible Force: Management has been called an unseen force. These factors do not by themselves ensure production. It co-ordinates the efforts of workers to achieve the goals of the organization. they require the catalyst of management to produce goods and services required by the society.

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

It devotes more time on planning and co-ordinating . viz. and the range of production. ranks. Financial Controller. 1. Marketing Manager. But in actual practice. 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.e. As a separate group.e. day-to-day matters. Administrative management is concerned with ³thinking´ functions such as laying down policy. Lower management (first line supervisors) is concerned with routine. wage and salary director of a company may assist in fixing wages and salary structure as a member of the Board of Directors. the lower level of management). its Chairman. or the Chief Executive. but as head of wages and salary department. All the managers form the chief executive to the first line supervisors are collectively addressed as µManagement¶ which refers to the group. planning and setting up of standards.and suggestions upward. policies and plans for the enterprise. ii) Middle management of a company consists of heads of functional departments namely. the term management refers to the group of individuals occupying managerial positions. Top management: Top management is the ultimate source of authority and it lays down goals. Operative management is concerned with the ³doing´ function such as implementation of policies. Managing Director. his job is to see that the decisions are implemented. Board of Directors. Levels of management refer to a line of demarcation between various managerial positions in an enterprise.. Foremen. or the General Manager or Executive Committee having key officers. one can identify three levels of management namely: i) Top management of a company consists of owners/shareholders. Purchase Manager. iii) Lower level or operative management of a company consists of Superintendents. etc.. Supervisors. The real significance of levels is that they explain authority relationships in an organization. The managerial class has become very important in modern organizations owing to its contribution to business success. The levels of management depend upon its size. and Divisional Sectional Officers working under these Functional Heads. technical facilities. (i) administrative management (i. Production Manager. and directing the operations to attain the objectives of the enterprise.. the upper level of management) and (ii) operating management (i. For instance. etc. Considering the hierarchy of authority and responsibility. or. · Management as a class or elite Sociologists view management as a distinct class in society having its own value system. Levels of Management An enterprise may have different levels of management. We generally come across two broad levels of management.

Without them the top management¶s plans and ambitious expectations will not be fruitfully realized. g) To motivate personnel to attain higher productivity and to reward them properly. Middle management: The job of middle management is to implement the policies and plans framed by the top management.functions. They are responsible to the top management for the functioning of their department. It is also described as the policy-making group responsible for the overall direction and success of all company activities. c) To prepare the organizational set up in their own departments for fulfilling the objectives implied in various business policies. The important functions of top management include: a) To establish the objectives or goals of the enterprise. They devote more time on the organization and motivation functions of management. f) To provide overall leadership to the enterprise. materials. duties and responsibilities for timely implementation of the plans. 2. d) To recruit and select suitable operative and supervisory staff. h) To co-operate with the other departments for ensuring a smooth functioning of the entire organization. They provide the guidance and the structure for a purposeful enterprise. e) To exercise effective control of the operations. b) To interpret the policies chalked out by top management. i) To collect reports and information on performance in their departments. It is accountable to the owners of the business of the overall management. c) To set up an organizational framework to conduct the operations as per plans. j) To report to top management. It serves as an essential link between the top management and the lower level or operative management. e) To assign activities. machines and methods to put the plans into action. f) To compile all the instructions and issue them to supervisors under their control. d) To assemble the resources of money. men. b) To make policies and frame plans to attain the objectives laid. The following are the main functions of middle management: a) To establish the objective or goals of the enterprise. .

counseling and effective leadership. manager tries to strike a happy balance between the demands of employees and organizational requirements. (i) Optimum use of resources: Management ensures optimum utilization of resources by attempting to avoid wastage of all kinds. (iii) Establishers sound industrial relations: Management minimizes industrial disputes and contributes to sound industrial relations in an undertaking. They pass on the instructions of the middle management to workers. an organization is merely a collection of men. Objective can be achieved only when the human and non-human resources are combined in a proper way. 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. Without management. It helps in putting the resources to the best advantage within the limitations set by the organization and its environment. procedures and reward systems. A right climate is created for workers to put in their best and show superior performance. methods. It enables employees to move cooperatively and achieve goals in a coordinated manner. With a view to realize the . In its absence. Industrial peace is an essential requirement for increasing productivity. Lower or operative management: It is placed at the bottom of the hierarchy of management. 3. They have to get the work done through the workers. The importance of management can be understood from the following points. the resources of production remain resources and never become production. (iv) Achievement of goals: Management plays an important role in the achievement of objectives of an organization. money and material.k) To make suitable recommendations to the top management for the better execution of plans and policies. Management makes group effort more effective. They initiate prompt actions whenever workers express dissatisfaction over organizational rules. sales officers. (ii) Effective leadership and motivation: In the absence of management. Management creates teamwork and motivates employees to work harder and better by providing necessary guidance. the working of an enterprise will become random and haphazard in nature. and actual operations are the responsibility of this level of management. management is the dynamic lift-giving element in every organization. They interpret and divide the plans of the management into short-range operating plans. They are in direct touch with the rank and file or workers.5 Importance of Management According to Drucker. Management is goal-oriented. evaluate their performance and report to the middle level management. supervisors. machines. 1. accounts officers and so on. They devote more time in the supervision of the workers. To this end. They allot various jobs to the workers. They are concerned with direction and control functions of management. It is the activating force that gets things done through people. They are also involved in the process of decisions-making. It consists of foreman. Their authority and responsibility is limited.

iv) The formation of ethical codes for the guidance of conduct. According to McFarland. (v) Change and growth: Changes in technology. hire competent people and provide necessary guidance. the Indian Institute of Management. Management is also a profession in the sense that formalized methods of training is available to those who desire to be managers. often threaten the survival of a firm. (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. a management degree is not a pre-requisite to become a manager. Successful managers are the ones who anticipate and adjust to changing circumstances rather than being passively swept along or caught unprepared. a profession possesses the following characteristics: i) A body of principles. Management as a profession By a professional manager. iii) The establishment of a representative organization with professiona-lizing as its goal. We have a number of institutes of management and university departments of management which provide formal education in this field. and specialized knowledge. They try to put everything on the right tract. all these help in realizing goals with maximum efficiency. Management is a profession to the extent it fulfils the above conditions. But unlike medicine or law. identifiable discipline. (vi) Improves standard of living : Management improves the standard of living of people by (a) using scarce resources efficiently and turning out profits. skills. Thus unnecessary deviations. A number of organizations such as the Administrative Staff College of India. Failure to take note of customer¶s needs regarding full efficiently has spelt doom for µIdeal java¶ in the two-wheeler market in India. Training facilities are provided in most companies by their training divisions. etc.. forecasting combined with efficient use of resources) and taking appropriate steps. and it is distinct. (b) Ensuring the survival of the firm in the face of continued changes. It is a profession in the sense that there is a systematized body of management. Organize the resources properly. Management . In the final analysis. Overlapping efforts and waste motions are avoided. techniques. and v) The charging of fees based on the nature of services. Managers help an organization by anticipating these changes (carefull planning. ii) Formalized methods of acquiring training and experience. It has also developed a vast number of tools and techniques. 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. government policy. competition.predetermined goals-managers plan carefully. An enterprise has to take note of these changes and adapt itself quickly.

A. This role includes hiring. It may be concluded from the above discussion that management is a science. an art as well as a profession. management is not as exact as natural sciences. There are a number of representative organizations of management practitioners almost in all countries such as the All India Management Association in India.6 Role of Management In the late 1960s. and decision-making. he or she is acting in a figurehead role. none of them has the professionalizing of the management as its goal.S. Henry Mintzberg did a careful study of five chief executives at work. Mintzberg concluded that managers perform ten different but highly interrelated roles. However. unpatterned. the American Management Association in U. do not seem to adhere to the principle of ³service above self´. For instance. however. bribing public officials to gain favours. etc. sabotaging trade unions. and the university departments of management offer a variety of short-term management training programmes. Half of these managers¶ activities lasted less than nine minutes each. the All India Management Association. 1. 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. training.Development Institute. As a social science.. managers in general. There was little time for reflective thinking because the managers encountered constant interruptions. Mintzberg provided a categorization scheme for defining what managers do based on actual managers on the job. All managers have a role as a leader. motivating. What he discovered challenged several long-held notions about the manager¶s job. Some individual business organizations. These ten roles can be grouped as those primarily concerned with interpersonal relationships. and disciplining employees. Mintberz found that his managers engaged in a large number of varied. The term µmanagement roles¶ refers to specific categories of managerial behaviour. little regard is paid to the elevation of service over the desire for monetary compensation is evident by switching of jobs by managers. In fact. manipulating prices and markets are by no means uncommon management practices. Management partially fulfils the third characteristic of profession. Furthermore. The third role within the interpersonal grouping is the . and short-duration activities. and it is not as fully a profession as medicine and law. There is no ethical code of conduct for managers as for doctors and lawyers. However. Indeed such mobile managers are regarded as more progressive and modern than others. try to develop a code of conduct for their own managers but there is no general and uniform code of conduct for all managers. the transfer of information. Management does not fulfill the last two requirements of a profession. Interpersonal Roles: All managers are required to perform duties that are ceremonial and symbolic in nature ± interpersonal roles. But in addition to these insights. in contrast to the predominant views at the time that managers were reflective thinkers who carefully and systematically processed information before making decisions.

subordinates. Informational Roles: All managers. understanding of organization and environment. training. fulfill informational roles-receiving and collecting information from organizations and institutions outside their own. network of outside contacts and doing external board work. Typically. activities that involve responsible for staffing. they do so by reading magazines and talking with others to learn of changes in the public¶s tastes. When that sales manager confers with other sales executives through a marketing trade association. that involve outsiders. Table 1. he or she has an outside liaison relationship. Responsible for the motivation Performing virtually all and activation of subordinates. Seeks and receives wide variety Reading periodicals and of special information (much of reports. to some degree. obliged to Greeting visitors. manages also perform a spokesperson role. The sales manager who obtains information from the human resources manager in his or her same company has an internal liaison relationship. informers who provide favors performing other activities and information. When they represent the organisation to outsiders. Mintzberg called this the monitor role. signing perform a number of routine legal documents. Transmits information received Holding informational from outsides or from other meetings.liaison role. Managers also act as a conduit to transmit information to organizational members. and associated duties. This is the disseminator role. Maintains self-developed Acknowledging mail. making phone subordinates to members of the calls to relay information. duties of a legal or social nature. Mintzberg described this activity as contacting external sources who provide the manager with information. emerges as nerve center of internal and external information about the organization. Informational Monitor Disseminator . These sources are individuals or groups outside the manager¶s unit. and may be inside or outside the organization.1: Mintzberg¶s Managerial Roles Role Interpersonal Figurehead Description Identifiable Activities Leader Liaison Symbolic head. and the like. maintaining it current) to develop thorough personal contacts. what competitors may be planning.

results. As entrepreneurs. Searches organization and its Organizing strategy and environment for opportunities review sessions to develop and initiates ³improvement new programs.Spokesperson organization ± some information is factual. some involves interpretation and integration of diverse value positions of organizational influencers. Responsible for corrective Organizing strategy and action when organization faces review sessions that important. negotiations. Inc. projects´ to bring about change. Transmits information to Holding board meetings. managers are responsible for allocating human. Publishers. Last. programming of subordinates work. unexpected involve disturbances and disturbances crises Responsible for the allocation Scheduling. . physical and monetary resources. managers perform as negotiators when they discuss and bargain with other groups to gain advantages for their own units. managers initiate and oversee new projects that will improve their organization¶s performance. pp 93-94 Copyright Ó 1973 by Hency Mintzberg. Decisional Roles: Finally. policies. As resource allocators. serves as expert on organization¶s industry. As disturbance handlers. 1973). outsiders on organization¶s giving information of the plans. the making any activity that involves or approval of all significant budgeting and the organizational decisions. media. requesting of organizational resources of authorization. Responsible for representing Participating in union the organization at major contract negotiations. Decisional Entrepreneur Disturbance handler Resource allocator Negotiator Source: Henry Mintzberg. Mintzberg identified four decisional roles which revolve around the making of choices. The Nature of Managerial Work (New York: Harper & Row. supervises design of certain projects as well. actions. managers take corrective action in response to previously unforeseen problems. etc. performing all kinds ± in effect. Reprinted by permission of Harper & Row..

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. lead. Technical skills include knowledge of and proficiency in a certain specialized field. Technical Skills: First-line managers. computers. and all managers are involved in making decisions. Katz found that managers need three essential skills or competencies: technical. figurehead. During the early 1970. The evidence generally supports the idea that managers ± regardless of the type of organization or level in the organization-perform similar roles. even top managers need some proficiency in the organization¶s speciality. However. Human Skills: The ability to work well with other people both individually and in a group is a human skill. They know how to communicate. the emphasis that managers give to the various roles seems to change with hierarchical level. are heavily involved in technical aspects of the organization¶s operations. Since managers deal directly with people. motivate. Specifically. such as engineering. He also found that the relative importance of these skills varied according to the manager¶s level within the organization. research by Robert L. this skill is crucial. a manager¶s job is varied and complex. liaison. These abilities are essential to effective decision-making. For example. and spokesperson are more important at the higher levels of the organization than at the lower ones. 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. Managers with good human skills can get the best out of their people. human. and inspire enthusiasm and trust. In fact. it remains just as important at the top levels of management as it is at the lower levels. Managers need certain skills to perform the duties and activities associated with being a manager. finance. Conversely. . the leader role is more important for lower-level managers than it is for either middle-or-top-level managers. negotiator. the roles of disseminator. as well as many middle managers. Conceptual Skills: Managers also must have the ability to think and to conceptualize about abstract situations. Although technical skills become less important as manager moves into higher levels of management. an accounts payable manager must be proficient in accounting rules and standardized forms so that she can resolve problems and answer questions that her accounts payable clerks might encounter. or manufacturing. These types of conceptual skills are needed by all managers at all levels but become more important as they move up the organizational hierarchy. and conceptual. Managerial Skills As you can see from the preceding discussion.

Administration is a higher level function: Administration refers to policy-making. Administration is a determinative function. Spriegel and Walter. 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.1. Some writers do not see any difference between the two terms. Scope . Administration relates to the decision-making. Administrators are basically concerned with planning and control. whereas management refers to execution of policies laid down by administration. It is a thinking function. administration involves broad policy-making and management involves the execution of policies laid down by the administration. This controversy is discussed as under in three heads: i) Administration is concerned with the determination of policies and management with the implementation of policies. It is concerned with the implementation of policies. It is concerned with determination of major objectives and policies. Nature 3. plans and policies of the organisation. Thus. ii) Management is a generic term and includes administration. 2. management is a lower-level function and is concerned primarily with the execution of policies laid down by administration. Management relates to execution of decisions.2: Distinction between Administration and Management: Basic 1. It is a doing function. Floerence and Tead. Management Management means getting the work done through and with others. management as an executive function which is primarily concerned with carrying out of the broad policies laid down by the administration. on the other hand. iii) There is no distinction between the terms µmanagement¶ and µadministration¶ and they are used interchangeably. etc. Thus. Those who held management and administration distinct include Oliver Sheldon. This view is held by Tead. But some English authors like Brech are of the opinion that management is a wider term including administration. According to them. Table 1. administration is a higher level function. while others maintain that administration and management are two different functions. Meaning Administration Administration is concerned with the formulation of objectives. Spriegal and Lansburg.7 Administration and Management The use of two terms µmanagement¶ and µadministration¶ has been a controversial issue in the management literature. Managers are concerned mainly with organisation and direction of human resources.

Define management. DecisionMaking Administration determines Management decides who what is to be done and when it shall implement the is to be done.9 Terminal Questions 1. Managers perform different roles to discharge their responsibilities. __________is principally the task of planning. administrative decisions. counseling and effective leadership. machinery and methods or ways of doing things) depends to a great extent on the quality of management. 1.. environmental forces. ___________. 1. Lower level managers require and use a greater degree of technical skill and managers at higher levels use a greater degree of conceptual skill. middle and lower. Management creates ________ and motivates employees to work harder and better by providing necessary guidance. Human skills are important at all managerial levels. 8. . co-ordinating.e. _________. 6. 5. There are three levels of management-top. Management is largely found at the middle and lower levels and administration is found at the higher levels. 7. Environment Administration has direct Management is mainly interaction with external concerned with internal environment of business and forces. making strategic plans to deal plans and policies of the effectively with the organisation. 2. public organisations in the private sector and non-business sector. i. Five M¶s of management (________. motivating and controlling the efforts of others towards a specific objective. Still management is not completely a profession. It is the management which transforms physical resources of an organization into productive resources. operative workforce for the execution of plans. 3. Status Administration refers to Management is relevant at higher levels of management.4. Explain its characteristics.8 Summary Management is concerned with getting things done through other people. objectives. Direction of It is concerned with leading It is concerned with Human Resources and motivation of middle level leading and motivation of executives. Self Assessment Questions 1. Usage of Term The term µadministration¶ is The term µmanagement¶ is often associated with widely used in business government offices. organisations. lower levels of management.

3.3 Planning 2.1.1 Introduction Objectives 2. 1. Refer section 1. materials.2. Discuss the importance of management. Refer section 1.3 2.2. teamwork Answers to TQs: 1.5 3. manpower 3. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.7 Copyright © 2009 SMU Powered by Sikkim Manipal University . Management 2.10 Answers to SAQs and TQs SAQs: 1. Refer section 1. Bring out the difference between Administration and Management. Money.2 Process of Management 2.4 Organizing .

Management functions are as follows (Fayol. Staffing. as the action of measuring a quantity on a regular basis and of adjusting some initial plan.1 Introduction Follett (1933) defined management as "the art of getting things done through people´. in recent time.6 Directing 2.10 Answers to SAQs and TQs 2. · Explain different functions of management Process. Commanding 4.9 Terminal Questions 2. Planning 2. management functions have been regrouped into four categories. Objectives: After this studying this unit. 1949): 1. you will be able to: · Define Management process.7 Motivating Self Assessment Questions 2.2.5 Staffing 2. Motivating. Organizing. Coordinating 5.8 Summary 2. Directing. Organizing 3. One can also think of management functionally. Controlling However. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent. . · Explain Planning.

All levels of management engage in planning in their own way for achieving their preset goals. leadership is doing the right things³. You might well ask what the need for a policy is when objectives are already defined. leadership is about setting the desirable goals. and developing plans to integrate and coordinate activities. overall goals. kicking the ball with the left foot or right foot is a reflex action. general strategies. However.2 Management Process Peter Drucker said: ³Management is doing things right. while a policy. Strategic Planning: Top level managers engage chiefly in strategic planning or long range planning Strategic planning is the process of developing and analyzing the organization¶s mission. thus. Management is about accomplishing a goal efficiently. cost structure and so on. The tasks of the strategic planning process include the following steps: Define the mission: . In the football field. Every organization needs to plan for change in order to reach its set goal. driving comfort.3 Planning It involves the process of defining goals. Planning in order to be useful must be linked to the strategic intent of an organization. 2. Even so. a process in which one chooses a course which one thinks is the best. 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. Decision ± Making Taking decisions is a process. Policy Formulation We have noted earlier that all organizations have well-defined goals and objectives. There is a degree of overlap between the two. say a passenger car. it is not a decision in which any process is involved. studies on passenger comfort. or where you want go to. Objectives are the ends. what distinguishers policies form objectives is that you first decide the objective. planning is often referred to as strategic in nature and also termed as strategic planning. It is difficult to say where objectives end and policies begin.2. establishing strategies for achieving these goals. the two are not quite the same. and then set out the method for achieving it. It provides the direction for the other functions of management and for effective teamwork. fuel and machine efficiency. should precede a good deal of research involving market surveys. Through leadership and management often overlap. Therefore. Planning also enhances the decisionmaking process. and allocating resources. the decision to change the design of a product. it would be correct to assume that an objective is what you want to accomplish. Effective planning enables an organization adapt to change by identifying opportunities and avoiding problems. policies are the means to achieve those ends.

professional or trade associations (conventions and exhibitions).A mission is the purpose of the organization. How efficient is our manufacturing? 3. federal. What are the vulnerable areas of the organization that could be exploited? 2. For assessing the strengths of the organization the following questions are important: 1. How skilled is our workforce? 4. The SWOT analysis begins with a scan of the external environment. Organizations need to examine their business situation in order to map out the opportunities and threats present in their environments. Opportunities. The mission statement is broad. A mission statement should be short ± and should be easily understood and every employee should ideally be able to narrate it from memory. SWOT analysis provides the assumptions and facts on which a plan will be based. customers (internal and external). Are the technologies obsolete? For identifying opportunities the following elements need to be looked at: . professional. planning begins with clearly defining the mission of the organization. journals and reports (scientific. Are the facilities outdated? 3. The mission statement may be accompanied by an overarching statement of philosophy or strategic purpose designed to convey a vision for the future as envisaged by top management. Weaknesses. governments (local. Threats) analysis is vital for the creation of any strategic plan. What is our market share? 5. and trade). An explicit mission guides employees to work independently and yet collectively toward the realization of the organization¶s potential. Sources of information may include stakeholders like. suppliers. Is research and development adequate? 4. Analyzing strengths and weaknesses comprises the internal assessment of the organization. Thus. What makes the organization distinctive? 2. What financing is available? 6. Conduct a situational or SWOT analysis A situation or SWOT (Strengths. state. international). Do we have a superior reputation? For assessing the weaknesses of the organization the following questions are important: 1. summarizing what the organization does.

earnings per share. Is there a shortage of resources? 4. In which areas does the competition meet customer needs more effectively? 2. or outcomes of an organization against similar measures from other internal or external organizations. In which areas is the competition not meeting customer needs? 2. Are there new competitors? 3. organizations have longterm objectives for factors such as. Objectives are also called performance goals. It also helps in setting minimum acceptable standards or common-sense minimums. return on investment.1. the best strategy is one that fits the organization¶s strengths to opportunities in the environment. Are market tastes changing? 5. What are the new regulations? 6. effectiveness. They are aligned with the mission and form the basis for the action plans of an organization. Develop related strategies (tactical and operational) . Are our rivals weak? 5. What are the emerging technologies? 6. Is there a possibility of growth of existing market?) Identifying threats involves the following: 1. The SWOT analysis is used as a baseline for future improvement. as well as gap analysis. Set goals and objectives Strategic goals and objectives are developed to fill the gap between current capability and the mission. What is the strength of the economy? 4. Generally. What substitute products exist? In general terms. Benchmarking systematically compares performance measures such as efficiency. What are the possible new markets? 3. Comparing the organization to external benchmarks (the best practices) is used to assess current capabilities. etc.

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

Thus staffing deals with the future requirements also. 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. Deals with people: Staffing is a separate managerial function which deals with people in the organization. . selection. Pervasiveness of Staffing: Effective execution of staffing function is the responsibility of all managers in the organization. development. performance appraisal etc. Koontz. recruitment. placement. recruitment. This task has been referred to as staffing. Therefore it is the responsibility of the management to secure and maintain competent and dedicated workforce including managers and operatives. growth and development of all those members of the organization whose function is to get things done through the efforts of other individuals´. 2. transfer and appraisal of personnel to fill the organizational positions. inventorying the people available. placement. selection. Present positions must be filled keeping in mind the future requirements. Staffing refers to the managerial function of determining and improving the manpower requirements of an enterprise. 2. It has many sub-functions: Staffing involves determination of the manpower requirement. promotion. Theo Haimann ± ³Concerned with the placement.It is not the machines. Curther Geelick Cyndall Urwick ± ³Staffing 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 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´. It deals with future requirements: Staffing deals with current and future personnel requirements. money. materials. 3. Managers of the concerned departments are responsible for the selection and development of qualified people for their department and maintain them in their department. 5. It involves many sub-functions such as manpower planning. 3. O¶Donnell & Weihrich have defined staffing as ³filling positions in the organization structure through identifying work force requirements. Definition: 1. appraisal. training. 4.

e. Direction is an important managerial function. vacancies arise out of retirement. Definition According to Koontz and O¶Donnel. It is a continuous function: With the growth and expansion of business additional manpower is needed. Personnel policies and programs must be formulated as guides to perform the staffing function effectively. how to do and telling them to do to the best of their ability. selection. 5. overseeing and leading people. It is an important managerial function. It is a process: it is a process having a logical sequence i. Thus staffing is an ongoing process through ± out the life of an organization. . It is instructing people as to what to do. training development and maintenance of personnel. It is a continuing function. 8. Characteristics of Direction The characteristic features of direction are as follow: 1. on the other. management initiates actions in the organization. Direction has dual objectives. On the one hand. It emphasizes that a subordinate is to be directed by his own superior only. 4. directing is the ³interpersonal aspect of managing by which subordinates are led to understand and co-ordinate effectively and efficiently to the attainment of enterprises goals´. Direction imitates at the top level in the organization and follows to bottom through the hierarchy. Direction is the managerial function of guiding. induction. identifying the manpower requirements. lead them and guide them on a continuous basis.6. A manger needs to give orders to his subordinates. 2. recruitment. Through direction. resignation. it aims at getting things done by subordinates and. Direction is continuous process and it continues throughout the life-time of the organization.6 Directing Direction is one of the functions of management. 7. motivate them. to provide superiors opportunities for some more important work which their subordinates cannot do. 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. Direction function is performed at every level of management. promotion. 2. 3. etc.

and external esteem factors. organizing and staffing on one hand and controlling on the other. will vary depending upon his level. 4. Directing is the process around which all performances revolve. and other bodily needs · Safety: Includes security and protection from physical and emotional harm · Social: Includes affection. acceptance. Pervasive function: Directing is a managerial function performed by all mangers at all levels of the organization. humanness and psychological health a person will show. without guiding and overseeing subordinates.Nature of Directing The nature of directing can be discussed under the following: 1. and the Two-Factor theory. and attention . The person advances to the next level of needs only after the lower level need is at least minimally satisfied. such as. human beings have wants and desires which influence their behaviour. As Theo Haimann puts it. ³without the issuance of directives. teach. only unsatisfied needs can influence behavior. recognition. status. 2. 3. coach and supervise his subordinates. The manager never ceases to direct. The further they progress up the hierarchy. The needs are arranged in order of importance. the number of subordinate he has and the other duties he is expected to perform.7 Motivating Motivating In the 1950s three specific theories were formulated and are the best known: Hierarchy of Needs theory. It is an important function of management: Directing is an important management function which provides a connecting link between planning. proposed by Maslow (1943). the more individuality. self-respect. nothing or at the best very little would be accomplished´. The amount of time and effort an executive spends in directing however. such as. and friendship · Esteem: Includes internal esteem factors. guide. sex. Maslow¶s Hierarchy of Needs Theory According to this theory. shelter. 2. belongingness. thirst. satisfied needs cannot. Essence of performance: Directing is the process around which all performances revolve. from the basic to the complex. Theories X and Y. and achievement. autonomy. Continuous function: Directing is a continuous process. The five needs are: · Physiological: Includes hunger.

self-motivated. Extrinsic factors. working conditions. and salary are hygiene factors. esteem. 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. autonomy and empowerment.· Self-actualization: The drive to become what one is capable of becoming. if given the chance employees have the desire to be creative and forward thinking in the workplace. includes growth. such as. These two factors are motivators and hygiene factors and this theory is also called motivation-hygiene theory. Presence of these factors ensure job satisfaction. responsibility. Theory Y assumes that higher-order needs dominate individuals. Motivators are intrinsic factors. achieving one¶s potential. supervision. It is also believed that. it is clear that Theory X assumes that lower-order needs dominate individuals. but their presence does not motivate or create satisfaction. if they can. . Lower-order needs are predominantly satisfied. company policy. externally. whereas. and self-fulfillment Maslow separated the five needs into higher and lower orders. Social. From the above. advancement. and exercise self-control. The absence of hygiene factors can create job dissatisfaction. and achievement. and self-actualization are classified as higher-order needs. Workers need to be closely supervised and a comprehensive system of controls and a hierarchical structure is needed to supervise the workers closely. There is a chance for greater productivity by giving employees the freedom to perform to the best of their abilities without being bogged down by rules. Theory X ± In this theory management assumes employees are inherently lazy and will avoid work. It is also assumed that workers generally place security above all other factors and will display little ambition. Higher-order needs are satisfied internally. recognition. such as. Herzberg¶s Two Factor Theory Herzberg (1959) constructed a two-dimensional paradigm of factors affecting people¶s attitudes about work. Physiological and safety needs are described as lower-order. interpersonal relations. anxious to accept greater responsibility. It is believed that employees enjoy their mental and physical work duties. Theory Y ± In this theory management assumes employees may be ambitious. self-direction.

____defined management as the art of getting things done through people. Planning involves the process of defining goals. structuring. 2. Every organization needs to plan for change in order to reach its set goal. and developing plans to integrate and coordinate activities. who is to do. emphasize factors intrinsically rewarding that are associated with the work itself or to outcomes directly derived from it. establishing strategies for achieving these goals. who reports to whom.9 Terminal Questions 1. _______refers to the managerial function of determining and improving the manpower requirements of an enterprise. It is the process of determining what tasks are to be done. Explain Staffing in detail 3. how the tasks are to be grouped.8 Summary Management is the art of getting things done through people. 2. The _____analysis begins with a scan of the external environment. motivators describe a person¶s relationship with what she or he does. and coordinating the work components to achieve organizational goal. have to do with a person¶s relationship to the context or environment in which she or he performs the job. 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. It involves many sub-functions such as manpower planning. Write a short not on directing. Staffing refers to the managerial function of determining and improving the manpower requirements of an enterprise. Self Assessment Questions 1. To motivate people. 2. Organization involves designing. Removing dissatisfying characteristics from a job does not necessarily make the job satisfying. many related to the tasks being performed.10 Answers to SAQs and TQs SAQs: . neither will they be satisfied. recruitment. 3. 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. performance appraisal etc.In summary. Hygiene factors on the other hand. and where decisions are to be made. When hygiene factors are adequate. Job satisfaction factors are separate and distinct from job dissatisfaction factors. What is planning? 2. 2. people will not be dissatisfied.

6 OD and Management Development 3.2 Definitions 3. Reference 2.7 Role of OD 3.3 Characteristics of OD 3. SWOT 3.1 Introduction Objectives 3. Follett 2.1.5 3.5 Goals of OD 3. Staffing Answers to TQs: 1.4 Categories of OD 3. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3.8 Problems in OD . Reference 2.3 2. Reference 2.6 Copyright © 2009 SMU Powered by Sikkim Manipal University .

old jobs are being destroyed at an accelerating pace. and the like. In summary. and processes.9 Summary 3. Basically. and learn how to do that better and better over time. organization structure. organization development represents one of the best strategies for coping with the rampant changes occurring in the marketplace and society. Organizations face multiple challenges and threats today ± threats to effectiveness.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. strategy formulation and implementation. adapt. Although new jobs are being created at record rates. the answer is ³yes´. We predict that organization development will be preferred improvement strategy in future. take advantage of opportunities. teams. culture.11 Answers to SAQs and TQs 3. Are any strategies available to help people and organizations cope. .Self Assessment Questions 3. organization development is a process of teaching people how to solve problems. and attention was soon directed toward other human and social processes in organizations such as the design of work tasks. and the constant challenge to maintain congruence among organizational dimensions such as technology. organizations and the individuals in them face an enormously demanding present and future. fighting obsolescence of one¶s knowledge and skills. Keeping organizations healthy and viable in today¶s world is a daunting task. A variety of solutions exists. and even prosper in these vexing times? Fortunately. and profitability. and changing customer demands. ³Knowledge´ work is replacing ³muscle´ work. 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. Individuals in organizations likewise face multiple challenges ± finding satisfaction in and through work. And organization development (OD) is one of them. OD focuses on issues related to the ³human side´ of organizations by finding ways to increase the effectiveness of individuals.10 Terminal Questions 3. 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. Early returns were encouraging. survive. 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. Organization development is a relatively recent invention. increased competition. and the organization¶s human and social processes. maintaining dignity and purpose in pursuit of organizational goals. strategy. Today. efficiency. conflict resolution. challenges from turbulent environments.

A ³process for improving processes´ ± that is what OD has basically sought to be for approximately 25 years (Vaill. (Bennis. planning and communication) to one which institutionalizes and legitimizes this examination. 1989) . values and structure of organization so that they can better adapt to new technologies. strategy. 1980). a complex educational strategy intended to change the beliefs. and 3) Developing the organization¶s self-renewing capacity (Beer. 1971) Organizational development is a process of planned change.2 Definitions Organization Development (OD) is a response to change. · Distinguish between OD and Management Development · Explore the problems in OD. 2) Developing new and creative organizational solutions. (Burke and Hornstein. (Schmuck and Miles. using reflexive. attitudes. self-analytic methods. markets. and culture. processes. 1972) The aims of OD are: 1) Enhancing congruence between organizational structure. you will be able to: · Define organization development. OD can be defined as a planned and sustained effort to apply behavioural science for system improvement. 3. 1969). people. 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«. · Discuss the categories of OD programme. · Explain the characteristics of OD.change of an organization¶s culture from one which avoids an examination of social processes (especially decision making. and the dizzying rate of change itself. and challenges.Objectives: After studying this unit. · State the goals of OD.

and contain several unique insights (that¶s enlightening). empowerment. One program or initiative moves the organization to a higher plateau.´ (Burke. There is no set definition of OD and no agreement on the boundaries of the field. Top management must initiate the improvement . and that practitioners share a central core of understanding as shown in the preceding definitions. serious business. All authors agree that OD applies behavioural science to achieve planned change. but it includes a number of components that we consider essential. 1994) As you can see. what practices should be included and excluded.´ (Cummings and Worley. values. Now let¶s turn to our definition of organization development. Collectively. but as one that includes characteristics we think are important for the present and future of the field. it is more accurate to describe ³improvement´ as a never-ending journey of continuous change. They describe in broad outline the nature and methods of OD. they agree that the target of change is the total organization or system and that the goals are increased organizational effectiveness and individual development. 1993) ³Organization development is a planned process of change in an organization¶s culture through the utilization of behavioural science technologies.³Organizational development is a set of behavioural science-based theories. Likewise. then another moves it to yet a higher plateau of effectiveness. these definitions overlap a great deal (that¶s encouraging). But these are not serious constraints given that the field is still evolving. learning. We will explain this definition in some detail. and theory. and problem-solving processes. it includes pain and setbacks as well as success. and techniques aimed at the planned change of the organizational work setting for the purpose of enhancing individual development and improving organizational performance. There is no ³quick fix´ when it comes to lasting organizational improvement. strategies. and processes for improving an organization¶s effectiveness.´ (Porras and Robertson. ³Organization development is a long-term effort.´ This definition is lengthy. structure. to improve an organization¶s visioning. including action research. Organizational change is hard. The phrase led and supported by top management states an imperative: Top management must lead and actively encourage the change effort. research. 1992) ³OD is a systematic application of behavioral science knowledge to the planned development and reinforcement of organizational strategies. through the alteration of organizational members¶ on-the-job behaviours. In fact. By long-term effort. that is. these definitions convey a sense of what organization development is and does. We do not propose it as the ³right´ definition. through an ongoing. we mean that organizational change and development takes time.several years in most cases. collaborative management of organization culture-with special emphasis on the culture of intact work teams and other team configurations-using the consultant-facilitator role and the theory and technology of applied behavioural science. led and supported by top management.

we mean involving large numbers of people in building the vision of tomorrow. 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. sentiments. vitality. lost its commitment. and processes makes each important. widely shared vision of a desired future creates the best climate for effective problem-solving by all the organization¶s members. structure. so is managing the culture. has a stake in making the organization work. not just a small group. For empowerment to become fact of life. structure. We further believe that having compelling. Michael Beer¶s definition called for ³developing new and creative organizational solutions´. Still. and what the organization and its members can expect from each other. and culture. or became distracted with other duties. we affirm our belief that culture is the bedrock of behaviour in organizations. attitudes. By empowerment. the ways those goods will be produced and delivered to customers. managing the culture should be a collaborative business. it must be built into the very fabric of the organization-its strategy. The reciprocal influence among culture. culture is of . and artifacts. Collaborative management of the culture means that everyone. first. we mean those interacting. opportunities. commitment. Peter Senge describes learning organizations as ³« organizations where people continually expand their capacity to create the results they truly desire. in contrast to having only a select few involved. By ongoing collaborative management of the organization¶s culture. activities. and take actions on problems. expectations. listening. and where people are continually learning how to learn together. we mean those leadership behaviours and human resource practices that enable organization members to develop and use their talents as fully as possible toward individual growth and organizational success. and organizational learning. developing the strategy for getting there. and making it happen. beliefs. and each influences the others. and challenges in the organization¶s environment and its internal functioning.³journey´ and be committed to seeing it through. solve problems. and shared picture of the nature of the products and services the organization offers. By empowerment processes. assumptions. By learning processes. make decisions. coherent. and common purposes of all members of the organization. learning. team. one of widespread 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. By visioning processes. that one of the most important things to manage in organizations is the culture: the prevailing pattern of values. empowerment. We believe solutions to problems are enhanced by tapping deeply into the creativity. where new and expansive patterns of thinking are nurtured.´ Problem-solving processes refer to the ways organization members diagnose situations. interactions. we mean those processes through which organization members develop a viable. Just as visioning. And second. and problem-solving processes are opportunities for collaboration in organization development. By including culture so prominently in our definition. norms. Empowerment means involving people in problems and decisions and letting them be responsible for results. Most OD programs that fail do so because top management was ambivalent. where collective aspiration is set free. processes. we mean. strategy. and self-examining processes that facilitate individual.

much rework. and continuous learning the organization is bound to succeed. 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. so they are the place OD programs often begin ± getting people to stop doing things one way and start doing them a different way. In Liberation Management. such as design. So culture consists of basic assumptions. The results are usually highly gratifying both for the team members and for the organization. and norms of behaviour that are viewed as the correct way to perceive. empowerment. manufacturing. and we highlight the importance of visioning. think. (b) invented. therefore (e) is to be taught to new members as the (f) correct way to perceive. Our definition also places considerable weight on organizational processes. and feel in relation to those problems. and feel-that is why culture change is necessary for true organizational improvement. Edgar Schein clarifies the nature and power of culture in his definition: ³Culture can now be defined as (a) a pattern of basic assumptions. . This method resulted in loss of synergy. and considerable antagonism among the separate functional specialists.primary importance. The most prevalent form of teams in organizations is intact work teams consisting of superior and subordinates with a specific job to perform. We think teams are the basic building blocks of organizations. firing. engineering. we recognize that teams are central to accomplishing work in organizations. Today¶s organizations increasingly use ad hoc teams that perform a specific task and disband when the task is completed. Team building and role and goal clarification interventions are standard activities in OD programs directed toward intact work teams. We believe that when the culture promotes collaboration. learning. These self-directed teams assume complete responsibility for planning and executing work assignments. But change becomes permanent when the culture changes and people accept the new ways as the ³right´ ways. In addition to team building and role and goal clarification. He uses the terms µmultifunctional projectization¶ and µhorizontal systems¶ to describe these teams and their work. the process ³threw the results over the wall´ to the next functional unit. individuals and the organization function well. and using management information. intact work teams do not have a boss in the traditional sense-the teams manage themselves. self-directed teams control performance appraisals. discovered. Over time. empowerment. and procurement. Processes are how things get done. or developed by a given group. (c) as it learns to cope with its problems of external adaptation and internal integration. Further. hiring. Processes are relatively easy to change. wasted time. and then disbanded with the people going on to new tasks. Temporary. When one function finished with its part of the project. The old method was to have functional specialists work on the problem sequentially. think. (d) that has worked well enough to be considered valid and. members are trained in competencies such as planning. values. team culture can be collaboratively managed to ensure effectiveness. and problem-solving processes. maintaining quality control. Tom Peters predicts that the work of tomorrow (most of which will be ³brain work´) will be done by ad hoc teams brought together to accomplish a task. When teams function well. But in many organizations today. and training. By intact work teams and other configurations.

3 Characteristics of OD 1. 2. 3. OD focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. The concept of comprehensive change is based on the systems concept-open. Planned Change: OD is a strategy of planned change for organizational improvement. The definition we have just analyzed contains the elements we believe are important for OD. so that change is easily observed.multifunctional. OD practitioners are facilitators. This µplanned¶ emphasis separates OD efforts from other kinds of more haphazard changes that are frequently undertaken by organizations. Teams of all kinds are particularly important for accomplishing tasks and are targets for OD activities. rather than focusing attention on individuals. here are the primary distinguishing characteristics of organization development: 1. and co-learners with the client system. OD views organization improvement as an ongoing process in the context of a constantly changing environment. To summarize. OD focuses on culture and processes. dynamic and adaptive system. 2. constantly shifting teams will be the dominant configuration for getting work done. OD takes a developmental view that seeks the betterment of both individuals and the organization. 10. OD focuses on total system change and views organizations as complex social systems. OD encourages collaboration between organization leaders and members in managing culture and processes. Participation and involvement in problem-solving and decision-making by all levels of the organization are hallmarks of OD. Specifically. according to Peters. OD relies on an action research model with extensive participation by client system members. 8. Attempting to create ³win-win´ solutions is standard practice in OD programs. 6. 4. OD . 3. 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. Comprehensive Change: OD efforts focus on comprehensive change in the organization. 9. collaborators. 7. 5. 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.

Thus. Key areas are the normative type of model. evaluates these data. Action research is the basis for such intervention. Normative Educational Process: OD is based on the principle that µnorms form the basis for behaviour and change is a re-educative process of replacing old norms by new ones¶. This is done to arrive at certain desirable outcomes that may be in the form of increased effectiveness. collects relevant data. it is a programme with a purpose that is to guide present and future action. or catalyst. 4. OD efforts are not one-shot actions. they are ongoing. 6. joint goals and means. A change agent in OD process does not just introspect the people and introduce changes. so the methods of attaining these goals should also change. and mutual influence. He shares a social philosophy about human values. OD attempts to provide opportunities to be µhuman¶ and to increase awareness.4 Categories of OD Programmes In general. growth. There is a close working relationship between the change agent and the target organizational members to be changed. He designs intervention strategies based on these data. (b) Problems of human satisfaction and development. It recognizes that organizational goals change. participation. At the individual level.efforts take an organization as an interrelated whole and no part of it can be changed meaningfully without making corresponding changes in other parts. Rather. problem-solving. 7. interactive. third party change agent. further more. Emphasis on Intervention and Action Research: OD approach results in an active intervention in the ongoing activities of the organization. rather. OD focuses on the elevation of an organization to a higher level of functioning by improving the performance and satisfaction. The change agent is a humanist seeking to get a humanistic philosophy in the organization. Organization Development is inextricably linked with action. takes actions for intervention. and adaptability for the organization as a whole. identity. Long-range Change: OD efforts are not meant for solving short-term. They discourage µdo it yourself¶ approach. The relationship involves mutual trust. 3. Participation of Change Agent: Most OD experts emphasize the need for an outside. and (c) Problems of organizational effectiveness. temporary. rather. and cyclic processes. he conducts surveys. 5. all types of experience requiring Organization Development efforts may be grouped into three categories: (a) Problems of destiny. 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. the importance and centrality of goals and objectives and the different role requirements . or isolated problems. and revitalization. 3. and integrate individual and organizational goals. and then.

3. We need to examine carefully the techniques of Organization Development. first. (f) To develop a reward system which recognizes both the achievement of the organization¶s goals (profit or service) and development of people. (c) The interventions are directed towards problem-solving and improved functioning for the client system. . problem solving climate throughout an organization. (g) To increase the sense of µownership¶ or organization¶s objectives throughout the work force.of the consultant change agent vis-à-vis the clients. like other normative re-educative programmes. This Organization Development progrmmes. Although Organization Development Programmes vary. (b) To supplement the authority associated with role or status. (c) To locate decision making and problem-solving responsibilities as close to sources of information as possible. yet following features are common to most of the programmes: (a) The client is a total system or major subunit of total system. (e) To make competition more relevant to work goals and to maximize collaborative efforts. and (d) The interventions are based on behavioural science theory and technology. Two important elements of Organization Development are. second. practitioners and the client laymen. the element which links Organization Development with the scientific method of inquiry and. (d) To build trust among persons and groups throughout an organization. its underlying theory and assumptions and some of the pitfall and challenges in attempting to improve organizations through behavioural science. 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. the collaborative relationships between the scientists. (b) The interventions are primarily directed towards problems and issues identified by the client group.5 Goals of Organization Development Following are the generally accepted goals of OD: (a) To create an open. with the authority of knowledge and competence.

there are four attributes of effective managers in large organization. less individual competitiveness. it is beneficial to make a comparison between OD and Management Development (MD) as both have some common objectives that betterment of an organization. and (iv) a sense of responsibility.6 OD and Management Development At this stage. (iii) assertiveness. These are: (i) a positive attitude towards authority. and greater display of feelings and emotions. 3. (i) To increase self-control and self-direction for people within the 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.´ Organization development differs from management development. While the latter aims at developing the mangers individually for the accomplishment of better performance in organizational setting. According to him. and techniques adopted in both may overlap to some extent. Difference between Management Development and OD Factors Objectives Management Development Organization Development Increasing manager¶s Changing the nature of the contributions to goal organization. The term µdevelopment¶ refers broadly to the nature and direction of change induced in personnel through the process of training and education. more attention to peer-groups. the former goes one step further and purports to change the entire organizational climate where the mangers work. If OD efforts train people towards anti-authority value. he appears to be biased against OD and the real distinction between OD and MD lies in between these two extremes. MD tries to fit the men to the organization. (ii) competitiveness. according to him. . Before making a comparison between the two. He feels that management development reinforces the above four qualities and helps managers cultivate and develop the will to manage. (j) To improve effectiveness of the organization. Based on this. with their existing objectives and structure. management development has been defined as follows: ³Management development is all those activities and programmes when recognized and controlled. OD tries to fit the organization to the men. Miner has drawn difference between two processes.(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. Burke and Schmidt have made this difference more clear which is presented in the following table. let us define management development as we have seen the definition of OD. However. then would the results be functional for managing organization activity in a competitive world? Thus. 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.

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

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

Who is associated with the ³Learning Organizations´? 5. 3. Top management 2. Define OD. ±±±±±±±±± is a process which includes leadership behaviours and human resource practices. The participative. Explain its salient features. Empowerment 4. State the various roles of OD. OD focuses on culture and processes. There is no µquick fix¶ to organizations¶ problems. 3.10 Terminal Questions 1. OD is the ultimate remedy for organizational improvements and developments. ±±±±±±± is associated with ³Liberation Management´. Distinguish between µorganizational development¶ and µmanagement development¶. Management development aims at developing the managers individually. But OD aims at changing the entire organizational climate where the managers work. 3. Organization development should be led and supported by ±±±±±±±. 3.11 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. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. What are the problems involved in the implementation of OD? 3. _____________is a short-term strategy. collaborative. 4. Explain the various characteristics of OD. 2. Peter Senge . 4. problem-focused µnature of OD¶ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. 5. 2.1. Tom Peters 3.

2 2.3 3.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .5.4 Grid Training 4. MU0002-Unit-04.3 Process Consultation 4. Management development Answers to TQs: 1.Organization Development ± Interventions Structure: 4.1 Introduction Objectives 4.6 Team-building . Refer section 3.Organization Development ± Interventions Unit-04. Refer section 3.5 Leadership Development 4. Refer section 3.7 5.6 4. Refer section 3.2 Survey Feedback 4. Refer section 3.

process consultation. various consultants and practitioners have different opinions about the activities which can be included in interventions. and survey feedback method.10 Summary 4. the classification of OD interventions shows variation. group level. 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. However. Nevertheless. Further. Thus. team-building. Subsequently.8 Change Agents 4. and organizational level. interpersonal level. such a classification of interventions may not put them into mutually exclusive categories as a particular intervention may be applied at more than one level.4. Interventions constitute the action thrust of organization development. survey feedback.1 Introduction OD interventions refer to various activities which a consultant and client organization perform for improving organizational performance through enabling organizational members better manage their behaviour.12 Answers to SAQs and TQs 4. grid training.11 Terminal Questions 4. 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. For example. work group. education and training. management grid. inter-group level.9 Role of Change Agents Self Assessment Questions 4. mediation and negotiation activities. French and Bell have suggested twelve families of OD interventions: diagnostic. and organizational culture. Historically. many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others. inter-group activities.´ There are various OD interventions and they are classified in different ways.7 Inter Group Development 4. techno-structural activities. interventions may be required to change people at all these levels. Therefore. other techniques like process . People¶s behaviour may be relevant to understand at individual level. they make things happen. the classification appears to be more relevant because it may specify the range of change that an organization requires. French and Bell have defined OD intervention as: ³Sets 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. OD efforts were attempted through sensitivity training.

consultation, team- building, and participative goal-setting which has become more popular as management by objectives, have been added. Our further discussion follows this development. Objectives: After studying this unit, you will be able to: · Describe survey feedback. · Explain grid training. · Describe process consultation. · Realize the importance of team-building. · Role of change agents. 4.2 Survey Feedback Besides laboratory training (sensitivity and grid), the other major thrust in the development of OD has come from survey research and feedback of data. Though some type of survey method was prevalent in various organizations earlier, Institute for Social Research (ISR) of University of Michigan, USA developed a comprehensive questionnaire for conducting survey in different aspects of an organization. The basic objectives of survey feedback are as follows: 1. To assist the organization in diagnosing its problems and developing action plan for problemsolving. 2. To assist the group members to improve the relationships through discussion of common problems. Process of Survey Feedback Survey feedback usually proceeds with sequential activities involving data collection, feedback of information, developing action plans based on feedback, and follow up. 1. Data Collection: The first step in survey feedback is data collection usually by a consultant based on a structured questionnaire. The questionnaire may include different aspects of organizational functioning. ISR has prepared a questionnaire which includes questions on leadership ± managerial support, managerial goal emphasis, managerial work facilitation, peer support, peer goal emphasis, peer work facilitation, and peer interaction facilitation, organizational climate-communication with the company, motivation, decision-making, control within the company, co-ordination between departments, and general management, and satisfaction-satisfaction with the company, satisfaction with the supervisor, satisfaction with the job, satisfaction with the pay, and satisfaction with the work group. The questionnaire is administered personally either by the members of consulting firm or by organization¶s personnel.

After the questionnaires are completed, data are classified, tabulated, and analysis is made to arrive at some meaningful conclusions. 2. Feedback of Information: After the data are analyzed, feedback is given to the persons who have participated in the fulfilling up of questionnaire. The feedback may be given either orally or in a written form. In oral system of feedback, it is provided through group discussion or problemsolving sessions conducted by the consultant. Alternatively, feedback may be given in the form of a written summary of findings. Whatever the method of giving feedback is adopted, it should be constructive and suggestive, rather, 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. 3. Follow-up Action: Survey feedback programme is not meaningful unless some follow-up action is taken based on the data collected. One such follow-up action may be to advise the participants to develop their own action plans to overcome the problems revealed through a feedback or as is more commonly the case, follow-up action may be in the form of developing some specific OD interventions particularly process consultation and team-building, by the consultant. Evaluation of Survey Feedback Survey feedback provides a base for many managerial actions which has been confirmed by various research studies. In particular, survey feedback contributes in the following manner: 1. It is cost-effective means of implementing a comprehensive OD programme making it a highly desirable technique. 2. It generates great amount of information efficiently and quickly which can be used in solving problems faced by the organization and its members. 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. However, effectiveness of survey feedback depends on two factors. First, questionnaire used and method adopted for its administration should be reliable and valid. If it is biased, all attempts to diagnose the problems will be abortive and futile. Second, even if valid and reliable information is collected, it is of no use unless follow-up action is taken based on the information. A survey feedback is not a technique in itself for change; it provides base for action for change. 4.3 Process Consultation Process Consultation (P.C) is a technique for intervening in an ongoing system. The basic content of P.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. Edgar Schein, the leading writer and consultant on P.C has defined it as follows:

³The set of activities on the part of the consultant which help the client to perceive, understand, and act upon the process events which occur in the client¶s environment.´ The basic objectives of P.C are as follows: 1. To bring desired change in the various organizational processes like leadership, communication, roles and functions of group members, group decision-making and problemsolving, group norms, and inter-group co-operation and conflicts. 2. To understand how various organizational processes can be linked to objective achievement in the organization. Steps in Process Consultation Schein has suggested following specific steps which the consultant would follow in a P.C programme of OD. 1. Initiate Contact: This is beginning stage of P.C in which the client makes initial contact with the consultant with a view to solve the problems faced by the organization which cannot be solved by existing processes or resources. 2. Define the Relationship: At this stage, client and consultant enter into agreement covering various aspects of consultancy services like fees, and spelling out services, time, etc. At this stage, the client¶s expectations and hoped-for results are also decided. 3. 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. At this stage, the consultant is introduced to the organizational members and basic objectives of the P.C are communicated to them with a view that they co-operate with the consultant. 4. Gather Data and Make a Diagnosis: Information is collected from various sources thorough the use of questionnaires, observations, and interview about the problems, spelled out at the initial stage. This data gathering occurs simultaneously with the entire consultative process. Information collected is processed to diagnose the problems and their underlying causes. 5. Intervene: At this stage, the consultant intervenes in the organizational processes by using different interventions like agenda-setting, feedback, coaching, and/or structural change. 6. Reduce Involvement and Terminate: When the work of P.C is completed, the consultant disengages from the client organization by mutual agreement but leaves the door open for future involvement. Evaluation of Process Consultation: Process consultation is quite in-depth activity of OD in which the consultant plays a major role. Though he is involved only in suggesting the various changes in the processes, he assists the

group. Teamwork Development: The focus in this stage is to develop teamwork by analyzing team culture. P.4 Grid Training Grid training is basically based on grid organization development developed by Blake and Mouton. Managerial grid: It covers various aspects of assessing managerial styles.organizational members to incorporate those changes. To understand the importance and rationale of systematic change. traditions. . and problemsolving are also developed. Its specific objectives are as follows: 1. However. It is a comprehensive and systematic OD programme which aims at individuals. the focus is on inter-group behaviour and relations.C is also not free from criticisms.C programmes. and the organization as a whole. knowledge. In the review of various P. like other OD intervention techniques. The thrust is on moving groups from conflict to co-operation. The skills relating to planning. One basic reason for this phenomenon may be the consultant¶s inability to steer the organization out of troubles. groups. 2. and total organizational levels. inter-group. 3. and processes necessary for effectiveness at the individual. It utilizes a considerable number of instruments. P. enabling individuals and groups to assess their own strengths and weaknesses. objective-setting. significant correlation between the outcomes has not been found. Each group separately analyses the ideal inter-group relations. 1. communication skills. The whole orientation is to develop managerial style through the application of behavioural science knowledge. Inter-group Development: At this phase. However. To evaluate the styles of leadership and techniques of participation to produce desirable results. Process of Grid Training The basic content of grid organization development is managerial grid as discussed. 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. 3. and teamwork. 4. From this point of view. focuses on skills. To study the organization as an interactive system and apply techniques of analysis in diagnosing its problems. 2. Action steps to move towards the ideal are developed and assigned to individuals who may be engaged in building co-operative inter-group relationships. problem-solving. both these problems may be overcome by engaging a suitable consultant and developing willingness among the members for change. The individuals try to learn to become managers by practice. The grid organization development consists of six phases. and alike.C is very effective intervention for organizational improvement.

Evaluation of Grid Training Most of the support of grid training has come from its originators-Blake and Mouton. Though research studies on the application of grid training are not many. During drastic change times. Systematic Critique: In this stage. Developing Ideal Strategic Corporate Model: At this stage. is the ability of leadership to«well. The Role of Leadership In an organization where there is faith in the abilities of formal leaders. The strategy is then implemented. therefore. it appears that this type of educational strategy can help to make significant contributions to organizational effectiveness. lead. it discounts reality. Also during these times of change. competence. We can call these Preparing For the Journey. They have maintained that ³managerial and team effectiveness can be taught to managers with outside assistance. and regular. while at the same time . concerned and committed to their welfare. the focus shifts to the total organization and to develop skills necessary for organizational excellence. and credibility of senior and middle management. complete communication that is timely. The literature on the subject indicates that the nature of the change is secondary to the perceptions that employees have regarding the ability. some of them have not supported the claims made by Blake and Mouton. the various efforts from phase 1 to phase 5 are evaluated and critical analysis is made. 4. In this light. grid training is a non-rigorous method. the various programmes may be redesigned. The action is designed to identify the characteristics of the ideal organization. employees will perceive leadership as supportive. you need to be aware that there are three distinct times zones where leadership is important. Grid training programme is criticized on the basis that it lacks contingency approach and. If you are to manage change effectively.4. The members of the organization are trained for achieving this excellence. Each group may be given assignment to evolve strategy for making ideal organization with the help of the consultant.´ In a later work. Further. employees will look towards the leaders for a number of things. and After Arrival. grid training has some positive contributions for organizational effectiveness. they maintained the same stand. 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. Furthermore. clearly the most important determinant of "getting through the swamp". The analysis will bring out the shortcomings that may be there. 6. in spite of these criticisms. 5. Slogging Through The Swamp.5 Leadership Development When change is imposed (as in downsizing scenarios). employees will expect effective and sensible planning. We will look more carefully at each of these. confident and effective decision-making.

problems in team-work.´ 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. Unfortunately. For example.recognizing that tough decisions need to be made. 4. if haven¶t established a track record of effective leadership. Poor leadership means an absence of hope. during and after change implementation is THE key to getting through the swamp. must labor under the weight of employees who have given up. employees learn that leaders will act in indecipherable ways and in ways that do not seem to be in anyone¶s best interests. it may be too late. teambuilding is the most important. have no faith in the system or in the ability of leaders to turn the organization around. French and Bell have opined that ³probably 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.1: Life Cycle of a Team Though these are not followed rigidly. employees expect nothing positive. As against these. and adjourning as shown below: Fig. storming. let us consider the life cycle of a team. and features of effective team so that team-building exercises focus more sharply on developing effective team. they often pass through several stages as they learn to work together as a team. but more importantly. The best way to summarize is that there is a climate of trust between leader and the rest of the team. In a climate of distrust.6 Team-building Various OD interventions discussed so far have their specific implications for OD and. The existence of this trust. In organizations characterized by poor leadership. they do represent a broad pattern that may be observed and predicted in many settings across team¶s time together. Before going through how team-building exercise can be undertaken to develop effective teams. 4. performing. therefore. These stages are: forming. widely accepted. and that makes coping with drastic change much easier. Leadership before. are closely associated with a very few advocates and practitioners. how synergy is generated through team-work. if allowed to go on for too long. Life Cycle of a Team When a number of individuals begin to work at interdependent jobs. brings hope for better times in the future. norming. by the time you have to deal with difficult changes. which. results in an organization becoming completely nonfunctioning. and applied OD intervention for organizational improvement. The organization must deal with the practical impact of unpleasant change. These stages are the result of a variety of questions and issues that team members face such as ³who will be members of the team?´ ³Who will perform what functions?´ ³Who will contribute what?´ ³What rules will be .

group norms emerge to guide individual behaviour which form the basis for co-operative feelings and behaviour among members. because of individual differences. 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. Adjourning: Adjourning is the end phase of cycle of a team. interaction among team members is often cautious especially when they are new to one another. Functional roles are performed and exchanged as needed. The adjournment phase takes place in the case of those teams which are created for some special purposes like task force. committee. Norming: After storming stage.´ . 4. These typical stages of life cycle of a team are described below: 1. team members get introduced to each other if they have not interacted earlier. jockeying for relative control. After the adjournment of the team. they learn to handle complex problems that come before the team. Forming: At the first stage of the life cycle. concept of stages is significant in the context of the nature of problem which team members are likely to face in team-work.followed?´ ³How can conflicts among members be resolved?´ and so on. even the most successful teams as they have completed their mission. members start interaction among themselves in the form of competing for status. etc. Storming: After the forming stage which is mostly related to perceiving and assessing each other. Other types of team like a department in an organization run on the basis of some permanency though there may be changes in team members. team members start settling. However. and tasks are accompanied efficiently. each team has to be adjourned. Sooner or later. 3. At this stage. intense social relationship among members comes to an end. 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. 5. start to accept others. and arguing for appropriate strategies to be adopted for achieving team¶s goals. 2. At this stage. They share personal information. This effect can be described as 2+2=5 effect. and begin to turn their attention to the group tasks. The concept of synergy is quite popular in strategic management and it is defined as follows: ³Synergy is the process of putting two or more elements together to achieve a sum total greater than the sum total of individual elements separately. different members may experience varying degree of tension and anxiety out of this interaction pattern. Performing: When team members interact among themselves on the basis of norms that have emerged in the team. The team begins to move in a co-operative fashion and a tentative balance among competing forces too is struck.

This phenomenon may happen in teams in work organizations too. and so on. the individual average dropped down still lower-68. In such an assignment. When the group is not cohesive with high output norms. 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. To the extent. fail to perform their assigned tasks. For example. team-work does not necessarily spurt group efforts.6 pound of pressure while tugging on the rope. 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. The possibility of occurring of social loafing in a team-work increases because of the following reasons: 1. The phenomenon of social loafing can be minimized by constituting effective team for group performance. A simple phenomenon of social loafing may be observed in a group assignment to students during their study. They averaged 138. They rely on the fact the more reliable members will complete the project without their help. From this statement. it appears that there are many . it was found that individuals¶ total efforts were much higher than the group efforts. synergistic effect is not automatic but depends on the complementarity of different elements that are put together and the way they interact among themselves. other factors remaining the same. and still expect to share the credit and obtain the same marks from the professor since he will be concerned with determining who worked and who did not. the complementarity among members is achieved. other factors remaining the same. goals. a team is created to undertake a task which requires a variety of skills and single individual cannot perform that task alone. Putting the concept of synergy in teamwork means members of the team are complementary to each other and they contribute positively to one another. Dropping of average output in group efforts indicates that some members of the group were not contributing as much as they did individually. the team would be effective. Individuals were asked to pull alone as hard as possible on a rope attached to a strain gauge. in one experiment. When the division of work cannot be accomplished properly and individual efforts are hard to determine. students find that one or two students do not put their weight for the completion of the project. 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. individual members do not contribute to the fullest extent. 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. that is. In the above paragraph.Thus. we have mentioned that team effectiveness depends on the complementarity of team members. group of eight.2 pounds. and attitudes. In fact. how a particular element affects another and is affected by it. When the same individuals pulled on the rope of groups of three. 2. group efforts tend to slacken.

2. These factors are skills and role clarity. team members may not show high degree of enthusiasm and they will use only a part of their skills in performing the jobs. If the organizational climate is not in tune with high achievement. Selecting members for their complementary skills and potentials. An individual works better if he is able to link how his goal attainment leads to the attainment of a higher-level goal. . Super-ordinate Goals: Super-ordinate goals are those which are above the goals of a single team or a single individual. 3. or propose discipline for team members. make recommendations regarding a new supervisor. Even if one member lacks behind. then. complementary skills. they will put their maximum. two things are required from its members. supportive environment. goals. If team members perceive that reward to contingent on team performance. Innovative non-financial team rewards for responsible behaviour may include the authority to select new members of the group. and stimulate more cohesive team efforts. Team Rewards: Team performance depends on how reward is linked to team performance and how members perceive this linkage.factors in an effective team. he may tend to affect others because of chain reaction just like a rotten apple injures its companions. While skills are relevant for job performance. The positive aspect of all these factors leads to team effectiveness and team members share common values regarding product quality. 2. super-ordinate goals and team rewards. unify efforts. and share the responsibility for completing a project on schedule. team members may tend to contribute positively to the teamwork. They define four characteristics of real teams: small size. management consultants. Real teams can be created and sustained by: 1. Let us see how these factors make a team effective. managers at higher levels particularly at the top level should set organizational climate and culture which enthuse team members to put their best. Rewards of both types. Thus. skills which are complementary to the team requirement and understanding of one¶s own role as well as roles of other members. Establishing a sense of urgency right from the first meeting. Supportive Environment: A team loaded with skilled members cannot perform well if the organizational climate is not supportive for that. Further. common purpose. 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. 4. These super-ordinate goals. understanding of roles helps members to meet the requirement of one another thereby solving the problems which the team faces. customer satisfaction. 3. Developing clear rules of conduct and challenging performance goals. Therefore. Skills and Role Clarity: For an effective team. organizations need to achieve a careful balance between encouraging and rewarding individual initiative and growth and stimulating full contributions to team success. serve to focus attention. and working approach: and willingness to be held mutually accountable. 1. Katzenbatch and Smith.financial and nonfinancial-should be taken into consideration.

3. 2. rather. personality and attitudes. recognition. 4. Much of the problems may be solved through effective communication and training sessions. Problem-sensing: There are a number of ways in which problems of a team can be obtained. Examining Differences: The perception of people on an issue differs because of their differing backgrounds. Often the team itself defines which aspects of team-building it wishes to work on. Providing substantial time together in which new information is constantly shared. the emphasis should be on consensus. Team-building Process: Team-building attempts to improve effectiveness of the team by having team members to concentrate on: 1. 4. In problem identification. Setting goals and priorities for the team. the team-building exercise proceeds in a particular way as shown in figure. group problems to even personal problem. Analyzing how team¶s goals and priorities are linked to those of the organization. Analyzing how the work is performed. This problem can better be identified in terms of what is hindering group effectiveness. . generally most of the members come forward with their arguments as to what the real problems are.4. The view may be quite different ranging from the organizational problem. Fig. The consensus-seeking part of the process necessitates that each person becomes thoroughly aware and understand clearly the basic concepts of team-development. and 5. they are repetitive and cyclical as indicated by arrows in the figure. Providing positive feedback. Analyzing how the team is working. 1. Analyzing the relationships among the members who are performing the job. 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. such as. and 5. At this stage. and rewards. The role of communication is important in this context because it will help in clarifying the actual problems to the members.2: Process of Team-building Various steps of team-building process are not one-shot action. For achieving these. their value systems. 2.

information. (iii) Negative: cooling. about the issue. If this process is adopted several times. talking together with speaker. clarifying and setting differences in perception concerning responsibility and authority in the team. Such feedback generally provides members to evaluate the values but at the same time. the way people talk about the issue. At the time of discussion of feedback. Follow-up Action: This is the final stage in team-building. 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. undermining morale. seeking relevant information. This suggests that even people are not fully aware of themselves. (iv) Innovative: bringing in new relevant ideas. people themselves take assignments to increase specific constructive behaviours and decrease specific negative behaviours. The feedback should be given to the members about their feelings. ensuring. 4. who was trying to resolve the differences. criticizing person. At this stage. 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. the stying with the topic or going off on tangents. belittling. The discussion should continue until all members of the team have commented. . etc. feelings. 5. cynicism. (ii) Bringing in: harmonizing. This is quite helpful in developing teamwork. The concept of Johari Window may also be applied. also provides opportunity to understand themselves. Followup action also helps in overcoming the drawback involved at the initial stages of team-building. who was talking more or who was talking less. Often.3. there is a strong possibility that members may learn constructive behaviours and leave negative behaviours. and who will be responsible for team projects in a group that has not developed a satisfactory division of responsibility. etc. Following are the examples of constructive and negative behaviours: Constructive Behaviour: (i) Building: developing and expanding the ideas of others. (ii) Attacking: deriding. encouraging others to participate. with complex division of responsibility and authority among members. (iii) Clarifying: resting. It involves deciding who will take care of each area of the team¶s responsibilities. understanding. members report about the painful feelings that they have at the time of evaluation of their feelings. Negative Behaviour (i) Over talk: interrupting. the total team is convened to review what has been learned and to identify what the next step should be.

One such suggestion is to use a task hierarchy to reinforce the team as it progresses up a behaviour skill hierarchy (for example. Many research studies have also confirmed the positive contributions of team-building on the organization¶s outcomes. In general.. this has been a subject to which change efforts have been directed. However. When this exercise is undertaken at the initial stage. though. In spite of these problems. However. one of the more . management should take such actions at regular intervals so that members feel reinforced and sustain their positive behaviour. Although there are several approaches for improving intergroup relations. to encourage and sustain such feelings. structure. Such actions will go a long way in shaping the organizational climate quite conducive to members for their efficient working. It seeks to change to attitudes. stereotypes. It focuses only on work groups and other major organizational variables such as technology. It improves the organization¶s problem-solving and decision-making ability. It helps in developing effective interpersonal relationships by stimulating the group members for that.These attempts bring co-operative and supportive feelings among people involved in the team functioning. monitoring. However. 2. it is not that effective in isolation. and feedback skills). Team-building becomes a complicated exercise when there is frequent change in team members. and perceptions that groups have of each other. communicating. team-building has a positive outlook. 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. team-building contributes to the organizational performance in the following manner: 1. 4. listening. 3. team-building has been termed as one-sided effort and it suffers from the following limitations: 1. Evaluation of Team-building As mentioned earlier. there have been calls for combining team-building with organization behaviour modification approaches. are not given adequate attention. it contributes positively towards the feelings of the people. etc.7 Inter-group Development A major area of concern is OD is the dysfunctional conflict that exists between groups. team-building as an OD intervention has attracted maximum attention. in different degrees. 2. It helps developing communication within the group and inter-group and overcoming many psychological barriers that block communication flow. Therefore. As a result.

Differences are clearly articulate.9 Role of Change Agents The change agent may play different roles according to the need of organization development . internal management often will hire the services or outside consultants to provide advice and assistance. can now be created for further diagnosis and to begin to formulate possible alternative actions that will improve relations.8 Change Agents Change agents: Can be managers or nonmanagers.Popular methods emphasize problem solving. the groups can move to the integration phase ± working to develop solutions that will improve relations. after which similarities and differences are discussed. In this method. with members from each of the conflicting groups. enabling the client to let off steam: as the ignition to spark action. as the shock absorber when the going is rough. culture. and the groups look for the causes of the disparities. the other group. internal staff specialists or managers when acting as change agents. as the accelerator to build up momentum. 4. and how it believes the other group perceivers it. as the radiator absorbing some of the heat of the controversy. are disadvantaged because they usually have an inadequate understanding of the organization¶s history. or outside consultants. For major change efforts. Outside consultants. employees of the organization. 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. operating procedures. The groups then share their lists. Once the causes of the difficulty have been identified. may be more thoughtful (and possibly cautious) because they to live with the consequences of their actions. The consultant may fulfill a variety of functions. In contrast.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. as the break for too quick action. but one thing he/she is not the driver´. each group meets independently to develop lists of its perception of itself. 4. According to Curtis Mial: ³The Consultant may serve as the exhaust value. Because they are from the outside these individuals an offer can offer an objective perspective often unavailable to insiders. however. and personnel. or as fog lamp when the future is hazy. Trainer . Subgroups.

A change agent needs to be a trainer and educator. Self Assessment Questions 1.10 Summary OD intervention strategies are various activities which a consultant and client organization performs for improving organizational performance. knowledge and processes necessary for effectiveness at the individual. generation of new behavioral science knowledge. ________is antithesis of synergy in team-work which suggests that people working together on a common task may actually decrease their individual efforts. Training is used both in µcontent orientation¶ and process orientation¶.11 Terminal Questions 1. Survey feedback usually proceeds with sequential activities involving data collection. cases and experiential learning etc. 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. feedback of information. Training is required for enhancing knowledge. group discussions. In process consultation. Grid Training was developed by ±±±±±±±±±±±± 3. Data collection. developing action plans based on feedback and follow-up. role-plays and instruments. The first step in survey feedback is ______ usually by a consultant based on a structured questionnaire. It focuses on skills. changing (intervening) and refreezing. skills and change in behavior. evolving best strategies for change by assessing alternatives and the important stages in a change project where the change agent has to be a Researcher. 4. presentations. inter-group and total organization levels. 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. Sensitivity training focuses on small group ranging from ten to twelve. He has to educate people on the need and importance o change using a variety of methodologies ± lectures. Useful hypothesis are to be formulated and tested. What is Grid Training? How does it help in improving individual performance in an organization? . films. Grid training focuses on individuals and groups to assess their own strengths and weaknesses. The trainer role is most widely and intensively used at all stages of a change project: unfreezing. 2. Team-building is most important. group. team-work does not necessarily spurt group efforts 4. attitudes and beliefs. widely accepted and applied OD intervention for organizational improvement. diagnosis.

Refer section 4. Refer section 4.12 Answers to SAQs and TQs SAQs: 1. 3. and Beliefs in Organization Development Structure: 5.4 2.2 3. MU0002-Unit-05-Values.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Social loafing Answers to TQs: 1. Data collection 2. Blake and Mouton. Assumptions. What is survey feedback as an intervention of OD? How does it provide base for other OD interventions? 3. Refer section 4. 4.1 Introduction . Assumptions.2. Explain Change agents and discuss the role of change agents in detail. What is team-building? What are the stages of life cycle of a team? 4. and Beliefs in Organization Development Unit-05-Values. Refer section 4.6 4.

assumptions.7 Terminal Questions 5.3 Implications for Designing and Running Organizations 5. · List the chronology of events of values. beliefs and assumptions.5 Implications of OD Values and Assumptions 5.2 Definitions . and beliefs constitutes an integral part of organization development.6 Summary Self Assessment Questions 5.4 Early Statements of OD Values and Assumptions 5. beliefs and assumptions. and they continue to evolve as the field itself evolves.2 Implications for Dealing with Groups 5. shaping the goals and methods of the field and distinguishing OD from other improvement strategies. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers. · State the implications of OD values and assumptions.2 Definitions 5.1 Introduction A set of values.5. Most of these beliefs were formulated early in the development of the field.8 Answers to SAQs and TQs 5. 5.5. · Give the statement of OD values and assumptions.Objectives 5. you will be able to: · Explain the meaning of values.1 Implications for Dealing with Individuals 5. Objectives: After studying this unit.3 Chronology of Events in Management and Organization Thought 5.5.

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

The Functions of the Executive by Chester 1. Some early experiments were conducted in the late 1930s. The research demonstrated the primacy of social factors on productivity and morale. Group norms had more powerful effects on productivity than economic incentives. the work environment. His acceptance theory of authority proposed that authority derives from the willingness of subordinates to comply with directions rather than from position power. Group Dynamics (1940) The scientific study of groups using experimental research methodswas launched by Kurt Lewin and his students. Research by Lewin.y The great German sociologist Max Weber (1922) introduced the concept of bureaucracy as the best. their feelings and attitudes about the work. In a sense. a management theorist and astute observer of labour-management relations. wrote an article on The Giving of Orders advocating participative leadership and joint problem-solving by labour and management. much of the research. Mary Parker Follett (1926). but also contained serious flaws that led to unintended consequences. People were not cogs. most efficient way to organize people. apathy. The human relations movement advocated participative management. organizations were not machines. The Famous Hawthorne Studies (1927 to 1932) were conducted at the Hawthorne plant of Western Electric Company. Reports on these studies by Mayo in 1933 and 1945. and White demonstrated that democratic leadership was superior to authoritarian leadership and laissez-faire leadership in affecting group climate and group performance. y y y y y y y . Barnard viewed organizations as social systems that must be effective (achieve goals) and efficient (satisfy the needs of employees). 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. Barnard (1938) presented insights from his experiences as President of the New Jersey Bell Telephone Company. Democratic leadership seemed to bring out the best in the groups. A strong hierarchy of authority. and the supervisor determined their performance. Lippitt (1939). authoritarian leadership caused dependency. and rigid procedures would create a well-oiled human machine called the organization. greater attention to workers social needs. repetitive jobs left them feeling alienated and dispirited. extensive division of labor. training in interpersonal skills for supervisors. These approaches possessed many desirable features. and a general humanizing of the workplace. and by Homans in 1950 profoundly and irreversibly affected people s beliefs about organizational behaviour. The Hawthorne Studies (1940s to 1960) spawned the human relations movement that was in full flower from the 1930s to the 1960s. People came to work as whole people. by Roethlisberger and Dickson in 1939. aggressiveness and poor performance. impersonal rules. Their simple. and practice since the late 1920s have focused on the shortcomings of these two paradigms and how to overcome the limitations. theory. Much of her career was devoted to finding ways to reduce adversarial relationships between workers and 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. French s (1948) article. and introduced practicing managers to the concepts of need hierarchy and self-actualization. Eric Trist and Ken Bamforth of the Tavistock Clinic (1951) published the results of their work in British coal mines. healthy adults. higherlevel needs become dominant. which holds that individuals have within themselves the capacity to assume responsibility for their behaviour and mental health when provided with a supportive. lack ambition. P. dislike responsibility. Carl Rogers Client-Centered Therapy (1951) demonstrated the efficacy of non-directive psychotherapy. The theory postulated that when lower-level needs are satisfied. Ken Benne and Paul Sheats (1948). a direct precursor of OD. a mechanistic organization y y y y y y y y . 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. Those who subscribe to Theory Y assume that people have the potential to develop. increase self-understanding. 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. and to pursue organizational goals if given the chance and the social environment to do so. Douglas McGregor wrote The Human Side of Enterprise (1960) in which he described his famous Theory X and Theory Y assumptions. 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. Humanistic and democratic values suffused the movement. The task of management is to change organizational structures.y These years witnessed the beginnings of the laboratory training movement (1946 and 1947). This article introduced the concept of organizations as socio-technical systems. Laboratory training taught people how to improve interpersonal relations. and need to be led. and human resource practices to allow individual potential to be released. Rogers focus on effective interpersonal communications was applicable to superior-subordinate relations. In addition to presenting Theory X and Y. Overcoming Resistance to Change. pioneers in laboratory training. are self-centered. Motivation and Personality by Abraham Maslow (1954) presented a new view of human motivation. resist change. this book popularized Maslow s motivation theory. Those who subscribe to Theory X assume that people are lazy. indifferent to the organization s needs. caring social climate. reported that resistance to change could be minimized by communicating the need for change and allowing the people affected by the change to participate in planning it. In an environment of slow change. to assume responsibility. and understand group dynamics. Burns and Stalker (1961) described two very different forms of organization structuremechanistic and organic. Lester Coch and John R. management practices.

and shares decision-making with the work group. groups. . in an environment of high change. The Bennis and Beckhard quotations come from their books in the Addison-Wesley Six-Pack. Writing in 1969. y 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. an organic organization form is preferred. To summarize the intellectual climate of this period. organization development practitioners formulated a set of values and assumptions regarding people. · Development of better methods of conflict resolution. and negative consequences. one-on-one leadership style. The Social Psychology of Organizations by Daniel Katz and Robert L. and values of the field. The Addison-Wesley Publishing Company OD Six-Pack. open communications. dysfunctions. We will examine three early statements regarding OD values that had a significant impact on the field. · Development of increased understanding between and within working groups in order to reduce tensions." that is. Values have always been an integral part of OD. more rational and open methods of conflict resolution are sought. Rather than the usual bureaucratic methods which rely mainly on suppression. He listed these normative goals as follows: · Improvement in interpersonal competence. This leadership style was contrasted with an authoritarian. and unprincipled power. summarized the state of organization development a decade or so after its inception. Warren Bennis proposed that OD practitioners (change agents) share a set of normative goals based on their humanistic/ democratic philosophy. as we have said. practice. and greater individual autonomy. bureaucracy. humanistic. compromise. (1969) a set of six little books on OD by prominent practitioners. Kahn (1966) presented the first comprehensive exposition of organizations as open systems. Tannenbaum and Davis presented their ideas in an article appearing in Industrial Management Review. the capacity for functional groups to work more competently. and observations utilized by OD practitioners. · Development of more effective "team management. and democratic. y y This chronology captures most of the significant influences from research. goal-oriented. These six books presented the theory. the initial enthusiasm for scientific management. and authoritarian leadership gave way to increasing doubts about these organizational practices as theory and research pointed up their limitations. and organizations that is. · A shift in values so that human factors and feelings come to be considered legitimate. Out of this zeitgeist. optimistic. Organic structures encourage decentralized decision making and authority.structure may be appropriate. theory.

mechanical systems rely on "authority-obedience relationships" while organic systems rely on "mutual confidence and trust.· Development of organic rather than mechanical systems.´ For example. Organizations. sub-units of organizations. One goal of a healthy organization is to develop generally open communication. rather than in a particular role or level of hierarchy. M. 6. This is a strong reaction against the idea of organizations as mechanisms which managers "work on. more choices become available and hence better decisions are made. An always relevant change goal is the reduction of inappropriate competition between parts of the organization and the development of a more collaborative condition. director of organization development. not individuals. The earlier work by Tom Burns and G." 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. and individuals continuously manage their affairs against goals. 4. Through focused attention and through the collection and feedback of relevant data to relevant people. 3. They asserted that an important shift in values was occurring and that this shift signaled a more appropriate and accurate view of people in organizations. and confidence between and across levels. presented their view of OD values in a 1969 article. Bennis clarified some of the salient differences between mechanical systems and organic systems. Therefore. Another major player in the field was Richard Beckhard. Decision-making in a healthy organization is located where the information sources are. 5. mutual trust. Robert Tannenbaum. . Controls are interim measurements. 1. Here is his list. Stalker used the term ³mechanistic´ in contrast to ³mechanical." People affected by a change must be allowed active participation and a sense of ownership in the planning and conduct of the change." Mechanical systems encourage "centralized decision-making" while organic systems encourage "wide sharing of responsibility and control. In his 1969 book he described "several assumptions about the nature and functioning of organizations" held by OD practitioners. not the basis of managerial strategy. the basic units of change are groups. a professor and Sheldon Davis. They listed these ³values in transition´ as follows: · Away from a view of people as essentially bad toward a view of people as basically good. 2. The basic building blocks of an organization are groups (teams)." Mechanical systems insist on "strict division of labour and hierarchical supervision" while organic systems foster "multi-group membership and responsibility. "People support what they help create." like pushing buttons.

authentic interpersonal relations. open communication. 5. · Away from resisting and fearing individual differences toward accepting and utilizing them. and arbitrary management practices as well as the dysfunctions of bureaucracies. · Away from avoiding facing others with relevant data toward making appropriate confrontation. These values and assumptions may not seem profound today. and so forth were seldom espoused and rarely implemented in the vast majority of organizations at that time. Beliefs such as trust and respect for the individual.· Away from avoidance of negative evaluation of individuals toward confirming them as human beings.5 Implications of OD Values and Assumptions . · Away from maskmanship and game-playing toward authentic behaviour. · Away from a view of individuals as fixed. appropriate uses of power. · Away from walling off the expression of feelings toward making possible both appropriate expression and effective use. collaboration and co-operation. · Away from distrusting people toward trusting them. the legitimacy of feelings. · Away from utilizing an individual primarily with reference to his or her job description toward viewing an individual as a whole person. · Away from avoidance of risk-taking toward willingness to risk. The democratic values prompted a critique of authoritarian. · Away from use of status for maintaining power and personal prestige toward use of status for organizationally relevant purposes. decentralized decision making. autocratic. 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. but in the 1950s and 1960s they represented a radical departure from accepted beliefs and assumptions. · Away from a view of process work as being unproductive effort toward seeing it as essential to effective task accomplishment. toward seeing them as being in process. The humanistic values prompted a search for better ways to run organizations and develop the people in them. · Away from a primary emphasis on competition toward a much greater emphasis on collaboration. participation and contribution by all organization members.

First. Most people want to develop their potential. not individuals. such as a work group. Let teams flourish because they are often the best way to get work done and. Another assumption is that the formal leader cannot perform all the leadership and maintenance functions required for a group to optimize its effectiveness. and usually with more than one group. leaders should invest in groups: Invest the time required for group development. and co-operation within the group. conflict management. 5. set high standards. listen.1 Implications for Dealing with Individuals Two basic assumptions about individuals in organizations pervade organization development. are the best way to satisfy social and emotional needs at work. encourage risk-taking. permit failure. The people doing the work are generally experts on how to do it and how to do it better. and job satisfaction. most people are capable of making greater contributions to a group¶s effectiveness and development. groups. give responsibility. the family. one of the most psychologically relevant reference groups for most people is the work group.5. What occurs in the work group. It is especially important that leaders adopt a team leadership style. Third. at both the formal and informal levels. One implication is that group members should receive training in group effectiveness skills such as group problem-solving and decision-making. We answer the question: What are some of the implications of OD assumptions and values for dealing with individuals.Let us examine specific assumptions and their implications for organization leaders and members. in addition. Implications of these assumptions are several. Second. give autonomy. This skill is a trainable one. Dealing appropriately with feelings and attitudes increases the level of interpersonal trust. group members should assist the leader with the multiple roles required for group effectiveness. not a one-on-one leadership style. To do this. challenge. A tremendous amount of constructive energy can be tapped if organizations realize and act on these assumptions. group members should be encouraged to learn to deal effectively with positive and negative feelings. invest training time and money to increase group members¶ skills. most people wish to be accepted and to interact co-operatively with at least one small reference group. including peers and boss. The first assumption is that most individuals have drives toward personal growth and development if provided an environment that is both supportive and challenging. The implications of these two assumptions are straightforward: Ask. and reward success. personal growth. support. and are capable of making. . facilitation. a church or club group. a greater contribution to attaining organization goals than most organizational environments permit.5. and interpersonal communication.2 Implications for Dealing with Groups Several assumptions relate to the importance of work teams and the collaborative management of team culture. The second assumption is that most people desire to make. Also. And because suppressed feelings and attitudes adversely affect problem-solving. leaders need to give important work to teams. invest energy and intelligence in creating a positive climate. support. remove obstacles and barriers. and organizations? 5. and so on. greatly influences feelings of satisfaction and competence. Hence.

the assumption is that many attitudinal and motivational problems in organizations require interactive and transactional solutions. Evidence for this assumption comes from numerous examples where ³putting people first´ paid off handsomely in profits and performance. quality of output. Concluding Comment: . 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. Therefore. A key assumption in organization development is that the needs and aspirations of human beings are the reasons for organized effort in society. and organizational changes taking place assure that tomorrow will bring new definitions of what is "true" and new beliefs about what is "good. Creating co-operative rather than competitive organizational dynamics is a primary task of the organization¶s leaders. it is possible to create organizations that on the one hand are humane. The belief that people can grow and develop in terms of personal and organizational competency tends to produce that result. an optimistic. Finally. societal. 5. The implication is that people are an organization¶s most important resource. Such an orientation creates a self-fulfilling prophecy.Finally. and on the other hand are high performing in terms of productivity. they change over time. and so on-are obsolete. and ways to optimize human potential.5. Frequently the challenge is broader.3 Implications for Designing and Running Organizations Clearly. are dysfunctional over the long run and highlight the need for a ³win win´ attitude. formalized cross-functional communication. and profitability. The rapid technological. adherence to the chain of command. and empowering. they are the source of productivity and profits and should be treated with care. a growing awareness that ³win-lose´ organizational situations." as behavioural scientists and managers continue to develop better understanding of authority structures. experimenting with new organization structures and new forms of authority is imperative. traditional hierarchical forms of organization-fairly steep pyramid. developmental set of assumptions about people is likely to reap rewards beneficial to both the organization and its members. Still. D. The belief that people are important tends to result in their being important. values are never static. They cannot meet the demands of the marketplace. By implication. 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. The question becomes not how A can get B to perform better. including how persons C. Such problems have the greatest chance of constructive solution if all parties in the system alter their mutual relationships. in which one side wins and the other side loses. By implication. developmental. grouping by specialized function. emphasis on topdown directives. and E can support these changes. organizing structures. In addition. 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 concept of ±±±±±±±±±± was introduced by MaxWeber. This discussion was intended to articulate an appreciation of OD values and explain where they came from. Self Assessment Questions 1. These OD values were considered revolutionary when they emerged in the 1950s. State the assumptions of Theory X and Theory Y.The field of organization development rests on a foundation of values and assumptions about people and organizations. beliefs and assumptions are cognitive facts.7 Terminal Questions 1. Chronology of events in management and OD tremendously influenced OD practitioners. Values. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. 5. but are widely accepted today. optimistic and democratic. 5. OD values tend to be humanistic.W. assumptions and beliefs help to define what OD is and guide its implementation. Values are also beliefs. The outcome of ±±±±±±±± was that people were not cogs and organizations were not machines. 2. 3.8 Answers to SAQs and TQs SAQs: 1. beliefs and assumptions.6 Summary The field of OD rests on a foundation of values and assumptions about people and organizations. __________ is associated with scientific management. Define concepts. 3. and assumptions are all ±±±±±±±±±± facts. 4. Values. Write a note about F. beliefs. 2. Taylor¶s principles of scientific management. What was the outcome of Hawthorne Experiments? 4. 5. 5. A belief is a proposition about how the world works that the individual accepts as true. values. Cognitive . These beliefs help to define what OD is and guide its implementation. _______________ gave theory X and theory Y.

Hawthorne experiments 5. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6. Douglas McGregor Answers to TQs: 1.1 Kurt Lewin and Friends 6.2.2 2. F.2. W.3 Copyright © 2009 SMU Powered by Sikkim Manipal University .2.3 5.3 4. Refer section 5.2 Models and Theories of Planned Change 6.1 Introduction Objectives 6. Refer section 5. Refer section 5. Bureaucracy 4. Refer section 5. Taylor 3.3 3.2 Beyond the Quick Fix . Refer section 5.

In this discussion.8 Applied Behavioural Science 6.4 Participation and Empowerment 6.1 The Nature of Systems 6. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning.2.12 Answers to SAQs and TQs 6.2 Congruence among System Elements 6.3 Systems Theory 6. you will be able to: .1 Introduction This unit describes the foundations of organization development theory and practice. art and science which form the knowledge base upon which OD is constructed.3 The Burke-Litwin Model of Organizational Change 6.11 Terminal Questions 6.5 Teams and Teamwork 6.10 Summary 6. Objectives: After studying this unit.2.3.3 Socio-technical Theory and Open Systems Planning 6.6 Parallel Learning Structures 6.7 A Normative ± Re-educative Strategy of Changing 6. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs.3.4 Porras and Robertson Model of Organizational Change 6.3.6.4 Open Systems Thinking 6.9 Action Research Self Assessment Questions 6.3.

· Explain normative-re-educative strategy of changing The knowledge base of OD is extensive and is constantly growing. describe those features as variables. · Explain the terms µparticipation¶ and µempowerment¶. We will examine the following concepts: · 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. but pretty good for identifying the important variables involved. That is. and specify the relationships among the variables. Here we describe what we believe are the most important underpinnings for the field. Models and theories depict. The development of models of planned change facilitated the development of OD. · Explain systems theory.2 Models and Theories of Planned Change Organization development is planned change in an organizational context. Here we provide a framework for thinking about planned change by exploring several models from the literature. in words or pictures. The first idea states that what is occurring at any point in time is a resultant in a field of opposing forces. Several recent theories show great promise for increasing our understanding of what happens and how it happens in planned change. the important features of some phenomenon.2. · Realize the importance of teams and teamwork.1 Kurt Lewin and Friends Kurt Lewin introduced two ideas about change that have been influential since the 1940s. the status quo-whatever is happening right now-is the result of forces pushing in . · Describe the parallel learning structures.· Explain various models and theories of planned change. 6. Planned change theories are rudimentary as far as explaining relationships among variables.

with some forces pushing toward higher levels of production and some forces pushing toward lower levels of production. feel things. Change entails moving from one equilibrium point to another. 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. Scanning the environment for new relevant information . change his behaviour from being a smoker to being a non-smoker. Edgar Schein took this excellent idea and improved it by specifying the psychological mechanisms involved in each stage. we can think of the level of morale in that plant as a resultant equilibrium point. the non-smoking behaviour must become permanent. Lewin¶s second idea was a model of the change process itself. For example. Creation of guilt or anxiety c. and react to things differently based on a new point of view obtained through a. Refreezing the behaviour at the new level. some forces pushing toward higher morale and some pushing toward lower morale. Take the example of a man who smokes cigarettes and wants to quit. we can think of the production level of a manufacturing plant as a resultant equilibrium point in a field of forces. etc.opposing directions. b. The three-stage model says he must first unfreeze the old behaviour of smoking. Provision of psychological safety Stage 2: Changing through Cognitive Restructuring: Helping the client to see things. he must move. He suggested that change is a three-stage process: Unfreezing the old behaviour (or situation). Likewise. Next. Identifying with a new role model. it generally hovers around some equilibrium point that is the resultant in a field of forces. Disconfirmation or lack of confirmation b. that is. Refreezing the desired behaviour requires establishing a new field of forces to support the new behaviour. Lewin¶s three-stage model is a powerful tool for understanding change situations. The production level tends to remain fairly constant because the field of forces remains fairly constant. moving to new level of behaviour. Finally. With a technique called the force-field analysis. Although morale may get a little better or a little worse on occasion. that is. believe that cigarette smoking is bad for him and that he should stop smoking. A Three-Stage Model of the Change Process: Stage 1: Unfreezing: Creating motivation and readiness to change through a. This concept is useful for thinking about the dynamics of change situations. mentor.non-smoking becomes the new equilibrium point. judge things.

refreezing. But unless the person feels comfortable with dropping the old behaviours and acquiring new ones. In this phase a client system in need of help and a change agent from outside the system establish a working relationship. terminating the client-consultant relationship. 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. that is. The primary task in stage 3. Phase 5: Transforming intentions into actual change efforts. Phase 7: Achieving a terminal relationship. and fit with the individual¶s social surroundings. Phases 3. Phase 2: Establishing a change relationship. disconfirmation creates pain and discomfort. for example. Significant relationships. which cause guilt and anxiety. . unfreezing. In stage 2. This phase corresponds to Lewin¶s refreezing phase. Phase 4: Examining alternative routes and goals. Their seven stages are as follows: Phase 1: Developing a need for change. Jeanne Watson. Phase 3: Clarifying or diagnosing the client system¶s problem. This phase corresponds to Lewin¶s unfreezing phase. moving. Phase 6: Generalizing and stabilizing change. which motivate the person to change. The person acquires information and evidence showing that the change is desirable and possible. the person undergoes cognitive restructuring. is to integrate the new behaviours into the person¶s personality. That is. and attitudes. This motivating evidence is gained by. the person must develop a sense of psychological safety in order to replace the old behaviours with new behaviours. stabilizing the changes requires testing to see if they fit-fit with the individual. and 5 correspond ro Lewin¶s moving phase. and Bruce Westley. The total personality and self-concept. change will not occur. They expanded the three-stage model into a seven-stage model representing the consulting process. 4. In stage 1. establishing goals and intentions of action. That is.Stage 3: Refreezing: Helping the client to integrate the new point of view into a. b.

These "road maps" are useful for thinking about change.2. Similar models have been developed by Kolb and Frohman and by Burke. critique practices and procedures. 3) The team-building track. This model has five sequential stages: 1) Initiating the program. 2) The management skills track. Kilmann¶s five tracks are: 1) The culture track. 2) Diagnosing the problems. problem-solving sessions." that. and 5) The reward system track.This seven-stage model lays out the logical steps involved in OD consulting. Diagnosing the problems requires a thorough analysis of the problems and opportunities facing the organization.2 Beyond the ³Quick Fix´ A comprehensive change model by Ralph Kilmann specifies the critical leverage points for organizational change. 6. Scheduling and implementing the "tracks" involve intervening in five critical leverage points. and so forth. when functioning properly. Initiating the program entails securing commitment from top management. cause the organization to be successful. Interventions include training programs. 4) The strategy-structure track. These problems and opportunities will be the targets of later interventions. Change programs take from one to five years to complete. 4) Implementing the "tracks" 5) Evaluating the results. 3) Scheduling the "tracks". Kilmann describes the five tracks: What does each track do for the organization? . called "tracks.

developed by Warner Burke and George Litwin. the nature of the organization is fundamentally and substantially altered ± the organization is transformed. . and willingness to change among members the conditions that must exist before any other improvement effort can succeed. Second-order change goes by many different labels: transformational. beginning with the culture track. or discontinuous change. In first-order change. then moving to the management skills track. and its holistic view of organization change and development. some features of the organization change but the fundamental nature of the organization remains the same. communication. or continuous change. First-order change goes by many different labels: transactional. 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. radical. and Xerox with good results. revolutionary. OD programs are directed toward both first. adaptive. work groups. evolutionary. General Foods. Ford General Electric.The culture track enhances trust. Eastman Kodak. then moving to the team-building track. and so forth. Westinghouse. and all resources with the new strategic direction. The management-skills track provides all management personnel with new ways of coping with complex problems and hidden assumptions. departments.2. Kilmann has tested his model at AT&T. One likes this model because of its comprehensive nature. and co-operative team efforts within and among all work groups. An OD consultant implements the tracks in a phased sequence.and second-order change. information sharing. This model shows how to create first-order and second-order change (which the authors call ³transactional change´ and ³transformational change´). 6. TRW. The reward-system track establishes a performance-based reward system that sustains all improvements by officially sanctioning the new culture. The model distinguishes between organizational climate and organizational culture. In second-order change. the use of updated management skills. incremental. its identification of the five tracks as critical leverage points. 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. with an increasing emphasis on second-order transformational change. jobs.

Fig. Transactional leaders are "leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements. 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.1: The Transactional Factors Involved in First ± Order Change . and systems (policies and procedures) result in first-order change. interventions directed toward mission and strategy. hard-working or easy-going. individual and organizational performance. organizational culture is defined as deep-seated assumptions. and difficult to change. values." Transformational leadership embodies inspiration which leads to new heights of performance. friendly or unfriendly. which change motivation and. Transactional leadership is sufficient for causing first-order change. and so forth. and beliefs that are enduring. 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. We will do so in several steps. The premise of the BurkeLitwin model is this: OD interventions directed toward structure. often unconscious. in turn. Now let us look at the Burke-Litwin model. 6. On the other hand. Following figure shows the factors involved in first-order (transactional) change." Transactional leadership embodies a fair exchange between leader and follower that leads to "normal" performance. Transformational leadership is required for causing second-order change. Changing culture is much more difficult than changing climate. management practices. and systems cause changes in work unit climate. management practices. and organization culture result in second-order change. Transactional leadership is required to make this change in organizational climate. leadership. The model also makes a distinction between transactional and transformational leadership styles. Changing structure. These perceptions are relatively easy to change because they are built on employees¶ reactions to current managerial and organization practices.Organizational climate is defined as people¶s perceptions and attitudes about the organizationwhether it is a good or bad place to work.

which produces changes in individual and organizational performance. Interventions directed toward these factors transform the organization and cause a permanent change in organization culture. structure. 6. if we want to cause second-order (transformational) change. we must change mission and strategy. and systems produce transactional change or change in organizational climate. These factors are powerful enough to change the culture fundamentally. Burke and Litwin propose that interventions directed toward leadership. mission and strategy. Research by Burke and his students suggests the model performs as intended.2: The Transformational Factors Involved in Second ± Order Change On the other hand. These factors are able to change the climate.´ We consider the Burke-Litwin model to be a significant advance in thinking about planned change. and then targets interventions toward factors of the organization that produce the desired change. The top half of figure displays the factors involved in transformational change. Interventions directed toward management practices. The OD practitioner sizes up the change situation. as shown in the above figure.Fig. these transformational processes are required for genuine change in the culture of an organization. and organization culture produce transformational change or fundamental change in the organization¶s culture. The above two figures together yield the full Burke-Litwin model shown in the following figure. The second set of dynamics is concerned with processes of human transformation. One set primarily is associated with the transactional level of human behaviour or the everyday interactions and exchanges that create the climate. leadership styles. To summarize. and organization culture. determines the kind of change required (transactional or transformational). sudden "leaps" in behaviour. Burke says: ³Thus there are two distinct sets of organizational dynamics. . that is. The bottom half of figure displays the factors involved in transactional change.

management style. The premise modeled here is that work setting factors influence organizational members¶ cognitions (they learn what is expected. rewarded). The basic premise is that OD interventions alter features of the work setting causing changes in individuals¶ behaviours. The work setting plays a central role in this model and consists of four factors: organizing arrangements. physical setting. It is how OD works. and interaction processes will affect social factors.Fig. Following figure shows the work setting in the larger organizational framework. OD interventions that focus on goals. according to Porras and Robertson. This model shows how OD interventions can be linked to factors in the work setting. strategies. and these behaviour changes occur when elements of the work setting have been modified by OD interventions. . it is described in a discussion by Porras and Peter Robertson. and technology. Interventions that focus on culture. For example. 6.3: The Burke Litwin Model of Organizational Performance and Change 6. which influence on-the job behaviours. Interventions that focus on job design and work flow design will affect technology.4 Porras and Robertson Model of Organizational Change Jerry Porras and his associates developed a model of how organization development works. required. which in turn lead to individual and organizational improvements. and rewards will affect organizing arrangements. which determine organizational performance and individual development. social factors.2. Organizational change occurs only when individuals change their behaviour.

5: A Change-based Organizational Framework 6. Fig. and Katz and Kahn were the first to apply open systems theory to organizations in 1966. Keep this framework in mind as you read the units on OD interventions because all interventions target one or more factors shown in figures. Systems .3 Systems Theory A second foundation of organization development is systems theory. and shows how systems theory enhances the practice of OD. This section explains systems theory.Fig. Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950. which views organizations as open systems in active exchange with their environment. 6.4: Organizational Work-Setting Factors This model is extremely useful for OD practitioners and organizational leaders. 6. describes the characteristics of systems.

and delineated by identifiable boundaries from its environmental supra. raw material and so on. The words µarrangement¶ and µinterrelated¶ describe interdependent elements forming an entity. studying open systems leads to a good understanding of organizations. and if the environment does not want these outputs. For example. They do something to the inputs via throughput. Here.system. and what is outside the boundary is the environment. when taking a systems approach. unitary whole composed of two or more interdependent parts. or transformation processes that change the inputs. What is inside the boundary is the system. the organization¶s purposes will be reflected in its outputs.1 The Nature of Systems The nature. the organization will cease to exist. Therefore. interconnectedness. one begins by identifying the individual parts and then seeks to understand the nature of their collective interaction. Organizations are open systems. Each of these three system processes must work well if the system is to be effective and survive. and they export products to the environment in the form of outputs. resources. Thus.theory is one of the most powerful conceptual tools available for understanding the dynamics of organizations and organizational change. Open systems have purposes and goals. and energy between system and environment. dynamics. Systems take inputs from the environment in the form of energy. system denotes interdependency. These purposes must align with purposes or needs in the environment. 6. money. information. that is the system." Kast and Rosenzweig define system as "an organized. or subsystems. components. we examine the characteristics of open systems drawing OD expositions by Katz and Kahn and Hanna.3. the reasons for their existence. in that they permit exchange of information." Hanna says: "A system is an arrangement of interrelated parts. A good rule of thumb for drawing the boundary is that more energy exchange occurs within the boundary than across the boundary. people. and interrelatedness among elements in a set that constitutes an identifiable whole or gestalt." To summarize. Every system is delineated by a boundary. conversion. Boundaries of open systems are permeable. All open systems are input-throughput-output mechanisms. and characteristics of open systems are well-known. Fagen defines system as "a set of objects together with relationships between the objects and between their attributes. ." Von Bertalanffy refers to a system as a set of "elements standing in interaction.

Say your company makes buggy whips. . that information is called positive feedback. and so on. say. For example. Survival of the system is equally influenced by whether or not the targets themselves are appropriate. Positive feedback comes from the environment. and the production plan calls for 100 buggy whips per month. Organizations achieve negative entropy when they are able to exchange their outputs for enough inputs to keep the system from running down. Systems "code" useful information and incorporate it. if a rocket ship traveling to the moon strays off its trajectory. Information is important to systems in several ways. however. "return to earth. Positive feedback measures whether or not the purpose and goals are aligned with environmental needs. organizations in the fast-food industry pay a lot of attention to information about their industry-nutrition. It is sometimes called deviationamplifying feed back. Systems are bombarded by all kinds of information: some are useful. If the mission (target) changes. It is also known as deviation-correcting feedback. aerospace. it will signal whether the environment needs and/or wants buggy whips.6: A System in Interaction with its Environment The law of entropy states that all systems ³run down´ and disintegrate unless they reverse the entropic process by importing more energy than they use. The usefulness of the two concepts is that they demonstrate that it is not enough to merely measure our outputs versus the intended targets. eating fads.Fig. mining. and makes a course correction. and the like. Negative feedback measures whether or not the output is on course with the purpose and goals. By the same token. For example. and the system adjusts to a new goal. it receives information to that effect in the form of negative feedback. 6. while screening out other information. Feedback is information from the environment about system performance. Negative feedback tells you if you are on track with your scheduled production output. but most are not useful. they usually ignore information about other industries such as electronics. competitors." Here is another example of negative and positive feedback. negative and positive. Systems require two kinds of feedback.

and systems for performing the work.´ Also. processes. people. and individual level. work. which imposes constraints and opportunities about what the organization can and can not do. and the workforce¶s expectations. the principle that there are multiple ways to arrive at a particular outcome or state ± systems have multiple paths to goals. differentiated. This model depicts the organization as an input-throughput-output system. important events.2 Congruence among System Elements David Nadler and associates at Delta Consulting Group developed the congruence model for understanding organizational dynamics and change. and critical decisions that still influence behaviour today. and technology. increased integration and co-ordination are necessary. 2) Resources available to the organization. and how things really work (versus how they are supposed to work as defined by the formal organization). Outputs are performance at the total organization level.3. such as capital. Subsystems exist within larger systems. 6. formal organization. which includes skills. and complex over time. Another characteristic of systems is equifinality. The three major input factors are: 1) The environment. and 3) History which consists of memories of past successes. Elements of the organization per se are labeled strategy. systems tend to get more elaborated. this process is called differentiation. and informal organization. the tasks people perform to create products and service markets people. what the organization is trying to accomplish and how it plans to do it. failures. either internal or external. These subsystems can be arranged into a hierarchy of systems moving from less important to more important. Systems achieve a steady state or equilibrium point and seek to maintain this equilibrium against disruptive forces. perceptions. As Katz and Kahn say: ³The basic principle is the preservation of the character of the system. knowledge.Another characteristic of open systems is steady state or dynamic homeostasis. which includes formal structures. With increased differentiation. which includes the organization¶s culture informal rules and understandings. specialized. unit/group level. . knowledge.

The thesis of STS is that all organizations are comprised of two interdependent systems. controlling variance at the source.Fig. A number of design principles have been developed to implement socio-technical systems theory. STS is the principal conceptual foundation for efforts in work redesign and organization restructuring. if people don¶t have the skills and knowledge required to do the work. training group members in multiple skills. In a company that is performing poorly. two active segments of OD today. giving information and feedback to the people doing the work. and identifying core tasks help STS consultants structure organizations and tasks for maximum effectiveness and efficiency. multi-skilled teams. If the organization¶s culture (informal organization) praises individual accomplishments and the work requires teamwork and collaboration. 6. that is. High-performance organizations almost always use principles from socio-technical systems theory. Socio-technical systems theory was developed by Eric Trist. Systems models are essential for the practice of OD. performance will suffer. Hanna writes: . Fred Emery. fit) must be present among the system¶s components¶ for the organization to produce satisfactory outputs. 6." and which elements are poorly aligned? In companies showing outstanding performance. and 2) Evaluating the "goodness of fit" or how well the elements "go together. If the strategy calls for entrepreneurial quickness and risk-taking and the formal organization is bureaucratic and highly centralized." The premise is that alignment (harmony.3. a social system and a technical system. Another important application of systems theory in organization development is open systems planning. To achieve high productivity and employee satisfaction. performance will suffer.3 Socio-technical Systems Theory and Open Systems Planning Two major variations of open systems theory. which components are "not functioning correctly. forming autonomous work groups. especially autonomous work groups (selfregulated teams or self-direct teams). For example. to the workers doing the job.socio-technical systems theory (STS) and open systems planning (OSP)-play an important role in organization development.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. 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. Principles such as optimizing the social and technical systems. and information to the point of action. performance will suffer. and that changes in one system affect the other system. and others at the Tavistock Institute in the 1950s. organizations must optimize both systems. . You can use this model to analyze organizations with which you are familiar.

not single effects. and systems thinking. 6.KI Jayaram. Learning organizations can cope effectively with rapidly changing environmental demands. 2) Developing scenarios of possible futures. events and forces. Without a systemic orientation. For example. Viewing organizations from this perspective has several consequences. Second. issues.3. mental models. because most phenomena have more than one cause. but seen in relation to other issues. By enhancing each of the other disciplines. Their technology became known as Open systems Planning (OSP). He says of systems thinking: ³It is the discipline that integrates the disciplines. and Will McWhinney developed a technology for addressing the interface between organization and the environment. Charles Krone. is the most important. systems thinking. Open systems planning entails: 1) Scanning the environment to determine the expectations of external organizations and stakeholders. this combination is often used in designing high-performance organizations. It keeps them from being separate gimmicks or the latest organization change fads. team learning. forces. Of all these disciplines. and incidents are not viewed as isolated phenomena. 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. from diagnosis to intervention to evaluation. the fifth discipline. changing one part of a system influences other parts. Third. a systems approach encourages analysis of events in terms of multiple causation rather than single causation. fusing them into a coherent body of theory and practice. . there is no motivation to look at how the disciplines interrelate. building shared vision.In the late 1960s a small team of consultants led by James Clark. G. OD practitioners expect multiple effects.´ In conclusion.4 Open Systems Thinking Open systems thinking is required for creating learning organizations. therefore. First. systems theory pervades the theory and practice of organization development. events. Senge believes that five disciplines must be mastered to create a learning organization: personal mastery. both realistic (likely to happen if the organization continues on its current course) and ideal (what the organization would like to see happen). Most OD practitioners engaged in redesign projects use a combination of socio-technical systems theory and open systems planning. according to Peter Senge. and 3) Developing action plans to ensure that a desirable future occurs. from their activities. it continually reminds us that the whole can exceed the sum of its parts.

Participation in OD programs is not restricted to elites or the top people. one changes the system. and generally make people feel better about themselves and their worlds." is a top-down delegation of decision-making with clear boundaries and strict accountability that increases managerial control. increase commitment to the organization. Increased participation and empowerment have always been central goals and fundamental values of the field. quality of work life programs. and growth. to contribute their ideas." and "Have decisions made by those who are closest to the problem. survey feedback. Rules of thumb such as "Involve all those who are part of the problem or part of the solution. autonomous work groups. treat those closest to the problem as the relevant experts. OD interventions are deliberately designed to increase involvement and participation by organization leaders and members. growth. team building. which is done by giving individuals the authority to make decisions. This idea moves the practitioner away from analyzing historical events and toward examining contemporary events and forces." These authors believe the organic view. with its emphasis on risk-taking. involvement and participation energize greater performance. and to be responsible. personal initiative. and greatly enhance acceptance of decisions. to exert influence.4 Participation of Empowerment One of the most important foundations of organization development is a participation/ empowerment model. Researchers found that group dynamics work to overcome resistance to change. This research demonstrated that most people desire increased involvement and participation. The most important contrast between the two views involves the implicit but potentially volatile assumptions people make about trust and contro1. Further. to change a system. One view. and change. is the more useful perspective. Participation is a powerful elixir-it is good for people and performance. Empowerment meant trusting people and tolerating their imperfections. produce better solutions to problems. They describe the organic view: "The other group of executives saw empowerment much differently. search conferences. These pillars of OD practice are validated by both research and practice. They believed that it was about risk-taking. quality circles. And fifth. Research on group dynamics began in the 1940s and achieved exponential growth in the 1950s and 1960s. which they call "mechanistic. Participation enhances empowerment. The entire field of OD is about empowerment. reduce stress levels. it is extended broadly throughout the organization. and empowerment in turn enhances performance and individual well-being. But . OD interventions are basically methods for increasing participation." is bottom-up and less controlling. according to field theory (Kurt Lewin). 6. The other view. To empower is to give someone power. Robert Quinn and Gretchen Spreitzer found two vastly different views of empowerment. and the culture audit are all predicated on the belief that increased participation will lead to better solutions. not just its component parts.Fourth. the forces in the field at the time of the event are the relevant forces for analysis. and give more power to more people. called "organic. For example. Participation is an especially effective form of empowerment." direct leaders to push decision-making lower in the organization.

but rather a mindset that employees have about their roles in the organization. crossfunctional "design-build" teams developed the Boeing 777. Theory. teaming. much individual behaviour is rooted in the socio-cultural norms and values of the work team. The previous discussion focused on empowerment and concluded that the act of empowering individuals greatly increased their performance and satisfaction. Teams and teamwork are among the "hottest" things happening in organizations today ± gurus extol the virtues of teams. to name just a few. employees must choose to be empowered. people must work together to accomplish them. confident about their abilities. A second fundamental belief is that teams must manage their culture. "The evidence is abundantly clear: Effective teams produce results far beyond the performance of unrelated individuals. the organic approach unleashes talent and energy in people that are best channeled by providing clear guidelines and boundaries. While management can create a context that is more empowering. as a team. many tasks are so complex they cannot be performed by individuals. They must see themselves as having freedom and discretion. Teams at Motorola produced its bestselling cellular phones. changes those norms and values. teams at 3M generate the hundreds of innovations that keep 3M ahead of its competition. the noun team has become a verb. Quinn and Spreitzer conclude: ³Empowerment. Synergy is a principal reason teams are so important. The message of this section is that putting those empowered individuals into teams creates extraordinary effects on performance and satisfaction. then.´ 6. Teams and teamwork are "in. HPWSs (high-performance work systems). Teams are important for a number of reasons: First. Third. . research. teams create synergy. Teams and teamwork are part of the foundation of organization development. and practice attest to the central role teams play in organizational success. the effects on individual behaviour are immediate and lasting. STS (socio-technical systems). HPOs (high-performance organizations). QCs (quality circles). Team Saturn produced the Saturn automobile. If the team.5 Team and Teamwork A fundamental belief in organization development is that work teams are the building blocks of organizations. Second. that is. and relationships if they are to be effective. is not something that management does to employees. the sum of the efforts of team members is far greater than the sum of the individual efforts of people working alone. and capable of having an impact on the system in which they are embedded. they must if personally connected to the organization. Team Taurus developed Ford¶s best-selling automobile. and team-related acronyms abound-SDTs (self-directed teams). processes. systems.both views contain valid ideas: for example.

and set ever-higher goals. process consultation. Larson and LaFasto found eight characteristics always present: 1) A clear. and respect-teams nurture human nature. cross-functional teams. These interventions apply to formal work teams as well as startup teams. A number of OD interventions are specifically designed to improve team performance. status. High-performance teams regulate the behaviour of team members. Team-building activities are now a way of life for many organizations. Examples are team-building. The net effect is that teams perform at increasingly higher levels. heart transplant surgical teams. When any one feature is lost. inter-group team-building. Grid OD and techniques such as role analysis technique. parallel learning structures. find innovative ways around barriers. Teams periodically hold team-building meetings. Larson and LaFasto also discovered that the most frequent cause of team failure was letting personal or political agendas take precedence over the clear and elevating team goal. and others. recognition. we examine the potential of teams and teamwork. socio-technical systems programs. All these characteristics are required for superior team performance. temporary teams. Larson and LaFasto studied a number of high-performance teams. to determine the characteristics that make them successful. help each other. teams satisfy people¶s needs for social interaction. . and the like. 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. including collegiate football national champions. quality circles. team performance declines. Investigators are discovering why some teams are successful while others are not. elevating goal 2) A results-driven structure 3) Competent team members 4) Unified commitment 5) A collaborative climate 6) Standards of excellence 7) External support and recognition Principled leadership. and individuals are trained as group leaders and group facilitators. people are trained in group dynamics and group problem-solving skills. and responsibility charting.Fourth. that they achieve synergy. and that teamwork becomes more satisfying for team members. the crew of the USS Kitty Hawk. In this section. role negotiation technique. and explore ways to realize that potential.

It isn¶t the supplemental structure that¶s important. Parallel learning structures are often the best way to initiate change in large bureaucratic organizations. Projects are the work of the future. Considerable experimentation with collateral organizations occurred in the 1970s and 1980s. and then leading the process. superior customer service. The quality of work life programs of the 1970s and 1980s used parallel structures composed of union leaders. High-performance organizations often use parallel structures to co-ordinate self-directed teams. and continuous learning. clear objectives. If you don¶t implement different norms and procedures. and countless other organizations to demonstrate the ability of small project teams to produce high quality. Union Pacific Railroad. Bushe and Shani say: ³The key thing about parallel structures is that they create a bounded space and time for thinking. Titeflex. 6.´ Parallel structures help people break free of the normal constraints imposed by the organization. talking. High responsibility. Asea Brown Boveri. In essence. Parallel learning structures are a foundation of OD because they are prevalent in so many different OD programs. projects will be performed by teams.7 A Normative ± Re-educative Strategy of Changing . empowered teams are what the best organizations are using right now to outdistance the competition. Most socio-technical systems redesign efforts and open systems planning programs use parallel structures. 6. Interestingly.Tom Peters asserts in Liberation Management that cross-functional. deciding. managers.´ The purpose of the collateral organization is to deal with "ill-structured" problems the formal organization is unable to resolve. What¶s important is that people act in a way that promotes learning and adaptation. normal hierarchical considerations become obsolete for these project teams-you could be the boss of one team. autonomous.6 Parallel Learning Structures Parallel learning structures. and initiate needed changes. especially when the change involves a fundamental shift in the organization¶s methods of work and/or culture. you don¶t have a parallel structure. parallel structures are a vehicle for learning how to change the system. specially created organizational structures for planning and guiding change programs. and report to one of your subordinates on another team. The most important and difficult task for the people creating the parallel learning structure is to create a different culture within it. engage in genuine inquiry and experimentation. and high accountability drive these project teams to outperform traditional organization structures on every measurable dimension. He uses examples from EDS (Electronic Data Systems). and acting differently than normally takes place at work. flexible response. and employees. a steering committee and working groups were used to co-ordinate the employee involvement teams. The charge to members of the parallel learning structure is to think and behave in ways that are different from the normal roles and rules of the organization. At Ford Motor Company. constitute another important foundation of organization development. Dale had introduced this concept in 1974 under the label collateral organization and defined it as ³a supplemental organization coexisting with the usual formal organization.

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

thereby solving the problem.´ Norms help determine individual behaviour and a normative-re-educative strategy of changing pervades the practice of OD. the treatment typology allows the practitioner to know what remedial efforts to apply to correct the problem. applied science or practice. hopefully. A conventional distinction is made between (1) "pure" or basic science. OD is the application of behavioural science knowledge. Although human behaviour in organizations is far from an exact science. i. The principles of diagnosis and of treatment constitute the principles of practice. failure negating it and thus requiring re-diagnosis. The diagnostic typology allows the practitioner to know what category of situation he or she has examined. Burke writes: ³If 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. not the individual. practices.e. Thus. the object of which is knowledge for its own sake. and (2) "technology. on the basis of which he or she prescribes a solution that.Because norms are socially accepted beliefs held by groups about appropriate and inappropriate behaviours." Both diagnosis and treatment consist of observing a situation and. 6. with their elaborations and implications constitute practice theory. on the basis of selected variables. then selecting and implementing treatments based on the diagnosis. Each type description of the diagnostic typology contains implications for a certain type of treatment. lawful patterns of events produce effectiveness and ineffectiveness. and finally evaluating the effects of the treatments. Greenwood discusses the activities of the practitioner as follows: "The problem that confronts a practitioner is customarily a state of disequilibrium that requires rectification. . The practitioner examines the problem situation. The aim of this discussion is to look briefly at how behavioural science knowledge becomes applied behavioural science knowledge." applied science. success corroborating the diagnosis." the OD practitioner works: first diagnosing the situation. by modifying a group norm or standards.´ From this "practice theory. OD practitioners know about these patterns through research and theory.8 Applied Behavioural Science This foundation of OD relates to the primary knowledge base of the field. On this point. the object of which is knowledge to solve practical. pressing problems. OD emphasizes the latter. behavioural science knowledge. 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. placing it in a classification scheme or typology. or practice. Greenwood states: ³The diagnostic and treatment typologies are employed together. for example.. and skills in ongoing systems in collaboration with system members. norms can best be changed by focusing on the group. the major leverage point for change is at the group level. re-establishes the equilibrium. The practitioner uses treatment as the empirical test of his diagnosis. This process is customarily referred to as diagnosis and treatment.

they constitute the beginning of a theory of organization development and change that has enormous potential for improving organizational performance and individual development. practice research and practice theory. a comparative search on the conditions and effects of various forms of social action.´ Concluding Comments: These foundations of organization development form the theoretical and practice underpinnings of the field. Taken collectively. had this to say about it: ³The research needed for social practice can best be characterized as research for social management or social engineering. 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. each is a powerful conceptual tool for thinking out and implementing change. represent contributions from applied science. 6. represent contributions from pure or basic science. Taken separately. Self Assessment Questions . 6. Action research is especially well-suited for planned change programs. It is a type of action-research.Fig. The two bottom inputs. it is a program of applying behavioural science to organizations. I am inclined to hold the opposite to be true. Action research is a method that combines learning and doing ± learning about the dynamics of organizational change. perhaps more accurately. Action research involves three processes: data collection. Kurt Lewin. and doing or implementing change efforts. problem-solving method that replicates the steps involved in the scientific method of inquiry underlies most OD activities.9 Action Research The action research model ± a data-based. who developed the concept of action research.8: Composition of Applied Behavioural Science Organization development is both a result of applied behavioural science and a. the two top in puts. behavioural science research and two behavioural science theory. feedback of the data to the client system members. form of applied behavioural science. and action planning based on the data.

Transactional change . Kurt Lewin introduced two ideas about change the first idea states that what is occurring at any point in time is a resultant in a field of opposing forces and the second is the model of the change process. ±±±±±±±±±± means moving to new level of behaviour. _____________ means sum of the efforts of team members is far greater than the sum of individual efforts of members. 3. A fundamental belief in OD is that work teams are the building blocks of organizations.1. A _____________ is defined as ³a set of elements standing in interaction. ³Work teams are building blocks of organizational development. which in turn lead to individual and organizational improvements is the principle of Porras and Robertson model organizational change. Unfreezing 2. 6.10 Summary The foundations of organizational development form the theoretical and practice underpinnings of the field. The Burke-Litwin model emphasized on first-order and second-order change. 6.´ 5. Systems theory views organizations as open systems in active exchange with their environment. OD interventions alter features of the work setting causing changes in individuals¶ behaviours. 2. ±±±±±±±±±± gave the model ³Beyond the Quick Fix´. 4. 2.´ Comment on this statement. Explain Kurt Lewin¶s models and theories of planned organizational change. 3. What are first-order and second order change according to Burke-Litwin Model of organizational change? Explain. Action research model combines learning and doing. 4. Ralph Kilmann specified the critical leverage points for organizational change.11 Terminal Questions 1. 6. What are the features of systems theory of organizational development? 5. First²order change is also called ___________. In parallel learning structures members have to think and behave in ways that are different from the normal roles and rules of the organization.12 Answers to SAQs and TQs SAQs: 1. Bring out the essence of ³managing beyond the quick fix´ model of organizational development. Ralph Kilmann 3.

Refer section 6.2.3 Types of Organization Culture.6 Summary .3 5.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 6. Synergy Answers to TQs: 1.2 3.2. Refer section 6. 7.2 Characteristics of Organization Culture 7.1 2. Refer section 6. MU0002-Unit-07-Organization Culture and Climate Unit-07-Organization Culture and Climate Structure: 7.3 4. System 5.1 Introduction Objectives 7. Refer section 6.4.2.5 Developing and changing Organization Culture Self Assessment Questions 7.4 Organization Culture and Effectiveness 7.

Culture is comprised of the assumptions. Some of the most readily agreed upon are the following: 1. 7.2 Characteristics of Organization Culture Organizational culture has a number of important characteristics. Norms. 2.1 Introduction Basically. Culture is one of those terms that¶s difficult to express distinctly. despite the best-laid plans.8 Answers to SAQs and TQs 7. what they brag about. Which in many organizations come down to ³Do not do too much. Practitioners are coming to realize that. but also changing the corporate culture as well. Martin and Meyerson. they use common language. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration.7 Terminal Questions 7. but everyone knows it when they sense it. the culture of a large. Comprehensively organization culture is the pattern of basic assumptions that is invented. discovered. etc. · Discuss about developing and changing organization culture. Observed behavioral regularities. ± similar to what you can use to get a feeling about someone¶s personality. For example. and validated enough to be taught to new members as the correct ways of perceiving. values. · Describe different types of Organization Culture · Explain organization culture and effectiveness. 1986). Standards of behavior exist. you will be able to: · Understand Organization Culture. You can tell the culture of an organization by looking at the arrangement of furniture. and feeling in relation to these problems (Schein. Members of an organization soon come to sense the particular culture of an organization. organizational change must include not only changing structures and processes. Objectives: After studying this unit. and rituals related to deference and demeanor. what members wear. norms and tangible signs (artifacts) of organization members and their behaviors. terminology. organizational culture is the personality of the organization. do not do too little?´ . thinking. for-profit corporation is quite different than that of a hospital which is quite different than that of a university. The concept of culture is particularly important when attempting to manage organization-wide change.7. including guidelines on how much work to do. When organizational participants interact with one another.

Hierarchical leaders are typically coordinators and organizers who keep a close eye on what is happening. and in particular taking note of transaction cost. 4. are particularly driven by results and are often very competitive. They often have well-defined policies. Leaders in market cultures are often hard-driving competitors who seek always to deliver the goods. 5. For many years. Market The Market organization also seeks control but does so by looking outward. 7. clans often have flat organizations and people and teams act more autonomousl. Dominate value: These are major values that the organization advocates and expects the participants to share. Hierarchies have respect for position and power. Clan The Clan organization has less focus on structure and control and a greater concern for flexibility.3. value flows between people and stakeholders with minimal cost and delay. Organizational climate: This is an overall ³feeling´ that is conveyed by the physical layout. Rather than strict rules and procedures. and the way members of the organization conduct themselves with customers or other outsiders. In an efficient market organization. Typical examples are high product quality. In contrast to Hierarchies. Philosophy: These are policies that set forth the organization¶s beliefs about how employees and/or customers are to be treated. 6. internal and external are viewed in market terms. people are driven through vision. It has an inward focus and a sense of family and people work well together. Market cultures are outward looking. . Transactions are exchanges of value. Note that the Market organization is not one which is focused just on marketing. Rules: There are strict guidelines related to getting along in the organization. processes and procedures. this was considered the only effective way of organizing and is still a basic element of the vast majority of organizations. New-comers must learn those ³ropes´ in order to be accepted as full-fledged members of the group.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. Low absenteeism and high efficiency. the way participants interact. shared goals. but one where all transactions. outputs and outcomes.

systems and subsystems. the way they dress etc. 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). The set of basic assumptions evolve into values artifacts and norms in terms of which an organization culture may be examined and understood. · The observable behavior of its members (the way they talk. although not necessarily documented.strongly driven by loyalty to one another and the shared cause. thinking. 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 feeling in relation to these problems (Schein. the jargon they use. invisible to the naked eye. the adhocracy will rapidly form teams to face new challenges. symbols. 1993). which is necessary in a rapidly changing business climate. affecting the performance of every-one within the culture in positive or negative ways. Clan leaders act in a facilitative. innovative entrepreneurs who take calculated risks to make significant gains. · Its rituals.4 Organization Culture and Effectiveness It is reflected in how things are done (Flanagan. 1995) and how problems are solved in an organization. but critical to shaping its behavior. · Public documents it releases and media reports and stories about it. culture is like the DNA of an organization. big-bang projects and development. Martin and Meyerson. Rules. Comprehensively organization culture is the pattern of basic assumptions that is invented. It will use prototyping and experimenting rather than long. Where market success goes to those with greatest speed and adaptability. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. rules. 1986). etc. do still exist and are often communicated and inculcated socially. and validated enough to be taught to new members as the correct ways of perceiving. Artifacts: The visible manifestations of culture as seen in the physical and social environment of the organization such as: · Its structure. 7. Leaders in an adhocracy are visionary. supportive way and may take on a parental role. discovered. plaques. . In biological terms. norms. Adhocracy The Adhocracy has even greater independence and flexibility than the Clan. and procedures.

and what is right and what is wrong. and doing. or standards held by members of an organization. individually and collectively.the informal rules of the fame telling employees what they are supposed to be saying. there are numerous variables. profitability. These are the essential and enduring tenets of an organization. Though a large volume of literature is available on the concept and working of organizational effectiveness. Organization Effectiveness Organizational effectiveness. its core value are limited to a few in number. Causal Variables: Causal variables are those factors that influence the course of development within an organization and its results or accomplishment. to denote organizational effectiveness. is defined and conceptualized in different ways. and behaviour. there is often contradiction in various approaches. They are reflected in the core capabilities of a company. For example. These causal variables include only those independent variables which can be altered or changed by the organization and its management. various terms such as efficiency. From this point of view. the organizational analysis is incomplete for a practicing manager unless the factors underlying effectiveness are identifying. Causal variables include the structure of the organization and management¶s policies. Though an organization espouses a series of values. are often used interchangeably. and no unanimity is found in different approaches. believing. organizational growth. Thus. business and leadership strategies. goals. Causal variables include the structure of the organization and its management. productivity. skills. The various approaches are judgmental and open to question. 1. decisions. Grouping variables into these categories aids greatly in the correct interpretation of the data and their use for diagnostic and other purposes. Though each individual¶s effectiveness is significant but perhaps the most important aspect of effectiveness is its relationship to the entire organization. Identifying.which are useful in discussing organizational effectiveness over time. Values evolve out of the basic assumption and form the core (or heart) of the culture. IBM norms dictate that employees should actively listen and respond to customer demands and complaints. and are generally not compromised for short-term benefits or financial gains. Whatever the criteria adopted for organizational effectiveness. from the basis of its policies and action. .Values: These are the social principles. Likert states that causal variables are independent variables which determine the course of developments within an organization and the results achieved by the organization. intervening and end result. 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. also called as organizational success or growth. These variables have been classified by Likert into three groups-causal. the personality of the organization). reflecting what is important in the organization and determining how the organization ought to be (the ethos. communicating.

the process usually involves some version of the following steps: 1. all in this core group believe that the idea is a good one. The founder brings in one or more other key people and creates a core group that shares a common vision with the founder. For example. 3. A single person (founder) has an idea for a new enterprise. and (ii) the intervening behavioral cluster. and a common history begins to be built. then such rapid change can be welcomed and accommodated with as little disruption and as few problems as possible. is worth running some risks for. money. attitudes. and perceptual cluster.g. if the appropriate organization culture is in place. Intervening Variables: Intervening variables are those factors which are reflected as the internal state of organization. and perceptions of all members and their collective capacity for effective interaction. and so on. scrap loss. Changing Organizational Culture Sometimes an organization determines that its culture has to be changed. the loyalties. Intervening variables are concerned with building and developing the organization. others are brought into the organization. and decision-making. communication. 2. and energy that will be required. and earnings. motivations. Likert states that the intervening variables reflect the internal state and health of the organization. New product development and information technology is changing so rapidly that any example would be soon out-of ±date. the current environmental context has undergone drastic change and either the organization must adapt to these new conditions or it may not survive. is workable. performance goals. incorporating.5 Developing and Changing Organization Culture How Organizational Cultures Start Although organizational cultures can develop in a number of different ways. The intervening variables may be divided into two broad categories: (i) the intervening attitudinal. locating space. 4. At this point.2. and is worth the investment of time. Many of these variables are caused by causal variables. However. 7. According to Likert. costs. The founding core group beings to act in concert to create an organization by raising funds. motivational. and they tend to be longterm goals. end-result variables are the dependent variables which reflect the achievements in the organization such as its productivity. 3. building. e. 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.. That is. This is one part of effectiveness that many managers overlook because it emphasis long-term potential as well as short-term performance. . obtaining patents.

3. Take out all trappings that remind the personnel of the previous culture. management. Politics. if possible. Structure. the industry in which the partners come from and now reside. Emotions. relationships. 1. so that a consistent message is delivered from all management team members. attitudes. Predictable obstacles include entrenched skills. 2. and whether products and/or services are involved. Include employees in the culture change process. 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?. 6. age. Set realistic goals that impact on the bottom line. Recruit outside personnel with industry experience. and how this plays out among the partners will be important to cultural compatibility. Make changes from the top down. and history of two firms. These emotions will be a major input into the clash or compatibility of the two cultures. Guidelines for change Despite the significant barriers and resistance to change. This attempt to change culture can take many different forms. roles. The personal feelings. the geographic location. Simple guidelines such as the following can be helpful. the ³culture contract´ that individuals have bought into to guide their day-to-day thoughts. take these losses early. 2. 5. . These factors from the two cultures include the size. 4. In addition. 3. 7. and patterns of daily behavior. habits. Expect to have some problems and find people who would rather move than change with the culture and. Staffs. 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. Where does the power and managerial decision making really reside? Corporate cultures range from autocratic extremes to total employee empowerment. powerful stakeholders such as unions. organizational cultures can be managed and changed over time. especially when making changes in rules and processes. commitment. and structures that work together to reinforce traditional cultural patterns.Even through some firms have had a culture in place to anticipate change. or even customers may support the existing culture. so that they are able to interact well with the organizational personnel. Assess the current culture.

Move quickly and decisively to build momentum and to defuse resistance to the new culture.8. and strategic constituencies approach.goal approach. intervening variables and end-result variables and there exists interrelationship among these variables. behavioural approach. Briefly explain different types of organizational culture. Stay the course by being persistent. Explain the characteristics of organization culture. are particularly driven by results and are often very competitive. 3. Finally. ________cultures are outward looking. Causal variables Answers to TQs: . 2. Organizations to be successful must be efficient and effective. 2. Self Assessment Questions 1. _____are the visible manifestations of culture as seen in the physical and social environment of the organization. 7. effectiveness through adaptive-coping cycle has been discussed. Organizational effectiveness can be measured through various approaches. Discuss the development and change of organizational development. 7.8 Answers to SAQs and TQs SAQs: 1. Artifacts 2.6 Summary Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. system-resource approach. Market 3. 7.7 Terminal Questions 1. 9. Factors in organizational effectiveness include casual variables. ___________are those factors that influence the course of development within an organization and its results or accomplishment. Effectiveness of an organization can be increased through economic man approach and administrative man approach. 3.

5 Organizational Politics Defined and Explored 8.10 Terminal Questions .Power.1. Refer section 7. Politics and Organization Development Unit-08.8 Acquiring and using Power Skills Self Assessment Questions 8.7 Operating in a Political Environment 8.3 3.6 The Role of Power and Politics in the Practice of OD 8.9 Summary 8.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . MU0002-Unit-08.3 Two Faces of Power 8. Refer section 7.2 2.4 Theories about the Sources of Social Power 8.Power. Politics and Organization Development Structure: 8.1 Introduction Objectives 8.2 Power Defined and Explored 8. Refer section 7.

¶ To have power is to be able to get desired things done.1 Introduction Power and politics. we examine power and politics in relation to organization development. indisputable facts of organizational life." ³Power is the ability of those who possess power to bring about the outcomes they desire.actions and the decisions that precede them. That criticism was essentially correct for many years although it is less valid today. The French word µpouvoir¶ stands for both the noun µpower¶ and the verb µto be able.8. · Acquire skills to handle power and politics in organizations." .´ ³A has power over B to the extent that he can get B to do something that B would otherwise not do. and for change to occur in an organization. power must be exercised." "Power is defined in this unit simply as the capacity to effect (or affect) organizational outcomes. · Explain the role of power and politics in the practice of OD. In this unit. and behaviours of people. but kinetic power is the act of doing so.2 Power Defined and Explored "Power is the intentional influence over the beliefs. to effect outcomes. As Warner Burke observes: "Organization development signifies change. 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. must be understood if one is to be effective in organizations. you will be able to: · Define power and politics in organizations. 8. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics. One person exerts power over another to the degree that he is able to exact compliance as desired.´ Organization development has been criticized for not taking into account power in organizations. Objectives: After this studying this unit. Potential power is the capacity to do so.11 Answers to SAQs and TQs 8. · Explain theories about the sources of power. emotions. 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.

3 Two Faces of Power David McClelland proposed an important distinction when he identified "two faces of power" ± positive and negative. persuading-these are examples of positive uses of power. an authority or power dimension is required. Crushing. unsocialized need to dominate others. influence. the act or ability of influencing others. The phenomenon of power is ubiquitous. humankind would not have the standard of living it does today. The positive face of power is characterized by a socialized need to initiate. the positive face of power seeks to empower self and others. and organizational activities. power being the predominant mode. or positive. or acquired? In this unit. This positive face of power enables others to reach their goals as well as lets the person exercising power reach his or her goals.4 Theories about the Sources of Social Power Power exists in virtually all social situations. In most organizations the positive face of power is much more prevalent than the negative face of power. hurting. Power per se is probably neither good nor bad although Lord Acton observed that "power tends to corrupt. We think this distinction provides a good insight into the concept of power. coercing-these are examples of negative uses of power. and repression. Without influence (power) people would have no cooperation and no society. and outcomes favoring one party over the other. 8. political. financial. the necessity of social interaction between two or more parties. however. not the possession of power as such. it is through the use of power that things get done in the world. forcing." A moment¶s reflection. influencing. with collective. We therefore define interpersonal power as the ability to get one¶s way in a social situation. In fact." . absolute power corrupts absolutely. being exercised. selling. How do some people come to possess power? How is power generated. humankind would not have much of the misery it does today. suggests that many problems with power stem from the goals of persons with power and the means they use." Her research in four organizations showed both kinds of power. technological. Power-in-action may take many forms. we will examine four different views about who gets power and how: · Emerson¶s "Power-Dependence theory. spiritual. 8. The negative face of power seeks to dominate and control others. the negative face of power is characterized by a primitive. Without leadership (power) directed toward warfare. confiscation. McClelland observed that while power has a negative connotation for most people. and lead. It is especially salient in coordinated activities such as those found in organizations. for organizations to function. bestowed. Roberts came to a similar conclusion in her study of "collective power" and "competitive power. both positive and negative. Without leadership (power) in medical. 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. Leading.Analyzing these definitions shows some common elements: effectance-getting one¶s way. According to him.

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

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

punish, being in control of critical skills, knowledge, or information, the ability to solve critical problems or exigencies-anything that creates dependence of one actor or set of actors on another. 8.5 Organizational Politics Defined and Explored Harold Lasswell defined ³politics simply as the study of who gets what, when, and how´. ³Organizational politics involve those activities taken within organizations to acquire, develop and use power and other resources to obtain one¶s preferred outcomes in a situation in which there is uncertainty about choices´. ³Organizational politics involve intentional acts of influence to enhance or protect the selfinterest of individuals or groups´. ³Organizational politics is the management of influence to obtain ends not sanctioned by the organization or to obtain ends through non-sanctioned influence means´. Thus, we view politics as a subset of power, treating it as informal power, illegitimate in nature. Likewise we also treat authority as a subset of power, but in this sense, formal power, the power vested in office, the capacity to get things done by virtue of the position held. Analyzing these definitions suggests that the concepts of power and politics are similar. Both relate to getting one¶s way-effectance. Both relate to pursuit of self-interest and overcoming the resistance of others. For our purposes, organizational politics is power-in-action in organizations; it is engaging in activities to get one¶s way. One important feature in these definitions should be examined further. The first three definitions treat politics as a neutral set of activities; the last two definitions view politics as illegitimate or unsanctioned activities. We are inclined to consider politics as neither good nor bad per se but believe that politics, like power, has two faces. The negative face of politics is characterized by extreme pursuit of self-interest; unsocialized needs to dominate others; a tendency to view situations in win-lose terms-what I win, you must lose-rather than win-win terms; and predominant use of the tactics of fighting-secrecy, surprise, holding hidden agendas, withholding information, deceiving. The positive face is characterized by a balanced pursuit of self-interest and the interests of others; viewing situations in win-win terms as much as possible; engaging in open problem solving followed by action and influencing; a relative absence of the tactics of fighting; and a socialized need to lead, initiate, and influence others. Organizational politics tend to be associated with decision-making, resource allocation, and conflict resolution processes. These key areas are the battlefields where actors win and lose; they are where the "goods" are distributed and the goals decided. In fact, one gains a quick understanding of the overall "political climate" of an organization by studying its methods of resource allocation, conflict resolution, and choosing among alternative means and goals.

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

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

Many OD interventions promote win-win solutions for conflict situations. 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. Organizations are social systems in which members have both a history and a future of interacting. the manager will vigorously defend it. constructive social relationships. The nature of organizations and the nature of organization development suggest this rule. which is to help someone else solve his or her major problems. to help them achieve their goals and solve their problems. usually managers. OD programs become desired commodities when they are instruments that allow individuals and organizations to reach their goals. A valuable byproduct of this fact is that if the program runs into political turbulence. Sometimes OD practitioners overlook that they are hired by others. not the OD consultant. Rule Five: Mind your own business. those issues vital to the organization¶s success. . The OD program belongs to the manager. which is to be an expert on process. The following rules describe ways to avoid becoming involved in one¶s own or in others¶ political struggles. The preceding rules of thumb describe ways to increase or solidify one¶s power base. 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 professionals who are skilled in conflict management techniques and OD programs that encompass conflict resolution activities become valued commodities. When the OD program serves the needs of top executives. Each is derived from one general principle: Mind your own business. The principle is simple but powerful: know your legitimate business and stick to it. OD consultants have a formal or informal contractual agreement with managers to help them do what they are trying to do-better. not content. and showing appreciation for the strengths of others are components of interpersonal competence. Abiding by this rule keeps the consultant from becoming entangled in politics. Beer and Walton argue that organization development should move from being practitioner centered to being managercentered. it gains an aura of respect and protection that sets it above most political entanglements. Rule Three: Make the OD program a valued commodity for multiple powerful people in the organization.counseling. Good OD practitioners will have learned and practiced these skills. not by getting involved in the answers. The role of the OD consultant is to help others upon request. Rule Six: Mind your own business. Rule Four: Create win-win solutions. and effective conflict management techniques are required to enhance stable. while at the same time increasing his or her usefulness to the organization¶s powerholders. OD programs should be results-oriented. Another way the OD program becomes a desired commodity is by focusing on important issues. Rule Two: Make the OD program itself a desired commodity.

but these give the flavor of the issues one must consider when operating in a political environment." "using social networks. but that does not mean practitioners must be naive or incompetent in the political arena." OD practitioners have typically pursued a "playing it straight" strategy as their sole means of exerting power. negotiations the nature of power and politics. Earlier we stated that the OD practitioner should learn as much as possible about bargaining. As shown in the figure. 8. dealing directly with powerholders and decision makers." and "going around the formal system. individual power derives from knowledge. problem solver. Attention to these rules can save OD practitioners time and energy that can be more profitably invested in the OD program. Illegitimate behavior encroaches on others¶ legitimate "turf. and personality characteristics. viable. the strategy and tactics of influence. Illegitimate behavior causes others to try to exert greater control over the situation. thereby greatly expanding practitioner influence.1: Power Base and Power Strategy Connection Individual Power Bases Knowledge · Expertise · Information · Tradition Others¶ Support y y Strategies for Success Playing It Straight · Use data to convince · Focus on target group · Be persistent Using Social Networks · Alliances and coalitions · Deal with decision maker · Contacts for information Political access Staff support . yet legitimate means of acquiring power. A subtle phenomenon is involved here: when people engage in illegitimate behavior. We believe the legitimate role of the OD practitioner is that of facilitator. and the characteristics and behaviors of powerholders. Three successful power strategies are "playing it straight.Rule Seven: Mind your own business because to do otherwise is to invite political trouble. not power activist or power broker. others¶ support. We could propose more rules of thumb. catalyst.8 Acquiring and Using Power Skills The OD practitioner is neither power activist nor power broker." which arouses defensive actions. and educator. Table 8. One carries out such a strategy by participating in alliances and coalitions. The authors propose adding the "using social networks" strategy to their repertoires. Networking is recognized as a potent. and using contacts for information. such behavior is often interpreted as politically motivated.

and legitimacy. no one has the necessary information and resources to accomplish what¶s expected of them. Networks are critical to effective performance for one compelling reason: Except for routine jobs. criticality-how important one¶s job is flexibility-the amount of discretion in the job. . personal power and position power. which in turn will protect the interests of all concerned. a person¶s power comes from two main sources. and relevance-how important one¶s task is in relation to organizational priorities. ³One of the most important ways of gaining power in an organization is by establishing a broad network of task and interpersonal relationships. in turn. The power structure will realize that collaborative power is preferable to manipulation and deception. arises from expertise.) Position power derives from five sources: Centrality-access to information in a communication network. In this model. influence key powerholders to accept the OD program. Whetton and Cameron¶s model is shown in following figure. visibility-how much one¶s work is seen by influential people. Indeed. (Legitimacy refers to abiding by and promoting the values of the organization. The four stages are: Phase I Consolidating Power to Prepare for Change Phase ll Focusing Power on Strategic Consensus Phase Ill Aligning Power with Structure and People Phase IV Realizing Power through leadership and Collaboration These stages are the means the OD consultant uses to "take the high road" mentioned in the previous quotation-build a power base. even those of little power. This practical. effort. 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´. Personal power. then utilize a facilitative OD process in which the powerholders work on strategic business issues using consensus decision making to develop a corporate strategy.Personality y y y Going Around Formal System · Work around roadblocks · (Don¶t) use organization rules Charisma Reputation Professional credibility Finally. the authors propose a four-stage model for using the OD process to help the power elite transform the organization in ways beneficial for all concerned. personal attraction. how-to book on power and organization development is well worth studying.

Retribution refers to coercion and threats. and (3) empowering others. arise from known conditions.1: Model of Power and Influence Networking is used to increase both personal power and position power. (2) selecting the proper influence strategy. actually using it to get things done is another. Our suggestions for . and reciprocity can be useful when reason fails." Three things are involved in converting power into influence: (1) resisting other people¶s inappropriate influence attempts. According to these authors. Usually reason is the preferred strategy.Fig. Three influence strategies can be used to influence others-reason. and (6) build on success. Reason refers to persuasion by facts. and retribution. Retribution is not recommended except in unusual cases. Methods for empowering others are the following: (1) involve subordinates in assigning work. and are amenable to positive control." And. "Power is converted into influence when the target individual consents to behave according to the desires of the power holder. (4) express confidence (5) foster initiative and responsibility. They write: "Influence entails actually securing the consent of others to work with you in accomplishing an objective. reciprocity. we have examined power and politics with the goals of understanding the phenomena and deriving implications for OD practitioners. power-in-use is called influence. Concluding Comments: In this unit. 8. Power and politics are similar in nature. Whetton and Cameron suggest several means of resisting others¶ influence attempts such as confrontation and using countervailing power. (3) reward and encourage others in visible and personal ways. Having power is one thing. collaborative work environment. Reciprocity refers to exchange of favors. (2) provide a positive.

11 Answers to SAQs and TQs SAQs: 1. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics. ±±±±±±±±±± is made up of Charisma. when. Explain the role of power and politics in the practice of OD. 8. Organizational politics involve intentional acts of influence to enhance or protect the self-interest of individuals or groups. 8. 8. reputation and professional credibility. Identify the bases of individual power and the respective strategies for their success. and are amenable to positive control. McClelland 3. Define power in an organizational context and explain types of power. 5. Referent power 4.. 3. ±±±±±± is the intentional influence over the beliefs. 2. Define organization politics. Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another. Describe briefly various theories of power. 2. 4.9 Summary Power and politics are inseparable facts of organizational life. Self Assessment Questions 1. Organizational power is the ability of those who possess power to bring about the outcomes they desire. Power based on the power-receiver having identification with the power holder is called ±±±± ±±±±±±±.10 Terminal Questions 1. and how. 4. ±±±±±±±± defined politics as the study of who gets what. Power and politics are similar in nature. _____________ has identified two faces of power. 5. 3. units or departments is most important in solving organizational problems. arise from known conditions. Power can be either positive or negative.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. Harold Lasswell . Power 2. emotions or behaviour of people. when and how. Organizational politics is defined as the study of who gets what. Strategic-contingency model of power asserts that power that accrues to the individuals.

5 4.1 Introduction Objectives 9. Refer section 8. Refer section 8.5 Quality Circles 9.5. Personality Answers to TQs: 1.2 2. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9.4 3.4 Management By Objectives 9.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .Refer section 8. Refer section 8.6 5.6 Quality of Work Life Projects .2 Meaning and Definitions 9.3 Socio Technical Systems 9. Refer section 8.

11 Terminal Questions 9. you will be able to: · Explain the Socio technical change. An organization development intervention is a sequence of activities. Objectives: After studying this unit.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. These interventions vary from standardized program that have been developed and sometimes tailored program.8 Total Quality Management 9.9 Reengineering Self Assessment Questions 9. These methods are receiving increasing attention in Organization Development. · Explain Total Quality Management. Nothing is permanent except change because change is permanently changing.9. · Discuss the parallel Learning Structures. actions.10 Summary 9. One important intervention technique is Technostructural interventions because these are related to technical and structural issues such as how to divide labour and how to coordinate department which is related to Restructuring organization. events intended to help an organization improve its performance and effectiveness. · Discuss the Management By Objectives · Explain the Quality Circles. organizational problems may repeat.7 Parallel Learning Structures 9. .12 Answers to SAQs and TQs 9. · Explain Reengineering. In this dynamic and fluid environment. 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. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design.

It endeavors to re-design the organization¶s structure. Basic reinforcement theories. Managers and administrators are notoriously pragmatic. 9. 4. Pasmore. Structural changes are consistent with their operating styles and are generally understood by practitioners. Once diagnosed and an appropriate correction developed. organization theory. and more critically. 3. Cummings. a predictable cost Implementation of group strategies involves significant long-term man-hour and consultant costs.3 Socio Technical Systems Socio-technical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs.9. and OD practice enables the change agent to estimate the probable consequences of the change. 5. Structure changes are normally ³institutionalized´ and less subject to this problem. Downsizing associated with restructuring. 1967. It could involve the following steps (Foster. Cost is Low. Organization Acceptance of Change. Succession Doesn¶t Destroy Change Effort. This normally is a reasonable. Weeks and months of group effort are saved. includes removing or adding layers to hierarchy. 2. 1988): ‡ Determining the environmental demands ‡ Creating a vision statement ‡ Educating organizational members . Advantages of Structural Interventions There are a number of reasons why a consultant should consider employing a structural intervention. processes and functions to create a balance between the organization and its changing external environment. their attractiveness is also increased by the following advantages: 1. Changes can involve decentralization and centralization. Rapidity of change. change can be introduced relatively rapidly by top management. One problem with behavioral/ group interventions is the tendency for new managers or employees to discount or fail to continue the change program. meaning the major costs are associated with analysis and design of change. Greater Predictability. The cost of structural change is generally ³front-end´ loaded. From a benefit cost analysis. In addition.2 Meaning and Definitions Structural Intervention is related to the changes that relate elements of organization to one another. 1976. structural Interventions compare quite favorably with all other alternatives.

Since then.´ The integration of individual and organizational objectives through MBO has been emphasized by Chakravarty when he has defined MBO as follows: ³MBO is a result-centered. Certain degree of overlapping is there. its definitional aspect. 2. MBO is an approach and philosophy to management and not merely a technique. A management technique can be applied in selected parts of the organization and will have limited implications for its other parts. non-specialist.´ Based on the definition of MBO. In fact. though not strictly an OD intervention in the sense in which other interventions have been discussed so far. often MBO provides the stimulus for the introduction of new techniques of . therefore. Its basic idea has been derived from the concept of participative goal setting as a technique of OD. The term MBO was coined by Drucker in 1964 when he emphasized the concept of managing by results. Though there are some variations in the practices of MBO and. and human resources of the organization by integrating the individual with organization and organization with the environment. As an approach to management. consciously directed towards the effective and efficient achievement of organizational objectives. operational managerial process for the effective utilization of material. MBO is likely to affect every management practice in the organization. many business and nonbusiness organizations have adopted this in some form or the other. MBO is bound to have some relationship with every management technique. is a technique and system which helps in improving organizational performance. its features can be identified as follows: 1. with objective orientation as its essence. it has been defined as follows: MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. MBO employs several techniques but it is not merely the sum total of all these techniques. It is a particular way of thinking about management.4 Management by Objectives Management by objectives (MBO).‡ 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. physical. On the other hand.

MBO is the joint application of a number of principles and techniques. Therefore. 1. The total management process revolves round the objectives set jointly by the superior and the subordinate. the clarity and balance of objectives. 5. Resource allocation. ³why does the organization exist?´. The MBO process is not as simple as it appears to be. delegation of authority. What business are we in?´ and what should be our business?´ provide guidelines for the statement of purpose. and participation of the managers with accountability for results. in interaction with external factors. Managers need training and experience for developing the required skills. This will go in a sequence like this (i) defining the purpose of the organization. (iii) what should be the degree of vertical integration and so on. Therefore. Setting of Organizational Purpose and Objectives: The first step in MBO is the definition of organizational purpose and objectives. all the units or departments and individual manager. etc. superiors and subordinates. Questions. reward and punishment system is attached with the achievement of the objectives. Process of MBO MBO is a system for achieving organizational objectives. 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. It works as an integrating device. The basic emphasis of MBO is on objectives. such as. enhancement of employee commitment and participation. The MBO process is characterized by the emphasis on the rigorous analysis. Similarly. Usually the objective setting starts at the top level of the organization and moves downward to the lowest managerial levels. (ii) long-range . This is possible because MBO tries to match objectives and resources. its process should facilitate translation of basic concepts into management practice. managers have the opportunities for clarifying their job relationships with peers. The review is future-oriented because it provides basis for planning and corrective actions. 3.. are determined on the basis of objectives. 4. its subsystems and people. This. Whereas the various techniques of management help in measurement of results in resources. It emphasises initiative and active role by the manger who is responsible for achieving objectives.management and enhances the relevance and utility of the existing ones. Objectives are established for all the levels of the organization. each manager takes active part in setting objectives for himself and also in evaluating his performance as to how he is performing. This process clarifies the role very sharply in terms of what one is expected to achieve. The performance review is held regularly. including the corporate level. normally once a year. Objectives in MBO provide guidelines for appropriate system and procedures. Periodic review of performance is an important feature of MBO. 6. MBO is also concerned with determining what these results and resources should be. Therefore. The MBO is characterized by the participation of concerned managers in objective setting and performance reviews. Objectives provide the means for integrating the organization with its environment.

The allocation and movement of resources should be done in consultation with the subordinate manager. (iv) productivity. 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. Setting Subordinates¶ Objectives: The organizational objectives are achieved through individuals. KRAs also indicate the present state of an organization¶s health and the top management perspective for the future. this gap narrows because of narrowing down of perception of superior and subordinate about what can be done at a particular level. Sometimes. Appraisal: Appraisal aspect of MBO tries to measure whether the subordinate is achieving his objective or not. Thereafter. Matching Resources with Objectives: When objectives are set carefully.and strategic objectives. with the experience gained over the period of time. (vii) manager performance. However. and (viii) public responsibility. 3. In turn. (iii) innovation. If not. (v) worker performance. there is a series of superior and subordinate relationships. the list of KRAs gets considerably changed over the period in response to new needs and opportunities. It may be emphasized that KRAs are derived from the expectations of various stakeholders and indicate the priorities for organizational performance. Examples of KRAs applicable to most of the business organizations are (i) profitability. (iii) short-term organizational objectives. Therefore. . 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. the final objectives for the subordinate are set by the mutual negotiation between superior and subordinate. Therefore. Key Result Areas: Organizational objective and planning premises together provide the basis for the identification of key result areas (KRAs). they also indicate the resource requirement. (iv) divisional/departmental/sectional objectives. each individual manager must know in advance what he is expected to achieve. 2. 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. (ii) market standing. By relating these to objectives. By relating these to objectives. there should be matching between objectives and resources. a superior manager is better able to set the need and economy of allocating resources. Therefore. the subordinate states his own objectives as perceived by him. Every manager in the managerial hierarchy is both superior and subordinate except the person at the top level and lowest level. 5. Even though KRAs are most durable. resource availability becomes an important aspect of objective setting because it is the proper application of resources which ensures objective achievement. The process of objective setting begins with superior¶s proposed recommendations for his subordinate¶s objectives. (v) individual manager¶s objectives. In the beginning of MBO process in an organization. 4. the achievement in a particular KRA also provides the impetus for a new KRA in future. a superior manger is better able to see the need and economy of allocating resources. (vi) financial and physical resources. It is not taken merely to punish the non-performer or to reward the performer. In fact.

hierarchical structure. The original idea of quality circles involved small groups of volunteers meeting on a regular basis. 9. or in people¶s heads) and distributing it to the people who need it in a timely and efficient way. it is used as an input for recycling objectives and other actions. knowledge. Objective setting is a joint process through interaction between superior and subordinate. It Consists of a steering committee and a number of working groups that: · Study what changes are needed in the organization. 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.Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement. 9.6. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. quality groups are often compulsory and organized around specific work teams. which consequently result into high level of task variety. 9. Recycling: Though appraisal is the last aspect of MBO process. require joint participation by union and management in the process of work-designing. and · Then monitor the resulting change efforts. this approach looked both at technical and human sides of organizations and how they are interrelated. QWL programs. Some organizations have even gone as far as setting targets for the number of suggestions quality groups are expected to come up with. · Make recommendations for improvement. what happens at each level may affect other levels also. . each having three to fifteen members.5 Quality Circles Quality circle is one of the most popular methods in the USA which was originally developed in Japan in 1950s. on paper. appropriate feedback and employee discretion. but in its contemporary form. Quality circle program consists of several circles. Therefore. Objectives are neither set at the top and communicated to the bottom nor are they set at the bottom and go up.6 Quality of Work Life Based on the research of Eric Trist et al. at the Tavistcock Institute of Human Relations in London. and rewards. Quality circle requires a managerial philosophy and culture that promotes sharing power. Groups representing various levels and functions work to open new channels of communication outside of and parallel to the normal. Parallel Learning Structures may be a form of Knowledge Management. information.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. in general. The most distinguishing feature of QWL program is the development of self-managing work groups which consist of multi-skilled workers. Knowledge Management involves capturing the organization¶s collective expertise wherever it resides (in databases.

· Top management support on an ongoing basis. statistical process control. It is very popular in USA in 1990s. statistical quality control. · An emphasis on measurement using both statistical quality control and statistical process control techniques. service.9 Reengineering It is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical. Reengineering focuses on visualizing and streamlining any or all business processes in the organization.TQM pushes decision making power downwards in the organization. quality.9. eliminating. provides relevant information to all employees. · An emphasis on teams and teamwork. assumes neither an upward flow of involvement nor that consensus decision making. Features that characterize TQM: · Primary emphasis on customers. ties reward to performance and increase workers knowledge and skills through extensive training. self-managed teams and task forces. including the use of quality circles. contemporary measures of performance. Self Assessment Questions . 9.8 Total Quality Management It is a long term effort that orients all of an organization¶s activities around the concept of quality. · Daily operational use of the concept of internal customers. such as cost. and speed. · Competitive benchmarking. and extensive use of employee participation. It seeks to make such processes more efficient by combining. · Continuous search for sources of defects with a goal of eliminating them entirely. Reengineering is a top-down process. · Participative management. A combination of a number of organization improvement techniques and approaches. or restructuring activities without regard to present hierarchical or control procedures. · A major emphasis on continuous learning. It is also called continuous quality improvement.

Intervention 2.11 Terminal Questions 1. Sociotechnical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. From a benefit cost analysis. __________ represents a participative approach to employee involvement in problem solving and productivity improvement. Explain Management By Objectives? 4. 9. events intended to help an organization improve its performance and effectiveness. actions. Write a short note on Total Quality Management. provides relevant information to all employees. TQM pushes decision making power downwards in the organization. Drucker 3. ties reward to performance and increase workers knowledge and skills through extensive training.1. Discuss Socio Technical Systems? 2.10 Summary An organization development intervention is a sequence of activities. 9. There are a number of reasons why a consultant should consider employing a structural intervention.12 Answers to SAQs and TQS SAQs: 1. actions. 2. It is also called continuous quality improvement. events intended to help an organization improve its performance and effectiveness. 9. structural Interventions compare quite favorably with all other alternatives. An organization development __________ is a sequence of activities. The term MBO was coined by _________ in 1964. MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. 3. Quality circle Answers to TQs: . What are the advantages of structural interventions? 3. Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement. consciously directed towards the effective and efficient achievement of organizational objectives. It consists of small group of employees who meet voluntarily to identify and solve productivity problems.

1.3 2.1 Introduction Objectives 10.4 Causes for Resistance to Change. Refer section 9.9 Answers to SAQs and TQs .2 3.7 Summary 10.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 9.8 Terminal Questions 10.2 Nature of Change 10. Self Assessment Questions 10.5 4. Refer section 9.5 Impact of Change on the Future Manager 10. MU0002-Unit-10-Managing Change in Organization Development Unit-10-Managing Change in Organization Development Structure: 10.6 Methods of Reducing Resistance to Change.Refer section 9.3 Resistance to Change 10. 10.

2 Nature of Change The term µchange¶ refers to an alteration in a system. and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. They have illustrated it by comparing an organization to an air-filled . The type of new equilibrium depends on the degree of change and its impact on the organization. organizational problems may repeat. which are major ones. It implies a new equilibrium between different components of the organization ± technology. indirectly. others. may require special change efforts. structural arrangement. Any change may effect the whole organization. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented). Thus. some parts may be affected directly. less. When change occurs in any part of the organization. However. 10. · State the methods of reducing resistance to change. 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. some parts of organization may be affected more. Organizational change is a continuous process.whether physical. some changes which are of minor type may be absorbed by the existing equilibrium. Newstrom and Davis have explained the impact of a change in any part of the organization on the total organization. 2. Thus. it disturbs the old equilibrium necessitating the development of a new equilibrium. organizational change is the alteration of work environment in an organization. 3. · Impact of change on future managers. In this dynamic and fluid environment. Hence. cope with the ongoing changes successfully in the first instance. or social. Nothing is permanent except change because change is permanently changing. job design and people. you will be able to: · Explain the meaning of organization change. organizational change may have the following features: 1. Objectives: After studying this unit. and others. and others. · Discuss the nature of change · Explain resistance to change and the factors which resist change.10. biological.

employees want to maintain a status quo. there are two sides of resistance. Similarly. we find that the shape of the entire balloon has changed. it becomes indented at the point of contact. the change in organization does not occur purely on mechanical relationship. that is. people act to establish a steady state of need fulfillment and to secure themselves from disturbance of that balance. Many companies have been forced to do so in the past. ³The Pune plant is fully saturated. the managers face the problem of resistance to change. This leads to general proposition that people and their social systems will often resist change in organizations. Thus. In order to increase its manufacturing capacity of two-wheelers. Madhur Bajaj. it has stretched slightly. Though this phenomenon will be taken later. commented. more serious upsets may occur. fear of change can be as significantly disrupting as change itself. One example of Bajaj Auto Limited is relevant here. Managing Director of Bajaj Auto. Homeostasis implies selfcorrecting characteristics of organism to maintain equilibrium as a result of change. If people resist to change. While managers as change agents want to bring changes in the organization. so is the resistance to change. When change is minor and within the scope of correcting programme. because it produces identical symptoms. but when a change is major or unusual. social systems tend to resist change because of homeostasis. In fact. adjustment is fairly routine. 10. and its basic survival may be jeopardized. In fact. In fact.´ Resistance as Benefit: . Before we trace out the reasons for résistance to change. many organizations have been forced to abandon change programmes because of resistance to such programmes. However. or they have been forced to adopt alternative strategies.balloon. However.as cost and as benefit. We wanted a new culture and new layout. like shifting of the manufacturing plants at new locations. People tend to resist many types of changes because new habits or sacrifices are required. When a finger (which represents external force) is forced against a point on the balloon (which represents the organization). if we look minutely. We shall take new workers at the new place. the organizational may not be able to introduce new phenomena in order to adapt environmental requirement. 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. Resistance as Cost: Since all changes have some cost. We saw resistance to change at the existing plant. 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. On this phenomenon.3 Resistance to Change In the management of change effectively. let us discuss whether resistance is always bad as it is generally perceived to be. they have concluded that the whole organization tends to be affected by change in any part of it. the contour of the balloon visibly changes.

On the one hand, resistance to change is costly affair, and on the other, it provides some benefits to the organization as its change agent. 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. While on negative side, the reality lies in between. Resistance to change forces management to find out this reality which helps in managing change more effectively. Thus, resistance to change provides help in managing change in two ways: 1. It may signal the need for more effective communication about the meaning and purpose of a change or need to rethink precisely how a proposed change will affect the organization and its members. 2. It also highlights real inadequacies in the proposed change and suggests better ways for developing and introducing changes. Factors in Resistance to Change People tend to evaluate the effect of change individually but they express it through group in collective form. Therefore, 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. Degree of force in resistance depends on how people feel about change. These feeling may be based either on reality or there may be emotional feeling towards the change. These feelings, either real or emotional, may be seen in the context of three types of factors: economic, psychological and social. Economic Factors People feel attached to the organization for satisfying their needs and economic needsphysiological, job security etc. precede over other needs. People may perceive that they will be adversely affected by the change in terms of their needs satisfaction in the following ways: 1. Skill Obsolescence: A change is generally meant for better methods of working which may involve new techniques, technology, etc., whenever people sense that new machinery (change) poses a threat of replacing or degrading them, they simply resist such a change. When computer was introduced in the business sector in India, it attracted a lot of resistance because of this reason. 2. Fear of Economic Loss: A change may create fear of economic loss in the sense that it may affect economic compensation adversely, reduce job options, and turn into technological unemployment. This feeling is created because people feel that those who can match the new requirements will be better off than those who cannot match.

3. Reduced Opportunities for Incentives: Employees are generally offered incentives linked to their output in the form of incentive schemes, bonus, etc. All these are well-established in the old system. Whenever there is change, people may feel that in the new system, they will have lower opportunity to earn incentives and bonus as the new system requires additional skills. Psychological Factors Psychological factors are based on people¶s emotions, sentiments and attitudes towards change. These are qualitative and, therefore, may be logical from people¶s point of view but may be illogical from the change agent¶s point of view. Major psychological factors responsible for resistance are: ego defensiveness, status quo, lack of trust in change agent, low tolerance for change, and fear of unknown. 1. Ego Defensiveness: A change may affect the ego of the people affected by the change and in order to defend their ego, people resist change. A change in itself suggests that everything is not right at a particular level. Thus, the change may be perceived as an instrument for exposing the weakness of the people. 2. Status Quo: People want status quo. i.e. they do not want any disturbance in their existing equilibrium of life and work pattern. The change initiated by the organization disturbs such equilibrium and people have to obtain another equilibrium which is a painful exercise. Therefore, everyone tries to avoid it. 3. Low Tolerance for Change: In the context of maintaining status quo, people may differ. Some people have very low level of tolerance for change and ambiguity as compared to others. Therefore, these people resist any new idea. 4. Lack of Trust in Change Agent: The effect of change is perceived in the context of change agent, that is, the person who initiates change. If people have low degree of confidence in the change agent, they show resistance to change efforts. This is the reason why labour union resists changes initiated by management because of the feeling that labour and management are two different interest groups in the organization. 5. Fear of Unknown: A change may be perceived as entering into unchartered area which is unknown. The change will bring results in future, which is always uncertain. This lack of certainty creates anxiety and stress in the minds of people and they want to avoid it. The lack of adequate information about the likely impact of change further complicates the problems. Social Factors People derive need satisfaction, particularly social needs, through their mutual compatible interactions. They form their own social groups at the work place for the satisfaction of their social needs. To the extent the satisfaction of these needs is affected by a change, people resist it. The major factors causing resistance to change are: desire to retain existing social interaction and feeling of outside interference.

1. Desire to Maintain Existing Social Interaction: People desire to maintain existing social interaction since it is a satisfying one. When there is any change, their existing social interactions are likely to be changed, which people do not want. Therefore, they resist change. 2. Feeling of Outside Interference: A change brought about by the change agent is considered to be interference in the working of people. This phenomenon is heightened if the change agent belongs to another social class, e.g., change initiated by managers affecting workers. The latter my feel that managers try to make workers an instrument for higher productivity but the outcome of this productivity will be retained by them. Organizational Resistance to Change: Not only individuals and groups within an organization resist change, even the organization itself resists many changes because of certain reasons. Many organizations are designed to be innovation-resisting. Many powerful organizations of the past have failed to change and they have developed into routines. For example, Sumantra Ghoshal, a professor of strategic leadership who is considered to be a management Guru, has commented as follows: ³Nothing fails like success; nothing fails as spectacularly as spectacular success. Whether it is IBM, Digital Equipment Corporation, Caterpillar, Zerox or nearer home-TI cycles, all these companies have been victims of corporate disease. It is called µThe Failure of Success¶. Strategies, values, resources and processes of the most successful companies have in the past ossified into clichés, dogmas, millstones and routines.´ This statement suggests that organizations tend to stabilize at a particular level and if the change efforts are not brought, these organizations start falling. The major reasons for organizational failure to change are: counting past successes, stability of systems, resource limitations, sunk cost, and inter-organizational agreement. Some of these reasons are basic while others are byproducts of those. For example, first two reasons are basic and others are by-products of the first two. 1. Counting Past Successes: A major problem before the organizations which have past success stories is how to face challenges of the changing environment. Since these organizations have achieved success by following a particular set of management practices, they become too rigid to change and they hide their failure to change in the guise of past successes. This is the reason why many old industrial houses are languishing far behind and their places are being taken away by newer organizations. 2. Stability of Systems: The organization may design a system through which it may derive many benefits. The system is stabilized and any change may be perceived as a threat by the organization itself. For example, a bureaucratic organization has certain fixed rules, prescribes rigid authority relationships, and institutes reward and punishment system. All these work in some circumstances. It a change is required in these aspects, the organization may not bring it easily because it is accustomed to a particular system.

centralized control. Thus. .defenders. Let us see what someone has said long back: ³There are three types of companies: those who make things happen. Analyzers act sometimes as defenders and sometimes as prospectors. analyzers. 4. For example. 3. In this interaction process. it may not be possible for the organization to bring necessary change.´ This is the true reflection of difference between change-initiating companies and changeresisting companies. 1. forward-looking. if new technology is adopted. and commensurate expenses on other items also. decentralized controls. and has zeal for progress. those who wonder what happened. Once the assets are acquired. organization has to pay for his services though these may not be as useful. It depends more on the style of top management. building and training for its personnel. the organization may enter into agreement with labour union about not bringing any technological change. what will happen to these assets? Naturally. If the organization is not fully equipped for meeting such demands. If it is risk-taking. it will require resources to procure machine. it may enter into agreement with other organizations over certain aspects of working. prospectors. In such a case. broad environmental scanning. the organization has to take into consideration the wishes of other organizations too. It is necessary too that other organizations also agree to the change proposal. the organization may take change programmes much more frequently. it is not necessary that his services are done away with. Analyzers: Above two are the extreme cases of choice-making modes in between the analyzers and reactors. innovative. Inter-organizational Agreements: The organization interacts with its environment. and put less emphasis on environmental scanning. It an individual is not making commensurate contribution. an organization has to adapt to its environment but the adaptation has its own cost. For example. if the change is required. 5. these can be used for specific period.3. Sunk Cost: Most of the organizations have sunk cost involved in various assets. They emphasize more on cost-effectiveness. Miles and Snow have classified them into four categories. This can be in the form of people also. Defenders: These are the firms which penetrate in a narrow market product domain and guard it. 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. Resource Limitations: No doubt. 2. and reserve some resources unutilized for future use. They go on searching new products/markets on regular basis. intensive planning. if any change is to be incorporated. Sunk cost cannot be only in terms of various physical things. and reactors. Prospectors: These firms use broad planning approaches. Based on the aggressiveness which various companies show in changing themselves. Now. those who watch things happen.

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

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

the problems can be solved at the same level.ultimate goal is to improve organizational performance by cutting production time or time to market. For example. 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. More fluid structures require that managers improve their strategic orientation.6 Methods of Reducing Resistance to Change One of the basic problems in managing change is to overcome people¶s resistance to change successfully. For this purpose.´ The newer organizational structures use term problem solving. the following efforts can be taken: 1. at the level of individual and at the level of group. 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. the effect of the change may not be as functional as envisaged by the management. even the impact of change may be dysfunctional if change is imposed upon the people by the use of formal authority. Therefore. both at the formal and informal levels. Stephen Robbins suggests that ³«« managers in virtual structures spend most of their time coordinating and controlling external relations. this is not a one-time action. As organizations must be better equipped to respond to change in their external environment. Efforts at Individual Level A change is likely to affect some people in some way. However. Problem solving now involves the people who are experts in the issue ± not necessarily those in high positions in the organization. strategic directions for the company must be identified in light of these changes. The fundamental idea in this process is to encourage the person to say something about any aspect of the change. This requires that managers think differently and teach employees to think differently. rather should be looked upon as a dialogue which continues over a period of time. They need to be adept at reading the trends in the environment and then determining what they mean specifically for their own organization. the role of formal authority in implementing a change may not be effective all the times. Locavini observes that ³the secret of real success is effective management of the emotional vulnerability that accompanies organizational change. In many cases. managers must be more skilled at reading the environment and grasping the big picture. In addition. 10. Unless this problem is overcome properly. typically by way of computer network links. It includes finding out from the members how they interpret the proposed changes and what they think about them. it can make effectively by managing resistance effectively. through group dynamics. Involvement: Involvement is a process through which those who are affected by the change are brought to understand the change. It implies explanation and then discussion of the proposed changes. that is. People always have some .´ Problem of overcoming resistance to change can be handled at two levels. It may affect only a few while others may not be affected.

and conferences. the level of resistance to change tends to decrease. Group dynamics offers some basic help in this regard. most of the times. The decision to commit oneself is a dynamic process. Obtaining Commitment: Commitment is an agreement to take an active part in the actual mechanics of the change. understanding of change increases and personal involvement in the change increases. is an important trust-building task.ideas and opinions about what is going on in the world and more specially if touches them personally. education must be a part of the manager¶s everyday activity on the job. People should be educated to become familiar with change. Thus. (iii) Group can get at the basic problem very rapidly as compared to a single individual. For using group as a means of overcoming resistance to change. meetings. The same is true of problem-solving. (ii) In group. either the subordinates do not resist or if they resist. there may be some person who may communicate to the same group. It grows slowly along with relationship. as discussed earlier. the manager can form strategies for overcoming resistance in the following manner: 1. The group contact offers some specific advantages: (i) Through groups. Getting opinions out in the open. to become effective. the leader tries to overcome this resistance by leadership process. its basic nature. he expresses it through a group. This helps in creating receptive environment in the organization. one can communicate with more people per unit of time. Though each person interprets the change individually often. 3. its process and working. it is desirable at the group level to get better acceptability of change. and indoctrinated in new relationships. helped to change attitudes. 2. For this purpose. However. the group itself should be the point of contact. instead of solving the problem at the individual level. However. 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. Based on these characteristics of group as a means of change. so that they are looked at and evaluated. Thus. Group Contact: Any effect to change is likely to succeed if the group accepts that change. Training and Psychological Counseling: The management can change the basic values of the people by training and psychological counseling. but a transformational leader can use personal reasons for change without arousing resistance. must be understood so that its effective use can be made. Efforts at Group Level Although agreement to a change can be obtained individually. . 4. it is more meaningful if it is done through group. As this process goes. Such educational process can be aided by training classes. An effective leader tries to time a change to fit the psychological needs of his followers. A manager as weak leader presents change on the basis of the impersonal requirements of the situation. more than one person is involved in the 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. sometimes. They must be taught new skills. Usually. Commitment to take part in the change programme can be obtained in private from each individual.

10. The laboratory method provides a setting where group processes can be studied intensively. It implies a new equilibrium between different components of the organization ± technology. and sensitivity or T-group training. psychological factors. mere participation may not help. For instance. Research studies also support this aspect. Participation: Participation helps to give people involved in the organizational change and inculcate a feeling of importance. The organization must regard the participation as meaningful and share the results of the change with its members. _________ is the alteration of work environment in an organization. It purports how the results are. sentiments and attitudes towards change. job design and people. 2. Even if only some of the members are affected by the change. 2. It makes people feel that the organization needs their opinions and ideas and is unwilling to go ahead without taking them into account. Changes may be influenced by external and internal factors. implicit. Resistance can be overt. 3. It would be prudent for management to take labour representatives into confidence before implementing any change. social factors.such aspects as the reasons for change. or deferred. They must be made a party to the change rather than an agent for resistance to change.Through the group contact. psychodrama. and how the benefits of the meaningful and continuous dialogue are necessary. People tend to resist many types of changes because new habits or sacrifices are required. This is more important in the case of workers who themselves treat a separate group and do not identify with the management. 3. many things about change can be made clear. Free flow of information helps people to understand the real picture of the change and many misunderstandings may be avoided. It is easiest for management to deal with resistance when it is overt and immediate. It implies a new equilibrium between different components of the organization. benefits of change.7 Summary Change is inevitable. However. a change is proposed and employees quickly respond by voicing . structural arrangement. and how members contribute. __________ are based on people¶s emotions. Such training techniques include role playing. group resistance and vested interests. immediate. Such training techniques provide understanding of behaviour. _________ helps to give people involved in the organizational change and inculcate a feeling of importance. Organizational change is the alteration of work environment in an organization. Economic factors. taking whole of the group into confidence helps in maintaining a cooperative attitude. thereby the people can build up the climate based on mutual trust and understanding which are essential for bringing organizational changes successfully. Group Dynamics Training for Change: Group dynamics also helps in providing various training programmes for accepting and implementing change. Those people who are directly affected by the change should be given opportunity to participate in that change before the final decisions are reached. Self Assessment Questions 1.

French and Cecil H. threatening to go on strike.. Bell.complaints. 10. Reference: · Wendell L. Organizational change 2. N. Refer section 10. through group dynamics. · J. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups.Singh. Regal Publications New Delhi.management of Organization Change. Refer section 10. Organization Development & Change. · Harigopal K.. . Explain the nature of change? 2. Problem of overcoming resistance to change can be handled at two levels.Response Books.9 Answers to SAQs and TQS SAQs: 1. P. Discuss the methods of reducing resistance to change. P.2 2. Principles and Practices. both at the formal and informal levels. 10. engaging in a work showdown.6. New Delhi. Participation Answers to TQs: 1. or the like.4 3. Organization Development. that is. Refer section 10. Modern Organization Development and Change.8 Terminal Questions 1. Organization Theory and Design. Thomson South Western. New Delhi. Why do organizations resist change? 3. at the level of individual and at the level of group. Prentice-Hall of India Private Limited. eighth edition. Thomson · Daft Richard L. Psychological factors 3. Jain. Jr. · Cummings & Worley.

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

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