BHARATHIAR UNIVERSITY

MBA (HR)

COURSE 2.7

ORGANIZATIONAL
DEVELOPMENT AND
CHANGE
(Notes For Examination)

Prepared By
Dr Abbas T. P
drtpabbas@gmail.com

1|Page 2.7 – Organizational Development and Change

 2.7. ORGANIZATIONAL DEVELOPMENT AND CHANGE
UNIT I
Q.1. ORGANIZATIONAL DEVELOPMENT
Organization development (OD) is a deliberately planned, systematic,
organization-wide process of organizational change based on behavioural
science research and theory to increase an organization's effectiveness
and/or efficiency
Definition of Organization Development
Organization development, according to Richard Beckhard, is defined as:
1) A planned effort
2) Organisation-wide
3) Managed from the top
4) To increase organisation effectiveness and health
5) Through planned interventions in the organisation’s ‘processes’, using
behavioural science knowledge
Objective of OD
1) To increase the level of inter-personal trust among employees.
2) To increase employees' level of satisfaction and commitment.
3) To confront problems instead of neglecting them.
4) To effectively manage conflict.
5) To increase cooperation among the employees.
6) To increase the organization's problem solving.
7) To put in place processes that will help improve the ongoing operation
of the organization on a continuous basis.
History of Organization Development
As currently practiced, OD emerged from five major stems, as shown below.
a. Laboratory Training (The T-Group): This stem of OD established
laboratory training, or the T-group - a small, unstructured group in which
participants learn from their own interactions.
b. Action Research/Survey Feedback: This second stem refers to the
processes of action research and survey feedback.
c. Participative Management: Designed around group methods of
decision making and supervision, participative group system fosters high
degrees of member involvement and participation. Work groups are highly

2.7 – Organizational Development and Change 2|Page

involved in setting goals, making decisions, improving methods, and
appraising results. Communication occurs both laterally and vertically.
d. Quality of Work Life (QWL): The quality-of-work life aimed at better
integrating technology and people. These QWL programmes generally
involved joint participation by unions and management in the design of
work and resulted in work designs giving employees high levels of
discretion, task variety, and feedback about results.
e. Strategic Change: The strategic change stem is a recent influence on
OD's evolution. As organizations and their technological, political, and
social environments have become more complex and more uncertain, the
scale and intricacies of organizational change have increased. This trend
has produced the need for a strategic perspective from OD. Strategic change
involves improving the alignment among an organization's environment,
strategy, and organization design.
Models and Theories of Planned Change
Organization development is planned change in an organizational context.
There are several models of planned change, the popular models are
explained below:
a. Kurt Lewin Model
Lewin's model is based on the principles that before actually introducing a
change, organization needs to be prepared for change, motivated to change
and stabilized and integrated the change into behaviours of organization.
Accordingly, Lewin's change model includes three-steps in its process:
unfreezing, changing and refreezing. The various stages are:
Stage 1 - Unfreezing: Creating motivation and readiness to change
through:
a) Disconfirmation or lack of confirmation.
b) Creation of anxiety.
c) Provision of psychological safety.
Stage 2 - Changing: Helping the client to see things, judge things, and
react to things differently based on a new point of view obtained through:
a) Identifying with a new role model, mentor etc.
b) Scanning the environment for the new relevant information
Stage 3 - Refreezing: Helping the client to integrate the new point of view
into:
a) The total personality and self-concept.
b) Significant relationships.

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b. Greiner’s Model
According to this model, change occurs in terms of certain sequential stages.
The external stimulus pressurizes the management to initiate change
process. The management in response to stimulus is motivated to take
actions to introduce change in organization. Following the actions, the
various change stages occur in a sub sequential manner such as diagnosis
of the problem, invention of a new solution, experimentation with new
solution and reinforcement from positive results.
c. Burke-Litwin Model of Organizational Change
This model shows how to create first order and second order change.
In first order change some features of the organization change but the
fundamental nature of the organization remains the same. In the first order
change, the management practices and system causes change in work unit
climate, which changes motivation and in turn, individual and
organizational performance.
In the second order change, we must change mission, strategies, leadership
styles, and organizational culture. Interventions directed towards these
factors transform the organization and cause a permanent change in the
organizational culture, which produces change in individual and
organizational performance.
d. Porras and Robertson Model of Organisational Change
The basic principle of this model is that OD interventions alter features of
the work setting causing changes in individual’s behaviours, which in turn
lead to individual and organizational improvements.
The work settings play a central role in this model and consist of four
factors: organizing arrangements, social factors, physical settings and
technology. For example, OD interventions that focus on goals, strategies
and rewards will affect organizing arrangements. Interventions that focus
on the culture, management styles and interaction process will affect social
factors. Interventions that focus on job design and work flow design will
affect technology.
e. Leavitt’s Model
Leavitt's OD model is founded on the interactive nature of the various sub-
systems in a change process. In an organizational system, there are four
interacting subsystems - task, structure, people and technology. Due to their
interacting nature, change in anyone of the sub-systems tends to have
consequences for the other sub systems also. Change in anyone of the
subsystems can be worked out depending upon the situation.

2.7 – Organizational Development and Change 4|Page

Q.2. SYSTEM THEORY OF OD
Organizational Development
Organization development (OD) is a deliberately planned, systematic,
organization-wide process of organizational change based on behavioural
science research and theory to increase an organization's effectiveness
and/or efficiency
Definition of Organization Development
Organization development, according to Richard Beckhard, is defined as:
1) A planned effort
2) Organisation-wide
3) Managed from the top
4) To increase organisation effectiveness and health
5) Through planned interventions in the organisation’s ‘processes’, using
behavioural science knowledge
Objective of OD
1) To increase the level of inter-personal trust among employees.
2) To increase employees' level of satisfaction and commitment.
3) To confront problems instead of neglecting them.
4) To effectively manage conflict.
5) To increase cooperation among the employees.
6) To increase the organization's problem solving.
System Theory of OD
Organizations are open system of which the nature, dynamics and
characteristics are well known. In case of organization wide change, meeting
the challenge posed by the organization change often means not doing
things piecemeal. In order to be successful, change usually must be
organization wide.
From the perspective of managing change, a system may be defined as being
an organized assembly of components i.e. subsystems, which are related in
such a way that the behaviour of any one individual subsystems will
influence the overall status of the system.
Changes in any given system will affect both its internal working as well as
related external systems.
Characteristics of OD System
The characteristics of an OD system are:

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 1. Input-process-output Mechanism: The system takes inputs from the
environment in various forms such as energy, information, money,
people and processes. After taking the input, they are processed and
the transformed products are delivered to the environment in the form
of outputs.
2. Every System is delineated by a Boundary: This means that each
system has some boundary to differentiate the inside and outside of
the system. However, boundaries of an open system are permeable,
which permits exchange of information, resources and energy between
system and environment.
3. Open system have purposes and goals for their existence
Components of OD System
The System Model of change describes the organization as six interacting
variables that could serve as the focus of planned change:
 people,
 culture,
 task,
 technology,
 design, and
 strategy
The people variable applies to individuals working for the organization.
The culture variable reflects the shared beliefs, values, expectations, and
norms of organizational members.
The task variable involves the nature of work itself.
The technology variable encompasses the problem solving methods and
techniques used and the application of knowledge to various organizational
processes. It includes the use of information technology, robots, and other
automation, manufacturing process tools and techniques.
The design variable is the formal organizational structure and its system of
communication, control, authority, and responsibility.
The strategy variable comprises the organizations planning process and
includes decisions about how the organization chooses to compete. It
typically consists of activities undertaken to identify organizational goals
and prepare specific plans to acquire, allocate, and use resources in order to
accomplish those.
Theories of Open System
Open system theory has two major variants which are:

2.7 – Organizational Development and Change 6|Page

 a) Socio-technical system theory (STS) and
b) Open system planning.
According to Socio-technical system theory, organizations are comprised of
two independent systems, a social system and a technical system. A change
in one system definitely affects the other.
Open system planning explains that:
1. Scanning the environment is very important in order to determine the
expectations of external organizations and stakeholders.
2. Develop scenario of possible futures both realistic and ideal.
3. Develop an action plan to achieve the desired result.
Mostly OD practitioners are engaged in redesigning projects by using a
combination of socio-technical system theory and open system planning.
Other Theories of OD
Other theories of OD are grouped into the four broad categories:
1. Life cycle: A life cycle model depicts the process of change in an entity
as progressing. It is done through a necessary sequence of stages. The
specific contents of these stages are prescribed by an institutional,
natural, or logical program.
2. Teleology: A teleological model views development as a cycle of goal
formulation, implementation, evaluation, and modification of goals.
These all were based on what was learned by the entity. This sequence
of developing and modifying goals emerges through the purposeful
social construction among individuals within the entity.
3. Dialectical: In dialectical models of development conflicts emerge
between entities embracing opposing thesis and antithesis. This
process collides to produce a synthesis, which in time becomes the
thesis for the next cycle of a dialectical progression. At the same time,
confrontation and conflict between opposing entities generate this
dialectical cycle.
4. Evolutionary theories: An evolutionary model of development
consists of a repetitive sequence of variation, selection, and retention
events. These events occur among entities in a designated population.
This evolutionary cycle was generated due to competition for scarce
environmental resources between entities inhabiting a population.

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UNIT II
Q.3. OD INTERVENTION
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, their
work group, and organizational culture.
Most OD interventions are plans or programmes comprised of specific
activities designed to effect change in some aspects of an organization.
Numerous interventions have been developed over the years to address
different problems or create various results. However, they all are geared
toward the goal of improving the entire organization through change.
Classification of OD Interventions
OD interventions can be classified on two bases:
 Approach adopted in using OD interventions and
 Target of OD interventions.
On the basis of approach adopted in using OD interventions, these are
classified into two categories:
 Process interventions and
 Structural interventions.
Process interventions are those which emphasize process to accomplish a
change.
Structural interventions involve an adjustment or change in the
organization’s structure to accomplish changed goals.
Some common process and structural OD interventions are:
Process OD Interventions Structural OD Interventions
Sensitivity training Job redesign
Team building Work schedule option
Survey feedback Process consultation
Behaviour modification Management by objectives
Grid organization development Collateral organization
Career planning Decision centres
Job expectation technique
Organizational renewal process

On the basis of target of OD interventions, these can be designed to improve

the effectiveness of

2.7 – Organizational Development and Change 8|Page

1. Individual OD interventions.
2. Team building OD interventions.
3. Intergroup OD interventions
4. System wide OD interventions.
1) Individual Interventions:
Individual interventions mainly focus on training or educational
experiences which are aimed at individuals in a change effort. Individual
OD interventions mainly includes:
T-Group Training: The T-Group provides participants, 10 to 15 persons,
with an opportunity to learn about themselves, their impact on others and
how to function more effectively in group and interpersonal situations.
Usually there is no leader, no planned agenda and stated goal. The trainees
can be given any assignment like case study, role play, etc., that leads the
group interaction. The participants would be encouraged to be thoughtful
and understanding towards the feeling of others.
Behaviour Modelling: This is an approach that demonstrates desired
behaviour, gives trainees the chance to practice and role-play those
behaviours and receive feedback
Life and Career Planning Activities: Activities focused on life and career
objectives and how to go about attaining them. Includes goal setting,
assessment and training.
Coaching and Counselling Activities: The consultant works with org.
members to
a) define learning goals;
b) learn how others see their behaviour, and
c) learn new behaviours to better achieve their goals.
Key features are non-evaluative feedback and joint exploration of
alternative behaviours.
Instrumented Training: Instruments are usually used to test abilities,
attitudes, personality, styles or behaviour. Psychological tests,
questionnaires, projective techniques, etc., are called instruments. Such
instruments can be used for training. Instruments provide significant data
which the participants can use to enhance their insights, and to prepare
plans to experiment with new behaviour.
Team Building Interventions: A team is defined as a form of group with
small number of people with complementary skills who are committed to a
common purpose, set of performance, goals and approach which they hold

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themselves mutually accountable.
Team Building Intervention activities designed to enhance the effective
operation of system teams. These activities focus on task issues such as the
way things are done, the skills and resources needed to accomplish tasks,
the quality of relationship among the team members or between members
and the leader, and how well the team gets its job done. In addition, one
must consider different kinds of teams such as formal work teams,
temporary tasks force teams, newly constituted teams, and cross-functional
teams.
Team Building Interventions include:
Role Analysis Technique: Role analysis technique intervention is
designed to clarify expectations of team members to enhance team
effectiveness. Many times, the role incumbent (team members) may not
have clear idea of the behaviour expected from him/her and also what others
can do to help incumbent to fulfil his/her role. The concept was
Role negotiation is a small group process in which an individual exchanges
messages with another person, outlining the behavior that he/she views as
helping or hindering his or her own productivity at work. After discussing
and clarifying this feedback, dyads can negotiate agreements based on an
equitable deal.
Interdependency exercise This intervention is useful if team members
have expressed a desire to improve cooperation among themselves and
among their units. This intervention helps to get acquainted, to surface
problems and to provide information. This helps to clarify inter dependable
joints of the job and cooperation among the team members can work out
interdependencies, efficiently to be more productive and effective.
The Appreciations & concerns Exercise - If the diagnosis suggests one
of the deficiencies in a team is lack of expression of appreciation and not
dealing with concerns or imitations of a group. Then this intervention can
be of help. The exercise starts when facilitator asks the team members to
list down two to three appreciations for each member & two to three
concerns too. The face to face discussion is carried
Responsibility Charting: - This technique helps to clarify who is
responsible for what in various decisions and actions in a team. Many times
what looks simple on the paper may be complex in a reality. Different tasks
are carried out by a team and every team member would have different
responsibility in those tasks. Someone would be leading one task, the other
may be approving the task, and still others contribute in a task but not at a
responsible position. If roles are not clear then it can lead to ambiguity can
lead to ineffective team functioning

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Visioning: - The concept was developed by Ronald Lippit and represents
and intervention where team members develop or describe of their vision of
what they want their organization to be like in future may be in a specified
time frame
Intergroup OD Interventions
Intergroup OD intervention activities designed to improve the effectiveness
of interdependent groups- group that must work together to produce a
common output. They focus on joint activities and the output of the group
as considered as a single system rather than as two subsystems. When two
groups are involved the activities are designated intergroup or interface
activities; when more than two groups are involved, the activities are called
organizational mirroring.
Intergroup interventions include a better way of working together,
increased recognition of interdependence, less competition & more
collaboration.
Intergroup team building: - This intervention is also known as
confrontation. In this intervention, the consultant must intervene to open
communication between two groups. It starts with intergroup team building
meeting.This meeting involves following steps. :
1. Each group prepares the lists under the headings -
•How do we see ourselves?
•How do we think other department sees
•How do we see other department?
2. Then the group meets and discusses the list with one of the team
member as spokesperson.
3. Then the group separately meets to discuss discrepancies &
feedback. It allows correcting the perception & behaviors.
4. Cross groups are made with members from each department and
discuss diagnosis of the lists & developing conflicfrreducing
alternative. Together groups develop action plans for solving
problems.
5. A follow up meeting is scheduled to evaluate the progress.
Organization Mirror interventions: - It is a set of activities in which a
particular organizational unit called as host group gets feedback from other
groups about how it is perceived, for this purpose meeting is conducted. OD
consultant gathers the information through questionnaires beforehand; to
get sense of problems. The outsider’s fish bowls the discussion. (Fish bowl is
where group talking is in the inner circle & one which listens is on the outer

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side) The host group listens and after the entre discussion seeks for
clarification if any. Subgroups are formed of host group members and key
visitors to identify^specific improvement that will increase operating
efficiency. A summar^r€port is prepared that outlines action plans. After
certain time interval follow up meeting is conducted.
Third party peacemaking: It is based on the fact that each group must
have to confront about the exiting conflict. Confrontation is done by third
party i.e. consultant. The third party must be able to diagnose conflict
situations. A diagnostic model based on four elements is
1) The conflict issue
2) the precipitating circumstances in which conflict occurs.
3) The conflict relevant acts of the principals
4) consequences of the conflict.
Thus, with the help of these four elements diagnosis or source of conflict can
be known. This helps in understanding & developing conflict resolution
action plans.
System wide Interventions: -
Also called as techno structural interventions refers to range of
interventions aimed at improving organizational effectiveness through
changes in the task, structural, technological & goal processes of an
organization.
Socio technical System (STS): - According to this theory, organizations
are comprised of two interdependent systems, a social system and a
technical system any change in one system can affect the other system. To
achieve high productivity and employee satisfaction, an organization must
optimize both systems. These optimization efforts have led foundation to
efforts of work redesign and organization restructuring.
Self-managed work teams: - It is also alternatively called as self
regulating work groups, cross-functional teams, autonomous work groups,
high performance teams etc. Self-managed work team is an autonomous
group whose members decide how to handle and manage their tasks. The
team comprises of members from different parts of an organization and with
different skills and backgrounds. Top management gives authority to such
teams to their group processes. Structure of their team, the requirements of
their teams and objectives to achieve them. Diverse nature of team helps to
work effectively. There is increased responsibility on such teams as they
have to set working schedules, prepare budget, create job assignments,
develop performance goals, hire or select team members, assess the

2.7 – Organizational Development and Change 12 | P a g e

performance & have control an all group processes.
Work Redesign: - This model is an OD approach as it comprises of
diagnosis, participation, and feedback and group development by
redesigning the jobs
Survey research and feedback: Surveys are conducted for improvement.
It is also considered as a communication tool. It helps to facilitate dialogue
between employees and top management. Surveys help to assess the current
state of an organization. It can also identify various problems that lead to
less motivation or dissatisfaction. Survey research and feedback is a process
in which OD consultant and members of an organization collaboratively
collect the data and analyze them for proactive organizational change.
MBO: - Management by objectives is a process of goal setting. It integrates
individual goals with organizational goals. This approach includes improved
performance, effective communication and participation which enhance
morale and job satisfaction. MBO believes that if people are involved in
setting goals, they will work harder and perform better.
Total Quality Management: -''It is continuous quality improvement. It
involves implementation of number of organization improvement
techniques like quality circles, statistical quality control, statistical process
control; self managed teams, quality management systems and extensive
use of employee participation
Quality Circle: - Quality circles are inherently problem solving & goal
setting & with aim of enhancing product quality. Quality circles consist of a
group of seven to ten employees, across the units, who meet regularly to
analyse and suggest quality improvement plans. These suggestions are
forwarded to steering committee for further action plan. The steering
committee approves it and then action plan is implemented. The follow up
meeting is conducted thereafter
Quality of work life (QWL): Is considered to be a wide application of
organizational improvement efforts. It attempts to restructure various
dimensions of an organization. QWL is also characterized by employee
participation. It also acts as a problem solving mechanism.QWL projects
differ from organization to organization. But the features of QWL project
remains constant
Reengineering -called Business process reengineering (BPR) is a system
wide change approach focusing on basic processes of an organization. It can
be defined as fundamental rethinking or redesigning of processes to achieve
improvement or change in performance. Thus reengineering is more of
restricting and is of continuous nature. For successful implementation of
BPR, it requires an effective team

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Learning Organization: - It is a system wide change program that
emphasizes on continuous self-directed lemming that will lead to positive
change and growth of individual, team and organization. In the age of
globalization, competition and new internet technology, organizations that
are flexible and able to adapt according to challenges can also sustain.
Learning organizations are responsive constantly and can develop own
technology or products according to changing competition
Types of OD interventions: -
1) Diagnostic activities: - These are fact finding activities designed to
find the current state of a client system.
2) Team building activities: - These are designed to enhance effective
operation of teams. These can focus on task-related issues such as
the way things are done, necessary skills and resources, relationship
quality between team members and between team and leader, and
effectiveness. In addition, structural issues must be addressed (the
nature of the team). “Outdoor Adventure” teambuilding
programmes are currently very popular
3) Intergroup activities: - -These are the activities designed to improve
effectiveness of interdependent groups, ie those that must cooperate
to produce a common output. These focus on joint activities and the
output of the groups as a single system rather than 2 subsystems
4) Survey feedback activities: - These activities relies gathering
information that is used in understanding problems or
opportunities. Activities use questionnaires to generate information
which is then used to identify problems and opportunities
5) Education and training activities: - Activities designed to improve
individual’s skills, abilities and knowledge. Several activities and
approaches are possible, depending on the nature of the need
6) Techno structural or structural activities: - Activities designed to
improve the effectiveness of organizational structure & Job design.
Activities could include either: Experimenting with new
organizational structures and evaluating their effectiveness i.t.o.
specific goals or Devising new ways to bring technical resources to
bear on problems
7) Process consultation activities: - Activities that help the client
“perceive, understand and act upon process events which occur in
the client’s environment”. The client gained insight into the human
processes in organisations and learns skills in diagnosing and
managing them. Emphasis on communication, leader and member

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 roles in groups, problem solving and decision making, group norms,
leadership and authority and intergroup cooperation and
competition
8) Grid organisation development activities: - A six - phase model
designed by Blake and Mouton involving the whole organisation. the
model starts with upgrading individual manager’s skills and
leadership abilities, moves to improvement activities, then to
intergroup relations activities. Later phases include corporate
planning for improvement, developing implementation tactics and
finally evaluation of the change in organisation culture. A long term
process lasting up to 5 years
9) Third party peacemaking activities: - Activities designed and
conducted by skilled consultant to manage inter personal conflict in
the process of organizational change. Intervention by a skilled third
party aimed at helping 2 organizational members manage their
interpersonal conflict. Based on confrontation and an understanding
of conflict and conflict resolution processes
10) Coaching & Counseling activities: - The consultant works with org.
members to a) define learning goals; b) learn how others see their
behavior, and c) learn new behaviors to better achieve their goals.
Key features are non-evaluative feedback and joint exploration of
alternative behaviors
11) Life & Career planning activities: - Activities that enable
individuals to focus on their life and career objectives & way to
achieve them. Includes goal setting, assessment and training
12) Planning & goal setting activities: - Activities that include goal
setting, problem solving, discrepancies if any to achieve objectives.
13) Strategic Management activities: - Activities Helping key policy-
makers reflect on the org’s basic mission and goals, environmental
demands, threats and opportunities. Engaging in long-range
planning of both a reactive and a proactive nature. Attention is
focused outside of the org. and to the future.
14) Organization Transformation activities: - Activities focusing on
large scale system changes that will fundamentally transform the
nature of the organization. Virtually every aspect of the org. is
changed: structure, management philosophy, reward systems, work
design, mission, values and culture.
Each of the above mentioned interventions includes many activities. Some
of the activities are problem specific & some are process specific.

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Some of these interventions are:
Target Interventions
Individuals Life and career planning
Role analysis technique
Coaching and counselling
Sensitivity training
Skill development
Problem solving planning and goal setting
Dyads Process consultation
Third Party peace making
Team and Team building
groups Family T-group
Survey feedback
Process consultation
Role analysis technique
Inter group Inter group activities
relations Organizational mirroring
Techno structural interventions
Process consultation
Third party peace making at group level
Survey feedback
Total Techno structural interventions
organization Confrontation meetings
Strategic planning activities
Survey feedback

Team Interventions
The OD team interventions involve working with the cross-functional self-
managed and high performance team.
The most important and significant team intervention in OD is
teambuilding activities. The goals of teambuilding interventions are the
improvement and increased effectiveness of various teams within the
organizations.
Team Building Interventions include:
a) Formal Group Diagnostic Meeting: The purpose of the formal
group diagnostic meetings is to take stock of “where the group is
going” and how the group doing, its strengths and the problems to be
identified and then planning for a future course of action.

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 b) Formal Group Team Building: The formal group teambuilding
meetings have the goal of improving the team’s effectiveness through
the better management of task demands, relationship demands and
group processes.
c) Process Consultation Interventions: The process consultation
model is similar to the team building interventions except that the
process consultation places greater emphasis on diagnosing and
understanding process events.
Inter Group Interventions
The focus of inter group interventions is on improving intergroup relations
and the goals of these activities are to increase communications and
interactions between works related groups to reduce the amount of
dysfunctional competition.
Third Party Peace Making Interventions
OD interventions can be used when two persons are in conflicts. R.E Walton
proposed a diagnostic model of interpersonal conflict based on four basic
elements:
1. The conflict issue.
2. The precipitating circumstances.
3. The conflict relevant acts of the principals.
4. The consequences of the conflicts.
Intervention tactics of the third party consist of structuring confrontation
and dialogue between the principals. The third party will intervene directly
and indirectly in facilitating dialogue between the principals. He would be
setting time boundaries on the interaction.
Comprehensive OD Interventions
Comprehensive interventions involve the whole system. They involve a
collaborative effort between the client organizations and the consultants in
both diagnosis and interventions. However, it must fit the realities being
experienced by the client system and must engage the cooperation and
goodwill of client system members

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Q.4. PLANNED CHANGE
Organizational change is the process by which the organizations move from
their present state to desired state in order to increase their efficiency and
effectiveness.
Organizations that learn and cope with change will thrive and flourish and
others who fail to do so will be wiped out.
The ultimate objective of organizational change is to find new and improved
methods of using the human and non-human resources to create value and
improve returns to its stakeholders.
The change may be due to either external or internal forces.
External forces affect the organizations both directly and indirectly. A few
of these factors are:
 Technology
 Marketing Conditions
 Social Changes
 Political Forces
Internal forces are too many and it is very difficult to list them
comprehensively. Important ones are:
 Nature of the Work Force
 Change in Managerial Personnel
 Deficiencies in Existing Management Structure
 To Avoid Developing Inertia
Managing Planned Change
A planned change is a change planned by the organization. Through
planned change, an organization can achieve its goals rapidly.
The basic reasons for planned change are:
 To improve the means for satisfying economic needs of members
 To increase profitability
 To promote human work for human beings
 To contribute to individual satisfaction and social wellbeing.
The planned change process comprises basically the following three steps:
1. Planning for change
2. Assessing change forces
3. Implementing the change

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1. Planning for Change
The first step in the process of change is to identify the need for change and
the area of changes in order to find out whether it is a strategic change,
process oriented change or employee oriented change. Once this need is
identified, the following general steps can be taken:
a) Develop New Goals and Objectives: The manager must identify
the new outcomes the organization wish to achieve. This may be a
modification of previous goals due to changed internal and external
environment or it may be a new set of goals and objectives.
b) Select an Agent of Change: The next step is that the management
must decide who will initiate and oversee this change. One of the
existing managers may be assigned this duty or even sometimes
specialists and consultants can be brought in from outside to suggest
the various methods to bring in the change and monitor the change
process.
c) Diagnose the Problem: The person who is appointed as the agent
of change will then gather all relevant data regarding the problem
where the change is needed. This data should be critically analyzed
to pinpoint the key issues. Then the solutions can be focused on
those key issues.
d) Select Methodology: The next important step is selecting a
methodology for change which would be commonly acceptable and
correct. As the human tendency is to resist the change, employee's
emotions must be taken into consideration when devising such
methodology.
e) Develop a Plan: After devising the methodology, the next step will
be to put together a plan as to what is to be done.
f) Strategy for Implementation of the Plan: In this stage, the
management must decide on the 'when', 'where' and 'how' of the
plan. This include the right time of putting the plan to work, how
the plan will be communicated to the employees in order to have the
least resistance and how the implementation will be monitored.
2 Assessing Change Forces
The change process will never be successful unless the cooperation of
employees is ensured. Therefore the management will have to create an
environment in which change will be amicably accepted by people. If the
management can overcome the resistance, the change process will succeed.
In a group process, there are always some forces who favour the change

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(called driving forces) and some forces that are against the change (called
restraining forces).
Driving Forces are those forces, which affect a situation by pushing in a
particular direction. These forces tend to initiate the change and keep it
going.
Restraining Forces act to restrain or decrease the driving forces.
Equilibrium is reached when the sum of the driving forces equals the sum
of the restraining forces.
There are three types of situations:
a) If the driving forces far out weight the restraining forces, management
can push, driving forces and overpower restraining forces.
b) If restraining forces are stronger than driving forces, management
either gives up the change programme or it can pursue it by
concentrating on driving forces and changing restraining forces into
driving ones or immobilizing them.
c) If driving and restraining forces are fairly equal, management can
push up driving forces and at the same time can convert or immobilize
restraining forces.
Thus, to make the people accept the changes, the management must push
driving forces and convert the restraining forces.
3. Implementing Change
Once the management is able to establish favourable conditions, the right
timing and right channels of communication have been established, the plan
will be put into action. After the plan has been implemented there should
be evaluation of the plan which comprises of comparing actual results to the
standards.
Models and Theories of Planned Change
Organization development is planned change in an organizational context.
There are several models of planned change, the popular models are
explained below:
1. Kurt Lewin-Unfreezing, changing and refreezing model.
2. Greiner’s Equential model.
3. The Burke–Litwin Model of Organizational change.
4. Porras and Robertson Model of Organizational change.
5. Leavitt's System model

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UNIT III
Q.5. MANAGING THE OD PROCESS - ACTION RESEARCH
Introduction
Action Research is a process which serves as a model for most OD
interventions. Kurt Lewin is typically credited with bringing this
methodology to the mainstream and to organizations specifically.
It was the belief of Lewin and his contemporaries that in order to
understand and change social conditions, those involved in creating those
conditions must be involved in the process.
Thus, one of the main themes of action research is enactment of social
change. For this reason, action research is at the core of the OD practice.
Action Research – Definition
Action research is the process of systematically collecting research data
about an ongoing system relative to some objective, goal, or need of that
system; feeding these data back into the system; taking actions by altering
selected variable within the system based both on the data and on
hypotheses; and evaluating the results of action by collecting more data.
Action Research – The Process
The seven phases of action research are
1. Entry – beginning to develop the client/consultant relationship and
validating the fit between both parties
2. Contracting – determining whether or not to proceed with the
consulting relationship and negotiating any final conditions of the
engagement “contract”
3. Data Gathering and Diagnosis – collecting the necessary data and
analyzing it
4. Feedback – presenting the findings, analysis, and any preliminary
recommendations to the client organization
5. Planning Change – identifying specific courses of action that
address the client situation and developing an action plan for
implementation
6. Intervention – applying specific solution sets to the client
organization
7. Evaluation – assessing project results and determining future
courses of action, ranging from project closure to new contract

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 development activities
Action Research – An Example of OD
To illustrate the value of action research to the practice of OD, consider an
areal-life example of how the action research approach can be used.
This account details specific actions taken by both the client and consultant
during each of the seven phases of a nine-month consulting engagement.
The primary client group in this example is an IT organization within a
regional insurance agency, and the initial presenting issue was a lack
of collaboration and teaming across the organization.
1. Entry: The consultant arranged for an initial phone conversation with
the client sponsor. The consultant successfully gained some clarity on the
presenting problems and primary concerns of the client. The client
suggested that there was a lack of collaboration and teaming across the
organization. The client also expressed a desire to have the consultant
further assess the situation and recommend specific strategies for
improving this unproductive work culture.
2. Contracting: The Contracting phase of action research can begin as soon
as the client and consultant agree to work together. In this case, it began as
soon as the two reconnected and discussed the actual scope of the project.
The foundation of the engagement contract included the following:
a. Project objective – design and implement customized management
training and development programmes that improve management skills
b. Current scope – management training and development for the seven
members of the management team only
c. Potential future scope – broader training programs for non- managers
as well as organization realignment or business process redesign initiatives
d. Project approach – phased approach including high-level activities,
such as assessment, feedback, and intervention, over a specific timeline and
with key project milestones and deliverables. Requires active participation
and involvement from key members of the client organization
3. Data Gathering and Diagnosis: Having defined the scope of the project
during Contracting, the consultant and client sponsor were now prepared to
begin gathering data. In true action research form, both parties played an
active role in completing this task. The client sponsor provided key
organization data to the consultant to help him understand the
environment, and then the consultant initiated more targeted data
gathering activities

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4. Feedback: When the diagnosis was complete, the consultant actively
engaged the client and the entire management team, in the feedback
process. For the change to be successful, it is vital to share these findings
with the client and guide them in determining the next steps.
The consultant presented a summary report of the findings as well as his
conclusions and recommendations for moving forward. In general, the
findings did support the original argument that there was a lack of
collaboration and team identity within the organization.
Once presented with these findings, all of the managers contributed to an
open dialogue about the information and possible strategies to address the
situation.
5. Planning Change: The goal of the Planning Change phase is to create
an action plan that will guide the next phase of the process, Intervention.
In this case, the management team identified two levels of intervention: one
focused on the management team and the other focused on the individuals
within that team. The team- based intervention was a management training
program that involved a comprehensive curriculum of courses to address
their specific developmental needs.
The second intervention was aimed more directly at the individual
managers and was intended to support the team training experience.
Towards this end, the consultant co-developed personal action plans that
focused on one or two critical leadership skills with each manager
6. Intervention: The Intervention phase is where the plan is executed and
the solution is actually implemented within the client organization.
During the intervention, the consultant facilitated several sessions to
encourage the learning process. Topics ranged from recognizing great
leadership to understanding how to become a more effective leader and were
intended to help each of the managers improve in the key areas agreed to
during the feed-back process.
7. Evaluation: In an informal manner, evaluation occurred during every
phase of work during this engagement. In addition, the consultant
performed a more formal review of the project. The consultant developed a
standard protocol for measuring the success of each activity and then
interviewed each of the managers to gather their thoughts and perceptions.
Based on these responses, the consultant synthesized the data and
presented it back to the client for review. The consultant also presented
some basic recommendations for prioritizing future activities.

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Q.6. OPERATIONAL COMPONENTS OF OD
OD is a planned process of developing an organisation to be more effective
in achieving its desired goals. It focuses on developing systems, structures
and processes in the organisation to improve organizational effectiveness.
This requires a well-designed OD programme and its proper management.
The OD process/programme has three major components i.e.
a. Diagnosis: Diagnosis refers to collecting data about organisation’s total
system, its processes and culture.
b. Action: Action, also called as intervention, consists of set of activities
designed and implemented to improve organisation’s functioning.
c. Program management: The programme management includes
planning, execution and evaluation of various activities initiated to produce
change or improve organizational effectiveness.
Components of OD process
The basic components of OD process have been discussed in detail as below:
a. System Diagnosis
An OD programme starts with diagnosis of the organisation as a whole, its
subunits and processes to obtain information about status quo, existing
problems and opportunities and consequences of actions.
Diagnostic activities focus on two broad areas:
i. The diagnosis of various subsystems which may be natural teams such
as top management, production department, research group or they may
be levels like top management, middle management etc.
For example, the diagnostic targets may be
 to know the quality of relationship,
 to know whether parties have necessary skills for task
accomplishment,
 whether they are collaborative or competitive or
 whether they are effective as a subsystem or not.
The common methods of obtaining this information are:
 separate interviews followed by a meeting of parties,
 observation to assess the dynamic quality of interaction,
 confrontation meetings to check parties’ perceptions of each
other
ii. The diagnosis of the organisation processes, namely, decision-making

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 processes, communication system, management of conflict, planning
methods.
For example, the diagnostic target may be goal-setting process. This
process includes setting task objectives at all levels and establishing
criteria to measure accomplishment of objectives. For this, information
providing answers to the following questions will be sought:
 Do people set goals?
 If yes, then who participate in goal setting?
 Do people possess necessary skills for goal setting?
 Are these goals achieved?
Observations, interviews or questionnaires are the common methods of
obtaining this information to assess goal-setting ability and skill of
individuals and groups working within the organisation.
Six-Box Model as Diagnostic Tool
Marvin Weisbord’s six-box model is a popular diagnostic tool used by OD
practitioners. It helps in learning where to look and what to look while
diagnosing organizational problems. Weisbord emphasized that things must
go right in six critical areas, namely,
 Purposes,
 Structure,
 Rewards,
 Supportive mechanisms,
 Relationships and
 Leadership
for ensuring organisation’s success.
The formal and informal aspect of various processes should be considered to
understand organizational dynamics. A thorough diagnosis of six areas will
help in choosing appropriate OD interventions.
Action: OD Interventions
OD interventions are set of structured activities initiated in a systematic
way to produce desired changes. OD interventions lead to organizational
improvement through:
 Correction actions,
 Enabling actions,
 Alignment interventions and
 New vision supporting interventions.
 Corrective actions are implemented to solve the existing problem.

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 Enabling actions help in seizing the opportunity.
 Alignment interventions are needed to put the things back at their right
places.
 New vision supporting interventions are implemented to make the new
vision a reality by building necessary processes, structures and culture.
A well designed OD programme encompasses OD intervention strategy.
This strategy may be planned well in advance or it may emerge as events
demand.
Diagnosis of organisation as a system or subsystems pinpoints where to
intervene, what to do and how to sequence interventions. This helps in
formulating OD intervention strategy.
Planning interventions, executing interventions and evaluating the effects
of interventions are essential to organizational development.
While planning interventions, management must decide which alternative
is most likely to produce desired results. Accordingly, choice of a particular
intervention should be made.
Programme Management - Evaluation
OD programme or intervention involves use of scarce resources of
organisation like time and money to improve organizational effectiveness.
OD programmes may be expected to improve production, satisfaction, profit,
efficiency, work climate etc. So, there is a need to evaluate OD programme
in terms of expenditure and results.
The evaluation of OD programme provides information to judge
effectiveness of OD programme or for making improvement in subsequent
stages.
Gibson, Ivancevich and Donnelly advocated evaluation model consisting of
six steps:
1. Determining objectives of the programme
2. Explaining the activities undertaken to achieve objectives
3. Measuring results/ effects of the programme
4. Setting baseline points against which change can be compared
5. Controlling extraneous factors
6. Finding unanticipated consequences
The process of evaluation may be complicated but efforts should be made to
evaluate the impact of OD programme to take corrective actions, if required.

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UNIT IV
Q.7. IMPLEMENTATION & ASSESSMENT OF OD
Organizational development (OD) is a set of planned interventions designed
to improve organizational effectiveness and employee wellbeing.
OD Implementation Techniques
The techniques for the implementation of OD can be categorized into two:
1. Process-Focused Techniques
2. Structural-Focused Techniques
1. Process-Focused Techniques
The emphasis of process change techniques is on the process to accomplish
change. Intervention methods in this category include
a) Survey Feedback
Three basic steps are employed in Survey Feedback:
 First, a questionnaire is typically completed by all members of a work
group or whole organization to collect their perceptions and attitudes.
 In the second step, data are fed back to the organization members,
usually during group meetings.
 Finally, specific plans for dealing with the problems identified by the
survey are developed.
b) Team Building
Team building may begin by having organization members define the goals
of the work group. Following this, group members can evaluate the group's
performance. This may identify potential problem areas.
Next, each team member's role can be identified and clarified. Previous
ambiguities may be brought to the surface.
Finally, key processes that go on within the team are analysed to identify
how these processes might be improved, resulting in greater team
effectiveness.
c) Process Consultation
In process consultation, often an outside consultant helps the manager
perceive, understand and act on process events. The consultant gives the
manager insight into what is going on around him, within him, and between
him and other people. The consultant provides guidance to help the manager
diagnose what processes need to be improved.

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d) Quality of Work Life
Quality of work life can be defined as any activity undertaken by a work
group or whole organization for the purpose of improving conditions that
affect a group member's experience with a work group or organization.
2. Structural-Focused Techniques
Commonly used structural approaches to change are:
a) Goal Setting
A goal-setting program is organization-wide, in which a better fit between
individual and organization goals is achieved. Top leaders set their
operating goals, followed by meetings with the second level of
administrators during which their goals are mutually set. These managers
then meet with their department heads to help set their goals, and so on
down the hierarchy to the lowest level in the organization.
b) Job Redesign
Job redesign can be defined as a deliberate, planned restructuring of the
way tasks are performed with the purpose of improving performance. Job
redesign includes organizational change techniques, such as job
enrichment, specialization, job engineering, job rotation, job enlargement,
and autonomous task groups.
c) Quality Circles
A quality circle is a voluntary group of five to ten members, typically from
similar jobs or the same work group, who meet periodically to identify and
solve work-related problems.
Each quality circle usually has an appointed group leader. Groups focus on
departmental and organizational goals and submit proposals for change to
management. A steering committee, consisting of people from all levels and
areas of the organization, typically review proposals, accept or reject them,
and allocate resources for implementation.
ASSESSMENT OF OD
OD Assessment is concerned with providing feedback to the practitioner and
organization members about the progress and the impact of interventions.
The basic components of OD assessment are:
1. Objectives: The objective of an assessment is to gain knowledge and
insight into the efficacy and design of the main change program.
2. Worth or value: The worth or value for the focal variables which can
be an individual, object, situation or a program.

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 3. Measurement: The technique of measurement of social variables is
done through psychometric tests.
4. Comparison: The data obtained from the measurement can be
compared from the data measured from other reference.
5. Conclusion: It is arriving at a judgment after comparison is made.
Criteria for OD Assessment
1. Efficiency Measurement of Evaluation: The prime objective in
efficiency evaluation to determine wastage and explore ways
2. Intervention Evaluation: It is concerned with examination of the
transformational process.
3. Effectiveness Evaluation: It is the assessment of outcomes from a
given set of inputs through process.
4. Cost Benefit Analysis: It is to assess the benefits from a given level of
inputs.
Key Aspects of OD Assessment
Two key aspects of the evaluation are
a. Measurement: This involves two activities:
i. Selecting the appropriate variables: The variables measured in OD
evaluation should derive from the conceptual model underlying the
intervention.
ii. Designing good measures: A good measure should be both
operationally defined and reliabe
b. Research Design
OD practitioners must make choices about how to design the evaluation to
achieve valid results. The key issue is how to design the assessment to show
whether the intervention did in fact produced the desired result. This is
called internal validity. The secondary situation that whether the
intervention would work similarly in other situations is referred to as
external validity. Assessing the internal validity of an intervention is in
effect, testing a hypothesis.

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Q.8. T-GROUP TRAINING:
T- Group Training is a technique of the job training method. The T-Group
provides participants with an opportunity to learn about themselves, their
impact on others and how to function more effectively in group and
interpersonal situations. It facilitates this learning by bringing together a
small group of people, 10 to 15 persons, for the purpose of studying their
own behaviour when they interact within a small group. Usually there is no
leader, no planned agenda and stated goal.
The trainees can be given any assignment like case study, role play, etc.,
that leads the group interaction. The trainees would be encouraged to be
thoughtful and understanding towards the feeling of others. The trainees
should feel secure to express their personal feeling and reactions to what
happening in the group and understand the others behaviour and feelings.
Here emphasis is on face to face interaction.
T-Group provide learners opportunity to -
 Increase skill in facilitating group effectiveness.
 Increase interpersonal skills.
 Experiment with changes in behaviours.
 Increase understanding of the impact of behaviour on others.
 Increase sensitivity to other’s feelings.
 Increase ability to give and receive feedback.
 Increase ability to learn from own and a group’s experience.
 Increase ability to manage and utilize conflict.
Sources of Changes in T- Group is as follows -
 Self-observation - Participants give more attention to their own
intentions, feelings etc.
 Feedback - Participants receive information on the impact they have
on others.
 Insight - Participants expand self-knowledge.
 Self-disclosure - Participants exposes more of themselves to others.
 Universality - Participants experience that others share their
difficulties, concerns or hopes.
 Group Cohesion - Participants experience trust, acceptance &
understanding.
 Cope - Participant see others learn, achieve their goals, improve and
cope more effectively.

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Q.9. BEHAVIOUR MODELLING
Behaviour modelling training has become one of the most widely used, well-
researched and highly regarded psychologically based training
interventions. The approach, based on Bandura’s social learning theory,
differs from other training methods with its emphasis on
(a) Describing to trainees a set of well-defined skills to be learned,
(b) Providing a model displaying the effective use of those skills,
(c) Providing opportunities for trainees to practice using those skills,
(d) Providing feedback and social reinforcement to trainees, and
(e) Taking steps to maximize the transfer of those skills to the job
The basic behaviour modelling involves the following 5 steps:
(a) Learning points: At the beginning, the essential goals and objectives of
the programme are stated.
(b) Modelling: Trainees watch films or videotapes of a model manager
dealing with the situations.
(c) Role playing: Trainees participate in extensive rehearsal of the skills
shown by the models.
(d) Social reinforcement: The trainer offers reinforcement in the form of
feedback based on how the trainee performs in the role-playing
situation.
(e) Transfer of learning: Finally, trainees are encouraged to apply their new
skills.
Advantages of behaviour modelling
(a) Its cost is low as compared to other methods.
(b) It focuses on real behaviour rather than theories.
(c) It can have positive impact on the workplace and improve individual
success and reach organizational results.
(d) Helps employees to engage in positive manner in any problem situation.
Disadvantages of behaviour modelling
(a) It lacks adequate theory.
(b) Lack of incorrect behaviour examples which often lead to imperfect
understanding

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Q.10.COACHING AND MENTORING
Coaching and mentoring are two types of employee development programs
undertaken with the objective to raise their level of performance.
Coaching: In coaching, an individual or a group learns to improve their
performances through workshops, seminars, and other similar activities. In
this process, a trainer is provided to the learners to give training to the
employees and analyse their performances.
Mentoring: In mentoring, the mentor possesses good knowledge and
experience shares it with another person called mentee who is having less
knowledge and expertise to help him out in the development of his career,
improving his self-esteem, enhancing productivity, etc.
Similarities between Coaching and Mentoring
 Facilitate the exploration of needs, motivations, desires and skills
 Use questioning techniques to facilitate client’s own thought processes
 Observe, listen and ask questions to understand the client’s situation
 Creatively apply tools and techniques.
 Encourage commitment and the development of lasting personal growth
 Maintain unconditional positive regard for the client
 Ensure that clients develop personal competencies.
 Evaluate the outcomes of the process, using objective measures
 Encourage clients to continually improve competencies.
 Work within their area of personal competence.
Key Differences between Coaching and Mentoring
1. Coaching is the help given by an expert to an individual for the
improvement of his performance. Mentoring is an activity where
a person guides a less experienced person.
2. Coaching is task oriented, but mentoring is relationship driven.
3. Coaching is for a short term, whereas mentoring lasts for a longer
duration.
4. Coaching is well planned and structured while mentoring is an informal
one.
5. Coach imparts coaching, but a mentor provides mentoring.
6. Coach is an expert in the concerned field whereas mentor possesses high
knowledge and experience.
7. Coaching aims at improving the performance of an employee, whereas,
mentoring concentrates on his career and all round development.

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Q.11. INSTRUMENTED TRAINING
Instruments are usually used to test abilities, attitudes, personality, styles
or behaviour. Psychological tests, questionnaires, projective techniques,
etc., are called instruments. Such instruments can be used for training.
Instruments provide significant data which the participants can use to
enhance their insights, and to prepare plans to experiment with new
behaviour.
Before any instrument is used, a lot of preparation goes into it. This is a part
of the pre-training preparation. The pre-training preparation starts with
 identifying the dimensions on which people need to be trained,
 how important these dimensions are to a particular job,
 how people possessing these qualities and those who do not have these
qualities would behave,
 how these qualities can be measured,
 development of actual indices,
 standardising the instruments
and so on. As a result of the pre-training preparation, a standardized
instrument measuring a behavioural orientation would be available for use
during the training programme.
A programme of instrumented training should have proper announcement,
containing the information that psychological instruments would be used to
help participants get feedback for their use. Otherwise some participants,
reluctant to get instrumented feedback, may feel unhappy about such
inputs.
In instrumented training participants complete some instruments and the
trainer helps them to interpret the meaning and implications of their scores.
An important requirement for instrumented training is to build
interpersonal support from the beginning. Such a climate will encourage the
participants to volunteer to examine their behaviour and its implications
with the help of other participants.
The most important aspect of instrumented training is the process of
feedback. Feedback has motivational value. The motivational value of
feedback increases when it is given in a proper context or proper perspective.

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UNIT V
Q.12. ORGANISATIONAL DEVELOPMENT AND ITS FUTURE
Organizational Development (OD) is a prescription for a process of planned
change that includes concepts, values and interventions. The OD processes
use various techniques to bring about improvement in the target groups –
individuals, teams and the total organizations.
The application of OD technology is growing rapidly as new models,
techniques, and approaches are constantly being developed and old
techniques discarded.
A successful OD practitioner must be able to see all around in at least three
areas:
 Work trends,
 Global trends, and
 Technology trends.
The challenge for the practitioners and the organization at present is to
assess the current business issues that we are facing today, identify
emerging trends that will impact the future, and anticipate how an OD
practitioner can stay ahead of these trends.
Future Trends of OD
The environment in which organizations operate is increasingly turbulent
in an era of global, national, regional commercial competitiveness. Alliances,
mergers, acquisitions are all common. The old organization paradigm is
dying. OD thus play major role in assisting organizations to shift and to
sustain this new paradigm and to help invent new paradigms in the future.
The future trends of OD include:
Organization Transformation (OT): The recent advancement in change
strategies is used in situations of drastic, abrupt change when the
organization’s survival is at stake. The outcome of these situations includes
mergers, takeovers, product changes, and plant closures, which often
involve large-scale layoffs and restructuring.
Shared Vision: Shared vision creates a sense of commitment, where all
staff aligns their own interests with the vision of the organization. It
inspires everyone to put in extra effort to achieve the common vision of the
overall organization. It motivates and excites workers to innovate, since the
overall success of the organization affects everyone. Shared vision clarifies
workers' and managers' expectations in the organization, creating a uniform
vision. This helps avoid interdepartmental conflicts that disrupt normal
operations in the organization.

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Innovation: Innovation is the most powerful key of organizational change,
which creates new products, goods, and services and new ways of organizing
and relating among organization members.
Trust: The most critical factor in case of organizational change is the
development of trust within and between individuals, teams, and
organizational units and levels. Without trust, there can be no sustainable
excellence in an organization.
Empowerment: The organization members must be empowered which
means they must be given the autonomy to do things their own way in order
to develop high-performing systems. The organizations have to empower the
employees to achieve recognition, involvement, and a sense of worth in their
jobs.
Learning Organization: A learning organization is one that continually
learns and improves. A learning organization is one that learns faster than
its competition, one that taps the knowledge of the entire organization and
does not only rely on the top person. A learning organization learns from its
failures and creates a new paradigm.
Reengineering: Work should be organized around outcomes, not tasks or
functions; this fundamental rethinking and radical redesigning of business
systems urges an overhaul of job designs, organizational structures, and
management systems.
Core Competencies: The companies have to identify and organize around
what they do best and accordingly, corporate strategy should be made. It
should not be based on products or markets, but on competencies that give
a company access to several markets and are difficult for competitors to
imitate.
Macro System Trends
In present scenario, the organizations are becoming more complex and are
highly affected by competitors and external conditions globally. This is all
because of the macro system trends which focus on the organizational
system, including:
 The impact of culture change
 Total resource utilization
 Centralization vs. decentralization
 Conflict resolution
 Inter-organization collaboration
Interpersonal Trends
Interpersonal trends focus on team and group dynamics, including:

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  Merging line and staff functions
 Resource linking
 Integrating quality and productivity
 Diversity
 Networking
 Rewarding
Individual Trends
Individual trends, which focus on the individual, include:
 Intrinsic worth
 Change in individuals
 The effects of thinking
 Health and fitness
 Interdependence

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