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

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

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

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

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

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

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

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

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

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

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

ii) Management is a generic term and includes administration. while others maintain that administration and management are two different functions. 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. Management Management means getting the work done through and with others. Nature 3. It is concerned with determination of major objectives and policies. on the other hand. Those who held management and administration distinct include Oliver Sheldon. Thus. administration involves broad policy-making and management involves the execution of policies laid down by the administration. Table 1. Administration is a higher level function: Administration refers to policy-making. Scope . Thus. Some writers do not see any difference between the two terms. Meaning Administration Administration is concerned with the formulation of objectives.2: Distinction between Administration and Management: Basic 1.1. This view is held by Tead. Administrators are basically concerned with planning and control. But some English authors like Brech are of the opinion that management is a wider term including administration. Administration relates to the decision-making. administration is a higher level function. Administration is a determinative function. plans and policies of the organisation. iii) There is no distinction between the terms µmanagement¶ and µadministration¶ and they are used interchangeably. management is a lower-level function and is concerned primarily with the execution of policies laid down by administration. It is a doing function. 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. management as an executive function which is primarily concerned with carrying out of the broad policies laid down by the administration.7 Administration and Management The use of two terms µmanagement¶ and µadministration¶ has been a controversial issue in the management literature. etc. Spriegal and Lansburg. According to them. whereas management refers to execution of policies laid down by administration. 2. It is a thinking function. Floerence and Tead. Spriegel and Walter. Managers are concerned mainly with organisation and direction of human resources. It is concerned with the implementation of policies. Management relates to execution of decisions.

Define management. Still management is not completely a profession. public organisations in the private sector and non-business sector.4. co-ordinating. lower levels of management. Status Administration refers to Management is relevant at higher levels of management. DecisionMaking Administration determines Management decides who what is to be done and when it shall implement the is to be done. middle and lower. 8. Explain its characteristics. i. 5. Five M¶s of management (________. __________is principally the task of planning.. Usage of Term The term µadministration¶ is The term µmanagement¶ is often associated with widely used in business government offices. Lower level managers require and use a greater degree of technical skill and managers at higher levels use a greater degree of conceptual skill.e. Direction of It is concerned with leading It is concerned with Human Resources and motivation of middle level leading and motivation of executives. Management creates ________ and motivates employees to work harder and better by providing necessary guidance. operative workforce for the execution of plans. Human skills are important at all managerial levels. Self Assessment Questions 1. 7.9 Terminal Questions 1. organisations. counseling and effective leadership. 1. . Managers perform different roles to discharge their responsibilities. administrative decisions. Management is largely found at the middle and lower levels and administration is found at the higher levels. 1. ___________. making strategic plans to deal plans and policies of the effectively with the organisation. machinery and methods or ways of doing things) depends to a great extent on the quality of management. Environment Administration has direct Management is mainly interaction with external concerned with internal environment of business and forces. motivating and controlling the efforts of others towards a specific objective. _________. There are three levels of management-top. 6. It is the management which transforms physical resources of an organization into productive resources. objectives. 2. 3.8 Summary Management is concerned with getting things done through other people. environmental forces.

4 Organizing .2. Management 2.1. manpower 3.1 Introduction Objectives 2. Refer section 1.2 Process of Management 2. 1. Refer section 1.5 3.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .3 Planning 2. 3. Money. teamwork Answers to TQs: 1. materials. Bring out the difference between Administration and Management. Discuss the importance of management.10 Answers to SAQs and TQs SAQs: 1. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.3 2.2. Refer section 1.

Objectives: After this studying this unit. Directing.5 Staffing 2. Staffing. Planning 2. Management functions are as follows (Fayol. Coordinating 5.10 Answers to SAQs and TQs 2. as the action of measuring a quantity on a regular basis and of adjusting some initial plan. Commanding 4. in recent time.8 Summary 2. 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. you will be able to: · Define Management process.2. management functions have been regrouped into four categories.6 Directing 2.7 Motivating Self Assessment Questions 2. · Explain Planning. .1 Introduction Follett (1933) defined management as "the art of getting things done through people´. 1949): 1. Organizing.9 Terminal Questions 2. · Explain different functions of management Process. Organizing 3. Motivating.

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

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

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

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

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

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

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

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

_______refers to the managerial function of determining and improving the manpower requirements of an enterprise. Planning involves the process of defining goals. establishing strategies for achieving these goals. 2. performance appraisal etc.In summary. Organization involves designing. It involves many sub-functions such as manpower planning. who is to do. 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. To motivate people. 2.8 Summary Management is the art of getting things done through people. Staffing refers to the managerial function of determining and improving the manpower requirements of an enterprise. structuring. have to do with a person¶s relationship to the context or environment in which she or he performs the job. neither will they be satisfied. Every organization needs to plan for change in order to reach its set goal. how the tasks are to be grouped. Hygiene factors on the other hand. 2.9 Terminal Questions 1. Write a short not on directing. 2. and coordinating the work components to achieve organizational goal. Explain Staffing in detail 3. people will not be dissatisfied. and developing plans to integrate and coordinate activities. motivators describe a person¶s relationship with what she or he does. It is the process of determining what tasks are to be done. recruitment. Removing dissatisfying characteristics from a job does not necessarily make the job satisfying. 3. The _____analysis begins with a scan of the external environment. who reports to whom. Job satisfaction factors are separate and distinct from job dissatisfaction factors. The satisfiers relate to what a person does while the dissatisfiers relate to the situation in which the person does what he or she does.10 Answers to SAQs and TQs SAQs: . and where decisions are to be made. ____defined management as the art of getting things done through people. many related to the tasks being performed. emphasize factors intrinsically rewarding that are associated with the work itself or to outcomes directly derived from it. Self Assessment Questions 1. What is planning? 2. When hygiene factors are adequate.

5 Goals of OD 3.3 Characteristics of OD 3. Reference 2.6 Copyright © 2009 SMU Powered by Sikkim Manipal University . Reference 2. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3.1. SWOT 3. Staffing Answers to TQs: 1.1 Introduction Objectives 3.4 Categories of OD 3. Follett 2.7 Role of OD 3.6 OD and Management Development 3.3 2.8 Problems in OD . Reference 2.2 Definitions 3.5 3.

organization development represents one of the best strategies for coping with the rampant changes occurring in the marketplace and society. the answer is ³yes´. and attention was soon directed toward other human and social processes in organizations such as the design of work tasks.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. challenges from turbulent environments. ³Knowledge´ work is replacing ³muscle´ work. and changing customer demands. strategy. and the constant challenge to maintain congruence among organizational dimensions such as technology. efficiency. Although new jobs are being created at record rates. and even prosper in these vexing times? Fortunately. organizations and the individuals in them face an enormously demanding present and future. Organizations face multiple challenges and threats today ± threats to effectiveness. Organization development is a relatively recent invention. old jobs are being destroyed at an accelerating pace. and profitability. fighting obsolescence of one¶s knowledge and skills.Self Assessment Questions 3. . OD focuses on issues related to the ³human side´ of organizations by finding ways to increase the effectiveness of individuals. conflict resolution. and the organization¶s human and social processes. adapt. And organization development (OD) is one of them. Are any strategies available to help people and organizations cope. and processes.9 Summary 3. A variety of solutions exists. and the like. survive. and learn how to do that better and better over time. Early returns were encouraging. maintaining dignity and purpose in pursuit of organizational goals. Keeping organizations healthy and viable in today¶s world is a daunting task. culture. organization development is a process of teaching people how to solve problems. take advantage of opportunities. strategy formulation and implementation.10 Terminal Questions 3. Individuals in organizations likewise face multiple challenges ± finding satisfaction in and through work. We predict that organization development will be preferred improvement strategy in future. teams.11 Answers to SAQs and TQs 3. increased competition. Simple survival ± continuing to have an adequate job ± is a major challenge today in the light of constant layoffs and cutbacks. organization structure. The field of OD grew rapidly in the 1970s and the 1980s with thousands of organizations in the private and public sectors using the theory and methods of OD with great success. Today. 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. In summary. Basically. and achieving human connectedness and community in the workplace.

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

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

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

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

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

and integrate individual and organizational goals. Emphasis on Intervention and Action Research: OD approach results in an active intervention in the ongoing activities of the organization. temporary. Action research is the basis for such intervention. He shares a social philosophy about human values. and mutual influence.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. rather. the importance and centrality of goals and objectives and the different role requirements . it is a programme with a purpose that is to guide present and future action. Organization Development is inextricably linked with action. they are ongoing. OD focuses on the elevation of an organization to a higher level of functioning by improving the performance and satisfaction. 7. joint goals and means. 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. 6. 3. 4. third party change agent. or isolated problems. takes actions for intervention. rather. OD attempts to provide opportunities to be µhuman¶ and to increase awareness. (b) Problems of human satisfaction and development. identity. The change agent is a humanist seeking to get a humanistic philosophy in the organization. all types of experience requiring Organization Development efforts may be grouped into three categories: (a) Problems of destiny. and then. It recognizes that organizational goals change. The relationship involves mutual trust. 3. so the methods of attaining these goals should also change. OD efforts are not one-shot actions. They discourage µdo it yourself¶ approach. Thus. and adaptability for the organization as a whole. A change agent in OD process does not just introspect the people and introduce changes. participation. Long-range Change: OD efforts are not meant for solving short-term. and (c) Problems of organizational effectiveness. and revitalization. collects relevant data. 5. interactive. growth. or catalyst. At the individual level. and cyclic processes. 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. he conducts surveys. This is done to arrive at certain desirable outcomes that may be in the form of increased effectiveness. further more. evaluates these data.4 Categories of OD Programmes In general. 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¶. Participation of Change Agent: Most OD experts emphasize the need for an outside. Key areas are the normative type of model. problem-solving.

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

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

and laterally. not on the managers. Long-range strategy for organizational innovation and renewal. 4. To increase the level of enthusiasms and personal satisfaction at all levels of the organization. however. 3. Trained specialists required. 7. To increase the level of self and group responsibility in planning and its implementation. Problem-solving approach. To treat each human being as a complex person with a complex set of needs important in his work and his life. To create an environment in which authority of assigned role is augmented by authority based on knowledge and skills. 5. 3.8 Problems in Organization Development Organization development. Educative and training Short-range. By 70s. focus on achieving improvement in design. it is quite suitable for improving organizational performance on long-term basis. Since OD attempts to bring comprehensive change in the organization. however. has invited sharp criticism as a strategy to increase organizational viability and effectiveness because many OD programmes have failed. Train and equip employees and managers to perform better in existing organization. Much of the enthusiasm created at the beginning of OD programmes vanished over the period of time. OD can be utilized for the following results in the organization: 1. To increase the level of trust and mutual emotional support among all organization members. Thus. plays key role in organizational improvement. To increase the openness of communications in all directions-vertically. In early 60s. horizontally. 2. No special requirement. Focus on design. OD became quite successful with many professional consultants offering high services and programmes to various organizations. 3.7 Role of Organization Development Organization development. To place emphasis on humanistic values and goals consistent with these vales. . 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. as a long-term strategy for organizational change.Focus Approach Time Specialist accomplishments. substantial disenchantment with OD became evident because of many controversial OD techniques like sensitivity training. 6.

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

5. collaborative. But OD aims at changing the entire organizational climate where the managers work. OD focuses on culture and processes. Empowerment 4. What are the problems involved in the implementation of OD? 3. Tom Peters 3.10 Terminal Questions 1. _____________is a short-term strategy. OD is the ultimate remedy for organizational improvements and developments. problem-focused µnature of OD¶ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. 3. 4. Explain the various characteristics of OD. Distinguish between µorganizational development¶ and µmanagement development¶. 3. Management development aims at developing the managers individually. ±±±±±±±±± is a process which includes leadership behaviours and human resource practices.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. Organization development should be led and supported by ±±±±±±±.1. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. Define OD. Peter Senge . 4. ±±±±±±± is associated with ³Liberation Management´. 2. Top management 2. There is no µquick fix¶ to organizations¶ problems. 3.11 Answers to SAQs and TQs SAQs: 1. State the various roles of OD. Who is associated with the ³Learning Organizations´? 5. Explain its salient features. 3. 2. The participative.

Refer section 3. Refer section 3. Refer section 3. MU0002-Unit-04.3 Process Consultation 4. Refer section 3.Organization Development ± Interventions Structure: 4.1 Introduction Objectives 4.3 3.2 Survey Feedback 4.2 2. Management development Answers to TQs: 1.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .6 Team-building .7 5.5.6 4. Refer section 3.4 Grid Training 4.Organization Development ± Interventions Unit-04.5 Leadership Development 4.

8 Change Agents 4.11 Terminal Questions 4. work group. Further.10 Summary 4. inter-group activities. and organizational level. survey feedback. various consultants and practitioners have different opinions about the activities which can be included in interventions. 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. and survey feedback method. People¶s behaviour may be relevant to understand at individual level. techno-structural activities. Historically. French and Bell have suggested twelve families of OD interventions: diagnostic.4. the classification of OD interventions shows variation.9 Role of Change Agents Self Assessment Questions 4. For example. 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. 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. they make things happen. education and training. 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. process consultation.12 Answers to SAQs and TQs 4. group level. Therefore. However. Nevertheless.7 Inter Group Development 4. the classification appears to be more relevant because it may specify the range of change that an organization requires. and organizational culture. Interventions constitute the action thrust of organization development. interpersonal level. interventions may be required to change people at all these levels. Subsequently. OD efforts were attempted through sensitivity training. grid training. mediation and negotiation activities. Thus. management grid. team-building.´ There are various OD interventions and they are classified in different ways. many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others.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. inter-group level. other techniques like process .

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

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

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

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

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

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

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

Providing substantial time together in which new information is constantly shared. generally most of the members come forward with their arguments as to what the real problems are.4. Examining Differences: The perception of people on an issue differs because of their differing backgrounds. 3. This problem can better be identified in terms of what is hindering group effectiveness. group problems to even personal problem. For achieving these. The view may be quite different ranging from the organizational problem. Team-building Process: Team-building attempts to improve effectiveness of the team by having team members to concentrate on: 1.2: Process of Team-building Various steps of team-building process are not one-shot action. recognition. The consensus-seeking part of the process necessitates that each person becomes thoroughly aware and understand clearly the basic concepts of team-development. 4. At this stage. rather. Analyzing the relationships among the members who are performing the job. Often the team itself defines which aspects of team-building it wishes to work on. 2. and rewards. Analyzing how the work is performed. Fig. Much of the problems may be solved through effective communication and training sessions. personality and attitudes. Analyzing how the team is working. Analyzing how team¶s goals and priorities are linked to those of the organization. their value systems. 2. In problem identification. such as. 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. . Setting goals and priorities for the team. the emphasis should be on consensus. 1. and 5. Providing positive feedback. they are repetitive and cyclical as indicated by arrows in the figure. the team-building exercise proceeds in a particular way as shown in figure. The role of communication is important in this context because it will help in clarifying the actual problems to the members. and 5. Problem-sensing: There are a number of ways in which problems of a team can be obtained. 4.

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

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

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

Self Assessment Questions 1. 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. generation of new behavioral science knowledge. group discussions. Grid training focuses on individuals and groups to assess their own strengths and weaknesses. Useful hypothesis are to be formulated and tested. skills and change in behavior. inter-group and total organization levels. role-plays and instruments. Sensitivity training focuses on small group ranging from ten to twelve. Data collection. ________is antithesis of synergy in team-work which suggests that people working together on a common task may actually decrease their individual efforts. diagnosis. The trainer role is most widely and intensively used at all stages of a change project: unfreezing.11 Terminal Questions 1. films. The first step in survey feedback is ______ usually by a consultant based on a structured questionnaire. cases and experiential learning etc. In process consultation. Training is used both in µcontent orientation¶ and process orientation¶. 4. It focuses on skills. changing (intervening) and refreezing. 2. developing action plans based on feedback and follow-up.A change agent needs to be a trainer and educator. team-work does not necessarily spurt group efforts 4.10 Summary OD intervention strategies are various activities which a consultant and client organization performs for improving organizational performance. Team-building is most important. attitudes and beliefs. 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. group. presentations. What is Grid Training? How does it help in improving individual performance in an organization? . 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. Grid Training was developed by ±±±±±±±±±±±± 3. He has to educate people on the need and importance o change using a variety of methodologies ± lectures. widely accepted and applied OD intervention for organizational improvement. feedback of information. Survey feedback usually proceeds with sequential activities involving data collection. knowledge and processes necessary for effectiveness at the individual. Training is required for enhancing knowledge.

MU0002-Unit-05-Values. Refer section 4. Blake and Mouton. and Beliefs in Organization Development Structure: 5. 4. Data collection 2.2 3. and Beliefs in Organization Development Unit-05-Values. Explain Change agents and discuss the role of change agents in detail. Assumptions.6 4. What is survey feedback as an intervention of OD? How does it provide base for other OD interventions? 3. Refer section 4.4 2.1 Introduction . Refer section 4.2. What is team-building? What are the stages of life cycle of a team? 4. 3.12 Answers to SAQs and TQs SAQs: 1. Social loafing Answers to TQs: 1. Assumptions. Refer section 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .

Objectives 5. Most of these beliefs were formulated early in the development of the field. 5. beliefs and assumptions. and they continue to evolve as the field itself evolves. shaping the goals and methods of the field and distinguishing OD from other improvement strategies.5. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers.2 Definitions . assumptions. you will be able to: · Explain the meaning of values. Objectives: After studying this unit. beliefs and assumptions.1 Implications for Dealing with Individuals 5.8 Answers to SAQs and TQs 5.3 Chronology of Events in Management and Organization Thought 5.6 Summary Self Assessment Questions 5.2 Definitions 5.3 Implications for Designing and Running Organizations 5.1 Introduction A set of values. · Give the statement of OD values and assumptions.7 Terminal Questions 5.4 Early Statements of OD Values and Assumptions 5. · State the implications of OD values and assumptions. · List the chronology of events of values. and beliefs constitutes an integral part of organization development.5 Implications of OD Values and Assumptions 5.2 Implications for Dealing with Groups 5.5.5.

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

Much of her career was devoted to finding ways to reduce adversarial relationships between workers and management. The Hawthorne Studies (1940s to 1960) spawned the human relations movement that was in full flower from the 1930s to the 1960s. much of the research.y The great German sociologist Max Weber (1922) introduced the concept of bureaucracy as the best. y y y y y y y . repetitive jobs left them feeling alienated and dispirited. Barnard viewed organizations as social systems that must be effective (achieve goals) and efficient (satisfy the needs of employees). The research demonstrated the primacy of social factors on productivity and morale. apathy. Group Dynamics (1940) The scientific study of groups using experimental research methodswas launched by Kurt Lewin and his students. and White demonstrated that democratic leadership was superior to authoritarian leadership and laissez-faire leadership in affecting group climate and group performance. Some early experiments were conducted in the late 1930s. Mary Parker Follett (1926). These approaches possessed many desirable features. Democratic leadership seemed to bring out the best in the groups. impersonal rules. Research by Lewin. aggressiveness and poor performance. The Functions of the Executive by Chester 1. and the supervisor determined their performance. most efficient way to organize people. and rigid procedures would create a well-oiled human machine called the organization. training in interpersonal skills for supervisors. People were not cogs. A strong hierarchy of authority. and a general humanizing of the workplace. theory. Lippitt (1939). extensive division of labor. by Roethlisberger and Dickson in 1939. People came to work as whole people. and practice since the late 1920s have focused on the shortcomings of these two paradigms and how to overcome the limitations. authoritarian leadership caused dependency. greater attention to workers social needs. a management theorist and astute observer of labour-management relations. The human relations movement advocated participative management. In a sense. Scientific management as the way to organize work and bureaucracy as the way to organize people were the prevailing paradigms for organizations in the early 1900s. but also contained serious flaws that led to unintended consequences. Reports on these studies by Mayo in 1933 and 1945. the work environment. wrote an article on The Giving of Orders advocating participative leadership and joint problem-solving by labour and management. Group norms had more powerful effects on productivity than economic incentives. Their simple. His acceptance theory of authority proposed that authority derives from the willingness of subordinates to comply with directions rather than from position power. organizations were not machines. their feelings and attitudes about the work. and by Homans in 1950 profoundly and irreversibly affected people s beliefs about organizational behaviour. The Famous Hawthorne Studies (1927 to 1932) were conducted at the Hawthorne plant of Western Electric Company. Barnard (1938) presented insights from his experiences as President of the New Jersey Bell Telephone Company.

Those who subscribe to Theory Y assume that people have the potential to develop. to assume responsibility. and to pursue organizational goals if given the chance and the social environment to do so. and human resource practices to allow individual potential to be released. and need to be led. caring social climate. In addition to presenting Theory X and Y. resist change. Laboratory training taught people how to improve interpersonal relations. management practices. healthy adults. Rogers focus on effective interpersonal communications was applicable to superior-subordinate relations. 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. 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. Humanistic and democratic values suffused the movement. indifferent to the organization s needs. dislike responsibility. a mechanistic organization y y y y y y y y . Overcoming Resistance to Change. Those who subscribe to Theory X assume that people are lazy. Motivation and Personality by Abraham Maslow (1954) presented a new view of human motivation. this book popularized Maslow s motivation theory.y These years witnessed the beginnings of the laboratory training movement (1946 and 1947). a direct precursor of OD. increase self-understanding. which holds that individuals have within themselves the capacity to assume responsibility for their behaviour and mental health when provided with a supportive. are self-centered. and understand group dynamics. Burns and Stalker (1961) described two very different forms of organization structuremechanistic and organic. Ken Benne and Paul Sheats (1948). lack ambition. This article introduced the concept of organizations as socio-technical systems. reported that resistance to change could be minimized by communicating the need for change and allowing the people affected by the change to participate in planning it. The theory postulated that when lower-level needs are satisfied. P. Douglas McGregor wrote The Human Side of Enterprise (1960) in which he described his famous Theory X and Theory Y assumptions. Carl Rogers Client-Centered Therapy (1951) demonstrated the efficacy of non-directive psychotherapy. and introduced practicing managers to the concepts of need hierarchy and self-actualization. proposed that the leadership functions of a group should be shared between the leader and group members and showed how that could be done. The task of management is to change organizational structures. higherlevel needs become dominant. Eric Trist and Ken Bamforth of the Tavistock Clinic (1951) published the results of their work in British coal mines. pioneers in laboratory training. In an environment of slow change. French s (1948) article. 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. Lester Coch and John R.

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

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

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

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

and so on-are obsolete. they are the source of productivity and profits and should be treated with care. They cannot meet the demands of the marketplace. a growing awareness that ³win-lose´ organizational situations. formalized cross-functional communication." as behavioural scientists and managers continue to develop better understanding of authority structures. By implication. By implication. 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. experimenting with new organization structures and new forms of authority is imperative. The implication is that people are an organization¶s most important resource. Such an orientation creates a self-fulfilling prophecy. Evidence for this assumption comes from numerous examples where ³putting people first´ paid off handsomely in profits and performance. are dysfunctional over the long run and highlight the need for a ³win win´ attitude. values are never static.5. Creating co-operative rather than competitive organizational dynamics is a primary task of the organization¶s leaders. Still. Concluding Comment: . D. The question becomes not how A can get B to perform better. The rapid technological. Frequently the challenge is broader. including how persons C. they change over time. societal. 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. and organizational changes taking place assure that tomorrow will bring new definitions of what is "true" and new beliefs about what is "good. Finally. Such problems have the greatest chance of constructive solution if all parties in the system alter their mutual relationships. A key assumption in organization development is that the needs and aspirations of human beings are the reasons for organized effort in society. traditional hierarchical forms of organization-fairly steep pyramid. Therefore. developmental set of assumptions about people is likely to reap rewards beneficial to both the organization and its members. developmental. organizing structures. it is possible to create organizations that on the one hand are humane. and empowering. an optimistic. and on the other hand are high performing in terms of productivity. and profitability. emphasis on topdown directives. grouping by specialized function. and ways to optimize human potential. 5.3 Implications for Designing and Running Organizations Clearly. The belief that people can grow and develop in terms of personal and organizational competency tends to produce that result. quality of output. 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. The belief that people are important tends to result in their being important. the assumption is that many attitudinal and motivational problems in organizations require interactive and transactional solutions.Finally. adherence to the chain of command. in which one side wins and the other side loses. and E can support these changes.

2.7 Terminal Questions 1. __________ is associated with scientific management. Values. Define concepts. Write a note about F. Cognitive .6 Summary The field of OD rests on a foundation of values and assumptions about people and organizations. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. What was the outcome of Hawthorne Experiments? 4. values. _______________ gave theory X and theory Y. beliefs and assumptions. OD values tend to be humanistic. Taylor¶s principles of scientific management. Values are also beliefs. but are widely accepted today. A belief is a proposition about how the world works that the individual accepts as true.The field of organization development rests on a foundation of values and assumptions about people and organizations.8 Answers to SAQs and TQs SAQs: 1. These OD values were considered revolutionary when they emerged in the 1950s. 5. This discussion was intended to articulate an appreciation of OD values and explain where they came from. assumptions and beliefs help to define what OD is and guide its implementation. Self Assessment Questions 1. beliefs. 3. 5. optimistic and democratic. 5. beliefs and assumptions are cognitive facts. The concept of ±±±±±±±±±± was introduced by MaxWeber. 3. and assumptions are all ±±±±±±±±±± facts. 4. State the assumptions of Theory X and Theory Y. 2. Values. These beliefs help to define what OD is and guide its implementation. Chronology of events in management and OD tremendously influenced OD practitioners. 5. Values.W. The outcome of ±±±±±±±± was that people were not cogs and organizations were not machines.

Refer section 5. W.3 Copyright © 2009 SMU Powered by Sikkim Manipal University . Hawthorne experiments 5.2. Refer section 5.3 3.1 Kurt Lewin and Friends 6. Taylor 3. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.3 4. Refer section 2.2 Beyond the Quick Fix .3 5. Refer section 5. Douglas McGregor Answers to TQs: 1. Refer section 5.1 Introduction Objectives 6.2 Models and Theories of Planned Change 6. Bureaucracy 4. F.

3.1 The Nature of Systems 6.2.3 Systems Theory 6.12 Answers to SAQs and TQs 6.3. art and science which form the knowledge base upon which OD is constructed. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs.3 The Burke-Litwin Model of Organizational Change 6.4 Open Systems Thinking 6.3.4 Participation and Empowerment 6.9 Action Research Self Assessment Questions 6.2 Congruence among System Elements 6.10 Summary 6.4 Porras and Robertson Model of Organizational Change 6.2. Objectives: After studying this unit.3 Socio-technical Theory and Open Systems Planning 6.6 Parallel Learning Structures 6.1 Introduction This unit describes the foundations of organization development theory and practice. In this discussion. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning.6.8 Applied Behavioural Science 6.3.11 Terminal Questions 6.7 A Normative ± Re-educative Strategy of Changing 6.5 Teams and Teamwork 6. you will be able to: .

the important features of some phenomenon. · Explain normative-re-educative strategy of changing The knowledge base of OD is extensive and is constantly growing. · Describe the parallel learning structures. 6. The development of models of planned change facilitated the development of OD. The first idea states that what is occurring at any point in time is a resultant in a field of opposing forces.· Explain various models and theories of planned change. and specify the relationships among the variables. · Realize the importance of teams and teamwork. Here we provide a framework for thinking about planned change by exploring several models from the literature. That is. Planned change theories are rudimentary as far as explaining relationships among variables.2. Here we describe what we believe are the most important underpinnings for the field. 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 6.1 Kurt Lewin and Friends Kurt Lewin introduced two ideas about change that have been influential since the 1940s. describe those features as variables. · Explain systems theory. Models and theories depict.2 Models and Theories of Planned Change Organization development is planned change in an organizational context. Several recent theories show great promise for increasing our understanding of what happens and how it happens in planned change. · Explain the terms µparticipation¶ and µempowerment¶. the status quo-whatever is happening right now-is the result of forces pushing in . but pretty good for identifying the important variables involved. in words or pictures.

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

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

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

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

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

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

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

Fig.5: A Change-based Organizational Framework 6. describes the characteristics of systems. Fig. and Katz and Kahn were the first to apply open systems theory to organizations in 1966.4: Organizational Work-Setting Factors This model is extremely useful for OD practitioners and organizational leaders. which views organizations as open systems in active exchange with their environment. This section explains systems theory. Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950. and shows how systems theory enhances the practice of OD. Systems . 6.3 Systems Theory A second foundation of organization development is systems theory. Keep this framework in mind as you read the units on OD interventions because all interventions target one or more factors shown in figures. 6.

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

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

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

multi-skilled teams. Hanna writes: . 6. controlling variance at the source. 6. For example. performance will suffer. In a company that is performing poorly.7: The Congruence Model Showing the Organization as a System The congruence model¶s value is as an analytical tool for: 1) Assessing the characteristics and functioning of each of the elements. and identifying core tasks help STS consultants structure organizations and tasks for maximum effectiveness and efficiency. performance will suffer. and that changes in one system affect the other system. 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. STS is the principal conceptual foundation for efforts in work redesign and organization restructuring.Fig. training group members in multiple skills. Socio-technical systems theory was developed by Eric Trist. which components are "not functioning correctly. if people don¶t have the skills and knowledge required to do the work. two active segments of OD today. Fred Emery. A number of design principles have been developed to implement socio-technical systems theory. forming autonomous work groups. High-performance organizations almost always use principles from socio-technical systems theory. performance will suffer. If the strategy calls for entrepreneurial quickness and risk-taking and the formal organization is bureaucratic and highly centralized. The thesis of STS is that all organizations are comprised of two interdependent systems. a social system and a technical system. organizations must optimize both systems." The premise is that alignment (harmony. that is. To achieve high productivity and employee satisfaction. especially autonomous work groups (selfregulated teams or self-direct teams). and others at the Tavistock Institute in the 1950s.3 Socio-technical Systems Theory and Open Systems Planning Two major variations of open systems theory. Another important application of systems theory in organization development is open systems planning. You can use this model to analyze organizations with which you are familiar. If the organization¶s culture (informal organization) praises individual accomplishments and the work requires teamwork and collaboration.3. and information to the point of action." and which elements are poorly aligned? In companies showing outstanding performance. fit) must be present among the system¶s components¶ for the organization to produce satisfactory outputs. Systems models are essential for the practice of OD. and 2) Evaluating the "goodness of fit" or how well the elements "go together. giving information and feedback to the people doing the work. to the workers doing the job. . Principles such as optimizing the social and technical systems.socio-technical systems theory (STS) and open systems planning (OSP)-play an important role in organization development.

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

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

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

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

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

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

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

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

6. ³Work teams are building blocks of organizational development. In parallel learning structures members have to think and behave in ways that are different from the normal roles and rules of the organization.1. 3. A fundamental belief in OD is that work teams are the building blocks of organizations. OD interventions alter features of the work setting causing changes in individuals¶ behaviours.10 Summary The foundations of organizational development form the theoretical and practice underpinnings of the field. A _____________ is defined as ³a set of elements standing in interaction. which in turn lead to individual and organizational improvements is the principle of Porras and Robertson model organizational change.´ 5. First²order change is also called ___________. Unfreezing 2. Ralph Kilmann 3. 4. 4. 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. 6. What are the features of systems theory of organizational development? 5. What are first-order and second order change according to Burke-Litwin Model of organizational change? Explain. 3. ±±±±±±±±±± gave the model ³Beyond the Quick Fix´. ±±±±±±±±±± means moving to new level of behaviour. Bring out the essence of ³managing beyond the quick fix´ model of organizational development. Explain Kurt Lewin¶s models and theories of planned organizational change.12 Answers to SAQs and TQs SAQs: 1. Systems theory views organizations as open systems in active exchange with their environment. _____________ means sum of the efforts of team members is far greater than the sum of individual efforts of members.11 Terminal Questions 1.´ Comment on this statement. Transactional change . 6. The Burke-Litwin model emphasized on first-order and second-order change. Action research model combines learning and doing. 2. Ralph Kilmann specified the critical leverage points for organizational change. 2.

2 3. Synergy Answers to TQs: 1.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .4 Organization Culture and Effectiveness 7.2 Characteristics of Organization Culture 7. System 5. Refer section 6.6 Summary .Refer section 6. Refer section 6.3 Types of Organization Culture.2.1 Introduction Objectives 7.2.3 5.3 4. MU0002-Unit-07-Organization Culture and Climate Unit-07-Organization Culture and Climate Structure: 7.2. 7. Refer section 6. Refer section 6.4.1 2.5 Developing and changing Organization Culture Self Assessment Questions 7.

values. what members wear. Standards of behavior exist. terminology.7. do not do too little?´ . Some of the most readily agreed upon are the following: 1. Comprehensively organization culture is the pattern of basic assumptions that is invented. and rituals related to deference and demeanor. 7. · Describe different types of Organization Culture · Explain organization culture and effectiveness. Objectives: After studying this unit. Which in many organizations come down to ³Do not do too much. and feeling in relation to these problems (Schein. Practitioners are coming to realize that. Members of an organization soon come to sense the particular culture of an organization. You can tell the culture of an organization by looking at the arrangement of furniture. 2. ± similar to what you can use to get a feeling about someone¶s personality. norms and tangible signs (artifacts) of organization members and their behaviors. discovered. you will be able to: · Understand Organization Culture. despite the best-laid plans. Martin and Meyerson. Observed behavioral regularities. 1986). organizational culture is the personality of the organization. The concept of culture is particularly important when attempting to manage organization-wide change. for-profit corporation is quite different than that of a hospital which is quite different than that of a university. they use common language. For example. organizational change must include not only changing structures and processes. but also changing the corporate culture as well. including guidelines on how much work to do.7 Terminal Questions 7.2 Characteristics of Organization Culture Organizational culture has a number of important characteristics.8 Answers to SAQs and TQs 7. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. Culture is comprised of the assumptions. but everyone knows it when they sense it. When organizational participants interact with one another.1 Introduction Basically. what they brag about. · Discuss about developing and changing organization culture. Culture is one of those terms that¶s difficult to express distinctly. etc. Norms. the culture of a large. and validated enough to be taught to new members as the correct ways of perceiving. thinking.

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

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

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

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

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

goal approach. Explain the characteristics of organization culture. 7. Move quickly and decisively to build momentum and to defuse resistance to the new culture. 2. and strategic constituencies approach. are particularly driven by results and are often very competitive. ________cultures are outward looking. Discuss the development and change of organizational development. behavioural approach. intervening variables and end-result variables and there exists interrelationship among these variables.8 Answers to SAQs and TQs SAQs: 1. 3. _____are the visible manifestations of culture as seen in the physical and social environment of the organization. 3. Organizations to be successful must be efficient and effective. Stay the course by being persistent. 7. 2. Briefly explain different types of organizational culture.8. Effectiveness of an organization can be increased through economic man approach and administrative man approach. Market 3. 9. Organizational effectiveness can be measured through various approaches. Self Assessment Questions 1.6 Summary Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. Causal variables Answers to TQs: . Finally. 7. Factors in organizational effectiveness include casual variables. ___________are those factors that influence the course of development within an organization and its results or accomplishment.7 Terminal Questions 1. effectiveness through adaptive-coping cycle has been discussed. Artifacts 2. system-resource approach.

8 Acquiring and using Power Skills Self Assessment Questions 8.Power. Refer section 7.10 Terminal Questions .7 Operating in a Political Environment 8.3 3. Politics and Organization Development Structure: 8. Refer section 7.9 Summary 8. Politics and Organization Development Unit-08.6 The Role of Power and Politics in the Practice of OD 8.1.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 Power Defined and Explored 8.2 2.Power.5 Organizational Politics Defined and Explored 8.1 Introduction Objectives 8. MU0002-Unit-08.3 Two Faces of Power 8.4 Theories about the Sources of Social Power 8. Refer section 7.

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. 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. but kinetic power is the act of doing so. · Explain the role of power and politics in the practice of OD. Objectives: After this studying this unit. 8.1 Introduction Power and politics.2 Power Defined and Explored "Power is the intentional influence over the beliefs.´ ³A has power over B to the extent that he can get B to do something that B would otherwise not do. Potential power is the capacity to do so. must be understood if one is to be effective in organizations. · Acquire skills to handle power and politics in organizations.actions and the decisions that precede them. That criticism was essentially correct for many years although it is less valid today.´ Organization development has been criticized for not taking into account power in organizations. and for change to occur in an organization. The French word µpouvoir¶ stands for both the noun µpower¶ and the verb µto be able." "Power is defined in this unit simply as the capacity to effect (or affect) organizational outcomes. In this unit. As Warner Burke observes: "Organization development signifies change.¶ To have power is to be able to get desired things done. to effect outcomes. One person exerts power over another to the degree that he is able to exact compliance as desired.11 Answers to SAQs and TQs 8." ³Power is the ability of those who possess power to bring about the outcomes they desire. power must be exercised. 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. · Explain theories about the sources of power. we examine power and politics in relation to organization development. and behaviours of people. emotions. indisputable facts of organizational life.

In fact.Analyzing these definitions shows some common elements: effectance-getting one¶s way. humankind would not have much of the misery it does today. and lead. Without influence (power) people would have no cooperation and no society. The positive face of power is characterized by a socialized need to initiate. suggests that many problems with power stem from the goals of persons with power and the means they use. 8.4 Theories about the Sources of Social Power Power exists in virtually all social situations. influencing. We think this distinction provides a good insight into the concept of power. however. Power per se is probably neither good nor bad although Lord Acton observed that "power tends to corrupt. 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. According to him. How do some people come to possess power? How is power generated. both positive and negative. bestowed. The negative face of power seeks to dominate and control others. or positive. 8. and outcomes favoring one party over the other. Crushing. influence. persuading-these are examples of positive uses of power. forcing. coercing-these are examples of negative uses of power. or acquired? In this unit. and organizational activities. we will examine four different views about who gets power and how: · Emerson¶s "Power-Dependence theory. The phenomenon of power is ubiquitous. not the possession of power as such. Without leadership (power) directed toward warfare. Power-in-action may take many forms. confiscation. the act or ability of influencing others." Her research in four organizations showed both kinds of power. Roberts came to a similar conclusion in her study of "collective power" and "competitive power. absolute power corrupts absolutely. power being the predominant mode. being exercised. with collective. for organizations to function. it is through the use of power that things get done in the world. unsocialized need to dominate others." . In most organizations the positive face of power is much more prevalent than the negative face of power. spiritual. We therefore define interpersonal power as the ability to get one¶s way in a social situation. financial. the necessity of social interaction between two or more parties. technological. McClelland observed that while power has a negative connotation for most people. It is especially salient in coordinated activities such as those found in organizations. and repression." A moment¶s reflection. selling. political.3 Two Faces of Power David McClelland proposed an important distinction when he identified "two faces of power" ± positive and negative. hurting. humankind would not have the standard of living it does today. the negative face of power is characterized by a primitive. Leading. Without leadership (power) in medical. This positive face of power enables others to reach their goals as well as lets the person exercising power reach his or her goals. an authority or power dimension is required. the positive face of power seeks to empower self and others.

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

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.

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

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

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

This practical. 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. 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. arises from expertise. Networks are critical to effective performance for one compelling reason: Except for routine jobs. a person¶s power comes from two main sources. visibility-how much one¶s work is seen by influential people. how-to book on power and organization development is well worth studying. even those of little power. 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´.Personality y y y Going Around Formal System · Work around roadblocks · (Don¶t) use organization rules Charisma Reputation Professional credibility Finally. The power structure will realize that collaborative power is preferable to manipulation and deception. in turn. In this model. no one has the necessary information and resources to accomplish what¶s expected of them. . and legitimacy. effort. (Legitimacy refers to abiding by and promoting the values of the organization. then utilize a facilitative OD process in which the powerholders work on strategic business issues using consensus decision making to develop a corporate strategy. ³One of the most important ways of gaining power in an organization is by establishing a broad network of task and interpersonal relationships. influence key powerholders to accept the OD program. Personal power. Whetton and Cameron¶s model is shown in following figure. which in turn will protect the interests of all concerned. personal power and position power. criticality-how important one¶s job is flexibility-the amount of discretion in the job.) Position power derives from five sources: Centrality-access to information in a communication network. Indeed. personal attraction. and relevance-how important one¶s task is in relation to organizational priorities.

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

±±±±±±±±±± is made up of Charisma. and how. Organizational power is the ability of those who possess power to bring about the outcomes they desire.. 8. Referent power 4.10 Terminal Questions 1. emotions or behaviour of people. Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another. Define organization politics. Harold Lasswell . Organizational politics involve intentional acts of influence to enhance or protect the self-interest of individuals or groups. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics. McClelland 3. Power and politics are similar in nature. 5. ±±±±±±±± defined politics as the study of who gets what. reputation and professional credibility. 5. Describe briefly various theories of power. 3. Explain the role of power and politics in the practice of OD. Define power in an organizational context and explain types of power. and are amenable to positive control. 4. Power can be either positive or negative. Self Assessment Questions 1. when. 8. 2.9 Summary Power and politics are inseparable facts of organizational life. arise from known conditions. Organizational politics is defined as the study of who gets what. 8. ±±±±±± is the intentional influence over the beliefs. 4. Power based on the power-receiver having identification with the power holder is called ±±±± ±±±±±±±. 3. Strategic-contingency model of power asserts that power that accrues to the individuals. units or departments is most important in solving organizational problems. Identify the bases of individual power and the respective strategies for their success. _____________ has identified two faces of power.11 Answers to SAQs and TQs SAQs: 1. Power 2. when and how.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. 2.

Refer section 8.2 2.4 3. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .5 Quality Circles 9. Refer section 8.5. Personality Answers to TQs: 1. Refer section 8.3 Socio Technical Systems 9.1 Introduction Objectives 9.5 4.Refer section 8.6 5.2 Meaning and Definitions 9. Refer section 8.6 Quality of Work Life Projects .4 Management By Objectives 9.

· Explain Total Quality Management.9 Reengineering Self Assessment Questions 9.11 Terminal Questions 9. . In this dynamic and fluid environment. An organization development intervention is a sequence of activities. · Explain Reengineering. you will be able to: · Explain the Socio technical 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. organizational problems may repeat. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design. 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. Nothing is permanent except change because change is permanently changing. · Discuss the parallel Learning Structures. actions.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. Objectives: After studying this unit. These programs are derived from careful diagnosis.8 Total Quality Management 9. These interventions vary from standardized program that have been developed and sometimes tailored program.10 Summary 9. These methods are receiving increasing attention in Organization Development.7 Parallel Learning Structures 9.12 Answers to SAQs and TQs 9.9. events intended to help an organization improve its performance and effectiveness. · Discuss the Management By Objectives · Explain the Quality Circles.

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

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

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

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

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

including the use of quality circles.9 Reengineering It is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical. · Top management support on an ongoing basis. such as cost. It seeks to make such processes more efficient by combining. statistical quality control.8 Total Quality Management It is a long term effort that orients all of an organization¶s activities around the concept of quality. or restructuring activities without regard to present hierarchical or control procedures. · A major emphasis on continuous learning. Reengineering is a top-down process. ties reward to performance and increase workers knowledge and skills through extensive training. self-managed teams and task forces. statistical process control. · An emphasis on measurement using both statistical quality control and statistical process control techniques. 9. and speed. Self Assessment Questions . and extensive use of employee participation.TQM pushes decision making power downwards in the organization. It is also called continuous quality improvement.9. It is very popular in USA in 1990s. · Participative management. Reengineering focuses on visualizing and streamlining any or all business processes in the organization. service. Features that characterize TQM: · Primary emphasis on customers. · An emphasis on teams and teamwork. · Competitive benchmarking. assumes neither an upward flow of involvement nor that consensus decision making. A combination of a number of organization improvement techniques and approaches. eliminating. · Continuous search for sources of defects with a goal of eliminating them entirely. · Daily operational use of the concept of internal customers. provides relevant information to all employees. quality. contemporary measures of performance.

Intervention 2. What are the advantages of structural interventions? 3. MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. 9. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. actions. 3. events intended to help an organization improve its performance and effectiveness. structural Interventions compare quite favorably with all other alternatives. events intended to help an organization improve its performance and effectiveness. Write a short note on Total Quality Management. 9. __________ represents a participative approach to employee involvement in problem solving and productivity improvement. The term MBO was coined by _________ in 1964. 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. 9.1. From a benefit cost analysis. Explain Management By Objectives? 4. 2. provides relevant information to all employees. Drucker 3.10 Summary An organization development intervention is a sequence of activities. Discuss Socio Technical Systems? 2.12 Answers to SAQs and TQS SAQs: 1. TQM pushes decision making power downwards in the organization. It is also called continuous quality improvement. ties reward to performance and increase workers knowledge and skills through extensive training. Quality circle Answers to TQs: . Sociotechnical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs.11 Terminal Questions 1. An organization development __________ is a sequence of activities. There are a number of reasons why a consultant should consider employing a structural intervention. actions.

8 Terminal Questions 10.3 2.2 3.6 Methods of Reducing Resistance to Change. 10. Refer section 9.4 Causes for Resistance to Change. Refer section 9.Refer section 9. Self Assessment Questions 10.5 Impact of Change on the Future Manager 10. MU0002-Unit-10-Managing Change in Organization Development Unit-10-Managing Change in Organization Development Structure: 10.3 Resistance to Change 10.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .1 Introduction Objectives 10.9 Answers to SAQs and TQs .7 Summary 10.5 4.1. Refer section 9.2 Nature of Change 10.

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

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

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.

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

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

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

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

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

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

6. New Delhi. · Harigopal K. Participation Answers to TQs: 1.8 Terminal Questions 1. Bell. eighth edition. at the level of individual and at the level of group.Response Books. Problem of overcoming resistance to change can be handled at two levels.complaints. Reference: · Wendell L. Organization Development.4 3. Jr. engaging in a work showdown. Refer section 10. P. Organizational change 2. N. . Discuss the methods of reducing resistance to change. P. · J. Principles and Practices. that is. Explain the nature of change? 2. Prentice-Hall of India Private Limited. threatening to go on strike. Modern Organization Development and Change. Why do organizations resist change? 3. · Cummings & Worley.2 of Organization Change. 10. Psychological factors 3. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. 10. Refer section 10.9 Answers to SAQs and TQS SAQs: 1. Thomson · Daft Richard L. through group dynamics. or the like. Regal Publications New Delhi. Organization Theory and Design. Organization Development & Change.Singh.. Jain. both at the formal and informal levels. Thomson South Western. New Delhi. French and Cecil H. Refer section 10..

New Delhi. New Delhi. Anmol Publications Sultan Chand & Stoner and R. 12th edition.pdf http://www.htm#anchor73776 Copyright © 2009 SMU Powered by Sikkim Manipal University .kyoto-u.wdi. Chhabra.work911.oup. Ltd.htm Prentice-Hall of India.umich.cfm http://www. · T.pdf Pvt. Educatiional Publishers.html http://muse. · Stephens P. Edward http://www. Organizational Organizational· James A. F.managementhelp. · Stephen P. Organizational www.managementtoday.pdf http://www.umich.pdf .bus. New Delhi. Dhanpat Rai & Co. Principles & Practice of Management. N. Robbbins.htm#TopOfPage http://www. Prentice-Hall of India. Prentice-Hall New Robbins.fao.lib.kurims. Prasad.umd. · Laxmi Devi. M. Management. · L. Management. E References y y y y y y y y y y y

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