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

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

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

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

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

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

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

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

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

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

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

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

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

4 Organizing . 3. Refer section 1. teamwork Answers to TQs: 1. Bring out the difference between Administration and Management.1 Introduction Objectives 2.10 Answers to SAQs and TQs SAQs: 1. manpower 3. Refer section 1.2.7 Copyright © 2009 SMU Powered by Sikkim Manipal University . materials. 1. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.5 3.2 Process of Management 2.1.3 Planning 2. Management 2. Money.2.3 2. Refer section 1. Discuss the importance of management.

9 Terminal Questions 2. in recent time. you will be able to: · Define Management process. Management functions are as follows (Fayol. Coordinating 5.5 Staffing 2. .1 Introduction Follett (1933) defined management as "the art of getting things done through people´. Controlling However. 1949): 1. Commanding 4. Organizing 3.2.8 Summary 2. Motivating.6 Directing 2. Organizing.10 Answers to SAQs and TQs 2. · Explain different functions of management Process.7 Motivating Self Assessment Questions 2. One can also think of management functionally. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent. as the action of measuring a quantity on a regular basis and of adjusting some initial plan. Planning 2. Directing. management functions have been regrouped into four categories. Objectives: After this studying this unit. Staffing. · Explain Planning.

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

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

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

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

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

Through direction. 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´. induction. A manger needs to give orders to his subordinates. It is a continuous function: With the growth and expansion of business additional manpower is needed. promotion. 8. Direction is continuous process and it continues throughout the life-time of the organization. on the other. Definition According to Koontz and O¶Donnel. Thus staffing is an ongoing process through ± out the life of an organization. identifying the manpower requirements. Direction is an important managerial function. 3. etc. Direction imitates at the top level in the organization and follows to bottom through the hierarchy. . lead them and guide them on a continuous basis. It is a continuing function. resignation. 4. Direction function is performed at every level of management. to provide superiors opportunities for some more important work which their subordinates cannot do. 7. 2. Personnel policies and programs must be formulated as guides to perform the staffing function effectively.6 Directing Direction is one of the functions of management. selection. Direction is the managerial function of guiding. It is performed in the context of superior-subordinate relationship and every manager in the organization performs his duties both as a superior and subordinate. Direction has dual objectives. It is instructing people as to what to do. It is an important managerial function. training development and maintenance of personnel. It is a process: it is a process having a logical sequence i. Characteristics of Direction The characteristic features of direction are as follow: 1. it aims at getting things done by subordinates and. On the one hand. It emphasizes that a subordinate is to be directed by his own superior only. vacancies arise out of retirement. 5.e. overseeing and leading people. recruitment. motivate them. how to do and telling them to do to the best of their ability. 2.6. management initiates actions in the organization.

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

Physiological and safety needs are described as lower-order. Workers need to be closely supervised and a comprehensive system of controls and a hierarchical structure is needed to supervise the workers closely. It is also assumed that workers generally place security above all other factors and will display little ambition. and achievement. From the above. interpersonal relations. esteem. but their presence does not motivate or create satisfaction. company policy. Theory X and Theory Y Douglas McGregor argued that a manager¶s view of the nature of human beings is based on a certain grouping of assumptions and he or she tends to mould his or her behavior toward employees according to these assumptions. and salary are hygiene factors. Theory Y ± In this theory management assumes employees may be ambitious. Motivators are intrinsic factors. supervision. recognition. such as. It is believed that employees enjoy their mental and physical work duties. advancement. such as. . Extrinsic factors. if given the chance employees have the desire to be creative and forward thinking in the workplace. Social. 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. Lower-order needs are predominantly satisfied. it is clear that Theory X assumes that lower-order needs dominate individuals. and self-fulfillment Maslow separated the five needs into higher and lower orders. Presence of these factors ensure job satisfaction. Theory X ± In this theory management assumes employees are inherently lazy and will avoid work. Theory Y assumes that higher-order needs dominate individuals. working conditions. if they can. externally. self-direction. Herzberg¶s Two Factor Theory Herzberg (1959) constructed a two-dimensional paradigm of factors affecting people¶s attitudes about work. whereas. It is also believed that. These two factors are motivators and hygiene factors and this theory is also called motivation-hygiene theory. The absence of hygiene factors can create job dissatisfaction. and self-actualization are classified as higher-order needs.· Self-actualization: The drive to become what one is capable of becoming. anxious to accept greater responsibility. and exercise self-control. achieving one¶s potential. autonomy and empowerment. responsibility. includes growth. Higher-order needs are satisfied internally. self-motivated.

It involves many sub-functions such as manpower planning. 2.8 Summary Management is the art of getting things done through people. establishing strategies for achieving these goals. many related to the tasks being performed. The _____analysis begins with a scan of the external environment. emphasize factors intrinsically rewarding that are associated with the work itself or to outcomes directly derived from it. ____defined management as the art of getting things done through people. _______refers to the managerial function of determining and improving the manpower requirements of an enterprise. Self Assessment Questions 1. and developing plans to integrate and coordinate activities. who is to do. 2. how the tasks are to be grouped. who reports to whom. Hygiene factors on the other hand. structuring. and coordinating the work components to achieve organizational goal. recruitment. Staffing refers to the managerial function of determining and improving the manpower requirements of an enterprise. 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. Organization involves designing. Job satisfaction factors are separate and distinct from job dissatisfaction factors. When hygiene factors are adequate. Directing is the interpersonal aspect of managing by which subordinates are led to understand and co-ordinate effectively and efficiently to the attainment of enterprises goals.In summary. Removing dissatisfying characteristics from a job does not necessarily make the job satisfying. people will not be dissatisfied. and where decisions are to be made. neither will they be satisfied. 2. 2. It is the process of determining what tasks are to be done.9 Terminal Questions 1. have to do with a person¶s relationship to the context or environment in which she or he performs the job. Every organization needs to plan for change in order to reach its set goal.10 Answers to SAQs and TQs SAQs: . motivators describe a person¶s relationship with what she or he does. performance appraisal etc. To motivate people. Explain Staffing in detail 3. Write a short not on directing. Planning involves the process of defining goals. 3. What is planning? 2.

5 3.6 OD and Management Development 3. Staffing Answers to TQs: 1.1 Introduction Objectives 3.3 Characteristics of OD 3.3 2.4 Categories of OD 3. Reference 2. Reference 2.7 Role of OD 3. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3.5 Goals of OD 3. Follett 2.2 Definitions 3.6 Copyright © 2009 SMU Powered by Sikkim Manipal University .1. SWOT 3. Reference 2.8 Problems in OD .

OD focuses on issues related to the ³human side´ of organizations by finding ways to increase the effectiveness of individuals. old jobs are being destroyed at an accelerating pace. Organization development is a relatively recent invention. fighting obsolescence of one¶s knowledge and skills. strategy. the answer is ³yes´.Self Assessment Questions 3. challenges from turbulent environments. culture. and even prosper in these vexing times? Fortunately. Are any strategies available to help people and organizations cope. organizations and the individuals in them face an enormously demanding present and future. conflict resolution. efficiency. survive. organization structure. maintaining dignity and purpose in pursuit of organizational goals. Basically.10 Terminal Questions 3. Although new jobs are being created at record rates. increased competition. adapt. and profitability. A variety of solutions exists. In summary. . and the organization¶s human and social processes. Keeping organizations healthy and viable in today¶s world is a daunting task. and processes. and learn how to do that better and better over time. and the like. organization development represents one of the best strategies for coping with the rampant changes occurring in the marketplace and society. teams. 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. 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. and the constant challenge to maintain congruence among organizational dimensions such as technology. strategy formulation and implementation. And organization development (OD) is one of them. and achieving human connectedness and community in the workplace. organization development is a process of teaching people how to solve problems.11 Answers to SAQs and TQs 3. We predict that organization development will be preferred improvement strategy in future. Simple survival ± continuing to have an adequate job ± is a major challenge today in the light of constant layoffs and cutbacks. and attention was soon directed toward other human and social processes in organizations such as the design of work tasks. Individuals in organizations likewise face multiple challenges ± finding satisfaction in and through work. Early returns were encouraging. Today.9 Summary 3.1 Introduction Organization development is the applied behavioural science discipline dedicated to improving organizations and the people in them through the use of the theory and practice of planned change. ³Knowledge´ work is replacing ³muscle´ work. Organizations face multiple challenges and threats today ± threats to effectiveness. take advantage of opportunities. and changing customer demands.

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

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

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

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

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

interactive. Organization Development is inextricably linked with action. Thus. Emphasis on Intervention and Action Research: OD approach results in an active intervention in the ongoing activities of the organization. and adaptability for the organization as a whole. 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¶. rather. he conducts surveys. Rather. and revitalization. joint goals and means. They discourage µdo it yourself¶ approach.efforts take an organization as an interrelated whole and no part of it can be changed meaningfully without making corresponding changes in other parts. 3. 6. 7. evaluates these data. growth. Action research is the basis for such intervention. takes actions for intervention. and then. He designs intervention strategies based on these data. or isolated problems. further more. OD focuses on the elevation of an organization to a higher level of functioning by improving the performance and satisfaction. (b) Problems of human satisfaction and development. or catalyst. it is a programme with a purpose that is to guide present and future action. OD efforts are not one-shot actions. 5. At the individual level. and integrate individual and organizational goals. all types of experience requiring Organization Development efforts may be grouped into three categories: (a) Problems of destiny. Long-range Change: OD efforts are not meant for solving short-term. Participation of Change Agent: Most OD experts emphasize the need for an outside. 3. collects relevant data. and mutual influence. Key areas are the normative type of model. A change agent in OD process does not just introspect the people and introduce changes. rather. This is done to arrive at certain desirable outcomes that may be in the form of increased effectiveness. so the methods of attaining these goals should also change. The change agent is a humanist seeking to get a humanistic philosophy in the organization. Dynamic Process: OD is a dynamic process and includes the efforts to guide and direct changes as well as to cope with or adapt changes imposed. the importance and centrality of goals and objectives and the different role requirements . problem-solving. He shares a social philosophy about human values. OD attempts to provide opportunities to be µhuman¶ and to increase awareness. temporary. It recognizes that organizational goals change. and (c) Problems of organizational effectiveness. There is a close working relationship between the change agent and the target organizational members to be changed. The relationship involves mutual trust. identity. and cyclic processes. third party change agent. 4.4 Categories of OD Programmes In general. participation. they are ongoing.

(c) The interventions are directed towards problem-solving and improved functioning for the client system.of the consultant change agent vis-à-vis the clients. its underlying theory and assumptions and some of the pitfall and challenges in attempting to improve organizations through behavioural science. 3. yet following features are common to most of the programmes: (a) The client is a total system or major subunit of total system. (d) To build trust among persons and groups throughout an organization. practitioners and the client laymen. like other normative re-educative programmes. problem solving climate throughout an organization. should begin with a clear-cut statement of specific objectives and criteria for determining if these objectives have been met from the stand point of the employee/employees simply as team member or for the total group. (b) The interventions are primarily directed towards problems and issues identified by the client group. Two important elements of Organization Development are. second. (g) To increase the sense of µownership¶ or organization¶s objectives throughout the work force. This Organization Development progrmmes. We need to examine carefully the techniques of Organization Development. (b) To supplement the authority associated with role or status. . (f) To develop a reward system which recognizes both the achievement of the organization¶s goals (profit or service) and development of people. (e) To make competition more relevant to work goals and to maximize collaborative efforts. Although Organization Development Programmes vary. first. the element which links Organization Development with the scientific method of inquiry and.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. the collaborative relationships between the scientists. with the authority of knowledge and competence. and (d) The interventions are based on behavioural science theory and technology.

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

Focus on design. . Trained specialists required. Long-range strategy for organizational innovation and renewal. To increase the openness of communications in all directions-vertically. 6.8 Problems in Organization Development Organization development. In early 60s. 4. OD became quite successful with many professional consultants offering high services and programmes to various organizations. To increase the level of enthusiasms and personal satisfaction at all levels of the organization. By 70s. it is quite suitable for improving organizational performance on long-term basis. 5. Since OD attempts to bring comprehensive change in the organization. To increase the level of self and group responsibility in planning and its implementation. Train and equip employees and managers to perform better in existing organization. Thus. No special requirement. Problem-solving approach. 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 place emphasis on humanistic values and goals consistent with these vales. not on the managers. substantial disenchantment with OD became evident because of many controversial OD techniques like sensitivity training. has invited sharp criticism as a strategy to increase organizational viability and effectiveness because many OD programmes have failed. To increase the level of trust and mutual emotional support among all organization members. 3. however. however. To treat each human being as a complex person with a complex set of needs important in his work and his life. as a long-term strategy for organizational change. The basic problem in a change effort which is not comprehensive is that it does not work properly unless there is a proper change in the internal environment of the organization in which people work. focus on achieving improvement in design. 3. To create an environment in which authority of assigned role is augmented by authority based on knowledge and skills.Focus Approach Time Specialist accomplishments. 7. 2.7 Role of Organization Development Organization development. Educative and training Short-range. 3. plays key role in organizational improvement. and laterally. horizontally.

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

5. 3. _____________is a short-term strategy. Explain the various characteristics of OD. Top management 2. problem-focused µnature of OD¶ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. Peter Senge . Organization development should be led and supported by ±±±±±±±. The participative. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides.11 Answers to SAQs and TQs SAQs: 1. 4. But OD aims at changing the entire organizational climate where the managers work. 3. Distinguish between µorganizational development¶ and µmanagement development¶. 3. Who is associated with the ³Learning Organizations´? 5. 2. Management development aims at developing the managers individually. Empowerment 4. collaborative. 4. OD focuses on culture and processes. OD is the ultimate remedy for organizational improvements and developments. ±±±±±±±±± is a process which includes leadership behaviours and human resource practices. State the various roles of OD. There is no µquick fix¶ to organizations¶ problems. 2. 3.10 Terminal Questions 1.1. Define OD. Tom Peters 3. ±±±±±±± is associated with ³Liberation Management´.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. What are the problems involved in the implementation of OD? 3. Explain its salient features.

MU0002-Unit-04. Refer section 3.1 Introduction Objectives 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 3. Management development Answers to TQs: 1.2 Survey Feedback 4.3 Process Consultation 4.Organization Development ± Interventions Structure: 4.4 Grid Training 4.2 2. Refer section 3.5 Leadership Development 4.7 5. Refer section 3. Refer section 3.6 4.Organization Development ± Interventions Unit-04.3 3.6 Team-building .5.

Historically. and organizational level. management grid. team-building. techno-structural activities. process consultation. 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. 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.12 Answers to SAQs and TQs 4. interventions may be required to change people at all these levels.7 Inter Group Development 4. survey feedback. Further. work group. various consultants and practitioners have different opinions about the activities which can be included in interventions. inter-group level. However. many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others. People¶s behaviour may be relevant to understand at individual level.11 Terminal Questions 4. the classification appears to be more relevant because it may specify the range of change that an organization requires. Interventions constitute the action thrust of organization development.9 Role of Change Agents Self Assessment Questions 4. education and training. other techniques like process . and survey feedback method. Nevertheless. interpersonal level. mediation and negotiation activities. Subsequently. 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. Thus.8 Change Agents 4.1 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.10 Summary 4. and organizational culture. Therefore. grid training. 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.´ There are various OD interventions and they are classified in different ways. OD efforts were attempted through sensitivity training. they make things happen. group level. French and Bell have suggested twelve families of OD interventions: diagnostic.4. For example. the classification of OD interventions shows variation. inter-group activities.

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

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

lead. it appears that this type of educational strategy can help to make significant contributions to organizational effectiveness. Further. During drastic change times. concerned and committed to their welfare. clearly the most important determinant of "getting through the swamp". while at the same time . Developing Ideal Strategic Corporate Model: At this stage. the various efforts from phase 1 to phase 5 are evaluated and critical analysis is made. The Role of Leadership In an organization where there is faith in the abilities of formal leaders. The members of the organization are trained for achieving this excellence. therefore. confident and effective decision-making. 4. In this light. and credibility of senior and middle management. The analysis will bring out the shortcomings that may be there. they maintained the same stand. the various programmes may be redesigned. 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. employees will expect effective and sensible planning. complete communication that is timely. grid training is a non-rigorous method. If you are to manage change effectively. We can call these Preparing For the Journey. 5.5 Leadership Development When change is imposed (as in downsizing scenarios). is the ability of leadership to«well. Furthermore. Also during these times of change. it discounts reality.4. the focus shifts to the total organization and to develop skills necessary for organizational excellence. Each group may be given assignment to evolve strategy for making ideal organization with the help of the consultant. some of them have not supported the claims made by Blake and Mouton. The action is designed to identify the characteristics of the ideal organization. employees will look towards the leaders for a number of things. competence. and regular. employees will perceive leadership as supportive. The strategy is then implemented. grid training has some positive contributions for organizational effectiveness. and After Arrival. Evaluation of Grid Training Most of the support of grid training has come from its originators-Blake and Mouton.´ In a later work. Slogging Through The Swamp. They have maintained that ³managerial and team effectiveness can be taught to managers with outside assistance. 6. Though research studies on the application of grid training are not many. you need to be aware that there are three distinct times zones where leadership is important. Systematic Critique: In this stage. Grid training programme is criticized on the basis that it lacks contingency approach and. The literature on the subject indicates that the nature of the change is secondary to the perceptions that employees have regarding the ability. We will look more carefully at each of these. in spite of these criticisms.

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

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

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

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

their value systems. 4. Analyzing how team¶s goals and priorities are linked to those of the organization. Setting goals and priorities for the team. personality and attitudes. At this stage. For achieving these. The role of communication is important in this context because it will help in clarifying the actual problems to the members. Fig. In problem identification. The consensus-seeking part of the process necessitates that each person becomes thoroughly aware and understand clearly the basic concepts of team-development. group problems to even personal problem. 4. Analyzing the relationships among the members who are performing the job. . Examining Differences: The perception of people on an issue differs because of their differing backgrounds. Much of the problems may be solved through effective communication and training sessions. recognition. 1. 2. Providing substantial time together in which new information is constantly shared. the team-building exercise proceeds in a particular way as shown in figure. and rewards.4. Often the team itself defines which aspects of team-building it wishes to work on. the emphasis should be on consensus. and 5. and 5. 3.2: Process of Team-building Various steps of team-building process are not one-shot action. 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. they are repetitive and cyclical as indicated by arrows in the figure. generally most of the members come forward with their arguments as to what the real problems are. Analyzing how the work is performed. 2. Problem-sensing: There are a number of ways in which problems of a team can be obtained. This problem can better be identified in terms of what is hindering group effectiveness. rather. such as. Providing positive feedback. 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. Analyzing how the team is working.

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

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

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

Data collection. The trainer role is most widely and intensively used at all stages of a change project: unfreezing. group. The first step in survey feedback is ______ usually by a consultant based on a structured questionnaire. Self Assessment Questions 1. He has to educate people on the need and importance o change using a variety of methodologies ± lectures. generation of new behavioral science knowledge. skills and change in behavior. Grid training focuses on individuals and groups to assess their own strengths and weaknesses. knowledge and processes necessary for effectiveness at the individual. Survey feedback usually proceeds with sequential activities involving data collection. team-work does not necessarily spurt group efforts 4. cases and experiential learning etc. group discussions. films. It focuses on skills. ________is antithesis of synergy in team-work which suggests that people working together on a common task may actually decrease their individual efforts. 2. 4. 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. presentations. widely accepted and applied OD intervention for organizational improvement. attitudes and beliefs.11 Terminal Questions 1. developing action plans based on feedback and follow-up. What is Grid Training? How does it help in improving individual performance in an organization? . 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. Sensitivity training focuses on small group ranging from ten to twelve. In process consultation. 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. Grid Training was developed by ±±±±±±±±±±±± 3.A change agent needs to be a trainer and educator. feedback of information. diagnosis. Useful hypothesis are to be formulated and tested.10 Summary OD intervention strategies are various activities which a consultant and client organization performs for improving organizational performance. inter-group and total organization levels. Team-building is most important. role-plays and instruments. Training is required for enhancing knowledge. Training is used both in µcontent orientation¶ and process orientation¶. changing (intervening) and refreezing.

Assumptions.2. Explain Change agents and discuss the role of change agents in detail. Social loafing Answers to TQs: 1.4 2. Data collection 2. Refer section 4. What is team-building? What are the stages of life cycle of a team? 4. What is survey feedback as an intervention of OD? How does it provide base for other OD interventions? 3. Blake and Mouton.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . and Beliefs in Organization Development Unit-05-Values.2 3. and Beliefs in Organization Development Structure: 5.1 Introduction . 4. Refer section 4. Refer section 4. 3. Refer section 4. MU0002-Unit-05-Values.12 Answers to SAQs and TQs SAQs: 1.6 4. Assumptions.

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

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

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

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

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

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

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

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

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

beliefs and assumptions are cognitive facts. but are widely accepted today. 5. What was the outcome of Hawthorne Experiments? 4.8 Answers to SAQs and TQs SAQs: 1. Cognitive . Self Assessment Questions 1. 3. The concept of ±±±±±±±±±± was introduced by MaxWeber. 2. The outcome of ±±±±±±±± was that people were not cogs and organizations were not machines. This discussion was intended to articulate an appreciation of OD values and explain where they came from. 5. optimistic and democratic. _______________ gave theory X and theory Y.The field of organization development rests on a foundation of values and assumptions about people and organizations. OD values tend to be humanistic. beliefs and assumptions. These OD values were considered revolutionary when they emerged in the 1950s. Taylor¶s principles of scientific management. __________ is associated with scientific management. These beliefs help to define what OD is and guide its implementation. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. Values.7 Terminal Questions 1. values. 2. 5. Values are also beliefs. Values. assumptions and beliefs help to define what OD is and guide its implementation. 3. A belief is a proposition about how the world works that the individual accepts as true. 4.6 Summary The field of OD rests on a foundation of values and assumptions about people and organizations. Define concepts. and assumptions are all ±±±±±±±±±± facts. Values. 5. beliefs. State the assumptions of Theory X and Theory Y. Write a note about F. Chronology of events in management and OD tremendously influenced OD practitioners.W.

2.3 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 2. Douglas McGregor Answers to TQs: 1.2 Beyond the Quick Fix . Refer section 5.2 Models and Theories of Planned Change 6.1 Introduction Objectives 6.3 3. Refer section 5.2. Refer section 5. Bureaucracy 4. F. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.1 Kurt Lewin and Friends 6. Refer section 5. Taylor 3. Hawthorne experiments 5. Refer section 5.2.3 4.3 5. W.

8 Applied Behavioural Science 6.1 Introduction This unit describes the foundations of organization development theory and practice.5 Teams and Teamwork 6.6.10 Summary 6.3 The Burke-Litwin Model of Organizational Change 6.2.3 Socio-technical Theory and Open Systems Planning 6. In this discussion.11 Terminal Questions 6.3. Objectives: After studying this unit. you will be able to: .12 Answers to SAQs and TQs 6.1 The Nature of Systems 6.4 Porras and Robertson Model of Organizational Change 6.2 Congruence among System Elements 6. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning.3. art and science which form the knowledge base upon which OD is constructed.6 Parallel Learning Structures 6.7 A Normative ± Re-educative Strategy of Changing 6.3 Systems Theory 6.2.3.3.9 Action Research Self Assessment Questions 6.4 Open Systems Thinking 6.4 Participation and Empowerment 6.

and specify the relationships among the variables. 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 6.2 Models and Theories of Planned Change Organization development is planned change in an organizational context. · Explain normative-re-educative strategy of changing The knowledge base of OD is extensive and is constantly growing.· Explain various models and theories of planned change. in words or pictures. Here we describe what we believe are the most important underpinnings for the field. · Realize the importance of teams and teamwork.2. Planned change theories are rudimentary as far as explaining relationships among variables. That is. 6. · Describe the parallel learning structures. Several recent theories show great promise for increasing our understanding of what happens and how it happens in planned change. but pretty good for identifying the important variables involved. the important features of some phenomenon. the status quo-whatever is happening right now-is the result of forces pushing in . · Explain the terms µparticipation¶ and µempowerment¶. The first idea states that what is occurring at any point in time is a resultant in a field of opposing forces. Here we provide a framework for thinking about planned change by exploring several models from the literature. The development of models of planned change facilitated the development of OD. · Explain systems theory. describe those features as variables. Models and theories depict.1 Kurt Lewin and Friends Kurt Lewin introduced two ideas about change that have been influential since the 1940s.

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

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

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

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

and systems (policies and procedures) result in first-order change. organizational culture is defined as deep-seated assumptions. management practices. leadership. 6. Changing culture is much more difficult than changing climate. and beliefs that are enduring. in turn. friendly or unfriendly. management practices. Now let us look at the Burke-Litwin model. individual and organizational performance. These two concepts come from leadership research which found that some leaders are capable of obtaining extraordinary performance from followers while other leaders are not. The premise of the BurkeLitwin model is this: OD interventions directed toward structure. We will do so in several steps.Organizational climate is defined as people¶s perceptions and attitudes about the organizationwhether it is a good or bad place to work.1: The Transactional Factors Involved in First ± Order Change . Transactional leadership is sufficient for causing first-order change. and organization culture result in second-order change. and difficult to change. Transactional leaders are "leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements." Transformational leadership embodies inspiration which leads to new heights of performance. interventions directed toward mission and strategy. Transformational leadership is required for causing second-order change. Following figure shows the factors involved in first-order (transactional) change. These perceptions are relatively easy to change because they are built on employees¶ reactions to current managerial and organization practices. On the other hand." Transactional leadership embodies a fair exchange between leader and follower that leads to "normal" performance. and so forth. hard-working or easy-going. 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. Transactional leadership is required to make this change in organizational climate. Changing structure. The model also makes a distinction between transactional and transformational leadership styles. Fig. and systems cause changes in work unit climate. which change motivation and. often unconscious. values.

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

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

Systems .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. and Katz and Kahn were the first to apply open systems theory to organizations in 1966. Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950. Fig.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. describes the characteristics of systems. 6. 6. and shows how systems theory enhances the practice of OD.5: A Change-based Organizational Framework 6.Fig.

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

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

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

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

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

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

research. Theory. They must see themselves as having freedom and discretion. and relationships if they are to be effective. employees must choose to be empowered. teams at 3M generate the hundreds of innovations that keep 3M ahead of its competition. Quinn and Spreitzer conclude: ³Empowerment. processes. Synergy is a principal reason teams are so important. Second. they must if personally connected to the organization. While management can create a context that is more empowering. people must work together to accomplish them. to name just a few. teaming. as a team. STS (socio-technical systems). systems.both views contain valid ideas: for example. is not something that management does to employees. QCs (quality circles). and capable of having an impact on the system in which they are embedded. but rather a mindset that employees have about their roles in the organization. HPOs (high-performance organizations). changes those norms and values. and team-related acronyms abound-SDTs (self-directed teams). crossfunctional "design-build" teams developed the Boeing 777. the organic approach unleashes talent and energy in people that are best channeled by providing clear guidelines and boundaries. and practice attest to the central role teams play in organizational success.´ 6.5 Team and Teamwork A fundamental belief in organization development is that work teams are the building blocks of organizations. Teams and teamwork are "in. Teams and teamwork are among the "hottest" things happening in organizations today ± gurus extol the virtues of teams. confident about their abilities. Teams are important for a number of reasons: First. the sum of the efforts of team members is far greater than the sum of the individual efforts of people working alone. much individual behaviour is rooted in the socio-cultural norms and values of the work team. The message of this section is that putting those empowered individuals into teams creates extraordinary effects on performance and satisfaction. the effects on individual behaviour are immediate and lasting. HPWSs (high-performance work systems). Team Taurus developed Ford¶s best-selling automobile. Team Saturn produced the Saturn automobile. The previous discussion focused on empowerment and concluded that the act of empowering individuals greatly increased their performance and satisfaction. A second fundamental belief is that teams must manage their culture. Third. then. 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. many tasks are so complex they cannot be performed by individuals. the noun team has become a verb. If the team. Teams at Motorola produced its bestselling cellular phones. . that is. teams create synergy.

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

Parallel learning structures are often the best way to initiate change in large bureaucratic organizations. 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. a steering committee and working groups were used to co-ordinate the employee involvement teams. The quality of work life programs of the 1970s and 1980s used parallel structures composed of union leaders.´ Parallel structures help people break free of the normal constraints imposed by the organization. projects will be performed by teams. Parallel learning structures are a foundation of OD because they are prevalent in so many different OD programs. Projects are the work of the future. talking. and acting differently than normally takes place at work. 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. specially created organizational structures for planning and guiding change programs.Tom Peters asserts in Liberation Management that cross-functional. deciding. autonomous. High-performance organizations often use parallel structures to co-ordinate self-directed teams. flexible response. especially when the change involves a fundamental shift in the organization¶s methods of work and/or culture. 6.6 Parallel Learning Structures Parallel learning structures. At Ford Motor Company. and initiate needed changes. clear objectives. engage in genuine inquiry and experimentation. He uses examples from EDS (Electronic Data Systems). It isn¶t the supplemental structure that¶s important. The most important and difficult task for the people creating the parallel learning structure is to create a different culture within it. Union Pacific Railroad. superior customer service. you don¶t have a parallel structure. and report to one of your subordinates on another team.´ The purpose of the collateral organization is to deal with "ill-structured" problems the formal organization is unable to resolve. In essence. Titeflex. and high accountability drive these project teams to outperform traditional organization structures on every measurable dimension. Most socio-technical systems redesign efforts and open systems planning programs use parallel structures. What¶s important is that people act in a way that promotes learning and adaptation. empowered teams are what the best organizations are using right now to outdistance the competition. Considerable experimentation with collateral organizations occurred in the 1970s and 1980s. Bushe and Shani say: ³The key thing about parallel structures is that they create a bounded space and time for thinking. managers. and continuous learning. If you don¶t implement different norms and procedures.7 A Normative ± Re-educative Strategy of Changing . constitute another important foundation of organization development. parallel structures are a vehicle for learning how to change the system. and then leading the process. normal hierarchical considerations become obsolete for these project teams-you could be the boss of one team. and employees. and countless other organizations to demonstrate the ability of small project teams to produce high quality. Asea Brown Boveri. High responsibility. 6. Interestingly.

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

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

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

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. ±±±±±±±±±± gave the model ³Beyond the Quick Fix´. 6.12 Answers to SAQs and TQs SAQs: 1. Ralph Kilmann specified the critical leverage points for organizational change. In parallel learning structures members have to think and behave in ways that are different from the normal roles and rules of the organization. ±±±±±±±±±± means moving to new level of behaviour. What are the features of systems theory of organizational development? 5. Bring out the essence of ³managing beyond the quick fix´ model of organizational development. OD interventions alter features of the work setting causing changes in individuals¶ behaviours. Unfreezing 2. 2. 2. Explain Kurt Lewin¶s models and theories of planned organizational change. 3. What are first-order and second order change according to Burke-Litwin Model of organizational change? Explain. Systems theory views organizations as open systems in active exchange with their environment. A _____________ is defined as ³a set of elements standing in interaction.1. The Burke-Litwin model emphasized on first-order and second-order change.11 Terminal Questions 1. 3. 6.´ Comment on this statement.´ 5. Ralph Kilmann 3. Action research model combines learning and doing. _____________ means sum of the efforts of team members is far greater than the sum of individual efforts of members. First²order change is also called ___________.10 Summary The foundations of organizational development form the theoretical and practice underpinnings of the field. 4. which in turn lead to individual and organizational improvements is the principle of Porras and Robertson model organizational change. ³Work teams are building blocks of organizational development. A fundamental belief in OD is that work teams are the building blocks of organizations. 4. Transactional change . 6.

Refer section 6.3 5. System 5.4. Refer section 6. Refer section 6.Refer section 6.2.2 Characteristics of Organization Culture 7. MU0002-Unit-07-Organization Culture and Climate Unit-07-Organization Culture and Climate Structure: 7.2.1 Introduction Objectives 7.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 6.2 3. 7.5 Developing and changing Organization Culture Self Assessment Questions 7.4 Organization Culture and Effectiveness 7.3 Types of Organization Culture.6 Summary .1 2.3 4. Synergy Answers to TQs: 1.2.

for-profit corporation is quite different than that of a hospital which is quite different than that of a university. organizational culture is the personality of the organization. organizational change must include not only changing structures and processes. You can tell the culture of an organization by looking at the arrangement of furniture. what members wear. Some of the most readily agreed upon are the following: 1. The concept of culture is particularly important when attempting to manage organization-wide change. and feeling in relation to these problems (Schein. but also changing the corporate culture as well. Observed behavioral regularities. including guidelines on how much work to do. Culture is one of those terms that¶s difficult to express distinctly. but everyone knows it when they sense it. 2.7 Terminal Questions 7.7. despite the best-laid plans. discovered. Members of an organization soon come to sense the particular culture of an organization. what they brag about. ± similar to what you can use to get a feeling about someone¶s personality.8 Answers to SAQs and TQs 7. 7. Objectives: After studying this unit. you will be able to: · Understand Organization Culture. do not do too little?´ . thinking. Martin and Meyerson.1 Introduction Basically. and validated enough to be taught to new members as the correct ways of perceiving. When organizational participants interact with one another. they use common language. etc. Which in many organizations come down to ³Do not do too much. Practitioners are coming to realize that. the culture of a large. values. norms and tangible signs (artifacts) of organization members and their behaviors.2 Characteristics of Organization Culture Organizational culture has a number of important characteristics. 1986). Culture is comprised of the assumptions. Standards of behavior exist. For example. and rituals related to deference and demeanor. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. Norms. · Describe different types of Organization Culture · Explain organization culture and effectiveness. terminology. · Discuss about developing and changing organization culture. Comprehensively organization culture is the pattern of basic assumptions that is invented.

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

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

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

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

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

Briefly explain different types of organizational culture. Factors in organizational effectiveness include casual variables. system-resource approach.8 Answers to SAQs and TQs SAQs: 1. Stay the course by being persistent. Explain the characteristics of organization culture. 7. and strategic constituencies approach. Organizational effectiveness can be measured through various approaches. Artifacts 2. are particularly driven by results and are often very competitive. Move quickly and decisively to build momentum and to defuse resistance to the new culture.goal approach. behavioural approach. Causal variables Answers to TQs: . 2. 3. Market 3.8. Discuss the development and change of organizational development.6 Summary Organizational effectiveness is the degree to which organization is successful in accomplishing its goals.7 Terminal Questions 1. 2. 9. 3. Organizations to be successful must be efficient and effective. _____are the visible manifestations of culture as seen in the physical and social environment of the organization. ___________are those factors that influence the course of development within an organization and its results or accomplishment. 7. 7. Effectiveness of an organization can be increased through economic man approach and administrative man approach. Self Assessment Questions 1. intervening variables and end-result variables and there exists interrelationship among these variables. effectiveness through adaptive-coping cycle has been discussed. ________cultures are outward looking. Finally.

10 Terminal Questions .1.Power.9 Summary 8. Politics and Organization Development Unit-08. Refer section 7.3 Two Faces of Power 8.7 Operating in a Political Environment 8.1 Introduction Objectives 8.2 2.6 The Role of Power and Politics in the Practice of OD 8. Politics and Organization Development Structure: 8.3 3.5 Organizational Politics Defined and Explored 8.4 Theories about the Sources of Social Power 8. Refer section 7.2 Power Defined and Explored 8.8 Acquiring and using Power Skills Self Assessment Questions 8.Power.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . MU0002-Unit-08. Refer section 7.

Objectives: After this studying this unit.¶ To have power is to be able to get desired things done.actions and the decisions that precede them. and behaviours of people. Potential power is the capacity to do so.´ Organization development has been criticized for not taking into account power in organizations. but kinetic power is the act of doing so.2 Power Defined and Explored "Power is the intentional influence over the beliefs." . · Acquire skills to handle power and politics in organizations. to effect outcomes. · Explain theories about the sources of power. · Explain the role of power and politics in the practice of OD. you will be able to: · Define power and politics in organizations.1 Introduction Power and politics. In this unit." "Power is defined in this unit simply as the capacity to effect (or affect) organizational outcomes. 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. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics.´ ³A has power over B to the extent that he can get B to do something that B would otherwise not do. 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. One person exerts power over another to the degree that he is able to exact compliance as desired. must be understood if one is to be effective in organizations. The French word µpouvoir¶ stands for both the noun µpower¶ and the verb µto be able. we examine power and politics in relation to organization development. indisputable facts of organizational life. power must be exercised. emotions." ³Power is the ability of those who possess power to bring about the outcomes they desire.8. and for change to occur in an organization. 8.11 Answers to SAQs and TQs 8. That criticism was essentially correct for many years although it is less valid today. As Warner Burke observes: "Organization development signifies change.

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

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

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.

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

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

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

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

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

Identify the bases of individual power and the respective strategies for their success. _____________ has identified two faces of power. 8. ±±±±±±±±±± is made up of Charisma. when. 4. 2. Strategic-contingency model of power asserts that power that accrues to the individuals. arise from known conditions.10 Terminal Questions 1. ±±±±±± is the intentional influence over the beliefs. Referent power 4. Describe briefly various theories of power. McClelland 3. 5. and how. Organizational power is the ability of those who possess power to bring about the outcomes they desire. emotions or behaviour of people. Define organization politics.. 8. and are amenable to positive control. Self Assessment Questions 1. Power based on the power-receiver having identification with the power holder is called ±±±± ±±±±±±±. 2.11 Answers to SAQs and TQs SAQs: 1. when and how. 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. Power 2. units or departments is most important in solving organizational problems. 4. Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another. Define power in an organizational context and explain types of power.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.9 Summary Power and politics are inseparable facts of organizational life. reputation and professional credibility. Explain the role of power and politics in the practice of OD. 3. Organizational politics is defined as the study of who gets what. 5. ±±±±±±±± defined politics as the study of who gets what. 3. Power and politics are similar in nature. Power can be either positive or negative. 8. Harold Lasswell .

6 5. Refer section 8. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9.4 3. Refer section 8.4 Management By Objectives 9.3 Socio Technical Systems 9. Refer section 8.5 Quality Circles 9.Refer section 8.2 2. Refer section 8.5 4.5.1 Introduction Objectives 9.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .6 Quality of Work Life Projects .2 Meaning and Definitions 9. Personality Answers to TQs: 1.

Objectives: After studying this unit. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design.7 Parallel Learning Structures 9.8 Total Quality Management 9. One important intervention technique is Technostructural interventions because these are related to technical and structural issues such as how to divide labour and how to coordinate department which is related to Restructuring organization.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. Nothing is permanent except change because change is permanently changing. you will be able to: · Explain the Socio technical change. An organization development intervention is a sequence of activities. · Explain Total Quality Management.9. These methods are receiving increasing attention in Organization Development.10 Summary 9. These interventions vary from standardized program that have been developed and sometimes tailored program. actions. These programs are derived from careful diagnosis. .12 Answers to SAQs and TQs 9. · Discuss the parallel Learning Structures. · Explain Reengineering.11 Terminal Questions 9. 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. · Discuss the Management By Objectives · Explain the Quality Circles. organizational problems may repeat. In this dynamic and fluid environment. events intended to help an organization improve its performance and effectiveness.9 Reengineering Self Assessment Questions 9.

Succession Doesn¶t Destroy Change Effort. It endeavors to re-design the organization¶s structure. 3. Structural changes are consistent with their operating styles and are generally understood by practitioners. and OD practice enables the change agent to estimate the probable consequences of the change. 1988): ‡ Determining the environmental demands ‡ Creating a vision statement ‡ Educating organizational members . Changes can involve decentralization and centralization. In addition. Structure changes are normally ³institutionalized´ and less subject to this problem. This normally is a reasonable. The cost of structural change is generally ³front-end´ loaded. Organization Acceptance of Change. Managers and administrators are notoriously pragmatic. Rapidity of change. processes and functions to create a balance between the organization and its changing external environment. 4.3 Socio Technical Systems Socio-technical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. Greater Predictability. 9. their attractiveness is also increased by the following advantages: 1. It could involve the following steps (Foster. 1967. and more critically. meaning the major costs are associated with analysis and design of change. Weeks and months of group effort are saved. Cost is Low. 1976. change can be introduced relatively rapidly by top management. Cummings. Advantages of Structural Interventions There are a number of reasons why a consultant should consider employing a structural intervention. Pasmore. From a benefit cost analysis. structural Interventions compare quite favorably with all other alternatives. a predictable cost Implementation of group strategies involves significant long-term man-hour and consultant costs. organization theory. Downsizing associated with restructuring.2 Meaning and Definitions Structural Intervention is related to the changes that relate elements of organization to one another. One problem with behavioral/ group interventions is the tendency for new managers or employees to discount or fail to continue the change program. 5. 2. includes removing or adding layers to hierarchy.9. Basic reinforcement theories. Once diagnosed and an appropriate correction developed.

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

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

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

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

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

What are the advantages of structural interventions? 3. The term MBO was coined by _________ in 1964.11 Terminal Questions 1. Write a short note on Total Quality Management.12 Answers to SAQs and TQS SAQs: 1. consciously directed towards the effective and efficient achievement of organizational objectives. Drucker 3. MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner.1. actions.10 Summary An organization development intervention is a sequence of activities. From a benefit cost analysis. 9. events intended to help an organization improve its performance and effectiveness. Quality circle Answers to TQs: . 3. __________ represents a participative approach to employee involvement in problem solving and productivity improvement. Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement. provides relevant information to all employees. 9. There are a number of reasons why a consultant should consider employing a structural intervention. structural Interventions compare quite favorably with all other alternatives. Explain Management By Objectives? 4. It is also called continuous quality improvement. Intervention 2. TQM pushes decision making power downwards in the organization. 2. actions. ties reward to performance and increase workers knowledge and skills through extensive training. An organization development __________ is a sequence of activities. Discuss Socio Technical Systems? 2. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. events intended to help an organization improve its performance and effectiveness. Sociotechnical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. 9.

3 2. 10.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .Refer section 9.9 Answers to SAQs and TQs . Self Assessment Questions 10.5 4.6 Methods of Reducing Resistance to Change.3 Resistance to Change 10. Refer section 9.2 3. MU0002-Unit-10-Managing Change in Organization Development Unit-10-Managing Change in Organization Development Structure: 10.8 Terminal Questions 10.1. Refer section 9. Refer section 9.2 Nature of Change 10.7 Summary 10.5 Impact of Change on the Future Manager 10.4 Causes for Resistance to Change.1 Introduction Objectives 10.

and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented). organizational change may have the following features: 1. 2. It implies a new equilibrium between different components of the organization ± technology.10.2 Nature of Change The term µchange¶ refers to an alteration in a system. 10. Hence. you will be able to: · Explain the meaning of organization change. When change occurs in any part of the organization. less. may require special change efforts. Objectives: After studying this unit. Organizational change is a continuous process. some changes which are of minor type may be absorbed by the existing equilibrium. job design and people. Any change may effect the whole organization. They have illustrated it by comparing an organization to an air-filled . which are major ones. · State the methods of reducing resistance to change. · Discuss the nature of change · Explain resistance to change and the factors which resist change. · Impact of change on future managers. structural arrangement. organizational problems may repeat. Thus. some parts of organization may be affected more.whether physical. or social. Newstrom and Davis have explained the impact of a change in any part of the organization on the total organization. However. others. indirectly. and others.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. organizational change is the alteration of work environment in an organization. it disturbs the old equilibrium necessitating the development of a new equilibrium. 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. Nothing is permanent except change because change is permanently changing. In this dynamic and fluid environment. 3. cope with the ongoing changes successfully in the first instance. biological. and others. some parts may be affected directly. Thus. The type of new equilibrium depends on the degree of change and its impact on the organization.

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

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.

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

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

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

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

Group Contact: Any effect to change is likely to succeed if the group accepts that change. (ii) In group. and indoctrinated in new relationships. Usually. understanding of change increases and personal involvement in the change increases. is an important trust-building task. For this purpose. Efforts at Group Level Although agreement to a change can be obtained individually. Group dynamics offers some basic help in this regard. as discussed earlier. The decision to commit oneself is a dynamic process. education must be a part of the manager¶s everyday activity on the job. 2. However. so that they are looked at and evaluated. However. The same is true of problem-solving. Training and Psychological Counseling: The management can change the basic values of the people by training and psychological counseling. one can communicate with more people per unit of time. more than one person is involved in the change. The group contact offers some specific advantages: (i) Through groups. For using group as a means of overcoming resistance to change. Such educational process can be aided by training classes. the group itself should be the point of contact. Getting opinions out in the open. either the subordinates do not resist or if they resist. Obtaining Commitment: Commitment is an agreement to take an active part in the actual mechanics of the change. most of the times. 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. meetings. to become effective.ideas and opinions about what is going on in the world and more specially if touches them personally. They must be taught new skills. its process and working. An effective leader tries to time a change to fit the psychological needs of his followers. it is desirable at the group level to get better acceptability of change. As this process goes. and conferences. the leader tries to overcome this resistance by leadership process. the level of resistance to change tends to decrease. he expresses it through a group. the manager can form strategies for overcoming resistance in the following manner: 1. 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. sometimes. This helps in creating receptive environment in the organization. (iii) Group can get at the basic problem very rapidly as compared to a single individual. helped to change attitudes. it is more meaningful if it is done through group. Thus. 4. its basic nature. must be understood so that its effective use can be made. It grows slowly along with relationship. . A manager as weak leader presents change on the basis of the impersonal requirements of the situation. 3. Thus. 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. instead of solving the problem at the individual level. People should be educated to become familiar with change. Based on these characteristics of group as a means of change. Commitment to take part in the change programme can be obtained in private from each individual. Though each person interprets the change individually often.

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

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

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

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