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

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

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

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

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

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

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

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

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

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

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

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

public organisations in the private sector and non-business sector. Management creates ________ and motivates employees to work harder and better by providing necessary guidance. Lower level managers require and use a greater degree of technical skill and managers at higher levels use a greater degree of conceptual skill.. environmental forces. Five M¶s of management (________. co-ordinating. Human skills are important at all managerial levels. It is the management which transforms physical resources of an organization into productive resources. organisations. Direction of It is concerned with leading It is concerned with Human Resources and motivation of middle level leading and motivation of executives. Environment Administration has direct Management is mainly interaction with external concerned with internal environment of business and forces. Still management is not completely a profession.4. 8. 2. 6.9 Terminal Questions 1. Status Administration refers to Management is relevant at higher levels of management. motivating and controlling the efforts of others towards a specific objective.e. 1. i.8 Summary Management is concerned with getting things done through other people. 1. Managers perform different roles to discharge their responsibilities. making strategic plans to deal plans and policies of the effectively with the organisation. 7. machinery and methods or ways of doing things) depends to a great extent on the quality of management. _________. DecisionMaking Administration determines Management decides who what is to be done and when it shall implement the is to be done. ___________. operative workforce for the execution of plans. Self Assessment Questions 1. administrative decisions. Management is largely found at the middle and lower levels and administration is found at the higher levels. objectives. 3. 5. Define management. . counseling and effective leadership. There are three levels of management-top. middle and lower. Explain its characteristics. lower levels of management. Usage of Term The term µadministration¶ is The term µmanagement¶ is often associated with widely used in business government offices. __________is principally the task of planning.

2 Process of Management 2. Refer section 1. teamwork Answers to TQs: 1.5 3. Refer section 1.1.3 2. Discuss the importance of management.4 Organizing .10 Answers to SAQs and TQs SAQs: 1.3 Planning 2. Bring out the difference between Administration and Management. Management 2. 1. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2. 3. Money.2.7 Copyright © 2009 SMU Powered by Sikkim Manipal University . manpower 3. Refer section 1.1 Introduction Objectives 2. materials.2.

Staffing. management functions have been regrouped into four categories. Directing. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent. Organizing.5 Staffing 2.7 Motivating Self Assessment Questions 2. . Motivating. Commanding 4.8 Summary 2. · Explain different functions of management Process. Management functions are as follows (Fayol.9 Terminal Questions 2. Objectives: After this studying this unit.10 Answers to SAQs and TQs 2. in recent time. as the action of measuring a quantity on a regular basis and of adjusting some initial plan. 1949): 1. · Explain Planning. Planning 2. Coordinating 5. One can also think of management functionally.1 Introduction Follett (1933) defined management as "the art of getting things done through people´.2. Controlling However.6 Directing 2. Organizing 3. you will be able to: · Define Management process.

and allocating resources. leadership is about setting the desirable goals. Objectives are the ends.2.3 Planning It involves the process of defining goals. You might well ask what the need for a policy is when objectives are already defined. Management is about accomplishing a goal efficiently. or where you want go to. However. overall goals. the decision to change the design of a product.2 Management Process Peter Drucker said: ³Management is doing things right. studies on passenger comfort. Effective planning enables an organization adapt to change by identifying opportunities and avoiding problems. and then set out the method for achieving it. Planning in order to be useful must be linked to the strategic intent of an organization. Decision ± Making Taking decisions is a process. In the football field. driving comfort. it is not a decision in which any process is involved. planning is often referred to as strategic in nature and also termed as strategic planning. policies are the means to achieve those ends. the two are not quite the same. establishing strategies for achieving these goals. All levels of management engage in planning in their own way for achieving their preset goals. while a policy. thus. It provides the direction for the other functions of management and for effective teamwork. leadership is doing the right things³. kicking the ball with the left foot or right foot is a reflex action. Every organization needs to plan for change in order to reach its set goal. The tasks of the strategic planning process include the following steps: Define the mission: . 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. should precede a good deal of research involving market surveys. what distinguishers policies form objectives is that you first decide the objective. 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. fuel and machine efficiency. It is difficult to say where objectives end and policies begin. Through leadership and management often overlap. Policy Formulation We have noted earlier that all organizations have well-defined goals and objectives. 2. general strategies. Therefore. There is a degree of overlap between the two. cost structure and so on. Planning also enhances the decisionmaking process. say a passenger car. Even so. and developing plans to integrate and coordinate activities. a process in which one chooses a course which one thinks is the best. it would be correct to assume that an objective is what you want to accomplish.

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

Generally. In which areas is the competition not meeting customer needs? 2. What substitute products exist? In general terms. The SWOT analysis is used as a baseline for future improvement. They are aligned with the mission and form the basis for the action plans of an organization. Are our rivals weak? 5. It also helps in setting minimum acceptable standards or common-sense minimums. earnings per share. What is the strength of the economy? 4. Develop related strategies (tactical and operational) . What are the possible new markets? 3. Benchmarking systematically compares performance measures such as efficiency. Is there a shortage of resources? 4.1. Is there a possibility of growth of existing market?) Identifying threats involves the following: 1. What are the new regulations? 6. What are the emerging technologies? 6. effectiveness. etc. the best strategy is one that fits the organization¶s strengths to opportunities in the environment. or outcomes of an organization against similar measures from other internal or external organizations. Are there new competitors? 3. Objectives are also called performance goals. In which areas does the competition meet customer needs more effectively? 2. Set goals and objectives Strategic goals and objectives are developed to fill the gap between current capability and the mission. Are market tastes changing? 5. Comparing the organization to external benchmarks (the best practices) is used to assess current capabilities. return on investment. as well as gap analysis. organizations have longterm objectives for factors such as.

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

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

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

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

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

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

6 Copyright © 2009 SMU Powered by Sikkim Manipal University .8 Problems in OD .2 Definitions 3. Reference 2. Staffing Answers to TQs: 1. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3.5 3. Reference 2. Reference 2.7 Role of OD 3. SWOT 3.3 2.1.3 Characteristics of OD 3. Follett 2.1 Introduction Objectives 3.5 Goals of OD 3.4 Categories of OD 3.6 OD and Management Development 3.

efficiency. and the constant challenge to maintain congruence among organizational dimensions such as technology. and profitability. old jobs are being destroyed at an accelerating pace. Simple survival ± continuing to have an adequate job ± is a major challenge today in the light of constant layoffs and cutbacks. ³Knowledge´ work is replacing ³muscle´ work. teams. Are any strategies available to help people and organizations cope. OD focuses on issues related to the ³human side´ of organizations by finding ways to increase the effectiveness of individuals. and learn how to do that better and better over time. and changing customer demands. challenges from turbulent environments.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. We predict that organization development will be preferred improvement strategy in future. . A variety of solutions exists. Although new jobs are being created at record rates. and the like. And organization development (OD) is one of them. organizations and the individuals in them face an enormously demanding present and future. Organization development is a relatively recent invention. Individuals in organizations likewise face multiple challenges ± finding satisfaction in and through work. 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. strategy formulation and implementation. the answer is ³yes´. strategy.9 Summary 3. and achieving human connectedness and community in the workplace. 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. organization development represents one of the best strategies for coping with the rampant changes occurring in the marketplace and society. and the organization¶s human and social processes.Self Assessment Questions 3.11 Answers to SAQs and TQs 3. conflict resolution. organization structure. organization development is a process of teaching people how to solve problems. and attention was soon directed toward other human and social processes in organizations such as the design of work tasks. adapt. survive. and even prosper in these vexing times? Fortunately. take advantage of opportunities. Early returns were encouraging. maintaining dignity and purpose in pursuit of organizational goals. and processes. Today. increased competition.10 Terminal Questions 3. fighting obsolescence of one¶s knowledge and skills. In summary. Organizations face multiple challenges and threats today ± threats to effectiveness. Basically. culture. Keeping organizations healthy and viable in today¶s world is a daunting task.

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

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

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

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

6. dynamic and adaptive system. collaborators. OD encourages collaboration between organization leaders and members in managing culture and processes. OD views organization improvement as an ongoing process in the context of a constantly changing environment. 10. OD focuses on total system change and views organizations as complex social systems. To summarize. OD focuses on culture and processes. 4. 5. OD focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. Comprehensive Change: OD efforts focus on comprehensive change in the organization. The concept of comprehensive change is based on the systems concept-open. and co-learners with the client system. constantly shifting teams will be the dominant configuration for getting work done. OD takes a developmental view that seeks the betterment of both individuals and the organization. The definition we have just analyzed contains the elements we believe are important for OD. Specifically. OD practitioners are facilitators. 8. 7. 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. 3. Planned Change: OD is a strategy of planned change for organizational improvement. OD relies on an action research model with extensive participation by client system members.multifunctional. Teams of all kinds are particularly important for accomplishing tasks and are targets for OD activities. 2. This µplanned¶ emphasis separates OD efforts from other kinds of more haphazard changes that are frequently undertaken by organizations. Attempting to create ³win-win´ solutions is standard practice in OD programs. 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. here are the primary distinguishing characteristics of organization development: 1. Participation and involvement in problem-solving and decision-making by all levels of the organization are hallmarks of OD. according to Peters. so that change is easily observed. 3.3 Characteristics of OD 1. rather than focusing attention on individuals. 2. OD .

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

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

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

To increase the openness of communications in all directions-vertically. horizontally. substantial disenchantment with OD became evident because of many controversial OD techniques like sensitivity training. No special requirement. Thus. To create an environment in which authority of assigned role is augmented by authority based on knowledge and skills. To place emphasis on humanistic values and goals consistent with these vales. Since OD attempts to bring comprehensive change in the organization. and laterally. Long-range strategy for organizational innovation and renewal. has invited sharp criticism as a strategy to increase organizational viability and effectiveness because many OD programmes have failed. 2. 3. 3. Train and equip employees and managers to perform better in existing organization. Trained specialists required. 3. plays key role in organizational improvement. 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. 6. Educative and training Short-range. To treat each human being as a complex person with a complex set of needs important in his work and his life. Problem-solving approach. In early 60s.8 Problems in Organization Development Organization development. it is quite suitable for improving organizational performance on long-term basis. . however. as a long-term strategy for organizational change.Focus Approach Time Specialist accomplishments. focus on achieving improvement in design. To increase the level of enthusiasms and personal satisfaction at all levels of the organization. 5. 4. Focus on design. OD became quite successful with many professional consultants offering high services and programmes to various organizations. Much of the enthusiasm created at the beginning of OD programmes vanished over the period of time. To increase the level of self and group responsibility in planning and its implementation. OD can be utilized for the following results in the organization: 1. By 70s. however. 7.7 Role of Organization Development Organization development. not on the managers. To increase the level of trust and mutual emotional support among all organization members.

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

Tom Peters 3. Empowerment 4. Who is associated with the ³Learning Organizations´? 5. Explain its salient features. ±±±±±±±±± is a process which includes leadership behaviours and human resource practices. Explain the various characteristics of OD. Management development aims at developing the managers individually. OD is the ultimate remedy for organizational improvements and developments. problem-focused µnature of OD¶ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. collaborative. Organization development should be led and supported by ±±±±±±±.10 Terminal Questions 1. ±±±±±±± is associated with ³Liberation Management´. Define OD. Distinguish between µorganizational development¶ and µmanagement development¶. 3. The participative. 3. 2. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. _____________is a short-term strategy.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. But OD aims at changing the entire organizational climate where the managers work. 4. 2. Peter Senge . 3. What are the problems involved in the implementation of OD? 3.11 Answers to SAQs and TQs SAQs: 1. State the various roles of OD. 4. 5. 3. Top management 2.1. There is no µquick fix¶ to organizations¶ problems. OD focuses on culture and processes.

Refer section 3.3 Process Consultation 4. Refer section 3. Refer section 3.1 Introduction Objectives 4.7 5. Refer section 3. Refer section 3. MU0002-Unit-04.6 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .Organization Development ± Interventions Structure: 4.2 2.6 Team-building .5 Leadership Development 4.5.2 Survey Feedback 4. Management development Answers to TQs: 1.Organization Development ± Interventions Unit-04.4 Grid Training 4.3 3.

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

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

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

you need to be aware that there are three distinct times zones where leadership is important. concerned and committed to their welfare. In this light. they maintained the same stand. Furthermore. The strategy is then implemented. it appears that this type of educational strategy can help to make significant contributions to organizational effectiveness. We can call these Preparing For the Journey. and credibility of senior and middle management. Evaluation of Grid Training Most of the support of grid training has come from its originators-Blake and Mouton. 4. The members of the organization are trained for achieving this excellence. 5.´ In a later work. and After Arrival. Grid training programme is criticized on the basis that it lacks contingency approach and. Though research studies on the application of grid training are not many. 6.4. clearly the most important determinant of "getting through the swamp". We will look more carefully at each of these. 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. the various efforts from phase 1 to phase 5 are evaluated and critical analysis is made. The action is designed to identify the characteristics of the ideal organization. The analysis will bring out the shortcomings that may be there. Slogging Through The Swamp. the various programmes may be redesigned. grid training has some positive contributions for organizational effectiveness. grid training is a non-rigorous method. competence. employees will look towards the leaders for a number of things. Systematic Critique: In this stage. The Role of Leadership In an organization where there is faith in the abilities of formal leaders. complete communication that is timely. and regular. During drastic change times. therefore. If you are to manage change effectively. Further. Developing Ideal Strategic Corporate Model: At this stage. lead. Also during these times of change. the focus shifts to the total organization and to develop skills necessary for organizational excellence. confident and effective decision-making.5 Leadership Development When change is imposed (as in downsizing scenarios). They have maintained that ³managerial and team effectiveness can be taught to managers with outside assistance. it discounts reality. The literature on the subject indicates that the nature of the change is secondary to the perceptions that employees have regarding the ability. Each group may be given assignment to evolve strategy for making ideal organization with the help of the consultant. employees will perceive leadership as supportive. while at the same time . is the ability of leadership to«well. some of them have not supported the claims made by Blake and Mouton. employees will expect effective and sensible planning. in spite of these criticisms.

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

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

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

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

At this stage. Providing substantial time together in which new information is constantly shared. Analyzing how the team is working. and 5.4. group problems to even personal problem. 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. Problem-sensing: There are a number of ways in which problems of a team can be obtained. the team-building exercise proceeds in a particular way as shown in figure. Much of the problems may be solved through effective communication and training sessions. 4. Team-building Process: Team-building attempts to improve effectiveness of the team by having team members to concentrate on: 1. personality and attitudes. 1. Fig. Analyzing how the work is performed. Analyzing the relationships among the members who are performing the job. the emphasis should be on consensus. rather. 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. Examining Differences: The perception of people on an issue differs because of their differing backgrounds. . generally most of the members come forward with their arguments as to what the real problems are. This problem can better be identified in terms of what is hindering group effectiveness. 4. such as. 3.2: Process of Team-building Various steps of team-building process are not one-shot action. and rewards. Providing positive feedback. The role of communication is important in this context because it will help in clarifying the actual problems to the members. recognition. Setting goals and priorities for the team. For achieving these. they are repetitive and cyclical as indicated by arrows in the figure. The view may be quite different ranging from the organizational problem. their value systems. 2. and 5. 2. Often the team itself defines which aspects of team-building it wishes to work on. Analyzing how team¶s goals and priorities are linked to those of the organization.

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

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

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

Useful hypothesis are to be formulated and tested. skills and change in behavior. 2.11 Terminal Questions 1.10 Summary OD intervention strategies are various activities which a consultant and client organization performs for improving organizational performance. The trainer role is most widely and intensively used at all stages of a change project: unfreezing. role-plays and instruments.A change agent needs to be a trainer and educator. developing action plans based on feedback and follow-up. films. team-work does not necessarily spurt group efforts 4. In process consultation. cases and experiential learning etc. It focuses on skills. 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. What is Grid Training? How does it help in improving individual performance in an organization? . widely accepted and applied OD intervention for organizational improvement. Self Assessment Questions 1. attitudes and beliefs. knowledge and processes necessary for effectiveness at the individual. changing (intervening) and refreezing. group discussions. 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. Training is required for enhancing knowledge. diagnosis. The first step in survey feedback is ______ usually by a consultant based on a structured questionnaire. 4. Survey feedback usually proceeds with sequential activities involving data collection. group. presentations. Training is used both in µcontent orientation¶ and process orientation¶. Grid training focuses on individuals and groups to assess their own strengths and weaknesses. Grid Training was developed by ±±±±±±±±±±±± 3. feedback of information. Data collection. generation of new behavioral science knowledge. ________is antithesis of synergy in team-work which suggests that people working together on a common task may actually decrease their individual efforts. Team-building is most important. inter-group and total organization levels. He has to educate people on the need and importance o change using a variety of methodologies ± lectures. 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.

1 Introduction . and Beliefs in Organization Development Unit-05-Values. Explain Change agents and discuss the role of change agents in detail. Assumptions. Refer section 4. and Beliefs in Organization Development Structure: 5.6 4. Social loafing Answers to TQs: 1. 3.4 2. Assumptions. Refer section 4. Refer section 4. What is team-building? What are the stages of life cycle of a team? 4. 4. Blake and Mouton. What is survey feedback as an intervention of OD? How does it provide base for other OD interventions? 3.2. MU0002-Unit-05-Values.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .12 Answers to SAQs and TQs SAQs: 1.2 3. Refer section 4. Data collection 2.

beliefs and assumptions. and they continue to evolve as the field itself evolves.7 Terminal Questions 5.5.4 Early Statements of OD Values and Assumptions 5.6 Summary Self Assessment Questions 5. · Give the statement of OD values and assumptions. assumptions. shaping the goals and methods of the field and distinguishing OD from other improvement strategies.Objectives 5.2 Implications for Dealing with Groups 5. and beliefs constitutes an integral part of organization development.8 Answers to SAQs and TQs 5. Most of these beliefs were formulated early in the development of the field.5 Implications of OD Values and Assumptions 5.5. beliefs and assumptions.3 Chronology of Events in Management and Organization Thought 5.1 Implications for Dealing with Individuals 5. Objectives: After studying this unit. · State the implications of OD values and assumptions. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers.2 Definitions 5.1 Introduction A set of values. · List the chronology of events of values.5.2 Definitions . 5.3 Implications for Designing and Running Organizations 5. you will be able to: · Explain the meaning of values.

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

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

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

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

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

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

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

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

_______________ gave theory X and theory Y. Values. 5. A belief is a proposition about how the world works that the individual accepts as true. OD values tend to be humanistic. 5. Values. 5. values. These OD values were considered revolutionary when they emerged in the 1950s. Define concepts. beliefs and assumptions. beliefs. Self Assessment Questions 1. and assumptions are all ±±±±±±±±±± facts. 4. __________ is associated with scientific management. This discussion was intended to articulate an appreciation of OD values and explain where they came from. Values. Chronology of events in management and OD tremendously influenced OD practitioners. 5. Values are also beliefs. 3. but are widely accepted today. State the assumptions of Theory X and Theory Y. What was the outcome of Hawthorne Experiments? 4. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5.The field of organization development rests on a foundation of values and assumptions about people and organizations. These beliefs help to define what OD is and guide its implementation. Taylor¶s principles of scientific management.8 Answers to SAQs and TQs SAQs: 1. 2. beliefs and assumptions are cognitive facts.7 Terminal Questions 1. 2.6 Summary The field of OD rests on a foundation of values and assumptions about people and organizations. The outcome of ±±±±±±±± was that people were not cogs and organizations were not machines. assumptions and beliefs help to define what OD is and guide its implementation.W. optimistic and democratic. The concept of ±±±±±±±±±± was introduced by MaxWeber. Write a note about F. Cognitive . 3.

2 Models and Theories of Planned Change 6. Refer section 5.2 2. Refer section 5.2. F.2.2 Beyond the Quick Fix .3 Copyright © 2009 SMU Powered by Sikkim Manipal University . Taylor 3.1 Kurt Lewin and Friends 6.3 3. W.2.3 5. Refer section 5. Hawthorne experiments 5. Bureaucracy 4.1 Introduction Objectives 6. Refer section 5. Douglas McGregor Answers to TQs: 1.3 4. Refer section 5. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.

6 Parallel Learning Structures 6.3 The Burke-Litwin Model of Organizational Change 6.1 The Nature of Systems 6.3. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs.3.2.12 Answers to SAQs and TQs 6.3 Socio-technical Theory and Open Systems Planning 6.2.4 Participation and Empowerment 6. Objectives: After studying this unit.4 Porras and Robertson Model of Organizational Change 6.8 Applied Behavioural Science 6. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning.3.10 Summary 6.2 Congruence among System Elements 6.11 Terminal Questions 6.3 Systems Theory 6. In this discussion.7 A Normative ± Re-educative Strategy of Changing 6.9 Action Research Self Assessment Questions 6. you will be able to: .4 Open Systems Thinking 6. art and science which form the knowledge base upon which OD is constructed.1 Introduction This unit describes the foundations of organization development theory and practice.5 Teams and Teamwork 6.6.3.

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

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

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

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

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

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

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

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

This section explains 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.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.Fig. 6. 6. Fig. and Katz and Kahn were the first to apply open systems theory to organizations in 1966. Systems . and shows how systems theory enhances the practice of OD. Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950.5: A Change-based Organizational Framework 6. describes the characteristics of systems.3 Systems Theory A second foundation of organization development is systems theory.

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

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

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

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

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

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

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

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

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

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

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

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

What are first-order and second order change according to Burke-Litwin Model of organizational change? Explain.´ Comment on this statement. 3. 3. 6. Systems theory views organizations as open systems in active exchange with their environment. _____________ means sum of the efforts of team members is far greater than the sum of individual efforts of members. Explain Kurt Lewin¶s models and theories of planned 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. A _____________ is defined as ³a set of elements standing in interaction. which in turn lead to individual and organizational improvements is the principle of Porras and Robertson model organizational change. ±±±±±±±±±± means moving to new level of behaviour.11 Terminal Questions 1. 2. ³Work teams are building blocks of organizational development.´ 5. Ralph Kilmann 3. First²order change is also called ___________. 2. Ralph Kilmann specified the critical leverage points for organizational change. 6. Action research model combines learning and doing.12 Answers to SAQs and TQs SAQs: 1. 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. The Burke-Litwin model emphasized on first-order and second-order change. Bring out the essence of ³managing beyond the quick fix´ model of organizational development. A fundamental belief in OD is that work teams are the building blocks of organizations. What are the features of systems theory of organizational development? 5. Transactional change . ±±±±±±±±±± gave the model ³Beyond the Quick Fix´.10 Summary The foundations of organizational development form the theoretical and practice underpinnings of the field. Unfreezing 2. OD interventions alter features of the work setting causing changes in individuals¶ behaviours. 4. 6.1. 4.

2. System 5.3 5.4 Organization Culture and Effectiveness 7. Synergy Answers to TQs: 1.2.5 Developing and changing Organization Culture Self Assessment Questions 7.4. Refer section 6.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .1 2.2 3.1 Introduction Objectives 7.3 4. Refer section 6.2 Characteristics of Organization Culture 7. Refer section 6. MU0002-Unit-07-Organization Culture and Climate Unit-07-Organization Culture and Climate Structure: 7. Refer section 6.3 Types of Organization Culture.Refer section 6.6 Summary .2. 7.

Some of the most readily agreed upon are the following: 1.1 Introduction Basically. organizational culture is the personality of the organization. Which in many organizations come down to ³Do not do too much. including guidelines on how much work to do. thinking. Comprehensively organization culture is the pattern of basic assumptions that is invented. Norms. Practitioners are coming to realize that. The concept of culture is particularly important when attempting to manage organization-wide change.8 Answers to SAQs and TQs 7. discovered. Objectives: After studying this unit. and rituals related to deference and demeanor. despite the best-laid plans.2 Characteristics of Organization Culture Organizational culture has a number of important characteristics. For example. and feeling in relation to these problems (Schein. Standards of behavior exist. and validated enough to be taught to new members as the correct ways of perceiving. · Describe different types of Organization Culture · Explain organization culture and effectiveness. what they brag about. values.7 Terminal Questions 7. but everyone knows it when they sense it. but also changing the corporate culture as well. ± similar to what you can use to get a feeling about someone¶s personality. Members of an organization soon come to sense the particular culture of an organization. organizational change must include not only changing structures and processes. 1986). or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. for-profit corporation is quite different than that of a hospital which is quite different than that of a university. terminology. 7. Culture is comprised of the assumptions. norms and tangible signs (artifacts) of organization members and their behaviors. do not do too little?´ . the culture of a large. Martin and Meyerson. Culture is one of those terms that¶s difficult to express distinctly. etc. You can tell the culture of an organization by looking at the arrangement of furniture. what members wear. 2.7. When organizational participants interact with one another. · Discuss about developing and changing organization culture. you will be able to: · Understand Organization Culture. they use common language. Observed behavioral regularities.

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

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

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

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

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

Effectiveness of an organization can be increased through economic man approach and administrative man approach. Finally. _____are the visible manifestations of culture as seen in the physical and social environment of the organization. intervening variables and end-result variables and there exists interrelationship among these variables. Causal variables Answers to TQs: . and strategic constituencies approach. ___________are those factors that influence the course of development within an organization and its results or accomplishment. 2. 2. Factors in organizational effectiveness include casual variables.goal approach.7 Terminal Questions 1. 3. Artifacts 2. effectiveness through adaptive-coping cycle has been discussed. system-resource approach. Organizational effectiveness can be measured through various approaches. Self Assessment Questions 1. 3. 7. are particularly driven by results and are often very competitive. Briefly explain different types of organizational culture. behavioural approach. Discuss the development and change of organizational development. Market 3. Organizations to be successful must be efficient and effective. Explain the characteristics of organization culture. 9. Stay the course by being persistent. ________cultures are outward looking. 7. 7.8.8 Answers to SAQs and TQs SAQs: 1.6 Summary Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. Move quickly and decisively to build momentum and to defuse resistance to the new culture.

1. Refer section 7.8 Acquiring and using Power Skills Self Assessment Questions 8. Politics and Organization Development Unit-08.2 Power Defined and Explored 8.7 Operating in a Political Environment 8.4 Theories about the Sources of Social Power 8.3 3.9 Summary 8. MU0002-Unit-08.Power.5 Organizational Politics Defined and Explored 8.10 Terminal Questions .3 Two Faces of Power 8. Refer section 7.2 2.Power. Politics and Organization Development Structure: 8. Refer section 7.6 The Role of Power and Politics in the Practice of OD 8.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .1 Introduction Objectives 8.

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

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

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

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.

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

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

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

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

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

8. Organizational power is the ability of those who possess power to bring about the outcomes they desire. Describe briefly various theories of power. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics. 5. Explain the role of power and politics in the practice of OD. 3. 8. 3.10 Terminal Questions 1. 4. Power and politics are similar in nature. Identify the bases of individual power and the respective strategies for their success. when and how. when. Organizational politics is defined as the study of who gets what. and how. emotions or behaviour of people. McClelland 3. 2.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. Strategic-contingency model of power asserts that power that accrues to the individuals. 5. and are amenable to positive control. reputation and professional credibility. ±±±±±± is the intentional influence over the beliefs.9 Summary Power and politics are inseparable facts of organizational life. Power can be either positive or negative. Power 2. Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another.. _____________ has identified two faces of power. ±±±±±±±±±± is made up of Charisma. Define organization politics. 8. 2. Define power in an organizational context and explain types of power. Organizational politics involve intentional acts of influence to enhance or protect the self-interest of individuals or groups. ±±±±±±±± defined politics as the study of who gets what. arise from known conditions. Harold Lasswell . Referent power 4. 4. Self Assessment Questions 1. Power based on the power-receiver having identification with the power holder is called ±±±± ±±±±±±±.11 Answers to SAQs and TQs SAQs: 1. units or departments is most important in solving organizational problems.

Refer section 8. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9.2 2. Refer section 8.1 Introduction Objectives 9.5 4.3 Socio Technical Systems 9. Personality Answers to TQs: 1.4 3.5.6 5. Refer section 8.6 Quality of Work Life Projects .5 Quality Circles 9.2 Meaning and Definitions 9. Refer section 8.Refer section 8.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .4 Management By Objectives 9.

· Explain Reengineering. . but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future. organizational problems may repeat.9 Reengineering Self Assessment Questions 9. These interventions vary from standardized program that have been developed and sometimes tailored program. · Explain Total Quality Management. 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. An organization development intervention is a sequence of activities.12 Answers to SAQs and TQs 9. These methods are receiving increasing attention in Organization Development. events intended to help an organization improve its performance and effectiveness. These programs are derived from careful diagnosis. · Discuss the parallel Learning Structures. you will be able to: · Explain the Socio technical change. 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. In this dynamic and fluid environment.7 Parallel Learning Structures 9.11 Terminal Questions 9. Nothing is permanent except change because change is permanently changing.8 Total Quality Management 9.10 Summary 9. · Discuss the Management By Objectives · Explain the Quality Circles. actions.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival.9.

Changes can involve decentralization and centralization. Once diagnosed and an appropriate correction developed. Organization Acceptance of Change. From a benefit cost analysis. 5. Pasmore. One problem with behavioral/ group interventions is the tendency for new managers or employees to discount or fail to continue the change program. Weeks and months of group effort are saved. 2. includes removing or adding layers to hierarchy. Advantages of Structural Interventions There are a number of reasons why a consultant should consider employing a structural intervention. and more critically.2 Meaning and Definitions Structural Intervention is related to the changes that relate elements of organization to one another.9.3 Socio Technical Systems Socio-technical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. Structure changes are normally ³institutionalized´ and less subject to this problem. 1976. structural Interventions compare quite favorably with all other alternatives. This normally is a reasonable. Cost is Low. Greater Predictability. It could involve the following steps (Foster. The cost of structural change is generally ³front-end´ loaded. 9. Cummings. a predictable cost Implementation of group strategies involves significant long-term man-hour and consultant costs. Managers and administrators are notoriously pragmatic. organization theory. It endeavors to re-design the organization¶s structure. their attractiveness is also increased by the following advantages: 1. meaning the major costs are associated with analysis and design of change. change can be introduced relatively rapidly by top management. 1988): ‡ Determining the environmental demands ‡ Creating a vision statement ‡ Educating organizational members . In addition. Rapidity of change. Downsizing associated with restructuring. 4. 3. 1967. Basic reinforcement theories. processes and functions to create a balance between the organization and its changing external environment. Structural changes are consistent with their operating styles and are generally understood by practitioners. Succession Doesn¶t Destroy Change Effort. and OD practice enables the change agent to estimate the probable consequences of the change.

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

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

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

at the Tavistcock Institute of Human Relations in London. Some organizations have even gone as far as setting targets for the number of suggestions quality groups are expected to come up with. Therefore. and rewards. appropriate feedback and employee discretion. it is used as an input for recycling objectives and other actions. Quality circle program consists of several circles. quality groups are often compulsory and organized around specific work teams. 9. The original idea of quality circles involved small groups of volunteers meeting on a regular basis. and · Then monitor the resulting change efforts.7 Parallel Learning Structures Parallel Learning Structures (also known as Communities of Practice) promote innovation and change in large bureaucratic organizations while retaining the advantages of bureaucratic design. hierarchical structure. Objective setting is a joint process through interaction between superior and subordinate.5 Quality Circles Quality circle is one of the most popular methods in the USA which was originally developed in Japan in 1950s. require joint participation by union and management in the process of work-designing.6 Quality of Work Life Based on the research of Eric Trist et al. knowledge. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. but in its contemporary form. Objectives are neither set at the top and communicated to the bottom nor are they set at the bottom and go up. which consequently result into high level of task variety. 9. Knowledge Management involves capturing the organization¶s collective expertise wherever it resides (in databases. each having three to fifteen members. . Parallel Learning Structures may be a form of Knowledge Management. The most distinguishing feature of QWL program is the development of self-managing work groups which consist of multi-skilled workers. in general. 9. Recycling: Though appraisal is the last aspect of MBO process. It Consists of a steering committee and a number of working groups that: · Study what changes are needed in the organization. what happens at each level may affect other levels also. information. or in people¶s heads) and distributing it to the people who need it in a timely and efficient way. QWL programs. this approach looked both at technical and human sides of organizations and how they are interrelated. · Make recommendations for improvement.6. Quality circle requires a managerial philosophy and culture that promotes sharing power. The outcome of appraisal at one level is recycled to see if the objectives have been set properly at the level concerned and also at the next higher level.Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement. on paper. Groups representing various levels and functions work to open new channels of communication outside of and parallel to the normal.

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

Explain Management By Objectives? 4. __________ represents a participative approach to employee involvement in problem solving and productivity improvement. An organization development __________ is a sequence of activities. structural Interventions compare quite favorably with all other alternatives. provides relevant information to all employees. Discuss Socio Technical Systems? 2. actions. It is also called continuous quality improvement.11 Terminal Questions 1. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. From a benefit cost analysis. Write a short note on Total Quality Management. Sociotechnical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. events intended to help an organization improve its performance and effectiveness.1. TQM pushes decision making power downwards in the organization. ties reward to performance and increase workers knowledge and skills through extensive training. 9. There are a number of reasons why a consultant should consider employing a structural intervention. Quality circle Answers to TQs: . actions. 9.12 Answers to SAQs and TQS SAQs: 1. 3. 2. Intervention 2. MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner.10 Summary An organization development intervention is a sequence of activities. 9. events intended to help an organization improve its performance and effectiveness. consciously directed towards the effective and efficient achievement of organizational objectives. What are the advantages of structural interventions? 3. The term MBO was coined by _________ in 1964. Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement. Drucker 3.

3 Resistance to Change 10.2 Nature of Change 10.7 Summary 10.3 2.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . 10. Refer section 9.1. MU0002-Unit-10-Managing Change in Organization Development Unit-10-Managing Change in Organization Development Structure: 10.5 4.6 Methods of Reducing Resistance to Change. Refer section 9. Self Assessment Questions 10.9 Answers to SAQs and TQs .8 Terminal Questions 10. Refer section 9.4 Causes for Resistance to Change.2 3.1 Introduction Objectives 10.Refer section 9.5 Impact of Change on the Future Manager 10.

Nothing is permanent except change because change is permanently changing. 2. Thus. It implies a new equilibrium between different components of the organization ± technology. and others. some changes which are of minor type may be absorbed by the existing equilibrium. some parts of organization may be affected more. and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other. organizational change is the alteration of work environment in an organization. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented). or social. may require special change efforts. Hence. others. They have illustrated it by comparing an organization to an air-filled . some parts may be affected directly. Thus. The type of new equilibrium depends on the degree of change and its impact on the organization. which are major ones. and others. Objectives: After studying this unit. structural arrangement. job design and people. you will be able to: · Explain the meaning of organization change. · Discuss the nature of change · Explain resistance to change and the factors which resist change. · Impact of change on future managers. organizational change may have the following features: 1. In this dynamic and fluid environment. When change occurs in any part of the organization. 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. cope with the ongoing changes successfully in the first instance. organizational problems may repeat. Any change may effect the whole organization. Organizational change is a continuous process.10. 3.2 Nature of Change The term µchange¶ refers to an alteration in a system. less.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. Newstrom and Davis have explained the impact of a change in any part of the organization on the total organization. 10. indirectly. biological. it disturbs the old equilibrium necessitating the development of a new equilibrium. However.whether physical. · State the methods of reducing resistance to change.

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

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.

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

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

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

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

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

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

10. Why do organizations resist change? 3. Discuss the methods of reducing resistance to change.complaints. N. through group dynamics. Participation Answers to TQs: 1. eighth edition. engaging in a work showdown. Refer section 10.. at the level of individual and at the level of group. Modern Organization Development and Change. Refer section 10.4 3. that is. Psychological factors of Organization Change. both at the formal and informal levels. · Harigopal K.Response Books. Jain. · Cummings & Worley. threatening to go on strike. Prentice-Hall of India Private Limited. 10. New Delhi. Jr.9 Answers to SAQs and TQS SAQs: 1. Principles and Practices. Reference: · Wendell L. or the like. · J. Problem of overcoming resistance to change can be handled at two levels. Thomson South Western. French and Cecil H. Explain the nature of change? 2.6. Refer section 10. Organization Development & Change. Bell. . Organizational change 2.8 Terminal Questions 1. Organization Development. P.Singh. New Delhi. Regal Publications New Delhi. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups.. Organization Theory and Design.2 2. Thomson · Daft Richard L. P.

12th edition.jhu. Ltd. · New Delhi. Organizational Behaviour. Sultan Chand & Sons. E References y y y y y y y y y y y http://fds.pdf http://www. Robbbins. Ltd. Chhabra. New Delhi. Organizational Anmol Publications Stoner and R. New Delhi. · Laxmi Devi. Prentice-Hall of India. Edward Freeman.html http://muse. N.htm Pvt.oup.umich. New Delhi. Educatiional Publishers. Principles & Practice of Management.· James A. Dhanpat Rai & Co.htm#anchor73776 Copyright © 2009 SMU Powered by Sikkim Manipal University .pdf http://www.htm#TopOfPage http://www. Management.cfm · Stephens P. · Stephen P. F. Prentice-Hall Organizational Behaviour. http://www. · L. Prentice-Hall of India.pdf http://webuser.

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