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

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

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

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

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

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

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

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

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

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

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

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

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

10 Answers to SAQs and TQs SAQs: 1. 1. teamwork Answers to TQs: 1.1.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .4 Organizing .1 Introduction Objectives 2. Bring out the difference between Administration and Management. 3.5 3. Refer section 1. manpower 3. Discuss the importance of management.2. Money. Refer section 1.2 Process of Management 2. Refer section 1.2. Management 2. materials.3 2. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.3 Planning 2.

1 Introduction Follett (1933) defined management as "the art of getting things done through people´. 1949): 1. · Explain different functions of management Process. you will be able to: · Define Management process. Commanding 4.8 Summary 2. Directing.6 Directing 2. One can also think of management functionally. Planning 2.5 Staffing 2. Organizing. · Explain Planning.10 Answers to SAQs and TQs 2. Coordinating 5. management functions have been regrouped into four categories.2. Staffing. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent. Organizing 3. Controlling However. Motivating. in recent time. as the action of measuring a quantity on a regular basis and of adjusting some initial plan. Objectives: After this studying this unit. . Management functions are as follows (Fayol.9 Terminal Questions 2.7 Motivating Self Assessment Questions 2.

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

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

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

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

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

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

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

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

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

6 OD and Management Development 3.1 Introduction Objectives 3. Staffing Answers to TQs: 1.8 Problems in OD .5 3.5 Goals of OD 3. SWOT 3.4 Categories of OD 3. Reference 2.2 Definitions 3. Follett 2.3 2. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3. Reference 2.3 Characteristics of OD 3.6 Copyright © 2009 SMU Powered by Sikkim Manipal University . Reference 2.7 Role of OD 3.1.

the answer is ³yes´. Simple survival ± continuing to have an adequate job ± is a major challenge today in the light of constant layoffs and cutbacks. organization development is a process of teaching people how to solve problems. Organization development is a relatively recent invention. ³Knowledge´ work is replacing ³muscle´ work. Keeping organizations healthy and viable in today¶s world is a daunting task. teams. Organizations face multiple challenges and threats today ± threats to effectiveness. take advantage of opportunities. organization development represents one of the best strategies for coping with the rampant changes occurring in the marketplace and society. organizations and the individuals in them face an enormously demanding present and future. organization structure. and changing customer demands. A variety of solutions exists. And organization development (OD) is one of them. adapt. and learn how to do that better and better over time. efficiency.9 Summary 3. culture. and even prosper in these vexing times? Fortunately. Although new jobs are being created at record rates. Individuals in organizations likewise face multiple challenges ± finding satisfaction in and through work. and the constant challenge to maintain congruence among organizational dimensions such as technology. OD focuses on issues related to the ³human side´ of organizations by finding ways to increase the effectiveness of individuals. increased competition. 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. Are any strategies available to help people and organizations cope.1 Introduction Organization development is the applied behavioural science discipline dedicated to improving organizations and the people in them through the use of the theory and practice of planned change. challenges from turbulent environments. . and the organization¶s human and social processes. Early returns were encouraging. In summary. strategy. strategy formulation and implementation. 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. and the like. maintaining dignity and purpose in pursuit of organizational goals. Today. and achieving human connectedness and community in the workplace. and processes. Basically. and profitability. and attention was soon directed toward other human and social processes in organizations such as the design of work tasks. conflict resolution. We predict that organization development will be preferred improvement strategy in future.10 Terminal Questions 3. old jobs are being destroyed at an accelerating pace.Self Assessment Questions 3.11 Answers to SAQs and TQs 3. survive. fighting obsolescence of one¶s knowledge and skills.

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

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

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

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

OD encourages collaboration between organization leaders and members in managing culture and processes. 3. and co-learners with the client system. Specifically. 6. OD focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. 7. 10. 2. To summarize. so that change is easily observed. 9. Comprehensive Change: OD efforts focus on comprehensive change in the organization. OD views organization improvement as an ongoing process in the context of a constantly changing environment. The concept of comprehensive change is based on the systems concept-open. dynamic and adaptive system. 4. OD focuses on total system change and views organizations as complex social systems. The definition we have just analyzed contains the elements we believe are important for OD.multifunctional. OD takes a developmental view that seeks the betterment of both individuals and the organization. 2.3 Characteristics of OD 1. 3. This µplanned¶ emphasis separates OD efforts from other kinds of more haphazard changes that are frequently undertaken by organizations. OD practitioners are facilitators. Participation and involvement in problem-solving and decision-making by all levels of the organization are hallmarks of OD. Planned Change: OD is a strategy of planned change for organizational improvement. 8. Attempting to create ³win-win´ solutions is standard practice in OD programs. here are the primary distinguishing characteristics of organization development: 1. OD relies on an action research model with extensive participation by client system members. 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. 5. according to Peters. OD focuses on culture and processes. rather than focusing attention on individuals. Teams of all kinds are particularly important for accomplishing tasks and are targets for OD activities. OD . constantly shifting teams will be the dominant configuration for getting work done. 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. collaborators.

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

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

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

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

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

Distinguish between µorganizational development¶ and µmanagement development¶. Organization development should be led and supported by ±±±±±±±. 4. 2. What are the problems involved in the implementation of OD? 3. Top management 2. But OD aims at changing the entire organizational climate where the managers work.10 Terminal Questions 1. 3. State the various roles of OD. 3. Tom Peters 3. Management development aims at developing the managers individually. Who is associated with the ³Learning Organizations´? 5. OD focuses on culture and processes. Define OD. Empowerment 4. problem-focused µnature of OD¶ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. collaborative. OD is the ultimate remedy for organizational improvements and developments.1. Explain its salient features.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. Explain the various characteristics of OD. 4. 5. The participative. Peter Senge .11 Answers to SAQs and TQs SAQs: 1. 3. ±±±±±±±±± is a process which includes leadership behaviours and human resource practices. ±±±±±±± is associated with ³Liberation Management´. 3. 2. _____________is a short-term strategy. There is no µquick fix¶ to organizations¶ problems.

3 3.5. Refer section 3.Organization Development ± Interventions Unit-04. Refer section 3. Refer section 3.6 Team-building .7 5.2 Survey Feedback 4.5 Leadership Development 4.1 Introduction Objectives 4.4 Grid Training 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 2. MU0002-Unit-04. Refer section 3.6 4. Refer section 3.3 Process Consultation 4. Management development Answers to TQs: 1.Organization Development ± Interventions Structure: 4.

mediation and negotiation activities. the classification appears to be more relevant because it may specify the range of change that an organization requires. interpersonal level. Nevertheless. many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others. they make things happen. group level.11 Terminal Questions 4. other techniques like process .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. work group. OD efforts were attempted through sensitivity training. French and Bell have suggested twelve families of OD interventions: diagnostic. People¶s behaviour may be relevant to understand at individual level. team-building. the classification of OD interventions shows variation. survey feedback. management grid. Further. However. Historically.9 Role of Change Agents Self Assessment Questions 4. For example.4. 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. and survey feedback method. process consultation.12 Answers to SAQs and TQs 4. This classification of OD interventions is very comprehensive and many activities do not strictly form the part of OD as process of organizational improvement but other methods of improving the performance of the organization. Subsequently. interventions may be required to change people at all these levels. Therefore. inter-group level. A meaningful classification of OD interventions may be based on the improvement in the behaviour of people in the organization as OD is basically a behavioural approach. Interventions constitute the action thrust of organization development. grid training. inter-group activities. 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. various consultants and practitioners have different opinions about the activities which can be included in interventions.8 Change Agents 4. techno-structural activities.10 Summary 4.7 Inter Group Development 4. and organizational culture. education and training. Thus. and organizational level.´ There are various OD interventions and they are classified in different ways.

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

communication skills. significant correlation between the outcomes has not been found. both these problems may be overcome by engaging a suitable consultant and developing willingness among the members for change. Inter-group Development: At this phase. One basic reason for this phenomenon may be the consultant¶s inability to steer the organization out of troubles. Teamwork Development: The focus in this stage is to develop teamwork by analyzing team culture. To understand the importance and rationale of systematic change. The grid organization development consists of six phases. 2. 3. like other OD intervention techniques. To evaluate the styles of leadership and techniques of participation to produce desirable results. the focus is on inter-group behaviour and relations. Managerial grid: It covers various aspects of assessing managerial styles. P. 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.C is very effective intervention for organizational improvement. and problemsolving are also developed. knowledge. problem-solving. The skills relating to planning. 3. To study the organization as an interactive system and apply techniques of analysis in diagnosing its problems. From this point of view. 4.4 Grid Training Grid training is basically based on grid organization development developed by Blake and Mouton. The thrust is on moving groups from conflict to co-operation. and teamwork. and processes necessary for effectiveness at the individual. However. focuses on skills. The individuals try to learn to become managers by practice. Each group separately analyses the ideal inter-group relations. enabling individuals and groups to assess their own strengths and weaknesses. inter-group. It utilizes a considerable number of instruments. and total organizational levels. group. Process of Grid Training The basic content of grid organization development is managerial grid as discussed.organizational members to incorporate those changes.C programmes. Action steps to move towards the ideal are developed and assigned to individuals who may be engaged in building co-operative inter-group relationships. 2. P. Its specific objectives are as follows: 1. and alike. In the review of various P.C is also not free from criticisms. . and the organization as a whole. objective-setting. traditions. groups. However. 1. 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.

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

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

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

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

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

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

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

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

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

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

and Beliefs in Organization Development Unit-05-Values.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . What is survey feedback as an intervention of OD? How does it provide base for other OD interventions? 3. Explain Change agents and discuss the role of change agents in detail. Assumptions. Blake and Mouton. Refer section 4. and Beliefs in Organization Development Structure: 5. What is team-building? What are the stages of life cycle of a team? 4.2.1 Introduction . Refer section 4. MU0002-Unit-05-Values. Refer section 4. 3. Social loafing Answers to TQs: 1. Data collection 2.4 2.2 3. 4. Refer section 4.12 Answers to SAQs and TQs SAQs: 1.6 4. Assumptions.

5.2 Implications for Dealing with Groups 5.7 Terminal Questions 5. · State the implications of OD values and assumptions.4 Early Statements of OD Values and Assumptions 5.5. shaping the goals and methods of the field and distinguishing OD from other improvement strategies. · Give the statement of OD values and assumptions. and beliefs constitutes an integral part of organization development. · List the chronology of events of values.3 Implications for Designing and Running Organizations 5.3 Chronology of Events in Management and Organization Thought 5. Objectives: After studying this unit.8 Answers to SAQs and TQs 5.5. and they continue to evolve as the field itself evolves. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers. assumptions.Objectives 5.6 Summary Self Assessment Questions 5. beliefs and assumptions.2 Definitions 5.1 Introduction A set of values.1 Implications for Dealing with Individuals 5.2 Definitions . 5.5 Implications of OD Values and Assumptions 5. beliefs and assumptions. Most of these beliefs were formulated early in the development of the field. you will be able to: · Explain the meaning of values.

OD values tend to be humanistic. Piece-rate pay systems were designed to increase motivation and to prevent "soldiering. Expert engineers and supervisors designed each task and ensured it was done correctly.g. with values being beliefs about good and bad.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. assume that everyone has intrinsic worth.. . or spirit of the time. 5.3 Chronology of Events in Management and Organization Thought y Frederick Winslow Taylor s The Principles of Scientific Management (1911) launched the scientific management movement with its emphasis on time and motion studies and breaking jobs into small. the clash between fascism and democracy in World War II. the importance of fair and equitable treatment for all. Thus. the right of people to be free from arbitrary misuse of power. repetitive tasks in an attempt to find "the one best way" to do each job." Assumptions are beliefs that are regarded as so valuable and obviously correct that they are taken for granted and rarely examined or questioned. free speech) and what is undesirable or µbad¶ (e. it is a cognitive fact for the person. relatively unexamined beliefs accepted as the truth. Humanistic values proclaim the importance of the individual: respect the whole person. and democratic. As these ingredients accumulated. dishonesty).. and that rationality. Values are also beliefs and are defined as: "Beliefs about what is desirable or µgood¶ (e. research on the effects of different leadership styles. increasing awareness of the dysfunctions of bureaucracies. the laboratory training movement. Simple. and assumptions being. Evidence for the validity of these values and their supporting assumptions comes from many sources ± the Hawthorne studies. values." or slacking off. and the need for justice through the rule of law and due process. they were fashioned into a coherent value foundation for the theory and practice of organization development. Taylor s methods quickly swept the country and the world as the way to organize work. greater understanding of individual motivation and group dynamics. reason. strongly held. 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 the like. view all people as having the potential for growth and development. and beliefs provide structure and stability for people as they attempt to understand the world around them. assumptions. Values. optimistic. the human relations movement. and goodwill are the tools for making progress. and beliefs are all cognitive facts or propositions.g. Major ingredients of the zeitgeist that influenced OD values and assumptions are presented here in a brief chronology. treat people with respect and dignity. Democratic values assert the sanctity of the individual. assumptions. repetitive tasks minimized the skills required to do the job. Optimistic values posit that people are basically good.

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

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

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

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

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

permit failure. Implications of these assumptions are several. 5. and are capable of making. are the best way to satisfy social and emotional needs at work. conflict management. in addition. and so on. including peers and boss. most people wish to be accepted and to interact co-operatively with at least one small reference group. Second. at both the formal and informal levels. group members should be encouraged to learn to deal effectively with positive and negative feelings. And because suppressed feelings and attitudes adversely affect problem-solving.5.5. a church or club group. groups. Also. The second assumption is that most people desire to make. Let teams flourish because they are often the best way to get work done and. The people doing the work are generally experts on how to do it and how to do it better. greatly influences feelings of satisfaction and competence.1 Implications for Dealing with Individuals Two basic assumptions about individuals in organizations pervade organization development. Most people want to develop their potential. invest training time and money to increase group members¶ skills. not a one-on-one leadership style. leaders need to give important work to teams. set high standards. encourage risk-taking. one of the most psychologically relevant reference groups for most people is the work group. support. Hence. give responsibility. and co-operation within the group. such as a work group. the family. and organizations? 5. remove obstacles and barriers. listen. and reward success. First. most people are capable of making greater contributions to a group¶s effectiveness and development. This skill is a trainable one. The first assumption is that most individuals have drives toward personal growth and development if provided an environment that is both supportive and challenging. It is especially important that leaders adopt a team leadership style. To do this. leaders should invest in groups: Invest the time required for group development. invest energy and intelligence in creating a positive climate. The implications of these two assumptions are straightforward: Ask. give autonomy.Let us examine specific assumptions and their implications for organization leaders and members. facilitation. . a greater contribution to attaining organization goals than most organizational environments permit. Dealing appropriately with feelings and attitudes increases the level of interpersonal trust. What occurs in the work group. Another assumption is that the formal leader cannot perform all the leadership and maintenance functions required for a group to optimize its effectiveness. One implication is that group members should receive training in group effectiveness skills such as group problem-solving and decision-making. Third. and usually with more than one group. challenge. and interpersonal communication. and job satisfaction.2 Implications for Dealing with Groups Several assumptions relate to the importance of work teams and the collaborative management of team culture. A tremendous amount of constructive energy can be tapped if organizations realize and act on these assumptions. personal growth. support. not individuals. We answer the question: What are some of the implications of OD assumptions and values for dealing with individuals. group members should assist the leader with the multiple roles required for group effectiveness.

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

assumptions and beliefs help to define what OD is and guide its implementation.W.The field of organization development rests on a foundation of values and assumptions about people and organizations. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. 5. _______________ gave theory X and theory Y. Values.7 Terminal Questions 1. Values. beliefs and assumptions. OD values tend to be humanistic. This discussion was intended to articulate an appreciation of OD values and explain where they came from. 5. and assumptions are all ±±±±±±±±±± facts. 2. 3. The concept of ±±±±±±±±±± was introduced by MaxWeber. beliefs and assumptions are cognitive facts.6 Summary The field of OD rests on a foundation of values and assumptions about people and organizations. Define concepts. 5. Cognitive . A belief is a proposition about how the world works that the individual accepts as true. beliefs. 4. 5. __________ is associated with scientific management. 3. Values are also beliefs. 2. The outcome of ±±±±±±±± was that people were not cogs and organizations were not machines. Write a note about F. Self Assessment Questions 1. but are widely accepted today. What was the outcome of Hawthorne Experiments? 4. values. State the assumptions of Theory X and Theory Y. optimistic and democratic. These OD values were considered revolutionary when they emerged in the 1950s. Chronology of events in management and OD tremendously influenced OD practitioners. Taylor¶s principles of scientific management.8 Answers to SAQs and TQs SAQs: 1. These beliefs help to define what OD is and guide its implementation. Values.

Refer section 5.2 Models and Theories of Planned Change 6.2. F.2.3 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 5. Taylor 3. Douglas McGregor Answers to TQs: 1.1 Kurt Lewin and Friends 6. W.3 4.1 Introduction Objectives 6. Hawthorne experiments 5. Refer section 5. Refer section 5. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6. Refer section 5.2 2.3 3.2 Beyond the Quick Fix .2. Bureaucracy 4.3 5.

3. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs.2.5 Teams and Teamwork 6. art and science which form the knowledge base upon which OD is constructed.11 Terminal Questions 6.3. Objectives: After studying this unit.4 Porras and Robertson Model of Organizational Change 6.1 Introduction This unit describes the foundations of organization development theory and practice.9 Action Research Self Assessment Questions 6.4 Participation and Empowerment 6.7 A Normative ± Re-educative Strategy of Changing 6.8 Applied Behavioural Science 6.10 Summary 6.3 The Burke-Litwin Model of Organizational Change 6. In this discussion.4 Open Systems Thinking 6.3.3 Socio-technical Theory and Open Systems Planning 6.3. you will be able to: .6.12 Answers to SAQs and TQs 6.2 Congruence among System Elements 6.1 The Nature of Systems 6.2.6 Parallel Learning Structures 6.3 Systems Theory 6.

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

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

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

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

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

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

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

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

and shows how systems theory enhances the practice of OD. 6. and Katz and Kahn were the first to apply open systems theory to organizations in 1966. 6. Systems .5: A Change-based Organizational Framework 6. Keep this framework in mind as you read the units on OD interventions because all interventions target one or more factors shown in figures.Fig. Fig. This section explains systems theory. which views organizations as open systems in active exchange with their environment. Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950. describes the characteristics of systems.3 Systems Theory A second foundation of organization development is systems theory.4: Organizational Work-Setting Factors This model is extremely useful for OD practitioners and organizational leaders.

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

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

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

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

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

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

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

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

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

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

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

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

In parallel learning structures members have to think and behave in ways that are different from the normal roles and rules of the organization. Unfreezing 2. What are first-order and second order change according to Burke-Litwin Model of organizational change? Explain. 6. Transactional change . 3. OD interventions alter features of the work setting causing changes in individuals¶ behaviours. which in turn lead to individual and organizational improvements is the principle of Porras and Robertson model organizational change. ³Work teams are building blocks of organizational development. Action research model combines learning and doing.11 Terminal Questions 1. A fundamental belief in OD is that work teams are the building blocks of organizations. 4. 3. 2.12 Answers to SAQs and TQs SAQs: 1. Bring out the essence of ³managing beyond the quick fix´ model of organizational development. 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. Explain Kurt Lewin¶s models and theories of planned organizational change. 6. What are the features of systems theory of organizational development? 5. Systems theory views organizations as open systems in active exchange with their environment. A _____________ is defined as ³a set of elements standing in interaction.´ 5. 2.´ Comment on this statement. Ralph Kilmann 3. ±±±±±±±±±± gave the model ³Beyond the Quick Fix´.10 Summary The foundations of organizational development form the theoretical and practice underpinnings of the field. 4.1. First²order change is also called ___________. _____________ means sum of the efforts of team members is far greater than the sum of individual efforts of members. 6. Ralph Kilmann specified the critical leverage points for organizational change. The Burke-Litwin model emphasized on first-order and second-order change. ±±±±±±±±±± means moving to new level of behaviour.

2.4. Refer section 6. 7.2.2 Characteristics of Organization Culture 7.3 5.1 Introduction Objectives 7.2 3.4 Organization Culture and Effectiveness 7.5 Developing and changing Organization Culture Self Assessment Questions 7. Refer section 6. MU0002-Unit-07-Organization Culture and Climate Unit-07-Organization Culture and Climate Structure: 7. Refer section 6. System 5.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .3 Types of Organization Culture.6 Summary .Refer section 6. Refer section 6. Synergy Answers to TQs: 1.2.3 4.1 2.

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

. They often have well-defined policies. New-comers must learn those ³ropes´ in order to be accepted as full-fledged members of the group. people are driven through vision. and the way members of the organization conduct themselves with customers or other outsiders. outputs and outcomes. Hierarchical leaders are typically coordinators and organizers who keep a close eye on what is happening. Transactions are exchanges of value. Leaders in market cultures are often hard-driving competitors who seek always to deliver the goods. and in particular taking note of transaction cost. Clan The Clan organization has less focus on structure and control and a greater concern for flexibility.3.3 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. Typical examples are high product quality. this was considered the only effective way of organizing and is still a basic element of the vast majority of organizations. are particularly driven by results and are often very competitive. It has an inward focus and a sense of family and people work well together. Dominate value: These are major values that the organization advocates and expects the participants to share. Philosophy: These are policies that set forth the organization¶s beliefs about how employees and/or customers are to be treated. Hierarchies have respect for position and power. Rather than strict rules and procedures. Note that the Market organization is not one which is focused just on marketing. Market cultures are outward looking. but one where all transactions. clans often have flat organizations and people and teams act more autonomousl. shared goals. 7. In contrast to Hierarchies. Market The Market organization also seeks control but does so by looking outward. value flows between people and stakeholders with minimal cost and delay. processes and procedures. 5. internal and external are viewed in market terms. For many years. Low absenteeism and high efficiency. the way participants interact. 6. 4. Organizational climate: This is an overall ³feeling´ that is conveyed by the physical layout. Rules: There are strict guidelines related to getting along in the organization. In an efficient market organization.

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

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

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

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

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

10 Terminal Questions . MU0002-Unit-08.2 Power Defined and Explored 8.1.1 Introduction Objectives 8. Politics and Organization Development Structure: 8.3 3.7 Operating in a Political Environment 8.5 Organizational Politics Defined and Explored 8.Power. Refer section 7.Power. Politics and Organization Development Unit-08.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .4 Theories about the Sources of Social Power 8.2 2.3 Two Faces of Power 8. Refer section 7.9 Summary 8.6 The Role of Power and Politics in the Practice of OD 8. Refer section 7.8 Acquiring and using Power Skills Self Assessment Questions 8.

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

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

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

In this theory, power belongs to those persons who control or mediate desired commodities. Exchange theory and power-dependence theory are quite compatible with the ideas proposed by French and Raven. The strategic-contingency model of power asserts that power in organizations accrues to the subunits (individuals, units, or departments) most important for solving the organization¶s most critical problems. These critical problems are generally "uncertainties" posed by the environment. This theory, like the ones discussed previously, supports the notion that those who have something highly valued by- others-in this case, the special expertise needed for the organization¶s survival-have power. Salancik and Pfeffer further suggest how power is used: "Power is used by subunits, indeed, used by all who have it, to enhance their own survival through control of scarce critical resources, through the placement of allies in key positions, and through the definition of organizational problems and policies." These authors view organizational power as a good thing, for power in the hands of the critical problem solvers helps the organization cope with the various realities it faces. Henry Mintzberg has developed a theory of organizational power drawn from the organization theory literature and his own creative synthesis abilities. This theory, "is built on the premise that organizational behavior is a power game in which various players, called influencers, seek to control the organization¶s decisions and actions." The three basic conditions for the exercise of power are 1) Some source or basis of power, coupled with 2) The expenditure of energy in a 3) Politically skillful way. According to Mintzberg, the five possible bases of power are, first, control of a resource; second, control of a technical skill; and, third, control of a body of knowledge. All of these must be critical to the organization. The fourth basis is legal prerogatives-being given exclusive rights to impose choices. A fifth basis of power is access to those who have power based on the first four bases. In addition to a base of power, the influencer must have both the "will" and the "skill" to use it. An organization has many potential influencers, such as the board of directors, the managers, the top executives, the employees, the unions, suppliers, customers, regulators, and so forth. The important aspects of Mintzberg¶s theory are that the sources of power derive from possession of a commodity desired by others, that power-in-action requires will and skill, and that the organization is the context for the exercise of power. In summary, these four views of the sources of power are remarkably similar ± power stems from possession of or mediation of desired resources. The resources may be ability to reward and

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

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

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

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

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

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

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

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. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics. 8. 2. McClelland 3.11 Answers to SAQs and TQs SAQs: 1. 3. Power based on the power-receiver having identification with the power holder is called ±±±± ±±±±±±±. Organizational power is the ability of those who possess power to bring about the outcomes they desire. Harold Lasswell . 8. ±±±±±±±± defined politics as the study of who gets what. Organizational politics is defined as the study of who gets what. Define power in an organizational context and explain types of power. Power and politics are similar in nature. ±±±±±±±±±± is made up of Charisma. 4. Power 2. Power can be either positive or negative. 5. Describe briefly various theories of power. 5.. Strategic-contingency model of power asserts that power that accrues to the individuals. ±±±±±± is the intentional influence over the beliefs. Referent power 4. and are amenable to positive control. Self Assessment Questions 1. Identify the bases of individual power and the respective strategies for their success. 2. 8.10 Terminal Questions 1. units or departments is most important in solving organizational problems. 3. when. arise from known conditions. Explain the role of power and politics in the practice of OD. when and how. 4. _____________ has identified two faces of power. Define organization politics. Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another. Organizational politics involve intentional acts of influence to enhance or protect the self-interest of individuals or groups.9 Summary Power and politics are inseparable facts of organizational life. reputation and professional credibility. emotions or behaviour of people. and how.

Refer section 8.5 Quality Circles 9. Refer section 8.6 Quality of Work Life Projects .3 Socio Technical Systems 9.4 3.5 4.6 5. Refer section 8.4 Management By Objectives 9.1 Introduction Objectives 9.Refer section 8.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9. Refer section 8.2 Meaning and Definitions 9. Personality Answers to TQs: 1.2 2.5.

· Discuss the parallel Learning Structures.12 Answers to SAQs and TQs 9. Nothing is permanent except change because change is permanently changing.9 Reengineering Self Assessment Questions 9.8 Total Quality Management 9.9. One important intervention technique is Technostructural interventions because these are related to technical and structural issues such as how to divide labour and how to coordinate department which is related to Restructuring organization. These interventions vary from standardized program that have been developed and sometimes tailored program.7 Parallel Learning Structures 9. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design. · Discuss the Management By Objectives · Explain the Quality Circles. These programs are derived from careful diagnosis. .1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. An organization development intervention is a sequence of activities. In this dynamic and fluid environment. organizational problems may repeat. · Explain Reengineering. actions.11 Terminal Questions 9. These methods are receiving increasing attention in Organization Development. 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. Objectives: After studying this unit. events intended to help an organization improve its performance and effectiveness. you will be able to: · Explain the Socio technical change. · Explain Total Quality Management.10 Summary 9.

5. Succession Doesn¶t Destroy Change Effort. processes and functions to create a balance between the organization and its changing external environment. Greater Predictability. a predictable cost Implementation of group strategies involves significant long-term man-hour and consultant costs. change can be introduced relatively rapidly by top management. Advantages of Structural Interventions There are a number of reasons why a consultant should consider employing a structural intervention. The cost of structural change is generally ³front-end´ loaded. 1976. Pasmore. Managers and administrators are notoriously pragmatic.2 Meaning and Definitions Structural Intervention is related to the changes that relate elements of organization to one another. Downsizing associated with restructuring. Once diagnosed and an appropriate correction developed. In addition. Structure changes are normally ³institutionalized´ and less subject to this problem. Structural changes are consistent with their operating styles and are generally understood by practitioners. 1988): ‡ Determining the environmental demands ‡ Creating a vision statement ‡ Educating organizational members . Cummings. organization theory. structural Interventions compare quite favorably with all other alternatives. Cost is Low. Changes can involve decentralization and centralization. Organization Acceptance of Change. 4. meaning the major costs are associated with analysis and design of change. Rapidity of change. their attractiveness is also increased by the following advantages: 1. 9. From a benefit cost analysis.9. 1967. Basic reinforcement theories. It could involve the following steps (Foster. It endeavors to re-design the organization¶s structure. includes removing or adding layers to hierarchy. 3.3 Socio Technical Systems Socio-technical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. This normally is a reasonable. and OD practice enables the change agent to estimate the probable consequences of the change. and more critically. Weeks and months of group effort are saved. One problem with behavioral/ group interventions is the tendency for new managers or employees to discount or fail to continue the change program. 2.

A management technique can be applied in selected parts of the organization and will have limited implications for its other parts. many business and nonbusiness organizations have adopted this in some form or the other. In fact. and human resources of the organization by integrating the individual with organization and organization with the environment. MBO is an approach and philosophy to management and not merely a technique. Certain degree of overlapping is there. MBO employs several techniques but it is not merely the sum total of all these techniques.4 Management by Objectives Management by objectives (MBO). often MBO provides the stimulus for the introduction of new techniques of . is a technique and system which helps in improving organizational performance. though not strictly an OD intervention in the sense in which other interventions have been discussed so far.´ Based on the definition of MBO. As an approach to management. physical. On the other hand. MBO is bound to have some relationship with every management technique. Though there are some variations in the practices of MBO and. its definitional aspect. consciously directed towards the effective and efficient achievement of organizational objectives. non-specialist. with objective orientation as its essence.´ 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. it has been defined as follows: MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. It is a particular way of thinking about management. operational managerial process for the effective utilization of material. Since then. Its basic idea has been derived from the concept of participative goal setting as a technique of OD. its features can be identified as follows: 1. MBO is likely to affect every management practice in the organization. 2. therefore.‡ Creating the change structure ‡ Conducting socio-technical analysis ‡ Formulating re-design proposals · Defining the scope of the system to be re-designed · Implementing recommended changes · Evaluating changes 9. The term MBO was coined by Drucker in 1964 when he emphasized the concept of managing by results.

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

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

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

It is also called continuous quality improvement. · A major emphasis on continuous learning. · Top management support on an ongoing basis. service. · Daily operational use of the concept of internal customers. 9. self-managed teams and task forces. provides relevant information to all employees. · Continuous search for sources of defects with a goal of eliminating them entirely. · An emphasis on measurement using both statistical quality control and statistical process control techniques. statistical quality control. eliminating. It is very popular in USA in 1990s. assumes neither an upward flow of involvement nor that consensus decision making. quality. Reengineering focuses on visualizing and streamlining any or all business processes in the organization. It seeks to make such processes more efficient by combining. Features that characterize TQM: · Primary emphasis on customers. Self Assessment Questions . · Participative management.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. and extensive use of employee participation. · Competitive benchmarking. including the use of quality circles.TQM pushes decision making power downwards in the organization. Reengineering is a top-down process.8 Total Quality Management It is a long term effort that orients all of an organization¶s activities around the concept of quality. contemporary measures of performance. and speed. · An emphasis on teams and teamwork. such as cost. statistical process control. ties reward to performance and increase workers knowledge and skills through extensive training. A combination of a number of organization improvement techniques and approaches.9.

consciously directed towards the effective and efficient achievement of organizational objectives. There are a number of reasons why a consultant should consider employing a structural intervention.11 Terminal Questions 1. Discuss Socio Technical Systems? 2. Drucker 3. MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner.1.12 Answers to SAQs and TQS SAQs: 1. The term MBO was coined by _________ in 1964. It is also called continuous quality improvement. __________ represents a participative approach to employee involvement in problem solving and productivity improvement. 9.10 Summary An organization development intervention is a sequence of activities. structural Interventions compare quite favorably with all other alternatives. From a benefit cost analysis. events intended to help an organization improve its performance and effectiveness. Explain Management By Objectives? 4. Sociotechnical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. 2. Intervention 2. actions. What are the advantages of structural interventions? 3. Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. Quality circle Answers to TQs: . 9. 9. TQM pushes decision making power downwards in the organization. 3. events intended to help an organization improve its performance and effectiveness. ties reward to performance and increase workers knowledge and skills through extensive training. Write a short note on Total Quality Management. An organization development __________ is a sequence of activities. actions. provides relevant information to all employees.

10.9 Answers to SAQs and TQs .4 Causes for Resistance to Change.7 Summary 10.3 2. MU0002-Unit-10-Managing Change in Organization Development Unit-10-Managing Change in Organization Development Structure: 10.2 Nature of Change 10. Refer section 9. Refer section 9.8 Terminal Questions 10.2 3.Refer section 9.1 Introduction Objectives 10.1. Refer section 9.6 Methods of Reducing Resistance to Change. Self Assessment Questions 10.5 Impact of Change on the Future Manager 10.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .3 Resistance to Change 10.5 4.

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

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

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.

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

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

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

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

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

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

Refer section 10. · Harigopal K. eighth edition. Organization Development & Change. Refer section 10. both at the formal and informal levels. N. or the like. Explain the nature of change? 2. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. Bell.4 3.. Regal Publications New Delhi. Modern Organization Development and Change.2 2. · J.. Prentice-Hall of India Private Limited.complaints. P.Singh.management of Organization Change. Principles and Practices. Discuss the methods of reducing resistance to change. French and Cecil H. Psychological factors 3.9 Answers to SAQs and TQS SAQs: 1.6. Why do organizations resist change? 3. P. Thomson South Western. Refer section 10. Reference: · Wendell L. at the level of individual and at the level of group. 10. Thomson · Daft Richard L. Jain. engaging in a work showdown. through group dynamics. Problem of overcoming resistance to change can be handled at two levels. Participation Answers to TQs: 1. threatening to go on strike. Jr. Organizational change 2. 10. New Delhi. Organization Theory and Design. . that is. Organization Development. New Delhi.8 Terminal Questions 1.Response Books. · Cummings & Worley.

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

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