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

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

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

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

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

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

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

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

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

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

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

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

. 8. There are three levels of management-top. lower levels of management. . 1. Managers perform different roles to discharge their responsibilities. 3.e. 6. public organisations in the private sector and non-business sector. DecisionMaking Administration determines Management decides who what is to be done and when it shall implement the is to be done. operative workforce for the execution of plans. administrative decisions. Management is largely found at the middle and lower levels and administration is found at the higher levels. 1. 5. _________. It is the management which transforms physical resources of an organization into productive resources. Define management. middle and lower. Human skills are important at all managerial levels. Status Administration refers to Management is relevant at higher levels of management.8 Summary Management is concerned with getting things done through other people. ___________. Lower level managers require and use a greater degree of technical skill and managers at higher levels use a greater degree of conceptual skill. Management creates ________ and motivates employees to work harder and better by providing necessary guidance. Direction of It is concerned with leading It is concerned with Human Resources and motivation of middle level leading and motivation of executives. __________is principally the task of planning.4.9 Terminal Questions 1. Still management is not completely a profession. environmental forces. machinery and methods or ways of doing things) depends to a great extent on the quality of management. Five M¶s of management (________. Usage of Term The term µadministration¶ is The term µmanagement¶ is often associated with widely used in business government offices. i. Explain its characteristics. making strategic plans to deal plans and policies of the effectively with the organisation. counseling and effective leadership. Environment Administration has direct Management is mainly interaction with external concerned with internal environment of business and forces. 7. 2. Self Assessment Questions 1. organisations. objectives. co-ordinating. motivating and controlling the efforts of others towards a specific objective.

3 Planning 2.3 2.1 Introduction Objectives 2.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 Process of Management 2. teamwork Answers to TQs: 1.4 Organizing . Money. Refer section 1.5 3. materials. Refer section 1. Management 2. manpower 3. Refer section 1. 1. Bring out the difference between Administration and Management.2.2. Discuss the importance of management.1. 3. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.10 Answers to SAQs and TQs SAQs: 1.

2. 1949): 1. Staffing.8 Summary 2.1 Introduction Follett (1933) defined management as "the art of getting things done through people´. Controlling However. Management functions are as follows (Fayol. .7 Motivating Self Assessment Questions 2. · Explain different functions of management Process. Directing.6 Directing 2. One can also think of management functionally. as the action of measuring a quantity on a regular basis and of adjusting some initial plan. you will be able to: · Define Management process.5 Staffing 2. · Explain Planning. Planning 2.10 Answers to SAQs and TQs 2. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent. Commanding 4. Objectives: After this studying this unit.9 Terminal Questions 2. management functions have been regrouped into four categories. Organizing 3. Organizing. in recent time. Coordinating 5. Motivating.

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

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

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

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

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

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

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

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

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

6 Copyright © 2009 SMU Powered by Sikkim Manipal University . Staffing Answers to TQs: 1. Reference 2. Reference 2.4 Categories of OD 3.8 Problems in OD .1.2 Definitions 3.3 Characteristics of OD 3.6 OD and Management Development 3. Reference 2.5 Goals of OD 3. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3. SWOT 3.1 Introduction Objectives 3. Follett 2.7 Role of OD 3.3 2.5 3.

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

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

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

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

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

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

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

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

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

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

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

Organization development should be led and supported by ±±±±±±±. ±±±±±±±±± is a process which includes leadership behaviours and human resource practices. Top management 2. 3. _____________is a short-term strategy. problem-focused µnature of OD¶ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. Who is associated with the ³Learning Organizations´? 5. But OD aims at changing the entire organizational climate where the managers work. ±±±±±±± is associated with ³Liberation Management´.11 Answers to SAQs and TQs SAQs: 1. Distinguish between µorganizational development¶ and µmanagement development¶. Define OD.1. 4. State the various roles of OD. 4.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. What are the problems involved in the implementation of OD? 3. OD is the ultimate remedy for organizational improvements and developments. Peter Senge . 5. Tom Peters 3. collaborative.10 Terminal Questions 1. 3. OD focuses on culture and processes. 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. 3. Explain its salient features. 3. Management development aims at developing the managers individually. The participative. 2. There is no µquick fix¶ to organizations¶ problems. Empowerment 4. 2.

6 Team-building .5 Leadership Development 4.3 Process Consultation 4.4 Grid Training 4. Management development Answers to TQs: 1. MU0002-Unit-04.3 3.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .1 Introduction Objectives 4.Organization Development ± Interventions Structure: 4. Refer section 3.5.2 2. Refer section 3. Refer section 3.7 5.6 4.2 Survey Feedback 4.Organization Development ± Interventions Unit-04. Refer section 3. Refer section 3.

9 Role of Change Agents Self Assessment Questions 4. team-building. People¶s behaviour may be relevant to understand at individual level. work group. Nevertheless. various consultants and practitioners have different opinions about the activities which can be included in interventions. education and training. they make things happen. the classification of OD interventions shows variation. inter-group level.8 Change Agents 4. and organizational level. 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. group level. process consultation. grid training. interpersonal level. mediation and negotiation activities. However. For example.7 Inter Group Development 4. Further. interventions may be required to change people at all these levels. other techniques like process . 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. techno-structural activities. inter-group activities. the classification appears to be more relevant because it may specify the range of change that an organization requires.4. and organizational culture. management grid. OD efforts were attempted through sensitivity training. Historically. Therefore.´ There are various OD interventions and they are classified in different ways. Subsequently. Interventions constitute the action thrust of organization development. 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. many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others. and survey feedback method. 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.10 Summary 4.11 Terminal Questions 4.1 Introduction OD interventions refer to various activities which a consultant and client organization perform for improving organizational performance through enabling organizational members better manage their behaviour. Thus. French and Bell have suggested twelve families of OD interventions: diagnostic.12 Answers to SAQs and TQs 4. survey feedback.

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

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

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

brings hope for better times in the future. teambuilding is the most important. widely accepted. Poor leadership means an absence of hope. norming. In organizations characterized by poor leadership. employees expect nothing positive. therefore.recognizing that tough decisions need to be made. and adjourning as shown below: Fig. they do represent a broad pattern that may be observed and predicted in many settings across team¶s time together. by the time you have to deal with difficult changes. Leadership before. problems in team-work. if allowed to go on for too long. employees learn that leaders will act in indecipherable ways and in ways that do not seem to be in anyone¶s best interests. but more importantly. storming. results in an organization becoming completely nonfunctioning. and applied OD intervention for organizational improvement. Before going through how team-building exercise can be undertaken to develop effective teams. must labor under the weight of employees who have given up. and that makes coping with drastic change much easier. how synergy is generated through team-work.1: Life Cycle of a Team Though these are not followed rigidly. 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. Unfortunately. The best way to summarize is that there is a climate of trust between leader and the rest of the team. if haven¶t established a track record of effective leadership. which.6 Team-building Various OD interventions discussed so far have their specific implications for OD and.´ 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. are closely associated with a very few advocates and practitioners. during and after change implementation is THE key to getting through the swamp. have no faith in the system or in the ability of leaders to turn the organization around. In a climate of distrust. As against these. These stages are: forming. performing. 4. 4. they often pass through several stages as they learn to work together as a team. it may be too late. The organization must deal with the practical impact of unpleasant change. and features of effective team so that team-building exercises focus more sharply on developing effective team. These stages are the result of a variety of questions and issues that team members face such as ³who will be members of the team?´ ³Who will perform what functions?´ ³Who will contribute what?´ ³What rules will be . Life Cycle of a Team When a number of individuals begin to work at interdependent jobs. For example. let us consider the life cycle of a team. The existence of this trust.

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

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

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

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

. the stying with the topic or going off on tangents. (ii) Attacking: deriding. The concept of Johari Window may also be applied. the total team is convened to review what has been learned and to identify what the next step should be. 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. seeking relevant information. cynicism. who was trying to resolve the differences. talking together with speaker. and who will be responsible for team projects in a group that has not developed a satisfactory division of responsibility. Developing Interactive Skills: The basic objective of this process is to increase the ability among the people as to how they should interact with others and engage in constructive behaviour. It involves deciding who will take care of each area of the team¶s responsibilities. who was talking more or who was talking less. understanding. Follow-up Action: This is the final stage in team-building. information. people themselves take assignments to increase specific constructive behaviours and decrease specific negative behaviours. ensuring. there is a strong possibility that members may learn constructive behaviours and leave negative behaviours. about the issue. (ii) Bringing in: harmonizing. At the time of discussion of feedback. belittling. Often. 5. Such feedback generally provides members to evaluate the values but at the same time. The feedback should be given to the members about their feelings. etc. undermining morale. (iv) Innovative: bringing in new relevant ideas. encouraging others to participate. Following are the examples of constructive and negative behaviours: Constructive Behaviour: (i) Building: developing and expanding the ideas of others. etc. The discussion should continue until all members of the team have commented. clarifying and setting differences in perception concerning responsibility and authority in the team. criticizing person. This is quite helpful in developing teamwork. feelings. Followup action also helps in overcoming the drawback involved at the initial stages of team-building. This suggests that even people are not fully aware of themselves. also provides opportunity to understand themselves. (iii) Negative: cooling. If this process is adopted several times. 4.3. members report about the painful feelings that they have at the time of evaluation of their feelings. At this stage. Negative Behaviour (i) Over talk: interrupting. the way people talk about the issue. with complex division of responsibility and authority among members. (iii) Clarifying: resting.

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

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

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

Refer section 4.1 Introduction . Refer section 4. 3.6 4. MU0002-Unit-05-Values. and Beliefs in Organization Development Unit-05-Values. Assumptions. 4. Explain Change agents and discuss the role of change agents in detail.2. What is survey feedback as an intervention of OD? How does it provide base for other OD interventions? 3.12 Answers to SAQs and TQs SAQs: 1. Refer section 4.2 3. and Beliefs in Organization Development Structure: 5. Refer section 4. Assumptions. Social loafing Answers to TQs: 1.4 2.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . What is team-building? What are the stages of life cycle of a team? 4. Blake and Mouton. Data collection 2.

7 Terminal Questions 5.3 Chronology of Events in Management and Organization Thought 5.4 Early Statements of OD Values and Assumptions 5. Objectives: After studying this unit.3 Implications for Designing and Running Organizations 5. · List the chronology of events of values.2 Definitions .Objectives 5.5. shaping the goals and methods of the field and distinguishing OD from other improvement strategies.2 Definitions 5. you will be able to: · Explain the meaning of values. · Give the statement of OD values and assumptions. beliefs and assumptions. 5. and beliefs constitutes an integral part of organization development.1 Implications for Dealing with Individuals 5.5.2 Implications for Dealing with Groups 5.5.6 Summary Self Assessment Questions 5.1 Introduction A set of values.5 Implications of OD Values and Assumptions 5. Most of these beliefs were formulated early in the development of the field. and they continue to evolve as the field itself evolves. assumptions. · State the implications of OD values and assumptions. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers. beliefs and assumptions.8 Answers to SAQs and TQs 5.

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

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

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

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

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

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

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

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

7 Terminal Questions 1. Chronology of events in management and OD tremendously influenced OD practitioners. Values. Taylor¶s principles of scientific management. These OD values were considered revolutionary when they emerged in the 1950s. Values are also beliefs. 5. What was the outcome of Hawthorne Experiments? 4. State the assumptions of Theory X and Theory Y. optimistic and democratic.W. This discussion was intended to articulate an appreciation of OD values and explain where they came from. beliefs and assumptions. The outcome of ±±±±±±±± was that people were not cogs and organizations were not machines. __________ is associated with scientific management.The field of organization development rests on a foundation of values and assumptions about people and organizations.6 Summary The field of OD rests on a foundation of values and assumptions about people and organizations. 2. Self Assessment Questions 1.8 Answers to SAQs and TQs SAQs: 1. values. 5. The concept of ±±±±±±±±±± was introduced by MaxWeber. 5. assumptions and beliefs help to define what OD is and guide its implementation. 3. 5. Values. but are widely accepted today. and assumptions are all ±±±±±±±±±± facts. Write a note about F. Values. 4. Define concepts. 3. _______________ gave theory X and theory Y. Cognitive . 2. beliefs. A belief is a proposition about how the world works that the individual accepts as true. These beliefs help to define what OD is and guide its implementation. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. beliefs and assumptions are cognitive facts. OD values tend to be humanistic.

2 Models and Theories of Planned Change 6. Refer section 5. Refer section 5.2. Bureaucracy 4.1 Introduction Objectives 6. W. Hawthorne experiments 5.2.3 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 5. Taylor 3. Refer section 5. Refer section 5. F. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.2.2 2.3 5.3 3.2 Beyond the Quick Fix .1 Kurt Lewin and Friends 6. Douglas McGregor Answers to TQs: 1.3 4.

3.4 Porras and Robertson Model of Organizational Change 6. In this discussion. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs.3 Systems Theory 6. art and science which form the knowledge base upon which OD is constructed.3 Socio-technical Theory and Open Systems Planning 6.3 The Burke-Litwin Model of Organizational Change 6.5 Teams and Teamwork 6.6.11 Terminal Questions 6. you will be able to: .2 Congruence among System Elements 6.8 Applied Behavioural Science 6.1 The Nature of Systems 6.6 Parallel Learning Structures 6.3.10 Summary 6. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning. Objectives: After studying this unit.3.12 Answers to SAQs and TQs 6.4 Participation and Empowerment 6.1 Introduction This unit describes the foundations of organization development theory and practice.3.7 A Normative ± Re-educative Strategy of Changing 6.2.9 Action Research Self Assessment Questions 6.4 Open Systems Thinking 6.2.

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

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

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

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

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

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

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

according to Porras and Robertson. and rewards will affect organizing arrangements. The work setting plays a central role in this model and consists of four factors: organizing arrangements. and these behaviour changes occur when elements of the work setting have been modified by OD interventions. 6.Fig. management style. physical setting. and interaction processes will affect social factors. Interventions that focus on job design and work flow design will affect technology. The basic premise is that OD interventions alter features of the work setting causing changes in individuals¶ behaviours. It is how OD works.2. This model shows how OD interventions can be linked to factors in the work setting.3: The Burke Litwin Model of Organizational Performance and Change 6.4 Porras and Robertson Model of Organizational Change Jerry Porras and his associates developed a model of how organization development works. Interventions that focus on culture. which determine organizational performance and individual development. which in turn lead to individual and organizational improvements. it is described in a discussion by Porras and Peter Robertson. which influence on-the job behaviours. Following figure shows the work setting in the larger organizational framework. The premise modeled here is that work setting factors influence organizational members¶ cognitions (they learn what is expected. strategies. OD interventions that focus on goals. rewarded). Organizational change occurs only when individuals change their behaviour. For example. . required. and technology. social factors.

Fig.5: A Change-based Organizational Framework 6.3 Systems Theory A second foundation of organization development is systems theory. 6. Fig. and shows how systems theory enhances the practice of OD. Systems .4: Organizational Work-Setting Factors This model is extremely useful for OD practitioners and organizational leaders. Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950. 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. which views organizations as open systems in active exchange with their environment. This section explains systems theory. describes the characteristics of systems. and Katz and Kahn were the first to apply open systems theory to organizations in 1966.

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

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

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

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

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

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

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

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

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

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

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

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

Explain Kurt Lewin¶s models and theories of planned organizational change.10 Summary The foundations of organizational development form the theoretical and practice underpinnings of the field. 2. 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.12 Answers to SAQs and TQs SAQs: 1. 3.11 Terminal Questions 1. What are the features of systems theory of organizational development? 5. 6. Ralph Kilmann 3. Action research model combines learning and doing. A _____________ is defined as ³a set of elements standing in interaction. 2. 4. 6. 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. ±±±±±±±±±± means moving to new level of behaviour. _____________ means sum of the efforts of team members is far greater than the sum of individual efforts of members. OD interventions alter features of the work setting causing changes in individuals¶ behaviours.´ Comment on this statement. Unfreezing 2. Systems theory views organizations as open systems in active exchange with their environment. 6. 3. In parallel learning structures members have to think and behave in ways that are different from the normal roles and rules of the organization.1. What are first-order and second order change according to Burke-Litwin Model of organizational change? Explain. First²order change is also called ___________. Ralph Kilmann specified the critical leverage points for organizational change.´ 5. Transactional change . A fundamental belief in OD is that work teams are the building blocks of organizations. ±±±±±±±±±± gave the model ³Beyond the Quick Fix´. 4. The Burke-Litwin model emphasized on first-order and second-order change. Bring out the essence of ³managing beyond the quick fix´ model of organizational development.

3 Types of Organization Culture. Refer section 6.2.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .2. Refer section 6.3 5.2 Characteristics of Organization Culture 7.2. Refer section 6.1 Introduction Objectives 7. MU0002-Unit-07-Organization Culture and Climate Unit-07-Organization Culture and Climate Structure: 7. 7.5 Developing and changing Organization Culture Self Assessment Questions 7.Refer section 6. System 5.3 4.4. Refer section 6. Synergy Answers to TQs: 1.6 Summary .2 3.4 Organization Culture and Effectiveness 7.1 2.

norms and tangible signs (artifacts) of organization members and their behaviors. despite the best-laid plans. and rituals related to deference and demeanor. Culture is one of those terms that¶s difficult to express distinctly. you will be able to: · Understand Organization Culture. do not do too little?´ .7 Terminal Questions 7. Practitioners are coming to realize that. ± similar to what you can use to get a feeling about someone¶s personality. 2.7. 1986). organizational culture is the personality of the organization. Which in many organizations come down to ³Do not do too much. Objectives: After studying this unit. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration.1 Introduction Basically. Observed behavioral regularities. You can tell the culture of an organization by looking at the arrangement of furniture. discovered. Standards of behavior exist. including guidelines on how much work to do. the culture of a large. Members of an organization soon come to sense the particular culture of an organization. 7. and validated enough to be taught to new members as the correct ways of perceiving. what they brag about. what members wear. · Describe different types of Organization Culture · Explain organization culture and effectiveness. When organizational participants interact with one another. etc. For example. they use common language.8 Answers to SAQs and TQs 7.2 Characteristics of Organization Culture Organizational culture has a number of important characteristics. but everyone knows it when they sense it. but also changing the corporate culture as well. Culture is comprised of the assumptions. thinking. Some of the most readily agreed upon are the following: 1. · Discuss about developing and changing organization culture. terminology. and feeling in relation to these problems (Schein. Comprehensively organization culture is the pattern of basic assumptions that is invented. organizational change must include not only changing structures and processes. The concept of culture is particularly important when attempting to manage organization-wide change. values. Norms. Martin and Meyerson. for-profit corporation is quite different than that of a hospital which is quite different than that of a university.

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

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

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

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

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

7. 9. Market 3. Organizational effectiveness can be measured through various approaches. effectiveness through adaptive-coping cycle has been discussed. 7. Causal variables Answers to TQs: . are particularly driven by results and are often very competitive. Self Assessment Questions 1. Briefly explain different types of organizational culture. Factors in organizational effectiveness include casual variables. 2. Effectiveness of an organization can be increased through economic man approach and administrative man approach. Organizations to be successful must be efficient and effective. 7.7 Terminal Questions 1. 2. system-resource approach.6 Summary Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. intervening variables and end-result variables and there exists interrelationship among these variables.goal approach. and strategic constituencies approach. ________cultures are outward looking.8. Finally. Artifacts 2. ___________are those factors that influence the course of development within an organization and its results or accomplishment. 3. _____are the visible manifestations of culture as seen in the physical and social environment of the organization.8 Answers to SAQs and TQs SAQs: 1. behavioural approach. Discuss the development and change of organizational development. Stay the course by being persistent. Move quickly and decisively to build momentum and to defuse resistance to the new culture. Explain the characteristics of organization culture. 3.

MU0002-Unit-08.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 2.Power.3 3.10 Terminal Questions .4 Theories about the Sources of Social Power 8.6 The Role of Power and Politics in the Practice of OD 8.1 Introduction Objectives 8.5 Organizational Politics Defined and Explored 8.8 Acquiring and using Power Skills Self Assessment Questions 8.1. Politics and Organization Development Unit-08. Refer section 7. Refer section 7.9 Summary 8.3 Two Faces of Power 8. Refer section 7. Politics and Organization Development Structure: 8.7 Operating in a Political Environment 8.Power.2 Power Defined and Explored 8.

One person exerts power over another to the degree that he is able to exact compliance as desired.11 Answers to SAQs and TQs 8. 8. Recent years have seen a sizable outpouring of theory and research on power and politics from which OD practitioners have derived implications and applications for the field but we are still in the early stages of knowing how power and organization development should be related. 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. you will be able to: · Define power and politics in organizations.¶ To have power is to be able to get desired things done." . power must be exercised." ³Power is the ability of those who possess power to bring about the outcomes they desire.8. we examine power and politics in relation to organization development. The French word µpouvoir¶ stands for both the noun µpower¶ and the verb µto be able. and for change to occur in an organization. In this unit. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics.2 Power Defined and Explored "Power is the intentional influence over the beliefs. to effect outcomes. As Warner Burke observes: "Organization development signifies change. · Explain the role of power and politics in the practice of OD. but kinetic power is the act of doing so. That criticism was essentially correct for many years although it is less valid today. · Acquire skills to handle power and politics in organizations.1 Introduction Power and politics.´ Organization development has been criticized for not taking into account power in organizations. emotions." "Power is defined in this unit simply as the capacity to effect (or affect) organizational outcomes.´ ³A has power over B to the extent that he can get B to do something that B would otherwise not do. Objectives: After this studying this unit. Potential power is the capacity to do so. must be understood if one is to be effective in organizations. indisputable facts of organizational life. and behaviours of people.actions and the decisions that precede them. · Explain theories about the sources of power.

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

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

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.

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

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

Attention to these rules can save OD practitioners time and energy that can be more profitably invested in the OD program. individual power derives from knowledge. and the characteristics and behaviors of powerholders.1: Power Base and Power Strategy Connection Individual Power Bases Knowledge · Expertise · Information · Tradition Others¶ Support y y Strategies for Success Playing It Straight · Use data to convince · Focus on target group · Be persistent Using Social Networks · Alliances and coalitions · Deal with decision maker · Contacts for information Political access Staff support . but these give the flavor of the issues one must consider when operating in a political environment. yet legitimate means of acquiring power. not power activist or power broker." OD practitioners have typically pursued a "playing it straight" strategy as their sole means of exerting power. problem solver. Networking is recognized as a potent. dealing directly with powerholders and decision makers. Illegitimate behavior causes others to try to exert greater control over the situation. 8. and using contacts for information. The authors propose adding the "using social networks" strategy to their repertoires. We believe the legitimate role of the OD practitioner is that of facilitator. thereby greatly expanding practitioner influence." "using social networks. We could propose more rules of thumb." which arouses defensive actions. negotiations the nature of power and politics. but that does not mean practitioners must be naive or incompetent in the political arena. A subtle phenomenon is involved here: when people engage in illegitimate behavior.Rule Seven: Mind your own business because to do otherwise is to invite political trouble. catalyst. Earlier we stated that the OD practitioner should learn as much as possible about bargaining. As shown in the figure. viable. others¶ support. Three successful power strategies are "playing it straight. One carries out such a strategy by participating in alliances and coalitions. Table 8. and personality characteristics. the strategy and tactics of influence.8 Acquiring and Using Power Skills The OD practitioner is neither power activist nor power broker. Illegitimate behavior encroaches on others¶ legitimate "turf." and "going around the formal system. and educator. such behavior is often interpreted as politically motivated.

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

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

and how. 3. when and how. and are amenable to positive control. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics.11 Answers to SAQs and TQs SAQs: 1. ±±±±±±±±±± is made up of Charisma. Power based on the power-receiver having identification with the power holder is called ±±±± ±±±±±±±. Strategic-contingency model of power asserts that power that accrues to the individuals. 2. 8. reputation and professional credibility. _____________ has identified two faces of power. Self Assessment Questions 1. Harold Lasswell . emotions or behaviour of people. Power 2.. arise from known conditions. Define power in an organizational context and explain types of power. Describe briefly various theories of power. ±±±±±± is the intentional influence over the beliefs. Power and politics are similar in nature. 3. 2. Identify the bases of individual power and the respective strategies for their success. 4. 5. Organizational politics is defined as the study of who gets what. Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another. 5. Referent power 4. Explain the role of power and politics in the practice of OD. ±±±±±±±± defined politics as the study of who gets what. 8.10 Terminal Questions 1.9 Summary Power and politics are inseparable facts of organizational life. Organizational politics involve intentional acts of influence to enhance or protect the self-interest of individuals or groups. Organizational power is the ability of those who possess power to bring about the outcomes they desire. Define organization politics. Power can be either positive or negative. McClelland 3. 8. when. 4. units or departments is most important in solving organizational problems.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.

5 4.4 Management By Objectives 9. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9.2 2.6 Quality of Work Life Projects .Refer section 8. Personality Answers to TQs: 1.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .5. Refer section 8.5 Quality Circles 9. Refer section 8.4 3.3 Socio Technical Systems 9.6 5.1 Introduction Objectives 9. Refer section 8. Refer section 8.2 Meaning and Definitions 9.

· Discuss the Management By Objectives · Explain the Quality Circles.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. events intended to help an organization improve its performance and effectiveness.11 Terminal Questions 9. . Nothing is permanent except change because change is permanently changing. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design. Objectives: After studying this unit. In this dynamic and fluid environment.12 Answers to SAQs and TQs 9. · Explain Total Quality Management.9 Reengineering Self Assessment Questions 9.10 Summary 9. These methods are receiving increasing attention in Organization Development.8 Total Quality Management 9. One important intervention technique is Technostructural interventions because these are related to technical and structural issues such as how to divide labour and how to coordinate department which is related to Restructuring organization. · Discuss the parallel Learning Structures. actions.9. These interventions vary from standardized program that have been developed and sometimes tailored program. These programs are derived from careful diagnosis. organizational problems may repeat. you will be able to: · Explain the Socio technical change. · Explain Reengineering. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future. An organization development intervention is a sequence of activities.7 Parallel Learning Structures 9.

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

MBO is an approach and philosophy to management and not merely a technique. operational managerial process for the effective utilization of material. As an approach to management. though not strictly an OD intervention in the sense in which other interventions have been discussed so far. consciously directed towards the effective and efficient achievement of organizational objectives. The term MBO was coined by Drucker in 1964 when he emphasized the concept of managing by results. its definitional aspect. MBO is likely to affect every management practice in the organization. 2.4 Management by Objectives Management by objectives (MBO). Though there are some variations in the practices of MBO and.´ The integration of individual and organizational objectives through MBO has been emphasized by Chakravarty when he has defined MBO as follows: ³MBO is a result-centered. non-specialist.´ Based on the definition of MBO. It is a particular way of thinking about management. it has been defined as follows: MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. Its basic idea has been derived from the concept of participative goal setting as a technique of OD.‡ 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. is a technique and system which helps in improving organizational performance. Certain degree of overlapping is there. many business and nonbusiness organizations have adopted this in some form or the other. A management technique can be applied in selected parts of the organization and will have limited implications for its other parts. physical. often MBO provides the stimulus for the introduction of new techniques of . its features can be identified as follows: 1. therefore. On the other hand. Since then. with objective orientation as its essence. MBO is bound to have some relationship with every management technique. In fact. and human resources of the organization by integrating the individual with organization and organization with the environment. MBO employs several techniques but it is not merely the sum total of all these techniques.

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

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

appropriate feedback and employee discretion. require joint participation by union and management in the process of work-designing. Objectives are neither set at the top and communicated to the bottom nor are they set at the bottom and go up. . what happens at each level may affect other levels also. 9.6 Quality of Work Life Based on the research of Eric Trist et al. but in its contemporary form. quality groups are often compulsory and organized around specific work teams. Quality circle program consists of several circles. it is used as an input for recycling objectives and other actions. hierarchical structure. The original idea of quality circles involved small groups of volunteers meeting on a regular basis. Therefore. in general. Recycling: Though appraisal is the last aspect of MBO process. Knowledge Management involves capturing the organization¶s collective expertise wherever it resides (in databases. or in people¶s heads) and distributing it to the people who need it in a timely and efficient way. It Consists of a steering committee and a number of working groups that: · Study what changes are needed in the organization. The most distinguishing feature of QWL program is the development of self-managing work groups which consist of multi-skilled workers.5 Quality Circles Quality circle is one of the most popular methods in the USA which was originally developed in Japan in 1950s. Quality circle requires a managerial philosophy and culture that promotes sharing power. at the Tavistcock Institute of Human Relations in London. · Make recommendations for improvement. knowledge. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. each having three to fifteen members. information. Objective setting is a joint process through interaction between superior and subordinate. 9. and rewards. Groups representing various levels and functions work to open new channels of communication outside of and parallel to the normal. QWL programs. and · Then monitor the resulting change efforts. Some organizations have even gone as far as setting targets for the number of suggestions quality groups are expected to come up with. Parallel Learning Structures may be a form of Knowledge Management. 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. on paper. which consequently result into high level of task variety. 9. this approach looked both at technical and human sides of organizations and how they are interrelated.Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement.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.6.

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

actions. Intervention 2.1. Sociotechnical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. An organization development __________ is a sequence of activities. actions. Write a short note on Total Quality Management. From a benefit cost analysis. Quality circle Answers to TQs: . MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. consciously directed towards the effective and efficient achievement of organizational objectives. __________ represents a participative approach to employee involvement in problem solving and productivity improvement. structural Interventions compare quite favorably with all other alternatives. What are the advantages of structural interventions? 3. 9.11 Terminal Questions 1. Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement. events intended to help an organization improve its performance and effectiveness. 3. events intended to help an organization improve its performance and effectiveness. Drucker 3. 2. Explain Management By Objectives? 4. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. ties reward to performance and increase workers knowledge and skills through extensive training. 9. TQM pushes decision making power downwards in the organization.10 Summary An organization development intervention is a sequence of activities.12 Answers to SAQs and TQS SAQs: 1. 9. provides relevant information to all employees. There are a number of reasons why a consultant should consider employing a structural intervention. It is also called continuous quality improvement. Discuss Socio Technical Systems? 2. The term MBO was coined by _________ in 1964.

10.2 3. Self Assessment Questions 10.5 4.7 Summary 10.3 Resistance to Change 10.3 2.1 Introduction Objectives 10.2 Nature of Change 10.4 Causes for Resistance to Change. Refer section 9. Refer section 9. MU0002-Unit-10-Managing Change in Organization Development Unit-10-Managing Change in Organization Development Structure: 10.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .6 Methods of Reducing Resistance to Change.1. Refer section 9.9 Answers to SAQs and TQs .8 Terminal Questions 10.5 Impact of Change on the Future Manager 10.Refer section 9.

cope with the ongoing changes successfully in the first instance. · Discuss the nature of change · Explain resistance to change and the factors which resist change. Objectives: After studying this unit.2 Nature of Change The term µchange¶ refers to an alteration in a system. you will be able to: · Explain the meaning of organization change. or social. some parts may be affected directly. 2. which are major ones.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. Hence. indirectly. some changes which are of minor type may be absorbed by the existing equilibrium. and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other. In this dynamic and fluid environment. Nothing is permanent except change because change is permanently changing. and others. job design and people. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented). Newstrom and Davis have explained the impact of a change in any part of the organization on the total organization.whether physical. organizational change is the alteration of work environment in an organization. and others. organizational problems may repeat. structural arrangement. 3.10. However. They have illustrated it by comparing an organization to an air-filled . Organizational change is a continuous process. · Impact of change on future managers. biological. less. The type of new equilibrium depends on the degree of change and its impact on the organization. some parts of organization may be affected more. others. It implies a new equilibrium between different components of the organization ± technology. Thus. organizational change may have the following features: 1. Any change may effect the whole organization. Thus. 10. 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. it disturbs the old equilibrium necessitating the development of a new equilibrium. · State the methods of reducing resistance to change. When change occurs in any part of the organization. may require special change efforts.

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

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.

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

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

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

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

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

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

Principles and Practices. New Delhi. Modern Organization Development and Change. P. Organizational change 2. at the level of individual and at the level of group. Reference: · Wendell L. Prentice-Hall of India Private Limited. 10. N.2 2.management of Organization Change.8 Terminal Questions 1. Organization Development & Change. Jr. . New Delhi. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. Thomson South Western. Discuss the methods of reducing resistance to change. Organization Development.4 3. Explain the nature of change? 2. engaging in a work showdown. Why do organizations resist change? 3. Organization Theory and Design.9 Answers to SAQs and TQS SAQs: 1.Singh. French and Cecil H.Response Books. or the like. · Harigopal K. Regal Publications New Delhi.. Thomson · Daft Richard L. · Cummings & Worley. Jain. Problem of overcoming resistance to change can be handled at two levels. Refer section 10. Psychological factors 3. eighth edition. Refer section 10. through group dynamics. that is. Refer section 10.. both at the formal and informal levels. Participation Answers to TQs: 1.6. · J. threatening to go on strike. Bell. 10.complaints. P.

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