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

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

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

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

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

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

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

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

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

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

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

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

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

2 Process of Management 2.5 3. teamwork Answers to TQs: 1.7 Copyright © 2009 SMU Powered by Sikkim Manipal University . Money.10 Answers to SAQs and TQs SAQs: 1.1 Introduction Objectives 2. Discuss the importance of management.1. 1. Refer section 1. Refer section 1.2.2. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2. Bring out the difference between Administration and Management.3 Planning 2. 3. materials.3 2. manpower 3. Management 2.4 Organizing . Refer section 1.

Coordinating 5. 1949): 1.9 Terminal Questions 2. Motivating. Controlling However. .1 Introduction Follett (1933) defined management as "the art of getting things done through people´. Commanding 4. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent.8 Summary 2. Organizing 3. One can also think of management functionally.7 Motivating Self Assessment Questions 2.6 Directing 2. you will be able to: · Define Management process.10 Answers to SAQs and TQs 2.2. Directing. management functions have been regrouped into four categories. · Explain Planning. Planning 2. Staffing. Management functions are as follows (Fayol. Organizing.5 Staffing 2. in recent time. Objectives: After this studying this unit. as the action of measuring a quantity on a regular basis and of adjusting some initial plan. · Explain different functions of management Process.

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

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

effectiveness. Is there a possibility of growth of existing market?) Identifying threats involves the following: 1. etc. Generally. or outcomes of an organization against similar measures from other internal or external organizations. as well as gap analysis. The SWOT analysis is used as a baseline for future improvement. return on investment. Are market tastes changing? 5.1. Develop related strategies (tactical and operational) . It also helps in setting minimum acceptable standards or common-sense minimums. Objectives are also called performance goals. What are the new regulations? 6. What are the possible new markets? 3. Set goals and objectives Strategic goals and objectives are developed to fill the gap between current capability and the mission. Benchmarking systematically compares performance measures such as efficiency. What are the emerging technologies? 6. the best strategy is one that fits the organization¶s strengths to opportunities in the environment. earnings per share. In which areas is the competition not meeting customer needs? 2. They are aligned with the mission and form the basis for the action plans of an organization. organizations have longterm objectives for factors such as. In which areas does the competition meet customer needs more effectively? 2. What is the strength of the economy? 4. What substitute products exist? In general terms. Comparing the organization to external benchmarks (the best practices) is used to assess current capabilities. Are our rivals weak? 5. Is there a shortage of resources? 4. Are there new competitors? 3.

procedures. It is the extent to which the units of the organization are explicitly defined and its policies. and coordinating the work components to achieve organizational goal. grouped. Divide tasks into groups one person can accomplish ± a job 4. Monitor the plan A systematic method of monitoring the environment must be adopted to continuously improve the strategic planning process. Review plans 2. Organizations are groups of people. and operational planning must be accompanied by controls to ensure proper implantation of the plans. who reports to whom. short-term standards for key variables that will tend to validate and support the long-range estimates must be established.Tactical plans are based on the organization¶s strategic plan. with ideas and resources. operational plans are based on the organization¶s tactical plans. Strategic. The steps in the organizing process include: 1. To develop an environmental monitoring procedure. It is the process of determining what tasks are to be done. and relationships between departments. structuring. lines of authority. and goals are clearly stated. Assign work to individuals 6. Delegate authority to establish relationships between jobs and groups of jobs. necessary to maintain competitive advantage in the said market. Organizational structure is the formal decision-making framework by which job tasks are divided. tactical. 2. This review is used for the next planning cycle and review. Feedback is encouraged and incorporated to determine if goals and objectives are feasible. and where decisions are to be made. List all tasks to be accomplished 3. The formal organization can be seen and represented in chart form. how the tasks are to be grouped. It is the official organizational structure conceived and built by top management. The purpose of the organizing function is to make the best use of the organization¶s resources to achieve organizational goals. who is to do. In turn.4 Organizing It involves designing. These are specific plans that are needed for each task or supportive activity comprising the whole. Group related jobs together in a logical and efficient manner 5. 2.5 Staffing . An organization chart displays the organizational structure and shows job titles. and coordinated. working toward common goals. Formalization is an important aspect of structure. A key issue in accomplishing the goals identified in the planning process is structuring the work of the organization.

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

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

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

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

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

5 3.7 Role of OD 3. Reference 2.1.8 Problems in OD . MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3.6 OD and Management Development 3.6 Copyright © 2009 SMU Powered by Sikkim Manipal University . Follett 2. Reference 2.2 Definitions 3. Staffing Answers to TQs: 1.1 Introduction Objectives 3.4 Categories of OD 3.5 Goals of OD 3. SWOT 3.3 Characteristics of OD 3. Reference 2.3 2.

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

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

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

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

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

10. collaborators. OD focuses on culture and processes. Participation and involvement in problem-solving and decision-making by all levels of the organization are hallmarks of OD. OD views organization improvement as an ongoing process in the context of a constantly changing environment. 8. Attempting to create ³win-win´ solutions is standard practice in OD programs. Comprehensive Change: OD efforts focus on comprehensive change in the organization. constantly shifting teams will be the dominant configuration for getting work done. according to Peters.multifunctional. Teams of all kinds are particularly important for accomplishing tasks and are targets for OD activities. here are the primary distinguishing characteristics of organization development: 1. dynamic and adaptive system. 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. OD . 5.3 Characteristics of OD 1. 3. OD practitioners are facilitators. To summarize. 7. 3. 6. The definition we have just analyzed contains the elements we believe are important for OD. OD relies on an action research model with extensive participation by client system members. so that change is easily observed. OD focuses on total system change and views organizations as complex social systems. Specifically. Planned Change: OD is a strategy of planned change for organizational improvement. OD focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. 2. 4. 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. The concept of comprehensive change is based on the systems concept-open. OD encourages collaboration between organization leaders and members in managing culture and processes. 2. OD takes a developmental view that seeks the betterment of both individuals and the organization. rather than focusing attention on individuals. 9. and co-learners with the client system. This µplanned¶ emphasis separates OD efforts from other kinds of more haphazard changes that are frequently undertaken by organizations.

collects relevant data. third party change agent. and cyclic processes. rather. Action research is the basis for such intervention. and revitalization. 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. OD efforts are not one-shot actions. This is done to arrive at certain desirable outcomes that may be in the form of increased effectiveness. OD focuses on the elevation of an organization to a higher level of functioning by improving the performance and satisfaction. 3. so the methods of attaining these goals should also change. the importance and centrality of goals and objectives and the different role requirements . and (c) Problems of organizational effectiveness. further more. He designs intervention strategies based on these data. There is a close working relationship between the change agent and the target organizational members to be changed. and then. growth. He shares a social philosophy about human values. identity. It recognizes that organizational goals change. evaluates these data. and adaptability for the organization as a whole. participation. they are ongoing. Key areas are the normative type of model. all types of experience requiring Organization Development efforts may be grouped into three categories: (a) Problems of destiny. rather. (b) Problems of human satisfaction and development. or catalyst. takes actions for intervention. 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¶. The relationship involves mutual trust. problem-solving. OD attempts to provide opportunities to be µhuman¶ and to increase awareness. it is a programme with a purpose that is to guide present and future action. and mutual influence. 7. 3. At the individual level. 6.4 Categories of OD Programmes In general. Organization Development is inextricably linked with action. Long-range Change: OD efforts are not meant for solving short-term. Thus. The change agent is a humanist seeking to get a humanistic philosophy in the organization. and integrate individual and organizational goals. he conducts surveys. Participation of Change Agent: Most OD experts emphasize the need for an outside. Emphasis on Intervention and Action Research: OD approach results in an active intervention in the ongoing activities of the organization. They discourage µdo it yourself¶ approach. temporary. interactive.efforts take an organization as an interrelated whole and no part of it can be changed meaningfully without making corresponding changes in other parts. 5. joint goals and means. Rather. 4. A change agent in OD process does not just introspect the people and introduce changes. or isolated problems.

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

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

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

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

Explain the various characteristics of OD. State the various roles of OD. There is no µquick fix¶ to organizations¶ problems. What are the problems involved in the implementation of OD? 3. 5. 3. 4.10 Terminal Questions 1. But OD aims at changing the entire organizational climate where the managers work. Explain its salient features. OD focuses on culture and processes. 3. 4. Top management 2. 3. Define OD. Distinguish between µorganizational development¶ and µmanagement development¶. _____________is a short-term strategy.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. 2. Who is associated with the ³Learning Organizations´? 5. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. ±±±±±±± is associated with ³Liberation Management´. Peter Senge . 2. Tom Peters 3. 3. Empowerment 4. The participative.1. collaborative. ±±±±±±±±± is a process which includes leadership behaviours and human resource practices. Management development aims at developing the managers individually.11 Answers to SAQs and TQs SAQs: 1. problem-focused µnature of OD¶ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. Organization development should be led and supported by ±±±±±±±. OD is the ultimate remedy for organizational improvements and developments.

Refer section 3.Organization Development ± Interventions Unit-04.Organization Development ± Interventions Structure: 4.6 4.5 Leadership Development 4. Refer section 3. Refer section 3.3 3.2 2.4 Grid Training 4.2 Survey Feedback 4.3 Process Consultation 4.1 Introduction Objectives 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 3. Management development Answers to TQs: 1.6 Team-building . Refer section 3.7 5.5. MU0002-Unit-04.

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

consultation, team- building, and participative goal-setting which has become more popular as management by objectives, have been added. Our further discussion follows this development. Objectives: After studying this unit, you will be able to: · Describe survey feedback. · Explain grid training. · Describe process consultation. · Realize the importance of team-building. · Role of change agents. 4.2 Survey Feedback Besides laboratory training (sensitivity and grid), the other major thrust in the development of OD has come from survey research and feedback of data. Though some type of survey method was prevalent in various organizations earlier, Institute for Social Research (ISR) of University of Michigan, USA developed a comprehensive questionnaire for conducting survey in different aspects of an organization. The basic objectives of survey feedback are as follows: 1. To assist the organization in diagnosing its problems and developing action plan for problemsolving. 2. To assist the group members to improve the relationships through discussion of common problems. Process of Survey Feedback Survey feedback usually proceeds with sequential activities involving data collection, feedback of information, developing action plans based on feedback, and follow up. 1. Data Collection: The first step in survey feedback is data collection usually by a consultant based on a structured questionnaire. The questionnaire may include different aspects of organizational functioning. ISR has prepared a questionnaire which includes questions on leadership ± managerial support, managerial goal emphasis, managerial work facilitation, peer support, peer goal emphasis, peer work facilitation, and peer interaction facilitation, organizational climate-communication with the company, motivation, decision-making, control within the company, co-ordination between departments, and general management, and satisfaction-satisfaction with the company, satisfaction with the supervisor, satisfaction with the job, satisfaction with the pay, and satisfaction with the work group. The questionnaire is administered personally either by the members of consulting firm or by organization¶s personnel.

After the questionnaires are completed, data are classified, tabulated, and analysis is made to arrive at some meaningful conclusions. 2. Feedback of Information: After the data are analyzed, feedback is given to the persons who have participated in the fulfilling up of questionnaire. The feedback may be given either orally or in a written form. In oral system of feedback, it is provided through group discussion or problemsolving sessions conducted by the consultant. Alternatively, feedback may be given in the form of a written summary of findings. Whatever the method of giving feedback is adopted, it should be constructive and suggestive, rather, threatening and emotion-hurting as survey feedback is aimed at identifying weaknesses which must be overcome through follow-up actions and not the fault-finding technique for criticism. 3. Follow-up Action: Survey feedback programme is not meaningful unless some follow-up action is taken based on the data collected. One such follow-up action may be to advise the participants to develop their own action plans to overcome the problems revealed through a feedback or as is more commonly the case, follow-up action may be in the form of developing some specific OD interventions particularly process consultation and team-building, by the consultant. Evaluation of Survey Feedback Survey feedback provides a base for many managerial actions which has been confirmed by various research studies. In particular, survey feedback contributes in the following manner: 1. It is cost-effective means of implementing a comprehensive OD programme making it a highly desirable technique. 2. It generates great amount of information efficiently and quickly which can be used in solving problems faced by the organization and its members. 3. Decision-making and problem-solving abilities of organization can be improved tremendously because this approach applies the competence and knowledge throughout the organization and the problems faced by it. However, effectiveness of survey feedback depends on two factors. First, questionnaire used and method adopted for its administration should be reliable and valid. If it is biased, all attempts to diagnose the problems will be abortive and futile. Second, even if valid and reliable information is collected, it is of no use unless follow-up action is taken based on the information. A survey feedback is not a technique in itself for change; it provides base for action for change. 4.3 Process Consultation Process Consultation (P.C) is a technique for intervening in an ongoing system. The basic content of P.C is that the consultant works with individuals and groups in the organization to help them learn about human and social processes and to solve problems that stem from process events. Edgar Schein, the leading writer and consultant on P.C has defined it as follows:

³The set of activities on the part of the consultant which help the client to perceive, understand, and act upon the process events which occur in the client¶s environment.´ The basic objectives of P.C are as follows: 1. To bring desired change in the various organizational processes like leadership, communication, roles and functions of group members, group decision-making and problemsolving, group norms, and inter-group co-operation and conflicts. 2. To understand how various organizational processes can be linked to objective achievement in the organization. Steps in Process Consultation Schein has suggested following specific steps which the consultant would follow in a P.C programme of OD. 1. Initiate Contact: This is beginning stage of P.C in which the client makes initial contact with the consultant with a view to solve the problems faced by the organization which cannot be solved by existing processes or resources. 2. Define the Relationship: At this stage, client and consultant enter into agreement covering various aspects of consultancy services like fees, and spelling out services, time, etc. At this stage, the client¶s expectations and hoped-for results are also decided. 3. Select the Setting and the Method: It involves a clear-cut understanding of where and how the consultant will do the job that is required. At this stage, the consultant is introduced to the organizational members and basic objectives of the P.C are communicated to them with a view that they co-operate with the consultant. 4. Gather Data and Make a Diagnosis: Information is collected from various sources thorough the use of questionnaires, observations, and interview about the problems, spelled out at the initial stage. This data gathering occurs simultaneously with the entire consultative process. Information collected is processed to diagnose the problems and their underlying causes. 5. Intervene: At this stage, the consultant intervenes in the organizational processes by using different interventions like agenda-setting, feedback, coaching, and/or structural change. 6. Reduce Involvement and Terminate: When the work of P.C is completed, the consultant disengages from the client organization by mutual agreement but leaves the door open for future involvement. Evaluation of Process Consultation: Process consultation is quite in-depth activity of OD in which the consultant plays a major role. Though he is involved only in suggesting the various changes in the processes, he assists the

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

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

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

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

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

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

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

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

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

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

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

What is team-building? What are the stages of life cycle of a team? 4. and Beliefs in Organization Development Structure: 5. MU0002-Unit-05-Values. Refer section 4. 4.4 2.12 Answers to SAQs and TQs SAQs: 1. Refer section 4. Social loafing Answers to TQs: 1. Data collection 2. What is survey feedback as an intervention of OD? How does it provide base for other OD interventions? 3. Assumptions. Refer section 4.2 3.1 Introduction . Blake and Mouton. Explain Change agents and discuss the role of change agents in detail.2.6 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . and Beliefs in Organization Development Unit-05-Values. 3. Refer section 4. Assumptions.

Objectives: After studying this unit. · Give the statement of OD values and assumptions.3 Chronology of Events in Management and Organization Thought 5.5. · List the chronology of events of values.2 Definitions 5. · State the implications of OD values and assumptions. shaping the goals and methods of the field and distinguishing OD from other improvement strategies.1 Introduction A set of values.3 Implications for Designing and Running Organizations 5. beliefs and assumptions.5 Implications of OD Values and Assumptions 5.5.5. Most of these beliefs were formulated early in the development of the field.8 Answers to SAQs and TQs 5. and they continue to evolve as the field itself evolves. assumptions.2 Implications for Dealing with Groups 5.2 Definitions . you will be able to: · Explain the meaning of values.7 Terminal Questions 5. and beliefs constitutes an integral part of organization development.6 Summary Self Assessment Questions 5.1 Implications for Dealing with Individuals 5.Objectives 5. 5. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers.4 Early Statements of OD Values and Assumptions 5. beliefs and assumptions.

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

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

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

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

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

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

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

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

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

2 Beyond the Quick Fix .2. Refer section 5. Bureaucracy 4.1 Kurt Lewin and Friends 6. Refer section 5.3 5. Refer section 5. Taylor 3.2 2.2 Models and Theories of Planned Change 6.2. Refer section 5. Douglas McGregor Answers to TQs: 1.3 3. F. Refer section 5. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.1 Introduction Objectives 6.2. Hawthorne experiments 5.3 Copyright © 2009 SMU Powered by Sikkim Manipal University .3 4. W.

art and science which form the knowledge base upon which OD is constructed.1 The Nature of Systems 6.6 Parallel Learning Structures 6.9 Action Research Self Assessment Questions 6. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning.3.7 A Normative ± Re-educative Strategy of Changing 6.3.2. you will be able to: .2.4 Porras and Robertson Model of Organizational Change 6.2 Congruence among System Elements 6. In this discussion.12 Answers to SAQs and TQs 6.3.11 Terminal Questions 6.4 Participation and Empowerment 6.3 Systems Theory 6.1 Introduction This unit describes the foundations of organization development theory and practice.6.10 Summary 6.3 Socio-technical Theory and Open Systems Planning 6. Objectives: After studying this unit.3 The Burke-Litwin Model of Organizational Change 6.8 Applied Behavioural Science 6.5 Teams and Teamwork 6. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs.3.4 Open Systems Thinking 6.

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

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

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

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

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

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

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

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

5: A Change-based Organizational Framework 6. which views organizations as open systems in active exchange with their environment.Fig. 6. describes the characteristics of systems.4: Organizational Work-Setting Factors This model is extremely useful for OD practitioners and organizational leaders. and Katz and Kahn were the first to apply open systems theory to organizations in 1966.3 Systems Theory A second foundation of organization development is systems theory. Keep this framework in mind as you read the units on OD interventions because all interventions target one or more factors shown in figures. Fig. Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950. 6. This section explains systems theory. Systems . and shows how systems theory enhances the practice of OD.

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

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

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

7: The Congruence Model Showing the Organization as a System The congruence model¶s value is as an analytical tool for: 1) Assessing the characteristics and functioning of each of the elements. and identifying core tasks help STS consultants structure organizations and tasks for maximum effectiveness and efficiency. forming autonomous work groups. Another important application of systems theory in organization development is open systems planning. The thesis of STS is that all organizations are comprised of two interdependent systems. two active segments of OD today." The premise is that alignment (harmony. For example. Socio-technical systems theory was developed by Eric Trist. . performance will suffer. to the workers doing the job. and others at the Tavistock Institute in the 1950s. In a company that is performing poorly. performance will suffer.socio-technical systems theory (STS) and open systems planning (OSP)-play an important role in organization development. that is. training group members in multiple skills. if people don¶t have the skills and knowledge required to do the work. 6. controlling variance at the source. and that changes in one system affect the other system. If the strategy calls for entrepreneurial quickness and risk-taking and the formal organization is bureaucratic and highly centralized. Fred Emery. You can use this model to analyze organizations with which you are familiar. To achieve high productivity and employee satisfaction. Principles such as optimizing the social and technical systems. multi-skilled teams. which components are "not functioning correctly. and 2) Evaluating the "goodness of fit" or how well the elements "go together.Fig. giving information and feedback to the people doing the work.3 Socio-technical Systems Theory and Open Systems Planning Two major variations of open systems theory. 6.3. performance will suffer. especially autonomous work groups (selfregulated teams or self-direct teams). STS is the principal conceptual foundation for efforts in work redesign and organization restructuring. what is it about each element that causes that part of the system to function well and what are the characteristics of each element that cause all of them to fit together smoothly? The congruence model is an excellent diagnostic tool. A number of design principles have been developed to implement socio-technical systems theory. High-performance organizations almost always use principles from socio-technical systems theory. a social system and a technical system." and which elements are poorly aligned? In companies showing outstanding performance. Systems models are essential for the practice of OD. fit) must be present among the system¶s components¶ for the organization to produce satisfactory outputs. If the organization¶s culture (informal organization) praises individual accomplishments and the work requires teamwork and collaboration. organizations must optimize both systems. Hanna writes: . and information to the point of action.

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

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

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

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

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

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

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

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

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

3 Types of Organization Culture.2.3 5.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .6 Summary .Refer section 6.1 2. Refer section 6.2.4. Refer section 6. Refer section 6.2 3.2 Characteristics of Organization Culture 7. 7.2.5 Developing and changing Organization Culture Self Assessment Questions 7. MU0002-Unit-07-Organization Culture and Climate Unit-07-Organization Culture and Climate Structure: 7.1 Introduction Objectives 7.4 Organization Culture and Effectiveness 7. Synergy Answers to TQs: 1. Refer section 6. System 5.3 4.

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

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

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

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

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

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

Finally. 2. 3. 9.8. Market 3. 7. _____are the visible manifestations of culture as seen in the physical and social environment of the organization. Explain the characteristics of organization culture. Discuss the development and change of organizational development. and strategic constituencies approach. are particularly driven by results and are often very competitive. 7. system-resource approach. Causal variables Answers to TQs: . ________cultures are outward looking. 2.goal approach. behavioural approach. 3. Artifacts 2.8 Answers to SAQs and TQs SAQs: 1. Organizational effectiveness can be measured through various approaches. effectiveness through adaptive-coping cycle has been discussed. Factors in organizational effectiveness include casual variables. Stay the course by being persistent. Move quickly and decisively to build momentum and to defuse resistance to the new culture.7 Terminal Questions 1.6 Summary Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. Effectiveness of an organization can be increased through economic man approach and administrative man approach. ___________are those factors that influence the course of development within an organization and its results or accomplishment. Briefly explain different types of organizational culture. 7. intervening variables and end-result variables and there exists interrelationship among these variables. Self Assessment Questions 1. Organizations to be successful must be efficient and effective.

MU0002-Unit-08.Power.5 Organizational Politics Defined and Explored 8. Refer section 7.10 Terminal Questions .5 Copyright © 2009 SMU Powered by Sikkim Manipal University .1 Introduction Objectives 8.3 3. Refer section 7.9 Summary 8. Politics and Organization Development Structure: 8.3 Two Faces of Power 8. Refer section 7.2 Power Defined and Explored 8.7 Operating in a Political Environment 8.6 The Role of Power and Politics in the Practice of OD 8. Politics and Organization Development Unit-08.2 2.Power.1.4 Theories about the Sources of Social Power 8.8 Acquiring and using Power Skills Self Assessment Questions 8.

The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics.´ Organization development has been criticized for not taking into account power in organizations. As Warner Burke observes: "Organization development signifies change. 8. The French word µpouvoir¶ stands for both the noun µpower¶ and the verb µto be able. and for change to occur in an organization. emotions." ³Power is the ability of those who possess power to bring about the outcomes they desire.8.2 Power Defined and Explored "Power is the intentional influence over the beliefs. but kinetic power is the act of doing so. 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. Objectives: After this studying this unit. One person exerts power over another to the degree that he is able to exact compliance as desired.¶ To have power is to be able to get desired things done." . you will be able to: · Define power and politics in organizations.´ ³A has power over B to the extent that he can get B to do something that B would otherwise not do. That criticism was essentially correct for many years although it is less valid today.actions and the decisions that precede them.1 Introduction Power and politics. we examine power and politics in relation to organization development.11 Answers to SAQs and TQs 8. In this unit. and behaviours of people. power must be exercised. indisputable facts of organizational life. · Explain the role of power and politics in the practice of OD." "Power is defined in this unit simply as the capacity to effect (or affect) organizational outcomes. · Explain theories about the sources of power. Recent years have seen a sizable outpouring of theory and research on power and politics from which OD practitioners have derived implications and applications for the field but we are still in the early stages of knowing how power and organization development should be related. to effect outcomes. must be understood if one is to be effective in organizations. · Acquire skills to handle power and politics in organizations. Potential power is the capacity to do so.

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

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

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.

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

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

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

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

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

and are amenable to positive control. 8. 3. units or departments is most important in solving organizational problems. when and how. 4. 4. Organizational power is the ability of those who possess power to bring about the outcomes they desire. Strategic-contingency model of power asserts that power that accrues to the individuals. _____________ has identified two faces of power. 8.10 Terminal Questions 1. ±±±±±± is the intentional influence over the beliefs. ±±±±±±±± defined politics as the study of who gets what. Organizational politics is defined as the study of who gets what. Power can be either positive or negative. ±±±±±±±±±± is made up of Charisma.11 Answers to SAQs and TQs SAQs: 1. arise from known conditions. Identify the bases of individual power and the respective strategies for their success. 2. 5. Referent power 4. Define power in an organizational context and explain types of power. Power 2. Power and politics are similar in nature.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. Harold Lasswell . Define organization politics. when. 8. 3. emotions or behaviour of people. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics. reputation and professional credibility. Power based on the power-receiver having identification with the power holder is called ±±±± ±±±±±±±. and how. Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another. McClelland 3. Organizational politics involve intentional acts of influence to enhance or protect the self-interest of individuals or groups. Describe briefly various theories of power.. 5.9 Summary Power and politics are inseparable facts of organizational life. 2. Self Assessment Questions 1. Explain the role of power and politics in the practice of OD.

2 2.4 3. Refer section 8.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .1 Introduction Objectives 9. Refer section 8.5 4.4 Management By Objectives 9.3 Socio Technical Systems 9.5.6 5. Refer section 8.Refer section 8. Personality Answers to TQs: 1.5 Quality Circles 9. Refer section 8. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9.2 Meaning and Definitions 9.6 Quality of Work Life Projects .

you will be able to: · Explain the Socio technical change. Objectives: After studying this unit.9 Reengineering Self Assessment Questions 9. · Explain Reengineering. These methods are receiving increasing attention in Organization Development. 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. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future. · Discuss the Management By Objectives · Explain the Quality Circles. These programs are derived from careful diagnosis. events intended to help an organization improve its performance and effectiveness. .11 Terminal Questions 9. These interventions vary from standardized program that have been developed and sometimes tailored program.7 Parallel Learning Structures 9. · Discuss the parallel Learning Structures. · Explain Total Quality Management. Nothing is permanent except change because change is permanently changing. organizational problems may repeat.10 Summary 9.9.12 Answers to SAQs and TQs 9. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design. In this dynamic and fluid environment.8 Total Quality Management 9.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. An organization development intervention is a sequence of activities. actions.

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

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

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

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

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

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

Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement.10 Summary An organization development intervention is a sequence of activities. ties reward to performance and increase workers knowledge and skills through extensive training. 9. Explain Management By Objectives? 4. TQM pushes decision making power downwards in the organization. __________ represents a participative approach to employee involvement in problem solving and productivity improvement. Discuss Socio Technical Systems? 2. MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. 9. The term MBO was coined by _________ in 1964. Quality circle Answers to TQs: . 3. There are a number of reasons why a consultant should consider employing a structural intervention. An organization development __________ is a sequence of activities. actions. structural Interventions compare quite favorably with all other alternatives. Intervention 2. consciously directed towards the effective and efficient achievement of organizational objectives. actions. What are the advantages of structural interventions? 3. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. It is also called continuous quality improvement.1.12 Answers to SAQs and TQS SAQs: 1. Write a short note on Total Quality Management. Drucker 3.11 Terminal Questions 1. 9. From a benefit cost analysis. Sociotechnical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. events intended to help an organization improve its performance and effectiveness. 2. provides relevant information to all employees. events intended to help an organization improve its performance and effectiveness.

4 Causes for Resistance to Change.6 Methods of Reducing Resistance to Change.1 Introduction Objectives 10. 10.Refer section 9.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .3 2.5 Impact of Change on the Future Manager 10.8 Terminal Questions 10. MU0002-Unit-10-Managing Change in Organization Development Unit-10-Managing Change in Organization Development Structure: 10. Refer section 9. Refer section 9. Refer section 9.2 Nature of Change 10.7 Summary 10.5 4.1.3 Resistance to Change 10.2 3. Self Assessment Questions 10.9 Answers to SAQs and TQs .

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

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

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.

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

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

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

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

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

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

Problem of overcoming resistance to change can be handled at two levels. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups.. · Harigopal K. Participation Answers to TQs: 1. Bell. Discuss the methods of reducing resistance to change.8 Terminal Questions 1. Refer section 10.6. Explain the nature of change? 2. Organizational change 2.2 2. 10.management of Organization Change. at the level of individual and at the level of group. Jr. eighth edition. Organization Theory and Design. through group dynamics. Jain. Organization Development & Change. P. Thomson · Daft Richard L. Organization Development. Refer section 10. Prentice-Hall of India Private Limited. Principles and Practices. or the like. 10. Why do organizations resist change? 3. P.Response Books. N.complaints. Reference: · Wendell L. Thomson South Western. . Psychological factors 3. New Delhi. Modern Organization Development and Change. Refer section 10.4 3. · J. engaging in a work showdown. that is..9 Answers to SAQs and TQS SAQs: 1. · Cummings & Worley. Regal Publications New Delhi. both at the formal and informal levels. threatening to go on strike.Singh. New Delhi. French and Cecil H.

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