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

although they can¶t observe it during operation. 5. It is imperative that the organizational goals must be well-defined and properly understood by the mangers at various levels. Thus. They must have the necessary ability and skills to get work accomplished through the efforts of others. 6. The success of management is measured by the extent to which the organizational goals are achieved. the process of management involves decision-making and putting of decisions into practice. They must motivate the subordinates for the accomplishment of the tasks assigned to them. they require the catalyst of management to produce goods and services required by the society. buoyant spirit and adequate work output. The application of these concepts. Its presence is evidenced by the result of its efforts-orderliness. Managers apply knowledge. Managers also seek to harmonize the individuals¶ goals with the organizational goals for the smooth working of the organization. 2. In essence. 1. One may not see with the naked eyes the functioning of management but its results are apparently known. Economic Resource: Management is one of the factors of production together with land. These functions are so interwoven that it is not possible to lay down exactly the sequence of various functions or their relative significance. staffing. Results through Others: The managers cannot do everything themselves. Distinct Process: Management is a distinct process consisting of such functions as planning. management is an essential ingredient of an organization. 3.3 Characteristics of Management Management is a distinct activity having the following salient features or characteristics: 1. All these resources are made available to those who manage. labour. These factors do not by themselves ensure production. informed employees. It is the force which assembles and integrates other resources. capital and materials. principles and techniques requires specialized . It is the most critical input in the success of any organized group activity. Goal-oriented: Management is a purposeful activity.management is most often due to both inefficiency and ineffectiveness or to effectiveness achieved through inefficiency. Thus. People often remark of the effectiveness (or ineffectiveness) of management on the basis of the end results. It co-ordinates the efforts of workers to achieve the goals of the organization. directing and controlling. 4. Integrative Force: The essence of management is integration of human and other resources to achieve the desired objectives. labour and capital. So it is treated as a science. feeling of management is result-oriented. Intangible Force: Management has been called an unseen force. A Science and an Art: Management has an organized body of knowledge consisting of welldefined concepts. 7. experience and management principles for getting the results from the workers by the use of non-human resources. organizing. principles and techniques which have wide applications. namely.

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

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

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

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

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

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

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

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

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

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

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

1. Refer section 1. teamwork Answers to TQs: 1. Refer section 1.1 Introduction Objectives 2.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 Process of Management 2. Discuss the importance of management. 3. manpower 3.5 3.4 Organizing .3 2.2. Money. Bring out the difference between Administration and Management. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.1.3 Planning 2.10 Answers to SAQs and TQs SAQs: 1. Refer section 1. materials. Management 2.2.

you will be able to: · Define Management process. Commanding 4.10 Answers to SAQs and TQs 2. · Explain different functions of management Process.6 Directing 2. Organizing 3.5 Staffing 2. One can also think of management functionally. Directing.9 Terminal Questions 2. in recent time.1 Introduction Follett (1933) defined management as "the art of getting things done through people´. 1949): 1. Management functions are as follows (Fayol. .8 Summary 2.2. Motivating. as the action of measuring a quantity on a regular basis and of adjusting some initial plan. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent. Coordinating 5.7 Motivating Self Assessment Questions 2. Staffing. Objectives: After this studying this unit. management functions have been regrouped into four categories. Organizing. Controlling However. · Explain Planning. Planning 2.

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

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

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

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

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

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

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

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

2. who is to do. and developing plans to integrate and coordinate activities. 2. and where decisions are to be made. What is planning? 2. Removing dissatisfying characteristics from a job does not necessarily make the job satisfying. The satisfiers relate to what a person does while the dissatisfiers relate to the situation in which the person does what he or she does. emphasize factors intrinsically rewarding that are associated with the work itself or to outcomes directly derived from it. Staffing refers to the managerial function of determining and improving the manpower requirements of an enterprise. Explain Staffing in detail 3.10 Answers to SAQs and TQs SAQs: . many related to the tasks being performed. people will not be dissatisfied. who reports to whom. Every organization needs to plan for change in order to reach its set goal. neither will they be satisfied. ____defined management as the art of getting things done through people. 3.9 Terminal Questions 1. have to do with a person¶s relationship to the context or environment in which she or he performs the job. Hygiene factors on the other hand. establishing strategies for achieving these goals. Job satisfaction factors are separate and distinct from job dissatisfaction factors. motivators describe a person¶s relationship with what she or he does. Write a short not on directing. how the tasks are to be grouped.In summary. structuring. 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. and coordinating the work components to achieve organizational goal. To motivate people. Planning involves the process of defining goals. It is the process of determining what tasks are to be done. recruitment. 2. The _____analysis begins with a scan of the external environment. 2. _______refers to the managerial function of determining and improving the manpower requirements of an enterprise. When hygiene factors are adequate. It involves many sub-functions such as manpower planning. Organization involves designing.8 Summary Management is the art of getting things done through people. performance appraisal etc. Self Assessment Questions 1.

Staffing Answers to TQs: 1. SWOT 3. Reference 2.8 Problems in OD .6 Copyright © 2009 SMU Powered by Sikkim Manipal University .4 Categories of OD 3.3 Characteristics of OD 3.7 Role of OD 3.6 OD and Management Development 3.1. Reference 2. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3.2 Definitions 3. Follett 2.1 Introduction Objectives 3.5 3.5 Goals of OD 3. Reference 2.3 2.

old jobs are being destroyed at an accelerating pace. strategy. Individuals in organizations likewise face multiple challenges ± finding satisfaction in and through work. Organizations face multiple challenges and threats today ± threats to effectiveness. ³Knowledge´ work is replacing ³muscle´ work.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. Basically. Simple survival ± continuing to have an adequate job ± is a major challenge today in the light of constant layoffs and cutbacks. OD focuses on issues related to the ³human side´ of organizations by finding ways to increase the effectiveness of individuals. and the constant challenge to maintain congruence among organizational dimensions such as technology. and attention was soon directed toward other human and social processes in organizations such as the design of work tasks.10 Terminal Questions 3. . organization development is a process of teaching people how to solve problems. Organization development is a relatively recent invention. teams. organization development represents one of the best strategies for coping with the rampant changes occurring in the marketplace and society. and the like.9 Summary 3. Are any strategies available to help people and organizations cope. and the organization¶s human and social processes. adapt. increased competition.11 Answers to SAQs and TQs 3. culture. A variety of solutions exists. the answer is ³yes´. and learn how to do that better and better over time. conflict resolution. survive. and profitability. challenges from turbulent environments. and achieving human connectedness and community in the workplace. and even prosper in these vexing times? Fortunately. and processes. Today. Although new jobs are being created at record rates. efficiency. organization structure. Early returns were encouraging. and changing customer demands. 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. Keeping organizations healthy and viable in today¶s world is a daunting task. The field of OD grew rapidly in the 1970s and the 1980s with thousands of organizations in the private and public sectors using the theory and methods of OD with great success. strategy formulation and implementation. And organization development (OD) is one of them.Self Assessment Questions 3. fighting obsolescence of one¶s knowledge and skills. We predict that organization development will be preferred improvement strategy in future. take advantage of opportunities. In summary. maintaining dignity and purpose in pursuit of organizational goals. organizations and the individuals in them face an enormously demanding present and future.

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

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

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

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

here are the primary distinguishing characteristics of organization development: 1. Teams of all kinds are particularly important for accomplishing tasks and are targets for OD activities. collaborators. rather than focusing attention on individuals. OD relies on an action research model with extensive participation by client system members. Attempting to create ³win-win´ solutions is standard practice in OD programs. Participation and involvement in problem-solving and decision-making by all levels of the organization are hallmarks of OD. 9. 3.3 Characteristics of OD 1. Planned Change: OD is a strategy of planned change for organizational improvement. constantly shifting teams will be the dominant configuration for getting work done. 2. 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. according to Peters. so that change is easily observed. 6. This µplanned¶ emphasis separates OD efforts from other kinds of more haphazard changes that are frequently undertaken by organizations. OD . 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. OD focuses on total system change and views organizations as complex social systems. Specifically. 7. OD takes a developmental view that seeks the betterment of both individuals and the organization. OD focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. To summarize. OD focuses on culture and processes. 5. OD practitioners are facilitators. Comprehensive Change: OD efforts focus on comprehensive change in the organization. The definition we have just analyzed contains the elements we believe are important for OD.multifunctional. OD encourages collaboration between organization leaders and members in managing culture and processes. dynamic and adaptive system. 10. 2. 8. OD views organization improvement as an ongoing process in the context of a constantly changing environment. 3. The concept of comprehensive change is based on the systems concept-open. and co-learners with the client system.

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

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

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

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

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

It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. Management development aims at developing the managers individually. There is no µquick fix¶ to organizations¶ problems.11 Answers to SAQs and TQs SAQs: 1. Tom Peters 3. State the various roles of OD. Explain its salient features. Explain the various characteristics of OD. collaborative. Define OD.1. problem-focused µnature of OD¶ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. What are the problems involved in the implementation of OD? 3. Organization development should be led and supported by ±±±±±±±. OD focuses on culture and processes. The participative. OD is the ultimate remedy for organizational improvements and developments. 5. 4. But OD aims at changing the entire organizational climate where the managers work. 3.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. 2. Empowerment 4. Peter Senge . 2. Distinguish between µorganizational development¶ and µmanagement development¶.10 Terminal Questions 1. 3. 3. 4. ±±±±±±± is associated with ³Liberation Management´. _____________is a short-term strategy. 3. Who is associated with the ³Learning Organizations´? 5. Top management 2. ±±±±±±±±± is a process which includes leadership behaviours and human resource practices.

2 2. Refer section 3.2 Survey Feedback 4.Organization Development ± Interventions Unit-04.6 4. Refer section 3. Refer section 3.5. Management development Answers to TQs: 1.6 Team-building .7 5.5 Leadership Development 4.3 3.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .4 Grid Training 4.1 Introduction Objectives 4.Organization Development ± Interventions Structure: 4.3 Process Consultation 4. MU0002-Unit-04. Refer section 3. Refer section 3.

´ There are various OD interventions and they are classified in different ways. inter-group activities. OD efforts were attempted through sensitivity training. education and training. such a classification of interventions may not put them into mutually exclusive categories as a particular intervention may be applied at more than one level. and organizational culture. Thus. and organizational level. Subsequently. grid training. group level. However. 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. mediation and negotiation activities. French and Bell have defined OD intervention as: ³Sets of structured activities in which selected organizational units (target groups or individuals) engage with a task or a sequence of tasks where the task goals are related directly or indirectly to organizational improvement. team-building. Nevertheless. interventions may be required to change people at all these levels. Therefore.8 Change Agents 4.11 Terminal Questions 4. and survey feedback method. Interventions constitute the action thrust of organization development. management grid.7 Inter Group Development 4. French and Bell have suggested twelve families of OD interventions: diagnostic. the classification appears to be more relevant because it may specify the range of change that an organization requires. various consultants and practitioners have different opinions about the activities which can be included in interventions. 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. Further. other techniques like process . Historically. work group.10 Summary 4.4. they make things happen. survey feedback. process consultation.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.12 Answers to SAQs and TQs 4. the classification of OD interventions shows variation. inter-group level. techno-structural activities. interpersonal level. many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others. People¶s behaviour may be relevant to understand at individual level. For example.9 Role of Change Agents Self Assessment Questions 4.

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

Inter-group Development: At this phase. problem-solving. However. It is a comprehensive and systematic OD programme which aims at individuals. To understand the importance and rationale of systematic change.organizational members to incorporate those changes. knowledge. To study the organization as an interactive system and apply techniques of analysis in diagnosing its problems. and total organizational levels. Another problem may emerge at the level of the organization and its members in terms of how they inculcate the new processes and culture as suggested by the consultant. The whole orientation is to develop managerial style through the application of behavioural science knowledge. 4. focuses on skills. Action steps to move towards the ideal are developed and assigned to individuals who may be engaged in building co-operative inter-group relationships. communication skills. However. 3. . 1.4 Grid Training Grid training is basically based on grid organization development developed by Blake and Mouton. and problemsolving are also developed. and processes necessary for effectiveness at the individual. the focus is on inter-group behaviour and relations. groups. From this point of view. Teamwork Development: The focus in this stage is to develop teamwork by analyzing team culture. One basic reason for this phenomenon may be the consultant¶s inability to steer the organization out of troubles. group. and alike. 3. objective-setting. Each group separately analyses the ideal inter-group relations. P. The individuals try to learn to become managers by practice. The thrust is on moving groups from conflict to co-operation.C programmes. both these problems may be overcome by engaging a suitable consultant and developing willingness among the members for change. To evaluate the styles of leadership and techniques of participation to produce desirable results. In the review of various P. significant correlation between the outcomes has not been found. and teamwork. Process of Grid Training The basic content of grid organization development is managerial grid as discussed. The skills relating to planning. 2. 2. It utilizes a considerable number of instruments. Its specific objectives are as follows: 1. Managerial grid: It covers various aspects of assessing managerial styles. enabling individuals and groups to assess their own strengths and weaknesses.C is also not free from criticisms. and the organization as a whole. inter-group. P.C is very effective intervention for organizational improvement. The grid organization development consists of six phases. like other OD intervention techniques. traditions.

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

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

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

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

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

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

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

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

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

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

Data collection 2. Social loafing Answers to TQs: 1. Refer section 4.1 Introduction . Assumptions. Explain Change agents and discuss the role of change agents in detail.2 3. Refer section 4. Refer section 4.4 2. Blake and Mouton. Refer section 4.2.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . MU0002-Unit-05-Values. and Beliefs in Organization Development Unit-05-Values. Assumptions. 4. and Beliefs in Organization Development Structure: 5. What is survey feedback as an intervention of OD? How does it provide base for other OD interventions? 3. What is team-building? What are the stages of life cycle of a team? 4.12 Answers to SAQs and TQs SAQs: 1. 3.6 4.

6 Summary Self Assessment Questions 5.8 Answers to SAQs and TQs 5.7 Terminal Questions 5. and beliefs constitutes an integral part of organization development.5.3 Implications for Designing and Running Organizations 5.2 Definitions .4 Early Statements of OD Values and Assumptions 5.5 Implications of OD Values and Assumptions 5. beliefs and assumptions. and they continue to evolve as the field itself evolves. · List the chronology of events of values. Objectives: After studying this unit. 5. assumptions. · State the implications of OD values and assumptions.3 Chronology of Events in Management and Organization Thought 5.5.1 Implications for Dealing with Individuals 5.5.2 Definitions 5. Most of these beliefs were formulated early in the development of the field. · Give the statement of OD values and assumptions. shaping the goals and methods of the field and distinguishing OD from other improvement strategies. beliefs and assumptions. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers.1 Introduction A set of values.Objectives 5.2 Implications for Dealing with Groups 5. you will be able to: · Explain the meaning of values.

g. and beliefs are all cognitive facts or propositions.A belief is a proposition about how the world works that the individual accepts as true. that progress is possible and desirable in human affairs. and the like. As these ingredients accumulated. . and beliefs provide structure and stability for people as they attempt to understand the world around them. reason. repetitive tasks minimized the skills required to do the job. assumptions. they were fashioned into a coherent value foundation for the theory and practice of organization development. repetitive tasks in an attempt to find "the one best way" to do each job. optimistic. relatively unexamined beliefs accepted as the truth. 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. Democratic values assert the sanctity of the individual. research on the effects of different leadership styles. with values being beliefs about good and bad. dishonesty). the laboratory training movement. Expert engineers and supervisors designed each task and ensured it was done correctly." or slacking off. Evidence for the validity of these values and their supporting assumptions comes from many sources ± the Hawthorne studies. treat people with respect and dignity. and the need for justice through the rule of law and due process. and democratic. OD values tend to be humanistic. the importance of fair and equitable treatment for all. 5. free speech) and what is undesirable or µbad¶ (e.g. greater understanding of individual motivation and group dynamics. Values.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. Simple. and goodwill are the tools for making progress. view all people as having the potential for growth and development." Assumptions are beliefs that are regarded as so valuable and obviously correct that they are taken for granted and rarely examined or questioned.. increasing awareness of the dysfunctions of bureaucracies. Optimistic values posit that people are basically good. the human relations movement. Taylor s methods quickly swept the country and the world as the way to organize work. the clash between fascism and democracy in World War II. values. Thus. or spirit of the time.. strongly held. Piece-rate pay systems were designed to increase motivation and to prevent "soldiering. 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. assumptions. Values are also beliefs and are defined as: "Beliefs about what is desirable or µgood¶ (e. and assumptions being. and that rationality. it is a cognitive fact for the person. assume that everyone has intrinsic worth.

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

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

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

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

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

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

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

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

3 3.2 Beyond the Quick Fix .1 Kurt Lewin and Friends 6.2. W.2. Taylor 3. Refer section 5.1 Introduction Objectives 6.2 2.3 Copyright © 2009 SMU Powered by Sikkim Manipal University .3 5. Refer section 5. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.3 4. Douglas McGregor Answers to TQs: 1. Refer section 5.2. F. Refer section 5.2 Models and Theories of Planned Change 6. Bureaucracy 4. Refer section 5. Hawthorne experiments 5.

3 The Burke-Litwin Model of Organizational Change 6.4 Porras and Robertson Model of Organizational Change 6.5 Teams and Teamwork 6. art and science which form the knowledge base upon which OD is constructed.3 Systems Theory 6.8 Applied Behavioural Science 6.1 Introduction This unit describes the foundations of organization development theory and practice.1 The Nature of Systems 6.3.6.9 Action Research Self Assessment Questions 6.10 Summary 6. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs.12 Answers to SAQs and TQs 6. you will be able to: .4 Open Systems Thinking 6.6 Parallel Learning Structures 6.4 Participation and Empowerment 6. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning.3 Socio-technical Theory and Open Systems Planning 6.7 A Normative ± Re-educative Strategy of Changing 6.2 Congruence among System Elements 6.2.2. Objectives: After studying this unit.3.3. In this discussion.3.11 Terminal Questions 6.

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

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

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

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

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

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

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

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

and shows how systems theory enhances the practice of OD. describes the characteristics of systems. This section explains systems theory. Systems .3 Systems Theory A second foundation of organization development is systems theory.5: A Change-based Organizational Framework 6.4: Organizational Work-Setting Factors This model is extremely useful for OD practitioners and organizational leaders. 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. and Katz and Kahn were the first to apply open systems theory to organizations in 1966. 6. Fig. which views organizations as open systems in active exchange with their environment. 6. Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950.

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

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

increased integration and co-ordination are necessary. perceptions. Systems achieve a steady state or equilibrium point and seek to maintain this equilibrium against disruptive forces. As Katz and Kahn say: ³The basic principle is the preservation of the character of the system. which includes formal structures. This model depicts the organization as an input-throughput-output system. and individual level. Elements of the organization per se are labeled strategy. and 3) History which consists of memories of past successes. and how things really work (versus how they are supposed to work as defined by the formal organization). Another characteristic of systems is equifinality.Another characteristic of open systems is steady state or dynamic homeostasis. With increased differentiation.3. The three major input factors are: 1) The environment. and systems for performing the work. what the organization is trying to accomplish and how it plans to do it. the principle that there are multiple ways to arrive at a particular outcome or state ± systems have multiple paths to goals. work. which includes the organization¶s culture informal rules and understandings. systems tend to get more elaborated.´ Also. the tasks people perform to create products and service markets people. such as capital. specialized. 6.2 Congruence among System Elements David Nadler and associates at Delta Consulting Group developed the congruence model for understanding organizational dynamics and change. unit/group level. These subsystems can be arranged into a hierarchy of systems moving from less important to more important. processes. which imposes constraints and opportunities about what the organization can and can not do. and technology. and the workforce¶s expectations. this process is called differentiation. and critical decisions that still influence behaviour today. . and informal organization. Subsystems exist within larger systems. formal organization. knowledge. which includes skills. differentiated. either internal or external. 2) Resources available to the organization. and complex over time. knowledge. failures. important events. Outputs are performance at the total organization level. people.

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

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

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

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

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

and acting differently than normally takes place at work. and report to one of your subordinates on another team. projects will be performed by teams. superior customer service. clear objectives. It isn¶t the supplemental structure that¶s important.6 Parallel Learning Structures Parallel learning structures. Titeflex. normal hierarchical considerations become obsolete for these project teams-you could be the boss of one team. Projects are the work of the future. talking.´ Parallel structures help people break free of the normal constraints imposed by the organization. 6. Bushe and Shani say: ³The key thing about parallel structures is that they create a bounded space and time for thinking. Most socio-technical systems redesign efforts and open systems planning programs use parallel structures. autonomous. and countless other organizations to demonstrate the ability of small project teams to produce high quality. parallel structures are a vehicle for learning how to change the system. especially when the change involves a fundamental shift in the organization¶s methods of work and/or culture. The quality of work life programs of the 1970s and 1980s used parallel structures composed of union leaders. At Ford Motor Company. Union Pacific Railroad. a steering committee and working groups were used to co-ordinate the employee involvement teams. High responsibility. managers.7 A Normative ± Re-educative Strategy of Changing . He uses examples from EDS (Electronic Data Systems). 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. and then leading the process. you don¶t have a parallel structure.Tom Peters asserts in Liberation Management that cross-functional. Dale had introduced this concept in 1974 under the label collateral organization and defined it as ³a supplemental organization coexisting with the usual formal organization. and employees. Parallel learning structures are often the best way to initiate change in large bureaucratic organizations. specially created organizational structures for planning and guiding change programs. constitute another important foundation of organization development. Interestingly. What¶s important is that people act in a way that promotes learning and adaptation. flexible response. empowered teams are what the best organizations are using right now to outdistance the competition. Parallel learning structures are a foundation of OD because they are prevalent in so many different OD programs. In essence. 6. The most important and difficult task for the people creating the parallel learning structure is to create a different culture within it. Asea Brown Boveri. and high accountability drive these project teams to outperform traditional organization structures on every measurable dimension. engage in genuine inquiry and experimentation.´ The purpose of the collateral organization is to deal with "ill-structured" problems the formal organization is unable to resolve. and continuous learning. Considerable experimentation with collateral organizations occurred in the 1970s and 1980s. deciding. If you don¶t implement different norms and procedures. and initiate needed changes. High-performance organizations often use parallel structures to co-ordinate self-directed teams.

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

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

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

Action research model combines learning and doing.12 Answers to SAQs and TQs SAQs: 1.11 Terminal Questions 1. First²order change is also called ___________. A fundamental belief in OD is that work teams are the building blocks of organizations. Unfreezing 2. Explain Kurt Lewin¶s models and theories of planned organizational change. Systems theory views organizations as open systems in active exchange with their environment. 6. 6. 3. A _____________ is defined as ³a set of elements standing in interaction. OD interventions alter features of the work setting causing changes in individuals¶ behaviours. Transactional change .´ Comment on this statement. 4.´ 5. ±±±±±±±±±± means moving to new level of behaviour. Bring out the essence of ³managing beyond the quick fix´ model of organizational development. What are first-order and second order change according to Burke-Litwin Model of organizational change? Explain. 3. _____________ means sum of the efforts of team members is far greater than the sum of individual efforts of members. The Burke-Litwin model emphasized on first-order and second-order change. 2. In parallel learning structures members have to think and behave in ways that are different from the normal roles and rules of the organization. What are the features of systems theory of organizational development? 5. 6. 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.10 Summary The foundations of organizational development form the theoretical and practice underpinnings of the field. 2.1. ±±±±±±±±±± gave the model ³Beyond the Quick Fix´. ³Work teams are building blocks of organizational development. which in turn lead to individual and organizational improvements is the principle of Porras and Robertson model organizational change. Ralph Kilmann specified the critical leverage points for organizational change. 4. Ralph Kilmann 3.

2. Refer section 6.2 Characteristics of Organization Culture 7. Refer section 6.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . MU0002-Unit-07-Organization Culture and Climate Unit-07-Organization Culture and Climate Structure: 7.1 2. Refer section 6.3 5.1 Introduction Objectives 7.4.3 4.2. System 5.6 Summary . 7. Refer section 6.5 Developing and changing Organization Culture Self Assessment Questions 7.4 Organization Culture and Effectiveness 7.2.Refer section 6.2 3.3 Types of Organization Culture. Synergy Answers to TQs: 1.

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

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

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

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

and earnings. and is worth the investment of time. others are brought into the organization. is worth running some risks for. and decision-making. e. the process usually involves some version of the following steps: 1. According to Likert. For example.. Changing Organizational Culture Sometimes an organization determines that its culture has to be changed. is workable. performance goals. scrap loss. 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. if the appropriate organization culture is in place. costs. The founder brings in one or more other key people and creates a core group that shares a common vision with the founder. The founding core group beings to act in concert to create an organization by raising funds. incorporating. and energy that will be required. building. However. 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. and a common history begins to be built. A single person (founder) has an idea for a new enterprise. and they tend to be longterm goals. . Intervening variables are concerned with building and developing the organization. the current environmental context has undergone drastic change and either the organization must adapt to these new conditions or it may not survive. 3. and so on. motivations. communication. attitudes. the loyalties. and (ii) the intervening behavioral cluster. 3.5 Developing and Changing Organization Culture How Organizational Cultures Start Although organizational cultures can develop in a number of different ways. This is one part of effectiveness that many managers overlook because it emphasis long-term potential as well as short-term performance. The intervening variables may be divided into two broad categories: (i) the intervening attitudinal.2.g. obtaining patents. 2. Likert states that the intervening variables reflect the internal state and health of the organization. That is. Many of these variables are caused by causal variables. motivational. and perceptual cluster. money. At this point. then such rapid change can be welcomed and accommodated with as little disruption and as few problems as possible. 7. end-result variables are the dependent variables which reflect the achievements in the organization such as its productivity. 4. Intervening Variables: Intervening variables are those factors which are reflected as the internal state of organization. and perceptions of all members and their collective capacity for effective interaction. locating space.

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

Discuss the development and change of organizational development. 3. ________cultures are outward looking. 9. Factors in organizational effectiveness include casual variables. Explain the characteristics of organization culture. _____are the visible manifestations of culture as seen in the physical and social environment of the organization. 2. system-resource approach. Organizational effectiveness can be measured through various approaches. Market 3. are particularly driven by results and are often very competitive. Effectiveness of an organization can be increased through economic man approach and administrative man approach. intervening variables and end-result variables and there exists interrelationship among these variables. 7.goal approach.8. and strategic constituencies approach.7 Terminal Questions 1. Causal variables Answers to TQs: . 2.8 Answers to SAQs and TQs SAQs: 1. Organizations to be successful must be efficient and effective. effectiveness through adaptive-coping cycle has been discussed. Stay the course by being persistent. Briefly explain different types of organizational culture. Finally. behavioural approach. Self Assessment Questions 1. Artifacts 2.6 Summary Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. 7. 7. 3. ___________are those factors that influence the course of development within an organization and its results or accomplishment. Move quickly and decisively to build momentum and to defuse resistance to the new culture.

10 Terminal Questions .Power. MU0002-Unit-08. Refer section 7.7 Operating in a Political Environment 8.2 Power Defined and Explored 8.5 Organizational Politics Defined and Explored 8.1. Politics and Organization Development Structure: 8. Refer section 7.4 Theories about the Sources of Social Power 8.9 Summary 8.1 Introduction Objectives 8. Refer section 7.6 The Role of Power and Politics in the Practice of OD 8.8 Acquiring and using Power Skills Self Assessment Questions 8.2 2.Power. Politics and Organization Development Unit-08.3 3.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .3 Two Faces of Power 8.

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

power being the predominant mode. unsocialized need to dominate others. coercing-these are examples of negative uses of power.4 Theories about the Sources of Social Power Power exists in virtually all social situations. absolute power corrupts absolutely. humankind would not have the standard of living it does today. 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. and lead. Without influence (power) people would have no cooperation and no society. financial. influencing. According to him. an authority or power dimension is required. it is through the use of power that things get done in the world. We think this distinction provides a good insight into the concept of power. In most organizations the positive face of power is much more prevalent than the negative face of power." . We therefore define interpersonal power as the ability to get one¶s way in a social situation. however. 8. the negative face of power is characterized by a primitive.Analyzing these definitions shows some common elements: effectance-getting one¶s way." A moment¶s reflection. The negative face of power seeks to dominate and control others. the necessity of social interaction between two or more parties. the act or ability of influencing others. forcing. Power-in-action may take many forms. Without leadership (power) directed toward warfare. This positive face of power enables others to reach their goals as well as lets the person exercising power reach his or her goals. It is especially salient in coordinated activities such as those found in organizations. Without leadership (power) in medical. humankind would not have much of the misery it does today. not the possession of power as such. or acquired? In this unit. Power per se is probably neither good nor bad although Lord Acton observed that "power tends to corrupt. persuading-these are examples of positive uses of power. and repression. or positive. In fact. we will examine four different views about who gets power and how: · Emerson¶s "Power-Dependence theory. with collective." Her research in four organizations showed both kinds of power. technological. McClelland observed that while power has a negative connotation for most people. 8.3 Two Faces of Power David McClelland proposed an important distinction when he identified "two faces of power" ± positive and negative. influence. the positive face of power seeks to empower self and others. suggests that many problems with power stem from the goals of persons with power and the means they use. The phenomenon of power is ubiquitous. hurting. How do some people come to possess power? How is power generated. being exercised. political. The positive face of power is characterized by a socialized need to initiate. selling. bestowed. and organizational activities. for organizations to function. spiritual. and outcomes favoring one party over the other. both positive and negative. Crushing. confiscation. Leading. Roberts came to a similar conclusion in her study of "collective power" and "competitive power.

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

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.

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

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

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

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

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

The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics. arise from known conditions. units or departments is most important in solving organizational problems. Define organization politics. Organizational politics involve intentional acts of influence to enhance or protect the self-interest of individuals or groups. 2. 3. Referent power 4. Organizational power is the ability of those who possess power to bring about the outcomes they desire.11 Answers to SAQs and TQs SAQs: 1. 8. 4. 8. Power can be either positive or negative. Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another. when and how. 2. McClelland 3. and are amenable to positive control. _____________ has identified two faces of power.9 Summary Power and politics are inseparable facts of organizational life. Harold Lasswell .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. 8. Define power in an organizational context and explain types of power. 3. Describe briefly various theories of power. Self Assessment Questions 1. when.10 Terminal Questions 1. Strategic-contingency model of power asserts that power that accrues to the individuals. reputation and professional credibility. Identify the bases of individual power and the respective strategies for their success. Power 2.. emotions or behaviour of people. Power based on the power-receiver having identification with the power holder is called ±±±± ±±±±±±±. and how. 4. Organizational politics is defined as the study of who gets what. ±±±±±± is the intentional influence over the beliefs. Power and politics are similar in nature. ±±±±±±±±±± is made up of Charisma. Explain the role of power and politics in the practice of OD. ±±±±±±±± defined politics as the study of who gets what. 5. 5.

6 5.5.6 Quality of Work Life Projects .2 2.3 Socio Technical Systems 9.1 Introduction Objectives 9. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9.5 4.4 3. Refer section 8. Refer section 8.5 Quality Circles 9.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 Meaning and Definitions 9. Personality Answers to TQs: 1.4 Management By Objectives 9.Refer section 8. Refer section 8. Refer section 8.

organizational problems may repeat. An organization development intervention is a sequence of activities. These programs are derived from careful diagnosis.12 Answers to SAQs and TQs 9. These methods are receiving increasing attention in Organization Development. In this dynamic and fluid environment. events intended to help an organization improve its performance and effectiveness.7 Parallel Learning Structures 9. .9 Reengineering Self Assessment Questions 9. These interventions vary from standardized program that have been developed and sometimes tailored program. · Explain Reengineering. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design. Objectives: After studying this unit.9. · Discuss the Management By Objectives · Explain the Quality Circles.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. · Explain Total Quality Management.11 Terminal Questions 9.8 Total Quality Management 9. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future. 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. actions. · Discuss the parallel Learning Structures.10 Summary 9. Nothing is permanent except change because change is permanently changing. you will be able to: · Explain the Socio technical change.

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

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

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

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

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

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

events intended to help an organization improve its performance and effectiveness. __________ represents a participative approach to employee involvement in problem solving and productivity improvement. ties reward to performance and increase workers knowledge and skills through extensive training. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. There are a number of reasons why a consultant should consider employing a structural intervention. Drucker 3. Sociotechnical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs.1. Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement. 9. events intended to help an organization improve its performance and effectiveness. MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner.10 Summary An organization development intervention is a sequence of activities. 9. actions. 3. Explain Management By Objectives? 4. The term MBO was coined by _________ in 1964. TQM pushes decision making power downwards in the organization. 2. It is also called continuous quality improvement.12 Answers to SAQs and TQS SAQs: 1. structural Interventions compare quite favorably with all other alternatives. Intervention 2. From a benefit cost analysis. consciously directed towards the effective and efficient achievement of organizational objectives. provides relevant information to all employees. Discuss Socio Technical Systems? 2. An organization development __________ is a sequence of activities.11 Terminal Questions 1. actions. Quality circle Answers to TQs: . What are the advantages of structural interventions? 3. 9. Write a short note on Total Quality Management.

Refer section 9.2 Nature of Change 10.Refer section 9.9 Answers to SAQs and TQs . Self Assessment Questions 10.1.1 Introduction Objectives 10.6 Methods of Reducing Resistance to Change. 10.3 Resistance to Change 10.4 Causes for Resistance to Change. Refer section 9.5 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 3.7 Summary 10. MU0002-Unit-10-Managing Change in Organization Development Unit-10-Managing Change in Organization Development Structure: 10. Refer section 9.8 Terminal Questions 10.3 2.5 Impact of Change on the Future Manager 10.

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

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

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.

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

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

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

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

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

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

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

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

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