MU0002 | Swot Analysis | Strategic Planning

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

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

management may be understood as (i) an economic resource. manpower. According to Herbision and Myers. labour and capital. System of Authority: Management as a team of managers represents a system of authority. ongoing concern. 9. the degree of authority gets gradually reduced. management is viewed as an art. For instance. personnel manager etc. useful. Authority enables the managers to perform their functions effectively. materials. Instructions and decisions downward and carry the problem . · Management as a system of authority According to Herbison and Myers. and (iii) a class or elite. Managers at different levels possess varying degrees of authority. Henri Fayol suggested that principles of management would apply more or less in every situation. finance manager. Multi-disciplinary Subject: Management has grown as a field of study (i.knowledge and skills on the part of the manager. Much of the management literature is the result of association of these disciplines. Basically. Generally. management is required to covert the disorganized resources of men. · Management as an economic resource Management is one of the factors of production along with land. the effective use of the five M¶s of management (money. 1. as we move down in the managerial hierarchy. 10. people are bound by authority relationships. Middle management (departmental heads like work manage. machinery and methods or ways of doing things) depends to a great extent on the quality of management. 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. Universal Application: Management is universal in character. The principles and techniques of management are equally applicable in the fields of business. (ii) a system of authority. In modern organizations.e. materials. Anthropology.) interprets and explains the policies framed by the top management. In other words. They transmit orders. It is bound together by a web of relationships between superiors and subordinates. Since the skills acquired by a manager are his personal possession. that is. a hierarchy of command and control. government and hospital. Managers working at top levels enjoy more authority than people working at lower levels. management is the rule-making and rule-enforcing body. money and machines into a productive. how effectively and economically the five M¶s are combined together to produce desired results. Similarly. Sociology and Psychology. Top management determines objectives and provides direction to enterprise activities. According to Newman. 8.4 Scope of Management The scope of management is very wide. productivity orientation drew its inspiration from Industrial Engineering and human relations orientation from Psychology. Sociology and Operations Research have also contributed to the development of management science. discipline) taking the help of so many other disciplines such as Engineering. military. education. it refers to three distinct ideas.

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

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

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

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

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

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

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

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

administration is a higher level function. Administration relates to the decision-making. Administration is a higher level function: Administration refers to policy-making. Management relates to execution of decisions. It is a thinking function. Table 1. Thus. management as an executive function which is primarily concerned with carrying out of the broad policies laid down by the administration. Administration is a determinative function. Those who held management and administration distinct include Oliver Sheldon. Floerence and Tead. Managers are concerned mainly with organisation and direction of human resources. Nature 3.1. iii) There is no distinction between the terms µmanagement¶ and µadministration¶ and they are used interchangeably. 2. on the other hand. Spriegal and Lansburg.2: Distinction between Administration and Management: Basic 1.7 Administration and Management The use of two terms µmanagement¶ and µadministration¶ has been a controversial issue in the management literature. Scope . ii) Management is a generic term and includes administration. administration involves broad policy-making and management involves the execution of policies laid down by the administration. Management Management means getting the work done through and with others. whereas management refers to execution of policies laid down by administration. while others maintain that administration and management are two different functions. Spriegel and Walter. It is a doing function. management is a lower-level function and is concerned primarily with the execution of policies laid down by administration. It is concerned with the implementation of policies. But some English authors like Brech are of the opinion that management is a wider term including administration. It is concerned with determination of major objectives and policies. According to them. 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. Thus. etc. Administrators are basically concerned with planning and control. This view is held by Tead. 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. plans and policies of the organisation. Some writers do not see any difference between the two terms. Meaning Administration Administration is concerned with the formulation of objectives.

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

1. teamwork Answers to TQs: 1. Money. Management 2. materials. Refer section 1. Refer section 1. Bring out the difference between Administration and Management.3 Planning 2. manpower 3.7 Copyright © 2009 SMU Powered by Sikkim Manipal University . 1. 3. Refer section 1.4 Organizing .1 Introduction Objectives 2. Discuss the importance of management.2 Process of Management 2.5 3. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.10 Answers to SAQs and TQs SAQs: 1.

Directing. Objectives: After this studying this unit.7 Motivating Self Assessment Questions 2. Management functions are as follows (Fayol. One can also think of management functionally. Staffing. in recent time. Commanding 4. · Explain different functions of management Process. 1949): 1. as the action of measuring a quantity on a regular basis and of adjusting some initial plan. you will be able to: · Define Management process.10 Answers to SAQs and TQs 2. Controlling However. . · Explain Planning. Organizing. Organizing 3.5 Staffing 2. management functions have been regrouped into four categories.8 Summary 2.2.9 Terminal Questions 2. Planning 2. Coordinating 5.1 Introduction Follett (1933) defined management as "the art of getting things done through people´. Motivating.6 Directing 2. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent.

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

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

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

Assign work to individuals 6. This review is used for the next planning cycle and review. It is the official organizational structure conceived and built by top management. structuring. Formalization is an important aspect of structure. short-term standards for key variables that will tend to validate and support the long-range estimates must be established. and coordinating the work components to achieve organizational goal. tactical. It is the extent to which the units of the organization are explicitly defined and its policies. who is to do. Strategic.5 Staffing . lines of authority. necessary to maintain competitive advantage in the said market. A key issue in accomplishing the goals identified in the planning process is structuring the work of the organization. List all tasks to be accomplished 3. procedures. 2. 2. how the tasks are to be grouped. Divide tasks into groups one person can accomplish ± a job 4. An organization chart displays the organizational structure and shows job titles. Group related jobs together in a logical and efficient manner 5.4 Organizing It involves designing. Organizational structure is the formal decision-making framework by which job tasks are divided. To develop an environmental monitoring procedure. These are specific plans that are needed for each task or supportive activity comprising the whole. The purpose of the organizing function is to make the best use of the organization¶s resources to achieve organizational goals. and where decisions are to be made. In turn. and goals are clearly stated. working toward common goals. operational plans are based on the organization¶s tactical plans. grouped.Tactical plans are based on the organization¶s strategic plan. with ideas and resources. and coordinated. Organizations are groups of people. and relationships between departments. and operational planning must be accompanied by controls to ensure proper implantation of the plans. The steps in the organizing process include: 1. Delegate authority to establish relationships between jobs and groups of jobs. Feedback is encouraged and incorporated to determine if goals and objectives are feasible. Monitor the plan A systematic method of monitoring the environment must be adopted to continuously improve the strategic planning process. who reports to whom. Review plans 2. The formal organization can be seen and represented in chart form. It is the process of determining what tasks are to be done.

It involves many sub-functions such as manpower planning. transfer and appraisal of personnel to fill the organizational positions. Pervasiveness of Staffing: Effective execution of staffing function is the responsibility of all managers in the organization. placement. performance appraisal etc. materials. development. training. 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. appraisal. Present positions must be filled keeping in mind the future requirements.It is not the machines. 5. It has many sub-functions: Staffing involves determination of the manpower requirement. O¶Donnell & Weihrich have defined staffing as ³filling positions in the organization structure through identifying work force requirements. promotion. It deals with future requirements: Staffing deals with current and future personnel requirements. Thus staffing deals with the future requirements also. selection. 3. Koontz. recruitment. Therefore it is the responsibility of the management to secure and maintain competent and dedicated workforce including managers and operatives. 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. 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. growth and development of all those members of the organization whose function is to get things done through the efforts of other individuals´. inventorying the people available. money. Definition: 1. Deals with people: Staffing is a separate managerial function which deals with people in the organization. compensation and training of needed people´. 2. 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. Theo Haimann ± ³Concerned with the placement. Staffing refers to the managerial function of determining and improving the manpower requirements of an enterprise. selection. 4. This task has been referred to as staffing. placement. recruitment. . 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. to provide superiors opportunities for some more important work which their subordinates cannot do. Direction imitates at the top level in the organization and follows to bottom through the hierarchy. It is an important managerial function. Characteristics of Direction The characteristic features of direction are as follow: 1. selection.6. promotion.6 Directing Direction is one of the functions of management. recruitment. Direction is continuous process and it continues throughout the life-time of the organization. It is a continuing function. motivate them. It is instructing people as to what to do. 2. It emphasizes that a subordinate is to be directed by his own superior only. Direction has dual objectives. 3. 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´. training development and maintenance of personnel.e. Direction is the managerial function of guiding. resignation. it aims at getting things done by subordinates and. lead them and guide them on a continuous basis. 2. vacancies arise out of retirement. overseeing and leading people. induction. etc. . Personnel policies and programs must be formulated as guides to perform the staffing function effectively. On the one hand. It is a continuous function: With the growth and expansion of business additional manpower is needed. Thus staffing is an ongoing process through ± out the life of an organization. management initiates actions in the organization. Through direction. Direction function is performed at every level of management. 5. Direction is an important managerial function. on the other. 8. 4. 7. Definition According to Koontz and O¶Donnel. identifying the manpower requirements. how to do and telling them to do to the best of their ability. It is a process: it is a process having a logical sequence i. A manger needs to give orders to his subordinates.

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

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

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

6 OD and Management Development 3. SWOT 3.6 Copyright © 2009 SMU Powered by Sikkim Manipal University .1 Introduction Objectives 3.2 Definitions 3. Reference 2.3 2.5 Goals of OD 3.4 Categories of OD 3. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3.7 Role of OD 3.1. Staffing Answers to TQs: 1. Follett 2. Reference 2.3 Characteristics of OD 3.8 Problems in OD .5 3. Reference 2.

and achieving human connectedness and community in the workplace. the answer is ³yes´. Although new jobs are being created at record rates. and processes. and the constant challenge to maintain congruence among organizational dimensions such as technology.10 Terminal Questions 3. and attention was soon directed toward other human and social processes in organizations such as the design of work tasks. organizations and the individuals in them face an enormously demanding present and future. old jobs are being destroyed at an accelerating pace. efficiency.1 Introduction Organization development is the applied behavioural science discipline dedicated to improving organizations and the people in them through the use of the theory and practice of planned change. challenges from turbulent environments.9 Summary 3. Today. and even prosper in these vexing times? Fortunately. and the like. . 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. A variety of solutions exists. strategy formulation and implementation. take advantage of opportunities. organization development is a process of teaching people how to solve problems. and the organization¶s human and social processes. Simple survival ± continuing to have an adequate job ± is a major challenge today in the light of constant layoffs and cutbacks. survive.11 Answers to SAQs and TQs 3. OD focuses on issues related to the ³human side´ of organizations by finding ways to increase the effectiveness of individuals. And organization development (OD) is one of them. Early returns were encouraging. and changing customer demands. increased competition. Keeping organizations healthy and viable in today¶s world is a daunting task. Individuals in organizations likewise face multiple challenges ± finding satisfaction in and through work.Self Assessment Questions 3. In summary. Organizations face multiple challenges and threats today ± threats to effectiveness. and profitability. ³Knowledge´ work is replacing ³muscle´ work. Organization development is a relatively recent invention. teams. Are any strategies available to help people and organizations cope. conflict resolution. organization structure. organization development represents one of the best strategies for coping with the rampant changes occurring in the marketplace and society. adapt. culture. We predict that organization development will be preferred improvement strategy in future. maintaining dignity and purpose in pursuit of organizational goals. 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. strategy. and learn how to do that better and better over time. fighting obsolescence of one¶s knowledge and skills. Basically.

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

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

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

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

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

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

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

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

Trained specialists required. and laterally. plays key role in organizational improvement. OD can be utilized for the following results in the organization: 1. Train and equip employees and managers to perform better in existing organization. Focus on design. as a long-term strategy for organizational change. No special requirement. OD became quite successful with many professional consultants offering high services and programmes to various organizations. . To increase the level of trust and mutual emotional support among all organization members. To increase the openness of communications in all directions-vertically. 5. Problem-solving approach.7 Role of Organization Development Organization development. however. horizontally. substantial disenchantment with OD became evident because of many controversial OD techniques like sensitivity training. To place emphasis on humanistic values and goals consistent with these vales. 3. To increase the level of enthusiasms and personal satisfaction at all levels of the organization. 7.Focus Approach Time Specialist accomplishments. it is quite suitable for improving organizational performance on long-term basis. Much of the enthusiasm created at the beginning of OD programmes vanished over the period of time. By 70s. 3. 4. not on the managers. To create an environment in which authority of assigned role is augmented by authority based on knowledge and skills. Thus. however.8 Problems in Organization Development Organization development. focus on achieving improvement in design. Educative and training Short-range. To increase the level of self and group responsibility in planning and its implementation. has invited sharp criticism as a strategy to increase organizational viability and effectiveness because many OD programmes have failed. 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. 3. Since OD attempts to bring comprehensive change in the organization. 2. Long-range strategy for organizational innovation and renewal. 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. These should be based on the specific needs of the organization. People realized its dysfunctional aspects only when many OD efforts failed. 2. 5. OD tries to achieve ideal without taking into account real. Therefore. 2. Some of these efforts are as follows: 1. 4. it may be emphasized that OD programmes are likely to fail when these are not programmes and hence failure. In general. Research studies have also failed to conclude significant contributions of OD in all organizations. OD makes people unfit for the real organizations world because no organization can fully adopt open system concept. etc. and only large organizations can afford this luxury without any guarantee of positive outcome. There should be proper use of OD interventions. OD fails to motivate people with low level of achievement needs. There is discrepancy between ideal and real situations. 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. 3. There should be genuine support of OD programme from top management.confrontation techniques. Enough time should be allowed so that the effects of OD programme are realized. 4. 5. Organization must formulate the objectives of OD programme very clearly and specifically. Thus. OD programmes are often quite costly. OD is criticized on the following lines: 1. However. Only fully competent OD consultant should be pressed for the service and he should develop understanding with internal change agents. it is useless to try OD. Hence. If an organization is laden with these people. Resistance to change is a natural phenomenon and OD puts undue pressure to change. in order to make best use of OD efforts. For example. 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. it can be visualized that OD itself may not be dysfunctional but application may be. it fails even as a long-term strategy. particularly in bottom-line ones. Therefore. some specific efforts are required. Self Assessment Questions . It can be seen that many of these criticisms are based on reality and experience. and (ii) failure to correctly model appropriate personnel behaviour in the programme.

collaborative. Define OD. State the various roles of OD. 3. OD is the ultimate remedy for organizational improvements and developments. Explain the various characteristics of OD. What are the problems involved in the implementation of OD? 3. Who is associated with the ³Learning Organizations´? 5. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. Top management 2.10 Terminal Questions 1. OD focuses on culture and processes. Tom Peters 3. 3. 5. There is no µquick fix¶ to organizations¶ problems. ±±±±±±±±± is a process which includes leadership behaviours and human resource practices.11 Answers to SAQs and TQs SAQs: 1. ±±±±±±± is associated with ³Liberation Management´. The participative. Management development aims at developing the managers individually. 2. Explain its salient features. 2. 3. problem-focused µnature of OD¶ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. _____________is a short-term strategy. 4. 3.1. But OD aims at changing the entire organizational climate where the managers work. 4. Empowerment 4. Organization development should be led and supported by ±±±±±±±. Distinguish between µorganizational development¶ and µmanagement development¶. Peter Senge .

1 Introduction Objectives 4. Management development Answers to TQs: 1. Refer section 3.4 Grid Training 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 3.3 Process Consultation 4.2 Survey Feedback 4.5 Leadership Development 4.Organization Development ± Interventions Structure: 4.6 Team-building .7 5. Refer section 3. Refer section 3.5.Organization Development ± Interventions Unit-04. MU0002-Unit-04.6 4.3 3. Refer section 3.2 2.

French and Bell have suggested twelve families of OD interventions: diagnostic.1 Introduction OD interventions refer to various activities which a consultant and client organization perform for improving organizational performance through enabling organizational members better manage their behaviour. techno-structural activities. Interventions constitute the action thrust of organization development. 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.´ There are various OD interventions and they are classified in different ways.4. interpersonal level. interventions may be required to change people at all these levels. the classification appears to be more relevant because it may specify the range of change that an organization requires. Therefore. and organizational culture. mediation and negotiation activities.8 Change Agents 4. For example. process consultation. the classification of OD interventions shows variation.10 Summary 4. and survey feedback method. work group. People¶s behaviour may be relevant to understand at individual level. group level. such a classification of interventions may not put them into mutually exclusive categories as a particular intervention may be applied at more than one level. and organizational level. Thus. Further. Historically. they make things happen. inter-group activities.12 Answers to SAQs and TQs 4. survey feedback. other techniques like process . many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others. Subsequently.7 Inter Group Development 4. education and training. management grid. 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. team-building. inter-group level. French and Bell have defined OD intervention as: ³Sets of structured activities in which selected organizational units (target groups or individuals) engage with a task or a sequence of tasks where the task goals are related directly or indirectly to organizational improvement. However. various consultants and practitioners have different opinions about the activities which can be included in interventions.11 Terminal Questions 4.9 Role of Change Agents Self Assessment Questions 4. grid training. Nevertheless. OD efforts were attempted through sensitivity training.

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

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

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

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

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

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

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

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

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

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

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

widely accepted and applied OD intervention for organizational improvement. The first step in survey feedback is ______ usually by a consultant based on a structured questionnaire. presentations. Data collection.A change agent needs to be a trainer and educator. changing (intervening) and refreezing. 2. generation of new behavioral science knowledge. 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. team-work does not necessarily spurt group efforts 4. What is Grid Training? How does it help in improving individual performance in an organization? . developing action plans based on feedback and follow-up. skills and change in behavior. ________is antithesis of synergy in team-work which suggests that people working together on a common task may actually decrease their individual efforts. Grid Training was developed by ±±±±±±±±±±±± 3. Useful hypothesis are to be formulated and tested. feedback of information. Survey feedback usually proceeds with sequential activities involving data collection. cases and experiential learning etc. group. knowledge and processes necessary for effectiveness at the individual.10 Summary OD intervention strategies are various activities which a consultant and client organization performs for improving organizational performance. diagnosis. 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. Team-building is most important. He has to educate people on the need and importance o change using a variety of methodologies ± lectures. Training is required for enhancing knowledge. Grid training focuses on individuals and groups to assess their own strengths and weaknesses. inter-group and total organization levels. The trainer role is most widely and intensively used at all stages of a change project: unfreezing. 4. Sensitivity training focuses on small group ranging from ten to twelve. group discussions. In process consultation. It focuses on skills. 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. role-plays and instruments. Training is used both in µcontent orientation¶ and process orientation¶. attitudes and beliefs. films. Self Assessment Questions 1.11 Terminal Questions 1.

12 Answers to SAQs and TQs SAQs: 1. Blake and Mouton.2.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . MU0002-Unit-05-Values. Explain Change agents and discuss the role of change agents in detail. What is survey feedback as an intervention of OD? How does it provide base for other OD interventions? 3.2 3. Assumptions. Refer section 4. What is team-building? What are the stages of life cycle of a team? 4. Refer section 4.6 4. Data collection 2. Assumptions. and Beliefs in Organization Development Unit-05-Values. 4. Social loafing Answers to TQs: 1. and Beliefs in Organization Development Structure: 5. Refer section 4. 3.4 2. Refer section 4.1 Introduction .

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.5 Implications of OD Values and Assumptions 5.3 Implications for Designing and Running Organizations 5. · Give the statement of OD values and assumptions.5.5.7 Terminal Questions 5.3 Chronology of Events in Management and Organization Thought 5.2 Implications for Dealing with Groups 5.2 Definitions 5.5.4 Early Statements of OD Values and Assumptions 5. Objectives: After studying this unit. · State the implications of OD values and assumptions.8 Answers to SAQs and TQs 5. beliefs and assumptions. 5.2 Definitions .6 Summary Self Assessment Questions 5. · List the chronology of events of values. shaping the goals and methods of the field and distinguishing OD from other improvement strategies. Most of these beliefs were formulated early in the development of the field. assumptions.1 Implications for Dealing with Individuals 5. and beliefs constitutes an integral part of organization development.1 Introduction A set of values. you will be able to: · Explain the meaning of values.Objectives 5. and they continue to evolve as the field itself evolves.

Evidence for the validity of these values and their supporting assumptions comes from many sources ± the Hawthorne studies. they were fashioned into a coherent value foundation for the theory and practice of organization development.g. 5. with values being beliefs about good and bad. repetitive tasks minimized the skills required to do the job. Values. Piece-rate pay systems were designed to increase motivation and to prevent "soldiering. reason. and beliefs are all cognitive facts or propositions. As these ingredients accumulated.A belief is a proposition about how the world works that the individual accepts as true.. and that rationality. assume that everyone has intrinsic worth. assumptions." Assumptions are beliefs that are regarded as so valuable and obviously correct that they are taken for granted and rarely examined or questioned. dishonesty). or spirit of the time. and the like. increasing awareness of the dysfunctions of bureaucracies. assumptions. and the need for justice through the rule of law and due process. repetitive tasks in an attempt to find "the one best way" to do each job. free speech) and what is undesirable or µbad¶ (e. view all people as having the potential for growth and development. Optimistic values posit that people are basically good. Humanistic values proclaim the importance of the individual: respect the whole person.g. optimistic. research on the effects of different leadership styles. the importance of fair and equitable treatment for all. that progress is possible and desirable in human affairs. OD values tend to be humanistic. Values are also beliefs and are defined as: "Beliefs about what is desirable or µgood¶ (e. and assumptions being. Taylor s methods quickly swept the country and the world as the way to organize work. Major ingredients of the zeitgeist that influenced OD values and assumptions are presented here in a brief chronology.3 Chronology of Events in Management and Organization Thought y Frederick Winslow Taylor s The Principles of Scientific Management (1911) launched the scientific management movement with its emphasis on time and motion studies and breaking jobs into small. the laboratory training movement. Thus. strongly held." or slacking off.. . and goodwill are the tools for making progress. the human relations movement. Simple. relatively unexamined beliefs accepted as the truth. it is a cognitive fact for the person. the right of people to be free from arbitrary misuse of power. and beliefs provide structure and stability for people as they attempt to understand the world around them. the clash between fascism and democracy in World War II. greater understanding of individual motivation and group dynamics. and democratic. Expert engineers and supervisors designed each task and ensured it was done correctly. Values and assumptions do not spring full grown from individuals or societies they are formed from the collective beliefs of an era-the zeitgeist. treat people with respect and dignity. values. Democratic values assert the sanctity of the individual.

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

In an environment of slow change. Rogers focus on effective interpersonal communications was applicable to superior-subordinate relations. increase self-understanding. which holds that individuals have within themselves the capacity to assume responsibility for their behaviour and mental health when provided with a supportive. Those who subscribe to Theory X assume that people are lazy. P. This article introduced the concept of organizations as socio-technical systems. Motivation and Personality by Abraham Maslow (1954) presented a new view of human motivation. proposed that the leadership functions of a group should be shared between the leader and group members and showed how that could be done. Burns and Stalker (1961) described two very different forms of organization structuremechanistic and organic. The task of management is to change organizational structures. Overcoming Resistance to Change. Eric Trist and Ken Bamforth of the Tavistock Clinic (1951) published the results of their work in British coal mines. Carl Rogers Client-Centered Therapy (1951) demonstrated the efficacy of non-directive psychotherapy. and introduced practicing managers to the concepts of need hierarchy and self-actualization. indifferent to the organization s needs.y These years witnessed the beginnings of the laboratory training movement (1946 and 1947). 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. dislike responsibility. resist change. The theory postulated that when lower-level needs are satisfied. are self-centered. and need to be led. a direct precursor of OD. to assume responsibility. French s (1948) article. 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. lack ambition. Ken Benne and Paul Sheats (1948). and understand group dynamics. and human resource practices to allow individual potential to be released. higherlevel needs become dominant. and to pursue organizational goals if given the chance and the social environment to do so. Douglas McGregor wrote The Human Side of Enterprise (1960) in which he described his famous Theory X and Theory Y assumptions. Humanistic and democratic values suffused the movement. In addition to presenting Theory X and Y. management practices. Chris Argyrif s Personality and Organization (1957) was the first of several books in which he stated that there is an inherent conflict between the needs of organizations and the needs of mature. a mechanistic organization y y y y y y y y . healthy adults. Laboratory training taught people how to improve interpersonal relations. Those who subscribe to Theory Y assume that people have the potential to develop. pioneers in laboratory training. caring social climate. Lester Coch and John R. reported that resistance to change could be minimized by communicating the need for change and allowing the people affected by the change to participate in planning it. this book popularized Maslow s motivation theory.

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

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

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

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

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

2. _______________ gave theory X and theory Y. Values. Self Assessment Questions 1. The concept of ±±±±±±±±±± was introduced by MaxWeber. beliefs and assumptions are cognitive facts. State the assumptions of Theory X and Theory Y. and assumptions are all ±±±±±±±±±± facts. These OD values were considered revolutionary when they emerged in the 1950s.7 Terminal Questions 1. Write a note about F. A belief is a proposition about how the world works that the individual accepts as true. Values.8 Answers to SAQs and TQs SAQs: 1. Cognitive . 3. optimistic and democratic.W. Values. OD values tend to be humanistic. __________ is associated with scientific management. but are widely accepted today. 5. 3. values. This discussion was intended to articulate an appreciation of OD values and explain where they came from. Values are also beliefs. What was the outcome of Hawthorne Experiments? 4.6 Summary The field of OD rests on a foundation of values and assumptions about people and organizations. 4. beliefs and assumptions. Taylor¶s principles of scientific management. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. Define concepts. assumptions and beliefs help to define what OD is and guide its implementation. 5. beliefs. 5. Chronology of events in management and OD tremendously influenced OD practitioners. 5. 2.The field of organization development rests on a foundation of values and assumptions about people and organizations. The outcome of ±±±±±±±± was that people were not cogs and organizations were not machines. These beliefs help to define what OD is and guide its implementation.

Refer section 5.3 4.1 Introduction Objectives 6. Refer section 5. Douglas McGregor Answers to TQs: 1.1 Kurt Lewin and Friends 6.3 5. F. Refer section 5.3 3. Hawthorne experiments 5.2.2 Models and Theories of Planned Change 6. Refer section 5.3 Copyright © 2009 SMU Powered by Sikkim Manipal University . Bureaucracy 4.2. W. Refer section 5. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.2 Beyond the Quick Fix .2.2 2. Taylor 3.

3.6 Parallel Learning Structures 6.3 The Burke-Litwin Model of Organizational Change 6.12 Answers to SAQs and TQs 6.8 Applied Behavioural Science 6.4 Porras and Robertson Model of Organizational Change 6.2.1 The Nature of Systems 6. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs.2. In this discussion.3 Socio-technical Theory and Open Systems Planning 6. art and science which form the knowledge base upon which OD is constructed.9 Action Research Self Assessment Questions 6.6.11 Terminal Questions 6.5 Teams and Teamwork 6.3.10 Summary 6.2 Congruence among System Elements 6.4 Participation and Empowerment 6.7 A Normative ± Re-educative Strategy of Changing 6. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning.3. you will be able to: .3. Objectives: After studying this unit.3 Systems Theory 6.4 Open Systems Thinking 6.1 Introduction This unit describes the foundations of organization development theory and practice.

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

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

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

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

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

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

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

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

3 Systems Theory A second foundation of organization development is systems theory. which views organizations as open systems in active exchange with their environment. describes the characteristics of systems. Keep this framework in mind as you read the units on OD interventions because all interventions target one or more factors shown in figures. Systems . 6.5: A Change-based Organizational Framework 6.4: Organizational Work-Setting Factors This model is extremely useful for OD practitioners and organizational leaders. Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950. and shows how systems theory enhances the practice of OD.Fig. This section explains systems theory. Fig. 6. and Katz and Kahn were the first to apply open systems theory to organizations in 1966.

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

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

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

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

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

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

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

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

and acting differently than normally takes place at work. 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. managers. and employees. engage in genuine inquiry and experimentation. Bushe and Shani say: ³The key thing about parallel structures is that they create a bounded space and time for thinking. parallel structures are a vehicle for learning how to change the system. It isn¶t the supplemental structure that¶s important. autonomous. and initiate needed changes. He uses examples from EDS (Electronic Data Systems). Asea Brown Boveri. Union Pacific Railroad. 6.6 Parallel Learning Structures Parallel learning structures. Considerable experimentation with collateral organizations occurred in the 1970s and 1980s. The most important and difficult task for the people creating the parallel learning structure is to create a different culture within it. If you don¶t implement different norms and procedures.´ Parallel structures help people break free of the normal constraints imposed by the organization.7 A Normative ± Re-educative Strategy of Changing . and then leading the process. projects will be performed by teams. High responsibility. Projects are the work of the future. and countless other organizations to demonstrate the ability of small project teams to produce high quality. Parallel learning structures are a foundation of OD because they are prevalent in so many different OD programs. At Ford Motor Company. and report to one of your subordinates on another team. constitute another important foundation of organization development.Tom Peters asserts in Liberation Management that cross-functional. specially created organizational structures for planning and guiding change programs. In essence. What¶s important is that people act in a way that promotes learning and adaptation. Parallel learning structures are often the best way to initiate change in large bureaucratic organizations. clear objectives. a steering committee and working groups were used to co-ordinate the employee involvement teams. flexible response. Titeflex. 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. talking. deciding. and high accountability drive these project teams to outperform traditional organization structures on every measurable dimension.´ The purpose of the collateral organization is to deal with "ill-structured" problems the formal organization is unable to resolve. 6. Interestingly. you don¶t have a parallel structure. High-performance organizations often use parallel structures to co-ordinate self-directed teams. empowered teams are what the best organizations are using right now to outdistance the competition. normal hierarchical considerations become obsolete for these project teams-you could be the boss of one team. and continuous learning. especially when the change involves a fundamental shift in the organization¶s methods of work and/or culture. superior customer service. Most socio-technical systems redesign efforts and open systems planning programs use parallel structures. The quality of work life programs of the 1970s and 1980s used parallel structures composed of union leaders.

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

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

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

A fundamental belief in OD is that work teams are the building blocks of organizations. ±±±±±±±±±± means moving to new level of behaviour.12 Answers to SAQs and TQs SAQs: 1. which in turn lead to individual and organizational improvements is the principle of Porras and Robertson model organizational change. 6. 3. The Burke-Litwin model emphasized on first-order and second-order change. 6. What are first-order and second order change according to Burke-Litwin Model of organizational change? Explain. Unfreezing 2. Ralph Kilmann specified the critical leverage points for organizational change. First²order change is also called ___________. What are the features of systems theory of organizational development? 5. Bring out the essence of ³managing beyond the quick fix´ model of organizational development. 2.10 Summary The foundations of organizational development form the theoretical and practice underpinnings of the field. OD interventions alter features of the work setting causing changes in individuals¶ behaviours. Systems theory views organizations as open systems in active exchange with their environment. Action research model combines learning and doing.1. Ralph Kilmann 3.´ 5. ³Work teams are building blocks of organizational development. Kurt Lewin introduced two ideas about change the first idea states that what is occurring at any point in time is a resultant in a field of opposing forces and the second is the model of the change process. Explain Kurt Lewin¶s models and theories of planned organizational change. 2. 4. 6. Transactional change .11 Terminal Questions 1. ±±±±±±±±±± gave the model ³Beyond the Quick Fix´. 3. In parallel learning structures members have to think and behave in ways that are different from the normal roles and rules of the organization.´ Comment on this statement. _____________ means sum of the efforts of team members is far greater than the sum of individual efforts of members. A _____________ is defined as ³a set of elements standing in interaction. 4.

4 Organization Culture and Effectiveness 7. Synergy Answers to TQs: 1.2.1 2. 7.1 Introduction Objectives 7.5 Developing and changing Organization Culture Self Assessment Questions 7.2. MU0002-Unit-07-Organization Culture and Climate Unit-07-Organization Culture and Climate Structure: 7. Refer section 6.3 Types of Organization Culture.Refer section 6.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .4.6 Summary .2 Characteristics of Organization Culture 7. Refer section 6.2.3 4. Refer section 6. Refer section 6.3 5.2 3. System 5.

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

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

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

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

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

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

Causal variables Answers to TQs: . Effectiveness of an organization can be increased through economic man approach and administrative man approach. Explain the characteristics of organization culture. 3. Stay the course by being persistent. ___________are those factors that influence the course of development within an organization and its results or accomplishment.6 Summary Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. 7. intervening variables and end-result variables and there exists interrelationship among these variables. 7. are particularly driven by results and are often very competitive. system-resource approach.8. 3. ________cultures are outward looking. Organizations to be successful must be efficient and effective. Market 3.goal approach. 2. effectiveness through adaptive-coping cycle has been discussed. Finally.8 Answers to SAQs and TQs SAQs: 1. _____are the visible manifestations of culture as seen in the physical and social environment of the organization. Move quickly and decisively to build momentum and to defuse resistance to the new culture. behavioural approach. Self Assessment Questions 1. Organizational effectiveness can be measured through various approaches. Factors in organizational effectiveness include casual variables. 7. 9. and strategic constituencies approach. Discuss the development and change of organizational development. Artifacts 2. Briefly explain different types of organizational culture. 2.7 Terminal Questions 1.

8 Acquiring and using Power Skills Self Assessment Questions 8.10 Terminal Questions .1.4 Theories about the Sources of Social Power 8.5 Organizational Politics Defined and Explored 8.2 2.6 The Role of Power and Politics in the Practice of OD 8.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 Power Defined and Explored 8.Power. Politics and Organization Development Structure: 8.1 Introduction Objectives 8.9 Summary 8. Refer section 7.Power. MU0002-Unit-08.3 Two Faces of Power 8. Refer section 7. Refer section 7.7 Operating in a Political Environment 8. Politics and Organization Development Unit-08.3 3.

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

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

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

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.

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

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

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

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

(4) express confidence (5) foster initiative and responsibility. we have examined power and politics with the goals of understanding the phenomena and deriving implications for OD practitioners. 8.1: Model of Power and Influence Networking is used to increase both personal power and position power. "Power is converted into influence when the target individual consents to behave according to the desires of the power holder. Concluding Comments: In this unit. (3) reward and encourage others in visible and personal ways. and (6) build on success. Our suggestions for . collaborative work environment. Retribution is not recommended except in unusual cases.Fig. and retribution. Methods for empowering others are the following: (1) involve subordinates in assigning work. and (3) empowering others. power-in-use is called influence. actually using it to get things done is another. Reciprocity refers to exchange of favors. Power and politics are similar in nature. Whetton and Cameron suggest several means of resisting others¶ influence attempts such as confrontation and using countervailing power. According to these authors." Three things are involved in converting power into influence: (1) resisting other people¶s inappropriate influence attempts. (2) provide a positive. They write: "Influence entails actually securing the consent of others to work with you in accomplishing an objective. Usually reason is the preferred strategy. reciprocity. Having power is one thing. Reason refers to persuasion by facts. Retribution refers to coercion and threats. and reciprocity can be useful when reason fails." And. arise from known conditions. Three influence strategies can be used to influence others-reason. and are amenable to positive control. (2) selecting the proper influence strategy.

5. ±±±±±±±± defined politics as the study of who gets what. Referent power 4. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics.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. and how.. ±±±±±± is the intentional influence over the beliefs. Power and politics are similar in nature. arise from known conditions. Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another. 2. 3. Describe briefly various theories of power. 8.11 Answers to SAQs and TQs SAQs: 1. 8. and are amenable to positive control. Power based on the power-receiver having identification with the power holder is called ±±±± ±±±±±±±. Organizational politics is defined as the study of who gets what. Explain the role of power and politics in the practice of OD. when. Power 2.9 Summary Power and politics are inseparable facts of organizational life. Strategic-contingency model of power asserts that power that accrues to the individuals. Organizational power is the ability of those who possess power to bring about the outcomes they desire. Define organization politics. units or departments is most important in solving organizational problems. 3. emotions or behaviour of people. Organizational politics involve intentional acts of influence to enhance or protect the self-interest of individuals or groups. 4. 5. Power can be either positive or negative. Self Assessment Questions 1. Identify the bases of individual power and the respective strategies for their success. 8. Harold Lasswell .10 Terminal Questions 1. 2. McClelland 3. 4. _____________ has identified two faces of power. Define power in an organizational context and explain types of power. reputation and professional credibility. ±±±±±±±±±± is made up of Charisma. when and how.

5 Quality Circles 9. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9. Refer section 8.6 5.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 2. Personality Answers to TQs: 1.5 4.4 3.1 Introduction Objectives 9. Refer section 8.5. Refer section 8.6 Quality of Work Life Projects . Refer section 8.Refer section 8.3 Socio Technical Systems 9.2 Meaning and Definitions 9.4 Management By Objectives 9.

1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. 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. Nothing is permanent except change because change is permanently changing. These methods are receiving increasing attention in Organization Development.10 Summary 9. actions.11 Terminal Questions 9. organizational problems may repeat. events intended to help an organization improve its performance and effectiveness. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design. . In this dynamic and fluid environment. · Explain Reengineering.9 Reengineering Self Assessment Questions 9. · Discuss the Management By Objectives · Explain the Quality Circles.8 Total Quality Management 9.9. · Explain Total Quality Management. These programs are derived from careful diagnosis. These interventions vary from standardized program that have been developed and sometimes tailored program. An organization development intervention is a sequence of activities. Objectives: After studying this unit. you will be able to: · Explain the Socio technical change.7 Parallel Learning Structures 9. One important intervention technique is Technostructural interventions because these are related to technical and structural issues such as how to divide labour and how to coordinate department which is related to Restructuring organization.12 Answers to SAQs and TQs 9. · Discuss the parallel Learning Structures.

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

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

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

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

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

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

events intended to help an organization improve its performance and effectiveness.12 Answers to SAQs and TQS SAQs: 1. consciously directed towards the effective and efficient achievement of organizational objectives.1. __________ represents a participative approach to employee involvement in problem solving and productivity improvement. 9. actions. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. structural Interventions compare quite favorably with all other alternatives. provides relevant information to all employees. There are a number of reasons why a consultant should consider employing a structural intervention. 2. The term MBO was coined by _________ in 1964. Drucker 3. Explain Management By Objectives? 4. Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement. An organization development __________ is a sequence of activities. 9. Quality circle Answers to TQs: . From a benefit cost analysis. 3. 9.10 Summary An organization development intervention is a sequence of activities. It is also called continuous quality improvement. actions. Intervention 2. TQM pushes decision making power downwards in the organization. Sociotechnical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. ties reward to performance and increase workers knowledge and skills through extensive training. Discuss Socio Technical Systems? 2.11 Terminal Questions 1. What are the advantages of structural interventions? 3. Write a short note on Total Quality Management. MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. events intended to help an organization improve its performance and effectiveness.

10. Refer section 9.7 Summary 10.6 Methods of Reducing Resistance to Change. Self Assessment Questions 10.2 3.1.1 Introduction Objectives 10.5 4.4 Causes for Resistance to Change.2 Nature of Change 10.8 Terminal Questions 10.9 Answers to SAQs and TQs .Refer section 9.3 2. Refer section 9.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 9.5 Impact of Change on the Future Manager 10.3 Resistance to Change 10. MU0002-Unit-10-Managing Change in Organization Development Unit-10-Managing Change in Organization Development Structure: 10.

may require special change efforts. Organizational change is a continuous process. some parts may be affected directly. biological. indirectly. 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. Objectives: After studying this unit. Hence. cope with the ongoing changes successfully in the first instance. job design and people. or social. less. Nothing is permanent except change because change is permanently changing.10. and others. 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. others. Newstrom and Davis have explained the impact of a change in any part of the organization on the total organization. Any change may effect the whole organization. · Impact of change on future managers. some parts of organization may be affected more. and others. It implies a new equilibrium between different components of the organization ± technology. 2. it disturbs the old equilibrium necessitating the development of a new equilibrium.2 Nature of Change The term µchange¶ refers to an alteration in a system. which are major ones. 10.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. When change occurs in any part of the organization. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented). However.whether physical. organizational problems may repeat. In this dynamic and fluid environment. 3. some changes which are of minor type may be absorbed by the existing equilibrium. · State the methods of reducing resistance to change. and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other. Thus. organizational change may have the following features: 1. organizational change is the alteration of work environment in an organization. They have illustrated it by comparing an organization to an air-filled . Thus. The type of new equilibrium depends on the degree of change and its impact on the organization. structural arrangement.

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

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.

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

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

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

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

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

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

10. Organization Theory and Design. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups.9 Answers to SAQs and TQS SAQs: 1. Regal Publications New Delhi. or the like.. Discuss the methods of reducing resistance to change.. that is.Singh. Refer section 10. .management of Organization Change. threatening to go on strike. · Harigopal K. P. Thomson South Western. eighth edition. New Delhi. · Cummings & Worley. Reference: · Wendell L.2 2. Modern Organization Development and Change. both at the formal and informal levels. Organization Development. Jain. Participation Answers to TQs: 1. Explain the nature of change? 2.8 Terminal Questions 1. N. Problem of overcoming resistance to change can be handled at two levels.complaints. through group dynamics. Refer section 10. 10. Organizational change 2. New Delhi. Jr. Principles and Practices. Refer section 10. Psychological factors 3. Bell. P. at the level of individual and at the level of group. · J. Why do organizations resist change? 3.6. French and Cecil H.Response Books.4 3. engaging in a work showdown. Prentice-Hall of India Private Limited. Organization Development & Change. Thomson · Daft Richard L.

Principles & Practice of Management.· James Ltd.oup. Prentice-Hall India. New Delhi. 12th edition. Robbins.humtech.umd. Stoner and R.pdf http://www. · Laxmi Devi.pdf Copyright © 2009 SMU Powered by Sikkim Manipal University .cfm http://www.umich. Organizational Development. E References y y y y y y y y y y y http://fds.htm www. http://www. Organizational Behaviour. Anmol Publications Pvt.managementtoday. · L. Prasad. Robbbins. Edward Freeman. Sultan Chand & www.html http://muse. N. Educatiional Publishers. New Delhi. Organizational Behaviour.1lowry.work911.htm#TopOfPage http://www.kurims.wdi.bus. Ltd. · T. Dhanpat Rai & Co. Management. Management. New Delhi. · Stephen P. .com/opm/grtl/OLS/ols6. Prentice-Hall of India. · Stephens P. New Prentice-Hall of http://www.

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