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

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

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

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

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

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

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

Informational Roles: All managers.liaison role. Typically. This is the disseminator role. network of outside contacts and doing external board work. Table 1.1: Mintzberg¶s Managerial Roles Role Interpersonal Figurehead Description Identifiable Activities Leader Liaison Symbolic head. activities that involve responsible for staffing. to some degree. Seeks and receives wide variety Reading periodicals and of special information (much of reports. he or she has an outside liaison relationship. maintaining it current) to develop thorough personal contacts. emerges as nerve center of internal and external information about the organization. subordinates. and may be inside or outside the organization. that involve outsiders. manages also perform a spokesperson role. Mintzberg called this the monitor role. Informational Monitor Disseminator . signing perform a number of routine legal documents. When that sales manager confers with other sales executives through a marketing trade association. fulfill informational roles-receiving and collecting information from organizations and institutions outside their own. Responsible for the motivation Performing virtually all and activation of subordinates. understanding of organization and environment. These sources are individuals or groups outside the manager¶s unit. informers who provide favors performing other activities and information. making phone subordinates to members of the calls to relay information. training. Transmits information received Holding informational from outsides or from other meetings. what competitors may be planning. Mintzberg described this activity as contacting external sources who provide the manager with information. When they represent the organisation to outsiders. obliged to Greeting visitors. and the like. Maintains self-developed Acknowledging mail. duties of a legal or social nature. Managers also act as a conduit to transmit information to organizational members. and associated duties. The sales manager who obtains information from the human resources manager in his or her same company has an internal liaison relationship. they do so by reading magazines and talking with others to learn of changes in the public¶s tastes.

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

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

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

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

Refer section 1.1 Introduction Objectives 2.10 Answers to SAQs and TQs SAQs: 1. 3. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2. Management 2. Bring out the difference between Administration and Management. Money. Refer section 1. manpower 3.1. teamwork Answers to TQs: 1. Discuss the importance of management. materials.3 Planning 2.3 2.5 3.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .4 Organizing . 1.2.2 Process of Management 2.2. Refer section 1.

in recent time. .7 Motivating Self Assessment Questions 2.5 Staffing 2. Planning 2. · Explain different functions of management Process.8 Summary 2. 1949): 1.2.9 Terminal Questions 2.10 Answers to SAQs and TQs 2. Coordinating 5. Controlling However. Staffing. One can also think of management functionally.6 Directing 2. Organizing. you will be able to: · Define Management process. Organizing 3. management functions have been regrouped into four categories. Management functions are as follows (Fayol. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent. Motivating. as the action of measuring a quantity on a regular basis and of adjusting some initial plan. Commanding 4. Directing. Objectives: After this studying this unit.1 Introduction Follett (1933) defined management as "the art of getting things done through people´. · Explain Planning.

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

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

What are the emerging technologies? 6. the best strategy is one that fits the organization¶s strengths to opportunities in the environment. organizations have longterm objectives for factors such as. Are there new competitors? 3. etc. return on investment. Are market tastes changing? 5. as well as gap analysis. Set goals and objectives Strategic goals and objectives are developed to fill the gap between current capability and the mission. Comparing the organization to external benchmarks (the best practices) is used to assess current capabilities. In which areas does the competition meet customer needs more effectively? 2. What are the possible new markets? 3. effectiveness. Is there a possibility of growth of existing market?) Identifying threats involves the following: 1. Are our rivals weak? 5. What substitute products exist? In general terms. They are aligned with the mission and form the basis for the action plans of an organization. What is the strength of the economy? 4. Generally. 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. earnings per share. Develop related strategies (tactical and operational) . The SWOT analysis is used as a baseline for future improvement. It also helps in setting minimum acceptable standards or common-sense minimums. In which areas is the competition not meeting customer needs? 2. Is there a shortage of resources? 4.1. Objectives are also called performance goals.

Monitor the plan A systematic method of monitoring the environment must be adopted to continuously improve the strategic planning process. with ideas and resources. It is the official organizational structure conceived and built by top management. who is to do. who reports to whom. grouped. The purpose of the organizing function is to make the best use of the organization¶s resources to achieve organizational goals. Formalization is an important aspect of structure. working toward common goals. List all tasks to be accomplished 3. An organization chart displays the organizational structure and shows job titles. and goals are clearly stated. It is the extent to which the units of the organization are explicitly defined and its policies. 2. The steps in the organizing process include: 1. and coordinated. and coordinating the work components to achieve organizational goal.5 Staffing . and where decisions are to be made. tactical. structuring.Tactical plans are based on the organization¶s strategic plan. Assign work to individuals 6. In turn. how the tasks are to be grouped. Organizational structure is the formal decision-making framework by which job tasks are divided. 2.4 Organizing It involves designing. A key issue in accomplishing the goals identified in the planning process is structuring the work of the organization. necessary to maintain competitive advantage in the said market. Organizations are groups of people. and relationships between departments. Divide tasks into groups one person can accomplish ± a job 4. procedures. These are specific plans that are needed for each task or supportive activity comprising the whole. operational plans are based on the organization¶s tactical plans. This review is used for the next planning cycle and review. Delegate authority to establish relationships between jobs and groups of jobs. Feedback is encouraged and incorporated to determine if goals and objectives are feasible. and operational planning must be accompanied by controls to ensure proper implantation of the plans. To develop an environmental monitoring procedure. Review plans 2. lines of authority. Group related jobs together in a logical and efficient manner 5. The formal organization can be seen and represented in chart form. Strategic. It is the process of determining what tasks are to be done. short-term standards for key variables that will tend to validate and support the long-range estimates must be established.

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

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

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

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

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

3 Characteristics of OD 3.4 Categories of OD 3.1 Introduction Objectives 3. Reference 2.7 Role of OD 3. Follett 2.6 Copyright © 2009 SMU Powered by Sikkim Manipal University .1. Reference 2. Reference 2. Staffing Answers to TQs: 1.8 Problems in OD .3 2.2 Definitions 3. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3. SWOT 3.6 OD and Management Development 3.5 Goals of OD 3.5 3.

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

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

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

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

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

Teams of all kinds are particularly important for accomplishing tasks and are targets for OD activities. 10. 3. collaborators. Specifically. Attempting to create ³win-win´ solutions is standard practice in OD programs. constantly shifting teams will be the dominant configuration for getting work done. OD encourages collaboration between organization leaders and members in managing culture and processes. The definition we have just analyzed contains the elements we believe are important for OD. 9. The concept of comprehensive change is based on the systems concept-open. rather than focusing attention on individuals. 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. 2. The thesis of Liberation Management is that contemporary bureaucratic structures with their functional specialties and rigid hierarchies are all wrong for the demands of today¶s fast-paced market place. OD views organization improvement as an ongoing process in the context of a constantly changing environment. OD . and co-learners with the client system. OD takes a developmental view that seeks the betterment of both individuals and the organization. dynamic and adaptive system. here are the primary distinguishing characteristics of organization development: 1. according to Peters.multifunctional. Comprehensive Change: OD efforts focus on comprehensive change in the organization. Participation and involvement in problem-solving and decision-making by all levels of the organization are hallmarks of OD. OD relies on an action research model with extensive participation by client system members. 8. 3. To summarize. OD focuses on culture and processes. 6. OD practitioners are facilitators. This µplanned¶ emphasis separates OD efforts from other kinds of more haphazard changes that are frequently undertaken by organizations. 7. An overarching goal is to make the client system able to solve its problems on its own by teaching the skills and knowledge of continuous learning through self-analytical methods. 5. Planned Change: OD is a strategy of planned change for organizational improvement. OD focuses on total system change and views organizations as complex social systems. 2.3 Characteristics of OD 1. 4.

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

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

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

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

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

There is no µquick fix¶ to organizations¶ problems. 3. 3.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. 2. ±±±±±±± is associated with ³Liberation Management´. Tom Peters 3. 2.1. 4. 3. 3. collaborative. The participative. Explain the various characteristics of OD. Empowerment 4. But OD aims at changing the entire organizational climate where the managers work. OD is the ultimate remedy for organizational improvements and developments. 4. problem-focused µnature of OD¶ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. Define OD. Peter Senge . What are the problems involved in the implementation of OD? 3. Top management 2. ±±±±±±±±± is a process which includes leadership behaviours and human resource practices.10 Terminal Questions 1.11 Answers to SAQs and TQs SAQs: 1. _____________is a short-term strategy. Management development aims at developing the managers individually. OD focuses on culture and processes. Distinguish between µorganizational development¶ and µmanagement development¶. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. Who is associated with the ³Learning Organizations´? 5. 5. Organization development should be led and supported by ±±±±±±±. Explain its salient features. State the various roles of OD.

MU0002-Unit-04.6 4.6 Team-building .Organization Development ± Interventions Unit-04. Refer section 3.4 Grid Training 4.3 Process Consultation 4.5. Refer section 3. Refer section 3.2 2.2 Survey Feedback 4.1 Introduction Objectives 4. Refer section 3.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Management development Answers to TQs: 1.7 5.Organization Development ± Interventions Structure: 4. Refer section 3.5 Leadership Development 4.3 3.

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

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

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

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

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

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

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

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

Examining Differences: The perception of people on an issue differs because of their differing backgrounds. Providing substantial time together in which new information is constantly shared. Often the team itself defines which aspects of team-building it wishes to work on. and 5. 3. generally most of the members come forward with their arguments as to what the real problems are. recognition.2: Process of Team-building Various steps of team-building process are not one-shot action. Analyzing the relationships among the members who are performing the job. This problem can better be identified in terms of what is hindering group effectiveness. they are repetitive and cyclical as indicated by arrows in the figure. Analyzing how the work is performed. 1. the emphasis should be on consensus. 2. Problem-sensing: There are a number of ways in which problems of a team can be obtained. group problems to even personal problem. Much of the problems may be solved through effective communication and training sessions. Analyzing how team¶s goals and priorities are linked to those of the organization. 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. Team-building Process: Team-building attempts to improve effectiveness of the team by having team members to concentrate on: 1. In problem identification. rather. and 5.4. At this stage. The view may be quite different ranging from the organizational problem. such as. Analyzing how the team is working. Providing positive feedback. 2. and rewards. personality and attitudes. The consensus-seeking part of the process necessitates that each person becomes thoroughly aware and understand clearly the basic concepts of team-development. For achieving these. . their value systems. Fig. The role of communication is important in this context because it will help in clarifying the actual problems to the members. the team-building exercise proceeds in a particular way as shown in figure. 4. Setting goals and priorities for the team. 4.

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

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

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

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

Refer section 4. and Beliefs in Organization Development Structure: 5.2 3. Social loafing Answers to TQs: 1. What is survey feedback as an intervention of OD? How does it provide base for other OD interventions? 3. Refer section 4. Assumptions.2. Data collection 2. Refer section 4. Blake and Mouton.1 Introduction . What is team-building? What are the stages of life cycle of a team? 4. Refer section 4. 3. 4.4 2.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .12 Answers to SAQs and TQs SAQs: 1. Assumptions. Explain Change agents and discuss the role of change agents in detail. and Beliefs in Organization Development Unit-05-Values.6 4. MU0002-Unit-05-Values.

5.3 Chronology of Events in Management and Organization Thought 5. shaping the goals and methods of the field and distinguishing OD from other improvement strategies.2 Definitions 5. · List the chronology of events of values.8 Answers to SAQs and TQs 5. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers.7 Terminal Questions 5. you will be able to: · Explain the meaning of values.Objectives 5. Most of these beliefs were formulated early in the development of the field. · State the implications of OD values and assumptions.5. assumptions.2 Implications for Dealing with Groups 5. beliefs and assumptions.1 Introduction A set of values.5 Implications of OD Values and Assumptions 5. beliefs and assumptions. Objectives: After studying this unit. · Give the statement of OD values and assumptions.5.3 Implications for Designing and Running Organizations 5. and they continue to evolve as the field itself evolves.1 Implications for Dealing with Individuals 5. 5. and beliefs constitutes an integral part of organization development.4 Early Statements of OD Values and Assumptions 5.2 Definitions .6 Summary Self Assessment Questions 5.

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

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

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

Organic structures encourage decentralized decision making and authority. Rather than the usual bureaucratic methods which rely mainly on suppression. We will examine three early statements regarding OD values that had a significant impact on the field. He listed these normative goals as follows: · Improvement in interpersonal competence. The Bennis and Beckhard quotations come from their books in the Addison-Wesley Six-Pack. This leadership style was contrasted with an authoritarian. summarized the state of organization development a decade or so after its inception. (1969) a set of six little books on OD by prominent practitioners. . · Development of better methods of conflict resolution. theory. the initial enthusiasm for scientific management. humanistic. in an environment of high change. and negative consequences. one-on-one leadership style. Out of this zeitgeist. Tannenbaum and Davis presented their ideas in an article appearing in Industrial Management Review. bureaucracy. and greater individual autonomy. The Addison-Wesley Publishing Company OD Six-Pack. and unprincipled power. as we have said.structure may be appropriate. Values have always been an integral part of OD. and democratic. · A shift in values so that human factors and feelings come to be considered legitimate. goal-oriented. practice. To summarize the intellectual climate of this period. · Development of more effective "team management. Writing in 1969. and observations utilized by OD practitioners. and authoritarian leadership gave way to increasing doubts about these organizational practices as theory and research pointed up their limitations. Kahn (1966) presented the first comprehensive exposition of organizations as open systems. open communications. y y This chronology captures most of the significant influences from research. compromise. y Rensis Likert s New Patterns of Management (1961) presented data and theory showing the overwhelming superiority of a democratic leadership style in which the leader is group oriented." that is. and values of the field. the capacity for functional groups to work more competently. Warren Bennis proposed that OD practitioners (change agents) share a set of normative goals based on their humanistic/ democratic philosophy. organization development practitioners formulated a set of values and assumptions regarding people. dysfunctions. groups. The Social Psychology of Organizations by Daniel Katz and Robert L. and shares decision-making with the work group. optimistic. an organic organization form is preferred. more rational and open methods of conflict resolution are sought. and organizations that is. · Development of increased understanding between and within working groups in order to reduce tensions. These six books presented the theory.

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

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

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

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

Cognitive . Define concepts. The concept of ±±±±±±±±±± was introduced by MaxWeber. _______________ gave theory X and theory Y. beliefs and assumptions are cognitive facts. Self Assessment Questions 1. 2. but are widely accepted today. 2. Values.8 Answers to SAQs and TQs SAQs: 1. beliefs. These beliefs help to define what OD is and guide its implementation.W. Values are also beliefs. Taylor¶s principles of scientific management. Chronology of events in management and OD tremendously influenced OD practitioners.7 Terminal Questions 1. Values. Write a note about F. 3. assumptions and beliefs help to define what OD is and guide its implementation. values. 4.The field of organization development rests on a foundation of values and assumptions about people and organizations. beliefs and assumptions. 5. 5. 5. A belief is a proposition about how the world works that the individual accepts as true. optimistic and democratic. OD values tend to be humanistic. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. This discussion was intended to articulate an appreciation of OD values and explain where they came from. and assumptions are all ±±±±±±±±±± facts. 5. The outcome of ±±±±±±±± was that people were not cogs and organizations were not machines. These OD values were considered revolutionary when they emerged in the 1950s. Values. 3.6 Summary The field of OD rests on a foundation of values and assumptions about people and organizations. What was the outcome of Hawthorne Experiments? 4. __________ is associated with scientific management. State the assumptions of Theory X and Theory Y.

2 Models and Theories of Planned Change 6. Refer section 5. Refer section 5. F. Refer section 5.3 Copyright © 2009 SMU Powered by Sikkim Manipal University .2. Refer section 5.1 Kurt Lewin and Friends 6. Refer section 5.1 Introduction Objectives 6.2 2.3 3. Bureaucracy 4.3 4. Douglas McGregor Answers to TQs: 1. Hawthorne experiments 5.2.3 5.2.2 Beyond the Quick Fix . MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6. W. Taylor 3.

you will be able to: .2 Congruence among System Elements 6. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning.1 The Nature of Systems 6.3.4 Porras and Robertson Model of Organizational Change 6.4 Participation and Empowerment 6.5 Teams and Teamwork 6.10 Summary 6.3.2.9 Action Research Self Assessment Questions 6.3 The Burke-Litwin Model of Organizational Change 6.6.1 Introduction This unit describes the foundations of organization development theory and practice.3 Socio-technical Theory and Open Systems Planning 6.12 Answers to SAQs and TQs 6. art and science which form the knowledge base upon which OD is constructed.8 Applied Behavioural Science 6.2. In this discussion.4 Open Systems Thinking 6. Objectives: After studying this unit.11 Terminal Questions 6.3.6 Parallel Learning Structures 6.7 A Normative ± Re-educative Strategy of Changing 6.3 Systems Theory 6. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs.3.

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

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

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

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

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

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

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

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

6.Fig. and shows how systems theory enhances the practice of OD. which views organizations as open systems in active exchange with their environment.4: Organizational Work-Setting Factors This model is extremely useful for OD practitioners and organizational leaders. Keep this framework in mind as you read the units on OD interventions because all interventions target one or more factors shown in figures. 6. and Katz and Kahn were the first to apply open systems theory to organizations in 1966.5: A Change-based Organizational Framework 6. Systems . Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950.3 Systems Theory A second foundation of organization development is systems theory. Fig. This section explains systems theory. describes the characteristics of systems.

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

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

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

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

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

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

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

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

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

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

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

Self Assessment Questions . 6. perhaps more accurately. Action research is especially well-suited for planned change programs. Action research is a method that combines learning and doing ± learning about the dynamics of organizational change. form of applied behavioural science. and action planning based on the data.Fig. and research leading to social action« This by no means implies that the research needed is in any respect less scientific or "lower" than what would be required for pure science in the field of social events. Kurt Lewin. represent contributions from pure or basic science. feedback of the data to the client system members. It is a type of action-research. Taken separately. a comparative search on the conditions and effects of various forms of social action. 6.´ Concluding Comments: These foundations of organization development form the theoretical and practice underpinnings of the field.9 Action Research The action research model ± a data-based. problem-solving method that replicates the steps involved in the scientific method of inquiry underlies most OD activities. who developed the concept of action research. I am inclined to hold the opposite to be true. it is a program of applying behavioural science to organizations. and doing or implementing change efforts. behavioural science research and two behavioural science theory. represent contributions from applied science. practice research and practice theory. they constitute the beginning of a theory of organization development and change that has enormous potential for improving organizational performance and individual development. 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. Taken collectively. each is a powerful conceptual tool for thinking out and implementing change. the two top in puts. had this to say about it: ³The research needed for social practice can best be characterized as research for social management or social engineering. The two bottom inputs.

1. 4. Transactional change . _____________ means sum of the efforts of team members is far greater than the sum of individual efforts of members. 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. ³Work teams are building blocks of organizational development. A _____________ is defined as ³a set of elements standing in interaction. OD interventions alter features of the work setting causing changes in individuals¶ behaviours. Ralph Kilmann specified the critical leverage points for organizational change. Action research model combines learning and doing. Unfreezing 2. 4. 6. In parallel learning structures members have to think and behave in ways that are different from the normal roles and rules of the organization. Systems theory views organizations as open systems in active exchange with their environment.10 Summary The foundations of organizational development form the theoretical and practice underpinnings of the field. The Burke-Litwin model emphasized on first-order and second-order change. First²order change is also called ___________. ±±±±±±±±±± means moving to new level of behaviour. 6. Explain Kurt Lewin¶s models and theories of planned organizational change.11 Terminal Questions 1. 2. 6. 3.12 Answers to SAQs and TQs SAQs: 1. Ralph Kilmann 3. which in turn lead to individual and organizational improvements is the principle of Porras and Robertson model organizational change. ±±±±±±±±±± gave the model ³Beyond the Quick Fix´. What are first-order and second order change according to Burke-Litwin Model of organizational change? Explain. Bring out the essence of ³managing beyond the quick fix´ model of organizational development. 3. A fundamental belief in OD is that work teams are the building blocks of organizations. What are the features of systems theory of organizational development? 5. 2.´ 5.´ Comment on this statement.

1 2.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .2.2 Characteristics of Organization Culture 7.2 3.4 Organization Culture and Effectiveness 7.2. MU0002-Unit-07-Organization Culture and Climate Unit-07-Organization Culture and Climate Structure: 7.5 Developing and changing Organization Culture Self Assessment Questions 7.3 4. 7. Refer section 6. Synergy Answers to TQs: 1.1 Introduction Objectives 7.2.3 Types of Organization Culture. Refer section 6. Refer section 6. Refer section 6.Refer section 6.3 5.4. System 5.6 Summary .

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

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

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

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

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

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

Effectiveness of an organization can be increased through economic man approach and administrative man approach.8 Answers to SAQs and TQs SAQs: 1. 7. Artifacts 2. intervening variables and end-result variables and there exists interrelationship among these variables. Discuss the development and change of organizational development. Stay the course by being persistent. Causal variables Answers to TQs: . 9. 3. effectiveness through adaptive-coping cycle has been discussed. Organizational effectiveness can be measured through various approaches. Factors in organizational effectiveness include casual variables.6 Summary Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. system-resource approach. Market 3. 7. ___________are those factors that influence the course of development within an organization and its results or accomplishment. Finally. 2. and strategic constituencies approach. 7. Self Assessment Questions 1. 2. are particularly driven by results and are often very competitive. Move quickly and decisively to build momentum and to defuse resistance to the new culture. _____are the visible manifestations of culture as seen in the physical and social environment of the organization. ________cultures are outward looking. Explain the characteristics of organization culture.8.7 Terminal Questions 1. 3. Organizations to be successful must be efficient and effective. Briefly explain different types of organizational culture.goal approach. behavioural approach.

Power.6 The Role of Power and Politics in the Practice of OD 8.1.3 Two Faces of Power 8.2 2.4 Theories about the Sources of Social Power 8.5 Organizational Politics Defined and Explored 8.2 Power Defined and Explored 8. Politics and Organization Development Structure: 8.3 3. Refer section 7.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 7. MU0002-Unit-08.10 Terminal Questions .8 Acquiring and using Power Skills Self Assessment Questions 8. Refer section 7. Politics and Organization Development Unit-08.9 Summary 8.1 Introduction Objectives 8.7 Operating in a Political Environment 8.Power.

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

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

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

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.

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

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

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

) Position power derives from five sources: Centrality-access to information in a communication network. even those of little power. ³One of the most important ways of gaining power in an organization is by establishing a broad network of task and interpersonal relationships. then utilize a facilitative OD process in which the powerholders work on strategic business issues using consensus decision making to develop a corporate strategy. a person¶s power comes from two main sources. effort. In this model. This practical. Whetton and Cameron¶s model is shown in following figure. 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´. which in turn will protect the interests of all concerned.Personality y y y Going Around Formal System · Work around roadblocks · (Don¶t) use organization rules Charisma Reputation Professional credibility Finally. Indeed. and legitimacy. in turn. how-to book on power and organization development is well worth studying. and relevance-how important one¶s task is in relation to organizational priorities. personal power and position power. 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. 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. The power structure will realize that collaborative power is preferable to manipulation and deception. Networks are critical to effective performance for one compelling reason: Except for routine jobs. personal attraction. visibility-how much one¶s work is seen by influential people. 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. Personal power. . influence key powerholders to accept the OD program. criticality-how important one¶s job is flexibility-the amount of discretion in the job. arises from expertise.

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

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

3 Socio Technical Systems 9. Refer section 8.6 Quality of Work Life Projects .4 3. Refer section 8. Personality Answers to TQs: 1.1 Introduction Objectives 9.5 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 8.5 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 Meaning and Definitions 9.4 Management By Objectives 9.Refer section 8.2 2.6 5. Refer section 8.5.

10 Summary 9. · Discuss the parallel Learning Structures. . In this dynamic and fluid environment. you will be able to: · Explain the Socio technical change. 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. organizational problems may repeat. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design. actions.7 Parallel Learning Structures 9. events intended to help an organization improve its performance and effectiveness.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. · Explain Reengineering. Objectives: After studying this unit. These interventions vary from standardized program that have been developed and sometimes tailored program. 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.8 Total Quality Management 9. These programs are derived from careful diagnosis. Nothing is permanent except change because change is permanently changing.9. An organization development intervention is a sequence of activities.12 Answers to SAQs and TQs 9.9 Reengineering Self Assessment Questions 9.11 Terminal Questions 9. These methods are receiving increasing attention in Organization Development. · Explain Total Quality Management. · Discuss the Management By Objectives · Explain the Quality Circles.

Advantages of Structural Interventions There are a number of reasons why a consultant should consider employing a structural intervention. Cost is Low. One problem with behavioral/ group interventions is the tendency for new managers or employees to discount or fail to continue the change program. It endeavors to re-design the organization¶s structure. 9. Once diagnosed and an appropriate correction developed. Greater Predictability. includes removing or adding layers to hierarchy. Structural changes are consistent with their operating styles and are generally understood by practitioners. This normally is a reasonable. processes and functions to create a balance between the organization and its changing external environment. Changes can involve decentralization and centralization. Pasmore. Downsizing associated with restructuring.2 Meaning and Definitions Structural Intervention is related to the changes that relate elements of organization to one another. The cost of structural change is generally ³front-end´ loaded. From a benefit cost analysis. 2. Succession Doesn¶t Destroy Change Effort. their attractiveness is also increased by the following advantages: 1. Cummings. Structure changes are normally ³institutionalized´ and less subject to this problem. 3. Basic reinforcement theories. 1988): ‡ Determining the environmental demands ‡ Creating a vision statement ‡ Educating organizational members . meaning the major costs are associated with analysis and design of change. organization theory. Organization Acceptance of Change. change can be introduced relatively rapidly by top management. It could involve the following steps (Foster. 4. 1976. Rapidity of change. In addition. Weeks and months of group effort are saved. a predictable cost Implementation of group strategies involves significant long-term man-hour and consultant costs.9. and more critically. Managers and administrators are notoriously pragmatic. 1967.3 Socio Technical Systems Socio-technical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. structural Interventions compare quite favorably with all other alternatives. 5. and OD practice enables the change agent to estimate the probable consequences of the change.

consciously directed towards the effective and efficient achievement of organizational objectives. though not strictly an OD intervention in the sense in which other interventions have been discussed so far. Since then. its features can be identified as follows: 1.4 Management by Objectives Management by objectives (MBO). Though there are some variations in the practices of MBO and. MBO is bound to have some relationship with every management technique. its definitional aspect. MBO is an approach and philosophy to management and not merely a technique. It is a particular way of thinking about management. many business and nonbusiness organizations have adopted this in some form or the other. A management technique can be applied in selected parts of the organization and will have limited implications for its other parts. non-specialist. 2. Its basic idea has been derived from the concept of participative goal setting as a technique of OD. with objective orientation as its essence. therefore. On the other hand. Certain degree of overlapping is there. operational managerial process for the effective utilization of material. The term MBO was coined by Drucker in 1964 when he emphasized the concept of managing by results. it has been defined as follows: MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. often MBO provides the stimulus for the introduction of new techniques of .´ Based on the definition of MBO. MBO is likely to affect every management practice in the organization. and human resources of the organization by integrating the individual with organization and organization with the environment. In fact.´ 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. As an approach to management. MBO employs several techniques but it is not merely the sum total of all these techniques.‡ 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. physical. is a technique and system which helps in improving organizational performance.

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

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

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

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

Discuss Socio Technical Systems? 2. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. ties reward to performance and increase workers knowledge and skills through extensive training.1. events intended to help an organization improve its performance and effectiveness. An organization development __________ is a sequence of activities. MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner.12 Answers to SAQs and TQS SAQs: 1. Drucker 3. TQM pushes decision making power downwards in the organization. events intended to help an organization improve its performance and effectiveness. Write a short note on Total Quality Management. Quality circle Answers to TQs: . 9. What are the advantages of structural interventions? 3. structural Interventions compare quite favorably with all other alternatives. Intervention 2. Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement. actions. 9. actions. consciously directed towards the effective and efficient achievement of organizational objectives. From a benefit cost analysis. __________ represents a participative approach to employee involvement in problem solving and productivity improvement. Sociotechnical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. 2. The term MBO was coined by _________ in 1964. 3.10 Summary An organization development intervention is a sequence of activities. There are a number of reasons why a consultant should consider employing a structural intervention. provides relevant information to all employees.11 Terminal Questions 1. It is also called continuous quality improvement. 9. Explain Management By Objectives? 4.

3 Resistance to Change 10. Refer section 9.Refer section 9.8 Terminal Questions 10. MU0002-Unit-10-Managing Change in Organization Development Unit-10-Managing Change in Organization Development Structure: 10.1 Introduction Objectives 10.3 2.5 4.6 Methods of Reducing Resistance to Change. Refer section 9.4 Causes for Resistance to Change. 10. Self Assessment Questions 10.5 Impact of Change on the Future Manager 10.2 3.1.7 Summary 10.2 Nature of Change 10.9 Answers to SAQs and TQs . Refer section 9.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .

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. In this dynamic and fluid environment. others. job design and people. When change occurs in any part of the organization. indirectly.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. However. organizational problems may repeat. you will be able to: · Explain the meaning of organization change. which are major ones. Objectives: After studying this unit. It implies a new equilibrium between different components of the organization ± technology. Newstrom and Davis have explained the impact of a change in any part of the organization on the total organization. Nothing is permanent except change because change is permanently changing. Hence. some parts of organization may be affected more. some changes which are of minor type may be absorbed by the existing equilibrium. or social. less. some parts may be affected directly. organizational change may have the following features: 1.10. cope with the ongoing changes successfully in the first instance.whether physical. may require special change efforts. it disturbs the old equilibrium necessitating the development of a new equilibrium. and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other. They have illustrated it by comparing an organization to an air-filled . · Discuss the nature of change · Explain resistance to change and the factors which resist change.2 Nature of Change The term µchange¶ refers to an alteration in a system. 2. structural arrangement. 10. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented). · State the methods of reducing resistance to change. Any change may effect the whole organization. · Impact of change on future managers. organizational change is the alteration of work environment in an organization. and others. Organizational change is a continuous process. Thus. The type of new equilibrium depends on the degree of change and its impact on the organization. 3. biological. Thus.

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

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.

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

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

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

When the resistance comes from the people at individual levels. rather should be looked upon as a dialogue which continues over a period of time.´ Problem of overcoming resistance to change can be handled at two levels. In many cases. managers must be more skilled at reading the environment and grasping the big picture. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. People always have some . typically by way of computer network links. For example. at the level of individual and at the level of group. the following efforts can be taken: 1. both at the formal and informal levels. that is. In addition. More fluid structures require that managers improve their strategic orientation. the problems can be solved at the same level. even the impact of change may be dysfunctional if change is imposed upon the people by the use of formal authority. this is not a one-time action. It implies explanation and then discussion of the proposed changes. through group dynamics. It includes finding out from the members how they interpret the proposed changes and what they think about them. 10.6 Methods of Reducing Resistance to Change One of the basic problems in managing change is to overcome people¶s resistance to change successfully. the role of formal authority in implementing a change may not be effective all the times. Efforts at Individual Level A change is likely to affect some people in some way. Involvement: Involvement is a process through which those who are affected by the change are brought to understand the change. Unless this problem is overcome properly. The fundamental idea in this process is to encourage the person to say something about any aspect of the change. it can make effectively by managing resistance effectively.´ The newer organizational structures use term problem solving. For this purpose. They need to be adept at reading the trends in the environment and then determining what they mean specifically for their own organization. This requires that managers think differently and teach employees to think differently. However. 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. strategic directions for the company must be identified in light of these changes. Therefore. the effect of the change may not be as functional as envisaged by the management. Problem solving now involves the people who are experts in the issue ± not necessarily those in high positions in the organization.ultimate goal is to improve organizational performance by cutting production time or time to market. Locavini observes that ³the secret of real success is effective management of the emotional vulnerability that accompanies organizational change. Stephen Robbins suggests that ³«« managers in virtual structures spend most of their time coordinating and controlling external relations. It may affect only a few while others may not be affected. As organizations must be better equipped to respond to change in their external environment.

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

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

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

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

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