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

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

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

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

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

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

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

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

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

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

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

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

operative workforce for the execution of plans. making strategic plans to deal plans and policies of the effectively with the organisation.e. counseling and effective leadership. Managers perform different roles to discharge their responsibilities. middle and lower. 2. It is the management which transforms physical resources of an organization into productive resources. 1. i. lower levels of management. machinery and methods or ways of doing things) depends to a great extent on the quality of management. co-ordinating. organisations. 7. Management is largely found at the middle and lower levels and administration is found at the higher levels. Define management. There are three levels of management-top.8 Summary Management is concerned with getting things done through other people. Lower level managers require and use a greater degree of technical skill and managers at higher levels use a greater degree of conceptual skill. Explain its characteristics. Management creates ________ and motivates employees to work harder and better by providing necessary guidance. public organisations in the private sector and non-business sector. 8. Environment Administration has direct Management is mainly interaction with external concerned with internal environment of business and forces. 5. motivating and controlling the efforts of others towards a specific objective. Five M¶s of management (________. . administrative decisions. 1. DecisionMaking Administration determines Management decides who what is to be done and when it shall implement the is to be done. 6. _________. 3.9 Terminal Questions 1. Still management is not completely a profession. Usage of Term The term µadministration¶ is The term µmanagement¶ is often associated with widely used in business government offices. ___________. objectives.4. Status Administration refers to Management is relevant at higher levels of management.. __________is principally the task of planning. environmental forces. Direction of It is concerned with leading It is concerned with Human Resources and motivation of middle level leading and motivation of executives. Self Assessment Questions 1. Human skills are important at all managerial levels.

Management 2. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.5 3.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .3 2. Refer section 1.3 Planning 2.1. 3. materials.2 Process of Management 2. Refer section 1. manpower 3. teamwork Answers to TQs: 1.10 Answers to SAQs and TQs SAQs: 1. Money.1 Introduction Objectives 2.4 Organizing . 1. Discuss the importance of management.2. Bring out the difference between Administration and Management.2. Refer section 1.

6 Directing 2. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent.2. Motivating. Organizing 3. Controlling However.9 Terminal Questions 2. Organizing.10 Answers to SAQs and TQs 2.1 Introduction Follett (1933) defined management as "the art of getting things done through people´.5 Staffing 2. Staffing. 1949): 1. as the action of measuring a quantity on a regular basis and of adjusting some initial plan. · Explain different functions of management Process. . Coordinating 5. Directing. Planning 2. you will be able to: · Define Management process. in recent time. · Explain Planning. Objectives: After this studying this unit. Management functions are as follows (Fayol. management functions have been regrouped into four categories. Commanding 4.7 Motivating Self Assessment Questions 2. One can also think of management functionally.8 Summary 2.

2 Management Process Peter Drucker said: ³Management is doing things right. policies are the means to achieve those ends. thus. planning is often referred to as strategic in nature and also termed as strategic planning. and allocating resources. Through leadership and management often overlap. a process in which one chooses a course which one thinks is the best. 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. should precede a good deal of research involving market surveys. what distinguishers policies form objectives is that you first decide the objective. cost structure and so on. Objectives are the ends.3 Planning It involves the process of defining goals. The tasks of the strategic planning process include the following steps: Define the mission: . establishing strategies for achieving these goals. driving comfort. However. Even so. leadership is doing the right things³. Therefore. Planning in order to be useful must be linked to the strategic intent of an organization. general strategies. In the football field. Planning also enhances the decisionmaking process. Every organization needs to plan for change in order to reach its set goal. You might well ask what the need for a policy is when objectives are already defined. studies on passenger comfort. and then set out the method for achieving it. There is a degree of overlap between the two. kicking the ball with the left foot or right foot is a reflex action. or where you want go to. Effective planning enables an organization adapt to change by identifying opportunities and avoiding problems. overall goals. the decision to change the design of a product. fuel and machine efficiency. Policy Formulation We have noted earlier that all organizations have well-defined goals and objectives. 2.2. it is not a decision in which any process is involved. say a passenger car. and developing plans to integrate and coordinate activities. Management is about accomplishing a goal efficiently. It is difficult to say where objectives end and policies begin. Decision ± Making Taking decisions is a process. It provides the direction for the other functions of management and for effective teamwork. the two are not quite the same. All levels of management engage in planning in their own way for achieving their preset goals. it would be correct to assume that an objective is what you want to accomplish. 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. leadership is about setting the desirable goals. while a policy.

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

Are our rivals weak? 5. What is the strength of the economy? 4. The SWOT analysis is used as a baseline for future improvement. Benchmarking systematically compares performance measures such as efficiency. Objectives are also called performance goals. In which areas is the competition not meeting customer needs? 2. Is there a shortage of resources? 4. It also helps in setting minimum acceptable standards or common-sense minimums. Is there a possibility of growth of existing market?) Identifying threats involves the following: 1.1. Are there new competitors? 3. the best strategy is one that fits the organization¶s strengths to opportunities in the environment. Comparing the organization to external benchmarks (the best practices) is used to assess current capabilities. What are the new regulations? 6. Are market tastes changing? 5. Generally. They are aligned with the mission and form the basis for the action plans of an organization. What are the emerging technologies? 6. In which areas does the competition meet customer needs more effectively? 2. Develop related strategies (tactical and operational) . earnings per share. etc. What substitute products exist? In general terms. return on investment. What are the possible new markets? 3. organizations have longterm objectives for factors such as. or outcomes of an organization against similar measures from other internal or external organizations. effectiveness. Set goals and objectives Strategic goals and objectives are developed to fill the gap between current capability and the mission. as well as gap analysis.

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

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

management initiates actions in the organization. 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. recruitment. Thus staffing is an ongoing process through ± out the life of an organization.e. Direction function is performed at every level of management. it aims at getting things done by subordinates and. to provide superiors opportunities for some more important work which their subordinates cannot do. A manger needs to give orders to his subordinates. 5. overseeing and leading people. directing is the ³interpersonal aspect of managing by which subordinates are led to understand and co-ordinate effectively and efficiently to the attainment of enterprises goals´. how to do and telling them to do to the best of their ability. 8. lead them and guide them on a continuous basis. Direction is an important managerial function. 7. on the other. It is instructing people as to what to do. promotion. selection. 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. induction. resignation. 3.6. Direction has dual objectives.6 Directing Direction is one of the functions of management. It emphasizes that a subordinate is to be directed by his own superior only. 2. training development and maintenance of personnel. Definition According to Koontz and O¶Donnel. Through direction. 2. It is a continuing function. etc. 4. Direction imitates at the top level in the organization and follows to bottom through the hierarchy. It is a process: it is a process having a logical sequence i. It is an important managerial function. . motivate them. Direction is the managerial function of guiding. identifying the manpower requirements. vacancies arise out of retirement. On the one hand. Characteristics of Direction The characteristic features of direction are as follow: 1. Direction is continuous process and it continues throughout the life-time of the organization.

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

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

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

6 OD and Management Development 3. Staffing Answers to TQs: 1.1 Introduction Objectives 3.4 Categories of OD 3. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3.5 3.3 Characteristics of OD 3.1. Reference 2.7 Role of OD 3.2 Definitions 3. Reference 2.5 Goals of OD 3.3 2.6 Copyright © 2009 SMU Powered by Sikkim Manipal University . SWOT 3. Reference 2. Follett 2.8 Problems in OD .

conflict resolution. strategy formulation and implementation. organization development is a process of teaching people how to solve problems. and the organization¶s human and social processes. take advantage of opportunities. Organizations face multiple challenges and threats today ± threats to effectiveness. organization structure. adapt.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. Early returns were encouraging. Today. fighting obsolescence of one¶s knowledge and skills. And organization development (OD) is one of them. Organization development is a relatively recent invention. organizations and the individuals in them face an enormously demanding present and future. Simple survival ± continuing to have an adequate job ± is a major challenge today in the light of constant layoffs and cutbacks. Individuals in organizations likewise face multiple challenges ± finding satisfaction in and through work. Are any strategies available to help people and organizations cope. organization development represents one of the best strategies for coping with the rampant changes occurring in the marketplace and society. We predict that organization development will be preferred improvement strategy in future. A variety of solutions exists.9 Summary 3.10 Terminal Questions 3. 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. and even prosper in these vexing times? Fortunately. Although new jobs are being created at record rates. efficiency.11 Answers to SAQs and TQs 3. In summary.Self Assessment Questions 3. and learn how to do that better and better over time. Keeping organizations healthy and viable in today¶s world is a daunting task. . maintaining dignity and purpose in pursuit of organizational goals. and attention was soon directed toward other human and social processes in organizations such as the design of work tasks. 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. and the like. and changing customer demands. and profitability. OD focuses on issues related to the ³human side´ of organizations by finding ways to increase the effectiveness of individuals. and achieving human connectedness and community in the workplace. culture. teams. ³Knowledge´ work is replacing ³muscle´ work. and the constant challenge to maintain congruence among organizational dimensions such as technology. the answer is ³yes´. old jobs are being destroyed at an accelerating pace. challenges from turbulent environments. increased competition. strategy. survive. and processes. Basically.

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

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

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

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

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

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

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

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

Thus. horizontally. Much of the enthusiasm created at the beginning of OD programmes vanished over the period of time. Focus on design. Train and equip employees and managers to perform better in existing organization. To treat each human being as a complex person with a complex set of needs important in his work and his life. No special requirement. has invited sharp criticism as a strategy to increase organizational viability and effectiveness because many OD programmes have failed. focus on achieving improvement in design. By 70s. OD became quite successful with many professional consultants offering high services and programmes to various organizations. To increase the level of trust and mutual emotional support among all organization members. however. OD can be utilized for the following results in the organization: 1.7 Role of Organization Development Organization development. not on the managers. however. substantial disenchantment with OD became evident because of many controversial OD techniques like sensitivity training. To place emphasis on humanistic values and goals consistent with these vales. 3. .8 Problems in Organization Development Organization development. 2. To create an environment in which authority of assigned role is augmented by authority based on knowledge and skills. To increase the level of self and group responsibility in planning and its implementation. 3.Focus Approach Time Specialist accomplishments. Since OD attempts to bring comprehensive change in the organization. 5. Trained specialists required. In early 60s. as a long-term strategy for organizational change. Educative and training Short-range. Long-range strategy for organizational innovation and renewal. Problem-solving approach. To increase the level of enthusiasms and personal satisfaction at all levels of the organization. and laterally. plays key role in organizational improvement. To increase the openness of communications in all directions-vertically. 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. 7. it is quite suitable for improving organizational performance on long-term basis. 4. 6. 3.

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

Empowerment 4. But OD aims at changing the entire organizational climate where the managers work. _____________is a short-term strategy. 3. ±±±±±±±±± is a process which includes leadership behaviours and human resource practices.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. problem-focused µnature of OD¶ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. 3. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. Explain the various characteristics of OD.10 Terminal Questions 1. collaborative. Define OD. Organization development should be led and supported by ±±±±±±±. Management development aims at developing the managers individually.11 Answers to SAQs and TQs SAQs: 1. OD is the ultimate remedy for organizational improvements and developments. Explain its salient features. Who is associated with the ³Learning Organizations´? 5. Tom Peters 3. Distinguish between µorganizational development¶ and µmanagement development¶. 3. 4. There is no µquick fix¶ to organizations¶ problems. OD focuses on culture and processes. 3. The participative.1. State the various roles of OD. 5. ±±±±±±± is associated with ³Liberation Management´. Peter Senge . 2. Top management 2. What are the problems involved in the implementation of OD? 3. 2. 4.

8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 3.5 Leadership Development 4.6 4.3 Process Consultation 4.5.3 3. MU0002-Unit-04. Refer section 3.Organization Development ± Interventions Structure: 4.6 Team-building . Refer section 3. Refer section 3.4 Grid Training 4. Refer section 3.2 2. Management development Answers to TQs: 1.1 Introduction Objectives 4.7 5.2 Survey Feedback 4.Organization Development ± Interventions Unit-04.

French and Bell have suggested twelve families of OD interventions: diagnostic.11 Terminal Questions 4.7 Inter Group Development 4.9 Role of Change Agents Self Assessment Questions 4. For example. process consultation. 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. inter-group level. Nevertheless. management grid. However. Thus. Therefore. they make things happen. and survey feedback method. techno-structural activities. Further.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. and organizational culture.10 Summary 4. the classification of OD interventions shows variation.4. grid training. many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others. 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. team-building. OD efforts were attempted through sensitivity training. such a classification of interventions may not put them into mutually exclusive categories as a particular intervention may be applied at more than one level. interpersonal level. and organizational level. interventions may be required to change people at all these levels. Historically. education and training.8 Change Agents 4. group level. work group. mediation and negotiation activities. inter-group activities. Subsequently. survey feedback. People¶s behaviour may be relevant to understand at individual level. French and Bell have defined OD intervention as: ³Sets of structured activities in which selected organizational units (target groups or individuals) engage with a task or a sequence of tasks where the task goals are related directly or indirectly to organizational improvement.12 Answers to SAQs and TQs 4. other techniques like process .´ There are various OD interventions and they are classified in different ways. Interventions constitute the action thrust of organization development. 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.

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

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

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

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

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

This phenomenon may happen in teams in work organizations too. and still expect to share the credit and obtain the same marks from the professor since he will be concerned with determining who worked and who did not. the team would be effective. For example. that is. Dropping of average output in group efforts indicates that some members of the group were not contributing as much as they did individually. 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. They rely on the fact the more reliable members will complete the project without their help. Putting the concept of synergy in teamwork means members of the team are complementary to each other and they contribute positively to one another. the complementarity among members is achieved. From this statement. goals. 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. and so on. it appears that there are many . team-work does not necessarily spurt group efforts. 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. The possibility of occurring of social loafing in a team-work increases because of the following reasons: 1. we have mentioned that team effectiveness depends on the complementarity of team members.6 pound of pressure while tugging on the rope. other factors remaining the same.Thus. They averaged 138. individual members do not contribute to the fullest extent. the individual average dropped down still lower-68. In such an assignment. In the above paragraph. A simple phenomenon of social loafing may be observed in a group assignment to students during their study. 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. To the extent. students find that one or two students do not put their weight for the completion of the project. other factors remaining the same. how a particular element affects another and is affected by it. group efforts tend to slacken. in one experiment. fail to perform their assigned tasks. synergistic effect is not automatic but depends on the complementarity of different elements that are put together and the way they interact among themselves. 2.2 pounds. Individuals were asked to pull alone as hard as possible on a rope attached to a strain gauge. When the division of work cannot be accomplished properly and individual efforts are hard to determine. group of eight. it was found that individuals¶ total efforts were much higher than the group efforts. When the same individuals pulled on the rope of groups of three. a team is created to undertake a task which requires a variety of skills and single individual cannot perform that task alone. The phenomenon of social loafing can be minimized by constituting effective team for group performance. and attitudes. In fact.

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

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

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

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

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

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

and Beliefs in Organization Development Structure: 5. What is team-building? What are the stages of life cycle of a team? 4. Refer section 4. Data collection 2.2. What is survey feedback as an intervention of OD? How does it provide base for other OD interventions? 3. Assumptions. Refer section 4. Assumptions.4 2. Refer section 4. 4.6 4. 3.1 Introduction . Blake and Mouton.2 3. Social loafing Answers to TQs: 1.12 Answers to SAQs and TQs SAQs: 1. MU0002-Unit-05-Values. Explain Change agents and discuss the role of change agents in detail. Refer section 4. and Beliefs in Organization Development Unit-05-Values.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .

7 Terminal Questions 5.5 Implications of OD Values and Assumptions 5.Objectives 5. · Give the statement of OD values and assumptions.2 Implications for Dealing with Groups 5. shaping the goals and methods of the field and distinguishing OD from other improvement strategies. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers.5.1 Introduction A set of values. and beliefs constitutes an integral part of organization development.5.1 Implications for Dealing with Individuals 5. beliefs and assumptions. you will be able to: · Explain the meaning of values. beliefs and assumptions.5. · List the chronology of events of values.3 Implications for Designing and Running Organizations 5. 5. Most of these beliefs were formulated early in the development of the field.6 Summary Self Assessment Questions 5.4 Early Statements of OD Values and Assumptions 5.8 Answers to SAQs and TQs 5. and they continue to evolve as the field itself evolves. assumptions. · State the implications of OD values and assumptions.2 Definitions 5.3 Chronology of Events in Management and Organization Thought 5.2 Definitions . Objectives: After studying this unit.

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

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

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

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

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

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

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

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

Self Assessment Questions 1. _______________ gave theory X and theory Y. These beliefs help to define what OD is and guide its implementation. 5. Values are also beliefs. beliefs. Values. 3. Taylor¶s principles of scientific management. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. assumptions and beliefs help to define what OD is and guide its implementation. 4. OD values tend to be humanistic. The outcome of ±±±±±±±± was that people were not cogs and organizations were not machines. and assumptions are all ±±±±±±±±±± facts. but are widely accepted today.8 Answers to SAQs and TQs SAQs: 1.7 Terminal Questions 1. 2. beliefs and assumptions are cognitive facts. Values. Cognitive .W. optimistic and democratic. What was the outcome of Hawthorne Experiments? 4. A belief is a proposition about how the world works that the individual accepts as true. beliefs and assumptions. Values. 2. 3. values.The field of organization development rests on a foundation of values and assumptions about people and organizations. The concept of ±±±±±±±±±± was introduced by MaxWeber. __________ is associated with scientific management. Chronology of events in management and OD tremendously influenced OD practitioners. 5. This discussion was intended to articulate an appreciation of OD values and explain where they came from. Write a note about F. 5. Define concepts. 5. State the assumptions of Theory X and Theory Y.6 Summary The field of OD rests on a foundation of values and assumptions about people and organizations. These OD values were considered revolutionary when they emerged in the 1950s.

W. Refer section 5. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6. Refer section 5.2 Beyond the Quick Fix . Hawthorne experiments 5.3 3.2 2.2 Models and Theories of Planned Change 6.3 Copyright © 2009 SMU Powered by Sikkim Manipal University . Bureaucracy 4.1 Kurt Lewin and Friends 6. Refer section 5. Douglas McGregor Answers to TQs: 1. Refer section 5.3 5.3 4.2. Refer section 5. F.2.1 Introduction Objectives 6.2. Taylor 3.

3 Systems Theory 6. you will be able to: . you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning.2. In this discussion.5 Teams and Teamwork 6.1 The Nature of Systems 6.6 Parallel Learning Structures 6.6.2.10 Summary 6.3.3 The Burke-Litwin Model of Organizational Change 6.2 Congruence among System Elements 6. Objectives: After studying this unit.3 Socio-technical Theory and Open Systems Planning 6. art and science which form the knowledge base upon which OD is constructed.3.3.1 Introduction This unit describes the foundations of organization development theory and practice. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs.3.8 Applied Behavioural Science 6.9 Action Research Self Assessment Questions 6.11 Terminal Questions 6.4 Participation and Empowerment 6.4 Porras and Robertson Model of Organizational Change 6.4 Open Systems Thinking 6.7 A Normative ± Re-educative Strategy of Changing 6.12 Answers to SAQs and TQs 6.

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

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

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

Change programs take from one to five years to complete. This model has five sequential stages: 1) Initiating the program. 4) Implementing the "tracks" 5) Evaluating the results. Similar models have been developed by Kolb and Frohman and by Burke. These "road maps" are useful for thinking about change. Kilmann¶s five tracks are: 1) The culture track. and so forth. critique practices and procedures. Interventions include training programs. and 5) The reward system track. when functioning properly. cause the organization to be successful. Kilmann describes the five tracks: What does each track do for the organization? . 6.2. 4) The strategy-structure track." that. 3) The team-building track. 3) Scheduling the "tracks". Diagnosing the problems requires a thorough analysis of the problems and opportunities facing the organization. These problems and opportunities will be the targets of later interventions. Scheduling and implementing the "tracks" involve intervening in five critical leverage points. called "tracks. 2) The management skills track. Initiating the program entails securing commitment from top management.This seven-stage model lays out the logical steps involved in OD consulting. 2) Diagnosing the problems. problem-solving sessions.2 Beyond the ³Quick Fix´ A comprehensive change model by Ralph Kilmann specifies the critical leverage points for organizational change.

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

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

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

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

Systems . Keep this framework in mind as you read the units on OD interventions because all interventions target one or more factors shown in figures. This section explains systems theory.Fig.4: Organizational Work-Setting Factors This model is extremely useful for OD practitioners and organizational leaders. and shows how systems theory enhances the practice of OD. 6.5: A Change-based Organizational Framework 6. Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950. describes the characteristics of systems. Fig.3 Systems Theory A second foundation of organization development is systems theory. 6. which views organizations as open systems in active exchange with their environment. and Katz and Kahn were the first to apply open systems theory to organizations in 1966.

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

Survival of the system is equally influenced by whether or not the targets themselves are appropriate. Feedback is information from the environment about system performance. Positive feedback comes from the environment.Fig. For example. 6. and makes a course correction." Here is another example of negative and positive feedback. Say your company makes buggy whips. and so on. it receives information to that effect in the form of negative feedback. It is also known as deviation-correcting feedback. while screening out other information. but most are not useful. it will signal whether the environment needs and/or wants buggy whips. and the like. By the same token. Positive feedback measures whether or not the purpose and goals are aligned with environmental needs. aerospace. Systems require two kinds of feedback. Organizations achieve negative entropy when they are able to exchange their outputs for enough inputs to keep the system from running down. say. "return to earth. For example. mining. Information is important to systems in several ways. It is sometimes called deviationamplifying feed back. If the mission (target) changes. that information is called positive feedback.6: A System in Interaction with its Environment The law of entropy states that all systems ³run down´ and disintegrate unless they reverse the entropic process by importing more energy than they use. however. organizations in the fast-food industry pay a lot of attention to information about their industry-nutrition. and the production plan calls for 100 buggy whips per month. if a rocket ship traveling to the moon strays off its trajectory. negative and positive. . Systems "code" useful information and incorporate it. they usually ignore information about other industries such as electronics. Negative feedback tells you if you are on track with your scheduled production output. eating fads. Negative feedback measures whether or not the output is on course with the purpose and goals. and the system adjusts to a new goal. competitors. The usefulness of the two concepts is that they demonstrate that it is not enough to merely measure our outputs versus the intended targets. Systems are bombarded by all kinds of information: some are useful.

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

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

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

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

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

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

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

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

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

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

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

3 Types of Organization Culture.2 3.3 5. System 5.4 Organization Culture and Effectiveness 7. Synergy Answers to TQs: 1. Refer section 6. Refer section 6.5 Developing and changing Organization Culture Self Assessment Questions 7.2.1 Introduction Objectives 7.6 Summary .2.3 4.2 Characteristics of Organization Culture 7. 7.2.1 2.4. Refer section 6.Refer section 6.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . MU0002-Unit-07-Organization Culture and Climate Unit-07-Organization Culture and Climate Structure: 7. Refer section 6.

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

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

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

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

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

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

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

1.Power.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .6 The Role of Power and Politics in the Practice of OD 8.2 Power Defined and Explored 8.10 Terminal Questions . Refer section 7.3 Two Faces of Power 8. Politics and Organization Development Structure: 8.5 Organizational Politics Defined and Explored 8.2 2. MU0002-Unit-08.7 Operating in a Political Environment 8.Power. Politics and Organization Development Unit-08.1 Introduction Objectives 8. Refer section 7.4 Theories about the Sources of Social Power 8.9 Summary 8.8 Acquiring and using Power Skills Self Assessment Questions 8. Refer section 7.3 3.

indisputable facts of organizational life. Objectives: After this studying this unit.¶ To have power is to be able to get desired things done.1 Introduction Power and politics. and behaviours of people. The French word µpouvoir¶ stands for both the noun µpower¶ and the verb µto be able. we examine power and politics in relation to organization development.´ Organization development has been criticized for not taking into account power in organizations. must be understood if one is to be effective in organizations. Potential power is the capacity to do so. you will be able to: · Define power and politics in organizations. · Acquire skills to handle power and politics in organizations. 8. power must be exercised." ³Power is the ability of those who possess power to bring about the outcomes they desire. but kinetic power is the act of doing so." ." "Power is defined in this unit simply as the capacity to effect (or affect) organizational outcomes. One person exerts power over another to the degree that he is able to exact compliance as desired. 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. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics. As Warner Burke observes: "Organization development signifies change. · Explain the role of power and politics in the practice of OD. One goal of this unit is to advance our understanding of the role of power in OD and the role of OD in a power setting. · Explain theories about the sources of power.´ ³A has power over B to the extent that he can get B to do something that B would otherwise not do. emotions.11 Answers to SAQs and TQs 8.8.2 Power Defined and Explored "Power is the intentional influence over the beliefs. That criticism was essentially correct for many years although it is less valid today. and for change to occur in an organization.actions and the decisions that precede them. to effect outcomes. In this unit.

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

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

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.

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

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

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

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

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

3. Strategic-contingency model of power asserts that power that accrues to the individuals. Describe briefly various theories of power. Organizational politics is defined as the study of who gets what. 2. Identify the bases of individual power and the respective strategies for their success.. 4. McClelland 3. reputation and professional credibility.10 Terminal Questions 1. emotions or behaviour of people. when and how. Power 2.11 Answers to SAQs and TQs SAQs: 1. _____________ has identified two faces of power. Power based on the power-receiver having identification with the power holder is called ±±±± ±±±±±±±.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. 3. units or departments is most important in solving organizational problems. when. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics.9 Summary Power and politics are inseparable facts of organizational life. Define organization politics. Harold Lasswell . ±±±±±±±± defined politics as the study of who gets what. and how. 4. 8. Referent power 4. 8. Power can be either positive or negative. ±±±±±± is the intentional influence over the beliefs. 8. arise from known conditions. Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another. 5. and are amenable to positive control. Power and politics are similar in nature. 2. Self Assessment Questions 1. Define power in an organizational context and explain types of power. ±±±±±±±±±± is made up of Charisma. Explain the role of power and politics in the practice of OD. Organizational politics involve intentional acts of influence to enhance or protect the self-interest of individuals or groups. Organizational power is the ability of those who possess power to bring about the outcomes they desire. 5.

6 5.2 Meaning and Definitions 9.6 Quality of Work Life Projects .1 Introduction Objectives 9.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 8.Refer section 8. Refer section 8.4 Management By Objectives 9. Refer section 8.3 Socio Technical Systems 9.5 4.2 2.5. Personality Answers to TQs: 1. Refer section 8.5 Quality Circles 9.4 3. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9.

· Discuss the parallel Learning Structures. Objectives: After studying this unit. organizational problems may repeat. · Explain Total Quality Management.12 Answers to SAQs and TQs 9. One important intervention technique is Technostructural interventions because these are related to technical and structural issues such as how to divide labour and how to coordinate department which is related to Restructuring organization. These programs are derived from careful diagnosis. · Discuss the Management By Objectives · Explain the Quality Circles. · Explain Reengineering. you will be able to: · Explain the Socio technical change. These interventions vary from standardized program that have been developed and sometimes tailored program. In this dynamic and fluid environment.7 Parallel Learning Structures 9.8 Total Quality Management 9. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design. . 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. events intended to help an organization improve its performance and effectiveness. An organization development intervention is a sequence of activities. These methods are receiving increasing attention in Organization Development.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival.9 Reengineering Self Assessment Questions 9.10 Summary 9.9.11 Terminal Questions 9. actions. Nothing is permanent except change because change is permanently changing.

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

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

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

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

The outcome of appraisal at one level is recycled to see if the objectives have been set properly at the level concerned and also at the next higher level. this approach looked both at technical and human sides of organizations and how they are interrelated. at the Tavistcock Institute of Human Relations in London. information. .6.5 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. what happens at each level may affect other levels also. QWL programs.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. Quality circle requires a managerial philosophy and culture that promotes sharing power. but in its contemporary form. The most distinguishing feature of QWL program is the development of self-managing work groups which consist of multi-skilled workers. and · Then monitor the resulting change efforts. Therefore. It Consists of a steering committee and a number of working groups that: · Study what changes are needed in the organization. appropriate feedback and employee discretion. which consequently result into high level of task variety. 9. each having three to fifteen members. It consists of small group of employees who meet voluntarily to identify and solve productivity problems.Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement. knowledge. require joint participation by union and management in the process of work-designing. on paper. it is used as an input for recycling objectives and other actions. Recycling: Though appraisal is the last aspect of MBO process. Parallel Learning Structures may be a form of Knowledge Management. Quality circle program consists of several circles.6 Quality of Work Life Based on the research of Eric Trist et al. 9. · Make recommendations for improvement. Objective setting is a joint process through interaction between superior and subordinate. The original idea of quality circles involved small groups of volunteers meeting on a regular basis. Knowledge Management involves capturing the organization¶s collective expertise wherever it resides (in databases. and rewards. 9. Some organizations have even gone as far as setting targets for the number of suggestions quality groups are expected to come up with. in general. quality groups are often compulsory and organized around specific work teams. hierarchical structure. Groups representing various levels and functions work to open new channels of communication outside of and parallel to the normal. or in people¶s heads) and distributing it to the people who need it in a timely and efficient way.

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

There are a number of reasons why a consultant should consider employing a structural intervention. Discuss Socio Technical Systems? 2. The term MBO was coined by _________ in 1964.12 Answers to SAQs and TQS SAQs: 1. Quality circle Answers to TQs: . An organization development __________ is a sequence of activities.11 Terminal Questions 1. 2. TQM pushes decision making power downwards in the organization. Explain Management By Objectives? 4. structural Interventions compare quite favorably with all other alternatives. events intended to help an organization improve its performance and effectiveness. 3. Write a short note on Total Quality Management. provides relevant information to all employees. ties reward to performance and increase workers knowledge and skills through extensive training. 9. 9. Intervention 2. Sociotechnical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. Drucker 3. events intended to help an organization improve its performance and effectiveness. Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement. actions. It is also called continuous quality improvement.1. From a benefit cost analysis.10 Summary An organization development intervention is a sequence of activities. actions. What are the advantages of structural interventions? 3. consciously directed towards the effective and efficient achievement of organizational objectives. 9. __________ represents a participative approach to employee involvement in problem solving and productivity improvement. It consists of small group of employees who meet voluntarily to identify and solve productivity problems.

Refer section 9.Refer section 9.6 Methods of Reducing Resistance to Change.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .7 Summary 10. Self Assessment Questions 10.3 2.2 Nature of Change 10.5 4.9 Answers to SAQs and TQs .8 Terminal Questions 10.2 3.3 Resistance to Change 10. MU0002-Unit-10-Managing Change in Organization Development Unit-10-Managing Change in Organization Development Structure: 10.4 Causes for Resistance to Change.1 Introduction Objectives 10. Refer section 9.5 Impact of Change on the Future Manager 10. Refer section 9. 10.1.

It implies a new equilibrium between different components of the organization ± technology. Organizational change is a continuous process. The type of new equilibrium depends on the degree of change and its impact on the organization. and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other. Thus.10. cope with the ongoing changes successfully in the first instance. Any change may effect the whole organization. Objectives: After studying this unit. some parts may be affected directly. Hence. They have illustrated it by comparing an organization to an air-filled . you will be able to: · Explain the meaning of organization change. some changes which are of minor type may be absorbed by the existing equilibrium. some parts of organization may be affected more. which are major ones. organizational change may have the following features: 1.2 Nature of Change The term µchange¶ refers to an alteration in a system.whether physical. it disturbs the old equilibrium necessitating the development of a new equilibrium. organizational change is the alteration of work environment in an organization. and others. organizational problems may repeat. · State the methods of reducing resistance to change. Thus. · Impact of change on future managers. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future. may require special change efforts. In this dynamic and fluid environment. indirectly. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented). However. Nothing is permanent except change because change is permanently changing. biological. 10. and others. structural arrangement. job design and people. less. When change occurs in any part of the organization. Newstrom and Davis have explained the impact of a change in any part of the organization on the total organization. others. 2. · Discuss the nature of change · Explain resistance to change and the factors which resist change. 3.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. or social.

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

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

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

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

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

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

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

10. Thomson South Western. both at the formal and informal levels. · Harigopal K. threatening to go on strike. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. Organizational change 2. Organization Development. Bell. N. New Delhi. New Delhi. Explain the nature of change? 2. Principles and Practices. Participation Answers to TQs: 1. 10. Reference: · Wendell L..complaints. P. through group dynamics. Jr.. Prentice-Hall of India Private Limited. · J. Why do organizations resist change? 3. Jain. at the level of individual and at the level of group. Refer section 10. Problem of overcoming resistance to change can be handled at two levels. or the like. French and Cecil H.9 Answers to SAQs and TQS SAQs: 1. Organization Development & Change.Singh. Organization Theory and Design. Refer section 10.6. · Cummings & Worley.management of Organization Change. Regal Publications New Delhi. eighth edition. engaging in a work showdown.2 2.8 Terminal Questions 1. Discuss the methods of reducing resistance to change. P.4 3. Refer section 10. that is. Thomson · Daft Richard L. Modern Organization Development and Change.Response Books. . Psychological factors 3.

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

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