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

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

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

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

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

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

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

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

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

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

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

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

Refer section 1.10 Answers to SAQs and TQs SAQs: 1. teamwork Answers to TQs: 1.2 Process of Management 2. manpower 3.1.1 Introduction Objectives 2. 1.5 3. Refer section 1. Discuss the importance of management.3 Planning 2. Refer section 1. Management 2. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2. materials. 3. Bring out the difference between Administration and Management.2. Money.3 2.4 Organizing .2.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .

2. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent. Controlling However. you will be able to: · Define Management process. Directing. as the action of measuring a quantity on a regular basis and of adjusting some initial plan. · Explain different functions of management Process. Organizing 3.7 Motivating Self Assessment Questions 2. Planning 2.5 Staffing 2. in recent time. Staffing. Coordinating 5.8 Summary 2. Objectives: After this studying this unit. Organizing. Commanding 4. . Motivating.9 Terminal Questions 2. · Explain Planning.6 Directing 2. Management functions are as follows (Fayol. One can also think of management functionally.1 Introduction Follett (1933) defined management as "the art of getting things done through people´. 1949): 1. management functions have been regrouped into four categories.10 Answers to SAQs and TQs 2.

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

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

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

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

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

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

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

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

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

Staffing Answers to TQs: 1.4 Categories of OD 3.5 Goals of OD 3.7 Role of OD 3. Reference 2. Follett 2.8 Problems in OD .3 2.1 Introduction Objectives 3.6 OD and Management Development 3. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3.6 Copyright © 2009 SMU Powered by Sikkim Manipal University . Reference 2.1.3 Characteristics of OD 3.2 Definitions 3. Reference 2. SWOT 3.5 3.

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

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

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

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

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

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. 2. OD focuses on total system change and views organizations as complex social systems. OD practitioners are facilitators. collaborators. so that change is easily observed. OD encourages collaboration between organization leaders and members in managing culture and processes. dynamic and adaptive system. 9. OD focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. OD . and co-learners with the client system. 7. OD takes a developmental view that seeks the betterment of both individuals and the organization. 2. 6. Planned Change: OD is a strategy of planned change for organizational improvement. 5. The concept of comprehensive change is based on the systems concept-open. constantly shifting teams will be the dominant configuration for getting work done. OD views organization improvement as an ongoing process in the context of a constantly changing environment. To summarize. OD relies on an action research model with extensive participation by client system members. 3. Teams of all kinds are particularly important for accomplishing tasks and are targets for OD activities. Participation and involvement in problem-solving and decision-making by all levels of the organization are hallmarks of OD. The definition we have just analyzed contains the elements we believe are important for OD. 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. 3. 8. rather than focusing attention on individuals. 4. Attempting to create ³win-win´ solutions is standard practice in OD programs. according to Peters. here are the primary distinguishing characteristics of organization development: 1.3 Characteristics of OD 1. 10.multifunctional. Comprehensive Change: OD efforts focus on comprehensive change in the organization. OD focuses on culture and processes. Specifically. This µplanned¶ emphasis separates OD efforts from other kinds of more haphazard changes that are frequently undertaken by organizations.

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

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

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

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

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

Peter Senge . Top management 2.1. Empowerment 4. ±±±±±±± is associated with ³Liberation Management´. What are the problems involved in the implementation of OD? 3. OD is the ultimate remedy for organizational improvements and developments. The participative. _____________is a short-term strategy. 3. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. But OD aims at changing the entire organizational climate where the managers work. Distinguish between µorganizational development¶ and µmanagement development¶.10 Terminal Questions 1. State the various roles of OD. 3. Tom Peters 3. 5. ±±±±±±±±± is a process which includes leadership behaviours and human resource practices. OD focuses on culture and processes. collaborative. problem-focused µnature of OD¶ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. 4. 4. Management development aims at developing the managers individually. Who is associated with the ³Learning Organizations´? 5.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. There is no µquick fix¶ to organizations¶ problems. Organization development should be led and supported by ±±±±±±±. Define OD. Explain its salient features.11 Answers to SAQs and TQs SAQs: 1. 2. 3. 2. Explain the various characteristics of OD. 3.

MU0002-Unit-04.3 Process Consultation 4.1 Introduction Objectives 4.Organization Development ± Interventions Structure: 4.7 5.5 Leadership Development 4.4 Grid Training 4. Refer section 3.6 Team-building .5.Organization Development ± Interventions Unit-04.2 Survey Feedback 4. Refer section 3.6 4.3 3. Refer section 3.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Management development Answers to TQs: 1. Refer section 3.2 2. Refer section 3.

8 Change Agents 4.11 Terminal Questions 4. OD efforts were attempted through sensitivity training. group level. Therefore. Thus. and organizational level. Historically. techno-structural activities. various consultants and practitioners have different opinions about the activities which can be included in interventions. 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. French and Bell have suggested twelve families of OD interventions: diagnostic.7 Inter Group Development 4. People¶s behaviour may be relevant to understand at individual level. the classification appears to be more relevant because it may specify the range of change that an organization requires. However. Nevertheless. 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.10 Summary 4. many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others. interventions may be required to change people at all these levels. Interventions constitute the action thrust of organization development. This classification of OD interventions is very comprehensive and many activities do not strictly form the part of OD as process of organizational improvement but other methods of improving the performance of the organization.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. inter-group activities. Subsequently. For example. they make things happen. and survey feedback method. inter-group level. the classification of OD interventions shows variation. mediation and negotiation activities. other techniques like process . team-building. grid training. Further. education and training.4. and organizational culture. work group. 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. process consultation.´ There are various OD interventions and they are classified in different ways. management grid.9 Role of Change Agents Self Assessment Questions 4. survey feedback. interpersonal level.

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

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

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

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

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

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

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

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

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

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

If this process is adopted several times. people themselves take assignments to increase specific constructive behaviours and decrease specific negative behaviours. (iv) Innovative: bringing in new relevant ideas. the stying with the topic or going off on tangents. It involves deciding who will take care of each area of the team¶s responsibilities. The discussion should continue until all members of the team have commented. 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. the way people talk about the issue. also provides opportunity to understand themselves. The feedback should be given to the members about their feelings. understanding. Followup action also helps in overcoming the drawback involved at the initial stages of team-building. (ii) Bringing in: harmonizing. This suggests that even people are not fully aware of themselves. and who will be responsible for team projects in a group that has not developed a satisfactory division of responsibility. there is a strong possibility that members may learn constructive behaviours and leave negative behaviours. etc. about the issue. talking together with speaker. The concept of Johari Window may also be applied. 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. At the time of discussion of feedback. criticizing person. with complex division of responsibility and authority among members. encouraging others to participate. ensuring. (iii) Negative: cooling. undermining morale. Often. members report about the painful feelings that they have at the time of evaluation of their feelings. feelings. who was talking more or who was talking less. cynicism. This is quite helpful in developing teamwork. belittling. etc. . Following are the examples of constructive and negative behaviours: Constructive Behaviour: (i) Building: developing and expanding the ideas of others. Such feedback generally provides members to evaluate the values but at the same time. 5. 4.3. Follow-up Action: This is the final stage in team-building. information. Negative Behaviour (i) Over talk: interrupting. who was trying to resolve the differences. (ii) Attacking: deriding. the total team is convened to review what has been learned and to identify what the next step should be. clarifying and setting differences in perception concerning responsibility and authority in the team. At this stage. seeking relevant information. (iii) Clarifying: resting.

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

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

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

Explain Change agents and discuss the role of change agents in detail. Refer section 4. MU0002-Unit-05-Values. Refer section 4. Refer section 4. 4. Refer section 4. Assumptions.12 Answers to SAQs and TQs SAQs: 1. Assumptions. What is survey feedback as an intervention of OD? How does it provide base for other OD interventions? 3. 3.1 Introduction . and Beliefs in Organization Development Structure: 5.2 3. Data collection 2.2.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Social loafing Answers to TQs: 1.4 2. and Beliefs in Organization Development Unit-05-Values. What is team-building? What are the stages of life cycle of a team? 4. Blake and Mouton.6 4.

assumptions.2 Implications for Dealing with Groups 5. Most of these beliefs were formulated early in the development of the field.5 Implications of OD Values and Assumptions 5.5. · List the chronology of events of values. · State the implications of OD values and assumptions.7 Terminal Questions 5. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers. 5. and they continue to evolve as the field itself evolves.4 Early Statements of OD Values and Assumptions 5. and beliefs constitutes an integral part of organization development. Objectives: After studying this unit.5.Objectives 5.1 Introduction A set of values. · Give the statement of OD values and assumptions.3 Implications for Designing and Running Organizations 5.8 Answers to SAQs and TQs 5.1 Implications for Dealing with Individuals 5.2 Definitions .5.3 Chronology of Events in Management and Organization Thought 5. beliefs and assumptions.2 Definitions 5.6 Summary Self Assessment Questions 5. beliefs and assumptions. you will be able to: · Explain the meaning of values. shaping the goals and methods of the field and distinguishing OD from other improvement strategies.

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

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

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

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

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

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

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

Such an orientation creates a self-fulfilling prophecy. are dysfunctional over the long run and highlight the need for a ³win win´ attitude. societal. The belief that people are important tends to result in their being important. they change over time. A key assumption in organization development is that the needs and aspirations of human beings are the reasons for organized effort in society. and E can support these changes. The rapid technological. Still. and ways to optimize human potential. including how persons C. By implication. Evidence for this assumption comes from numerous examples where ³putting people first´ paid off handsomely in profits and performance. and organizational changes taking place assure that tomorrow will bring new definitions of what is "true" and new beliefs about what is "good. the assumption is that many attitudinal and motivational problems in organizations require interactive and transactional solutions. 5. grouping by specialized function. The question becomes not how A can get B to perform better. developmental. adherence to the chain of command. they are the source of productivity and profits and should be treated with care.3 Implications for Designing and Running Organizations Clearly. experimenting with new organization structures and new forms of authority is imperative. The belief that people can grow and develop in terms of personal and organizational competency tends to produce that result. By implication. quality of output. They cannot meet the demands of the marketplace. in which one side wins and the other side loses. emphasis on topdown directives. 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. Concluding Comment: . developmental set of assumptions about people is likely to reap rewards beneficial to both the organization and its members. In addition. and so on-are obsolete. organizing structures. D. and empowering. and profitability. Creating co-operative rather than competitive organizational dynamics is a primary task of the organization¶s leaders. a growing awareness that ³win-lose´ organizational situations. Therefore. Frequently the challenge is broader. formalized cross-functional communication. traditional hierarchical forms of organization-fairly steep pyramid. 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. 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 on the other hand are high performing in terms of productivity. Such problems have the greatest chance of constructive solution if all parties in the system alter their mutual relationships.5. The implication is that people are an organization¶s most important resource." as behavioural scientists and managers continue to develop better understanding of authority structures.Finally. an optimistic. Finally. it is possible to create organizations that on the one hand are humane.

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

Bureaucracy 4.2. Refer section 5.1 Introduction Objectives 6. W. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.3 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 5.2 Models and Theories of Planned Change 6. Refer section 5.2. Hawthorne experiments 5. Taylor 3.2. Douglas McGregor Answers to TQs: 1.2 Beyond the Quick Fix . Refer section 5. Refer section 5.3 4.2 2.1 Kurt Lewin and Friends 6. F.3 3.3 5.

6 Parallel Learning Structures 6.12 Answers to SAQs and TQs 6.1 The Nature of Systems 6.4 Open Systems Thinking 6.1 Introduction This unit describes the foundations of organization development theory and practice.2 Congruence among System Elements 6.3.10 Summary 6.4 Porras and Robertson Model of Organizational Change 6.3 The Burke-Litwin Model of Organizational Change 6.3 Systems Theory 6.9 Action Research Self Assessment Questions 6.5 Teams and Teamwork 6. you will be able to: .8 Applied Behavioural Science 6.6.4 Participation and Empowerment 6. art and science which form the knowledge base upon which OD is constructed.3.3.11 Terminal Questions 6. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning.2.2.7 A Normative ± Re-educative Strategy of Changing 6. Objectives: After studying this unit.3.3 Socio-technical Theory and Open Systems Planning 6. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs. In this discussion.

· Explain systems theory. 6.2 Models and Theories of Planned Change Organization development is planned change in an organizational context. · Realize the importance of teams and teamwork. Several recent theories show great promise for increasing our understanding of what happens and how it happens in planned change.2. We will examine the following concepts: · Models and theories of planned change · Systems theory · Participation and empowerment · Teams and teamwork · Parallel and learning structures · A normative-re-educative strategy of changing · Action research 6. The development of models of planned change facilitated the development of OD. the important features of some phenomenon. Here we describe what we believe are the most important underpinnings for the field. and specify the relationships among the variables.· Explain various models and theories of planned change. Models and theories depict.1 Kurt Lewin and Friends Kurt Lewin introduced two ideas about change that have been influential since the 1940s. · Explain normative-re-educative strategy of changing The knowledge base of OD is extensive and is constantly growing. The first idea states that what is occurring at any point in time is a resultant in a field of opposing forces. That is. · Describe the parallel learning structures. Planned change theories are rudimentary as far as explaining relationships among variables. · Explain the terms µparticipation¶ and µempowerment¶. describe those features as variables. Here we provide a framework for thinking about planned change by exploring several models from the literature. the status quo-whatever is happening right now-is the result of forces pushing in . but pretty good for identifying the important variables involved. in words or pictures.

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

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

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

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

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

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

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

Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950. and Katz and Kahn were the first to apply open systems theory to organizations in 1966.5: A Change-based Organizational Framework 6. Keep this framework in mind as you read the units on OD interventions because all interventions target one or more factors shown in figures. and shows how systems theory enhances the practice of OD. 6. Fig. which views organizations as open systems in active exchange with their environment. Systems . describes the characteristics of systems.3 Systems Theory A second foundation of organization development is systems theory.4: Organizational Work-Setting Factors This model is extremely useful for OD practitioners and organizational leaders. This section explains systems theory.Fig. 6.

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

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

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

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

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

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

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

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

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

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

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

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

±±±±±±±±±± gave the model ³Beyond the Quick Fix´. 3. First²order change is also called ___________. 6. What are first-order and second order change according to Burke-Litwin Model of organizational change? Explain. 4. What are the features of systems theory of organizational development? 5. A fundamental belief in OD is that work teams are the building blocks of organizations. Transactional change . ±±±±±±±±±± means moving to new level of behaviour. A _____________ is defined as ³a set of elements standing in interaction. Unfreezing 2. 2. 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. 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. 3. 6.´ Comment on this statement. Ralph Kilmann 3. Action research model combines learning and doing. ³Work teams are building blocks of organizational development. In parallel learning structures members have to think and behave in ways that are different from the normal roles and rules of the organization. 2. Ralph Kilmann specified the critical leverage points for organizational change.11 Terminal Questions 1. which in turn lead to individual and organizational improvements is the principle of Porras and Robertson model organizational change.10 Summary The foundations of organizational development form the theoretical and practice underpinnings of the field. Bring out the essence of ³managing beyond the quick fix´ model of organizational development. 6.12 Answers to SAQs and TQs SAQs: 1. Explain Kurt Lewin¶s models and theories of planned organizational change. Systems theory views organizations as open systems in active exchange with their environment. 4. _____________ means sum of the efforts of team members is far greater than the sum of individual efforts of members.1.´ 5.

4 Organization Culture and Effectiveness 7. Refer section 6. Synergy Answers to TQs: 1.Refer section 6. Refer section 6. Refer section 6.2 3.1 Introduction Objectives 7.2 Characteristics of Organization Culture 7. System 5. MU0002-Unit-07-Organization Culture and Climate Unit-07-Organization Culture and Climate Structure: 7.3 Types of Organization Culture.2. Refer section 6.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .4.3 4.5 Developing and changing Organization Culture Self Assessment Questions 7.2.6 Summary .3 5.2.1 2. 7.

and feeling in relation to these problems (Schein. Standards of behavior exist. 2. When organizational participants interact with one another. ± similar to what you can use to get a feeling about someone¶s personality. Culture is one of those terms that¶s difficult to express distinctly. Comprehensively organization culture is the pattern of basic assumptions that is invented. Norms. You can tell the culture of an organization by looking at the arrangement of furniture. discovered. · Describe different types of Organization Culture · Explain organization culture and effectiveness. terminology. 7. thinking. For example. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. and validated enough to be taught to new members as the correct ways of perceiving. and rituals related to deference and demeanor. Which in many organizations come down to ³Do not do too much. Members of an organization soon come to sense the particular culture of an organization. for-profit corporation is quite different than that of a hospital which is quite different than that of a university.8 Answers to SAQs and TQs 7. including guidelines on how much work to do. do not do too little?´ . despite the best-laid plans. what members wear. organizational culture is the personality of the organization. 1986). Observed behavioral regularities. Practitioners are coming to realize that. The concept of culture is particularly important when attempting to manage organization-wide change. norms and tangible signs (artifacts) of organization members and their behaviors. Martin and Meyerson.7.1 Introduction Basically. they use common language. but also changing the corporate culture as well. Culture is comprised of the assumptions.2 Characteristics of Organization Culture Organizational culture has a number of important characteristics. organizational change must include not only changing structures and processes. what they brag about. but everyone knows it when they sense it. Objectives: After studying this unit. you will be able to: · Understand Organization Culture. values. the culture of a large. Some of the most readily agreed upon are the following: 1.7 Terminal Questions 7. etc. · Discuss about developing and changing organization culture.

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

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

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

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

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

3. and strategic constituencies approach. ________cultures are outward looking. Briefly explain different types of organizational culture. Factors in organizational effectiveness include casual variables. ___________are those factors that influence the course of development within an organization and its results or accomplishment. 7. effectiveness through adaptive-coping cycle has been discussed. Organizations to be successful must be efficient and effective. 2.6 Summary Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. Effectiveness of an organization can be increased through economic man approach and administrative man approach. _____are the visible manifestations of culture as seen in the physical and social environment of the organization. Market 3. behavioural approach. Finally. 3. 7. Explain the characteristics of organization culture. Causal variables Answers to TQs: . 9. are particularly driven by results and are often very competitive.goal approach. Organizational effectiveness can be measured through various approaches. Move quickly and decisively to build momentum and to defuse resistance to the new culture. Self Assessment Questions 1. 7. Discuss the development and change of organizational development. intervening variables and end-result variables and there exists interrelationship among these variables. Artifacts 2.8. 2. system-resource approach.7 Terminal Questions 1.8 Answers to SAQs and TQs SAQs: 1. Stay the course by being persistent.

Power. Refer section 7. MU0002-Unit-08.5 Organizational Politics Defined and Explored 8.1 Introduction Objectives 8. Politics and Organization Development Unit-08.7 Operating in a Political Environment 8.1.8 Acquiring and using Power Skills Self Assessment Questions 8. Refer section 7.10 Terminal Questions .3 3.2 2.6 The Role of Power and Politics in the Practice of OD 8.2 Power Defined and Explored 8.3 Two Faces of Power 8. Politics and Organization Development Structure: 8.9 Summary 8. Refer section 7.Power.4 Theories about the Sources of Social Power 8.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .

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

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

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

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.

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

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

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

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

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

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

5 Quality Circles 9.6 Quality of Work Life Projects .2 2. Refer section 8.5.4 3.2 Meaning and Definitions 9.4 Management By Objectives 9.5 4.Refer section 8. Refer section 8. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 8.3 Socio Technical Systems 9.1 Introduction Objectives 9.6 5. Refer section 8. Personality Answers to TQs: 1.

9. · Explain Reengineering. An organization development intervention is a sequence of activities. · Discuss the parallel Learning Structures.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future. . Objectives: After studying this unit. organizational problems may repeat. Nothing is permanent except change because change is permanently changing. you will be able to: · Explain the Socio technical change.7 Parallel Learning Structures 9.9 Reengineering Self Assessment Questions 9. In this dynamic and fluid environment. These programs are derived from careful diagnosis. · Discuss the Management By Objectives · Explain the Quality Circles. 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.10 Summary 9. events intended to help an organization improve its performance and effectiveness.12 Answers to SAQs and TQs 9. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design. These methods are receiving increasing attention in Organization Development. These interventions vary from standardized program that have been developed and sometimes tailored program. · Explain Total Quality Management.8 Total Quality Management 9. actions.11 Terminal Questions 9.

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

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

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

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

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

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

MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. From a benefit cost analysis. It is also called continuous quality improvement. Quality circle Answers to TQs: . Intervention 2.12 Answers to SAQs and TQS SAQs: 1. events intended to help an organization improve its performance and effectiveness. The term MBO was coined by _________ in 1964. events intended to help an organization improve its performance and effectiveness. provides relevant information to all employees. Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement. 9. Explain Management By Objectives? 4. TQM pushes decision making power downwards in the organization. ties reward to performance and increase workers knowledge and skills through extensive training. structural Interventions compare quite favorably with all other alternatives. What are the advantages of structural interventions? 3. 9. An organization development __________ is a sequence of activities. Write a short note on Total Quality Management. consciously directed towards the effective and efficient achievement of organizational objectives. __________ represents a participative approach to employee involvement in problem solving and productivity improvement. 2. Discuss Socio Technical Systems? 2. 3. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. Drucker 3. 9. There are a number of reasons why a consultant should consider employing a structural intervention. actions.10 Summary An organization development intervention is a sequence of activities. actions. Sociotechnical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs.11 Terminal Questions 1.1.

5 4. MU0002-Unit-10-Managing Change in Organization Development Unit-10-Managing Change in Organization Development Structure: 10.1. 10.8 Terminal Questions 10. Self Assessment Questions 10. Refer section 9.6 Methods of Reducing Resistance to Change.3 2.Refer section 9.2 Nature of Change 10.9 Answers to SAQs and TQs .4 Causes for Resistance to Change.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .3 Resistance to Change 10. Refer section 9.5 Impact of Change on the Future Manager 10. Refer section 9.7 Summary 10.2 3.1 Introduction Objectives 10.

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

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

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.

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

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

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

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

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

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

Response Books. P. Problem of overcoming resistance to change can be handled at two levels. Psychological factors 3. through group dynamics. Thomson South Western. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. N. Participation Answers to TQs: 1. both at the formal and informal levels. Regal Publications New Delhi. 10.. eighth edition. Jr. Modern Organization Development and Change. Thomson · Daft Richard L.8 Terminal Questions 1. threatening to go on strike. Explain the nature of change? 2.complaints.6. 10. engaging in a work showdown. Refer section 10.2 2. Principles and Practices. Discuss the methods of reducing resistance to change.9 Answers to SAQs and TQS SAQs: 1. Refer section 10..Singh. New Delhi. P. Refer section 10. French and Cecil H. New Delhi. or the like. Organization Development & Change. · Harigopal K. Jain.4 3. Reference: · Wendell L. Prentice-Hall of India Private Limited. Bell. Organization Theory and Design.management of Organization Change. Why do organizations resist change? 3. · J. at the level of individual and at the level of group. Organizational change 2. Organization Development. that is. · Cummings & Worley. .

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

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