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

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

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

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

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

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

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

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

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

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

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

administration is a higher level function. It is concerned with the implementation of policies. This view is held by Tead. Meaning Administration Administration is concerned with the formulation of objectives. Administration relates to the decision-making. Thus. According to them. 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. But some English authors like Brech are of the opinion that management is a wider term including administration. It is a doing function. plans and policies of the organisation. It is a thinking function. iii) There is no distinction between the terms µmanagement¶ and µadministration¶ and they are used interchangeably. Spriegal and Lansburg. management is a lower-level function and is concerned primarily with the execution of policies laid down by administration. Some writers do not see any difference between the two terms. Managers are concerned mainly with organisation and direction of human resources. etc. It is concerned with determination of major objectives and policies. Spriegel and Walter. Table 1.1. ii) Management is a generic term and includes administration. administration involves broad policy-making and management involves the execution of policies laid down by the administration. whereas management refers to execution of policies laid down by administration.2: Distinction between Administration and Management: Basic 1. Nature 3. on the other hand. Management relates to execution of decisions. while others maintain that administration and management are two different functions.7 Administration and Management The use of two terms µmanagement¶ and µadministration¶ has been a controversial issue in the management literature. 2. Management Management means getting the work done through and with others. Scope . 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. Administration is a determinative function. Floerence and Tead. Administration is a higher level function: Administration refers to policy-making. Those who held management and administration distinct include Oliver Sheldon. Thus. Administrators are basically concerned with planning and control. management as an executive function which is primarily concerned with carrying out of the broad policies laid down by the administration.

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

4 Organizing .1.2.2. 3. manpower 3.3 Planning 2.3 2. Refer section 1.1 Introduction Objectives 2. materials. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2. Money. teamwork Answers to TQs: 1. Discuss the importance of management. Management 2.2 Process of Management 2. Refer section 1. 1.10 Answers to SAQs and TQs SAQs: 1. Refer section 1.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .5 3. Bring out the difference between Administration and Management.

· Explain different functions of management Process. management functions have been regrouped into four categories.10 Answers to SAQs and TQs 2. Organizing. . Commanding 4.2. One can also think of management functionally. 1949): 1. Management functions are as follows (Fayol. Objectives: After this studying this unit. Coordinating 5. as the action of measuring a quantity on a regular basis and of adjusting some initial plan.1 Introduction Follett (1933) defined management as "the art of getting things done through people´. Directing. Organizing 3.7 Motivating Self Assessment Questions 2.6 Directing 2.5 Staffing 2. you will be able to: · Define Management process. Motivating. Controlling However. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent.8 Summary 2. Staffing.9 Terminal Questions 2. Planning 2. · Explain Planning. in recent time.

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

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

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

lines of authority. and where decisions are to be made. and operational planning must be accompanied by controls to ensure proper implantation of the plans. and goals are clearly stated. who is to do. Group related jobs together in a logical and efficient manner 5. structuring. Divide tasks into groups one person can accomplish ± a job 4. Strategic. operational plans are based on the organization¶s tactical plans. Assign work to individuals 6. working toward common goals.Tactical plans are based on the organization¶s strategic plan. To develop an environmental monitoring procedure. Monitor the plan A systematic method of monitoring the environment must be adopted to continuously improve the strategic planning process. grouped.4 Organizing It involves designing. It is the official organizational structure conceived and built by top management. List all tasks to be accomplished 3. necessary to maintain competitive advantage in the said market. The formal organization can be seen and represented in chart form. Organizational structure is the formal decision-making framework by which job tasks are divided. Formalization is an important aspect of structure. and coordinating the work components to achieve organizational goal. The purpose of the organizing function is to make the best use of the organization¶s resources to achieve organizational goals. how the tasks are to be grouped. These are specific plans that are needed for each task or supportive activity comprising the whole. This review is used for the next planning cycle and review. Organizations are groups of people. and relationships between departments. 2. Feedback is encouraged and incorporated to determine if goals and objectives are feasible. and coordinated. In turn. An organization chart displays the organizational structure and shows job titles. It is the extent to which the units of the organization are explicitly defined and its policies. short-term standards for key variables that will tend to validate and support the long-range estimates must be established. who reports to whom. 2. It is the process of determining what tasks are to be done. procedures. The steps in the organizing process include: 1.5 Staffing . tactical. Delegate authority to establish relationships between jobs and groups of jobs. with ideas and resources. Review plans 2. A key issue in accomplishing the goals identified in the planning process is structuring the work of the organization.

Deals with people: Staffing is a separate managerial function which deals with people in the organization. inventorying the people available. transfer and appraisal of personnel to fill the organizational positions. selection. Thus staffing deals with the future requirements also. . recruitment. 2. money. selection. Koontz. O¶Donnell & Weihrich have defined staffing as ³filling positions in the organization structure through identifying work force requirements. recruitment. Managers of the concerned departments are responsible for the selection and development of qualified people for their department and maintain them in their department. 2. materials. performance appraisal etc. It has many sub-functions: Staffing involves determination of the manpower requirement. Theo Haimann ± ³Concerned with the placement. transport system and other physical resources that make the organization to achieve its goals but it is the competency and efficiency of the people who handle resources contributes for the accomplishment of objectives of the enterprise. This task has been referred to as staffing. 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. appraisal. placement. promotion. compensation and training of needed people´. Definition: 1. Present positions must be filled keeping in mind the future requirements. It involves many sub-functions such as manpower planning. 3. Pervasiveness of Staffing: Effective execution of staffing function is the responsibility of all managers in the organization. 3. Staffing refers to the managerial function of determining and improving the manpower requirements of an enterprise. 5. It deals with future requirements: Staffing deals with current and future personnel requirements. development. 4. Curther Geelick Cyndall Urwick ± ³Staffing is the whole personnel function of brining in and training the staff and marinating of favorable conditions of work´ Features of Staffing The analysis of the above definitions highlights the following features: 1. growth and development of all those members of the organization whose function is to get things done through the efforts of other individuals´. placement. training. Therefore it is the responsibility of the management to secure and maintain competent and dedicated workforce including managers and operatives.It is not the machines.

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

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

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

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

8 Problems in OD .3 2.1.6 Copyright © 2009 SMU Powered by Sikkim Manipal University . Follett 2.5 Goals of OD 3.2 Definitions 3. Reference 2. Reference 2.1 Introduction Objectives 3. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3. Reference 2.5 3.6 OD and Management Development 3. SWOT 3.7 Role of OD 3. Staffing Answers to TQs: 1.4 Categories of OD 3.3 Characteristics of OD 3.

10 Terminal Questions 3. 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. Although new jobs are being created at record rates. organizations and the individuals in them face an enormously demanding present and future. OD focuses on issues related to the ³human side´ of organizations by finding ways to increase the effectiveness of individuals. A variety of solutions exists. organization structure. take advantage of opportunities. Today. and attention was soon directed toward other human and social processes in organizations such as the design of work tasks. Are any strategies available to help people and organizations cope. and processes. maintaining dignity and purpose in pursuit of organizational goals. teams. 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. ³Knowledge´ work is replacing ³muscle´ work. conflict resolution. survive. and achieving human connectedness and community in the workplace. Keeping organizations healthy and viable in today¶s world is a daunting task. and profitability. We predict that organization development will be preferred improvement strategy in future. and even prosper in these vexing times? Fortunately. Simple survival ± continuing to have an adequate job ± is a major challenge today in the light of constant layoffs and cutbacks. efficiency. and changing customer demands.11 Answers to SAQs and TQs 3.9 Summary 3. challenges from turbulent environments. and the like. strategy. and the organization¶s human and social processes. Organizations face multiple challenges and threats today ± threats to effectiveness. . increased competition. adapt. organization development is a process of teaching people how to solve problems. and learn how to do that better and better over time. And organization development (OD) is one of them. old jobs are being destroyed at an accelerating pace. strategy formulation and implementation.Self Assessment Questions 3. Basically. Individuals in organizations likewise face multiple challenges ± finding satisfaction in and through work. Organization development is a relatively recent invention. the answer is ³yes´. Early returns were encouraging. In summary.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. fighting obsolescence of one¶s knowledge and skills. culture. organization development represents one of the best strategies for coping with the rampant changes occurring in the marketplace and society. and the constant challenge to maintain congruence among organizational dimensions such as technology.

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

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

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

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

rather than focusing attention on individuals. 9. Specifically. 3. OD views organization improvement as an ongoing process in the context of a constantly changing environment. OD practitioners are facilitators. OD focuses on culture and processes. The definition we have just analyzed contains the elements we believe are important for OD. 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. Teams of all kinds are particularly important for accomplishing tasks and are targets for OD activities. 4. 2. dynamic and adaptive system. and co-learners with the client system. OD focuses on total system change and views organizations as complex social systems. 2. according to Peters. Participation and involvement in problem-solving and decision-making by all levels of the organization are hallmarks of OD. Attempting to create ³win-win´ solutions is standard practice in OD programs. Comprehensive Change: OD efforts focus on comprehensive change in the organization. here are the primary distinguishing characteristics of organization development: 1. OD focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. OD encourages collaboration between organization leaders and members in managing culture and processes. OD takes a developmental view that seeks the betterment of both individuals and the organization. Planned Change: OD is a strategy of planned change for organizational improvement. OD relies on an action research model with extensive participation by client system members. so that change is easily observed.multifunctional. 8. The thesis of Liberation Management is that contemporary bureaucratic structures with their functional specialties and rigid hierarchies are all wrong for the demands of today¶s fast-paced market place. OD . 10. collaborators. 3. This µplanned¶ emphasis separates OD efforts from other kinds of more haphazard changes that are frequently undertaken by organizations. 7. To summarize. constantly shifting teams will be the dominant configuration for getting work done. The concept of comprehensive change is based on the systems concept-open. 6. 5.3 Characteristics of OD 1.

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

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

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

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

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

What are the problems involved in the implementation of OD? 3. Explain the various characteristics of OD. The participative. OD focuses on culture and processes. There is no µquick fix¶ to organizations¶ problems.1. Top management 2.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. Who is associated with the ³Learning Organizations´? 5. 2. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. OD is the ultimate remedy for organizational improvements and developments. Empowerment 4. ±±±±±±± is associated with ³Liberation Management´. ±±±±±±±±± is a process which includes leadership behaviours and human resource practices. problem-focused µnature of OD¶ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. Distinguish between µorganizational development¶ and µmanagement development¶. 3. collaborative. Tom Peters 3. Management development aims at developing the managers individually. 5. Organization development should be led and supported by ±±±±±±±.11 Answers to SAQs and TQs SAQs: 1. _____________is a short-term strategy. 3. 4. Define OD. 3. Peter Senge . 4. But OD aims at changing the entire organizational climate where the managers work. 2. 3.10 Terminal Questions 1. Explain its salient features. State the various roles of OD.

5 Leadership Development 4. Refer section 3.7 5.2 Survey Feedback 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .3 Process Consultation 4.6 Team-building .1 Introduction Objectives 4.6 4. Refer section 3.5.3 3.Organization Development ± Interventions Structure: 4. Refer section 3. Refer section 3. Management development Answers to TQs: 1.4 Grid Training 4. Refer section 3.Organization Development ± Interventions Unit-04.2 2. MU0002-Unit-04.

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

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

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

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

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

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

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

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

and 5. group problems to even personal problem. 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. Analyzing how the work is performed. Analyzing how the team is working. 4. Much of the problems may be solved through effective communication and training sessions. The consensus-seeking part of the process necessitates that each person becomes thoroughly aware and understand clearly the basic concepts of team-development. their value systems. 1. such as. Providing positive feedback. rather. In problem identification. Problem-sensing: There are a number of ways in which problems of a team can be obtained. 4.2: 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. The view may be quite different ranging from the organizational problem. the emphasis should be on consensus. recognition. Setting goals and priorities for the team. 2. The role of communication is important in this context because it will help in clarifying the actual problems to the members. Often the team itself defines which aspects of team-building it wishes to work on. Fig. Analyzing the relationships among the members who are performing the job. For achieving these. Examining Differences: The perception of people on an issue differs because of their differing backgrounds. Providing substantial time together in which new information is constantly shared. Team-building Process: Team-building attempts to improve effectiveness of the team by having team members to concentrate on: 1.4. 3. 2. Analyzing how team¶s goals and priorities are linked to those of the organization. the team-building exercise proceeds in a particular way as shown in figure. generally most of the members come forward with their arguments as to what the real problems are. personality and attitudes. At this stage. This problem can better be identified in terms of what is hindering group effectiveness. and 5. . and rewards.

ensuring. undermining morale. Negative Behaviour (i) Over talk: interrupting. who was talking more or who was talking less. feelings. (iv) Innovative: bringing in new relevant ideas. Follow-up Action: This is the final stage in team-building. information. At the time of discussion of feedback. there is a strong possibility that members may learn constructive behaviours and leave negative behaviours. This suggests that even people are not fully aware of themselves. with complex division of responsibility and authority among members. Often. If this process is adopted several times. the total team is convened to review what has been learned and to identify what the next step should be. 4. The feedback should be given to the members about their feelings. seeking relevant information. The discussion should continue until all members of the team have commented. Following are the examples of constructive and negative behaviours: Constructive Behaviour: (i) Building: developing and expanding the ideas of others. (ii) Bringing in: harmonizing. Followup action also helps in overcoming the drawback involved at the initial stages of team-building. Giving and Receiving Feedback: The step of perceiving things and listening to each other may be relayed back to the members as there is a possibility that such processes may create tense situation in the group. clarifying and setting differences in perception concerning responsibility and authority in the team. talking together with speaker. members report about the painful feelings that they have at the time of evaluation of their feelings. (iii) Negative: cooling. etc. the stying with the topic or going off on tangents. 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. At this stage. The concept of Johari Window may also be applied. 5.3. It involves deciding who will take care of each area of the team¶s responsibilities. and who will be responsible for team projects in a group that has not developed a satisfactory division of responsibility. people themselves take assignments to increase specific constructive behaviours and decrease specific negative behaviours. about the issue. belittling. (ii) Attacking: deriding. This is quite helpful in developing teamwork. criticizing person. the way people talk about the issue. . (iii) Clarifying: resting. etc. who was trying to resolve the differences. Such feedback generally provides members to evaluate the values but at the same time. understanding. encouraging others to participate. also provides opportunity to understand themselves. cynicism.

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

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

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

What is team-building? What are the stages of life cycle of a team? 4. Assumptions. Data collection 2. Refer section 4. Social loafing Answers to TQs: 1. Assumptions.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . 4. 3. Blake and Mouton.2. Refer section 4. What is survey feedback as an intervention of OD? How does it provide base for other OD interventions? 3.2 3. and Beliefs in Organization Development Unit-05-Values.1 Introduction . and Beliefs in Organization Development Structure: 5.12 Answers to SAQs and TQs SAQs: 1. Refer section 4.6 4. MU0002-Unit-05-Values. Explain Change agents and discuss the role of change agents in detail. Refer section 4.4 2.

you will be able to: · Explain the meaning of values.4 Early Statements of OD Values and Assumptions 5. and they continue to evolve as the field itself evolves. assumptions.1 Introduction A set of values. and beliefs constitutes an integral part of organization development. beliefs and assumptions.2 Implications for Dealing with Groups 5.2 Definitions . · State the implications of OD values and assumptions. · List the chronology of events of values.1 Implications for Dealing with Individuals 5.8 Answers to SAQs and TQs 5. beliefs and assumptions. · Give the statement of OD values and assumptions.5.2 Definitions 5.6 Summary Self Assessment Questions 5. 5.3 Implications for Designing and Running Organizations 5.Objectives 5.3 Chronology of Events in Management and Organization Thought 5.5. Objectives: After studying this unit. Most of these beliefs were formulated early in the development of the field. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers.5.7 Terminal Questions 5. shaping the goals and methods of the field and distinguishing OD from other improvement strategies.5 Implications of OD Values and Assumptions 5.

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

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

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

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

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

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

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

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

and assumptions are all ±±±±±±±±±± facts. Values are also beliefs.6 Summary The field of OD rests on a foundation of values and assumptions about people and organizations. beliefs and assumptions are cognitive facts. 2. __________ is associated with scientific management. optimistic and democratic. 5. beliefs. 5. Self Assessment Questions 1. 4.W. Cognitive . 5. The outcome of ±±±±±±±± was that people were not cogs and organizations were not machines. beliefs and assumptions. What was the outcome of Hawthorne Experiments? 4. 3. These OD values were considered revolutionary when they emerged in the 1950s. This discussion was intended to articulate an appreciation of OD values and explain where they came from. but are widely accepted today. Taylor¶s principles of scientific management. Values. Write a note about F. _______________ gave theory X and theory Y.The field of organization development rests on a foundation of values and assumptions about people and organizations. Values. Chronology of events in management and OD tremendously influenced OD practitioners. assumptions and beliefs help to define what OD is and guide its implementation. OD values tend to be humanistic. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. Define concepts. These beliefs help to define what OD is and guide its implementation. State the assumptions of Theory X and Theory Y. 5. The concept of ±±±±±±±±±± was introduced by MaxWeber. values. A belief is a proposition about how the world works that the individual accepts as true. 2.7 Terminal Questions 1. 3. Values.8 Answers to SAQs and TQs SAQs: 1.

Refer section 5.2.1 Kurt Lewin and Friends 6.3 5.3 3. Taylor 3.2 2. Refer section 5. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.2 Models and Theories of Planned Change 6. Refer section 5. Hawthorne experiments 5.2 Beyond the Quick Fix . Douglas McGregor Answers to TQs: 1.1 Introduction Objectives 6.2.3 4. Bureaucracy 4. Refer section 5. Refer section 5.2. W.3 Copyright © 2009 SMU Powered by Sikkim Manipal University . F.

3 Socio-technical Theory and Open Systems Planning 6.4 Participation and Empowerment 6.6 Parallel Learning Structures 6.10 Summary 6.2.4 Porras and Robertson Model of Organizational Change 6.2 Congruence among System Elements 6.3 The Burke-Litwin Model of Organizational Change 6.1 The Nature of Systems 6.5 Teams and Teamwork 6.12 Answers to SAQs and TQs 6.3 Systems Theory 6.3. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning. you will be able to: .4 Open Systems Thinking 6.1 Introduction This unit describes the foundations of organization development theory and practice.2.8 Applied Behavioural Science 6. Objectives: After studying this unit.3.6. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs.3.9 Action Research Self Assessment Questions 6. In this discussion.11 Terminal Questions 6.7 A Normative ± Re-educative Strategy of Changing 6. art and science which form the knowledge base upon which OD is constructed.3.

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

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

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

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

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

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

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

For example. required. It is how OD works. physical setting. The basic premise is that OD interventions alter features of the work setting causing changes in individuals¶ behaviours.3: The Burke Litwin Model of Organizational Performance and Change 6. and rewards will affect organizing arrangements. and technology. 6.2. The premise modeled here is that work setting factors influence organizational members¶ cognitions (they learn what is expected. rewarded). it is described in a discussion by Porras and Peter Robertson.4 Porras and Robertson Model of Organizational Change Jerry Porras and his associates developed a model of how organization development works. social factors. according to Porras and Robertson. which determine organizational performance and individual development. which in turn lead to individual and organizational improvements. The work setting plays a central role in this model and consists of four factors: organizing arrangements. management style. Organizational change occurs only when individuals change their behaviour. . Interventions that focus on culture. which influence on-the job behaviours. OD interventions that focus on goals. and these behaviour changes occur when elements of the work setting have been modified by OD interventions. This model shows how OD interventions can be linked to factors in the work setting. Interventions that focus on job design and work flow design will affect technology. Following figure shows the work setting in the larger organizational framework. strategies.Fig. and interaction processes will affect social factors.

describes the characteristics of systems. and shows how systems theory enhances the practice of OD. Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950. Fig.Fig. Keep this framework in mind as you read the units on OD interventions because all interventions target one or more factors shown in figures.3 Systems Theory A second foundation of organization development is systems theory.5: A Change-based Organizational Framework 6. 6. which views organizations as open systems in active exchange with their environment. 6.4: Organizational Work-Setting Factors This model is extremely useful for OD practitioners and organizational leaders. Systems . and Katz and Kahn were the first to apply open systems theory to organizations in 1966. This section explains systems theory.

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

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

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

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

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

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

. teams at 3M generate the hundreds of innovations that keep 3M ahead of its competition. teaming. Teams are important for a number of reasons: First. the sum of the efforts of team members is far greater than the sum of the individual efforts of people working alone. many tasks are so complex they cannot be performed by individuals. to name just a few. QCs (quality circles). Team Saturn produced the Saturn automobile. processes.both views contain valid ideas: for example. is not something that management does to employees. and practice attest to the central role teams play in organizational success.´ 6. Teams and teamwork are among the "hottest" things happening in organizations today ± gurus extol the virtues of teams. Second. they must if personally connected to the organization. but rather a mindset that employees have about their roles in the organization. Quinn and Spreitzer conclude: ³Empowerment. confident about their abilities. STS (socio-technical systems). the noun team has become a verb. If the team. Third. then. employees must choose to be empowered. HPWSs (high-performance work systems). The previous discussion focused on empowerment and concluded that the act of empowering individuals greatly increased their performance and satisfaction. Teams at Motorola produced its bestselling cellular phones. A second fundamental belief is that teams must manage their culture. "The evidence is abundantly clear: Effective teams produce results far beyond the performance of unrelated individuals. While management can create a context that is more empowering. teams create synergy. Teams and teamwork are part of the foundation of organization development. Teams and teamwork are "in. HPOs (high-performance organizations). systems. as a team. research. and team-related acronyms abound-SDTs (self-directed teams). They must see themselves as having freedom and discretion. the effects on individual behaviour are immediate and lasting. people must work together to accomplish them. and relationships if they are to be effective. crossfunctional "design-build" teams developed the Boeing 777.5 Team and Teamwork A fundamental belief in organization development is that work teams are the building blocks of organizations. Synergy is a principal reason teams are so important. Team Taurus developed Ford¶s best-selling automobile. The message of this section is that putting those empowered individuals into teams creates extraordinary effects on performance and satisfaction. Theory. the organic approach unleashes talent and energy in people that are best channeled by providing clear guidelines and boundaries. much individual behaviour is rooted in the socio-cultural norms and values of the work team. that is. and capable of having an impact on the system in which they are embedded. changes those norms and values.

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

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

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

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

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

4. Bring out the essence of ³managing beyond the quick fix´ model of organizational development. The Burke-Litwin model emphasized on first-order and second-order change.10 Summary The foundations of organizational development form the theoretical and practice underpinnings of the field. A fundamental belief in OD is that work teams are the building blocks of organizations. In parallel learning structures members have to think and behave in ways that are different from the normal roles and rules of the organization. Transactional change . What are first-order and second order change according to Burke-Litwin Model of organizational change? Explain. 6. What are the features of systems theory of organizational development? 5.11 Terminal Questions 1.1. Unfreezing 2.´ Comment on this statement. Explain Kurt Lewin¶s models and theories of planned organizational change. 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. 2. ±±±±±±±±±± gave the model ³Beyond the Quick Fix´. ±±±±±±±±±± means moving to new level of behaviour. First²order change is also called ___________. 4. _____________ means sum of the efforts of team members is far greater than the sum of individual efforts of members. Ralph Kilmann specified the critical leverage points for organizational change. 3. 6.12 Answers to SAQs and TQs SAQs: 1.´ 5. 2. Ralph Kilmann 3. 6. Systems theory views organizations as open systems in active exchange with their environment. OD interventions alter features of the work setting causing changes in individuals¶ behaviours. A _____________ is defined as ³a set of elements standing in interaction. Action research model combines learning and doing. 3. which in turn lead to individual and organizational improvements is the principle of Porras and Robertson model organizational change. ³Work teams are building blocks of organizational development.

Refer section 6. Synergy Answers to TQs: 1.2.3 4.3 Types of Organization Culture.6 Summary .5 Developing and changing Organization Culture Self Assessment Questions 7.Refer section 6. Refer section 6.3 5.2.4.1 Introduction Objectives 7.4 Organization Culture and Effectiveness 7. Refer section 6.2.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 3. 7. Refer section 6. System 5.1 2. MU0002-Unit-07-Organization Culture and Climate Unit-07-Organization Culture and Climate Structure: 7.2 Characteristics of Organization Culture 7.

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

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

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

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

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

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

are particularly driven by results and are often very competitive. Explain the characteristics of organization culture.6 Summary Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. Discuss the development and change of organizational development. intervening variables and end-result variables and there exists interrelationship among these variables. 3. 9. behavioural approach.7 Terminal Questions 1. Market 3.8 Answers to SAQs and TQs SAQs: 1. Organizations to be successful must be efficient and effective. _____are the visible manifestations of culture as seen in the physical and social environment of the organization. Effectiveness of an organization can be increased through economic man approach and administrative man approach. Move quickly and decisively to build momentum and to defuse resistance to the new culture. 7. and strategic constituencies approach. Artifacts 2.8. ___________are those factors that influence the course of development within an organization and its results or accomplishment. 7. 3. Causal variables Answers to TQs: . 2. Self Assessment Questions 1. effectiveness through adaptive-coping cycle has been discussed. 7. system-resource approach. Stay the course by being persistent. Factors in organizational effectiveness include casual variables. Finally. ________cultures are outward looking. 2. Briefly explain different types of organizational culture. Organizational effectiveness can be measured through various approaches.goal approach.

5 Organizational Politics Defined and Explored 8.6 The Role of Power and Politics in the Practice of OD 8.4 Theories about the Sources of Social Power 8. Refer section 7. Politics and Organization Development Unit-08.2 2. MU0002-Unit-08.10 Terminal Questions .7 Operating in a Political Environment 8.3 3.1.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 Power Defined and Explored 8.9 Summary 8.Power.8 Acquiring and using Power Skills Self Assessment Questions 8.Power. Refer section 7. Refer section 7. Politics and Organization Development Structure: 8.3 Two Faces of Power 8.1 Introduction Objectives 8.

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

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

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

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.

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

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

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

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

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

and how. reputation and professional credibility. 8. ±±±±±±±± defined politics as the study of who gets what. ±±±±±± is the intentional influence over the beliefs. when. Organizational politics is defined as the study of who gets what. _____________ has identified two faces of power. Power based on the power-receiver having identification with the power holder is called ±±±± ±±±±±±±. Power can be either positive or negative. 5. Self Assessment Questions 1. arise from known conditions. Referent power 4. Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another. Power 2. units or departments is most important in solving organizational problems. Organizational politics involve intentional acts of influence to enhance or protect the self-interest of individuals or groups. 5. 4. 2. 8. emotions or behaviour of people.10 Terminal Questions 1. 3. 8. when and how.. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics. 2. Define power in an organizational context and explain types of power. 3. Define organization politics. Explain the role of power and politics in the practice of OD. Strategic-contingency model of power asserts that power that accrues to the individuals. Power and politics are similar in nature.9 Summary Power and politics are inseparable facts of organizational life. Organizational power is the ability of those who possess power to bring about the outcomes they desire. 4.11 Answers to SAQs and TQs SAQs: 1.using power to operate effectively in organizations may help practitioner avoid the perils and pitfalls of power that "go with the territory" of organizational change. McClelland 3. ±±±±±±±±±± is made up of Charisma. Harold Lasswell . and are amenable to positive control. Describe briefly various theories of power. Identify the bases of individual power and the respective strategies for their success.

2 2. Refer section 8.4 Management By Objectives 9. Personality Answers to TQs: 1.1 Introduction Objectives 9.6 Quality of Work Life Projects . MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9.5. Refer section 8.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 Meaning and Definitions 9.3 Socio Technical Systems 9.5 4.6 5. Refer section 8. Refer section 8.Refer section 8.4 3.5 Quality Circles 9.

These programs are derived from careful diagnosis.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. An organization development intervention is a sequence of activities. These methods are receiving increasing attention in Organization Development.9 Reengineering Self Assessment Questions 9. Nothing is permanent except change because change is permanently changing. · Explain Reengineering. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design. 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. you will be able to: · Explain the Socio technical change. · Discuss the parallel Learning Structures. Objectives: After studying this unit.9. actions. · Discuss the Management By Objectives · Explain the Quality Circles. .10 Summary 9. These interventions vary from standardized program that have been developed and sometimes tailored program.12 Answers to SAQs and TQs 9. · Explain Total Quality Management. One important intervention technique is Technostructural interventions because these are related to technical and structural issues such as how to divide labour and how to coordinate department which is related to Restructuring organization.8 Total Quality Management 9.7 Parallel Learning Structures 9. organizational problems may repeat. events intended to help an organization improve its performance and effectiveness.11 Terminal Questions 9. In this dynamic and fluid environment.

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

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

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

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

Therefore. or in people¶s heads) and distributing it to the people who need it in a timely and efficient way. each having three to fifteen members. and rewards. QWL programs. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. which consequently result into high level of task variety. Objectives are neither set at the top and communicated to the bottom nor are they set at the bottom and go up. require joint participation by union and management in the process of work-designing. Some organizations have even gone as far as setting targets for the number of suggestions quality groups are expected to come up with. Objective setting is a joint process through interaction between superior and subordinate. hierarchical structure. this approach looked both at technical and human sides of organizations and how they are interrelated.7 Parallel Learning Structures Parallel Learning Structures (also known as Communities of Practice) promote innovation and change in large bureaucratic organizations while retaining the advantages of bureaucratic design. quality groups are often compulsory and organized around specific work teams. 9. and · Then monitor the resulting change efforts. knowledge. The original idea of quality circles involved small groups of volunteers meeting on a regular basis.6 Quality of Work Life Based on the research of Eric Trist et al. 9. in general. information. · Make recommendations for improvement.Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement. Groups representing various levels and functions work to open new channels of communication outside of and parallel to the normal. on paper. 9. Quality circle program consists of several circles. at the Tavistcock Institute of Human Relations in London. but in its contemporary form. The most distinguishing feature of QWL program is the development of self-managing work groups which consist of multi-skilled workers. Knowledge Management involves capturing the organization¶s collective expertise wherever it resides (in databases. it is used as an input for recycling objectives and other actions. 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. . what happens at each level may affect other levels also.6. Recycling: Though appraisal is the last aspect of MBO process. Quality circle requires a managerial philosophy and culture that promotes sharing power. It Consists of a steering committee and a number of working groups that: · Study what changes are needed in the organization. appropriate feedback and employee discretion. Parallel Learning Structures may be a form of Knowledge Management.5 Quality Circles Quality circle is one of the most popular methods in the USA which was originally developed in Japan in 1950s.

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

events intended to help an organization improve its performance and effectiveness. Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement. TQM pushes decision making power downwards in the organization. provides relevant information to all employees. 2. actions. Discuss Socio Technical Systems? 2. What are the advantages of structural interventions? 3. There are a number of reasons why a consultant should consider employing a structural intervention. 9. 9. From a benefit cost analysis. MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner.1. ties reward to performance and increase workers knowledge and skills through extensive training. Explain Management By Objectives? 4. 9. An organization development __________ is a sequence of activities. structural Interventions compare quite favorably with all other alternatives. actions. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. __________ represents a participative approach to employee involvement in problem solving and productivity improvement. It is also called continuous quality improvement. 3. consciously directed towards the effective and efficient achievement of organizational objectives. Drucker 3. Quality circle Answers to TQs: . events intended to help an organization improve its performance and effectiveness. The term MBO was coined by _________ in 1964.10 Summary An organization development intervention is a sequence of activities.12 Answers to SAQs and TQS SAQs: 1.11 Terminal Questions 1. Write a short note on Total Quality Management. Sociotechnical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. Intervention 2.

5 4.7 Summary 10.1 Introduction Objectives 10.5 Impact of Change on the Future Manager 10.6 Methods of Reducing Resistance to Change.3 Resistance to Change 10.4 Causes for Resistance to Change.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .8 Terminal Questions 10. Refer section 9. Refer section 9. MU0002-Unit-10-Managing Change in Organization Development Unit-10-Managing Change in Organization Development Structure: 10.1.2 3. 10. Refer section 9. Self Assessment Questions 10.3 2.9 Answers to SAQs and TQs .Refer section 9.2 Nature of Change 10.

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

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

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.

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

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

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

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

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

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

that is. Bell. Prentice-Hall of India Private Limited. P. Psychological factors 3. Discuss the methods of reducing resistance to change. threatening to go on strike.Response Books. Regal Publications New Delhi. 10. Participation Answers to TQs: 1. or the like. . both at the formal and informal levels. Organization Theory and Design. Reference: · Wendell L. engaging in a work showdown. eighth edition. Organization Development. New Delhi. Refer section 10. Jr. · J..9 Answers to SAQs and TQS SAQs: 1. P. Problem of overcoming resistance to change can be handled at two levels. through group dynamics. French and Cecil H. at the level of individual and at the level of group. Thomson · Daft Richard L. Modern Organization Development and Change.. 10.4 3. N.complaints.6.management of Organization Change. Refer section 10. Thomson South Western. · Harigopal K. Organization Development & Change. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. Why do organizations resist change? 3. · Cummings & Worley. Explain the nature of change? 2. Principles and Practices. Refer section 10. New Delhi. Organizational change 2.Singh.2 2.8 Terminal Questions 1. Jain.

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

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