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

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

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

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

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

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

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

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

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

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

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

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

1. making strategic plans to deal plans and policies of the effectively with the organisation. machinery and methods or ways of doing things) depends to a great extent on the quality of management. Five M¶s of management (________.4. There are three levels of management-top. motivating and controlling the efforts of others towards a specific objective. Environment Administration has direct Management is mainly interaction with external concerned with internal environment of business and forces. Status Administration refers to Management is relevant at higher levels of management. Lower level managers require and use a greater degree of technical skill and managers at higher levels use a greater degree of conceptual skill. __________is principally the task of planning. counseling and effective leadership. 2. . Human skills are important at all managerial levels. Still management is not completely a profession. 6.8 Summary Management is concerned with getting things done through other people. Explain its characteristics. Direction of It is concerned with leading It is concerned with Human Resources and motivation of middle level leading and motivation of executives. administrative decisions. organisations. Usage of Term The term µadministration¶ is The term µmanagement¶ is often associated with widely used in business government offices. public organisations in the private sector and non-business sector. Managers perform different roles to discharge their responsibilities.. ___________. middle and lower. 3. environmental forces. It is the management which transforms physical resources of an organization into productive resources. Define management. co-ordinating.9 Terminal Questions 1. Self Assessment Questions 1. operative workforce for the execution of plans. 7. 8. i. 1. lower levels of management. DecisionMaking Administration determines Management decides who what is to be done and when it shall implement the is to be done. Management creates ________ and motivates employees to work harder and better by providing necessary guidance. objectives.e. Management is largely found at the middle and lower levels and administration is found at the higher levels. _________. 5.

Management 2.1. teamwork Answers to TQs: 1. Bring out the difference between Administration and Management.4 Organizing .3 2. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2. Discuss the importance of management.3 Planning 2.2 Process of Management 2.1 Introduction Objectives 2. Refer section 1.2. Money. 3.5 3. Refer section 1.10 Answers to SAQs and TQs SAQs: 1.2. materials. 1. Refer section 1. manpower 3.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .

Planning 2. Staffing. in recent time. as the action of measuring a quantity on a regular basis and of adjusting some initial plan. Controlling However.9 Terminal Questions 2. Motivating. Directing. management functions have been regrouped into four categories. Objectives: After this studying this unit. you will be able to: · Define Management process. · Explain different functions of management Process. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent. Management functions are as follows (Fayol. 1949): 1.2. Organizing 3. Commanding 4.5 Staffing 2. · Explain Planning.1 Introduction Follett (1933) defined management as "the art of getting things done through people´.10 Answers to SAQs and TQs 2.6 Directing 2.8 Summary 2. Organizing. .7 Motivating Self Assessment Questions 2. One can also think of management functionally. Coordinating 5.

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

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

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

operational plans are based on the organization¶s tactical plans. Organizational structure is the formal decision-making framework by which job tasks are divided. procedures. Divide tasks into groups one person can accomplish ± a job 4. working toward common goals. Formalization is an important aspect of structure. and relationships between departments. tactical. Assign work to individuals 6. 2. who reports to whom. It is the extent to which the units of the organization are explicitly defined and its policies. An organization chart displays the organizational structure and shows job titles. To develop an environmental monitoring procedure. and where decisions are to be made. List all tasks to be accomplished 3. who is to do. with ideas and resources. grouped. In turn. lines of authority. and operational planning must be accompanied by controls to ensure proper implantation of the plans. Strategic. structuring. 2. and coordinating the work components to achieve organizational goal. necessary to maintain competitive advantage in the said market. A key issue in accomplishing the goals identified in the planning process is structuring the work of the organization.Tactical plans are based on the organization¶s strategic plan. how the tasks are to be grouped. short-term standards for key variables that will tend to validate and support the long-range estimates must be established. It is the official organizational structure conceived and built by top management. This review is used for the next planning cycle and review. and goals are clearly stated. These are specific plans that are needed for each task or supportive activity comprising the whole. and coordinated. It is the process of determining what tasks are to be done. The steps in the organizing process include: 1.4 Organizing It involves designing. Feedback is encouraged and incorporated to determine if goals and objectives are feasible. Monitor the plan A systematic method of monitoring the environment must be adopted to continuously improve the strategic planning process. The purpose of the organizing function is to make the best use of the organization¶s resources to achieve organizational goals. Group related jobs together in a logical and efficient manner 5.5 Staffing . Organizations are groups of people. The formal organization can be seen and represented in chart form. Review plans 2. Delegate authority to establish relationships between jobs and groups of jobs.

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

It emphasizes that a subordinate is to be directed by his own superior only. selection. It is performed in the context of superior-subordinate relationship and every manager in the organization performs his duties both as a superior and subordinate. identifying the manpower requirements. motivate them. On the one hand. Direction function is performed at every level of management. It is instructing people as to what to do. 8. Personnel policies and programs must be formulated as guides to perform the staffing function effectively. overseeing and leading people. Direction has dual objectives. management initiates actions in the organization. Direction imitates at the top level in the organization and follows to bottom through the hierarchy. on the other. vacancies arise out of retirement.e. lead them and guide them on a continuous basis.6 Directing Direction is one of the functions of management. Thus staffing is an ongoing process through ± out the life of an organization. 7. induction. Direction is an important managerial function. . Direction is the managerial function of guiding. It is a process: it is a process having a logical sequence i. Direction is continuous process and it continues throughout the life-time of the organization. to provide superiors opportunities for some more important work which their subordinates cannot do. it aims at getting things done by subordinates and. how to do and telling them to do to the best of their ability. 5. It is a continuing function. resignation. recruitment. Definition According to Koontz and O¶Donnel. 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 an important managerial function. 2. Through direction. Characteristics of Direction The characteristic features of direction are as follow: 1. A manger needs to give orders to his subordinates. 2.6. It is a continuous function: With the growth and expansion of business additional manpower is needed. training development and maintenance of personnel. etc. 3. 4. promotion.

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

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

Removing dissatisfying characteristics from a job does not necessarily make the job satisfying. neither will they be satisfied. 2. who reports to whom. people will not be dissatisfied. Self Assessment Questions 1. emphasize factors intrinsically rewarding that are associated with the work itself or to outcomes directly derived from it. how the tasks are to be grouped. 2. establishing strategies for achieving these goals. Write a short not on directing. 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.8 Summary Management is the art of getting things done through people. Planning involves the process of defining goals. and developing plans to integrate and coordinate activities. and where decisions are to be made. It is the process of determining what tasks are to be done. many related to the tasks being performed. To motivate people. who is to do. and coordinating the work components to achieve organizational goal. What is planning? 2. 2. Organization involves designing. performance appraisal etc.9 Terminal Questions 1. 3. 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. motivators describe a person¶s relationship with what she or he does. _______refers to the managerial function of determining and improving the manpower requirements of an enterprise. Explain Staffing in detail 3. Every organization needs to plan for change in order to reach its set goal. When hygiene factors are adequate. It involves many sub-functions such as manpower planning. structuring. have to do with a person¶s relationship to the context or environment in which she or he performs the job. recruitment. ____defined management as the art of getting things done through people. Staffing refers to the managerial function of determining and improving the manpower requirements of an enterprise. Hygiene factors on the other hand. The _____analysis begins with a scan of the external environment.In summary. Job satisfaction factors are separate and distinct from job dissatisfaction factors. 2.10 Answers to SAQs and TQs SAQs: .

Reference 2.1 Introduction Objectives 3.1.5 Goals of OD 3. Follett 2.4 Categories of OD 3. SWOT 3.7 Role of OD 3.8 Problems in OD .2 Definitions 3. Staffing Answers to TQs: 1.6 OD and Management Development 3. Reference 2.5 3.3 2.3 Characteristics of OD 3. Reference 2. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3.6 Copyright © 2009 SMU Powered by Sikkim Manipal University .

We predict that organization development will be preferred improvement strategy in future. ³Knowledge´ work is replacing ³muscle´ work. and the organization¶s human and social processes. and achieving human connectedness and community in the workplace. OD focuses on issues related to the ³human side´ of organizations by finding ways to increase the effectiveness of individuals. and the constant challenge to maintain congruence among organizational dimensions such as technology. and processes. teams. culture. . The field of OD grew rapidly in the 1970s and the 1980s with thousands of organizations in the private and public sectors using the theory and methods of OD with great success. and profitability. old jobs are being destroyed at an accelerating pace. Simple survival ± continuing to have an adequate job ± is a major challenge today in the light of constant layoffs and cutbacks. 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. In summary. Organizations face multiple challenges and threats today ± threats to effectiveness. A variety of solutions exists. the answer is ³yes´.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. Keeping organizations healthy and viable in today¶s world is a daunting task. survive. fighting obsolescence of one¶s knowledge and skills. Early returns were encouraging. organization structure.11 Answers to SAQs and TQs 3. Today. strategy formulation and implementation. maintaining dignity and purpose in pursuit of organizational goals. adapt. and learn how to do that better and better over time.9 Summary 3. organization development represents one of the best strategies for coping with the rampant changes occurring in the marketplace and society. organizations and the individuals in them face an enormously demanding present and future. efficiency. And organization development (OD) is one of them. Organization development is a relatively recent invention. and the like. conflict resolution. Individuals in organizations likewise face multiple challenges ± finding satisfaction in and through work. and even prosper in these vexing times? Fortunately. increased competition. Are any strategies available to help people and organizations cope. Basically. take advantage of opportunities. challenges from turbulent environments. Although new jobs are being created at record rates.Self Assessment Questions 3. strategy. and attention was soon directed toward other human and social processes in organizations such as the design of work tasks. organization development is a process of teaching people how to solve problems. and changing customer demands.10 Terminal Questions 3.

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

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

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

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

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

Rather. It recognizes that organizational goals change. and adaptability for the organization as a whole. He shares a social philosophy about human values. joint goals and means. 6.4 Categories of OD Programmes In general. all types of experience requiring Organization Development efforts may be grouped into three categories: (a) Problems of destiny. and cyclic processes. third party change agent.efforts take an organization as an interrelated whole and no part of it can be changed meaningfully without making corresponding changes in other parts. or catalyst. and then. Key areas are the normative type of model. 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. and (c) Problems of organizational effectiveness. temporary. They discourage µdo it yourself¶ approach. and revitalization. Emphasis on Intervention and Action Research: OD approach results in an active intervention in the ongoing activities of the organization. it is a programme with a purpose that is to guide present and future action. This is done to arrive at certain desirable outcomes that may be in the form of increased effectiveness. Organization Development is inextricably linked with action. Long-range Change: OD efforts are not meant for solving short-term. problem-solving. Participation of Change Agent: Most OD experts emphasize the need for an outside. OD focuses on the elevation of an organization to a higher level of functioning by improving the performance and satisfaction. takes actions for intervention. identity. The change agent is a humanist seeking to get a humanistic philosophy in the organization. participation. 3. growth. (b) Problems of human satisfaction and development. 4. and mutual influence. A change agent in OD process does not just introspect the people and introduce changes. 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. Thus. evaluates these data. At the individual level. interactive. collects relevant data. or isolated problems. 5. 7. OD efforts are not one-shot actions. He designs intervention strategies based on these data. rather. Action research is the basis for such intervention. further more. and integrate individual and organizational goals. the importance and centrality of goals and objectives and the different role requirements . The relationship involves mutual trust. so the methods of attaining these goals should also change. he conducts surveys. they are ongoing. 3. OD attempts to provide opportunities to be µhuman¶ and to increase awareness. There is a close working relationship between the change agent and the target organizational members to be changed.

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

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

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

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

2. 3. problem-focused µnature of OD¶ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. The participative. ±±±±±±±±± is a process which includes leadership behaviours and human resource practices. 2. Define OD. _____________is a short-term strategy. Distinguish between µorganizational development¶ and µmanagement development¶.1. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides.11 Answers to SAQs and TQs SAQs: 1.10 Terminal Questions 1. Top management 2. OD is the ultimate remedy for organizational improvements and developments. Empowerment 4. Peter Senge . 4. 3. 3. 5. Who is associated with the ³Learning Organizations´? 5. 3. Organization development should be led and supported by ±±±±±±±. collaborative. 4. ±±±±±±± is associated with ³Liberation Management´. Explain the various characteristics of OD. What are the problems involved in the implementation of OD? 3. But OD aims at changing the entire organizational climate where the managers work. There is no µquick fix¶ to organizations¶ problems. Tom Peters 3. Explain its salient features. State the various roles of OD. Management development aims at developing the managers individually. OD focuses on culture and processes.

6 Team-building . Refer section 3. Refer section 3. Refer section 3. Refer section 3.3 3.Organization Development ± Interventions Structure: 4. Management development Answers to TQs: 1. MU0002-Unit-04.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .5 Leadership Development 4.3 Process Consultation 4.2 2.Organization Development ± Interventions Unit-04.4 Grid Training 4. Refer section 3.1 Introduction Objectives 4.7 5.2 Survey Feedback 4.6 4.5.

10 Summary 4. the classification appears to be more relevant because it may specify the range of change that an organization requires. interpersonal level. various consultants and practitioners have different opinions about the activities which can be included in interventions. Therefore. French and Bell have suggested twelve families of OD interventions: diagnostic. process consultation. 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. Further.11 Terminal Questions 4. Thus. 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. the classification of OD interventions shows variation. techno-structural activities. Interventions constitute the action thrust of organization development.4. and organizational level. they make things happen. other techniques like process . management grid. People¶s behaviour may be relevant to understand at individual level. grid training. Nevertheless.1 Introduction OD interventions refer to various activities which a consultant and client organization perform for improving organizational performance through enabling organizational members better manage their behaviour. and survey feedback method. 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. survey feedback.12 Answers to SAQs and TQs 4. interventions may be required to change people at all these levels. many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others. 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. work group. Subsequently.9 Role of Change Agents Self Assessment Questions 4.7 Inter Group Development 4. education and training. inter-group activities. inter-group level.8 Change Agents 4. mediation and negotiation activities. For example. group level. However. team-building. Historically.´ There are various OD interventions and they are classified in different ways. OD efforts were attempted through sensitivity training. and organizational culture.

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

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

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

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

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

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

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

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

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

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

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

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

Refer section 4. 4. and Beliefs in Organization Development Unit-05-Values.2. What is survey feedback as an intervention of OD? How does it provide base for other OD interventions? 3. Assumptions. 3. Explain Change agents and discuss the role of change agents in detail. MU0002-Unit-05-Values.4 2. Refer section 4.12 Answers to SAQs and TQs SAQs: 1. Refer section 4. Assumptions.2 3. and Beliefs in Organization Development Structure: 5.6 4. Data collection 2. Refer section 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Social loafing Answers to TQs: 1.1 Introduction . What is team-building? What are the stages of life cycle of a team? 4. Blake and Mouton.

and beliefs constitutes an integral part of organization development.2 Implications for Dealing with Groups 5. 5.5. you will be able to: · Explain the meaning of values. beliefs and assumptions.2 Definitions 5.6 Summary Self Assessment Questions 5. beliefs and assumptions. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers. assumptions. · State the implications of OD values and assumptions.5.1 Implications for Dealing with Individuals 5. · Give the statement of OD values and assumptions.4 Early Statements of OD Values and Assumptions 5. shaping the goals and methods of the field and distinguishing OD from other improvement strategies.3 Chronology of Events in Management and Organization Thought 5.5.3 Implications for Designing and Running Organizations 5. · List the chronology of events of values. Most of these beliefs were formulated early in the development of the field.7 Terminal Questions 5.2 Definitions .5 Implications of OD Values and Assumptions 5. and they continue to evolve as the field itself evolves.8 Answers to SAQs and TQs 5.1 Introduction A set of values. Objectives: After studying this unit.Objectives 5.

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

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

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

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

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

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

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

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

7 Terminal Questions 1. Values. 2. 5. Values. Values are also beliefs. The concept of ±±±±±±±±±± was introduced by MaxWeber.W. _______________ gave theory X and theory Y. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. Taylor¶s principles of scientific management. Cognitive .The field of organization development rests on a foundation of values and assumptions about people and organizations. Write a note about F. 3. State the assumptions of Theory X and Theory Y.8 Answers to SAQs and TQs SAQs: 1. 5.6 Summary The field of OD rests on a foundation of values and assumptions about people and organizations. Values. Self Assessment Questions 1. assumptions and beliefs help to define what OD is and guide its implementation. __________ is associated with scientific management. 5. values. Define concepts. optimistic and democratic. beliefs and assumptions are cognitive facts. and assumptions are all ±±±±±±±±±± facts. OD values tend to be humanistic. A belief is a proposition about how the world works that the individual accepts as true. These beliefs help to define what OD is and guide its implementation. beliefs and assumptions. This discussion was intended to articulate an appreciation of OD values and explain where they came from. beliefs. Chronology of events in management and OD tremendously influenced OD practitioners. but are widely accepted today. The outcome of ±±±±±±±± was that people were not cogs and organizations were not machines. 3. 2. What was the outcome of Hawthorne Experiments? 4. These OD values were considered revolutionary when they emerged in the 1950s. 4. 5.

MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6. Refer section 5.1 Kurt Lewin and Friends 6. F.3 Copyright © 2009 SMU Powered by Sikkim Manipal University .3 5. Taylor 3.3 3. Refer section 5.2.2 Models and Theories of Planned Change 6. Refer section 5.2 2.2.2. Hawthorne experiments 5. Bureaucracy 4.3 4.1 Introduction Objectives 6. Refer section 5.2 Beyond the Quick Fix . W. Douglas McGregor Answers to TQs: 1. Refer section 5.

In this discussion.8 Applied Behavioural Science 6.6.5 Teams and Teamwork 6.3 Socio-technical Theory and Open Systems Planning 6.3.3.2 Congruence among System Elements 6.3.11 Terminal Questions 6. Objectives: After studying this unit.12 Answers to SAQs and TQs 6.3 The Burke-Litwin Model of Organizational Change 6.3.10 Summary 6.1 The Nature of Systems 6. art and science which form the knowledge base upon which OD is constructed.2. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning.4 Porras and Robertson Model of Organizational Change 6.4 Participation and Empowerment 6. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs.6 Parallel Learning Structures 6.3 Systems Theory 6.7 A Normative ± Re-educative Strategy of Changing 6. you will be able to: .9 Action Research Self Assessment Questions 6.4 Open Systems Thinking 6.2.1 Introduction This unit describes the foundations of organization development theory and practice.

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

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

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

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

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

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

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

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

5: A Change-based Organizational Framework 6. Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950. 6.3 Systems Theory A second foundation of organization development is systems theory. Keep this framework in mind as you read the units on OD interventions because all interventions target one or more factors shown in figures. describes the characteristics of systems.4: Organizational Work-Setting Factors This model is extremely useful for OD practitioners and organizational leaders. Fig. This section explains systems theory. Systems . and Katz and Kahn were the first to apply open systems theory to organizations in 1966. which views organizations as open systems in active exchange with their environment. 6.Fig. and shows how systems theory enhances the practice of OD.

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

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

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

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

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

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

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

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

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

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

i. OD practitioners know about these patterns through research and theory. The principles of diagnosis and of treatment constitute the principles of practice. Burke writes: ³If one attempts to change an attitude or the behaviour of an individual without attempting to change the same attitude or behaviour in the group to which the individual belongs. the treatment typology allows the practitioner to know what remedial efforts to apply to correct the problem. hopefully. or practice. placing it in a classification scheme or typology.´ Norms help determine individual behaviour and a normative-re-educative strategy of changing pervades the practice of OD. and finally evaluating the effects of the treatments." applied science. thereby solving the problem. failure negating it and thus requiring re-diagnosis. OD is the application of behavioural science knowledge. lawful patterns of events produce effectiveness and ineffectiveness. A conventional distinction is made between (1) "pure" or basic science. Each type description of the diagnostic typology contains implications for a certain type of treatment. and skills in ongoing systems in collaboration with system members. not the individual. The practitioner examines the problem situation. the major leverage point for change is at the group level. by modifying a group norm or standards. for example. then the individual will be a deviate and either will come under pressure from the group to get back into line or will be rejected entirely. then selecting and implementing treatments based on the diagnosis. pressing problems. Thus." Both diagnosis and treatment consist of observing a situation and. with their elaborations and implications constitute practice theory. on the basis of which he or she prescribes a solution that. . The diagnostic typology allows the practitioner to know what category of situation he or she has examined. the object of which is knowledge for its own sake. Although human behaviour in organizations is far from an exact science.8 Applied Behavioural Science This foundation of OD relates to the primary knowledge base of the field. norms can best be changed by focusing on the group. The practitioner uses treatment as the empirical test of his diagnosis. on the basis of selected variables." the OD practitioner works: first diagnosing the situation. success corroborating the diagnosis.Because norms are socially accepted beliefs held by groups about appropriate and inappropriate behaviours. applied science or practice. This process is customarily referred to as diagnosis and treatment. 6. OD emphasizes the latter. behavioural science knowledge. and (2) "technology. The aim of this discussion is to look briefly at how behavioural science knowledge becomes applied behavioural science knowledge. Greenwood states: ³The diagnostic and treatment typologies are employed together. re-establishes the equilibrium.e.. practices. Greenwood discusses the activities of the practitioner as follows: "The problem that confronts a practitioner is customarily a state of disequilibrium that requires rectification. the object of which is knowledge to solve practical. On this point.´ From this "practice theory.

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

Action research model combines learning and doing.´ 5. 6. Systems theory views organizations as open systems in active exchange with their environment. The Burke-Litwin model emphasized on first-order and second-order change. 4.´ Comment on this statement. Explain Kurt Lewin¶s models and theories of planned organizational change. Ralph Kilmann 3. Transactional change .12 Answers to SAQs and TQs SAQs: 1. 2. 6. ±±±±±±±±±± gave the model ³Beyond the Quick Fix´. OD interventions alter features of the work setting causing changes in individuals¶ behaviours. ³Work teams are building blocks of organizational development. A fundamental belief in OD is that work teams are the building blocks of organizations. _____________ means sum of the efforts of team members is far greater than the sum of individual efforts of members.11 Terminal Questions 1. 4. 3. 3. 6. 2.1. What are first-order and second order change according to Burke-Litwin Model of organizational change? Explain. Bring out the essence of ³managing beyond the quick fix´ model of organizational development. What are the features of systems theory of organizational development? 5. First²order change is also called ___________. Ralph Kilmann specified the critical leverage points for organizational change. A _____________ is defined as ³a set of elements standing in interaction.10 Summary The foundations of organizational development form the theoretical and practice underpinnings of the field. In parallel learning structures members have to think and behave in ways that are different from the normal roles and rules of the organization. which in turn lead to individual and organizational improvements is the principle of Porras and Robertson model organizational change. ±±±±±±±±±± means moving to new level of behaviour. Unfreezing 2. Kurt Lewin introduced two ideas about change the first idea states that what is occurring at any point in time is a resultant in a field of opposing forces and the second is the model of the change process.

1 2.3 4.4. Refer section 6.6 Summary .2.3 5.3 Types of Organization Culture.2. Refer section 6. MU0002-Unit-07-Organization Culture and Climate Unit-07-Organization Culture and Climate Structure: 7.2 Characteristics of Organization Culture 7.2 3.4 Organization Culture and Effectiveness 7.1 Introduction Objectives 7.2.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .Refer section 6. Synergy Answers to TQs: 1. Refer section 6. System 5. Refer section 6.5 Developing and changing Organization Culture Self Assessment Questions 7. 7.

values. the culture of a large. discovered. organizational culture is the personality of the organization. what they brag about. Standards of behavior exist. · Discuss about developing and changing organization culture. do not do too little?´ . Which in many organizations come down to ³Do not do too much. Culture is comprised of the assumptions.1 Introduction Basically. Observed behavioral regularities. Some of the most readily agreed upon are the following: 1. and rituals related to deference and demeanor. When organizational participants interact with one another. you will be able to: · Understand Organization Culture. 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. they use common language. For example. Culture is one of those terms that¶s difficult to express distinctly. thinking. The concept of culture is particularly important when attempting to manage organization-wide change. for-profit corporation is quite different than that of a hospital which is quite different than that of a university. terminology. Norms. Comprehensively organization culture is the pattern of basic assumptions that is invented. but also changing the corporate culture as well. norms and tangible signs (artifacts) of organization members and their behaviors. including guidelines on how much work to do.7. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. organizational change must include not only changing structures and processes. what members wear. Members of an organization soon come to sense the particular culture of an organization.8 Answers to SAQs and TQs 7. Practitioners are coming to realize that. 2.7 Terminal Questions 7. and feeling in relation to these problems (Schein. but everyone knows it when they sense it. ± similar to what you can use to get a feeling about someone¶s personality. etc.2 Characteristics of Organization Culture Organizational culture has a number of important characteristics. and validated enough to be taught to new members as the correct ways of perceiving. 7. Objectives: After studying this unit. despite the best-laid plans. 1986). Martin and Meyerson.

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

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

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

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

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

8. Organizations to be successful must be efficient and effective. 7.8 Answers to SAQs and TQs SAQs: 1. ________cultures are outward looking. Move quickly and decisively to build momentum and to defuse resistance to the new culture. system-resource approach. 3. Factors in organizational effectiveness include casual variables. 9. effectiveness through adaptive-coping cycle has been discussed. ___________are those factors that influence the course of development within an organization and its results or accomplishment. 2. Organizational effectiveness can be measured through various approaches. Self Assessment Questions 1. Finally. intervening variables and end-result variables and there exists interrelationship among these variables.goal approach. Discuss the development and change of organizational development. Stay the course by being persistent. are particularly driven by results and are often very competitive. 7. Explain the characteristics of organization culture. and strategic constituencies approach. behavioural approach. 3.7 Terminal Questions 1. _____are the visible manifestations of culture as seen in the physical and social environment of the organization. Briefly explain different types of organizational culture. Market 3. 7. Artifacts 2. Effectiveness of an organization can be increased through economic man approach and administrative man approach.6 Summary Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. 2. Causal variables Answers to TQs: .

Refer section 7. Politics and Organization Development Unit-08. MU0002-Unit-08.2 2.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .1.Power.6 The Role of Power and Politics in the Practice of OD 8.7 Operating in a Political Environment 8.1 Introduction Objectives 8.10 Terminal Questions . Politics and Organization Development Structure: 8.3 3. Refer section 7.4 Theories about the Sources of Social Power 8.3 Two Faces of Power 8.8 Acquiring and using Power Skills Self Assessment Questions 8.5 Organizational Politics Defined and Explored 8. Refer section 7.9 Summary 8.2 Power Defined and Explored 8.Power.

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

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

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

In 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.

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

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

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

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

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

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

4 3.4 Management By Objectives 9.6 Quality of Work Life Projects .5. Refer section 8. Refer section 8.2 2.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 8.5 4.1 Introduction Objectives 9.3 Socio Technical Systems 9.5 Quality Circles 9. Personality Answers to TQs: 1.Refer section 8.2 Meaning and Definitions 9. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9.6 5. Refer section 8.

· Discuss the parallel Learning Structures. These programs are derived from careful diagnosis. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design.9 Reengineering Self Assessment Questions 9. · Explain Total Quality Management. An organization development intervention is a sequence of activities. These methods are receiving increasing attention in Organization Development. organizational problems may repeat. Nothing is permanent except change because change is permanently changing.11 Terminal Questions 9. you will be able to: · Explain the Socio technical change. Objectives: After studying this unit. actions. events intended to help an organization improve its performance and effectiveness.7 Parallel Learning Structures 9. In this dynamic and fluid environment.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future. · Discuss the Management By Objectives · Explain the Quality Circles.8 Total Quality Management 9.10 Summary 9. · Explain Reengineering. .12 Answers to SAQs and TQs 9. One important intervention technique is Technostructural interventions because these are related to technical and structural issues such as how to divide labour and how to coordinate department which is related to Restructuring organization.9. These interventions vary from standardized program that have been developed and sometimes tailored program.

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

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

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

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

Knowledge Management involves capturing the organization¶s collective expertise wherever it resides (in databases.6 Quality of Work Life Based on the research of Eric Trist et al. . but in its contemporary form. The original idea of quality circles involved small groups of volunteers meeting on a regular basis. Parallel Learning Structures may be a form of Knowledge Management. at the Tavistcock Institute of Human Relations in London.6. Objective setting is a joint process through interaction between superior and subordinate. 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. · Make recommendations for improvement. each having three to fifteen members. The most distinguishing feature of QWL program is the development of self-managing work groups which consist of multi-skilled workers.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. this approach looked both at technical and human sides of organizations and how they are interrelated. information. in general. on paper. Groups representing various levels and functions work to open new channels of communication outside of and parallel to the normal. Quality circle program consists of several circles. and rewards. Recycling: Though appraisal is the last aspect of MBO process. Objectives are neither set at the top and communicated to the bottom nor are they set at the bottom and go up. knowledge. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. 9. quality groups are often compulsory and organized around specific work teams. 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.Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement. Quality circle requires a managerial philosophy and culture that promotes sharing power. hierarchical structure. It Consists of a steering committee and a number of working groups that: · Study what changes are needed in the organization. or in people¶s heads) and distributing it to the people who need it in a timely and efficient way. and · Then monitor the resulting change efforts. 9.5 Quality Circles Quality circle is one of the most popular methods in the USA which was originally developed in Japan in 1950s. it is used as an input for recycling objectives and other actions. appropriate feedback and employee discretion. which consequently result into high level of task variety. what happens at each level may affect other levels also. QWL programs. 9. Therefore.

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

ties reward to performance and increase workers knowledge and skills through extensive training. events intended to help an organization improve its performance and effectiveness. From a benefit cost analysis.12 Answers to SAQs and TQS SAQs: 1. Sociotechnical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. 9. events intended to help an organization improve its performance and effectiveness.10 Summary An organization development intervention is a sequence of activities. Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement. actions. There are a number of reasons why a consultant should consider employing a structural intervention. Drucker 3. TQM pushes decision making power downwards in the organization. Discuss Socio Technical Systems? 2. The term MBO was coined by _________ in 1964.1. 9. provides relevant information to all employees. An organization development __________ is a sequence of activities. Write a short note on Total Quality Management. structural Interventions compare quite favorably with all other alternatives. __________ represents a participative approach to employee involvement in problem solving and productivity improvement. What are the advantages of structural interventions? 3. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. Intervention 2.11 Terminal Questions 1. 2. Explain Management By Objectives? 4. 3. It is also called continuous quality improvement. consciously directed towards the effective and efficient achievement of organizational objectives. MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. 9. Quality circle Answers to TQs: . actions.

9 Answers to SAQs and TQs .3 Resistance to Change 10. MU0002-Unit-10-Managing Change in Organization Development Unit-10-Managing Change in Organization Development Structure: 10.2 3. Refer section 9.1.3 2.2 Nature of Change 10.6 Methods of Reducing Resistance to Change. 10.4 Causes for Resistance to Change.5 4.5 Impact of Change on the Future Manager 10. Refer section 9.1 Introduction Objectives 10. Self Assessment Questions 10.7 Summary 10.8 Terminal Questions 10. Refer section 9.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .Refer section 9.

Objectives: After studying this unit. However. Thus. indirectly. or social. When change occurs in any part of the organization.2 Nature of Change The term µchange¶ refers to an alteration in a system. biological. Organizational change is a continuous process. you will be able to: · Explain the meaning of organization change. structural arrangement. The type of new equilibrium depends on the degree of change and its impact on the organization. organizational change is the alteration of work environment in an organization. some changes which are of minor type may be absorbed by the existing equilibrium. others.whether physical.10. Nothing is permanent except change because change is permanently changing. and others. it disturbs the old equilibrium necessitating the development of a new equilibrium. It implies a new equilibrium between different components of the organization ± technology. · State the methods of reducing resistance to change. may require special change efforts. 3. and others. organizational change may have the following features: 1. which are major ones. Thus. Hence. Any change may effect the whole organization. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented). organizational problems may repeat. some parts may be affected directly. some parts of organization may be affected more. job design and people. They have illustrated it by comparing an organization to an air-filled . · Discuss the nature of change · Explain resistance to change and the factors which resist change. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future. In this dynamic and fluid environment. cope with the ongoing changes successfully in the first instance. 2. · Impact of change on future managers. and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other. 10. Newstrom and Davis have explained the impact of a change in any part of the organization on the total organization.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. less.

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

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.

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

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

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

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

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

many things about change can be made clear. It makes people feel that the organization needs their opinions and ideas and is unwilling to go ahead without taking them into account. It is easiest for management to deal with resistance when it is overt and immediate. thereby the people can build up the climate based on mutual trust and understanding which are essential for bringing organizational changes successfully. Such training techniques include role playing. or deferred. 2. _________ is the alteration of work environment in an organization. psychological factors. implicit. benefits of change. Economic factors. People tend to resist many types of changes because new habits or sacrifices are required. For instance. and how members contribute. immediate. 3. Participation: Participation helps to give people involved in the organizational change and inculcate a feeling of importance. a change is proposed and employees quickly respond by voicing . Group Dynamics Training for Change: Group dynamics also helps in providing various training programmes for accepting and implementing change. job design and people. It purports how the results are.such aspects as the reasons for change. Such training techniques provide understanding of behaviour. They must be made a party to the change rather than an agent for resistance to change. It would be prudent for management to take labour representatives into confidence before implementing any change. __________ are based on people¶s emotions. However. Those people who are directly affected by the change should be given opportunity to participate in that change before the final decisions are reached. psychodrama. and how the benefits of the meaningful and continuous dialogue are necessary. Even if only some of the members are affected by the change. The laboratory method provides a setting where group processes can be studied intensively. 3. It implies a new equilibrium between different components of the organization ± technology. taking whole of the group into confidence helps in maintaining a cooperative attitude. Resistance can be overt. Changes may be influenced by external and internal factors. Organizational change is the alteration of work environment in an organization. Research studies also support this aspect. The organization must regard the participation as meaningful and share the results of the change with its members. and sensitivity or T-group training. _________ helps to give people involved in the organizational change and inculcate a feeling of importance. Free flow of information helps people to understand the real picture of the change and many misunderstandings may be avoided. sentiments and attitudes towards change.Through the group contact. social factors. group resistance and vested interests. mere participation may not help. This is more important in the case of workers who themselves treat a separate group and do not identify with the management. 10.7 Summary Change is inevitable. It implies a new equilibrium between different components of the organization. 2. structural arrangement. Self Assessment Questions 1.

Thomson South Western. Participation Answers to TQs: 1. Reference: · Wendell L. · Cummings & Worley. P. 10. Refer section 10.6. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. Psychological factors 3. Why do organizations resist change? 3. Refer section 10. Regal Publications New Delhi.9 Answers to SAQs and TQS SAQs: 1. Modern Organization Development and Change. engaging in a work showdown. Organizational change 2..complaints. French and Cecil H. Bell. Organization Development & Change. or the like. New Delhi. 10. Jain. that is. Organization Development.. Explain the nature of change? 2. · J. through group dynamics. Thomson · Daft Richard L. Jr.Singh.management of Organization Change.4 3. at the level of individual and at the level of group. .2 2. Problem of overcoming resistance to change can be handled at two levels. threatening to go on strike. N. Refer section 10. Principles and Practices.Response Books. · Harigopal K. New Delhi.8 Terminal Questions 1. Prentice-Hall of India Private Limited. Organization Theory and Design. both at the formal and informal levels. P. eighth edition. Discuss the methods of reducing resistance to change.

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

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