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

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

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

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

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

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

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

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

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

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

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

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

2. environmental forces. co-ordinating. making strategic plans to deal plans and policies of the effectively with the organisation. i. 7. There are three levels of management-top. 6. counseling and effective leadership. 5. 8. organisations. _________. lower levels of management. 3. It is the management which transforms physical resources of an organization into productive resources.8 Summary Management is concerned with getting things done through other people. Self Assessment Questions 1.9 Terminal Questions 1. middle and lower. 1. motivating and controlling the efforts of others towards a specific objective. Still management is not completely a profession. Human skills are important at all managerial levels. public organisations in the private sector and non-business sector. DecisionMaking Administration determines Management decides who what is to be done and when it shall implement the is to be done. Explain its characteristics. Five M¶s of management (________.e. Usage of Term The term µadministration¶ is The term µmanagement¶ is often associated with widely used in business government offices. Managers perform different roles to discharge their responsibilities. .4. Lower level managers require and use a greater degree of technical skill and managers at higher levels use a greater degree of conceptual skill. Define management. 1. __________is principally the task of planning. Status Administration refers to Management is relevant at higher levels of management. ___________. Direction of It is concerned with leading It is concerned with Human Resources and motivation of middle level leading and motivation of executives. operative workforce for the execution of plans.. machinery and methods or ways of doing things) depends to a great extent on the quality of management. administrative decisions. objectives. Environment Administration has direct Management is mainly interaction with external concerned with internal environment of business and forces. Management is largely found at the middle and lower levels and administration is found at the higher levels. Management creates ________ and motivates employees to work harder and better by providing necessary guidance.

10 Answers to SAQs and TQs SAQs: 1. Discuss the importance of management. Bring out the difference between Administration and Management.1. 1.7 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 1.5 3.1 Introduction Objectives 2. materials. Money.4 Organizing . Refer section 1. manpower 3. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2. teamwork Answers to TQs: 1. 3.2 Process of Management 2.3 Planning 2.2.2. Management 2.3 2. Refer section 1.

9 Terminal Questions 2. in recent time. Controlling However. Management functions are as follows (Fayol. .1 Introduction Follett (1933) defined management as "the art of getting things done through people´. One can also think of management functionally. Commanding 4. as the action of measuring a quantity on a regular basis and of adjusting some initial plan. 1949): 1.2. Staffing. Organizing. Objectives: After this studying this unit. Motivating.10 Answers to SAQs and TQs 2. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent. · Explain different functions of management Process. · Explain Planning.8 Summary 2. Coordinating 5.7 Motivating Self Assessment Questions 2.5 Staffing 2. Planning 2.6 Directing 2. management functions have been regrouped into four categories. Directing. Organizing 3. you will be able to: · Define Management process.

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

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

Objectives are also called performance goals. It also helps in setting minimum acceptable standards or common-sense minimums. return on investment. the best strategy is one that fits the organization¶s strengths to opportunities in the environment. Are our rivals weak? 5. earnings per share. Set goals and objectives Strategic goals and objectives are developed to fill the gap between current capability and the mission. What are the new regulations? 6.1. organizations have longterm objectives for factors such as. Is there a shortage of resources? 4. Generally. as well as gap analysis. or outcomes of an organization against similar measures from other internal or external organizations. Are market tastes changing? 5. In which areas is the competition not meeting customer needs? 2. What are the possible new markets? 3. They are aligned with the mission and form the basis for the action plans of an organization. What is the strength of the economy? 4. Is there a possibility of growth of existing market?) Identifying threats involves the following: 1. Develop related strategies (tactical and operational) . Comparing the organization to external benchmarks (the best practices) is used to assess current capabilities. What substitute products exist? In general terms. Benchmarking systematically compares performance measures such as efficiency. The SWOT analysis is used as a baseline for future improvement. What are the emerging technologies? 6. Are there new competitors? 3. effectiveness. etc. In which areas does the competition meet customer needs more effectively? 2.

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

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

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

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

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

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

6 Copyright © 2009 SMU Powered by Sikkim Manipal University .7 Role of OD 3.8 Problems in OD .6 OD and Management Development 3. Reference 2.3 2.4 Categories of OD 3. SWOT 3. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3. Reference 2. Staffing Answers to TQs: 1. Reference 2.2 Definitions 3.3 Characteristics of OD 3.5 3.5 Goals of OD 3.1 Introduction Objectives 3.1. Follett 2.

and the organization¶s human and social processes. old jobs are being destroyed at an accelerating pace. and the constant challenge to maintain congruence among organizational dimensions such as technology. and changing customer demands. organizations and the individuals in them face an enormously demanding present and future. Simple survival ± continuing to have an adequate job ± is a major challenge today in the light of constant layoffs and cutbacks. and the like. challenges from turbulent environments. the answer is ³yes´. Organization development is a relatively recent invention. survive. . and attention was soon directed toward other human and social processes in organizations such as the design of work tasks. adapt. organization structure. OD focuses on issues related to the ³human side´ of organizations by finding ways to increase the effectiveness of individuals. Although new jobs are being created at record rates.9 Summary 3. take advantage of opportunities. maintaining dignity and purpose in pursuit of organizational goals. In summary.1 Introduction Organization development is the applied behavioural science discipline dedicated to improving organizations and the people in them through the use of the theory and practice of planned change.Self Assessment Questions 3.11 Answers to SAQs and TQs 3. and processes. Keeping organizations healthy and viable in today¶s world is a daunting task. Organizations face multiple challenges and threats today ± threats to effectiveness. efficiency. fighting obsolescence of one¶s knowledge and skills. And organization development (OD) is one of them. increased competition. organization development represents one of the best strategies for coping with the rampant changes occurring in the marketplace and society. strategy formulation and implementation. Are any strategies available to help people and organizations cope. organization development is a process of teaching people how to solve problems. and profitability. A variety of solutions exists.10 Terminal Questions 3. The field of OD grew rapidly in the 1970s and the 1980s with thousands of organizations in the private and public sectors using the theory and methods of OD with great success. and achieving human connectedness and community in the workplace. and learn how to do that better and better over time. and even prosper in these vexing times? Fortunately. teams. culture. strategy. Early returns were encouraging. We predict that organization development will be preferred improvement strategy in future. ³Knowledge´ work is replacing ³muscle´ work. Basically. conflict resolution. Today. Individuals in organizations likewise face multiple challenges ± finding satisfaction in and through work. 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.

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

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

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

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

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

and then. He shares a social philosophy about human values. 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. Action research is the basis for such intervention. 6. rather. 4. interactive. 7. Participation of Change Agent: Most OD experts emphasize the need for an outside. 5. and mutual influence. 3. A change agent in OD process does not just introspect the people and introduce changes. It recognizes that organizational goals change. participation. (b) Problems of human satisfaction and development. identity.4 Categories of OD Programmes In general. they are ongoing. Organization Development is inextricably linked with action. He designs intervention strategies based on these data. all types of experience requiring Organization Development efforts may be grouped into three categories: (a) Problems of destiny. Emphasis on Intervention and Action Research: OD approach results in an active intervention in the ongoing activities of the organization. and integrate individual and organizational goals. Rather. collects relevant data. and cyclic processes. and adaptability for the organization as a whole. 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¶. takes actions for intervention. temporary. joint goals and means. further more. Long-range Change: OD efforts are not meant for solving short-term. OD focuses on the elevation of an organization to a higher level of functioning by improving the performance and satisfaction. There is a close working relationship between the change agent and the target organizational members to be changed. it is a programme with a purpose that is to guide present and future action. 3. the importance and centrality of goals and objectives and the different role requirements . This is done to arrive at certain desirable outcomes that may be in the form of increased effectiveness. The change agent is a humanist seeking to get a humanistic philosophy in the organization. Key areas are the normative type of model. Thus. or isolated problems. The relationship involves mutual trust. so the methods of attaining these goals should also change. problem-solving. rather.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 revitalization. growth. They discourage µdo it yourself¶ approach. third party change agent. OD efforts are not one-shot actions. OD attempts to provide opportunities to be µhuman¶ and to increase awareness. evaluates these data. and (c) Problems of organizational effectiveness. he conducts surveys. At the individual level.

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

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

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

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

3. But OD aims at changing the entire organizational climate where the managers work. 3. 5.10 Terminal Questions 1. Management development aims at developing the managers individually. Organization development should be led and supported by ±±±±±±±. OD focuses on culture and processes. 4. Peter Senge .9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. Empowerment 4. 3. State the various roles of OD. ±±±±±±±±± is a process which includes leadership behaviours and human resource practices. What are the problems involved in the implementation of OD? 3. 2. Distinguish between µorganizational development¶ and µmanagement development¶. Top management 2.1. 4. collaborative.11 Answers to SAQs and TQs SAQs: 1. The participative. Tom Peters 3. _____________is a short-term strategy. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. 2. OD is the ultimate remedy for organizational improvements and developments. There is no µquick fix¶ to organizations¶ problems. 3. problem-focused µnature of OD¶ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. Explain the various characteristics of OD. Who is associated with the ³Learning Organizations´? 5. Define OD. ±±±±±±± is associated with ³Liberation Management´. Explain its salient features.

Management development Answers to TQs: 1.Organization Development ± Interventions Structure: 4. MU0002-Unit-04.7 5.2 2.3 Process Consultation 4.6 4.5.6 Team-building . Refer section 3. Refer section 3. Refer section 3.5 Leadership Development 4.1 Introduction Objectives 4.3 3. Refer section 3.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .Organization Development ± Interventions Unit-04.2 Survey Feedback 4.4 Grid Training 4. Refer section 3.

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. group level. other techniques like process . process consultation.9 Role of Change Agents Self Assessment Questions 4. education and training. the classification of OD interventions shows variation. techno-structural activities. various consultants and practitioners have different opinions about the activities which can be included in interventions. many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others. Therefore. 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. interventions may be required to change people at all these levels. team-building. Subsequently. inter-group activities. they make things happen. OD efforts were attempted through sensitivity training.7 Inter Group Development 4. mediation and negotiation activities.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. the classification appears to be more relevant because it may specify the range of change that an organization requires.8 Change Agents 4.10 Summary 4. Thus. 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. and survey feedback method.´ There are various OD interventions and they are classified in different ways. For example. work group.11 Terminal Questions 4. survey feedback. People¶s behaviour may be relevant to understand at individual level. grid training. management grid. However.12 Answers to SAQs and TQs 4. Interventions constitute the action thrust of organization development.4. Historically. This classification of OD interventions is very comprehensive and many activities do not strictly form the part of OD as process of organizational improvement but other methods of improving the performance of the organization. inter-group level. French and Bell have suggested twelve families of OD interventions: diagnostic. interpersonal level. Nevertheless. and organizational level. Further. 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

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

They have maintained that ³managerial and team effectiveness can be taught to managers with outside assistance. the various efforts from phase 1 to phase 5 are evaluated and critical analysis is made. During drastic change times. Systematic Critique: In this stage. lead. you need to be aware that there are three distinct times zones where leadership is important. the focus shifts to the total organization and to develop skills necessary for organizational excellence. it discounts reality. some of them have not supported the claims made by Blake and Mouton. Each group may be given assignment to evolve strategy for making ideal organization with the help of the consultant. 6. Implementing the Ideal Strategic Model: The implementation stage includes the building of the organization on the model of ideal organization on the basis of concepts developed under stage 4. The literature on the subject indicates that the nature of the change is secondary to the perceptions that employees have regarding the ability. The strategy is then implemented. and credibility of senior and middle management. they maintained the same stand.4. employees will perceive leadership as supportive. The members of the organization are trained for achieving this excellence. 5. clearly the most important determinant of "getting through the swamp". 4.5 Leadership Development When change is imposed (as in downsizing scenarios). Furthermore. in spite of these criticisms. We can call these Preparing For the Journey. Grid training programme is criticized on the basis that it lacks contingency approach and. Slogging Through The Swamp. Evaluation of Grid Training Most of the support of grid training has come from its originators-Blake and Mouton. employees will look towards the leaders for a number of things. the various programmes may be redesigned. The Role of Leadership In an organization where there is faith in the abilities of formal leaders. grid training is a non-rigorous method. Also during these times of change. Further. We will look more carefully at each of these. it appears that this type of educational strategy can help to make significant contributions to organizational effectiveness. while at the same time . The action is designed to identify the characteristics of the ideal organization. If you are to manage change effectively. competence. In this light. confident and effective decision-making. concerned and committed to their welfare. and After Arrival. Developing Ideal Strategic Corporate Model: At this stage. and regular. therefore. Though research studies on the application of grid training are not many. is the ability of leadership to«well. complete communication that is timely. employees will expect effective and sensible planning.´ In a later work. grid training has some positive contributions for organizational effectiveness. The analysis will bring out the shortcomings that may be there.

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

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

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

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

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

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

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

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

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

Blake and Mouton. Data collection 2.12 Answers to SAQs and TQs SAQs: 1. and Beliefs in Organization Development Structure: 5.4 2. 3.2. 4.6 4. Refer section 4. Social loafing Answers to TQs: 1. and Beliefs in Organization Development Unit-05-Values.1 Introduction . MU0002-Unit-05-Values. Assumptions. Explain Change agents and discuss the role of change agents in detail. Refer section 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . What is survey feedback as an intervention of OD? How does it provide base for other OD interventions? 3. Refer section 4. Refer section 4.2 3. Assumptions. What is team-building? What are the stages of life cycle of a team? 4.

and beliefs constitutes an integral part of organization development. beliefs and assumptions. Objectives: After studying this unit. assumptions.3 Chronology of Events in Management and Organization Thought 5.7 Terminal Questions 5.1 Introduction A set of values.4 Early Statements of OD Values and Assumptions 5.8 Answers to SAQs and TQs 5.2 Definitions 5. shaping the goals and methods of the field and distinguishing OD from other improvement strategies. · State the implications of OD values and assumptions.5. and they continue to evolve as the field itself evolves. 5. you will be able to: · Explain the meaning of values.5.2 Implications for Dealing with Groups 5. Most of these beliefs were formulated early in the development of the field.1 Implications for Dealing with Individuals 5. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers.2 Definitions .5 Implications of OD Values and Assumptions 5. · Give the statement of OD values and assumptions. beliefs and assumptions.3 Implications for Designing and Running Organizations 5.Objectives 5. · List the chronology of events of values.6 Summary Self Assessment Questions 5.5.

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

The Hawthorne Studies (1940s to 1960) spawned the human relations movement that was in full flower from the 1930s to the 1960s. Scientific management as the way to organize work and bureaucracy as the way to organize people were the prevailing paradigms for organizations in the early 1900s. their feelings and attitudes about the work. the work environment. and White demonstrated that democratic leadership was superior to authoritarian leadership and laissez-faire leadership in affecting group climate and group performance. Mary Parker Follett (1926). The human relations movement advocated participative management. Democratic leadership seemed to bring out the best in the groups. organizations were not machines. Group Dynamics (1940) The scientific study of groups using experimental research methodswas launched by Kurt Lewin and his students. greater attention to workers social needs. training in interpersonal skills for supervisors. The Functions of the Executive by Chester 1. Group norms had more powerful effects on productivity than economic incentives. and a general humanizing of the workplace. much of the research. but also contained serious flaws that led to unintended consequences. and the supervisor determined their performance. Barnard (1938) presented insights from his experiences as President of the New Jersey Bell Telephone Company. In a sense. A strong hierarchy of authority. and rigid procedures would create a well-oiled human machine called the organization. Research by Lewin. These approaches possessed many desirable features. y y y y y y y . a management theorist and astute observer of labour-management relations. and by Homans in 1950 profoundly and irreversibly affected people s beliefs about organizational behaviour. People came to work as whole people. impersonal rules. The Famous Hawthorne Studies (1927 to 1932) were conducted at the Hawthorne plant of Western Electric Company. and practice since the late 1920s have focused on the shortcomings of these two paradigms and how to overcome the limitations. His acceptance theory of authority proposed that authority derives from the willingness of subordinates to comply with directions rather than from position power. extensive division of labor. apathy. Reports on these studies by Mayo in 1933 and 1945. The research demonstrated the primacy of social factors on productivity and morale. aggressiveness and poor performance. by Roethlisberger and Dickson in 1939. Lippitt (1939). Their simple. People were not cogs. Much of her career was devoted to finding ways to reduce adversarial relationships between workers and management. Barnard viewed organizations as social systems that must be effective (achieve goals) and efficient (satisfy the needs of employees). repetitive jobs left them feeling alienated and dispirited. wrote an article on The Giving of Orders advocating participative leadership and joint problem-solving by labour and management. authoritarian leadership caused dependency. Some early experiments were conducted in the late 1930s.y The great German sociologist Max Weber (1922) introduced the concept of bureaucracy as the best. most efficient way to organize people. theory.

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

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

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

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

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

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

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

Refer section 5.2 Beyond the Quick Fix . Douglas McGregor Answers to TQs: 1.2 2.3 4.3 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 5. Bureaucracy 4. W. Refer section 5.3 3.3 5. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6. Refer section 5.1 Introduction Objectives 6.2.2.1 Kurt Lewin and Friends 6. Refer section 5.2 Models and Theories of Planned Change 6.2. Hawthorne experiments 5. F. Taylor 3.

3 Systems Theory 6.3.2.12 Answers to SAQs and TQs 6. art and science which form the knowledge base upon which OD is constructed.1 The Nature of Systems 6.6 Parallel Learning Structures 6.6. Objectives: After studying this unit.10 Summary 6.4 Open Systems Thinking 6.3 Socio-technical Theory and Open Systems Planning 6.9 Action Research Self Assessment Questions 6.2 Congruence among System Elements 6.5 Teams and Teamwork 6.8 Applied Behavioural Science 6.7 A Normative ± Re-educative Strategy of Changing 6.2.1 Introduction This unit describes the foundations of organization development theory and practice.3.3.11 Terminal Questions 6.4 Participation and Empowerment 6. In this discussion. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs.3 The Burke-Litwin Model of Organizational Change 6.4 Porras and Robertson Model of Organizational Change 6. you will be able to: . you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning.3.

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

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

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

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

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

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

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

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

Fig.3 Systems Theory A second foundation of organization development is systems theory. and shows how systems theory enhances the practice of OD. which views organizations as open systems in active exchange with their environment.Fig. Systems . Keep this framework in mind as you read the units on OD interventions because all interventions target one or more factors shown in figures. and Katz and Kahn were the first to apply open systems theory to organizations in 1966. 6.4: Organizational Work-Setting Factors This model is extremely useful for OD practitioners and organizational leaders. 6. describes the characteristics of systems. Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950.5: A Change-based Organizational Framework 6. This section explains systems theory.

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

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

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

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

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

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

Teams at Motorola produced its bestselling cellular phones. A second fundamental belief is that teams must manage their culture. Teams and teamwork are "in. many tasks are so complex they cannot be performed by individuals. the noun team has become a verb. and practice attest to the central role teams play in organizational success. Teams and teamwork are part of the foundation of organization development. and capable of having an impact on the system in which they are embedded. people must work together to accomplish them. "The evidence is abundantly clear: Effective teams produce results far beyond the performance of unrelated individuals. as a team. and team-related acronyms abound-SDTs (self-directed teams). Synergy is a principal reason teams are so important. Teams and teamwork are among the "hottest" things happening in organizations today ± gurus extol the virtues of teams. Team Saturn produced the Saturn automobile.both views contain valid ideas: for example. Third. Teams are important for a number of reasons: First. teams at 3M generate the hundreds of innovations that keep 3M ahead of its competition. teams create synergy. Theory. that is. employees must choose to be empowered. is not something that management does to employees. and relationships if they are to be effective. HPOs (high-performance organizations). If the team. HPWSs (high-performance work systems). The message of this section is that putting those empowered individuals into teams creates extraordinary effects on performance and satisfaction. then. much individual behaviour is rooted in the socio-cultural norms and values of the work team. the organic approach unleashes talent and energy in people that are best channeled by providing clear guidelines and boundaries. to name just a few. teaming. STS (socio-technical systems). crossfunctional "design-build" teams developed the Boeing 777. the sum of the efforts of team members is far greater than the sum of the individual efforts of people working alone. the effects on individual behaviour are immediate and lasting. processes. Quinn and Spreitzer conclude: ³Empowerment. systems. They must see themselves as having freedom and discretion. confident about their abilities. . research. The previous discussion focused on empowerment and concluded that the act of empowering individuals greatly increased their performance and satisfaction. Second. QCs (quality circles). they must if personally connected to the organization. Team Taurus developed Ford¶s best-selling automobile.´ 6.5 Team and Teamwork A fundamental belief in organization development is that work teams are the building blocks of organizations. While management can create a context that is more empowering. changes those norms and values. but rather a mindset that employees have about their roles in the organization.

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

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

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

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

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

6. 6.12 Answers to SAQs and TQs SAQs: 1.´ 5. which in turn lead to individual and organizational improvements is the principle of Porras and Robertson model organizational change.10 Summary The foundations of organizational development form the theoretical and practice underpinnings of the field. Ralph Kilmann specified the critical leverage points for organizational change. ±±±±±±±±±± gave the model ³Beyond the Quick Fix´. _____________ means sum of the efforts of team members is far greater than the sum of individual efforts of members. Ralph Kilmann 3. First²order change is also called ___________. Unfreezing 2.1. 4. 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. 3. Systems theory views organizations as open systems in active exchange with their environment. ±±±±±±±±±± means moving to new level of behaviour. Transactional change . 2.11 Terminal Questions 1. What are the features of systems theory of organizational development? 5. What are first-order and second order change according to Burke-Litwin Model of organizational change? Explain.´ Comment on this statement. 6. Explain Kurt Lewin¶s models and theories of planned organizational change. A _____________ is defined as ³a set of elements standing in interaction. 3. The Burke-Litwin model emphasized on first-order and second-order change. In parallel learning structures members have to think and behave in ways that are different from the normal roles and rules of the organization. Action research model combines learning and doing. Bring out the essence of ³managing beyond the quick fix´ model of organizational development. OD interventions alter features of the work setting causing changes in individuals¶ behaviours. ³Work teams are building blocks of organizational development. 4. 2. A fundamental belief in OD is that work teams are the building blocks of organizations.

Refer section 6.2 Characteristics of Organization Culture 7.3 Types of Organization Culture.2.5 Developing and changing Organization Culture Self Assessment Questions 7.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .2.2 3. MU0002-Unit-07-Organization Culture and Climate Unit-07-Organization Culture and Climate Structure: 7.4 Organization Culture and Effectiveness 7.6 Summary .1 2. Refer section 6.1 Introduction Objectives 7. Refer section 6.4.3 4. Refer section 6.2. Synergy Answers to TQs: 1. System 5. Refer section 6.3 5. 7.

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

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

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

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

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

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

Effectiveness of an organization can be increased through economic man approach and administrative man approach. behavioural approach.6 Summary Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. Stay the course by being persistent. ___________are those factors that influence the course of development within an organization and its results or accomplishment. Discuss the development and change of organizational development.8 Answers to SAQs and TQs SAQs: 1. and strategic constituencies approach. 7. 9. Market 3. Move quickly and decisively to build momentum and to defuse resistance to the new culture. 7. ________cultures are outward looking. system-resource approach.7 Terminal Questions 1. 3. 3. 2. _____are the visible manifestations of culture as seen in the physical and social environment of the organization. Explain the characteristics of organization culture. are particularly driven by results and are often very competitive. Organizational effectiveness can be measured through various approaches. Artifacts 2. intervening variables and end-result variables and there exists interrelationship among these variables. 7. 2. Self Assessment Questions 1.8. Causal variables Answers to TQs: .goal approach. Factors in organizational effectiveness include casual variables. effectiveness through adaptive-coping cycle has been discussed. Finally. Organizations to be successful must be efficient and effective. Briefly explain different types of organizational culture.

MU0002-Unit-08.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .5 Organizational Politics Defined and Explored 8.9 Summary 8.3 Two Faces of Power 8. Refer section 7.3 3. Refer section 7.4 Theories about the Sources of Social Power 8.10 Terminal Questions .1.1 Introduction Objectives 8.Power.7 Operating in a Political Environment 8.2 2.6 The Role of Power and Politics in the Practice of OD 8. Politics and Organization Development Structure: 8. Politics and Organization Development Unit-08.Power.8 Acquiring and using Power Skills Self Assessment Questions 8. Refer section 7.2 Power Defined and Explored 8.

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

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

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

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.

Paying attention to these sources of power will enhance the likelihood of success of OD programs. problem solving. First. . the resources of OD expertise and ability to help organizational subunits solve their pressing problems. and ability to gain organizational support. it will gain more power. expert power (the consultant possesses expert knowledge). preferably multiple sponsorship.7 Operating in a Political Environment We will present some general observations on operating in a political environment. 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. Michael Beer has identified additional means by which an OD group can gain and wield power in organizations: 1. informational power (the consultant has a wealth of information about the strengths and weaknesses of the organization). 6.8. Resource management: Power accrues to those who control resources-in this case. Stature and credibility: Beer notes that power accrues to those who have been successful and effective. If the OD group is cohesive and free of internal dissention." 4. Success leads to credibility and stature. These sources of influence produce a substantial power base that will enhance the likelihood of success. 2. Early success in the OD program and its usefulness to key managers of the organization helps promote this reputation. both as a person and as a professional. Skills such as listening. in powerful places. 3. Becoming a desired commodity as a person means being interpersonally competent and trustworthy. the OD consultant possesses power from the following bases: legitimate power (the OD program and consultant are authorized by the organization¶s decision makers). OD practitioners are likely to have high interpersonal competence by virtue of their training. acceptability. Group support: If the OD group is strong internally. experience. 5. organization development practitioners operate from a potentially strong power base they can use to advantage. and possibly referent power (others may identify with and be attracted to the consultant). and expertise. Political access and sensitivity: Cultivating and nurturing multiple relationships with key power figures in the organization will ensure timely information and multiple sources of support. communicating. followed by some rules of thumb for the OD practitioner. coaching. Competence: Demonstrated competence is the most important source of power."34 This maxim has been recognized for years under the heading of "get top-level support for the program. Rule One: Become a desired commodity. According to the framework of French and Raven. it will be strong externally. Sponsorship: "Organization development groups will gain power to the extent that they have sponsorship.

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

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

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

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

Power based on the power-receiver having identification with the power holder is called ±±±± ±±±±±±±. Harold Lasswell . 3. units or departments is most important in solving organizational problems. 8. 8. _____________ has identified two faces of power. when. 2. Describe briefly various theories of power.using power to operate effectively in organizations may help practitioner avoid the perils and pitfalls of power that "go with the territory" of organizational change.11 Answers to SAQs and TQs SAQs: 1. Organizational power is the ability of those who possess power to bring about the outcomes they desire. Self Assessment Questions 1.10 Terminal Questions 1. 8. 4. Power 2. Organizational politics involve intentional acts of influence to enhance or protect the self-interest of individuals or groups.. Referent power 4. emotions or behaviour of people. ±±±±±±±±±± is made up of Charisma. Power can be either positive or negative. ±±±±±± is the intentional influence over the beliefs. Identify the bases of individual power and the respective strategies for their success. 2. reputation and professional credibility. The OD practitioner needs both knowledge and skill in the arenas of organizational power and politics. when and how.9 Summary Power and politics are inseparable facts of organizational life. ±±±±±±±± defined politics as the study of who gets what. 3. 4. 5. Explain the role of power and politics in the practice of OD. Define organization politics. McClelland 3. and are amenable to positive control. Strategic-contingency model of power asserts that power that accrues to the individuals. and how. Organizational politics is defined as the study of who gets what. arise from known conditions. Define power in an organizational context and explain types of power. Power-dependence theory states that power is inherent in any social relationship in which one person is dependent on another. 5. Power and politics are similar in nature.

6 Quality of Work Life Projects .2 Meaning and Definitions 9. Refer section 8.Refer section 8. Refer section 8. Refer section 8.1 Introduction Objectives 9.5 4.2 2. Personality Answers to TQs: 1. Refer section 8.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .5 Quality Circles 9.6 5.5.3 Socio Technical Systems 9.4 Management By Objectives 9. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9.4 3.

These interventions vary from standardized program that have been developed and sometimes tailored program. 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. An organization development intervention is a sequence of activities. · Explain Total Quality Management. Nothing is permanent except change because change is permanently changing.10 Summary 9. actions.9. you will be able to: · Explain the Socio technical change. · Explain Reengineering.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival.11 Terminal Questions 9. These methods are receiving increasing attention in Organization Development.7 Parallel Learning Structures 9. In this dynamic and fluid environment. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design. . 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. events intended to help an organization improve its performance and effectiveness. organizational problems may repeat. Objectives: After studying this unit. These programs are derived from careful diagnosis. · Discuss the parallel Learning Structures.9 Reengineering Self Assessment Questions 9.12 Answers to SAQs and TQs 9. · Discuss the Management By Objectives · Explain the Quality Circles.8 Total Quality Management 9.

Organization Acceptance of Change. their attractiveness is also increased by the following advantages: 1. It could involve the following steps (Foster. organization theory. Structure changes are normally ³institutionalized´ and less subject to this problem. Pasmore. 1976. 4. Structural changes are consistent with their operating styles and are generally understood by practitioners. a predictable cost Implementation of group strategies involves significant long-term man-hour and consultant costs. This normally is a reasonable. Greater Predictability. and OD practice enables the change agent to estimate the probable consequences of the change. One problem with behavioral/ group interventions is the tendency for new managers or employees to discount or fail to continue the change program. Downsizing associated with restructuring. Managers and administrators are notoriously pragmatic. 5. Advantages of Structural Interventions There are a number of reasons why a consultant should consider employing a structural intervention. includes removing or adding layers to hierarchy. Once diagnosed and an appropriate correction developed. Cummings. change can be introduced relatively rapidly by top management. From a benefit cost analysis. Basic reinforcement theories. Cost is Low. meaning the major costs are associated with analysis and design of change. Succession Doesn¶t Destroy Change Effort.9. In addition. It endeavors to re-design the organization¶s structure. Changes can involve decentralization and centralization. 1988): ‡ Determining the environmental demands ‡ Creating a vision statement ‡ Educating organizational members . structural Interventions compare quite favorably with all other alternatives.2 Meaning and Definitions Structural Intervention is related to the changes that relate elements of organization to one another. and more critically. Weeks and months of group effort are saved. The cost of structural change is generally ³front-end´ loaded. Rapidity of change. 9.3 Socio Technical Systems Socio-technical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. 3. processes and functions to create a balance between the organization and its changing external environment. 2. 1967.

though not strictly an OD intervention in the sense in which other interventions have been discussed so far. In fact. operational managerial process for the effective utilization of material. Certain degree of overlapping is there. it has been defined as follows: MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. consciously directed towards the effective and efficient achievement of organizational objectives. On the other hand. MBO is likely to affect every management practice in the organization. often MBO provides the stimulus for the introduction of new techniques of . its features can be identified as follows: 1. therefore. Its basic idea has been derived from the concept of participative goal setting as a technique of OD. with objective orientation as its essence.‡ 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. 2.4 Management by Objectives Management by objectives (MBO). MBO employs several techniques but it is not merely the sum total of all these techniques. Since then. MBO is bound to have some relationship with every management technique. A management technique can be applied in selected parts of the organization and will have limited implications for its other parts. As an approach to management. Though there are some variations in the practices of MBO and. MBO is an approach and philosophy to management and not merely a technique. and human resources of the organization by integrating the individual with organization and organization with the environment.´ Based on the definition of MBO.´ 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. physical. The term MBO was coined by Drucker in 1964 when he emphasized the concept of managing by results. It is a particular way of thinking about management. its definitional aspect. many business and nonbusiness organizations have adopted this in some form or the other. non-specialist.

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

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

Quality circle requires a managerial philosophy and culture that promotes sharing power.6. Quality circle program consists of several circles. 9. Knowledge Management involves capturing the organization¶s collective expertise wherever it resides (in databases. information. · Make recommendations for improvement. Therefore. The most distinguishing feature of QWL program is the development of self-managing work groups which consist of multi-skilled workers.5 Quality Circles Quality circle is one of the most popular methods in the USA which was originally developed in Japan in 1950s. require joint participation by union and management in the process of work-designing. 9.7 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. It Consists of a steering committee and a number of working groups that: · Study what changes are needed in the organization. hierarchical structure. it is used as an input for recycling objectives and other actions. quality groups are often compulsory and organized around specific work teams. 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. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. Objectives are neither set at the top and communicated to the bottom nor are they set at the bottom and go up. appropriate feedback and employee discretion. Objective setting is a joint process through interaction between superior and subordinate. in general. Recycling: Though appraisal is the last aspect of MBO process. Parallel Learning Structures may be a form of Knowledge Management. which consequently result into high level of task variety. and rewards. The original idea of quality circles involved small groups of volunteers meeting on a regular basis.Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement. knowledge. QWL programs. each having three to fifteen members.6 Quality of Work Life Based on the research of Eric Trist et al. or in people¶s heads) and distributing it to the people who need it in a timely and efficient way. Some organizations have even gone as far as setting targets for the number of suggestions quality groups are expected to come up with. at the Tavistcock Institute of Human Relations in London. what happens at each level may affect other levels also. Groups representing various levels and functions work to open new channels of communication outside of and parallel to the normal. on paper. but in its contemporary form. 9. . this approach looked both at technical and human sides of organizations and how they are interrelated. and · Then monitor the resulting change efforts.

or restructuring activities without regard to present hierarchical or control procedures. statistical process control. Reengineering focuses on visualizing and streamlining any or all business processes in the organization. quality. It is very popular in USA in 1990s. assumes neither an upward flow of involvement nor that consensus decision making. It is also called continuous quality improvement. · Continuous search for sources of defects with a goal of eliminating them entirely. · A major emphasis on continuous learning.TQM pushes decision making power downwards in the organization. It seeks to make such processes more efficient by combining. self-managed teams and task forces. including the use of quality circles. · Top management support on an ongoing basis. · An emphasis on teams and teamwork. contemporary measures of performance. statistical quality control. such as cost. service.9. 9.9 Reengineering It is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical. · Daily operational use of the concept of internal customers. · An emphasis on measurement using both statistical quality control and statistical process control techniques. and speed. ties reward to performance and increase workers knowledge and skills through extensive training. Self Assessment Questions . Features that characterize TQM: · Primary emphasis on customers. · Competitive benchmarking. eliminating. · Participative management. A combination of a number of organization improvement techniques and approaches. Reengineering is a top-down process.8 Total Quality Management It is a long term effort that orients all of an organization¶s activities around the concept of quality. provides relevant information to all employees. and extensive use of employee participation.

The term MBO was coined by _________ in 1964. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. TQM pushes decision making power downwards in the organization. events intended to help an organization improve its performance and effectiveness. Drucker 3. Write a short note on Total Quality Management. 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. Discuss Socio Technical Systems? 2. actions. From a benefit cost analysis. __________ represents a participative approach to employee involvement in problem solving and productivity improvement.11 Terminal Questions 1. 9. provides relevant information to all employees. Sociotechnical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. events intended to help an organization improve its performance and effectiveness. An organization development __________ is a sequence of activities.1. It is also called continuous quality improvement. 3. 9. actions. ties reward to performance and increase workers knowledge and skills through extensive training.12 Answers to SAQs and TQS SAQs: 1. structural Interventions compare quite favorably with all other alternatives. Intervention 2. There are a number of reasons why a consultant should consider employing a structural intervention. 9.10 Summary An organization development intervention is a sequence of activities. 2. What are the advantages of structural interventions? 3. Quality circle Answers to TQs: . Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement. Explain Management By Objectives? 4.

6 Methods of Reducing Resistance to Change.1. Self Assessment Questions 10. MU0002-Unit-10-Managing Change in Organization Development Unit-10-Managing Change in Organization Development Structure: 10. Refer section 9. Refer section 9.1 Introduction Objectives 10.5 Impact of Change on the Future Manager 10.Refer section 9.2 Nature of Change 10.5 4.8 Terminal Questions 10.3 2. Refer section 9.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . 10.9 Answers to SAQs and TQs .4 Causes for Resistance to Change.2 3.3 Resistance to Change 10.7 Summary 10.

2. · Discuss the nature of change · Explain resistance to change and the factors which resist change. others. 3.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. · Impact of change on future managers. and others. organizational problems may repeat. The type of new equilibrium depends on the degree of change and its impact on the organization. Organizational change is a continuous process. Any change may effect the whole organization. which are major ones. indirectly. cope with the ongoing changes successfully in the first instance. or social. Nothing is permanent except change because change is permanently changing. However. 10. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented).2 Nature of Change The term µchange¶ refers to an alteration in a system. biological. some parts of organization may be affected more. Newstrom and Davis have explained the impact of a change in any part of the organization on the total organization. some parts may be affected directly. job design and people. some changes which are of minor type may be absorbed by the existing equilibrium. organizational change is the alteration of work environment in an organization. In this dynamic and fluid environment. Hence. Thus. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future. Thus. and others. organizational change may have the following features: 1. Objectives: After studying this unit. It implies a new equilibrium between different components of the organization ± technology. less. · State the methods of reducing resistance to change. and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other. They have illustrated it by comparing an organization to an air-filled . When change occurs in any part of the organization. you will be able to: · Explain the meaning of organization change. it disturbs the old equilibrium necessitating the development of a new equilibrium. structural arrangement.10. may require special change efforts.whether physical.

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

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.

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

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

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

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

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

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

2 2. that is. Thomson South Western.Response Books. New Delhi. Refer section 10. New Delhi.Singh. Organization Development & Change. both at the formal and informal levels. Refer section 10. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. Explain the nature of change? 2. threatening to go on strike. at the level of individual and at the level of group. Regal Publications New Delhi. N. P. Prentice-Hall of India Private Limited. Why do organizations resist change? 3. Thomson · Daft Richard L.9 Answers to SAQs and TQS SAQs: 1. · J. Psychological factors 3. · Cummings & Worley. Participation Answers to TQs: 1. through group dynamics. Modern Organization Development and Change. Jain.6.4 3. French and Cecil H. · Harigopal K. 10. engaging in a work showdown. or the like. Problem of overcoming resistance to change can be handled at two levels. Reference: · Wendell L.. Discuss the methods of reducing resistance to change. . Principles and Practices. Jr.8 Terminal Questions 1. Organization Theory and Design.complaints.. Bell.management of Organization Change. Refer section 10. Organizational change 2. Organization Development. 10. eighth edition. P.

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

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