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

The success of management is measured by the extent to which the organizational goals are achieved. informed employees. although they can¶t observe it during operation. One may not see with the naked eyes the functioning of management but its results are apparently known. So it is treated as a science. Integrative Force: The essence of management is integration of human and other resources to achieve the desired objectives. namely. labour. They must motivate the subordinates for the accomplishment of the tasks assigned to them. 4. Managers also seek to harmonize the individuals¶ goals with the organizational goals for the smooth working of the organization. buoyant spirit and adequate work output. It is the most critical input in the success of any organized group activity. A Science and an Art: Management has an organized body of knowledge consisting of welldefined concepts. These factors do not by themselves ensure production. Goal-oriented: Management is a purposeful activity. capital and materials. Thus. the process of management involves decision-making and putting of decisions into practice. Distinct Process: Management is a distinct process consisting of such functions as planning. All these resources are made available to those who manage. principles and techniques which have wide applications. labour and capital. Economic Resource: Management is one of the factors of production together with land. Results through Others: The managers cannot do everything themselves. Its presence is evidenced by the result of its efforts-orderliness. they require the catalyst of management to produce goods and services required by the society. These functions are so interwoven that it is not possible to lay down exactly the sequence of various functions or their relative significance. It is the force which assembles and integrates other resources. In essence. They must have the necessary ability and skills to get work accomplished through the efforts of others. Intangible Force: Management has been called an unseen force. staffing. It co-ordinates the efforts of workers to achieve the goals of the organization. organizing. 1. Managers apply knowledge. 3. 2.3 Characteristics of Management Management is a distinct activity having the following salient features or characteristics: 1. principles and techniques requires specialized . management is an essential ingredient of an organization.management is most often due to both inefficiency and ineffectiveness or to effectiveness achieved through inefficiency. The application of these concepts. People often remark of the effectiveness (or ineffectiveness) of management on the basis of the end results. experience and management principles for getting the results from the workers by the use of non-human resources. It is imperative that the organizational goals must be well-defined and properly understood by the mangers at various levels. 5. Thus. feeling of management is result-oriented. 7. 6. directing and controlling.

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

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

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

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

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

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

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

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

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

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

6.e. 7. objectives. motivating and controlling the efforts of others towards a specific objective.4. 8. Define management. Five M¶s of management (________.. 1. __________is principally the task of planning. Management is largely found at the middle and lower levels and administration is found at the higher levels. administrative decisions. It is the management which transforms physical resources of an organization into productive resources. lower levels of management. public organisations in the private sector and non-business sector. Self Assessment Questions 1. Management creates ________ and motivates employees to work harder and better by providing necessary guidance. Direction of It is concerned with leading It is concerned with Human Resources and motivation of middle level leading and motivation of executives. environmental forces. Usage of Term The term µadministration¶ is The term µmanagement¶ is often associated with widely used in business government offices. There are three levels of management-top. DecisionMaking Administration determines Management decides who what is to be done and when it shall implement the is to be done. ___________. 1. organisations. Lower level managers require and use a greater degree of technical skill and managers at higher levels use a greater degree of conceptual skill. . 5. Managers perform different roles to discharge their responsibilities. Human skills are important at all managerial levels. Status Administration refers to Management is relevant at higher levels of management. i. Environment Administration has direct Management is mainly interaction with external concerned with internal environment of business and forces. co-ordinating.9 Terminal Questions 1.8 Summary Management is concerned with getting things done through other people. 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. _________. making strategic plans to deal plans and policies of the effectively with the organisation. 2. counseling and effective leadership. middle and lower. Still management is not completely a profession. Explain its characteristics. 3.

3.4 Organizing .1 Introduction Objectives 2.2. Discuss the importance of management. Money.3 2. Management 2. manpower 3.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 Process of Management 2. Refer section 1.2. teamwork Answers to TQs: 1.5 3.3 Planning 2. Refer section 1. Bring out the difference between Administration and Management.10 Answers to SAQs and TQs SAQs: 1.1. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2. materials. Refer section 1. 1.

Organizing 3.7 Motivating Self Assessment Questions 2. you will be able to: · Define Management process. Controlling However. management functions have been regrouped into four categories.1 Introduction Follett (1933) defined management as "the art of getting things done through people´. in recent time. Coordinating 5. 1949): 1. Organizing.9 Terminal Questions 2. · Explain Planning.6 Directing 2. Objectives: After this studying this unit.2. as the action of measuring a quantity on a regular basis and of adjusting some initial plan.10 Answers to SAQs and TQs 2.8 Summary 2. Management functions are as follows (Fayol. .5 Staffing 2. One can also think of management functionally. Planning 2. Commanding 4. · Explain different functions of management Process. Motivating. Staffing. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent. Directing.

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

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

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

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

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

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

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

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

It involves many sub-functions such as manpower planning. What is planning? 2. 2.In summary. who is to do. people will not be dissatisfied. 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. The satisfiers relate to what a person does while the dissatisfiers relate to the situation in which the person does what he or she does. Removing dissatisfying characteristics from a job does not necessarily make the job satisfying. The _____analysis begins with a scan of the external environment. and developing plans to integrate and coordinate activities. 2.8 Summary Management is the art of getting things done through people. Self Assessment Questions 1. It is the process of determining what tasks are to be done.10 Answers to SAQs and TQs SAQs: . Organization involves designing. Planning involves the process of defining goals. Explain Staffing in detail 3. Write a short not on directing. establishing strategies for achieving these goals. have to do with a person¶s relationship to the context or environment in which she or he performs the job. recruitment. 2. who reports to whom. Job satisfaction factors are separate and distinct from job dissatisfaction factors. motivators describe a person¶s relationship with what she or he does. _______refers to the managerial function of determining and improving the manpower requirements of an enterprise. 3. Staffing refers to the managerial function of determining and improving the manpower requirements of an enterprise. ____defined management as the art of getting things done through people. neither will they be satisfied. Every organization needs to plan for change in order to reach its set goal. Hygiene factors on the other hand. structuring.9 Terminal Questions 1. how the tasks are to be grouped. To motivate people. emphasize factors intrinsically rewarding that are associated with the work itself or to outcomes directly derived from it. performance appraisal etc. many related to the tasks being performed. and where decisions are to be made. and coordinating the work components to achieve organizational goal. When hygiene factors are adequate. 2.

5 3.2 Definitions 3.5 Goals of OD 3.4 Categories of OD 3.6 Copyright © 2009 SMU Powered by Sikkim Manipal University . Staffing Answers to TQs: 1.8 Problems in OD . Follett 2.1 Introduction Objectives 3. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3. SWOT 3.1. Reference 2.7 Role of OD 3. Reference 2.6 OD and Management Development 3.3 Characteristics of OD 3.3 2. Reference 2.

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

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

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

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

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

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

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

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

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

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

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

2. 4. Define OD. 3. 4.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. ±±±±±±± is associated with ³Liberation Management´.1. Peter Senge . State the various roles of OD. ±±±±±±±±± is a process which includes leadership behaviours and human resource practices. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. Explain its salient features. But OD aims at changing the entire organizational climate where the managers work. Organization development should be led and supported by ±±±±±±±. 2. Tom Peters 3. What are the problems involved in the implementation of OD? 3. Who is associated with the ³Learning Organizations´? 5. _____________is a short-term strategy. 3. 3. OD focuses on culture and processes. 3.10 Terminal Questions 1. 5. problem-focused µnature of OD¶ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. The participative.11 Answers to SAQs and TQs SAQs: 1. There is no µquick fix¶ to organizations¶ problems. Explain the various characteristics of OD. Empowerment 4. OD is the ultimate remedy for organizational improvements and developments. Distinguish between µorganizational development¶ and µmanagement development¶. collaborative. Management development aims at developing the managers individually. Top management 2.

4 Grid Training 4.5. Refer section 3.Organization Development ± Interventions Structure: 4.Organization Development ± Interventions Unit-04.3 Process Consultation 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 3. Management development Answers to TQs: 1. Refer section 3.3 3. Refer section 3.7 5.1 Introduction Objectives 4. MU0002-Unit-04.6 4.6 Team-building . Refer section 3.2 Survey Feedback 4.5 Leadership Development 4.2 2.

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

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

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

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

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

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

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

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

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

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

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

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

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

6 4.2 3. Assumptions. MU0002-Unit-05-Values. and Beliefs in Organization Development Unit-05-Values. Explain Change agents and discuss the role of change agents in detail. Refer section 4.2. and Beliefs in Organization Development Structure: 5. Refer section 4. Assumptions.12 Answers to SAQs and TQs SAQs: 1. 4.1 Introduction . What is team-building? What are the stages of life cycle of a team? 4.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .4 2. Refer section 4. Data collection 2. Blake and Mouton. What is survey feedback as an intervention of OD? How does it provide base for other OD interventions? 3. Refer section 4. Social loafing Answers to TQs: 1. 3.

5.5 Implications of OD Values and Assumptions 5.5.3 Chronology of Events in Management and Organization Thought 5. you will be able to: · Explain the meaning of values. · State the implications of OD values and assumptions.5. · List the chronology of events of values. shaping the goals and methods of the field and distinguishing OD from other improvement strategies.3 Implications for Designing and Running Organizations 5.2 Definitions . and beliefs constitutes an integral part of organization development.7 Terminal Questions 5. · Give the statement of OD values and assumptions.4 Early Statements of OD Values and Assumptions 5. and they continue to evolve as the field itself evolves. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers.1 Implications for Dealing with Individuals 5.2 Implications for Dealing with Groups 5.8 Answers to SAQs and TQs 5.Objectives 5.6 Summary Self Assessment Questions 5.2 Definitions 5. Objectives: After studying this unit. beliefs and assumptions. beliefs and assumptions. assumptions.5. Most of these beliefs were formulated early in the development of the field.1 Introduction A set of values.

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

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

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

· Development of increased understanding between and within working groups in order to reduce tensions. and organizations that is. To summarize the intellectual climate of this period. Warren Bennis proposed that OD practitioners (change agents) share a set of normative goals based on their humanistic/ democratic philosophy. as we have said. He listed these normative goals as follows: · Improvement in interpersonal competence. in an environment of high change. and negative consequences. practice. Rather than the usual bureaucratic methods which rely mainly on suppression. The Addison-Wesley Publishing Company OD Six-Pack. open communications. Kahn (1966) presented the first comprehensive exposition of organizations as open systems. y Rensis Likert s New Patterns of Management (1961) presented data and theory showing the overwhelming superiority of a democratic leadership style in which the leader is group oriented. the initial enthusiasm for scientific management. groups. (1969) a set of six little books on OD by prominent practitioners. We will examine three early statements regarding OD values that had a significant impact on the field. and greater individual autonomy. and democratic.structure may be appropriate. · Development of more effective "team management. dysfunctions. compromise. This leadership style was contrasted with an authoritarian. · Development of better methods of conflict resolution. . an organic organization form is preferred. y y This chronology captures most of the significant influences from research. humanistic. theory. and observations utilized by OD practitioners. Writing in 1969. Values have always been an integral part of OD. and unprincipled power. These six books presented the theory. goal-oriented. · A shift in values so that human factors and feelings come to be considered legitimate. bureaucracy. one-on-one leadership style. and authoritarian leadership gave way to increasing doubts about these organizational practices as theory and research pointed up their limitations. The Social Psychology of Organizations by Daniel Katz and Robert L. the capacity for functional groups to work more competently. Organic structures encourage decentralized decision making and authority." that is. organization development practitioners formulated a set of values and assumptions regarding people. and values of the field. and shares decision-making with the work group. optimistic. summarized the state of organization development a decade or so after its inception. The Bennis and Beckhard quotations come from their books in the Addison-Wesley Six-Pack. Out of this zeitgeist. Tannenbaum and Davis presented their ideas in an article appearing in Industrial Management Review. more rational and open methods of conflict resolution are sought.

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

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

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

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

This discussion was intended to articulate an appreciation of OD values and explain where they came from.W. Taylor¶s principles of scientific management. Values. 2. 5. 2.The field of organization development rests on a foundation of values and assumptions about people and organizations. These beliefs help to define what OD is and guide its implementation. Values. 3. beliefs. 5.8 Answers to SAQs and TQs SAQs: 1. These OD values were considered revolutionary when they emerged in the 1950s. Values are also beliefs. The outcome of ±±±±±±±± was that people were not cogs and organizations were not machines. Define concepts.6 Summary The field of OD rests on a foundation of values and assumptions about people and organizations. 4. OD values tend to be humanistic. optimistic and democratic. _______________ gave theory X and theory Y. A belief is a proposition about how the world works that the individual accepts as true. State the assumptions of Theory X and Theory Y. The concept of ±±±±±±±±±± was introduced by MaxWeber.7 Terminal Questions 1. Chronology of events in management and OD tremendously influenced OD practitioners. values. Self Assessment Questions 1. but are widely accepted today. 3. 5. __________ is associated with scientific management. What was the outcome of Hawthorne Experiments? 4. Cognitive . Write a note about F. 5. assumptions and beliefs help to define what OD is and guide its implementation. and assumptions are all ±±±±±±±±±± facts. beliefs and assumptions. beliefs and assumptions are cognitive facts. What are values and assumptions developed by Richard Bechard in the field of organizational development? 5. Values.

3 5. Refer section 5. Refer section 5.1 Kurt Lewin and Friends 6. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6. Taylor 3.2 Models and Theories of Planned Change 6. Hawthorne experiments 5.3 4. W.2 Beyond the Quick Fix . Douglas McGregor Answers to TQs: 1.2.2.2. Bureaucracy 4.3 Copyright © 2009 SMU Powered by Sikkim Manipal University . F. Refer section 5.3 3.2 2.1 Introduction Objectives 6. Refer section 5. Refer section 5.

3.3 The Burke-Litwin Model of Organizational Change 6. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs. art and science which form the knowledge base upon which OD is constructed.6. In this discussion.1 The Nature of Systems 6.2.3.3.5 Teams and Teamwork 6.2 Congruence among System Elements 6.3 Socio-technical Theory and Open Systems Planning 6.3 Systems Theory 6.7 A Normative ± Re-educative Strategy of Changing 6.4 Porras and Robertson Model of Organizational Change 6.11 Terminal Questions 6. Objectives: After studying this unit.1 Introduction This unit describes the foundations of organization development theory and practice.8 Applied Behavioural Science 6.2.3.6 Parallel Learning Structures 6.9 Action Research Self Assessment Questions 6.12 Answers to SAQs and TQs 6.4 Participation and Empowerment 6.4 Open Systems Thinking 6. you will be able to: .10 Summary 6.

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

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

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

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

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

Transactional leadership is required to make this change in organizational climate. and systems (policies and procedures) result in first-order change. Changing culture is much more difficult than changing climate. Fig. These perceptions are relatively easy to change because they are built on employees¶ reactions to current managerial and organization practices. The premise of the BurkeLitwin model is this: OD interventions directed toward structure. individual and organizational performance. organizational culture is defined as deep-seated assumptions. Transactional leaders are "leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements. Transformational leadership is required for causing second-order change. often unconscious. leadership. Transactional leadership is sufficient for causing first-order change. values. Transformational leaders are "leaders who inspire followers to transcend their own self-interest for the good of the organization and who are capable of having a profound and extraordinary effect on their followers. and systems cause changes in work unit climate. which change motivation and. management practices. These two concepts come from leadership research which found that some leaders are capable of obtaining extraordinary performance from followers while other leaders are not. and organization culture result in second-order change. in turn. management practices." Transactional leadership embodies a fair exchange between leader and follower that leads to "normal" performance. and beliefs that are enduring. On the other hand. hard-working or easy-going. The model also makes a distinction between transactional and transformational leadership styles. interventions directed toward mission and strategy. and difficult to change.Organizational climate is defined as people¶s perceptions and attitudes about the organizationwhether it is a good or bad place to work. Changing structure. 6. Now let us look at the Burke-Litwin model. Following figure shows the factors involved in first-order (transactional) change." Transformational leadership embodies inspiration which leads to new heights of performance.1: The Transactional Factors Involved in First ± Order Change . We will do so in several steps. friendly or unfriendly. and so forth.

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

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

6. which views organizations as open systems in active exchange with their environment. and shows how systems theory enhances the practice of OD. Keep this framework in mind as you read the units on OD interventions because all interventions target one or more factors shown in figures. Fig. describes the characteristics of systems.5: A Change-based Organizational Framework 6. and Katz and Kahn were the first to apply open systems theory to organizations in 1966.3 Systems Theory A second foundation of organization development is systems theory.4: Organizational Work-Setting Factors This model is extremely useful for OD practitioners and organizational leaders. Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950. 6.Fig. This section explains systems theory. Systems .

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

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

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

and 2) Evaluating the "goodness of fit" or how well the elements "go together. that is. and information to the point of action. performance will suffer.Fig. 6.3. In a company that is performing poorly. fit) must be present among the system¶s components¶ for the organization to produce satisfactory outputs. High-performance organizations almost always use principles from socio-technical systems theory. The thesis of STS is that all organizations are comprised of two interdependent systems. Fred Emery. organizations must optimize both systems. performance will suffer. To achieve high productivity and employee satisfaction. You can use this model to analyze organizations with which you are familiar." The premise is that alignment (harmony. . Another important application of systems theory in organization development is open systems planning." and which elements are poorly aligned? In companies showing outstanding performance.socio-technical systems theory (STS) and open systems planning (OSP)-play an important role in organization development. STS is the principal conceptual foundation for efforts in work redesign and organization restructuring. and that changes in one system affect the other system. multi-skilled teams. to the workers doing the job.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. For example. giving information and feedback to the people doing the work. If the organization¶s culture (informal organization) praises individual accomplishments and the work requires teamwork and collaboration. Hanna writes: .3 Socio-technical Systems Theory and Open Systems Planning Two major variations of open systems theory. training group members in multiple skills. Systems models are essential for the practice of OD. If the strategy calls for entrepreneurial quickness and risk-taking and the formal organization is bureaucratic and highly centralized. especially autonomous work groups (selfregulated teams or self-direct teams). and identifying core tasks help STS consultants structure organizations and tasks for maximum effectiveness and efficiency. and others at the Tavistock Institute in the 1950s. 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. forming autonomous work groups. controlling variance at the source. performance will suffer. two active segments of OD today. a social system and a technical system. Socio-technical systems theory was developed by Eric Trist. Principles such as optimizing the social and technical systems. A number of design principles have been developed to implement socio-technical systems theory. 6. if people don¶t have the skills and knowledge required to do the work. which components are "not functioning correctly.

fusing them into a coherent body of theory and practice. Learning organizations can cope effectively with rapidly changing environmental demands. . events. Without a systemic orientation. from their activities. building shared vision. events and forces. and Will McWhinney developed a technology for addressing the interface between organization and the environment. team learning. systems theory pervades the theory and practice of organization development. For example. both realistic (likely to happen if the organization continues on its current course) and ideal (what the organization would like to see happen). Of all these disciplines. OD practitioners expect multiple effects. and incidents are not viewed as isolated phenomena. this combination is often used in designing high-performance organizations. systems thinking. the fifth discipline. therefore. there is no motivation to look at how the disciplines interrelate. Senge believes that five disciplines must be mastered to create a learning organization: personal mastery. Their technology became known as Open systems Planning (OSP). from diagnosis to intervention to evaluation. 2) Developing scenarios of possible futures. changing one part of a system influences other parts. forces. Most OD practitioners engaged in redesign projects use a combination of socio-technical systems theory and open systems planning. issues. and 3) Developing action plans to ensure that a desirable future occurs. a systems approach encourages analysis of events in terms of multiple causation rather than single causation. Open systems planning entails: 1) Scanning the environment to determine the expectations of external organizations and stakeholders. Viewing organizations from this perspective has several consequences. Second.3.4 Open Systems Thinking Open systems thinking is required for creating learning organizations. is the most important. It keeps them from being separate gimmicks or the latest organization change fads. 6.In the late 1960s a small team of consultants led by James Clark. it continually reminds us that the whole can exceed the sum of its parts. 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.´ In conclusion. mental models. not single effects. By enhancing each of the other disciplines. and systems thinking. Charles Krone. He says of systems thinking: ³It is the discipline that integrates the disciplines. because most phenomena have more than one cause. but seen in relation to other issues.KI Jayaram. according to Peter Senge. G. Third. First.

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

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

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

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

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

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

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

Ralph Kilmann 3. 3. 4. What are the features of systems theory of organizational development? 5. ±±±±±±±±±± means moving to new level of behaviour.11 Terminal Questions 1. 2. What are first-order and second order change according to Burke-Litwin Model of organizational change? Explain. 6. The Burke-Litwin model emphasized on first-order and second-order change.10 Summary The foundations of organizational development form the theoretical and practice underpinnings of the field. A fundamental belief in OD is that work teams are the building blocks of organizations. Systems theory views organizations as open systems in active exchange with their environment. In parallel learning structures members have to think and behave in ways that are different from the normal roles and rules of the organization. Transactional change . Bring out the essence of ³managing beyond the quick fix´ model of organizational development. Unfreezing 2. 2. OD interventions alter features of the work setting causing changes in individuals¶ behaviours. 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. which in turn lead to individual and organizational improvements is the principle of Porras and Robertson model organizational change. 3. _____________ means sum of the efforts of team members is far greater than the sum of individual efforts of members.´ Comment on this statement.´ 5.12 Answers to SAQs and TQs SAQs: 1. 4. 6. First²order change is also called ___________. A _____________ is defined as ³a set of elements standing in interaction. Ralph Kilmann specified the critical leverage points for organizational change. ³Work teams are building blocks of organizational development. Action research model combines learning and doing. 6. Explain Kurt Lewin¶s models and theories of planned organizational change.1. ±±±±±±±±±± gave the model ³Beyond the Quick Fix´.

2.Refer section 6.3 Types of Organization Culture. MU0002-Unit-07-Organization Culture and Climate Unit-07-Organization Culture and Climate Structure: 7.1 Introduction Objectives 7. System 5.2.5 Developing and changing Organization Culture Self Assessment Questions 7.2 Characteristics of Organization Culture 7.6 Summary . Refer section 6.2 3.3 4.4. Refer section 6. Refer section 6. Synergy Answers to TQs: 1.4 Organization Culture and Effectiveness 7.2. Refer section 6.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . 7.3 5.1 2.

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

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

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

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

communication. Intervening Variables: Intervening variables are those factors which are reflected as the internal state of organization. Many of these variables are caused by causal variables. and decision-making. This is one part of effectiveness that many managers overlook because it emphasis long-term potential as well as short-term performance. attitudes. Intervening variables are concerned with building and developing the organization. locating space. incorporating. Likert states that the intervening variables reflect the internal state and health of the organization. At this point.. motivational.g. is workable. scrap loss. New product development and information technology is changing so rapidly that any example would be soon out-of ±date. end-result variables are the dependent variables which reflect the achievements in the organization such as its productivity. and (ii) the intervening behavioral cluster. then such rapid change can be welcomed and accommodated with as little disruption and as few problems as possible. the process usually involves some version of the following steps: 1.5 Developing and Changing Organization Culture How Organizational Cultures Start Although organizational cultures can develop in a number of different ways. and is worth the investment of time. A single person (founder) has an idea for a new enterprise. However. performance goals. and perceptions of all members and their collective capacity for effective interaction. is worth running some risks for. 7. End ± result Variables: End-result variable are those factors which are caused by causal and intervening variable and are often in terms of the factors in which managers are interested or measure their effectiveness. and energy that will be required. . According to Likert. costs. and they tend to be longterm goals. 2. The intervening variables may be divided into two broad categories: (i) the intervening attitudinal. if the appropriate organization culture is in place. all in this core group believe that the idea is a good one. and perceptual cluster. 3. and a common history begins to be built. 3. obtaining patents. others are brought into the organization. Changing Organizational Culture Sometimes an organization determines that its culture has to be changed. and earnings. building.2. motivations. e. and so on. The founding core group beings to act in concert to create an organization by raising funds. the loyalties. The founder brings in one or more other key people and creates a core group that shares a common vision with the founder. For example. money. That is. the current environmental context has undergone drastic change and either the organization must adapt to these new conditions or it may not survive. 4.

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

7 Terminal Questions 1. 9. Effectiveness of an organization can be increased through economic man approach and administrative man approach. are particularly driven by results and are often very competitive. Factors in organizational effectiveness include casual variables. behavioural approach. 7. Self Assessment Questions 1.6 Summary Organizational effectiveness is the degree to which organization is successful in accomplishing its goals.goal approach. _____are the visible manifestations of culture as seen in the physical and social environment of the organization. Move quickly and decisively to build momentum and to defuse resistance to the new culture. system-resource approach. effectiveness through adaptive-coping cycle has been discussed. intervening variables and end-result variables and there exists interrelationship among these variables. Briefly explain different types of organizational culture. Market 3. Causal variables Answers to TQs: . Artifacts 2.8. ___________are those factors that influence the course of development within an organization and its results or accomplishment. Stay the course by being persistent. ________cultures are outward looking. and strategic constituencies approach. 2. 7. Organizations to be successful must be efficient and effective. 7.8 Answers to SAQs and TQs SAQs: 1. 3. Explain the characteristics of organization culture. Discuss the development and change of organizational development. 3. 2. Finally. Organizational effectiveness can be measured through various approaches.

7 Operating in a Political Environment 8. Politics and Organization Development Unit-08.Power. Refer section 7.10 Terminal Questions .9 Summary 8.2 Power Defined and Explored 8. Refer section 7.1 Introduction Objectives 8.8 Acquiring and using Power Skills Self Assessment Questions 8.3 3.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 7. MU0002-Unit-08.1.6 The Role of Power and Politics in the Practice of OD 8.4 Theories about the Sources of Social Power 8.2 2.5 Organizational Politics Defined and Explored 8.3 Two Faces of Power 8. Politics and Organization Development Structure: 8.Power.

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

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

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

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.

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

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

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. problem solver.1: Power Base and Power Strategy Connection Individual Power Bases Knowledge · Expertise · Information · Tradition Others¶ Support y y Strategies for Success Playing It Straight · Use data to convince · Focus on target group · Be persistent Using Social Networks · Alliances and coalitions · Deal with decision maker · Contacts for information Political access Staff support . and the characteristics and behaviors of powerholders. Three successful power strategies are "playing it straight." and "going around the formal system. Earlier we stated that the OD practitioner should learn as much as possible about bargaining. individual power derives from knowledge. Attention to these rules can save OD practitioners time and energy that can be more profitably invested in the OD program. viable. dealing directly with powerholders and decision makers. yet legitimate means of acquiring power. catalyst. Table 8. and educator. such behavior is often interpreted as politically motivated. and personality characteristics. 8. Illegitimate behavior causes others to try to exert greater control over the situation. negotiations the nature of power and politics." "using social networks.Rule Seven: Mind your own business because to do otherwise is to invite political trouble. but that does not mean practitioners must be naive or incompetent in the political arena. but these give the flavor of the issues one must consider when operating in a political environment. others¶ support. Networking is recognized as a potent." OD practitioners have typically pursued a "playing it straight" strategy as their sole means of exerting power. not power activist or power broker." which arouses defensive actions. A subtle phenomenon is involved here: when people engage in illegitimate behavior. The authors propose adding the "using social networks" strategy to their repertoires. Illegitimate behavior encroaches on others¶ legitimate "turf. As shown in the figure. We could propose more rules of thumb. One carries out such a strategy by participating in alliances and coalitions. thereby greatly expanding practitioner influence.

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

Methods for empowering others are the following: (1) involve subordinates in assigning work. Reciprocity refers to exchange of favors. (3) reward and encourage others in visible and personal ways. Concluding Comments: In this unit. and retribution. Retribution is not recommended except in unusual cases. According to these authors." Three things are involved in converting power into influence: (1) resisting other people¶s inappropriate influence attempts. power-in-use is called influence. (2) selecting the proper influence strategy. Usually reason is the preferred strategy. actually using it to get things done is another. we have examined power and politics with the goals of understanding the phenomena and deriving implications for OD practitioners. reciprocity." And. (2) provide a positive. Three influence strategies can be used to influence others-reason. Retribution refers to coercion and threats. (4) express confidence (5) foster initiative and responsibility. and are amenable to positive control. and reciprocity can be useful when reason fails. and (6) build on success. and (3) empowering others. Whetton and Cameron suggest several means of resisting others¶ influence attempts such as confrontation and using countervailing power. arise from known conditions. Having power is one thing. "Power is converted into influence when the target individual consents to behave according to the desires of the power holder. 8.1: Model of Power and Influence Networking is used to increase both personal power and position power. Reason refers to persuasion by facts.Fig. collaborative work environment. Our suggestions for . Power and politics are similar in nature. They write: "Influence entails actually securing the consent of others to work with you in accomplishing an objective.

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

Refer section 8. Refer section 8.5 4. Personality Answers to TQs: 1.5 Quality Circles 9.4 3. Refer section 8.6 Quality of Work Life Projects . Refer section 8. MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9.5.1 Introduction Objectives 9.2 2.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .4 Management By Objectives 9.6 5.2 Meaning and Definitions 9.3 Socio Technical Systems 9.Refer section 8.

actions.10 Summary 9. 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. 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. . An organization development intervention is a sequence of activities. events intended to help an organization improve its performance and effectiveness. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design. In this dynamic and fluid environment. Nothing is permanent except change because change is permanently changing. Objectives: After studying this unit.12 Answers to SAQs and TQs 9.9.8 Total Quality Management 9. These interventions vary from standardized program that have been developed and sometimes tailored program. · Explain Total Quality Management. · Discuss the parallel Learning Structures.11 Terminal Questions 9. These programs are derived from careful diagnosis. organizational problems may repeat.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. you will be able to: · Explain the Socio technical change.7 Parallel Learning Structures 9. These methods are receiving increasing attention in Organization Development. · Discuss the Management By Objectives · Explain the Quality Circles.9 Reengineering Self Assessment Questions 9. · Explain Reengineering.

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

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

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

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

Knowledge Management involves capturing the organization¶s collective expertise wherever it resides (in databases. Parallel Learning Structures may be a form of Knowledge Management. and · Then monitor the resulting change efforts. which consequently result into high level of task variety. quality groups are often compulsory and organized around specific work teams. · Make recommendations for improvement. Quality circle program consists of several circles. it is used as an input for recycling objectives and other actions. require joint participation by union and management in the process of work-designing. in general. this approach looked both at technical and human sides of organizations and how they are interrelated. . 9. knowledge. and rewards. each having three to fifteen members. It Consists of a steering committee and a number of working groups that: · Study what changes are needed in the organization. Objectives are neither set at the top and communicated to the bottom nor are they set at the bottom and go up. on paper. Recycling: Though appraisal is the last aspect of MBO process. but in its contemporary form.5 Quality Circles Quality circle is one of the most popular methods in the USA which was originally developed in Japan in 1950s.6. 9. Quality circle requires a managerial philosophy and culture that promotes sharing power. QWL programs. hierarchical structure. Some organizations have even gone as far as setting targets for the number of suggestions quality groups are expected to come up with. The outcome of appraisal at one level is recycled to see if the objectives have been set properly at the level concerned and also at the next higher level.Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement. what happens at each level may affect other levels also. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. or in people¶s heads) and distributing it to the people who need it in a timely and efficient way. at the Tavistcock Institute of Human Relations in London. appropriate feedback and employee discretion. The most distinguishing feature of QWL program is the development of self-managing work groups which consist of multi-skilled workers. information. Therefore.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. The original idea of quality circles involved small groups of volunteers meeting on a regular basis. 9.6 Quality of Work Life Based on the research of Eric Trist et al. Groups representing various levels and functions work to open new channels of communication outside of and parallel to the normal. Objective setting is a joint process through interaction between superior and subordinate.

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

9.11 Terminal Questions 1. Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement. What are the advantages of structural interventions? 3. Drucker 3. Discuss Socio Technical Systems? 2. 3. It is also called continuous quality improvement. events intended to help an organization improve its performance and effectiveness. The term MBO was coined by _________ in 1964. actions. Explain Management By Objectives? 4.1. consciously directed towards the effective and efficient achievement of organizational objectives. Sociotechnical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. 2. events intended to help an organization improve its performance and effectiveness. structural Interventions compare quite favorably with all other alternatives. 9. There are a number of reasons why a consultant should consider employing a structural intervention. __________ represents a participative approach to employee involvement in problem solving and productivity improvement. From a benefit cost analysis. TQM pushes decision making power downwards in the organization. Intervention 2. Quality circle Answers to TQs: . MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. ties reward to performance and increase workers knowledge and skills through extensive training. It consists of small group of employees who meet voluntarily to identify and solve productivity problems.12 Answers to SAQs and TQS SAQs: 1. actions. provides relevant information to all employees.10 Summary An organization development intervention is a sequence of activities. 9. An organization development __________ is a sequence of activities. Write a short note on Total Quality Management.

Refer section 9. MU0002-Unit-10-Managing Change in Organization Development Unit-10-Managing Change in Organization Development Structure: 10.1 Introduction Objectives 10.2 Nature of Change 10.1.Refer section 9.2 3. Refer section 9.4 Causes for Resistance to Change. 10.9 Answers to SAQs and TQs .5 Impact of Change on the Future Manager 10.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .6 Methods of Reducing Resistance to Change.7 Summary 10.8 Terminal Questions 10. Self Assessment Questions 10.5 4. Refer section 9.3 Resistance to Change 10.3 2.

biological. it disturbs the old equilibrium necessitating the development of a new equilibrium. job design and people. organizational change may have the following features: 1. the mangers and other employees must be able to practically anticipate the changes (planned and unprecedented). cope with the ongoing changes successfully in the first instance. and others. 3. some changes which are of minor type may be absorbed by the existing equilibrium. Newstrom and Davis have explained the impact of a change in any part of the organization on the total organization. Objectives: After studying this unit. and others. 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. Any change may effect the whole organization. · Impact of change on future managers. and initiate new change so as to overtake the competitors one the one hand and delight the customers on the other. organizational change is the alteration of work environment in an organization. They have illustrated it by comparing an organization to an air-filled . Nothing is permanent except change because change is permanently changing. The type of new equilibrium depends on the degree of change and its impact on the organization. Thus.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. · State the methods of reducing resistance to change. you will be able to: · Explain the meaning of organization change. 10. organizational problems may repeat. In this dynamic and fluid environment. others. structural arrangement. indirectly. or social. less.10.2 Nature of Change The term µchange¶ refers to an alteration in a system.whether physical. 2. Hence. However. some parts may be affected directly. When change occurs in any part of the organization. Organizational change is a continuous process. Thus. may require special change efforts. which are major ones. · Discuss the nature of change · Explain resistance to change and the factors which resist change. It implies a new equilibrium between different components of the organization ± technology. some parts of organization may be affected more.

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

On the one hand, resistance to change is costly affair, and on the other, it provides some benefits to the organization as its change agent. Resistance by some members of the organization provides an opportunity to the change agents to weigh the pros and cons of introducing change more carefully. While on negative side, the reality lies in between. Resistance to change forces management to find out this reality which helps in managing change more effectively. Thus, resistance to change provides help in managing change in two ways: 1. It may signal the need for more effective communication about the meaning and purpose of a change or need to rethink precisely how a proposed change will affect the organization and its members. 2. It also highlights real inadequacies in the proposed change and suggests better ways for developing and introducing changes. Factors in Resistance to Change People tend to evaluate the effect of change individually but they express it through group in collective form. Therefore, the reasons underlying resistance to change may be identified at these two levels: Individual Resistance There are many factors operating at the individual level which are responsible for resistance. Degree of force in resistance depends on how people feel about change. These feeling may be based either on reality or there may be emotional feeling towards the change. These feelings, either real or emotional, may be seen in the context of three types of factors: economic, psychological and social. Economic Factors People feel attached to the organization for satisfying their needs and economic needsphysiological, job security etc. precede over other needs. People may perceive that they will be adversely affected by the change in terms of their needs satisfaction in the following ways: 1. Skill Obsolescence: A change is generally meant for better methods of working which may involve new techniques, technology, etc., whenever people sense that new machinery (change) poses a threat of replacing or degrading them, they simply resist such a change. When computer was introduced in the business sector in India, it attracted a lot of resistance because of this reason. 2. Fear of Economic Loss: A change may create fear of economic loss in the sense that it may affect economic compensation adversely, reduce job options, and turn into technological unemployment. This feeling is created because people feel that those who can match the new requirements will be better off than those who cannot match.

3. Reduced Opportunities for Incentives: Employees are generally offered incentives linked to their output in the form of incentive schemes, bonus, etc. All these are well-established in the old system. Whenever there is change, people may feel that in the new system, they will have lower opportunity to earn incentives and bonus as the new system requires additional skills. Psychological Factors Psychological factors are based on people¶s emotions, sentiments and attitudes towards change. These are qualitative and, therefore, may be logical from people¶s point of view but may be illogical from the change agent¶s point of view. Major psychological factors responsible for resistance are: ego defensiveness, status quo, lack of trust in change agent, low tolerance for change, and fear of unknown. 1. Ego Defensiveness: A change may affect the ego of the people affected by the change and in order to defend their ego, people resist change. A change in itself suggests that everything is not right at a particular level. Thus, the change may be perceived as an instrument for exposing the weakness of the people. 2. Status Quo: People want status quo. i.e. they do not want any disturbance in their existing equilibrium of life and work pattern. The change initiated by the organization disturbs such equilibrium and people have to obtain another equilibrium which is a painful exercise. Therefore, everyone tries to avoid it. 3. Low Tolerance for Change: In the context of maintaining status quo, people may differ. Some people have very low level of tolerance for change and ambiguity as compared to others. Therefore, these people resist any new idea. 4. Lack of Trust in Change Agent: The effect of change is perceived in the context of change agent, that is, the person who initiates change. If people have low degree of confidence in the change agent, they show resistance to change efforts. This is the reason why labour union resists changes initiated by management because of the feeling that labour and management are two different interest groups in the organization. 5. Fear of Unknown: A change may be perceived as entering into unchartered area which is unknown. The change will bring results in future, which is always uncertain. This lack of certainty creates anxiety and stress in the minds of people and they want to avoid it. The lack of adequate information about the likely impact of change further complicates the problems. Social Factors People derive need satisfaction, particularly social needs, through their mutual compatible interactions. They form their own social groups at the work place for the satisfaction of their social needs. To the extent the satisfaction of these needs is affected by a change, people resist it. The major factors causing resistance to change are: desire to retain existing social interaction and feeling of outside interference.

1. Desire to Maintain Existing Social Interaction: People desire to maintain existing social interaction since it is a satisfying one. When there is any change, their existing social interactions are likely to be changed, which people do not want. Therefore, they resist change. 2. Feeling of Outside Interference: A change brought about by the change agent is considered to be interference in the working of people. This phenomenon is heightened if the change agent belongs to another social class, e.g., change initiated by managers affecting workers. The latter my feel that managers try to make workers an instrument for higher productivity but the outcome of this productivity will be retained by them. Organizational Resistance to Change: Not only individuals and groups within an organization resist change, even the organization itself resists many changes because of certain reasons. Many organizations are designed to be innovation-resisting. Many powerful organizations of the past have failed to change and they have developed into routines. For example, Sumantra Ghoshal, a professor of strategic leadership who is considered to be a management Guru, has commented as follows: ³Nothing fails like success; nothing fails as spectacularly as spectacular success. Whether it is IBM, Digital Equipment Corporation, Caterpillar, Zerox or nearer home-TI cycles, all these companies have been victims of corporate disease. It is called µThe Failure of Success¶. Strategies, values, resources and processes of the most successful companies have in the past ossified into clichés, dogmas, millstones and routines.´ This statement suggests that organizations tend to stabilize at a particular level and if the change efforts are not brought, these organizations start falling. The major reasons for organizational failure to change are: counting past successes, stability of systems, resource limitations, sunk cost, and inter-organizational agreement. Some of these reasons are basic while others are byproducts of those. For example, first two reasons are basic and others are by-products of the first two. 1. Counting Past Successes: A major problem before the organizations which have past success stories is how to face challenges of the changing environment. Since these organizations have achieved success by following a particular set of management practices, they become too rigid to change and they hide their failure to change in the guise of past successes. This is the reason why many old industrial houses are languishing far behind and their places are being taken away by newer organizations. 2. Stability of Systems: The organization may design a system through which it may derive many benefits. The system is stabilized and any change may be perceived as a threat by the organization itself. For example, a bureaucratic organization has certain fixed rules, prescribes rigid authority relationships, and institutes reward and punishment system. All these work in some circumstances. It a change is required in these aspects, the organization may not bring it easily because it is accustomed to a particular system.

Miles and Snow have classified them into four categories. and commensurate expenses on other items also. For example. Let us see what someone has said long back: ³There are three types of companies: those who make things happen. 2. and has zeal for progress. and put less emphasis on environmental scanning.´ This is the true reflection of difference between change-initiating companies and changeresisting companies. decentralized controls. the organization may take change programmes much more frequently. broad environmental scanning. analyzers. forward-looking. prospectors. It depends more on the style of top management. If the organization is not fully equipped for meeting such demands. building and training for its personnel. Based on the aggressiveness which various companies show in changing themselves. an organization has to adapt to its environment but the adaptation has its own cost. the organization has to take into consideration the wishes of other organizations too. these can be used for specific period. They emphasize more on cost-effectiveness. and reserve some resources unutilized for future use. 5. It is necessary too that other organizations also agree to the change proposal. In this interaction process. Prospectors: These firms use broad planning approaches. Now. Analyzers: Above two are the extreme cases of choice-making modes in between the analyzers and reactors. if any change is to be incorporated. If it is risk-taking. Sunk Cost: Most of the organizations have sunk cost involved in various assets. 1. Analyzers act sometimes as defenders and sometimes as prospectors.defenders. 3.3. what will happen to these assets? Naturally. if the change is required. innovative. centralized control. Thus. the organization may enter into agreement with labour union about not bringing any technological change. This can be in the form of people also. Sunk cost cannot be only in terms of various physical things. if new technology is adopted. For example. Inter-organizational Agreements: The organization interacts with its environment. it is not necessary that his services are done away with. those who watch things happen. 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. It an individual is not making commensurate contribution. Resource Limitations: No doubt. In such a case. . it will require resources to procure machine. those who wonder what happened. They go on searching new products/markets on regular basis. Defenders: These are the firms which penetrate in a narrow market product domain and guard it. and reactors. Once the assets are acquired. intensive planning. it may enter into agreement with other organizations over certain aspects of working. 4. it may not be possible for the organization to bring necessary change. organization has to pay for his services though these may not be as useful.

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

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

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

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

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

Refer section 10. . Organizational change 2. that is. Bell.complaints. 10. Refer section 10. Thomson South Western. Psychological factors 3. through group dynamics.2 2.6. at the level of individual and at the level of group. Discuss the methods of reducing resistance to change. Organization Theory and Design. Prentice-Hall of India Private Limited.Response Books.9 Answers to SAQs and TQS SAQs: 1. Organization Development. · Harigopal K.Singh. New Delhi. or the like. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups..management of Organization Change. Modern Organization Development and Change. N. 10. eighth edition. Problem of overcoming resistance to change can be handled at two levels. Explain the nature of change? 2. Organization Development & Change. Regal Publications New Delhi. Reference: · Wendell L. engaging in a work showdown. Why do organizations resist change? 3.. New Delhi. Jr. Jain. French and Cecil H. Refer section 10. P. threatening to go on strike.4 3. Thomson · Daft Richard L. · J. P. Principles and Practices. · Cummings & Worley.8 Terminal Questions 1. both at the formal and informal levels. Participation Answers to TQs: 1.

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

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