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

staffing. Thus. The success of management is measured by the extent to which the organizational goals are achieved. 2. Thus. informed employees. One may not see with the naked eyes the functioning of management but its results are apparently known. Results through Others: The managers cannot do everything themselves. 4.3 Characteristics of Management Management is a distinct activity having the following salient features or characteristics: 1. A Science and an Art: Management has an organized body of knowledge consisting of welldefined concepts. capital and materials. the process of management involves decision-making and putting of decisions into practice. They must have the necessary ability and skills to get work accomplished through the efforts of others. 7. Intangible Force: Management has been called an unseen is most often due to both inefficiency and ineffectiveness or to effectiveness achieved through inefficiency. directing and controlling. It is the most critical input in the success of any organized group activity. buoyant spirit and adequate work output. principles and techniques which have wide applications. All these resources are made available to those who manage. Its presence is evidenced by the result of its efforts-orderliness. Economic Resource: Management is one of the factors of production together with land. Integrative Force: The essence of management is integration of human and other resources to achieve the desired objectives. management is an essential ingredient of an organization. labour. Managers also seek to harmonize the individuals¶ goals with the organizational goals for the smooth working of the organization. 5. Goal-oriented: Management is a purposeful activity. It co-ordinates the efforts of workers to achieve the goals of the organization. labour and capital. 3. It is imperative that the organizational goals must be well-defined and properly understood by the mangers at various levels. 6. Managers apply knowledge. They must motivate the subordinates for the accomplishment of the tasks assigned to them. principles and techniques requires specialized . The application of these concepts. feeling of management is result-oriented. People often remark of the effectiveness (or ineffectiveness) of management on the basis of the end results. These functions are so interwoven that it is not possible to lay down exactly the sequence of various functions or their relative significance. In essence. although they can¶t observe it during operation. So it is treated as a science. 1. experience and management principles for getting the results from the workers by the use of non-human resources. namely. It is the force which assembles and integrates other resources. organizing. These factors do not by themselves ensure production. they require the catalyst of management to produce goods and services required by the society. Distinct Process: Management is a distinct process consisting of such functions as planning.

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

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

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

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

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

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

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

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

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

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

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

1.3 2. Discuss the importance of management. Management 2. Bring out the difference between Administration and Management.5 3. manpower 3.2.3 Planning 2. Refer section 1. Refer section 1. Refer section 1. teamwork Answers to TQs: 1.2.1 Introduction Objectives 2. Money. materials. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2. 3.4 Organizing . 1.2 Process of Management 2.7 Copyright © 2009 SMU Powered by Sikkim Manipal University .10 Answers to SAQs and TQs SAQs: 1.

Staffing.7 Motivating Self Assessment Questions 2. · Explain Planning. Organizing.8 Summary 2. Coordinating 5. Commanding 4. in recent time.9 Terminal Questions 2. Objectives: After this studying this unit. 1949): 1. · Explain different functions of management Process. as the action of measuring a quantity on a regular basis and of adjusting some initial plan. One can also think of management functionally. management functions have been regrouped into four categories. Motivating. you will be able to: · Define Management process.1 Introduction Follett (1933) defined management as "the art of getting things done through people´.2.6 Directing 2.5 Staffing 2. Management functions are as follows (Fayol. .10 Answers to SAQs and TQs 2. Directing. Controlling However. Organizing 3. Planning 2. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent.

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

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

Is there a possibility of growth of existing market?) Identifying threats involves the following: 1. The SWOT analysis is used as a baseline for future improvement. Are market tastes changing? 5. It also helps in setting minimum acceptable standards or common-sense minimums. Set goals and objectives Strategic goals and objectives are developed to fill the gap between current capability and the mission. In which areas does the competition meet customer needs more effectively? 2. What substitute products exist? In general terms. Are there new competitors? 3.1. return on investment. Is there a shortage of resources? 4. the best strategy is one that fits the organization¶s strengths to opportunities in the environment. In which areas is the competition not meeting customer needs? 2. effectiveness. organizations have longterm objectives for factors such as. Are our rivals weak? 5. Benchmarking systematically compares performance measures such as efficiency. etc. Generally. What are the possible new markets? 3. or outcomes of an organization against similar measures from other internal or external organizations. What are the emerging technologies? 6. Objectives are also called performance goals. What is the strength of the economy? 4. as well as gap analysis. Comparing the organization to external benchmarks (the best practices) is used to assess current capabilities. What are the new regulations? 6. They are aligned with the mission and form the basis for the action plans of an organization. Develop related strategies (tactical and operational) . earnings per share.

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

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

training development and maintenance of personnel.e. management initiates actions in the organization. directing is the ³interpersonal aspect of managing by which subordinates are led to understand and co-ordinate effectively and efficiently to the attainment of enterprises goals´. It is a continuing function. Direction is continuous process and it continues throughout the life-time of the organization. A manger needs to give orders to his subordinates. It is an important managerial function. how to do and telling them to do to the best of their ability. Definition According to Koontz and O¶Donnel. It is a process: it is a process having a logical sequence i. selection. It emphasizes that a subordinate is to be directed by his own superior only. vacancies arise out of retirement. to provide superiors opportunities for some more important work which their subordinates cannot do. motivate them. 5. 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. 2. it aims at getting things done by subordinates and. 3. Direction function is performed at every level of management. promotion. 4. . recruitment.6. Direction is an important managerial function. It is instructing people as to what to do. induction. 2. Direction imitates at the top level in the organization and follows to bottom through the hierarchy. Personnel policies and programs must be formulated as guides to perform the staffing function effectively. On the one hand. on the other. 7. Thus staffing is an ongoing process through ± out the life of an organization. lead them and guide them on a continuous basis. resignation. 8.6 Directing Direction is one of the functions of management. It is a continuous function: With the growth and expansion of business additional manpower is needed. Direction is the managerial function of guiding. etc. identifying the manpower requirements. Through direction. overseeing and leading people. Characteristics of Direction The characteristic features of direction are as follow: 1. Direction has dual objectives.

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

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

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

Staffing Answers to TQs: 1. Reference 2.5 3. Reference 2.1.6 OD and Management Development 3. Reference 2.4 Categories of OD 3.7 Role of OD 3. SWOT 3.5 Goals of OD 3.1 Introduction Objectives 3.8 Problems in OD .6 Copyright © 2009 SMU Powered by Sikkim Manipal University . MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3.2 Definitions 3.3 2. Follett 2.3 Characteristics of OD 3.

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

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

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

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

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

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

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

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

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

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

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

±±±±±±± is associated with ³Liberation Management´.10 Terminal Questions 1. Peter Senge . The participative. 4. _____________is a short-term strategy.11 Answers to SAQs and TQs SAQs: 1.1. Organization development should be led and supported by ±±±±±±±. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. Define OD. But OD aims at changing the entire organizational climate where the managers work. 3. Explain its salient features. There is no µquick fix¶ to organizations¶ problems. OD is the ultimate remedy for organizational improvements and developments. Tom Peters 3. What are the problems involved in the implementation of OD? 3. 3. Who is associated with the ³Learning Organizations´? 5. problem-focused µnature of OD¶ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization. Distinguish between µorganizational development¶ and µmanagement development¶. Management development aims at developing the managers individually.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. 3. Empowerment 4. 2. Top management 2. 4. 5. ±±±±±±±±± is a process which includes leadership behaviours and human resource practices. OD focuses on culture and processes. collaborative. 2. Explain the various characteristics of OD. 3. State the various roles of OD.

4 Grid Training 4.2 Survey Feedback 4. Management development Answers to TQs: 1.3 Process Consultation 4. Refer section 3.5 Leadership Development 4. Refer section 3.5.Organization Development ± Interventions Unit-04. Refer section 3.2 2.3 3. MU0002-Unit-04. Refer section 3.7 5. Refer section 3.1 Introduction Objectives 4.6 4.6 Team-building .8 Copyright © 2009 SMU Powered by Sikkim Manipal University .Organization Development ± Interventions Structure: 4.

group level. For example. team-building. Interventions constitute the action thrust of organization development. People¶s behaviour may be relevant to understand at individual level. Therefore. inter-group level. survey feedback. interpersonal level. 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. mediation and negotiation activities. 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.8 Change Agents 4. work group. interventions may be required to change people at all these levels. they make things happen.12 Answers to SAQs and TQs 4. education and training. Further. Thus. However. and organizational culture. various consultants and practitioners have different opinions about the activities which can be included in interventions. other techniques like process . many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others. process consultation. the classification of OD interventions shows variation. Nevertheless. Subsequently. 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.9 Role of Change Agents Self Assessment Questions 4. Historically. OD efforts were attempted through sensitivity training.´ There are various OD interventions and they are classified in different ways. and survey feedback method.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.11 Terminal Questions 4.4. techno-structural activities. and organizational level.10 Summary 4. 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. grid training. the classification appears to be more relevant because it may specify the range of change that an organization requires.7 Inter Group Development 4. management grid. French and Bell have suggested twelve families of OD interventions: diagnostic. inter-group activities.

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

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

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

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

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

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

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

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

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

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

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

In spite of these problems. though. 4. 2. and feedback skills). monitoring. Many research studies have also confirmed the positive contributions of team-building on the organization¶s outcomes. However. to encourage and sustain such feelings. 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. As a result. 2. It seeks to change to attitudes. When this exercise is undertaken at the initial stage. Although there are several approaches for improving intergroup relations. team-building contributes to the organizational performance in the following manner: 1.7 Inter-group Development A major area of concern is OD is the dysfunctional conflict that exists between groups. 3. there have been calls for combining team-building with organization behaviour modification approaches. listening. team-building has been termed as one-sided effort and it suffers from the following limitations: 1. One such suggestion is to use a task hierarchy to reinforce the team as it progresses up a behaviour skill hierarchy (for example. and perceptions that groups have of each other. etc. It improves the organization¶s problem-solving and decision-making ability. in different degrees. it contributes positively towards the feelings of the people.. communicating.These attempts bring co-operative and supportive feelings among people involved in the team functioning. Such actions will go a long way in shaping the organizational climate quite conducive to members for their efficient working. Evaluation of Team-building As mentioned earlier. It focuses only on work groups and other major organizational variables such as technology. one of the more . However. structure. are not given adequate attention. In general. stereotypes. team-building as an OD intervention has attracted maximum attention. team-building has a positive outlook. it is not that effective in isolation. Team-building becomes a complicated exercise when there is frequent change in team members. It helps in developing effective interpersonal relationships by stimulating the group members for that. However. Therefore. management should take such actions at regular intervals so that members feel reinforced and sustain their positive behaviour. this has been a subject to which change efforts have been directed. It helps developing communication within the group and inter-group and overcoming many psychological barriers that block communication flow.

enabling the client to let off steam: as the ignition to spark action. and how it believes the other group perceivers it. the groups can move to the integration phase ± working to develop solutions that will improve relations. Subgroups. 4. each group meets independently to develop lists of its perception of itself. The consultant may fulfill a variety of functions. culture. as the radiator absorbing some of the heat of the controversy.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. Because they are from the outside these individuals an offer can offer an objective perspective often unavailable to insiders. with members from each of the conflicting groups.8 Change Agents Change agents: Can be managers or nonmanagers. and the groups look for the causes of the disparities. Outside consultants. According to Curtis Mial: ³The Consultant may serve as the exhaust value. internal management often will hire the services or outside consultants to provide advice and assistance.Popular methods emphasize problem solving. are disadvantaged because they usually have an inadequate understanding of the organization¶s history. In contrast. employees of the organization. however. or as fog lamp when the future is hazy. Trainer . 4.9 Role of Change Agents The change agent may play different roles according to the need of organization development . as the break for too quick action. For major change efforts. Differences are clearly articulate. after which similarities and differences are discussed. as the accelerator to build up momentum. 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. as the shock absorber when the going is rough. can now be created for further diagnosis and to begin to formulate possible alternative actions that will improve relations. may be more thoughtful (and possibly cautious) because they to live with the consequences of their actions. Once the causes of the difficulty have been identified. internal staff specialists or managers when acting as change agents. the other group. In this method. The groups then share their lists. but one thing he/she is not the driver´. or outside consultants. and personnel. operating procedures.

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

Blake and Mouton. Data collection 2.4 2. Social loafing Answers to TQs: 1. MU0002-Unit-05-Values. Assumptions. Refer section 4.6 4.12 Answers to SAQs and TQs SAQs: 1. and Beliefs in Organization Development Unit-05-Values. Refer section 4. Refer section 4. Refer section 4.2 3.1 Introduction .2. 4. 3. Assumptions.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . What is team-building? What are the stages of life cycle of a team? 4. and Beliefs in Organization Development Structure: 5. Explain Change agents and discuss the role of change agents in detail. What is survey feedback as an intervention of OD? How does it provide base for other OD interventions? 3.

5 Implications of OD Values and Assumptions 5.8 Answers to SAQs and TQs 5. 5. Objectives: After studying this unit.2 Implications for Dealing with Groups 5.4 Early Statements of OD Values and Assumptions 5.1 Introduction A set of values. shaping the goals and methods of the field and distinguishing OD from other improvement strategies. · Give the statement of OD values and assumptions. · List the chronology of events of values. you will be able to: · Explain the meaning of values. assumptions. beliefs and assumptions.5.Objectives 5.6 Summary Self Assessment Questions 5. and beliefs constitutes an integral part of organization development.5.1 Implications for Dealing with Individuals 5. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers.2 Definitions 5. and they continue to evolve as the field itself evolves. Most of these beliefs were formulated early in the development of the field. beliefs and assumptions.2 Definitions .3 Implications for Designing and Running Organizations 5.7 Terminal Questions 5.3 Chronology of Events in Management and Organization Thought 5.5. · State the implications of OD values and assumptions.

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

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

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

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

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

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

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

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

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

3 Copyright © 2009 SMU Powered by Sikkim Manipal University .2 Beyond the Quick Fix . Refer section 5. Douglas McGregor Answers to TQs: 1. F. Bureaucracy 4.1 Introduction Objectives 6. MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6.2.3 4.2. Taylor 3.1 Kurt Lewin and Friends 6.3 3. W. Refer section 5. Refer section 5. Hawthorne experiments 5. Refer section 5.3 5. Refer section 5.2 2.2.2 Models and Theories of Planned Change 6.

2.6.3 Systems Theory 6.3 The Burke-Litwin Model of Organizational Change 6.4 Porras and Robertson Model of Organizational Change 6.2 Congruence among System Elements 6.5 Teams and Teamwork 6. you will be able to: . In this discussion.3.2.4 Participation and Empowerment 6.1 The Nature of Systems 6.9 Action Research Self Assessment Questions 6.11 Terminal Questions 6. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs.8 Applied Behavioural Science 6.3. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning.3.6 Parallel Learning Structures 6.12 Answers to SAQs and TQs 6. Objectives: After studying this unit.3. art and science which form the knowledge base upon which OD is constructed.7 A Normative ± Re-educative Strategy of Changing 6.10 Summary 6.4 Open Systems Thinking 6.3 Socio-technical Theory and Open Systems Planning 6.1 Introduction This unit describes the foundations of organization development theory and practice.

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

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

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

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

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

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

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

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

5: A Change-based Organizational Framework 6. 6. Systems . 6. and Katz and Kahn were the first to apply open systems theory to organizations in 1966. which views organizations as open systems in active exchange with their environment. 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. describes the characteristics of systems. This section explains systems theory.4: Organizational Work-Setting Factors This model is extremely useful for OD practitioners and organizational leaders. Fig.3 Systems Theory A second foundation of organization development is systems theory. Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950.Fig.

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

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

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

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

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

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

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

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

Considerable experimentation with collateral organizations occurred in the 1970s and 1980s. engage in genuine inquiry and experimentation. empowered teams are what the best organizations are using right now to outdistance the competition. The quality of work life programs of the 1970s and 1980s used parallel structures composed of union leaders.´ The purpose of the collateral organization is to deal with "ill-structured" problems the formal organization is unable to resolve. especially when the change involves a fundamental shift in the organization¶s methods of work and/or culture. He uses examples from EDS (Electronic Data Systems). flexible response.6 Parallel Learning Structures Parallel learning structures. and initiate needed changes. clear objectives. talking. superior customer service. specially created organizational structures for planning and guiding change programs.Tom Peters asserts in Liberation Management that cross-functional. parallel structures are a vehicle for learning how to change the system. What¶s important is that people act in a way that promotes learning and adaptation. High responsibility. Bushe and Shani say: ³The key thing about parallel structures is that they create a bounded space and time for thinking. High-performance organizations often use parallel structures to co-ordinate self-directed teams. If you don¶t implement different norms and procedures. and countless other organizations to demonstrate the ability of small project teams to produce high quality. It isn¶t the supplemental structure that¶s important. Asea Brown Boveri. a steering committee and working groups were used to co-ordinate the employee involvement teams. and continuous learning. In essence. 6. 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. At Ford Motor Company. Titeflex. 6.7 A Normative ± Re-educative Strategy of Changing .´ Parallel structures help people break free of the normal constraints imposed by the organization. normal hierarchical considerations become obsolete for these project teams-you could be the boss of one team. projects will be performed by teams. constitute another important foundation of organization development. deciding. managers. Parallel learning structures are a foundation of OD because they are prevalent in so many different OD programs. and then leading the process. and report to one of your subordinates on another team. you don¶t have a parallel structure. Most socio-technical systems redesign efforts and open systems planning programs use parallel structures. and employees. Projects are the work of the future. The most important and difficult task for the people creating the parallel learning structure is to create a different culture within it. and acting differently than normally takes place at work. Union Pacific Railroad. autonomous. and high accountability drive these project teams to outperform traditional organization structures on every measurable dimension. Parallel learning structures are often the best way to initiate change in large bureaucratic organizations. 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. Interestingly.

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

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

and research leading to social action« This by no means implies that the research needed is in any respect less scientific or "lower" than what would be required for pure science in the field of social events. The two bottom inputs. Taken separately. represent contributions from pure or basic science. each is a powerful conceptual tool for thinking out and implementing change. Action research is especially well-suited for planned change programs. and action planning based on the data. they constitute the beginning of a theory of organization development and change that has enormous potential for improving organizational performance and individual development. 6. had this to say about it: ³The research needed for social practice can best be characterized as research for social management or social engineering. Taken collectively. represent contributions from applied science. the two top in puts. It is a type of action-research. 6. a comparative search on the conditions and effects of various forms of social action. who developed the concept of action research. form of applied behavioural science. feedback of the data to the client system members. it is a program of applying behavioural science to organizations. Kurt Lewin.8: Composition of Applied Behavioural Science Organization development is both a result of applied behavioural science and a. I am inclined to hold the opposite to be true. Action research is a method that combines learning and doing ± learning about the dynamics of organizational change. Self Assessment Questions . and doing or implementing change efforts.9 Action Research The action research model ± a data-based.Fig. practice research and practice theory. Action research involves three processes: data collection. problem-solving method that replicates the steps involved in the scientific method of inquiry underlies most OD activities. perhaps more accurately. behavioural science research and two behavioural science theory.´ Concluding Comments: These foundations of organization development form the theoretical and practice underpinnings of the field.

6.10 Summary The foundations of organizational development form the theoretical and practice underpinnings of the field. 3.´ Comment on this statement. Transactional change . A _____________ is defined as ³a set of elements standing in interaction. Action research model combines learning and doing. _____________ means sum of the efforts of team members is far greater than the sum of individual efforts of members.1. ³Work teams are building blocks of organizational development. First²order change is also called ___________. which in turn lead to individual and organizational improvements is the principle of Porras and Robertson model organizational change. The Burke-Litwin model emphasized on first-order and second-order change. What are first-order and second order change according to Burke-Litwin Model of organizational change? Explain. A fundamental belief in OD is that work teams are the building blocks of organizations. Explain Kurt Lewin¶s models and theories of planned organizational change. 6. 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. 6. ±±±±±±±±±± gave the model ³Beyond the Quick Fix´. Unfreezing 2.´ 5. 2. Ralph Kilmann specified the critical leverage points for organizational change. Systems theory views organizations as open systems in active exchange with their environment. 4.11 Terminal Questions 1. ±±±±±±±±±± means moving to new level of behaviour. What are the features of systems theory of organizational development? 5. 4. 3. 2.12 Answers to SAQs and TQs SAQs: 1. OD interventions alter features of the work setting causing changes in individuals¶ behaviours. Bring out the essence of ³managing beyond the quick fix´ model of organizational development. In parallel learning structures members have to think and behave in ways that are different from the normal roles and rules of the organization. Ralph Kilmann 3.

1 Introduction Objectives 7.2.6 Summary .2 3. Refer section 6.1 2.4 Organization Culture and Effectiveness 7.2.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . System 5. Refer section 6.2.3 5.4.3 Types of Organization Culture. MU0002-Unit-07-Organization Culture and Climate Unit-07-Organization Culture and Climate Structure: 7.Refer section 6.2 Characteristics of Organization Culture 7. Refer section 6. Refer section 6. 7. Synergy Answers to TQs: 1.3 4.5 Developing and changing Organization Culture Self Assessment Questions 7.

the culture of a large. and rituals related to deference and demeanor. for-profit corporation is quite different than that of a hospital which is quite different than that of a university. do not do too little?´ . Culture is one of those terms that¶s difficult to express distinctly. organizational change must include not only changing structures and processes. The concept of culture is particularly important when attempting to manage organization-wide change.8 Answers to SAQs and TQs 7.7. despite the best-laid plans. thinking. etc. Comprehensively organization culture is the pattern of basic assumptions that is invented. · Discuss about developing and changing organization culture. norms and tangible signs (artifacts) of organization members and their behaviors. Culture is comprised of the assumptions. For example. you will be able to: · Understand Organization Culture. Members of an organization soon come to sense the particular culture of an organization. they use common language. organizational culture is the personality of the organization. Practitioners are coming to realize that. Standards of behavior exist. 7. or developed by an organization as it learns to cope with its problems of external adaptation and internal integration. but also changing the corporate culture as well. Observed behavioral regularities. but everyone knows it when they sense it. values. including guidelines on how much work to do.7 Terminal Questions 7. Norms. what they brag about. ± 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. You can tell the culture of an organization by looking at the arrangement of furniture. Which in many organizations come down to ³Do not do too much. · Describe different types of Organization Culture · Explain organization culture and effectiveness.2 Characteristics of Organization Culture Organizational culture has a number of important characteristics.1 Introduction Basically. Objectives: After studying this unit. 2. 1986). and feeling in relation to these problems (Schein. discovered. and validated enough to be taught to new members as the correct ways of perceiving. terminology. what members wear. Martin and Meyerson. When organizational participants interact with one another.

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

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

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

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

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

6 Summary Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. 7. 7. Causal variables Answers to TQs: . Effectiveness of an organization can be increased through economic man approach and administrative man approach. intervening variables and end-result variables and there exists interrelationship among these variables. Organizational effectiveness can be measured through various approaches. and strategic constituencies approach. ________cultures are outward looking. Move quickly and decisively to build momentum and to defuse resistance to the new culture.goal approach. 9.8.7 Terminal Questions 1. Market 3. Stay the course by being persistent. 7. 3. effectiveness through adaptive-coping cycle has been discussed. Organizations to be successful must be efficient and effective. Discuss the development and change of organizational development. system-resource approach. behavioural approach. 2. Briefly explain different types of organizational culture. Self Assessment Questions 1. 3. 2. Artifacts 2. Finally.8 Answers to SAQs and TQs SAQs: 1. Explain the characteristics of organization culture. are particularly driven by results and are often very competitive. ___________are those factors that influence the course of development within an organization and its results or accomplishment. Factors in organizational effectiveness include casual variables. _____are the visible manifestations of culture as seen in the physical and social environment of the organization.

3 Two Faces of Power 8. Politics and Organization Development Structure: 8.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .6 The Role of Power and Politics in the Practice of OD 8.10 Terminal Questions . MU0002-Unit-08.2 Power Defined and Explored 8.9 Summary 8. Politics and Organization Development Unit-08.8 Acquiring and using Power Skills Self Assessment Questions 8.7 Operating in a Political Environment 8.Power.1.1 Introduction Objectives 8.5 Organizational Politics Defined and Explored 8.3 3.4 Theories about the Sources of Social Power 8.Power. Refer section 7. Refer section 7. Refer section 7.2 2.

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

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

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

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

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

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

visibility-how much one¶s work is seen by influential people. The power structure will realize that collaborative power is preferable to manipulation and deception. This practical. personal attraction. In this model. . Networks are critical to effective performance for one compelling reason: Except for routine jobs. Whetton and Cameron¶s model is shown in following figure. and legitimacy. in turn.) Position power derives from five sources: Centrality-access to information in a communication network. which in turn will protect the interests of all concerned. 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. arises from expertise. even those of little power. the authors propose a four-stage model for using the OD process to help the power elite transform the organization in ways beneficial for all concerned. personal power and position power. how-to book on power and organization development is well worth studying. ³One of the most important ways of gaining power in an organization is by establishing a broad network of task and interpersonal relationships. Personal power. 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´. a person¶s power comes from two main sources. influence key powerholders to accept the OD program. The four stages are: Phase I Consolidating Power to Prepare for Change Phase ll Focusing Power on Strategic Consensus Phase Ill Aligning Power with Structure and People Phase IV Realizing Power through leadership and Collaboration These stages are the means the OD consultant uses to "take the high road" mentioned in the previous quotation-build a power base. Indeed. and relevance-how important one¶s task is in relation to organizational priorities. then utilize a facilitative OD process in which the powerholders work on strategic business issues using consensus decision making to develop a corporate strategy. effort. criticality-how important one¶s job is flexibility-the amount of discretion in the job.Personality y y y Going Around Formal System · Work around roadblocks · (Don¶t) use organization rules Charisma Reputation Professional credibility Finally.

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

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

MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9.1 Introduction Objectives 9.4 Management By Objectives 9.6 Quality of Work Life Projects .2 2. Refer section 8.5 4. Refer section 8.5.6 5. Personality Answers to TQs: 1.Refer section 8.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 8.4 3.3 Socio Technical Systems 9.5 Quality Circles 9. Refer section 8.2 Meaning and Definitions 9.

9. organizational problems may repeat. · Explain Total Quality Management. actions. In this dynamic and fluid environment.12 Answers to SAQs and TQs 9.7 Parallel Learning Structures 9. One important intervention technique is Technostructural interventions because these are related to technical and structural issues such as how to divide labour and how to coordinate department which is related to Restructuring organization. events intended to help an organization improve its performance and effectiveness. Objectives: After studying this unit. These interventions vary from standardized program that have been developed and sometimes tailored program.11 Terminal Questions 9.8 Total Quality Management 9.10 Summary 9. · Discuss the Management By Objectives · Explain the Quality Circles. These methods are receiving increasing attention in Organization Development. An organization development intervention is a sequence of activities. · Explain Reengineering.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future.9 Reengineering Self Assessment Questions 9. These programs are derived from careful diagnosis. · Discuss the parallel Learning Structures. Nothing is permanent except change because change is permanently changing. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design. you will be able to: · Explain the Socio technical change. .

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

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

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

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

on paper. · Make recommendations for improvement. appropriate feedback and employee discretion. information. QWL programs. 9. Objective setting is a joint process through interaction between superior and subordinate.5 Quality Circles Quality circle is one of the most popular methods in the USA which was originally developed in Japan in 1950s. or in people¶s heads) and distributing it to the people who need it in a timely and efficient way. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. each having three to fifteen members. Knowledge Management involves capturing the organization¶s collective expertise wherever it resides (in databases. knowledge. It Consists of a steering committee and a number of working groups that: · Study what changes are needed in the organization. The original idea of quality circles involved small groups of volunteers meeting on a regular basis. in general. Parallel Learning Structures may be a form of Knowledge Management. it is used as an input for recycling objectives and other actions. 9.Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement.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. The most distinguishing feature of QWL program is the development of self-managing work groups which consist of multi-skilled workers. and · Then monitor the resulting change efforts. . at the Tavistcock Institute of Human Relations in London. 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. hierarchical structure. Objectives are neither set at the top and communicated to the bottom nor are they set at the bottom and go up. which consequently result into high level of task variety.6.7 Parallel Learning Structures Parallel Learning Structures (also known as Communities of Practice) promote innovation and change in large bureaucratic organizations while retaining the advantages of bureaucratic design. this approach looked both at technical and human sides of organizations and how they are interrelated. quality groups are often compulsory and organized around specific work teams. Quality circle program consists of several circles. require joint participation by union and management in the process of work-designing. Quality circle requires a managerial philosophy and culture that promotes sharing power. 9. Recycling: Though appraisal is the last aspect of MBO process. what happens at each level may affect other levels also. but in its contemporary form. Some organizations have even gone as far as setting targets for the number of suggestions quality groups are expected to come up with. Therefore. and rewards.

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

9.1. An organization development __________ is a sequence of activities. Quality circle Answers to TQs: . Sociotechnical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs.11 Terminal Questions 1. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. 2. Explain Management By Objectives? 4. Discuss Socio Technical Systems? 2. 9. consciously directed towards the effective and efficient achievement of organizational objectives. structural Interventions compare quite favorably with all other alternatives. 9. Drucker 3. MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. TQM pushes decision making power downwards in the organization.12 Answers to SAQs and TQS SAQs: 1. ties reward to performance and increase workers knowledge and skills through extensive training. __________ represents a participative approach to employee involvement in problem solving and productivity improvement. Intervention 2. There are a number of reasons why a consultant should consider employing a structural intervention. events intended to help an organization improve its performance and effectiveness. events intended to help an organization improve its performance and effectiveness. What are the advantages of structural interventions? 3. The term MBO was coined by _________ in 1964.10 Summary An organization development intervention is a sequence of activities. Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement. actions. 3. actions. Write a short note on Total Quality Management. It is also called continuous quality improvement. provides relevant information to all employees. From a benefit cost analysis.

3 Resistance to Change 10.5 Impact of Change on the Future Manager 10. 10.6 Methods of Reducing Resistance to Change. Refer section 9. Self Assessment Questions 10. Refer section 9.4 Causes for Resistance to Change. Refer section 9.3 2.2 Nature of Change 10.Refer section 9. MU0002-Unit-10-Managing Change in Organization Development Unit-10-Managing Change in Organization Development Structure: 10.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .8 Terminal Questions 10.7 Summary 10.9 Answers to SAQs and TQs .1.5 4.2 3.1 Introduction Objectives 10.

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

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

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.

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

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

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

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

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

It purports how the results are. a change is proposed and employees quickly respond by voicing . Those people who are directly affected by the change should be given opportunity to participate in that change before the final decisions are reached. structural arrangement. mere participation may not help. Group Dynamics Training for Change: Group dynamics also helps in providing various training programmes for accepting and implementing change. 3.7 Summary Change is inevitable. immediate. social factors. __________ are based on people¶s emotions. For instance. Even if only some of the members are affected by the change. _________ is the alteration of work environment in an organization. implicit. 2. psychological factors. Self Assessment Questions 1. Changes may be influenced by external and internal factors. The organization must regard the participation as meaningful and share the results of the change with its members. Such training techniques include role playing. sentiments and attitudes towards change. Participation: Participation helps to give people involved in the organizational change and inculcate a feeling of importance. 2. many things about change can be made clear. 3. Research studies also support this aspect. Resistance can be overt. People tend to resist many types of changes because new habits or sacrifices are required.Through the group contact. Free flow of information helps people to understand the real picture of the change and many misunderstandings may be avoided. This is more important in the case of workers who themselves treat a separate group and do not identify with the management. It makes people feel that the organization needs their opinions and ideas and is unwilling to go ahead without taking them into account. However. Economic factors. The laboratory method provides a setting where group processes can be studied intensively. 10. It is easiest for management to deal with resistance when it is overt and immediate. benefits of change. and how the benefits of the meaningful and continuous dialogue are necessary. Such training techniques provide understanding of behaviour. job design and people. and how members contribute. It would be prudent for management to take labour representatives into confidence before implementing any change. They must be made a party to the change rather than an agent for resistance to change. psychodrama. Organizational change is the alteration of work environment in an organization. taking whole of the group into confidence helps in maintaining a cooperative attitude. It implies a new equilibrium between different components of the organization ± technology. It implies a new equilibrium between different components of the organization. thereby the people can build up the climate based on mutual trust and understanding which are essential for bringing organizational changes successfully. _________ helps to give people involved in the organizational change and inculcate a feeling of importance. and sensitivity or T-group training. group resistance and vested interests. or deferred.such aspects as the reasons for change.

Bell. · Harigopal K. Thomson · Daft Richard L. through group dynamics. New Delhi..Response Books.. that is. Why do organizations resist change? 3. · J. Psychological factors 3. Thomson South Western. Prentice-Hall of India Private Limited. Organization Development & Change. Modern Organization Development and Change. Principles and Practices. threatening to go on strike. Problem of overcoming resistance to change can be handled at two levels. Participation Answers to TQs: 1. N. P. Organization Development. Refer section 10. 10. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. French and Cecil H.9 Answers to SAQs and TQS SAQs: 1.complaints. 10. both at the formal and informal levels. Discuss the methods of reducing resistance to change. New Delhi. Organizational change 2.4 3. Refer section 10.Singh. · Cummings & Worley. eighth edition.2 2. Reference: · Wendell L. Jr. Explain the nature of change? 2. Organization Theory and Design. Refer section 10. . Regal Publications New of Organization Change. Jain. P. or the like. engaging in a work showdown. at the level of individual and at the level of group.8 Terminal Questions 1.

Prentice-Hall http://www.jhu. Robbins.· James A. · Stephen Edward Freeman. Ltd. Ltd.htm Organizational Behaviour. · http://www. · L. M.cfm http://www. Prentice-Hall of India. . Organizational Development.pdf http://webuser.umich. Management. New Delhi.htm#anchor73776 Copyright © 2009 SMU Powered by Sikkim Manipal University . · Laxmi Devi.pdf www.pdf http://www.humtech.pdf Prasad. Prentice-Hall of New Delhi. F.1lowry.work911. Sultan Chand & Sons.oup. Dhanpat Rai & http://muse. Stoner and R. N. New · Stephens Management. E References y y y y y y y y y y y Pvt. Principles & Practice of http://www. Organizational Educatiional Publishers.umich. Anmol Publications Pvt.oup. New Delhi. 12th edition.