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

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

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

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

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

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

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

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

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

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

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

It is a doing function. But some English authors like Brech are of the opinion that management is a wider term including administration. 2. etc.1.7 Administration and Management The use of two terms µmanagement¶ and µadministration¶ has been a controversial issue in the management literature. Meaning Administration Administration is concerned with the formulation of objectives. Scope . on the other hand. Management Management means getting the work done through and with others. administration is a higher level function. Administration relates to the decision-making. It is concerned with the implementation of policies. Spriegal and Lansburg. Thus. Thus. Spriegel and Walter. management is a lower-level function and is concerned primarily with the execution of policies laid down by administration. Managers are concerned mainly with organisation and direction of human resources. management as an executive function which is primarily concerned with carrying out of the broad policies laid down by the administration. Nature 3. This view is held by Tead. It is a thinking function. Floerence and Tead. iii) There is no distinction between the terms µmanagement¶ and µadministration¶ and they are used interchangeably. Table 1. Administrators are basically concerned with planning and control.2: Distinction between Administration and Management: Basic 1. administration involves broad policy-making and management involves the execution of policies laid down by the administration. Those who held management and administration distinct include Oliver Sheldon. plans and policies of the organisation. Administration is a determinative function. Some writers do not see any difference between the two terms. According to them. while others maintain that administration and management are two different functions. whereas management refers to execution of policies laid down by administration. Administration is a higher level function: Administration refers to policy-making. ii) Management is a generic term and includes administration. Administration is the phase of business enterprise that concerns itself with the overall determination of institutional objectives and the policies necessary to be followed in achieving those objectives. This controversy is discussed as under in three heads: i) Administration is concerned with the determination of policies and management with the implementation of policies. Management relates to execution of decisions. It is concerned with determination of major objectives and policies.

lower levels of management. machinery and methods or ways of doing things) depends to a great extent on the quality of management. motivating and controlling the efforts of others towards a specific objective. operative workforce for the execution of plans. organisations. Managers perform different roles to discharge their responsibilities. i. It is the management which transforms physical resources of an organization into productive resources.9 Terminal Questions 1. Explain its characteristics. 2.4. middle and lower. 6. counseling and effective leadership. co-ordinating. Direction of It is concerned with leading It is concerned with Human Resources and motivation of middle level leading and motivation of executives. Usage of Term The term µadministration¶ is The term µmanagement¶ is often associated with widely used in business government offices. Define management. making strategic plans to deal plans and policies of the effectively with the organisation. Lower level managers require and use a greater degree of technical skill and managers at higher levels use a greater degree of conceptual skill. Five M¶s of management (________. 7. __________is principally the task of planning. Human skills are important at all managerial levels. 8. There are three levels of management-top. Management is largely found at the middle and lower levels and administration is found at the higher levels. environmental forces. 3. Status Administration refers to Management is relevant at higher levels of management. Still management is not completely a profession. ___________. _________. administrative decisions. objectives. 5. 1. Environment Administration has direct Management is mainly interaction with external concerned with internal environment of business and forces. DecisionMaking Administration determines Management decides who what is to be done and when it shall implement the is to be done. Management creates ________ and motivates employees to work harder and better by providing necessary guidance. public organisations in the private sector and non-business sector. Self Assessment Questions 1. .. 1.e.8 Summary Management is concerned with getting things done through other people.

materials. 1.4 Organizing . 3. manpower 3. Management 2. Refer section 1.7 Copyright © 2009 SMU Powered by Sikkim Manipal University . Discuss the importance of management. Refer section 1.1 Introduction Objectives 2.5 3. Refer section 1.2.2. teamwork Answers to TQs: 1. MU0004-Unit-02-Management Process Unit-02-Management Process Structure: 2.3 2.10 Answers to SAQs and TQs SAQs: 1.3 Planning 2.1. Money.2 Process of Management 2. Bring out the difference between Administration and Management.

· Explain different functions of management Process. 1949): 1. . management functions have been regrouped into four categories.8 Summary 2. Planning 2.1 Introduction Follett (1933) defined management as "the art of getting things done through people´. Objectives: After this studying this unit. you will be able to: · Define Management process. Organizing 3.5 Staffing 2. as the action of measuring a quantity on a regular basis and of adjusting some initial plan. in recent time. One can also think of management functionally. Motivating.6 Directing 2.2.9 Terminal Questions 2. · Explain Planning. Organizing.7 Motivating Self Assessment Questions 2. Coordinating 5.10 Answers to SAQs and TQs 2. Controlling However. Directing. Staffing. Commanding 4. Management functions are as follows (Fayol. since the managerial tasks have become highly challenging a fluid in nature making distinctions redundant to certain extent.

However. 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. or where you want go to. policies are the means to achieve those ends. Every organization needs to plan for change in order to reach its set goal. Policy Formulation We have noted earlier that all organizations have well-defined goals and objectives. planning is often referred to as strategic in nature and also termed as strategic planning. and allocating resources. Through leadership and management often overlap. It is difficult to say where objectives end and policies begin. while a policy. Planning in order to be useful must be linked to the strategic intent of an organization. All levels of management engage in planning in their own way for achieving their preset goals. kicking the ball with the left foot or right foot is a reflex action. Therefore. It provides the direction for the other functions of management and for effective teamwork. driving comfort. 2. and then set out the method for achieving it. Decision ± Making Taking decisions is a process. say a passenger car. Objectives are the ends. leadership is about setting the desirable goals. it would be correct to assume that an objective is what you want to accomplish. fuel and machine efficiency. the decision to change the design of a product. a process in which one chooses a course which one thinks is the best. cost structure and so on. general strategies. You might well ask what the need for a policy is when objectives are already defined. Effective planning enables an organization adapt to change by identifying opportunities and avoiding problems. it is not a decision in which any process is involved. Even so. what distinguishers policies form objectives is that you first decide the objective. establishing strategies for achieving these goals. In the football field. overall goals. leadership is doing the right things³.2 Management Process Peter Drucker said: ³Management is doing things right. thus. There is a degree of overlap between the two. and developing plans to integrate and coordinate activities. Management is about accomplishing a goal efficiently. The tasks of the strategic planning process include the following steps: Define the mission: . studies on passenger comfort.2. Planning also enhances the decisionmaking process. the two are not quite the same.3 Planning It involves the process of defining goals. should precede a good deal of research involving market surveys. 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 SWOT analysis begins with a scan of the external environment. How efficient is our manufacturing? 3. How skilled is our workforce? 4. Weaknesses. professional. Opportunities. SWOT analysis provides the assumptions and facts on which a plan will be based. suppliers. summarizing what the organization does. Thus. Are the facilities outdated? 3. Threats) analysis is vital for the creation of any strategic plan. Are the technologies obsolete? For identifying opportunities the following elements need to be looked at: . customers (internal and external). An explicit mission guides employees to work independently and yet collectively toward the realization of the organization¶s potential. federal. international). A mission statement should be short ± and should be easily understood and every employee should ideally be able to narrate it from memory. What is our market share? 5. What are the vulnerable areas of the organization that could be exploited? 2. Is research and development adequate? 4. state. The mission statement may be accompanied by an overarching statement of philosophy or strategic purpose designed to convey a vision for the future as envisaged by top management. What makes the organization distinctive? 2. What financing is available? 6. and trade). Organizations need to examine their business situation in order to map out the opportunities and threats present in their environments. For assessing the strengths of the organization the following questions are important: 1. Sources of information may include stakeholders like.A mission is the purpose of the organization. governments (local. planning begins with clearly defining the mission of the organization. The mission statement is broad. professional or trade associations (conventions and exhibitions). Analyzing strengths and weaknesses comprises the internal assessment of the organization. Do we have a superior reputation? For assessing the weaknesses of the organization the following questions are important: 1. Conduct a situational or SWOT analysis A situation or SWOT (Strengths. journals and reports (scientific.

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

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

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

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

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

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

3. structuring. Planning involves the process of defining goals. Every organization needs to plan for change in order to reach its set goal. Organization involves designing. many related to the tasks being performed. Self Assessment Questions 1. people will not be dissatisfied. _______refers to the managerial function of determining and improving the manpower requirements of an enterprise. and developing plans to integrate and coordinate activities. 2. Write a short not on directing. Staffing refers to the managerial function of determining and improving the manpower requirements of an enterprise.9 Terminal Questions 1.10 Answers to SAQs and TQs SAQs: . recruitment. and where decisions are to be made. how the tasks are to be grouped. The _____analysis begins with a scan of the external environment. 2. Explain Staffing in detail 3. have to do with a person¶s relationship to the context or environment in which she or he performs the job. It involves many sub-functions such as manpower planning. and coordinating the work components to achieve organizational goal. who reports to whom. Job satisfaction factors are separate and distinct from job dissatisfaction factors. who is to do. motivators describe a person¶s relationship with what she or he does. Removing dissatisfying characteristics from a job does not necessarily make the job satisfying.In summary. 2. When hygiene factors are adequate.8 Summary Management is the art of getting things done through people. emphasize factors intrinsically rewarding that are associated with the work itself or to outcomes directly derived from it. What is planning? 2. To motivate people. ____defined management as the art of getting things done through people. 2. performance appraisal etc. establishing strategies for achieving these goals. It is the process of determining what tasks are to be done. neither will they be satisfied. Hygiene factors on the other hand. Directing is the interpersonal aspect of managing by which subordinates are led to understand and co-ordinate effectively and efficiently to the attainment of enterprises goals. The satisfiers relate to what a person does while the dissatisfiers relate to the situation in which the person does what he or she does.

6 Copyright © 2009 SMU Powered by Sikkim Manipal University .3 2. MU0002-Unit-03-Organization Development: A Need Unit-03-Organization Development: A Need Structure: 3.5 Goals of OD 3.2 Definitions 3. Follett 2.8 Problems in OD . Reference 2. SWOT 3. Reference 2.6 OD and Management Development 3.5 3. Staffing Answers to TQs: 1.4 Categories of OD 3.7 Role of OD 3. Reference 2.1.3 Characteristics of OD 3.1 Introduction Objectives 3.

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

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

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

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

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

The concept of comprehensive change is based on the systems concept-open. 5. An overarching goal is to make the client system able to solve its problems on its own by teaching the skills and knowledge of continuous learning through self-analytical methods. 10. 8. 9. here are the primary distinguishing characteristics of organization development: 1.3 Characteristics of OD 1. OD relies on an action research model with extensive participation by client system members. Planned Change: OD is a strategy of planned change for organizational improvement. constantly shifting teams will be the dominant configuration for getting work done. collaborators.multifunctional. and co-learners with the client system. OD focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. so that change is easily observed. according to Peters. Participation and involvement in problem-solving and decision-making by all levels of the organization are hallmarks of OD. OD views organization improvement as an ongoing process in the context of a constantly changing environment. To summarize. OD focuses on culture and processes. OD focuses on total system change and views organizations as complex social systems. OD encourages collaboration between organization leaders and members in managing culture and processes. 7. rather than focusing attention on individuals. OD takes a developmental view that seeks the betterment of both individuals and the organization. dynamic and adaptive system. OD practitioners are facilitators. 3. 6. The definition we have just analyzed contains the elements we believe are important for OD. This µplanned¶ emphasis separates OD efforts from other kinds of more haphazard changes that are frequently undertaken by organizations. Comprehensive Change: OD efforts focus on comprehensive change in the organization. Teams of all kinds are particularly important for accomplishing tasks and are targets for OD activities. 2. 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. 4. Attempting to create ³win-win´ solutions is standard practice in OD programs. Specifically. 3. 2. OD .

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

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

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

To place emphasis on humanistic values and goals consistent with these vales. To increase the level of self and group responsibility in planning and its implementation. By 70s. plays key role in organizational improvement. No special requirement. not on the managers. 3. 2. as a long-term strategy for organizational change. Trained specialists required. focus on achieving improvement in design.7 Role of Organization Development Organization development. 4. To create an environment in which authority of assigned role is augmented by authority based on knowledge and skills.Focus Approach Time Specialist accomplishments. Problem-solving approach. has invited sharp criticism as a strategy to increase organizational viability and effectiveness because many OD programmes have failed. substantial disenchantment with OD became evident because of many controversial OD techniques like sensitivity training. OD can be utilized for the following results in the organization: 1. it is quite suitable for improving organizational performance on long-term basis. To treat each human being as a complex person with a complex set of needs important in his work and his life. To increase the level of trust and mutual emotional support among all organization members. 7.8 Problems in Organization Development Organization development. . 5. 3. Since OD attempts to bring comprehensive change in the organization. Focus on design. Thus. Much of the enthusiasm created at the beginning of OD programmes vanished over the period of time. To increase the level of enthusiasms and personal satisfaction at all levels of the organization. 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. horizontally. Long-range strategy for organizational innovation and renewal. To increase the openness of communications in all directions-vertically. 3. 6. Educative and training Short-range. In early 60s. however. Train and equip employees and managers to perform better in existing organization. however.

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

Define OD. Management development aims at developing the managers individually. 2.9 Summary The definitions clarify the distinctive features of OD and suggest why it is such a powerful change strategy. 3. It focuses on the human and social side of the organization and in so doing also intervenes in the technological and structural sides. 4. But OD aims at changing the entire organizational climate where the managers work. OD is the ultimate remedy for organizational improvements and developments. 4. collaborative. problem-focused µnature of OD¶ marshals the experience and expertise of organization members for problem-solving and capitalizes the opportunities in the organization.11 Answers to SAQs and TQs SAQs: 1.10 Terminal Questions 1. There is no µquick fix¶ to organizations¶ problems. OD focuses on culture and processes. 5. Tom Peters 3. What are the problems involved in the implementation of OD? 3. Distinguish between µorganizational development¶ and µmanagement development¶. Peter Senge . Explain the various characteristics of OD. 2. State the various roles of OD. 3. 3. Empowerment 4. Who is associated with the ³Learning Organizations´? 5. The participative. ±±±±±±±±± is a process which includes leadership behaviours and human resource practices. 3.1. ±±±±±±± is associated with ³Liberation Management´. Organization development should be led and supported by ±±±±±±±. _____________is a short-term strategy. Explain its salient features. Top management 2.

Organization Development ± Interventions Structure: 4. Refer section 3.5 Leadership Development 4.6 Team-building . Management development Answers to TQs: 1. MU0002-Unit-04.3 3.5.2 2. Refer section 3.1 Introduction Objectives 4. Refer section 3. Refer section 3.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 3.3 Process Consultation 4.7 5.Organization Development ± Interventions Unit-04.4 Grid Training 4.6 4.2 Survey Feedback 4.

10 Summary 4. various consultants and practitioners have different opinions about the activities which can be included in interventions. techno-structural activities. 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. the classification of OD interventions shows variation. However. work group. Nevertheless.9 Role of Change Agents Self Assessment Questions 4.11 Terminal Questions 4. Therefore. People¶s behaviour may be relevant to understand at individual level. other techniques like process . inter-group activities. and organizational culture. Thus. mediation and negotiation activities.12 Answers to SAQs and TQs 4. and survey feedback method. interpersonal level. A meaningful classification of OD interventions may be based on the improvement in the behaviour of people in the organization as OD is basically a behavioural approach. survey feedback. OD efforts were attempted through sensitivity training.8 Change Agents 4. and organizational level. Further. management grid. they make things happen. process consultation. 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.´ There are various OD interventions and they are classified in different ways. group level.4. For example. team-building. grid training. French and Bell have suggested twelve families of OD interventions: diagnostic. 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. Interventions constitute the action thrust of organization development. inter-group level. Historically. the classification appears to be more relevant because it may specify the range of change that an organization requires.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. Subsequently. interventions may be required to change people at all these levels. many of them visualize data gathering as an intervention whereas it is treated as only preparatory work for OD by others.7 Inter Group Development 4. education and training.

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

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

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

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

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

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

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

2. In problem identification. The view may be quite different ranging from the organizational problem. rather. Examining Differences: The perception of people on an issue differs because of their differing backgrounds. such as. they are repetitive and cyclical as indicated by arrows in the figure. Providing positive feedback. Analyzing how team¶s goals and priorities are linked to those of the organization. Team-building Process: Team-building attempts to improve effectiveness of the team by having team members to concentrate on: 1. group problems to even personal problem.4.2: Process of Team-building Various steps of team-building process are not one-shot action. Providing substantial time together in which new information is constantly shared. 2. Much of the problems may be solved through effective communication and training sessions. Problem-sensing: There are a number of ways in which problems of a team can be obtained. . The role of communication is important in this context because it will help in clarifying the actual problems to the members. their value systems. The consensus-seeking part of the process necessitates that each person becomes thoroughly aware and understand clearly the basic concepts of team-development. generally most of the members come forward with their arguments as to what the real problems are. Analyzing the relationships among the members who are performing the job. and 5. Fig. Setting goals and priorities for the team. 4. and rewards. the team-building exercise proceeds in a particular way as shown in figure. 1. recognition. This problem can better be identified in terms of what is hindering group effectiveness. For achieving these. Analyzing how the work is performed. 3. Often the team itself defines which aspects of team-building it wishes to work on. 4. the emphasis should be on consensus. and 5. The perception may be brought to conformity through the process of exercise on perception which involves a number of psychological exercises particularly on perceptual differences. Analyzing how the team is working. At this stage. personality and attitudes.

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

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

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

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

Data collection 2. What is survey feedback as an intervention of OD? How does it provide base for other OD interventions? 3. Refer section 4. Refer section 4. Blake and Mouton. and Beliefs in Organization Development Structure: 5. Refer section 4. Assumptions. 3. Social loafing Answers to TQs: 1.1 Introduction .6 4. and Beliefs in Organization Development Unit-05-Values. MU0002-Unit-05-Values.2.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . What is team-building? What are the stages of life cycle of a team? 4. 4. Refer section 4.12 Answers to SAQs and TQs SAQs: 1. Assumptions.4 2.2 3. Explain Change agents and discuss the role of change agents in detail.

6 Summary Self Assessment Questions 5.1 Implications for Dealing with Individuals 5. Most of these beliefs were formulated early in the development of the field. shaping the goals and methods of the field and distinguishing OD from other improvement strategies.1 Introduction A set of values.5 Implications of OD Values and Assumptions 5. you will be able to: · Explain the meaning of values.7 Terminal Questions 5.2 Definitions .5.3 Implications for Designing and Running Organizations 5.2 Definitions 5.5.2 Implications for Dealing with Groups 5. These values and assumptions have developed from research and theory by behavioural scientists and from the experiences and observations of practicing managers. beliefs and assumptions. 5.8 Answers to SAQs and TQs 5.5.4 Early Statements of OD Values and Assumptions 5.3 Chronology of Events in Management and Organization Thought 5. · State the implications of OD values and assumptions. assumptions. and beliefs constitutes an integral part of organization development. beliefs and assumptions. and they continue to evolve as the field itself evolves.Objectives 5. · Give the statement of OD values and assumptions. Objectives: After studying this unit. · List the chronology of events of values.

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

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

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

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

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

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

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

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

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

MU0002-Unit-06-Foundations of Organization Development Unit-06-Foundations of Organization Development Structure: 6. Refer section 5. F.3 5.2 2.3 3.3 Copyright © 2009 SMU Powered by Sikkim Manipal University .2. Hawthorne experiments 5.2 Models and Theories of Planned Change 6. Refer section 5. Douglas McGregor Answers to TQs: 1. Refer section 5. W.3 4. Refer section 5.1 Introduction Objectives 6. Refer section 5.2 Beyond the Quick Fix . Bureaucracy 4.1 Kurt Lewin and Friends 6.2. Taylor 3.2.

2 Congruence among System Elements 6.1 Introduction This unit describes the foundations of organization development theory and practice.10 Summary 6.7 A Normative ± Re-educative Strategy of Changing 6.3 The Burke-Litwin Model of Organizational Change 6.5 Teams and Teamwork 6.3 Socio-technical Theory and Open Systems Planning 6.4 Open Systems Thinking 6.4 Porras and Robertson Model of Organizational Change 6. Objectives: After studying this unit.3. you will be able to: .1 The Nature of Systems 6.3.12 Answers to SAQs and TQs 6. In this discussion.11 Terminal Questions 6.6. you will learn what OD practitioners think and how they think as they engage in the complicated task of improving organizational functioning. art and science which form the knowledge base upon which OD is constructed.2.8 Applied Behavioural Science 6. Leaders and OD practitioners use this knowledge base to plan and implement effective change programs.6 Parallel Learning Structures 6.9 Action Research Self Assessment Questions 6.4 Participation and Empowerment Systems Theory 6.2.

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

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

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

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

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

Transactional leaders are "leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements. On the other hand. Transactional leadership is required to make this change in organizational climate. and organization culture result in second-order change. organizational culture is defined as deep-seated assumptions. Following figure shows the factors involved in first-order (transactional) change. Transformational leadership is required for causing second-order change. The premise of the BurkeLitwin model is this: OD interventions directed toward structure. and beliefs that are enduring. friendly or unfriendly.Organizational climate is defined as people¶s perceptions and attitudes about the organizationwhether it is a good or bad place to work. leadership. The model also makes a distinction between transactional and transformational leadership styles. Transactional leadership is sufficient for causing first-order change. in turn. hard-working or easy-going. We will do so in several steps. 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. Now let us look at the Burke-Litwin model. often unconscious. Changing structure. and difficult to change. management practices." Transformational leadership embodies inspiration which leads to new heights of performance. These perceptions are relatively easy to change because they are built on employees¶ reactions to current managerial and organization practices. and systems (policies and procedures) result in first-order change. 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. individual and organizational performance. which change motivation and. and systems cause changes in work unit climate. management practices." Transactional leadership embodies a fair exchange between leader and follower that leads to "normal" performance. and so forth. Fig. 6.1: The Transactional Factors Involved in First ± Order Change . values. Changing culture is much more difficult than changing climate. interventions directed toward mission and strategy.

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

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

Fig. 6. 6. which views organizations as open systems in active exchange with their environment.3 Systems Theory A second foundation of organization development is systems theory.Fig. Keep this framework in mind as you read the units on OD interventions because all interventions target one or more factors shown in figures. Ludwig Von Bertalanffy first articulated the principles of general systems theory in 1950.4: Organizational Work-Setting Factors This model is extremely useful for OD practitioners and organizational leaders. This section explains systems theory. describes the characteristics of systems.5: A Change-based Organizational Framework 6. Systems . and Katz and Kahn were the first to apply open systems theory to organizations in 1966. and shows how systems theory enhances the practice of OD.

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

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 in the fast-food industry pay a lot of attention to information about their industry-nutrition.6: A System in Interaction with its Environment The law of entropy states that all systems ³run down´ and disintegrate unless they reverse the entropic process by importing more energy than they use. and the system adjusts to a new goal.Fig. Positive feedback comes from the environment." Here is another example of negative and positive feedback. Organizations achieve negative entropy when they are able to exchange their outputs for enough inputs to keep the system from running down. It is sometimes called deviationamplifying feed back. competitors. 6. For example. but most are not useful. eating fads. and the production plan calls for 100 buggy whips per month. it receives information to that effect in the form of negative feedback. mining. and so on. they usually ignore information about other industries such as electronics. Feedback is information from the environment about system performance. Negative feedback tells you if you are on track with your scheduled production output. and makes a course correction. however. aerospace. Systems "code" useful information and incorporate it. For example. negative and positive. Systems are bombarded by all kinds of information: some are useful. and the like. if a rocket ship traveling to the moon strays off its trajectory. while screening out other information. Say your company makes buggy whips. By the same token. Positive feedback measures whether or not the purpose and goals are aligned with environmental needs. If the mission (target) changes. Systems require two kinds of feedback. "return to earth. it will signal whether the environment needs and/or wants buggy whips. . say. The usefulness of the two concepts is that they demonstrate that it is not enough to merely measure our outputs versus the intended targets. that information is called positive feedback. It is also known as deviation-correcting feedback. Survival of the system is equally influenced by whether or not the targets themselves are appropriate.

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

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

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

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

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

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

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

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

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

represent contributions from applied science.Fig.´ Concluding Comments: These foundations of organization development form the theoretical and practice underpinnings of the field. 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. Kurt Lewin. practice research and practice theory. It is a type of action-research. problem-solving method that replicates the steps involved in the scientific method of inquiry underlies most OD activities. Action research involves three processes: data collection.8: Composition of Applied Behavioural Science Organization development is both a result of applied behavioural science and a. Action research is especially well-suited for planned change programs. feedback of the data to the client system members. Action research is a method that combines learning and doing ± learning about the dynamics of organizational change. 6. behavioural science research and two behavioural science theory. it is a program of applying behavioural science to organizations. I am inclined to hold the opposite to be true. The two bottom inputs. who developed the concept of action research. had this to say about it: ³The research needed for social practice can best be characterized as research for social management or social engineering. form of applied behavioural science. and doing or implementing change efforts. Taken collectively. perhaps more accurately. Taken separately. each is a powerful conceptual tool for thinking out and implementing change. the two top in puts. represent contributions from pure or basic science. and action planning based on the data. Self Assessment Questions . a comparative search on the conditions and effects of various forms of social action. they constitute the beginning of a theory of organization development and change that has enormous potential for improving organizational performance and individual development. 6.9 Action Research The action research model ± a data-based.

which in turn lead to individual and organizational improvements is the principle of Porras and Robertson model organizational change. Ralph Kilmann specified the critical leverage points for organizational change. First²order change is also called ___________. 3.´ 5. 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. ³Work teams are building blocks of organizational development. Transactional change .11 Terminal Questions 1. Action research model combines learning and doing.´ Comment on this statement. The Burke-Litwin model emphasized on first-order and second-order change. 3. OD interventions alter features of the work setting causing changes in individuals¶ behaviours. A _____________ is defined as ³a set of elements standing in interaction. 2. Unfreezing 2. 6.1. 6. 4. A fundamental belief in OD is that work teams are the building blocks of organizations.12 Answers to SAQs and TQs SAQs: 1. What are the features of systems theory of organizational development? 5. Explain Kurt Lewin¶s models and theories of planned organizational change. Ralph Kilmann 3. 6. 4. ±±±±±±±±±± means moving to new level of behaviour.10 Summary The foundations of organizational development form the theoretical and practice underpinnings of the field. 2. Bring out the essence of ³managing beyond the quick fix´ model of organizational development. ±±±±±±±±±± gave the model ³Beyond the Quick Fix´. Systems theory views organizations as open systems in active exchange with their environment. In parallel learning structures members have to think and behave in ways that are different from the normal roles and rules of the organization. _____________ means sum of the efforts of team members is far greater than the sum of individual efforts of members. What are first-order and second order change according to Burke-Litwin Model of organizational change? Explain.

1 2.4. 7.2 3.4 Organization Culture and Effectiveness 7.2 Characteristics of Organization Culture 7. MU0002-Unit-07-Organization Culture and Climate Unit-07-Organization Culture and Climate Structure: 7.5 Copyright © 2009 SMU Powered by Sikkim Manipal University . System 5.5 Developing and changing Organization Culture Self Assessment Questions 7.3 5.6 Summary . Synergy Answers to TQs: 1. Refer section 6.3 Types of Organization Culture.2. Refer section 6.2. Refer section 6.3 4. Refer section 6.2.1 Introduction Objectives 7.Refer section 6.

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

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

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

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

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

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

Effectiveness of an organization can be increased through economic man approach and administrative man approach. 7. Explain the characteristics of organization culture. Discuss the development and change of organizational development. _____are the visible manifestations of culture as seen in the physical and social environment of the organization. Market 3. 7. effectiveness through adaptive-coping cycle has been discussed. 9.goal approach. Finally. Causal variables Answers to TQs: . 2. ___________are those factors that influence the course of development within an organization and its results or accomplishment. intervening variables and end-result variables and there exists interrelationship among these variables. Artifacts 2. 7. ________cultures are outward looking.7 Terminal Questions 1. behavioural approach.8.6 Summary Organizational effectiveness is the degree to which organization is successful in accomplishing its goals. Briefly explain different types of organizational culture. Organizations to be successful must be efficient and effective. Factors in organizational effectiveness include casual variables. 2. system-resource approach. 3. Organizational effectiveness can be measured through various approaches. 3. Self Assessment Questions 1. are particularly driven by results and are often very competitive.8 Answers to SAQs and TQs SAQs: 1. Move quickly and decisively to build momentum and to defuse resistance to the new culture. and strategic constituencies approach. Stay the course by being persistent.

1 Introduction Objectives 8.10 Terminal Questions .8 Acquiring and using Power Skills Self Assessment Questions 8.2 2. Politics and Organization Development Structure: 8. Refer section 7.5 Organizational Politics Defined and Explored 8.Power. Refer section 7.3 Two Faces of Power 8.4 Theories about the Sources of Social Power 8. Refer section 7.9 Summary 8. MU0002-Unit-08.1.3 3.Power. Politics and Organization Development Unit-08.2 Power Defined and Explored 8.6 The Role of Power and Politics in the Practice of OD 8.5 Copyright © 2009 SMU Powered by Sikkim Manipal University .7 Operating in a Political Environment 8.

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

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

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

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.

both as a person and as a professional. Paying attention to these sources of power will enhance the likelihood of success of OD programs. Michael Beer has identified additional means by which an OD group can gain and wield power in organizations: 1. Success leads to credibility and stature. 6. According to the framework of French and Raven. organization development practitioners operate from a potentially strong power base they can use to advantage. If the OD group is cohesive and free of internal dissention. Sponsorship: "Organization development groups will gain power to the extent that they have sponsorship. experience. 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. Political access and sensitivity: Cultivating and nurturing multiple relationships with key power figures in the organization will ensure timely information and multiple sources of support. followed by some rules of thumb for the OD practitioner. acceptability. Stature and credibility: Beer notes that power accrues to those who have been successful and effective. Early success in the OD program and its usefulness to key managers of the organization helps promote this reputation. the resources of OD expertise and ability to help organizational subunits solve their pressing problems. Resource management: Power accrues to those who control resources-in this case. it will gain more power. Competence: Demonstrated competence is the most important source of power. These sources of influence produce a substantial power base that will enhance the likelihood of success. coaching."34 This maxim has been recognized for years under the heading of "get top-level support for the program." 4. expert power (the consultant possesses expert knowledge). problem solving. informational power (the consultant has a wealth of information about the strengths and weaknesses of the organization).8. and possibly referent power (others may identify with and be attracted to the consultant). in powerful places. 2.7 Operating in a Political Environment We will present some general observations on operating in a political environment. Group support: If the OD group is strong internally. Rule One: Become a desired commodity. 5. and expertise. Skills such as listening. the OD consultant possesses power from the following bases: legitimate power (the OD program and consultant are authorized by the organization¶s decision makers). preferably multiple sponsorship. and ability to gain organizational support. Becoming a desired commodity as a person means being interpersonally competent and trustworthy. it will be strong externally. OD practitioners are likely to have high interpersonal competence by virtue of their training. communicating. 3. First. .

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

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

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

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

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

MU0002-Unit-09-Structural Interventions and Applicability of Organization Development Unit-09-Structural Interventions and Applicability of Organization Development Structure: 9.5 4.6 Quality of Work Life Projects .Refer section 8.1 Introduction Objectives 9. Refer section 8. Refer section 8.5 Quality Circles 9.8 Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer section 8.6 5.2 2.4 3.2 Meaning and Definitions 9. Refer section 8. Personality Answers to TQs: 1.3 Socio Technical Systems 9.4 Management By Objectives 9.5.

· Discuss the parallel Learning Structures. Objectives: After studying this unit. organizational problems may repeat. events intended to help an organization improve its performance and effectiveness. Nothing is permanent except change because change is permanently changing. · Explain Reengineering. In this dynamic and fluid environment.9 Reengineering Self Assessment Questions 9. .10 Summary 9.11 Terminal Questions 9. you will be able to: · Explain the Socio technical change. but solutions to the same problems which worked out very well in the past may not be of any use to tackle the same problems at present or in the foreseeable future. An organization development intervention is a sequence of activities.9. · Discuss the Management By Objectives · Explain the Quality Circles. One important intervention technique is Technostructural interventions because these are related to technical and structural issues such as how to divide labour and how to coordinate department which is related to Restructuring organization.8 Total Quality Management 9. These programs are derived from careful diagnosis. actions.1 Introduction Organizations are increasingly realizing the fact that change is the price of the survival. These methods are receiving increasing attention in Organization Development. These interventions vary from standardized program that have been developed and sometimes tailored program. how to produce product or service which is related to Employee involvement approaches and how to design work is related to Work design.7 Parallel Learning Structures 9.12 Answers to SAQs and TQs 9. · Explain Total Quality Management.

3. One problem with behavioral/ group interventions is the tendency for new managers or employees to discount or fail to continue the change program. Downsizing associated with restructuring. 5.9. Structure changes are normally ³institutionalized´ and less subject to this problem. Succession Doesn¶t Destroy Change Effort. Organization Acceptance of Change. and OD practice enables the change agent to estimate the probable consequences of the change. Structural changes are consistent with their operating styles and are generally understood by practitioners. Basic reinforcement theories. Managers and administrators are notoriously pragmatic. 1976. 1988): ‡ Determining the environmental demands ‡ Creating a vision statement ‡ Educating organizational members . This normally is a reasonable. The cost of structural change is generally ³front-end´ loaded. 4. Cummings. From a benefit cost analysis. Pasmore. 2. Weeks and months of group effort are saved. organization theory. their attractiveness is also increased by the following advantages: 1. 9. and more critically. processes and functions to create a balance between the organization and its changing external environment. In addition. includes removing or adding layers to hierarchy. structural Interventions compare quite favorably with all other alternatives. change can be introduced relatively rapidly by top management. Advantages of Structural Interventions There are a number of reasons why a consultant should consider employing a structural intervention. meaning the major costs are associated with analysis and design of change.2 Meaning and Definitions Structural Intervention is related to the changes that relate elements of organization to one another. Changes can involve decentralization and centralization.3 Socio Technical Systems Socio-technical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs. 1967. a predictable cost Implementation of group strategies involves significant long-term man-hour and consultant costs. Once diagnosed and an appropriate correction developed. It endeavors to re-design the organization¶s structure. It could involve the following steps (Foster. Rapidity of change. Greater Predictability. Cost is Low.

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

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

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

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

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

From a benefit cost analysis. 9.1. events intended to help an organization improve its performance and effectiveness.10 Summary An organization development intervention is a sequence of activities. There are a number of reasons why a consultant should consider employing a structural intervention. 9. It consists of small group of employees who meet voluntarily to identify and solve productivity problems. TQM pushes decision making power downwards in the organization. events intended to help an organization improve its performance and effectiveness. An organization development __________ is a sequence of activities. 9. provides relevant information to all employees. Intervention 2. Discuss Socio Technical Systems? 2. The term MBO was coined by _________ in 1964. 2. MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner. 3. What are the advantages of structural interventions? 3. ties reward to performance and increase workers knowledge and skills through extensive training. Quality circle represents a participative approach to employee involvement in problem solving and productivity improvement.11 Terminal Questions 1. structural Interventions compare quite favorably with all other alternatives. actions. consciously directed towards the effective and efficient achievement of organizational objectives. actions. __________ represents a participative approach to employee involvement in problem solving and productivity improvement. Drucker 3. Explain Management By Objectives? 4. Write a short note on Total Quality Management. Sociotechnical systems design is better suited to meet the requirements of a changing external environment in comparison with traditional designs.12 Answers to SAQs and TQS SAQs: 1. It is also called continuous quality improvement. Quality circle Answers to TQs: .

Refer section 9.2 Nature of Change 10. Refer section 9.5 Impact of Change on the Future Manager 10.6 Methods of Reducing Resistance to Change.8 Terminal Questions 10.7 Summary 10.5 4.Refer section 9.1 Introduction Objectives 10.4 Causes for Resistance to Change. Refer section 9.9 Answers to SAQs and TQs .3 2.1.8 Copyright © 2009 SMU Powered by Sikkim Manipal University .3 Resistance to Change 10. MU0002-Unit-10-Managing Change in Organization Development Unit-10-Managing Change in Organization Development Structure: 10. 10.2 3. Self Assessment Questions 10.

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

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

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.

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

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

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

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

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

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

Organization Theory and Design.Response Books. Thomson South Western. through group dynamics. Explain the nature of change? 2. Refer section 10.Singh. Refer section 10. · J. Problem of overcoming resistance to change can be handled at two levels. French and Cecil H. Jain. N. Refer section 10. 10. 10. Bell. engaging in a work showdown. Thomson · Daft Richard L. New Delhi.. Organization Development. Reference: · Wendell L. Both these attempts are complementary and sometimes these efforts may be overlapping because every individual is a member of some of the groups. · Harigopal of Organization Change. P. New Delhi.2 2.4 3. both at the formal and informal levels. Discuss the methods of reducing resistance to change. Regal Publications New Delhi. Organization Development & Change. . Psychological factors 3. P.. Why do organizations resist change? 3.complaints. Modern Organization Development and Change. Jr. at the level of individual and at the level of group.9 Answers to SAQs and TQS SAQs: 1. · Cummings & Worley.6. or the like. threatening to go on strike. Prentice-Hall of India Private Limited.8 Terminal Questions 1. Principles and Practices. eighth edition. Organizational change 2. Participation Answers to TQs: 1. that is.

htm#TopOfPage http://www. Ltd.1lowry. N.umd. · T. Robbins. Stoner and R. Prentice-Hall of India.work911.oup. E References y y y y y y y y y y y http://fds.oup. Robbbins.pdf www. New http://www.cfm http://www.fao.managementtoday. Management. Educatiional · L.jhu.wdi. Ltd. Edward Freeman.· James A.pdf http://webuser. Organizational Development.kurims. 12th edition. Anmol Publications Organizational Behaviour. http://www. M. Principles & Practice of Management.htm#anchor73776 Copyright © 2009 SMU Powered by Sikkim Manipal University .com/opm/grtl/OLS/ols6. .managementhelp.htm F. New Delhi. · Laxmi Devi. · Stephens P. Prentice-Hall of New Prasad. New Delhi. · Stephen P.pdf Pvt. Organizational Behaviour. Sultan Chand & Sons. Dhanpat Rai & Prentice-Hall India.pdf http://www.