Unit-Vi-Pmob Notes

Principles of Management and Organisational Behaviour Dr.B.
Prathyusha,
Assistant Professor,
Dept. of H&S,
VNRVJIET
UNIT – VI
Organizational – Conflict, Stress Management, Change and Development:
Organizational Conflict: Definition; Reasons; Types and Levels; Handling
Styles.
Stress Management: Definition; Types; Model; Consequences and Strategies
to manage
Organizational Change: Definition; Types; Resistance; Overcoming and
Approaches: Lewin’s Three-Step Change Model, Kotter’s Eight-Step Plan for
Implementing Change.
Organizational Development: Definition; Nature and Interventions.
ORGANIZATIONAL CONFLICT
DEFINITION
In simple words organizational conflicts may be defined as “a situation in
which there is a breakdown in decision making, just because of irrational and
incompatible stand taken by one or all concerning parties to decision making.”
According to S. R. Robbins defines conflict as “a process in which an effort is
purposefully made by a person or unit to block another that result in
frustrating the attainment of others goals or furthering of his or her interests.”
According to Morton Deutsch, conflict as a “situation whenever incompatible
activities occur.”
James D. Thompson defines; conflict as organizational conflict is that
behaviour by the organizational members which is expanded in opposition to
other members.
It is observed from the above definitions that if the individual employee,
managers, department heads, top managerial people, trade union leaders
opposes certain issue the smooth running of business organization gets
obstructed and moreover it disturbs the routine work of the organization. It
is called as a conflict situation. Strike, lockout, slow tactics, high rate of
absenteeism, labour turn over etc. are the example of conflicting situations in
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Principles of Management and Organisational Behaviour Dr.B.Prathyusha,
Dept. of H&S,
VNRVJIET
an organization. It is necessary to handle these situations carefully and
tactfully.
Conflict can be defined as a difference that exists between needs, values, and
interests of individuals or groups in an organization.
REASONS/CAUSES OF CONFLICT IN THE WORKPLACE
Every employee has needs and certain expectations at work, and conflict
could arise in the workplace when people feel that these are not being met or
are being ignored.
What causes workplace conflict?
Conflict in the workplace could be the result of:
 poor management
 unfair treatment
 unclear job roles
 inadequate training
 poor communication
 poor work environment
 lack of equal opportunities
 bullying and harassment
significant changes to products, organisational charts, appraisals or pay
systems
Other major causes of conflict in the workplace include:
Personality clashes - the 'personality mix' within a team can be upset when
a new member of staff joins or if two colleagues suddenly fall out. Individuals
may also respond to difficult or challenging situations in an unhelpful or
unproductive way.
Unrealistic needs and expectations - conflict at work can often be caused
when employers ignore the needs of employees or set unrealistic expectations.
For example, arranging hours that make it difficult for employees to carry out
childcare responsibilities.
Business values - most people have very clear ideas about what they think is
fair, and your organisation's procedures and policies must reflect this. For
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example, giving someone a fair hearing or explaining the reasoning behind a
decision.
Unresolved workplace issues - for example, an employee might ask to be
moved to another team because of their manager's 'aggressive' leadership
style. However, the employee may have other reasons - for example, they may
blame their manager for a lack of training or career progression.
Increase in workload - sometimes workplace conflict is caused because
people feel they are being pushed too hard and resentment sets in if they feel
their workload is unmanageable.
TYPES AND LEVELS OF ORGANISATIONAL CONFLICT

TYPES OF ORGANIZATIONAL CONFLICT
Type # 1. Task Conflict:
Task conflict relates to the content and goal of the work. According to Graves,
task conflict arises among members of team and affects the goals and tasks
they are striving to achieve. It can be based on differences in vision, intention,
and quality expectation. It is essential to focus and channel any task conflict
so that these differences become collaborative and lead to improvements in
the way and go about accomplishing current and future task. Converting
conflict to friendly competition might be one way of taking the best from both
sides.
Type # 2. Role Conflict:
Conflict surrounding roles and responsibilities are especially common during
or immediately following organisational change, particularly restructurings.
People may be unclear on who is responsible for which decisions and outputs.
For example, after an international strategic business consulting firm
restructured its managerial staff, an individual who formerly managed two
key customer segments was unwilling to relinquish all the responsibility to
the new manager. He continued to question staff and issue orders while his
replacement was trying to set a new direction. With two managers giving
input, employees were stuck in the middle, which created conflict among them
as well as between the managers.
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To identify the root cause of a role conflict, each party needs to examine his
or her responsibilities as well as the other persons. One or both may need to
change their perception, and then they will need to collaborate to clarify who
will handle what.
Type # 3. Process Conflict:
This is related to how the work gets done. This form of conflict centres around,
the process, procedures, steps or methods used to reach goal. One person
might like to plan many steps ahead while others might like to dive in
headfirst. These differences in approaches or processes can lead to
communication break downs and ultimately conflict. Healthy differences in
approaches to process will often lead to improved way of doing job.
Process conflict commonly arises when two departments, teams, or groups
interact on a process. They may view the process differently and disagree on
how it should be accomplished or point fingers rather than communicating
effectively when problems arise.
For example, at a global manufacturer of heavy lifting equipment, three shifts
were involved in the production of a machine, which often suffered from poor
quality or low production rates. No standard process existed to build the
machine, and each shift believed its approach was best. If one shift ended
before the product was completed, the next group would either send the
machine through without completing it – which resulted in poor quality – or
take it apart and rebuild it – which slowed production.
To identify the root cause of process conflict, examine the process controls in
place and how employees interact with them. Get teams or individuals to
collaborate to define the process more effectively and establish
communication channels to address problems.
Type # 4. Directional Conflict:
Directional conflict arises when organisations are forced to rethink their
strategies and focus on shorter-term activities, as many did during the
economic downturn. Employees may not know how to prioritise long-term
versus short-term needs, or one department may work tactically while
another remains strategic.
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For example, a regional insurance brokerage, representing several prominent
insurance providers, was developing a succession plan and selected several
managers to be groomed as next- generation leaders. This action resulted in
directional conflict because the managers were unclear whether to focus on
meeting their short- term goals or on the longer-term succession efforts.
To identify the root cause of directional conflict, individual employees should
ask themselves-What do I believe our direction is or should be? Is that aligned
with what others are saying? What are senior managers saying? Answering
these questions will enable individuals to change their own direction if
necessary and help others change theirs.
Type # 5. External Conflict:
External conflict arises when pressures from customers or other stakeholders
impact internal decisions. Recent economic challenges compelled
organisations to adjust and adapt, for example, by lowering prices while
providing enhanced customer service. Sales or customer service personnel
advocating for customers’ needs may have come into conflict with operations
trying to meet internal goals.
For example, a health care software company was pushing to bring a new
product to market. Sales and customer service employees continued to bring
customer input to the programming group, which did its best to incorporate
the ideas into the product. As the requests continued to come in, it extended
the development process beyond the planned release date. When management
finally decided to release the product without further enhancements,
additional conflict arose because customers now complained that their inputs
are not incorporated.
To identify the root cause of external conflict, ask if anyone internally has the
control to resolve the problem. It may be possible to create a can- do list,
which may answer questions such as-What can we do to address the external
demand? The solution might involve collaboration among several departments
to adjust to the external pressures more effectively.
Type # 6. Relationship Conflict:
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It focuses on interpersonal relationship. They are directly between people and
may be over roles style, resources or even personalities. This conflict can
penetrate and damage all aspect of an organisation. Relationship conflict can
quickly demand all the attention and energy.
Although poor chemistry between individuals can exist, most interpersonal
conflict tends to grow from the other five sources of conflict. For instance,
when two managers attempt to direct the same department or when
employees see external circumstances differently, interpersonal conflict
builds.
However, at times, genuine interpersonal conflict may exist. For instance, a
national business services firm hired a new vice-president whom the
divisional personnel disliked because they felt he was not as open and direct
as his predecessor. This created conflict between the leader and the team,
which affected performance.
To find the root cause of interpersonal conflict, look for a particular bias or
prejudice. Can negative emotions be overcome? An open, direct conversation
is always the best way to bring issues out in the open and begin working on
a resolution.
Levels Organizational Conflict
Conflict may arise at any level in an organization starting from individual level
to organizational level.
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Three main levels of conflict
1. Individual-Level Conflict:
Individual-level conflict indicates that human behavior is directed by needs,
which guide the activities of an individual. Before joining an organization, the
individuals try to match their needs with the organization’s offerings in terms
of salary packages or other benefits. However, if they observe any inequity
with their colleagues in the organization, then it may result in a conflict at the
individual level. Such a conflict may lead to tension, frustration, and
unpleasant behavior in individuals.
The individual-level conflict can be bifurcated into two categories, which are
as follows:
a. Intra-Individual Conflict:
Arises within the individual and is considered psychological in nature.
It can be of two types:
i. Goal Conflict – Refers to a conflict where an individual or a group
has to compromise its goals for the achievement of organizational goals.
In goal conflict, the individual or group goals are not aligned with the
organizational goals.
ii. Role Conflict – Occurs when individuals realize that their expected
roles are different from actual roles.
b. Inter-Individual Conflict:
Refers to a type of conflict that occurs between two individuals. Generally,
this conflict arises due to availability of scarce resources or rewards. It can
also occur because different people have different opinions, attitude, value
system, and style of working.
2. Group-Level Conflict:
Group-level conflict refers to the divergence, competition, or clash between
two groups of the organization, such as management and staff.
Group-level conflict can be categorized into intra-group conflict and inter-
group conflict, which are mentioned as follows:
i. Intra-Group Conflict – Refers to a conflict that occurs within a single
group.
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ii. Inter-Group Conflict – Refers to a conflict that occurs between two
or more groups. Intergroup conflicts are frequently seen within an
organization when two departments are in conflict with each other to
get scarce resources.
3. Organizational-Level Conflict:
Organizational-level conflict refers to the conflict which occurs at the level of
the entire organization.
It is of two types, which are as follows:
i. Intra-Organizational Conflict:
Refers to the conflict occurring within an organization.
Intra-organizational level conflict can be of two types, which are as follows:
a. Horizontal Conflict:
Indicates that there can be conflict between two functional groups at
the same hierarchical level. It can happen because of various reasons,
such as shared resources and interdependency, and goal
incompatibility. For example, at times, the resources, such as printers,
may be used by different departments at the same time, leading to a
long queue of documents to be printed.
This may result in delay in operations. Similarly, any mismatch in data
and figures of the reports that are shared by two interdependent
departments may also lead to conflict. Likewise, the goals of one
department may interfere with the goals of another department, leading
to goal incompatibility and conflict.
b. Vertical Conflict:
Refers to the conflict between different hierarchical levels, such as
between a superior and subordinates. Vertical conflict can occur
because of inadequate or ineffective communication and distorted
perceptions. For example, if a superior delegates some responsibilities
to the subordinates but fails to give clear instructions then a conflict
may arise between the subordinates and the supervisor regarding the
responsibilities.
ii. Inter-Organizational Conflict:
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Refers to the conflict occurring between two or more organizations.
Organizations belonging to same industry may indulge in unethical practices
and unhealthy competition because of inter-organizational conflict.
HANDLING STYLES
1. Avoiding style
To avoid confrontation and conflict, some managers will delay making a
deadline or avoid making a decision. They might physically separate the
opposing parties or remove themselves from the situation altogether.
However, often, the deliberate delay will cause unresolved conflict to cause
resentment and frustration among employees. Conversely, in other situations,
it can give both parties time to potentially readjust their attitudes and
perspectives and the conflict could resolve on its own.
When to consider using the avoiding style:
 When you’re still undecided on how to proceed
 When you don’t have the resources to devote immediately
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 When involved parties are experiencing high tension
 When it has caused distraction from team productivity
2. Competing style
The competing style of conflict management addresses conflict directly as the
goal of the competing style is to end the conflict as quickly as possible. While
the competing style may get fast results, it can also be detrimental to the
morale and productivity of a team. If you always compete with others rather
than compromise, you may stifle helpful input from your coworkers and
damage your workplace relationships.
When to consider using the competing style:
 When another conflict management approach has not been successful
 When no positive change has occurred after some time
 When you feel pushback from those in conflict
3. Accommodating style
The accommodating style is the opposite of the competing style and it resolves
the conflict by giving in to the opposing party. You might need to use an
accommodating conflict style or attitude when interacting with someone with
a strong or abrasive personality.
Acknowledging and accepting someone else’s views or perspectives is an
important part of teamwork, especially when the other party is an expert or
more experienced than you. However, it is also crucial for you to know when
accommodating someone else might be detrimental to you or your team’s best
interest.
When to consider using the accommodating style:
 When you can’t come to a resolution
 When your peer is more concerned with the conflict than you
 When you’re mistaken or your peer is more experienced
 When productivity has been affected negatively by the conflict
4. Compromising style
The compromising conflict style is often referred to as the “lose-lose” method.
When you address conflict with this style, you encourage each side to make
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some significant sacrifices. By definition, this means that neither side gets
exactly what they want.
Ideally, after compromising on one or more minimal issues, both parties could
then agree on the larger issue. This can foster short-term productivity, but it
rarely completely solves the underlying problems.
When to consider using the compromising style:
 When you need an immediate solution that may be temporary
 When neither party will compromise
 When productivity starts to be impaired by the time the conflict is
taking
 When there is no solution both will be happy with
 When you want to promote more team collaboration
5. Collaborating style
As opposed to the compromising style’s “lose-lose” solutions, the collaborating
style seeks to produce “win-win” results. The collaborating style tries to find
a solution that truly satisfies everyone involved. If you want to use
collaborating style, you will need to listen and communicate with both parties
involved in the conflict.
After taking the time to understand both sides of the issue, you will need to
facilitate both parties negotiating a solution together. Implementing this style
can often be time- and labor-intensive, but it frequently produces the most
satisfying long-term results. The collaborating style is an important asset if
you are seeking to create and maintain successful professional relationships.
When to consider using the collaborating style:
 When several people will be impacted by the resolution
 When it involves an important relationship
 When the interests of all involved parties need to be considered
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STRESS MANAGEMENT
DEFINITION
The term “stress”, was coined by Hans Selye in 1936, who defined it as “the
non-specific response of the body to any demand for change”.
Stress can be defined as any type of change that causes physical, emotional
or psychological strain. Stress is your body's response to anything that
requires attention or action. Everyone experiences stress to some degree.
Stress is a normal reaction the body has when changes occur, resulting in
physical, emotional and intellectual responses.
TYPES
Hans Selye introduced the concept of stress having two categories: distress
and eustress.
Distress is stress that negatively affects you and eustress is stress that has a
positive effect on you.
Eustress is what energizes us and motivates us to make a change.
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MODEL
A. POTENTIAL SOURCES OF STRESS AMONG EMPLOYEES:

According to the above model, potential sources which causes stress are as
follows:
1. Environmental Factors:
Uncertainty influences the design of organization’ and it influences stress
levels among employees. Indeed, uncertainty is the biggest reason people have
trouble coping with organizational changes.
There are three main types of environmental uncertainty:
economics, political and technological.
2. Organizational Factors:
Pressures to avoid errors or complete tasks in a limited time, work overload,
a demanding and insensitive boss, and unpleasant co-workers are few
examples. There are three major factors recognized as (i) Task Demands, (ii)
Role Demands and (iii) Interpersonal demands
3. Personal Factors:
The typical individual may work between 40 and 50 hours a week. But the
experiences and problems people encounter in the other 120+ hours can spill
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over to the job. The final category of sources of stress at work includes of an
employee’, family issues and personal economics problems.
4. Individual differences:
Some people thrive on stressful situations, while other are overwhelmed by
them. What differentiates people in terms of their ability to handle stress?
What individual variables moderate the relationship between potential
stressors and experienced stress? Atleast four are relevant: perception, job
experience, social support, and personality traits.
Job experiences tend to be negatively related to work stress. Voluntary
turnover is being probable among people who experience more stress.
Therefore, people who remain with an organization longer are those with more
stress-resistant traits. Secondary people eventually develop coping
mechanisms.
Social support: collegial relationships with co-workers or supervisors can
buffer the impact of stress. This is among the best documented relationships
in the stress literature. Social support acts as a palliative, mitigating the
negative effects of even high-strain jobs.
Personality traits: Stress symptoms expressed on the job may originate in
the person’ personality. Perhaps the most widely studied personality trait in
research on stress is neuroticism.
And other important factors such as belief in locus of control, self-efficacy,
Hostility, etc.
5. Cultural Differences:
Research suggests that the job conditions that cause stress show some
differences across cultures. One study revealed that, whereas US employees
were stressed by lack of control, Chinese employees were stressed by job
evaluations and lack of training. It doesn’t appear that personality effects on
stress are different across cultures.
B. CONSEQUENCES OF STRESS AT WORK:
Stress shows itself in a number of ways, such as high blood pressure, ulcers,
irritability, difficulty making routine decisions, changes in appetite, etc.
1. Physiological Symptoms:
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Most early concern with stress was directed at physiological symptoms
because most researchers were specialists in the health and medical sciences.
Their work led to the conclusion that stress could create changes in
metabolism, increase heart and breathing rates and blood pressure, bring on
headaches, and induce heart attacks. Evidence now clearly suggests stress
may have other harmful physiological effects, including backaches, eye strain,
sleep disturbances, dizziness, fatigue, loss of appetite, and gastrointestinal
problems.
2. Psychological Symptoms:
Job dissatisfaction is an obvious cause of stress. But stress shows itself in
other psychological states for instance, tension, anxiety, irritability, boredom,
and procrastination. One study that tracked physiological responses of
employees over time found that stress due to high workloads was related to
lower emotional well-being.
3. Behavioural Symptoms:
Research on behaviour and stress has been conducted across several
countries and over time, and the relationships appear relatively consistent.
Behaviour-related stress symptoms include reductions in productivity,
increases in absences, safety incidents, and turnover, changes in eating
habits, increased smoking or consumption of alcohol, rapid speech, fidgeting,
and sleep disorders.
C. STRATEGIES OF MANAGING STRESS:
What should we do about stress? Should we do anything? Because low to
moderate levels of stress can be functional and lead to higher performance,
management may not be concerned when employees experience them.
However, employees are likely to perceive even low levels of stress as
undesirable. To manage stress there are some individual and organizational
approaches as follows:
1. Individual Approaches:
An employee can take personal responsibility for reducing stress levels. Many
people manage their time poorly. The well-organized employee, like the well-
organized student, may very well accomplish twice as much as the person
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who is poorly organised. A few of the best known time management
techniques are:
(i) Maintaining to-do lists
(ii) Scheduling activities based on priorities and accomplishments
(iii) Doing the hard tasks first, and
(iv) Scheduling distraction-free time
The above time management skills can help minimise procrastination by
focusing efforts on immediate goals and boosting motivation even in the face
of tasks that are less enjoyable.
Some of the other strategies:
• Physicians have recommended non-competitive physical exercise, as
aerobics, walking, jogging, swimming, cycling, etc.
• Individuals can teach themselves to reduce tension through relaxation
techniques such as meditation, mindfulness, and deep breathing.
• Work breaks, and taking help from recovering panderers.
• As we have noted, friends, family, or work colleagues can provide an outlet
when stress levels become excessive.
2. Organizational Approaches:
Several-organizational factors that cause stress, particularly task and role
demands.
Strategies to consider include the following tasks:
(i) Selection and placement, and training
Usually, individuals with little experience or an external locus of control tend
to be more prone to stress. Selection and placement decisions should consider
these factors. They should not hire only experienced with an internal locus.
(ii) Goal setting
Individuals perform better when they have specific and challenging goals and
receive feedback on their progress toward these goals. Goals can reduce stress
and provides motivation.
(iii) Redesigning jobs
Redesigning jobs to give employees more responsibility, ore meaningful work,
more autonomy, and increased feedback can reduce stress because these
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factors give employees greater control over work activities and lessen
dependence on others.
(iv) Employee involvement
Role stress is detrimental to a large extent because employees feel uncertain
about goals, expectations, how they’ By giving employees a voice in the
decisions that directly affect their job performance, management can increase
employee control and reduce role stress.
(v) Organizational communication
Increasing formal organizational communication with employees reduces
uncertainty by lessening role ambiguity and role conflict. Given the
importance that perceptions play in moderating the stress-response
relationship.
(vi) Employee sabbaticals
Some employees need an occasional escape from the frenetic pace of their
work. Companies including Infosys, Qualcomm, Deloitte, Adobe, and even
Government of India have begun to provide extended voluntary leaves.
(vii) Wellness programs
Finally, if organization supports wellness programs, can typically provide
workshops to help people quit some negative habits, lose weight, eat and sleep
better and they focus on total physical and mental strength.
ORGANIZATIONAL CHANGE
INTRODUCTION
The term ‘Organizational change’ implies the creation of imbalance in the
existent pattern or situation. Adjustment among people, technology and
structural set up is established when an organization operates for a long time.
Human resource is an important factor in the adjustments among individuals
as well as between the organization and environment, as an organization is
mostly composed of people. Individual members can resist either individually
or in a group.
Change could be both reactive and proactive. A proactive change has
necessarily to be planned to attempt to prepare for anticipated future
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challenges. A reactive change may be an automatic response or a planned
response to change taking place in the environment.
DEFINITION
Change refers to any alternative that occurs in total work environment.
0rganizational change occurs when business strategies or major sections of
an organization are altered. Also known as reorganization, restructuring and
turn around.
According to Keith Davis “Work change is any alternation that occurs in the
work environment change is a human as well as a technical problem.”
“Change is any modification or alternation of the status quo.” R. M. Hodgetts
Mr. John Bull defines organisational change as “When an organisational

system is disturbed by some internal or external force, change frequently
occurs. Change as a process, is simply modification of the structure or
process of a system. It may be good or bad, the concept is disruptive only”.
TYPES
Typically, the phrase “organizational change” is about a significant change in
the organization, such as reorganization or adding a major new product or
service. This is in contrast to smaller changes, such as adopting a new
computer procedure. Organizational change can seem like such a vague
phenomenon that it is helpful if you can think of change in terms of various
dimensions as described below.
Organization-wide Versus Subsystem Change
Examples of organization-wide change might be a major restructuring,
collaboration or “rightsizing.” Usually, organizations must undertake
organization-wide change to evolve to a different level in their life cycle, for
example, going from a highly reactive, entrepreneurial organization toone that
has a more stable and planned development. Experts assert that successful
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organizational change requires a change in culture – cultural change is
another example of organization-wide change.
Examples of a change in a subsystem might include addition or removal of a
product or service, reorganization of a certain department, or implementation
of a new process to deliver products or services.
Transformational Versus Incremental Change
An example of transformational (or radical, fundamental) change might be
changing an organization’s structure and culture from the traditional top-
down, hierarchical structure to a large amount of self-directing teams.
Another example might be Business Process Re-engineering, which tries to
take apart (at least on paper, at first) the major parts and processes of the
organization and then put them back together in a more optimal fashion.
Transformational change is sometimes referred to as quantum change.
Examples of incremental change might include continuous improvement as a
quality management process or implementation of new computer system to
increase efficiencies. Many times, organizations experience incremental
change and its leaders do not recognize the change as such.
Remedial Versus Developmental Change
Change can be intended to remedy current situations, for example, to improve
the poor performance of a product or the entire organization, reduce burnout
in the workplace, help the organization to become much more proactive and
less reactive, or address large budget deficits. Remedial projects often seem
more focused and urgent because they are addressing a current, major
problem. It is often easier to determine the success of these projects because
the problem is solved or not.
Change can also be developmental – to make a successful situation even more
successful, for example, expand the amount of customers served, or duplicate
successful products or services.
Developmental projects can seem more general and vague than remedial,
depending on how specific goals are and how important it is for members of
the organization to achieve those goals.
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Some people might have different perceptions of what is a remedial change
versus a developmental change. They might see that if developmental changes
are not made soon, there will be need for remedial changes. Also,
organizations may recognize current remedial issues and then establish a
developmental vision to address the issues. In those situations, projects are
still remedial because they were conducted primarily to address current
issues.
Unplanned Versus Planned Change
Unplanned change usually occurs because of a major, sudden surprise to the
organization, which causes its members to respond in a highly reactive and
disorganized fashion. Unplanned change might occur when the Chief
Executive Officer suddenly leaves the organization, significant public relations
problems occur, poor product performance quickly results in loss of
customers, or other disruptive situations arise.
Planned change occurs when leaders in the organization recognize the need
for a major change and proactively organize a plan to accomplish the change.
Planned change occurs with successful implementation of a Strategic Plan,
plan for reorganization, or other implementation of a change of this
magnitude.
Note that planned change, even though based on a proactive and well-done
plan, often does not occur in a highly organized fashion. Instead, planned
change tends to occur in more of a chaotic and disruptive fashion than
expected by participants.
RESISTANCE TO CHANCE
Resistance to change is the act of opposing or struggling with modifications
or transformations that alter the status quo in the workplace.
DEFINITION: According to Ansoff, “Resistance to change is a multifaceted
phenomenon which introduces unanticipated delay, costs and instabilities
into the process of strategic change”
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There may be reasons for resistance to change for analytical purpose, lets us
categories the causes into the following.
 Individual Resistance.
 Group Resistance.
 Organizational Resistance.
1.INDIVIDUAL RESISTANCE
Individual arise due to differing perceptions, personalities and needs. Some
of these reasons appear to be rational and emotional. These reasons are listed
below,
a). Economic Factors
The economic reasons for the resistance to change may be the following:
In organization when the development or change on technology takes place,
employee resists the change. Employee may fear that the change will lead to
technological unemployment. Generally, new technology is associated with
education of labor intake and therefore they resist the change.
For example the introduction of computer in an organization means that
employee will have to learn the certain package to work efficiently. They may
not be liked by some employees and they develop negative attitude towards
computer and resist them.
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In organization where pay is tied to productivity individuals usually resists
change as they fear that they will not be able to perform new task effectively,
thus causing a decline in productivity and a decrease in their income.
Workers may fear that they will be demoted if they do not acquire the skills
required for the new jobs.
Workers resist the changes which lead to high standards which in turn may
reduce the opportunities for bonus or incentive pay.
 Habit: All human being are creatures of habit. Individual generally feel
comfortable in the environment that they are habituated to. The modern
life is very complex and no one likes to consider the full range of option
for the hundreds of decision which has to be made every day. Instead
we rely on habit or programmed responses. When confronted with
change, the thought if moving away from the environment they are
accustomed to become a source of resistance.
 Insecurity: Safety and security are high priority for every individual.
One of the major reasons for resistance to change is uncertainty about
the impact of change, especially on the job security. When employees
feel that the security of the job is threatened by change, they resist
it. The fear unknown always has a major impact on the decision of the
individual.
 Lack of Communication: If the workers are given an opportunity to
participate in the process of change, the resistance is likely to be less.
But if the change is not properly communicated that to in an acceptable
manner to the employees, it is likely to cause resistance.
 Extent of Change: If there is a minor change and the change involves
only the routine operations the resistance will be minimum or no
resistance. But in case of major changes like reshuffling of staff will lead
to major visible resistance. Similarly, the process of change is slow, the
resistance will be less as compared to rapid or sudden change.
b). Psychological Factors
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One of the major reasons for resistance can be emotional turmoil that a
change may cause especially if the past experiences with the change have not
been positive.
The psychological reasons for the resistance to change are:
 Workers may have the fear that the new job will bring boredom and
monotony as a result of specialization brought by the new technology.
 Change in technology brings new method of doing the job and it must
be learnt and adopt the new ideas of doing the job. To learn these ideas
they need work hard and they do not want to take the trouble in
learning new things.
 The workers may be incapable of understanding the implications of new
ideas and method.
 Workers may not like criticism implied in a change that the present
method is inadequate and unsuitable.
 New changes may lead to reduction of the personal pride of the workers
because they fear that new work changes will do away with the need for
much manual work.
c). Social Factors
Every individual has social needs like friends, belongingness, etc. In
organization, while working employee develop social relationship with the
other employees. They become members of certain informal group. The
change will bring a fear in mind of people because generally people dislike
with for new adjustment, breaking present social relationship reduce social
relationship, feeling of outside interference in the form change agent etc.
2. GROUP RESISTANCE
While working in an organization the employee forms informal group in the
organization. The most organizational change has impact in informal group
in the organization. Breaking up a close knit work group or changing social
relationship can provoke a great deal of resistance.
The main reason why the groups resist change is that they fear that their
cohesiveness or existence is threatened by it. This is particularly true in case
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of group which are very cohesive where people have a strong case of
belongingness to group and where member consider the group as superior to
the other groups.
3. ORGANIZATIONAL RESISTANCE
Organizational resistance means that the change is resisted at the level of the
organization itself. Some organizations are so designed that they resist new
ideas, this is specifically true in case of organizations which are conservative
in nature. Government agencies want to continue doing what they have been
doing for a number of years even though there is need for the change in their
services. Majority of the business firms are also resistant to changes.
The major reasons for organizational resistance are:
 Threat to Power. Top management generally considers change as a
threat to their power and influence in the organization due to which the
change will be resisted by them. The introduction of participative
decision making or self-managed work teams is the kind of change
which is often seen as threatening by the middle and top level
management.
 Group inertia. Sometimes, the individuals resist change because the
group to which they belong resists it. The degree and force of resistance
will depend upon how loyal one is to the group and how effectively the
group resists the change.
 Organizational structure. Change is often resisted by the bureaucratic
structures where jobs are narrowly defined, lines of authority clearly
spelled and flow of information is stressed from top to bottom.
Moreover, organizations are made up of a number of interdependent
subsystems, one system cannot be changed without affecting the
others.
 Threat to specialization. Change in organization may threaten the
expertise of specialized groups. For example, giving computer training
to all the employees in the organization and giving personal computers
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was perceived as a threat by the experts in computer department of the
organization.
 Resource constraints. Organizations need adequate financial resource
for training change agents and for offering rewards to those who
support change. An organization who does not have resources for
implementing the change resists it.
 Sunk cost. The change is generally resisted by the top management
because it often leads to the problem of sunk costs. The heavy capital
which already invested in the fixed assets or the amount which has
already been spent on the training of the employees will go waste if the
change is introduced.
OVERCOMING RESISTANCE TO CHANCE

According to Kotter and Schlesinger (1979) proposed six crucial techniques
for overcoming the resistance to change. These are given below
Widespread Education and Improving Communication
Facilitating Participation and involvement
Support and Facilitation
Agreement & Negotiation
Co-optation & Manipulation
Coercion-Both Explicit and Implicit
Education and Effective Communication: This is one of the commonest
techniques for minimizing resistance to change by educating people and
promoting awareness through effective communication regarding the benefits
of a planned change. By explaining the need for change and the objectives of
change, the management can gain the much-needed support from the team
members and facilitate its smoother implementation.
With the help of two-way communication, the employee’s queries and
oppositions related to various aspects of change can be quickly addressed and
thereby, minimize the objections or hassles which may come across in the
path of implementation of change.
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Given below are the important principles which are related to the
communication of change and require a lot of attention while implementation
a planned change:
 A large-scale planned change can be effective and yield successful
outcomes only if it involves two-way communication efforts. Only top
down communication or one-way communication will fail to attract the
desired commitment from the staff members.
 The staff members do have a preference for being communicated about
the change on face to face basis from their immediate supervisors.
 According to Beckhard & Pritchard 1992; Robbins et al. 1998;
Ivancevich & Matteson 1996, employees prefer a consultation and
involvement in the change.
Few important things which should be essentially followed while
implementing an organization-wide change are:
 Avoid sending emails or memo for informing the employees regarding a
change initiative and expect that the employees will be able to
understand and accept it readily.
 Invite the suggestions and feedback from the staff members, involve
them in the process and encourage their participation for effective
results.
 Communicate with people regularly by engaging in face to face
interactions with them both individually and in groups and provide
them opportunities for discussion.
Facilitating Participation and Involvement: This technique gives a lot of
importance to involving the resistors in the change process by setting up a
collaborative environment and implementing the change in consultation with
the staff. It is a constructive strategy and can be beneficial in minimizing the
resistance to change by involving the employees and seeking their
participation in the entire process.
Support and Facilitation: Employees fear or resist change due to a number
of reasons as a result of which they pose a resistance or oppose any kind of
transformation in the existing ways of work or methods. The employees look
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for complete emotional support and facilitation for being able to cope up with
the challenges resulting from the change and should be allowed to express
their fear, resentment or anger in connection with the change and the
challenges of change.
Agreement & Negotiation: This technique involves negotiating or bargaining
with the resistors on various aspects related to the change and making
tradeoffs so that the concerns of the resistors and the management are both
being given due consideration and importance.
Co-optation & Manipulation: This technique involves getting the support,
persuading or influencing the employees in favor of the change. Manipulation
involves covert attempts from the managers by withholding painful
information, twisting or distortion of the information for making it more
appealing for the staff members or spreading false rumors across the
organization in order to compel the employees to accept the change
manipulatively.
Alternately, the managers can depend on staff polling strategy and make an
attempt towards persuading the resistors to join the rest of the group. The
management may even co-opt an individual and assign certain important
responsibilities in connection with the implementation of change.
Coercion: Implicit and Explicit: Coercion involves exercising force or threat
for making the change accepted and followed by the employees. This strategy
emphasizes more on the use of fear by way of direct or indirect threats and
involves harassment, bullying or compels the employees to act in accordance
with the expected ways or else resign. This strategy is illegal, ineffective and
in the long-run, will result in mass resentment, dissatisfaction, high rate of
absenteeism, low productivity and ultimately high employee turnover.
APPROACHES
LEWIN’S THREE-STEP CHANGE MODEL
Kurt Lewin’s Three Stages model or the Planned Approach to Organizational
is one of the cornerstone models which is relevant in the present scenario
even.
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Lewin, a social scientist and a physicist, during early 1950s propounded a
simple framework for understanding the process of organizational change
known as the Three-Stage Theory which he referred as Unfreeze, Change
(Transition) and Freeze (Refreeze).
According to Lewin, Change for any individual or an organization is a
complicated journey which may not be very simple and mostly involves several
stages of transitions or misunderstandings before attaining the stage of
equilibrium or stability.
For explaining the process of organizational change, he used the analogy of

how an ice block changes its shape to transform into a cone of ice through
the process of unfreezing.
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Stage 1 - Unfreezing: This is the first stage of transition and one of the most
critical stages in the entire process of change management. It involves
improving the readiness as well as the willingness of people to change by
fostering a realization for moving from the existing comfort zone to a
transformed situation. It involves making people aware of the need for change
and improving their motivation for accepting the new ways of working for
better results. During this stage, effective communication plays a vital role in
getting the desired support and involvement of the people in the change
process.
Stage 2 - Change: This stage can also be regarded as the stage of Transition
or the stage of actual implementation of change. It involves the acceptance of
the new ways of doing things. This is the stage in which the people are
unfrozen, and the actual change is implemented. During this stage, careful
planning, effective communication and encouraging the involvement of
individuals for endorsing the change is necessary. It is believed that this stage
of transition is not that easy due to the uncertainties or people are fearful of
the consequences of adopting a change process.
Stage 3 - Freeze (Refreezing): During this stage, the people move from the
stage of transition (change) to a much more stable state which we can regard
as the state of equilibrium. The stage of Refreezing is the ultimate stage in
which people accept or internalize the new ways of working or change, accept
it as a part of their life and establish new relationships. For strengthening and
reinforcing the new behaviour or changes in the way of working, the
employees should be rewarded, recognized and provided positive
reinforcements, supporting policies or structures can help in reinforcing the
transformed ways of working.
The three stages of Change Management can be aptly explained through the
aid of an example of Nissan Motor Company which was on the stage of
bankruptcy due to the issues of high debts and dipping market share.
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During that period, Carlos Ghosn took charge as the head of the Japanese
automaker who was faced with the challenge of implementing a radical
change and turning around the operations of Nissan, yet by keeping the
resistance to change under control which was inevitable under such
circumstances by forming cross-functional teams to recommend a robust
plan of change in different functional areas. For facing the business
challenges, he developed a change management strategy and involved the
employees in the process of change management through effective
communication and reinforcement of desired behaviours. For refreezing the
behavioural change of the employees, he introduced performance-based pay,
implemented an open system of feedback for guiding and facilitating the
employees in accepting the new behaviour patterns at work.
According to Branch (2002, p. 4), Lewin’s change management model can be

implemented in three ways:
 Changing the behaviour, attitudes, skills of the individuals working in
the organization.
 Changing the existing organizational structures, systems and processes
 Changing the organizational climate, culture and interpersonal style.
Lewin’s model stressed on the interdependence of various units as well as
subunits in an organization. This model assumes that organizations function
under static conditions and move from one state of stability to another state
of stability in a planned way, but the present day organizations function in
turbulent scenarios and uncertain business environments.
KOTTER’S EIGHT-STEP PLAN FOR IMPLEMENTING CHANGE
John Kotter (1996), a Harvard Business School Professor and a renowned

change expert, in his book “Leading Change”, introduced 8 Step Model of
Change which he developed on the basis of research of 100 organizations
which were going through a process of change.
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The 8 steps in the process of change include: creating a sense of urgency,

forming powerful guiding coalitions, developing a vision and a strategy,
communicating the vision, removing obstacles and empowering employees for
action, creating short-term wins, consolidating gains and strengthening
change by anchoring change in the culture. Kotter’s 8 step model can be
explained with the help of the illustration given below
Creating an Urgency:
This can be done in the following ways:
 Identifying and highlighting the potential threats and the repercussions
which might crop up in the future.
 Examining the opportunities which can be tapped through effective
interventions.
 Initiate honest dialogues and discussions to make people think over the
prevalent issues and give convincing reasons to them.
 Request the involvement and support of the industry people, key
stakeholders and customers on the issue of change.
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Forming Powerful Guiding Coalitions
This can be achieved in the following ways:
 Identifying the effective change leaders in your organizations and also
the key stakeholders, requesting their involvement and commitment
towards the entire process.
 Form a powerful change coalition who would be working as a team.
 Identify the weak areas in the coalition teams and ensure that the team
involves many influential people from various cross functional
departments and working in different levels in the company.
Developing a Vision and a Strategy
This can be achieved by:
Determining the core values, defining the ultimate vision and the
strategies for realizing a change in an organization.
Ensure that the change leaders can describe the vision effectively and
in a manner that people can easily understand and follow.
Communicating the Vision
Communicate the change in the vision very often powerfully and
convincingly. Connect the vision with all the crucial aspects like
performance reviews, training, etc.
Handle the concerns and issues of people honestly and with
involvement.
Removing Obstacles
Ensure that the organizational processes and structure are in place and
aligned with the overall organizational vision.
Continuously check for barriers or people who are resisting change.
Implement proactive actions to remove the obstacles involved in the
process of change.
Reward people for endorsing change and supporting in the process.
Creating Short-Term Wins
 By creating short term wins early in the change process, you can give a
feel of victory in the early stages of change.
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 Create many short term targets instead of one long-term goal, which
are achievable and less expensive and have lesser possibilities of failure.
 Reward the contributions of people who are involved in meeting the
targets.
Consolidating Gains
 Achieve continuous improvement by analysing the success stories
individually and improving from those individual experiences.
Anchoring Change in the Corporate Culture
☺ Discuss the successful stories related to change initiatives on every
given opportunity.
☺ Ensure that the change becomes an integral part in your organizational
culture and is visible in every organizational aspect.
☺ Ensure that the support of the existing company leaders as well as the
new leaders continue to extend their support towards the change.
ORGANISATIONAL DEVELOPMENT
DEFINITION
Organization Development (OD) is a planned process of change in an
organization’s culture through the utilization of behavioral science
technology, research, and theory.
OD refers to a long-range effort to improve an organization’s problem-solving
capabilities and its ability to cope with changes in its external environment
with the help of external or internal behavioral-scientist consultants.
Organisational development is planned, organisation wide, managed from top
to increase organisational effectiveness and health through planned
interventions is the organisation processes using knowledge of the
behavioural science. – Beckhard, 1969
Organisational development is a response to change a complex educational
strategy intended to change the beliefs, attitudes values, and structure of
organisations so that they can better adopt to new technologies, markets,
and- challenges, and the dizzying rate of change itself. – Bennis, 1969
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Organisation development is a process of planned change of an organisation’s
culture from one which avoids an examination of social processes (especially
decision making, planning, and communication) to one which
institutionalizes and legitimizes this examination. – Burke and Hornstein,
1972
Organisational development is planned process of change in an organisation’s
culture through the utilization of behavioural science technologies, research,
and theory. -Burke, 1994
NATURE/FEATURES /CHARACTERISTICS
1) Long Range Effort: OD is not designed to solve short term temporary or
isolated problems. It is long term approach meant to elevate the organisation
to a higher level of functioning by improving the performance and satisfaction
of organisation members.
2) Broad Based: OD is used broadly to describe a variety of change programs.
It essentially deals with big picture – The Organisation.
3) Dynamic Process: OD includes the effort to guide and direct change as
well as to cope with or adopt to impose change.
4) System View: OD utilises system thinking. It is based on an open, adaptive
system concept. It recognises organisation structure and management
performance are mutually interdependent. The organisation is treated as an
interrelated whole and no part of the organisation can be changed without
affecting other parts.
5) Research Based: Most OD interventions are research based, not just
introspect employees rather collect data, evaluate and take decisions.
6) Goal Setting and Planning: Since OD is concerned with the entire
organisation, the change agents define goals of the group and will see to it
that together they all work to achieve the goal.
7) Normative re-educative strategy: OD is based on the principle that
“norms fond the basis of behaviour and change is re-educative process of
replacing old by new ones”.
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OD INTERVENTIONS
INTRODUCTION
OD interventions are the building blocks which are the planned activities
designed to improve the organisation’s functioning through the participation
of the organisational members.
OD interventions include team development, laboratory training, managerial
grid training, brainstorming and intergroup team building. The intervention
should take place at all three levels, namely, individual, group and
organisation.
DEFINITION
OD intervention refers to the range of planned, programmatic activities client
and consultant participate in during the course of OD program.- French &
Bell
OD intervention is a sequence of activities actions and events intended to help
an organisation improve its performance and effectiveness. - Rober Zawacki
TYPES OF OD INTERVENTIONS
We can classify the OD interventions into three categories
1. Behavioural Techniques: These techniques are designed to affect the
behaviour of individuals and the group. These include:
Sensitivity Training
Role Playing
Management by Objectives
Grid Organisation Development
2. Non-Behavioural Techniques: These techniques are much more
structured than behavioural techniques. These include:
Organizational Redesign
Work design
Job enrichment
3. Miscellaneous Techniques: In addition to the above techniques, there are
certain other techniques which are used in organisation development, such
as:
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Survey feedback
Process consultation
Team building
Some of these intervention techniques are discussed briefly:

Behavioural Techniques
Sensitivity Training
The purpose of sensitivity training sessions or T-groups (T for training) is to
change the behaviour of people through unstructured group interaction.
Members (ten to fifteen individuals) are brought together in a free and open
environment, away from work places, in which participants discuss
themselves freely, aided by a facilitator. No formal agenda is provided.
The objectives of the T-groups are
 To provide the participants with increased awareness of their own
behaviour
 How others perceive the, greater sensitivity to the behaviour of others
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 Increased understanding of group processes.
Role Playing
Role playing may be described as a technique of creating a life situation,
usually one involving conflict between people, and then having persons in
group play the parts or roles of specific personalities. In industry, it is used
primarily as a technique of or modifying attitudes and interpersonal skills.
For instance, two trainees may play the roles of a superior and a subordinate
to discuss the latter’s grievances.
The purpose of role playing is to aid trainees to understand certain business
problems and to enable observers to evaluate reactions to them.
Role-playing is generally used for human relations and sales training. This
technique makes trainees self-conscious and imaginative and analytical of
their own behaviour.
Management by Objectives (MBO)
Managing by objectives is a dynamic system which integrated the company’s
need to achieve its goals for profit and growth with the manager’s need to
contribute and develop himself.
Management by objectives (MBO) is a technique designed to
 Increase the precision of the planing process at the organisational level.
 Reduce the gap between employee and organisational goals.
 MBO encourages performance appraisal through a process of shared
goal setting and evaluation.
Grid development
Grid organisational development is based on Blake and Moution’s model of
leadership called the managerial Grid. Their model depicts two prevailing
concerns found in all organisations-concern for productivity and concern for
people.
Some managers are high in concern for productivity but low in concern for
people; others are high in concern for people but low in concern for
productivity.
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Besides helping managers evaluate their concern for proper and productivity,
the Managerial Grid stresses the importance of developing a team-
management leadership style.
In grid OD, change agents use a questionnaire to determine the existing styles
of managers, help them to re-examine their own styles and work towards
maximum effectiveness.
Non-Behavioural Techniques
Organizational Redesign
The organisation’s structure may be changed to make it more efficient by
redefining the flow of authority. There are call also be changes in functional
responsibility, such as a move from product to matrix organisational
structure.
Organisational structure often reflects the personal desires, needs, and values
of the chief executive. Changing structure, therefore, may create resistance
and concern because people are worried about their power or status, or how
the change will affect their work groups.
Job Enrichment
Job enrichment implies increasing the cents of a job or the deliberate
upgrading of the responsibility, scope and challenge in work.
Job enrichment is a motivational technique which emphasises the need for
challenging and interesting work. It suggests that jobs be redesigned, so that
intrinsic satisfaction is derived from doing the job.
In its best application, it leads to a vertically enhanced job by adding functions
from other organisational levels, making it contain more variety and challenge
and offer autonomy and pride to employee.
The job holder is given a measure of discretion in making operational
decisions concerning his job. In this sense, he gains a feeling of higher status
influence and power.
Work Design
Work design is a broad term meaning the process of defining tasks and jobs
to achieve both organisational and employee goals, it must, therefore, take
into account the nature of the business (organisational interest), the
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organisational structure, the information flow and decision process, the
differences among employees, and the reward system.
Within the board scope of work, design is the design of individual jobs, that
is, job design.
 Job analysis is the process of obtaining information about jobs.
 Job redesign makes use of job analysis to redefine a job in terms of
tasks, behaviours, education, skills, relationships, and responsibilities
required.
Miscellaneous Techniques
Survey Feedback
Survey feedback is one of the most popular and widely used intervention
techniques, in the field of OD.
It involves two basic activities:
 collecting data about the organisation through the use of surveys of
questionnaires, and
 conducting feedback meetings and workshops in which the data are
presented to organisational members.
Survey feedback is useful in as much as it helps bring about changes in
attitudes and perceptions of participants. Used along with team building the
impact of the survey feedback is much more positive.
Process Consultation
Process consultation includes “a set of activities on the part of a consultant
which help the client to perceive, understand, and act upon process events
which occur in the client’s environment”.
Process consultation assumes that an organisation’s effectiveness depends on
how well its people relate to one another. An organisation’s problems,
therefore, often can be traced to the breakdown of critical human processes
at key places.
Consultation concentrates on certain specific areas as communication,
functional roles of members, group problem-solving and decision-making;
group norms and growth, leadership and authority, and intergroup
cooperation and competition.
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Team Building
Team building is a process of diagnosing and improving the effectiveness of a
work group with particular attention to work procedures and inter-personal
relationship smith in it, especially the role of the leader in relation to other
group members.
Both the group’s task procedures and its human interactions are the subjects
of study in team building.
The basic assumption of team building is that increasing the effectiveness of
teams will improve the organization’s overall effectiveness.
14 OD INTERVENTIONS
14 Type of OD Interventions techniques is discussed briefly below:
1) Diagnostic activities: These are fact-finding activities designed to find
the current state of a client system.
2) Team building activities: These are designed to enhance the effective
operation of teams.
3) Intergroup activities: these are the activities designed to improve the
effectiveness of interdependent groups.
4) Survey feedback activities: These activities rely on gathering the
information that is used in understanding problems or opportunities.
5) Education and training activities: Activities designed to improve
individual’s skills abilities and knowledge.
6) Techno structural or structural activities: Activities designed to
improve the effectiveness of organizational structure & Job design.
7) Process consultation activities: The activities that are designed in
consultation to help the client to perceive understand and act upon
events that occur in the client’s environment.
8) Grid organisation development activities: These activities are
developed by Robert Blake and Mouton which constitutes of six phase
model involving the total organisation.
9) Third party peacemaking activities: Activities designed and
conducted by a skilled consultant to manage interpersonal conflict in
the process of organizational change.
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10) Coaching & Counseling activities: Activities that help the individual
to define learning goals, to understand others behaviour & to see how
others see their behaviour.
11) Life & Career planning activities: Activities that enable individuals to
focus on their life and career objectives & way to achieve them.
12) Planning & goal-setting activities: Activities that include goal setting,
problem solving, discrepancies if any to achieve objectives.
13) Strategic Management activities: Activities that link the interventions
with basic mission & environmental scanning & which helps in long-
range planning.
14) Organization Transformation activities: Activities that involve large
scale system changes or fundamental change in the nature of an
organization.
******************
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Principles of Management and Organisational Behaviour Dr.B.

TYPES AND LEVELS OF ORGANISATIONAL CONFLICT

A. POTENTIAL SOURCES OF STRESS AMONG EMPLOYEES:

“Change is any modification or alternation of the status quo.” R. M. Hodgetts

Mr. John Bull defines organisational change as “When an organisational

OVERCOMING RESISTANCE TO CHANCE

For explaining the process of organizational change, he used the analogy of

According to Branch (2002, p. 4), Lewin’s change management model can be

KOTTER’S EIGHT-STEP PLAN FOR IMPLEMENTING CHANGE

John Kotter (1996), a Harvard Business School Professor and a renowned

The 8 steps in the process of change include: creating a sense of urgency,

Some of these intervention techniques are discussed briefly:

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