Unit 1

1.1 INTRODUCTION

Today, an organization can be seen as an entity which is continuously working

with the complex and dynamic business environment. The situational approach
of managing the organizational structure also emphasize on the fact that the
organizations must make themselves adaptive according to the current
environment in order to be competitive and innovative in nature so as to make
the most of the opportunity. The strength of any business concern can only be
seen at the time of changing scenarios. It can be checked from the managerial
efficiency of the business unit that to what extent the top management has
achieved successful implementation and management of the change. Think of a
situation, where there is no change in the working environment of the business
concern. Then, in that case, the top management job which is generally,
considered as a think tank of the organization would be relatively very easy.
The whole management process would remain same for tomorrow like it is for
today. Moreover, the current organizational design is going to be same because
there would be no uncertainty in the environment. Similarly, decision-making
process would be dramatically simple and accurate for every situation. In short,
it would, indeed, simplify the whole of the management job. But, in reality, it is
not true. Change is an inevitable organizational reality. And managing change is
an integral part of every manager working in the organization, no matter to
which level it belong.

1.2 CHANGE MANAGEMENT

Change management is composed of two words Change + Management.

Change management is the process, tools and techniques to manage the people
side of change to achieve the required business outcome. Change management
incorporates the organizational tools that can be utilized to help individuals
make successful personal transitions resulting in the adoption and realization of
change. Management is a multipurpose organ that manages a business, manages
a manager and manages workers and work (P.Drucker). Without efficient
management, we cannot secure best allocation and utilization of human,
material and financial resources. Thus, when we consider change management
collectively, it can simply be meant that in order to achieve thorough and
smooth transmission from the current state to the future desired state change
management is applied. The reason that lies behind applying change
management is to ensure that allocation and utilization of present available
resources in the best possible way so as to achieve the objectives efficiently and
effectively.

For a business entity working in the dynamic environment, change is the only
constant and it has to be accepted in order to maintain existence. So, the
organizations here need to remain flexible in every aspect in order to fix any
change at the minimum cost. Thus, change management is a scientific and
systematic approach to ensure proper implementation of the change for attaining
a desired state in order to achieve organizational objectives. It is exactly like
adopting a proactive approach in dealing with the people and for that openness,
communication and involvement needs to be taken care of.

1.3 Characteristics of Change:

One of the overlooked elements of an implementation strategy of any kind of

technology is change management. Even when change is widely understood as
an improvement over the status quo, individuals instinctually cling to their
comfort zones. Why? Because people naturally fear the unknown. Luckily, the
ways that organizational leaders communicate and manage change can
positively affect how change is adopted. There are many flavours and degrees
of change, and, as such, the approach to leading change will vary widely from
situation to situation, based on the scope and complexity of the change, the
environment, the stakeholder audience that will be affected, etc. That said,
successful change strategies typically exhibit one or more of the following key
features:

1. They take a systematic approach to the “human side” of the change.

Any significant change creates human-relations issues. Employees may be
asked to take on new roles and responsibilities; new skills and capabilities may
need to be developed. Addressing these issues with reactive, ad hoc solutions
puts speed, company morale, and results at risk. To mitigate this risk, successful
change strategies typically feature a formal-yet-flexible approach for managing
change that systematically addresses all potential human-relations issues that
may arise on account of the change. This approach is best developed early on in
the change process.

2. They have the long-term commitment of senior management.

Because change is inherently unsettling for people at all levels of an
organization, employees will typically look to senior management for strength,
support, and direction when change is upon them. As such, successful change
strategies typically secure the full commitment of organization leaders before a
planned change is even announced. These leaders are then expected to model
the desired new behaviours, and, in doing so, challenge and motivate the rest of
the institution.

3. They involve leaders at every layer.

As a change program progresses from the initial strategy/ design phase to the
implementation phase, it affects different levels of an organization. As such,
successful change strategies typically include plans for identifying leaders
throughout the company and pushing responsibility for design and
implementation down, so that change cascades through the organization.

4. They encourage ownership by key players.

Large change programs demand ownership by leaders willing to accept
responsibility for effecting change in their areas of influence. A primary means
of encouraging ownership is by including individuals in the process of
identifying and solving problems. Ownership is then reinforced by incentives
and rewards.

5. They are committed to clear, regular, timely communication.

The most successful change programs reinforce core messages through clear,
regular, timely communication – starting even before the change occurs! At the
outset, communications efforts should ideally focus on articulating a convincing
need for the change and providing a road map to guide behavior and decision-
making. Thereafter, communications materials and forums should be developed
not only to push out information, but also to solicit employee input and
feedback.

6. They acknowledge the importance of corporate culture.

Cultural diagnostics can assess organizational preparedness for change; identify
problems and conflicts, if any; and define external and internal factors that can
influence stakeholder reception to change. Findings can then be used to inform
and enable program design and decision-making.

7. They prepare for the unexpected.

No change program goes completely according to plan. A successful change
management strategy typically prescribes continual reassessment of its impact
and the organization’s willingness and ability to adopt the next wave of
changes.

8. They support those affected by the change.

Because change is a time of uncertainty, successful change management
strategies are typically designed to support those affected by the change by
providing opportunities for feedback, training, personal counselling, etc.

9. A Dynamic process, rather than a Series of Events:

We often talk of Stone Age, agricultural age, machine age and the current
information age. The ‘ages’ indicate that society has been constantly changing
over time. This suggests that change is, and always has been a continuous
process. ‘Every moment the time changes – every second, millisecond,
microsecond, nanosecond and attosecond.’ It is this continuity, an indicator of
dynamism.

10. Change can be exciting and bring about the best work of a life-time:
Change always gives hope for the betterment, and this hope brings out the best
of a person..

1.4 TYPES OF CHANGE

Change can be classified into various forms according to its characteristics and
the target area it is going to affect. However, the same is briefly explained as
follows:
(i) Directional Change: It is a kind of change the organization usually adopts to
lead itself into new dimension. This change occurs on the condition of severe
competition and regulatory shifts in the Govt. policy. It is just like developing a
new strategy and implementing the developed strategy.
(ii) Incremental Change: This kind of change occurs gradually and slowly
with the passage of time. The rationale behind adopting this kind of change is to
avoid the organization with a sudden shock and therefore, slowly implement the
change so that the organization does not face much resistance from the
employees.
(iii) Operating Change: As the name suggests, it is mainly directed in
improving the quality, quantity, timeliness, operational cost and bringing cost-
effectiveness in the organizational level. The prime focus rests on improving the
prevailing operations and attains the organization goals by effectively utilizing
the resources.
(iv) Fundamental Change: This change may be necessitated by lower
turnover, failure of the expected business prospect, drastic change on the
business environment. In this type of change, organizations redefine the whole
purpose of their existence, their mission and their vision.
(v) Planned Change: It is basically a transformational change which occurs on
planned basis in accordance with the internal and external demand. It is a
change which is systematically organized so as to make fuller utilization of the
available business opportunity.

(vi) Transformational Change: This leads to change in entire or a greater part

of the organization. It simply, conveys the change in the shape, structure and
nature of the organization.
(vii) Strategic Change: This is a type of change which is primarily focused to
tackle with the competition existing for the business organization. It comprise of
taking moves which serves as competitive edge over the rivals in achieving
maximum share in the market.
(viii) Reactive Change: This change serves as a response to the environment. It
is basically taken when any change takes place in the environment and to
compete with the change the reaction is taken by the organization.
(ix) Recreational Change: This change acts as making new structure, system,
strategy for the business entity. It means starting from the scratch. The business
starts and recreates its whole organizational structure as well as the strategies in
a new form.
(x) Anticipatory Change: It is an expectation move mainly taken for the
purpose of some bright future prospect for achieving maximum benefits. The
change is mainly concentrated to make itself adaptable according to the change.
 (xi) Happened Change: This change is typically unpredictable and
uncontrollable and happens naturally due to the external forces of change. It
puts in front of the organization the challenges that put the organization into an
unknown future state.

1.5 Change Management Programmes

Change Management Programs enable companies to control the installation of

new processes to improve the realization of business benefits. These programs
involve devising change initiatives, generating organizational buy-in,
implementing the initiatives as seamlessly as possible and generating a
repeatable model for ensuring continued success in future change efforts. A
Change Management Program allows leaders to help people succeed, showing
where and when trouble is likely to occur, and laying out a strategy for
mitigating risks and monitoring progress.

1.5.1 How Change Management Programs work:

Change Management Programs require managers to:

 Focus on results. Maintain a goal-oriented mindset by establishing clear,

nonnegotiable goals and designing incentives to ensure these goals are met.
 Overcome barriers to change. Identify employees who are most affected and
also work to predict, measure and manage the risk of change.
 Repeatedly communicate simple, powerful messages to employees. In times of
change, alter communication frequency and the methods to manage how a
shaken workforce perceives and reacts to information:
o Ensure sponsorship throughout the organization. To allow sponsorship to reach
all levels of the organization, enlist multiple sponsors to provide all individuals
with access to and the influence of a sponsor.
o Reorganize around decision making. Develop a system for identifying, making
and executing the most important decisions.
 Continuously monitor progress. Follow through and monitor the progress of
each change initiative to tell if it is following the intended path or veering off
course.

Companies use Change Management Programs to:

 Implement major strategic initiatives to adapt to changes in markets, customer
preferences, technologies or the competition’s strategic plans
 Align and focus an organization when going through a major turnaround
 Implement new process initiatives

1.6 FORCES TO CHANGE

When we say “change” we simply meant mean “modify” or to become
something different. To give this a definitive form, change can be seen as a
systematic transition process from the present situation to the future desired
situation in order to remain in line with the current situation. Change forms an
evitable part of the organizational reality for the simple reason that it leads to
innovation which helps in attaining profitability objectives. To remain
differently visible among competition, innovation has always been a significant
aspect of managerial job which are now becoming more significant in the years
to come. The organization which fails to make it adaptive to the change is
surely going to fail. Therefore, change is required in the operational and
managerial functioning to maintain stability and existence.

The destiny of any concern is based on the fact that the policy makers are
having conscious and concerned watch on the different controllable and
uncontrollable forces which can affect the working. Hence, managers need to
first assess the impact and influence of the change and then, accordingly, evolve
appropriate strategies and action plan to maintain a balance. The various factors
which acts as a stimulus to change are:
A. External Forces
These forces are also considered as uncontrollable forces. The only option left
to the organization regarding these factors is to accept it and implement it
accordingly. The forces which come in the sphere of external forces are
particularly the one who are also seen as macro-environmental factors with a
wider scope to affect many working units at a same time. Therefore, the various
external forces that act as a catalyst to bring changes are as follows:
(i) Technological Forces: Technology has evidenced wide range of
transformations. From inventing a computer to landing on the moon, human
beings have travelled a long way through out several years. From the business
perspective, technology has always played an eminent role, say, hundred
workmen task being done by a single machine, replacing the manual work with
computers, using internet and social media networking in place of traditional
advertisement techniques etc. For the business houses, it is necessary that they
adopt the latest technology as soon as possible in order to remain cost effective
and bring profitability. New techniques of production, innovation in new
process and emphasis on research and development are some of the major
technological forces that may bring change in the organization.
(ii) Political and Legal Forces: The stability in the political as well as legal
environment is directly linked with the stability in the policies of business
houses. The forces which act as frequent impetus for change in the
organizations can be political ideology of the Govt. in power, the morality and
values which Govt. supports, their political stability. The other factors can be
Govt. interventions in the business and labour legislation, policies towards
business, trade and other foreign trade matters can also be counted to be
prominent forces for change.
(iii) Economic Forces: These forces affect almost all organization not within a
particular region but to all economic regions, i.e. these forces have no
boundaries and it is not only limited to a country but may have global effects.
For instance, global slowdown can affect many countries at a same time.
Similarly, in a particular single economy, uncertainties about monetary policies
measures, interest rate, fiscal policies and foreign exchange rates can create a
need for the organization to change.
(iv) Socio-cultural Forces: We as a human being are constantly changing and
so is our society and various cultures. This also leads for the organization to
remain dynamic for the simple reason that changing cultural values and norms,
spread of educational level, women empowerment issues, changing population
dynamics, increasing rate of urbanization etc. would be having an impact on the
business firms also.

(v) Market Forces: There are several market forces which affect the entire
working of the business. The reason here is that a business unit is directly and
indirectly linked with many stakeholders having some sort of interest with the
business. They are suppliers, competitors, customers, community and society
which can affect the working of the business unit. For example, we consider
competitors, which have a significant role to play in deciding organizations
tactics and strategies against any competitive move. Thus, organizations need to
change accordingly.
Internal Forces
These can be simply defined as controllable forces which are originated from
the internal operations of the organization or from the impact of external forces.
Say, if we take management is providing crutch facility for the children of
working women then it is management derived change move and if as per the
agreement with the trade union the crutch facility is provided then it is external
derivative force. These forces mainly include the following:
(i) System Dynamics: Organization system is composed of many sub-systems
which are collectively forming organization structure. Every sub-part is
interrelated with one another in one way or the other having a composite impact
on the activities of the organization. Thus, if any sub-system is losing its
efficiency and is not working parallel with the environment there ought to be a
change that is required.

(i) In efficiency in the Administrative Process: If the administrative structure

is such that it is lacking the efficiency to work with the prevailing environment
then there comes a need to alter the structure according to the forces which are
driving the change in order to walk along with the environment.
(iii) Organization Policies Agenda: A host of policies and programmes
relating to every aspects of organizational design are included in the policy
agenda of any organization. This would limit not only to the operational
activities but also to the personnel related activities also. If the management
feels to change any policy issue to make in line with the external environment
then, it would be acting as a force to change.
(iv)Workforce Composition: As it is evident that an organization is a
composition of human resources having different age, sex, education, socio-
cultural background and so forth. Change in the perception, belief, attitude,
feelings and expectation of the work force is also bound to affect the change in
the internal working of the organization.

(v) Production and Process Change: If the management feels that in order to
remain in flow of the current environment there is a need to implant new
production methods tools and techniques. It is pertinent that business move in
the direction of technological development. The changes it faces would be
regarding the restructuring of job design, interaction pattern among working
units, training and development programs etc. Thus, a change in any element of
the business unit is bound to have significant change in the entire working also.
(vi) Individual and Group Expectation: The organization is basically
characterized by the people working and every individual giving its services to
the organization have certain needs and aspiration. But it is a universal fact that
that the needs of the organization is never ending. Therefore, there are all new
expectations inside the individual or group from the organization which needs
to be satisfied. This expectation always induce the organization to change its
functioning accordingly and progress so that the organization remain successful
in fulfilling the aspiration of the individual or groups.

1.7 Managing The Change Process

The first step towards any change is awareness and then later on comes with it
the acceptance. Management need to understand the very reason for which the
change is required and communicates the positive effects it would be serving in
the future. It is equally essential that any change must be properly planned and
implemented, coping up with the changing environment as well as the
individuals working in the organization. The following steps can be followed in
order to manage the change properly:

(i) To identify the need to change

Initially, the management tries to identify and find out the requirement of
change. The need can be easily identified by the internal as well as external
factors stimulating the changes in the current pattern. For this purpose, the
management must require to collect all the relevant information to validate the
need for change. In addition to this, a manager must define in clear terms
whether the change is strategic, reactive, incremental or anticipatory in nature.

(ii) Communicating the change

Resistance to change is the first and foremost problem which management deals
with while implementing any change. People working in the organizations are
often concerned with the after effects of change that may affect them with
negative consequences. Thus, there is a misconception in the mind that any
change if implemented would create discomfort. So, they resist change for the
simple reason that they feel secure in the present working environment. Here, it
become imperative on the part of management communicates about why there
is a need to change, what the organization is striving to change and how the
change would be implemented. Therefore, effective communication can prove
to be a critical role player in overcoming the resistance to change.

(iii) Developing a support system

To implement any change effectively, it must be supported by the complete
participation of the entire organization. To fulfill this objective, management
need to develop a proper support system. The various systems which are going
to get affected by the change must be nurtured with the required support to
achieve greater outcome with less disarray. Here, it is essential to mention that
for providing a proper support system, business entity must have required
resources also, for matching up to that level in order to be in equilibrium.

(iv) Selecting an appropriate methodology

No matter how much an organization is resourceful in terms of financial,
physical as well as human, if it does not have the capacity to manage them
properly it would eventually fail. While implementing any change the
methodology which an organization is applying must suit to the available
resources of the business entity. If the management fails in assessing and
matching the requirement which the present situation demands, then the whole
effort would prove to be of no use.

(v) Follow up action plan

Management task does not end up with the implementation of the change
methodology; rather, they are required to have a conscious watch on the
working of the change process till it achieves its objective for which the whole
process has been executed. Thus, the follow up plan by the management would
ensure successful implementation of the change process.

1.8 Organizational change and organizational transformation

Moving people from one department to another, adding or removing a layer in
the hierarchy, assigning new managers, creating or renaming roles, recruiting
some new people, or slimming down the organization, is about change. The
essence is still the same, nothing new has been created from the original
components. That is the main reason for why many organizational changes have
the tendency to go back to its previous state, it is like re-painting a house in the
original color. Change managers job is too make us to like the new color or at
least to accept it. They also want to convince us not to do spots on it like the
saboteurs do and not to paint it again in the old color like the resistors do when
they go back to the former state. Then they will use best practices based on
previous experiences.

Organizational transformation it’s about changing the essence, about creating

something new based on the old parts; it is about utilizing the potential and
capabilities in a different way. People in the organization are also considered
the “old parts” and competence development is what transforms people; not just
a training but true competence development.

Transformation is also about daring to convert the legs of a table into a door
frame without knowing exactly how is going to be or how is going to look like.
The organization needs to replace the current state with something completely
new and in many cases unknown.

To conduct organizational transformation, organizational developers or

designers are needed. They need to have a deep understanding of what we have
in order to create something new out of it. To use of best practices is not very
helpful because organizational transformation is somehow unique. Of course,
we need to learn from the past but if we are to focus on the best practices from
our past experiences, we are limiting our future and transformation is about the
future. A good thing is to remember that the Titanic catastrophe was caused by
best practices. The Titanic was “the unsinkable new innovation”, but the crew
acted as if they were in a normal boat when approaching an iceberg; they threw
the engines into reverse and the rudder turned hard left. Why? It was just best
practice!

Being able to successfully transform an organization requires a leadership style

that operates with the eyes in the future but with a good understanding of the
current state.
Unit 2

2.1 ORGANIZATIONAL DEVELOPMENT

Organizational development is a planned process of change in an organization’s

culture through utilization of behavioral science technologies. According to
French and Bell, “Organizational development is a long term efforts, led and
supported by top management to improve an organization’s visioning,
empowerment, learning and problem solving processes, through an ongoing,
collaborative management or organization culture – with special emphasis on
the culture of intact work teams and other team configurations – utilizing the
consultant – facilitator role and the theory and technology of applied behavioral
science, including action research”.
OD is needed for (i) to provide training to employees to adjust with the change
being implemented, (ii) OD helps in making the organizational culture more
responsive to dynamic environment and changes taking place. This helps to
stabilize the change.

2.2 Objectives of Organisational Development

Organisation development efforts broadly aim at improving the organisational

effectiveness and job satisfaction of the employees. These aims can be attained
by humanising the organisations and encouraging the personal growth of
individual employees.
Specifically the OD Objectives are:
(1) To increase openness of communication among people.
(2) To increase commitment, self-direction and self-control.
(3) To encourage the people who are at the helm of affairs or close to the point
of actual action to make the decisions regarding their issues through
collaborative effort.
(4) To involve the members in the process of analysis and implementation.
(5) To encourage confrontation regarding organisational problems with a view
to arriving at effective decisions.
(6) To enhance personal enthusiasm and satisfaction levels.
(7) To increase the level of trust and support among employees.
(8) To develop strategic solutions to problems with higher frequency.
(9) To increase the level of individual and group responsibility in planning and
execution.

2.3 Features of Organizational Development

Feature # 1. Attention on the Entire Organisation:

Organisational development gives attention to the entire organisation to enable
the environment in the organisation to reinforce the employees to learn
whatever the programme specifies it. This learning is different from the
traditional training programme that emphasises a small group or a particular
job.
Feature # 2. System Oriented:
Development of organisation is based on system approaches. The various parts
of an organisation interact in such a way to give momentum for interpersonal
and intergroup cooperation. The system mainly aims at proper coordination of
all parts of the organisation for a better performance.
Feature # 3. Action Research:
This process in organisational development is to do research study of various
work situations. This method of study is conducted on actual work situations to
understand the problematic areas and remedying it accordingly, to improve the
performance of an organisation.
Feature # 4. Problem Solving:
Action research provides the data on problems faced while executing the jobs
and solving them through the practical experience gained over the years. This
develops an attitude of solving the problems which ultimately leads to self-
sufficiency.
Feature # 5. Group Process:
More importance is given to group activities rather than individuals. Thus, it
focuses on the improvement of group performance. Organisations have
developed various ways to improve the interpersonal relations, discussion
between the groups, intergroup functional conflicts, formation of team, etc., so
as to help develop the capabilities of an individual to have long-lasting personal
relations and intergroup communication.
Feature # 6. Feedback:
This is the process by which one understands other’s views on a certain subject.
The feedback by an individual helps to provide information, on the basis of
which a decision can be taken. This, in a way, contributes to organisational
development. For example, the participants are divided into separate groups.
A certain group takes a decision on a given subject, which is passed on to other
groups to obtain different opinions. Lastly, the members of different groups
come together for a live discussion; as a sequel to which a consensus and final
decision are arrived at on the given subject. Needless to mention that the total
process is entirely based on the feedback, received earlier.
Feature # 7. Learning through Experience:
Organisational behaviour enables an individual to learn through experience.
One can adopt new behavioural pattern through experience. It is a self-
motivated process, as it is said,” Experience without learning is more than
learning without experience.”
Feature # 8. Contingency Oriented:
Organisational development is basically determined on situation. People
develop their behavioural concept according to their experience. They are,
therefore, able to suggest various solutions to a problem and select a suitable
one according to contingencies. Organisational research has the viability to
select the correct solution to a problem, since it is flexible to solutions and
contingencies, compared to any traditional approach for solving the problem.
Feature # 9. Use of Change Agent:
The organisational development is that, it utilises a change agent (Catalyst) to
guide the change. The change agents are normally process agents or consultants
to guide the groups to an effective group process. These process agents cannot
be termed as the experts to tell the group what to do.
The role of an agent is to assist the group in solving the problem and the group
has to solve the same by itself. The change agent integrates four main parts of
the organisation, viz., people, structure, technology and social system for
effectiveness of the organisation.

2.4 Process of Organisational Development

The OD process is complicated and it takes long time to complete the process. It
takes minimum of one year and sometimes continues indefinitely. There are
different approaches to OD process but the typical process consists of seven
steps, viz., initial diagnosis, data collection, data feedback and confrontation,
action planning and problem solving, team building, intergroup development
and evaluation and follow-up.
(1) Initial Diagnosis:
If executives recognise that there are inadequacies within organisation which
can be corrected by OD activities, it is necessary to find out the professional and
competent people within the organisation to plan and execute OD activities. If
competent people are not available within the organisation the services of the
outside consultants to help in diagnosing the problem and developing OD
activities are to be taken. The consultants adopt various methods including
interviews, questionnaires, direct observation, analysis of documents and
reports for diagnosing the problem.
(2) Data Collection:
Survey method is used to collect the data and information for determining
organisational climate and identifying the behavioural problems.
(3) Data Feedback and Confrontation:
Data collected are analysed and reviewed by various work groups formed from
this purpose in order to mediate in the areas of disagreement or confrontation of
ideas or opinions and to establish priorities.
(4) Selection and Design of Interventions:
The interventions are the planned activities that are introduced into the system
to accomplish desired changes and improvements. At this stage the suitable
interventions are to be selected and designed.
(5) Implementation of Intervention:
The selected intervention should be implemented. Intervention may take the
form of workshops, feedback of data to the participants, group discussions,
written exercises, on-the-job activities, redesign of control system etc.
Interventions are to be implemented steadily as the process is not a “one-short,
quick cure” for organisational malady. But it achieves real and lasting change in
the attitudes and behaviour of employees.
(6) Action Planning and Problem Solving:
Groups prepare recommendations and specific action planning to solve the
specific and identified problems by using data collected.
(7) Team Building:
The consultants encourage the employees throughout the process to form into
groups and teams by explaining the advantages of the teams in the OD process,
by arranging joint meetings with the managers, subordinates etc.
(8) Inter-Group Development:
The consultants encourage the intergroup meetings, interaction etc., after the
formation of groups/teams.
(9) Evaluation and Follow-Up:
The organisation evaluates the OD programmes, find out their utility, and
develop the programmes further for correcting the deviations and/or improved
results. The consultants help the organisation in this respect.
All the steps in the OD processes should be followed by the organisation in
order to derive full range of OD benefits.

2.5 Interventions of Organisational Development

Organization Development (OD) interventions techniques are the methods

created by OD professionals and others. Single organization or consultant
cannot use all the interventions. They use these interventions depending upon
the need or requirement.
The most important interventions are:

1. Survey Feedback:
The intervention provides data and information to the managers. Information on
Attitudes of employees about wage level, and structure, hours of work, working
conditions and relations are collected and the results are supplied to the top
executive teams.
They analyze the data, find out the problem, evaluate the results and develop the
means to correct the problems identified. The teams are formed with the
employees at all levels in the organization hierarchy i.e. from the rank and file
to the top level.
2. Process Consultation:
The process consultant meets the members of the department and work teams
observes their interaction, problem identification skills, solving procedures etc.
He feeds back the team either the information collected through observations,
coaches and counsels individuals & groups in molding their behavior.
3. Goal Setting and Planning:
Each division in an organization sets the goals or formulates the plans for
profitability. These goals are sent to the top management which in turn sends
them back to the divisions after modification. A set of organization goals thus
emerge thereafter.
4. Managerial Grid:
This identifies a range of management behavior based on the different ways that
how production/service oriented and employee oriented states interact with each
other. Managerial grid is also called as instrumental laboratory training as it is a
structured version of laboratory training. It consists of individual and group
exercises with a view to developing awareness of individual managerial style
interpersonal competence and group effectiveness.
Thus grid training is related to the leadership styles. The managerial grid
focuses on the observations of behaviour in exercises specifically related to
work. Participants in this training are encouraged and helped to appraise their
own managerial style.
5. Management by Objectives (MBO):
MBO is a successful philosophy of management. It replaces the traditional
philosophy of “Management by Domination”. MBO led to a systematic Goal
setting and planning. Peter Drucker the eminent management Guru in 1959 has
first propagated the philosophy since then it has become a movement. MBO is a
process by which managers at different levels and their subordinates work
together in identifying goals and establishing objectives consistent with
Organizational goals and attaining them.
6. Team Building:
It is an application of various techniques of Sensitivity training to the actual
work groups in various departments. These work groups consist of peers and a
supervisor.
7. Sensitivity Training:
It is called a laboratory as it is conducted by creating an experimental laboratory
situation in which employees are brought together. The Team building
technique and training is designed to improve the ability of the employees to
work together as teams.
8. Job Enrichment:
It is currently practiced all over the world. It is based on the assumption in order
to motivate workers; job itself must provide opportunities for achievement,
recognition, responsibility, advancement and growth. The basic idea is to
restore to jobs the elements of interest that were taken away. In a job
enrichment program the worker decides how the job is performed, planned and
controlled and makes more decisions concerning the entire process.

2.6 Challenges of OD Practitioners

1. Managing performance to increase accountability

2. Building a pipeline of qualified leaders
3. Addressing the career development needs of a multigenerational workforce
4. Strategically communicating organizational priorities
5. Engaging and retaining a diverse workforce
6. Managing remote employees
7. On-boarding new employees
8. Implementing numerous, significant top down changes
9. Developing employees with less funds
10. Succession planning and talent development
Unit 3

3.1 Resistance To Change

What Is Resistance to Change?

Resistance to change is the unwillingness to adapt to altered circumstances. It

can be covert or overt, organized, or individual. Employees may realize they
don't like or want a change and resist publicly, and that can be very disruptive.

Employees can also feel uncomfortable with the changes introduced and resist,
sometimes unknowingly, through their actions, their language, and in
the Stories and conversations, they share in the workplace.

In a worst-case scenario, employees can be forceful in their refusal to adopt any

changes, bringing confrontation and conflict to your organization.

3.2 Reasons for Resistance to Change

In order to facilitate transitions and changes, managers must first be able to

identify the exact reason for resistance. Such resistance to change is common in
all organizations. The following are some common reasons for this:

 People generally find it convenient to continue doing something as they

have always been doing. Making them learn something new is difficult.

 Changes always bring about alterations in a person’s duties, powers, and

influence. Hence, the people to whom such changes will affect negatively
will always resist.

 People who are adamant on maintaining customs instead of taking risks and
doing new things will always resist changes. This can happen either due to
their insecurities or lack of creativity and will.

3.3 Types of Resistance to Change

Resistance to change may be of the following three types:

a) Logical resistance: This kind of resistance basically arises from the time
people genuinely take to adapt and adjust to changes. For example, when
computers became common, accountants had to shift from accounting on paper to
digital accounting. This naturally takes time to adapt to.

b) Psychological resistance: Under this category, the resistance occurs purely due
to mental and psychological factors. Individuals often resist changes for reasons
like fear of the unknown, less tolerance to change, dislike towards the
management, etc.

c) Sociological resistance: This resistance relates not to individuals but rather to

the common values and customs of groups. Individuals may be willing to change
but will not due to peer pressure from the group they are members of. For
example, if a worker’s union protests against new management policies, all
workers face pressure to protest together.

3.4 Overcoming Resistance

While change will almost always face resistance, it is certainly possible to

overcome it. Managers must strive to help their employees adjust to changes and
facilitate new variations in functioning.

Firstly, managers must be able to convince workers that the changes they are
proposing are necessary. They should show how the workers and the organization
itself will benefit from these changes.

Secondly, the management can keep the following considerations in mind to

implement changes smoothly:

 Changes should not happen in one go because it is easier to implement them

in stages.

 Changes should never cause security problems for the workers.

 Managers must consider the opinions of all employees on whom the

proposed change will have an effect.
  If managers portray leadership by first adapting to the changes themselves,
employees are less likely to resist.

 Sufficient prior training of employees can help them accept changes with
confidence.

3.4.1 Strategies for overcoming resistance to change

When considering the strategies and techniques for reducing resistance to
change, there are six broad areas in which organizations must operate.

1. Communication and education

Common issues that cause resistance to change include fear of the unknown and
a misunderstanding of why change is needed.
People will only accept change if they believe the risk of doing nothing is
higher than the risk of changing direction. Similarly, if people don’t understand
why change is needed, they will question why you are changing something that
they believe works well.
Communication and education about the change should begin before it is
initiated. This will help your people to rationalize the change, and ensure that
individuals and teams receive adequate information to make positive
judgements.

2. Participation
A lack of belief that the organization can make effective change leads to
resistance to change. Likewise, when people aren’t consulted and change is
forced upon them, there is likely to be more resistance. This is especially the
case if people believe their jobs will be at risk.
It is critical that the stakeholders and those implementing change are involved in
its design. A collaborative effort will engage people in the change, and in the
identification of potential issues and solutions. People are far less likely to resist
change that they have helped to create.

3. Support
Organizational transformation is usually accompanied by a change to routines,
taking people out of (long-established) comfort zones. This may also lead to
exhaustion, especially if the organization is subject to frequent change or
business evolution.
Even if people appear to be accepting of change, it may be that they are simply
resigned to it. They must be given the support needed to enable new skills to be
developed and ensure that change burnout does not become a reality.
Support requires managers to develop their emotional intelligence and connect
with their people. Offering adequate support is also time-consuming, requiring
trained managers and leaders to employ coaching tactics to be most effective
when managing change in an organization.

4. Agreement
Resistance to change is also precipitated when people feel they will be
negatively affected by its consequences. This may be because of a perception
that their earnings or career potential will be harmed or that the rewards of the
change are not worth the effort required.
To combat this type of resistance to change, an organization may consider
offering incentives. Such incentives may include extra pay, improved benefits,
or offering structured career plans. This strategy requires negotiation to reach
agreement. The drawback is that such agreements can be expensive and do not
guarantee engagement with change.

5. Co-opting
People become connected to the way that things have always been done. There
are often strong emotional connections to processes and procedures that
employees may have been at least partly responsible for developing. To bond
with the old may require a Herculean effort.
One strategy is to co-opt those who may be most resistant to change into central
roles in the implementation of change initiatives. This can gain the support of
would-be resistors relatively cheaply, though it does come with a caveat –
placing people who are deemed to be resistant to change in such positions could
give them a position from which to influence greater resistance across a wider
audience.

6. Coercion
Sometimes it is necessary to coerce people into accepting change. This is often
the case where people feel they cannot learn the new skills needed or if they feel
that change is a temporary fad that will be reversed.
Techniques for implementing change include wielding the threat of disciplinary
action while insisting that people fall into line with required behaviours and
actions. If speed of change is critical, coercion may be the only viable option.

Unit 4
4.1 Organisation Development Values:
Organisation development constitutes various people, professionals,
technocrats, researchers, managers and a host of other employees working in the
organisation contributing to the accomplishment of organisational objectives.
They behave differently. Authority and power, conflicts, control takes backseat
during OD process.

The following are the values in OD efforts:

1. Respect People:

People are the important part of an organisation and they are responsible for
creating opportunities for growth. They must, therefore, be treated with respect
and dignified manners.

2. Confidence and Support:

Organisations are made up of people and they are to be believed and supported
in order to have effective organisation. The healthy environment prevails when
people are trusted and taken into confidence and a necessary support is extended
to them as and when needed.

3. Confrontation:

Any conflict on any issue should not be suppressed. It should be dealt with
openness. Suppression leads to dampening of morale. Identifying the problem
and its causes, discussing it openly and finding out feasible solution leads to
boosting up morale of the employees and creating good environment.

4. Employee Participation:

The participation of employees who will be affected by the OD should be

sought in decision-making.

5. Expression:

Human beings differ in experience, maturity, ideas, opinions, and outlook. The
organisation is at the receiving end. It gains from the differences in quality,
ideas, opinions and experiences of its people. Human beings are social animals;
they have feelings, emotions, anger and sentiments etc. They should be allowed
to express their feelings and sentiments. This will result in building up high
morale and the people will be motivated towards hard work ultimately resulting
in increased efficiency.

6. Seeking Cooperation:

Managers should learn to seek cooperation from each of the employees working
under him in his department. This will develop in creating the atmosphere of
cooperation leading to organisational effectiveness and willingness to accept
change in the event of organisation development process.

4.2 Organizational Development Assumptions

There are some assumptions of organization development (OD). These
assumptions have been classified basically into 3 (three) types first as follows:

1. Individuals assumptions
2. Groups assumptions
3. Organizations assumptions
Newstrom and Davis have pointed out some assumptions under each category.

Assumptions of organization development

1. Individuals:

• Most individuals have drives toward personal growth and development,

and these are most likely to be actualized in an environment which is both
supportive and challenging.
• Most people desire to make, and are capable of making, a much higher
level of contribution to the attainment of organization goals than most
organizational environments will permit.

2. Groups:

• Most people wish to be accepted and to interact cooperatively with at

least one small reference group, and usually with more than one group,
e.g., the work group, the family group.
 • One of the most psychologically relevant reference groups for most
people is the work group, including peers and the superior.
• Most people are capable of greatly increasing their effectiveness in
helping their reference groups solve problems and in working effectively
together.
• For a group to optimize its effectiveness, the formal leader cannot
perform all of the leadership functions in all circumstances at all times,
and all group members must assist each other with effective leadership
and member behaviour.

3. Organization:

• Organizations tend to be characterized by overlapping, interdependent

work groups, and the "linking pin" function of supervisors and others needs
to be understood and facilitated."
• What happens in the broader organization affects the small work group and
vice versa.
• What happens to one subsystem (social, technological, or administrative)
will affect and be influenced by other parts of the system.
• The culture in most organizations tends to suppress the expression of
feelings which people have about each other and about where they and their
organizations are heading.
• Suppressed feelings adversely affect problem solving, personal growth, and
job satisfaction.
• The level of interpersonal trust, support, and cooperation is much lower in
most organizations than is either necessary or desirable.
• Viewing feelings as data important to the organization tends to open up
many avenues for improved goal setting, leadership, communications,
problem solving, intergroup collaboration, and morale.
• Improved performance stemming from organization development efforts
needs to be sustained by appropriate changes in the appraisal, compensation,
training, staffing, and task-specialization subsystem-in short, in the total
personnel system.