By: V.P.

Associate Professor

Change is inevitable  Change offers

 New

Opportunities  & Poses Formidable Challenges
 Change

is ‘Making Things Different’  Change can be
 Planned

(Deliberate)- Internal or Goal-Oriented  Unplanned (accidental)  Fast or slow  First Order (Incremental)  Second Order (Fundamental or Radical)

Acts as a catalyst and assumes responsibility for Managing change Process/Activities in area:
 Changing

structure  Changing technology  Changing physical setting  Changing people

 Individual

level  Group level  Organisation level

External causes
 Government

policies  Changes in the economy  Competition  Increase in raw materials cost  Technology push
 Internal
 Change


in leadership  Implementation of new technology  Decline in profitability  Union actions  Low morale & motivation

e.  Change takes place in all parts of the organisation but at varying rates of speed & degree of significance  Finally. its people. Organisational change refers to alteration of structural relationship and roles of people in the organisation. its technology can be changed. the enterprise can be changed in several ways i.  Change takes place in all organisations but at varying rates of speed and degree of significance.  .Change basically results from stimuli from both outside & inside the enterprise. its structure & other elements can be changed.

 To improve ability of the organisation to adapt to changes in its environment  It seeks to change employee behaviour (Individual & Groups) .

 First order change  Linear & continuous  No fundamental shift in assumptions  Second order change multi-level. discontinuous.  Multi-dimensional.g. radical change  Reframing of assumptions about the organisation and the world in which it operates  e. Boeing company in view of slump and aggressive competition from airbus .

incremental changes in production processes to improve efficiency at Toyota plants. decided second order changes like:  Slashing costs upto 30%  Reducing time of manufacture of aircraft from 13 months to 6 months  Dramatic cut in inventories  Bringing customers & suppliers together in designing new planes (Hitherto a secret exercise)  e.g. subtle. of First order changes:  Slow. .

What can a change agent can change?  Changing structure  Work specifications  Span of control  Organisational redesign  Centralization/De-centralization  Simple structure to team-based structure  Flexible work hours  Introducing performance bonuses or profit sharing  Changing Technology  Introduction of new equipment/tools. (improve quality/cut costs)  Automation  Computerization methods. .

) . Various types of interventions are needed to change people & quality of their work relationships known as – “Organisational Development” (O.  Changing  Changing people attitudes & behaviours of organisational members through process of communication. equipment placement. etc. Changing the physical setting  Considering work demands. interaction requirements. decision-making & problemsolving.D. interior design.

 Overt/ implicit  Immediate/ Deferred  Overt/ implicit: Easiest to Deal Deferred  Threaten to strike  Slow Down  Immediate/  Loss of loyalty to organisation  Loss of motivation to work  Increased errors/ mistakes (deliberate)  Increased absenteeism due to “Sickness”  Increased Turn-over of labour .

 Individual resistance  Organisational resistance  Resistance  Provides in a sense is positive degree of stability and predictability  Avoids chaotic randomness  Stimulates healthy debate .


are conservative and actively resist change. .Organisations by their very nature.

. this tendency to respond in our accustomed ways becomes a source of resistance.g. Life is complex enough and we do not need to consider the full range of options for the hundreds of decisions we have to make everyday. we are creatures of habit. Habit  As human beings. we all rely on habits or Programmed Responses but when confronted with change. Shifting of office to new location. To cope with this complexity. e.

g. Security  People with a high need for security are likely to resist change because it threatens their feeling of safety. when a company introduces a new robotic equipment. especially when pay is closely tied to productivity. .  Economic  Another factors source of individual resistance is concern that changes will lower one’s income. e. many employees may fear that their jobs are in danger. Changes in job tasks or established work routines if people are concerned that they would not be able to perform the new tasks or routines to their previous standards.

g. e. introduction of word processors. Fear of the unknown  The rate at which knowledge is exploding is incredible. knowledge in any particular field quickly becomes obsolete.  Selective Information Processing  Individuals shape their world through their perceptions. they have created this world. it resists change. So individuals are guilty of selectively processing information in order to keep what they want to hear. They ignore information that challenges the world they have created. Once. As a result. .

Whether the need for their services changes or remain the same. Government agencies want to continue doing what they have been doing for years. . They actively resist change. Organisations by their very nature are conservative.

this structural inertia acts as a counter balance to sustain stability. The people who are hired into an organisation are chosen for fit. For example. So limited change in subsystems tend to get nullified by larger system. Structural inertia  Organisations have built-in mechanisms to produce stability. When an organisation is confronted with change.  Limited  focus of change Organisations are made up of a number of independent sub systems . You cannot change one without affecting the others. they are then shaped and directed to behave in certain ways. the change in technology is not likely to be accepted. if management changes the technological process without simultaneously modifying the organisation’s structure to match. .

he is likely to resist such a change brought in by the management. An individual union member may be willing to accept changes in the job suggested by management but since he has to follow the rules of the union.  Threat  to Expertise Changes in organisational patterns may threaten the expertise of specialized groups. Group  inertia Even if individuals want to change their behaviour. The introduction of decentralised PC’s which allow managers to gain access directly from company’s mainframe is strongly resisted by information specialists (IT Specialists) . group norms may act as a constraint.

The introduction of participative decisionmaking or self-managed work-teams is the kind of change that is often seen as threatening by supervisors & middle managers. Threat  to established power relationships Any re-distribution of decision-making authority can threaten long-established power relationships within the organisation.  Threat  to established resources allocations Those in the organisation that control sizable resources often see change as a threat. Those that most benefit from the current allocation of resources often feel threatened by chances that may affect future allocations. .

 Disturbance in existing equilibrium  Imbalance in need satisfaction  Change affects emotions & Sentiments  Disturbance of social relationship  Opposition only for sake of opposition .

 Increase in responsibility  Change proposed by government & labour union  Change on experimental basis .

 Disturbance  Employees in existing equilibrium resist change whether in the form of apathy & indifference or in the form of opposition or hostility because changes disturbs the existing equilibrium in situation & environment. Every change may be resisted by employees though it may prove beneficial to them. The amount of resistance will depend on nature of employees & change concerned. . Workers are habitual to work in a particular situation of the environment in which individuals & groups exist.

 Imbalance  It in need satisfaction is assumed that prior to change. Change may prevent or decrease need satisfaction  Change  Apart affects emotions & sentiments from fears & apprehensions .real or imaginary about what will happen after the change. . people existed in an environment where their need satisfaction was at a higher degree of stability. people are emotionally & sentimentally disturbed.

Some people may interpret that the change as an indication of their poor performance in the job while some others may assume that their office would be soon abolished. In case of transferable job due to changes. Changes may affect groups norms.  Lack  of clarification Resistance can be expected if the nature of change is not made clear to persons who are going to be affected by the change. Disturbance of social relationship  Some people are very loyal to the group. lack of clarification regarding the nature of change invites resistance from the workers. etc. is disturbed & he is to start in a new environment. family life. . Thus. customs etc. Different people will see different meaning and interpretations in the proposed change. or even the composition itself.

Some people will oppose it only for the sake of opposition without having any reason or without understanding its pros & cons. Opposition only for the sake of opposition  Sometimes. . resistance to change is illogical and is only for the sake of opposition.

 Changes  proposed by government & labour union Sometimes changes are proposed by labour union and because the management takes it as an insulting matter to implement the change proposed by union. Some changes are forced by government for the industries to implement such changes. though mgt.Employers and management resist the change on the following grounds  Increase in responsibility  Management has to retrain the workers according to proposed changes and this in turn increases the responsibility of management./ employers have to implement it. they oppose any proposal of change. are resisted by them because they are not mentally prepared to implement. .

do not favour such temporary phase and oppose it if change does not suit them. Change  In on experimental basis few cases. changes are introduced on experimental basis viz. Some men in the mgt. if it is proved beneficial. . it will be extended further and be made permanent otherwise it will be abolished.

Six tactics have been suggested for use by change agents in dealing with resistance to change. . Communication can be achieved through one-to-one discussions. memos. This tactic basically assumes that the source of resistance lies in misinformation and poor communication.  Education & communication   Resistance can be reduced through communicating with employees to help them see the logic of change. resistance will subside. group presentations or reports etc. If employees receive the full facts and get misunderstandings cleared up.

obtain commitment and increase the quality of the change decision. . Participation  It is difficult for individuals to resist a change decision in which they participated. Assuming that the participants have the expertise to make a meaningful contribution. Prior to making a change. their involvement can reduce resistance. those opposed can be brought into decision process.

. The drawback of this tactic is that. Facilitation  Change and Support agents can offer a range of supportive efforts to reduce resistance. it is time consuming. employee counseling and therapy. new skills training or a short period leave of absence may facilitate adjustment. as with the others. When employee’s fear & anxiety are high. Additionally it is expensive and its implementation offers no assurance of success.

negotiations and agreements are helpful. Negotiations  Offering incentive to resistors is another fruitful way of overcoming resistance to change where some people in a group clearly lose out in a change and where groups have considerable power to resist. It becomes relatively easy to avoid major resistance through negotiations but it can be too expensive or costly. .

 Co-operation. withholding undesirable information and creating fake rumours to get employees to accept a change. Manipulation  & co-optation Manipulation refers to twisting & distorting facts to make them appear more attractive. It seeks to “Buy off” the leaders of a resistance group by giving them a key role in the change decision. but to get their endorsement. . Both manipulation & co-operation are relatively inexpensive and easy ways to win the support of adversaries. is a form of both manipulation and participation. the change agent’s credibility may drop to zero. but the tactics can backfire if the targets become aware that they are being tricked or used once discovered. The leaders advice is sought not to seek a better decision. on the other hand.

loss of promotion. Coercion  Coercion is application of direct threats or force upon the people who resist change. negative performance evaluation and a poor letter of recommendation. The advantages & disadvantages of coercion are approximately the same as mentioned for manipulation and co-optation. Examples of coercion are: Threat of transfer. .

 Effects of change on the organisation & individual can be positive or negative .

They have successfully introduced an intervening variable called “Employee Attitude”. X-Chart . Social scientists have pointed out that there is no direct connection between change on one hand and response on the other.

A person’s attitude depends on  Psychological factors  Personal factors  Social factors .



numerous responses can be made by personnel. . If we think of changes a stimulus. Change almost always produces responses. These responses may be positive or negative but are largely conditioned by the attitudes of the employees. with varied outcomes & effect on the organisation.

 Kurt Lewin: Two Theories  Status QUO/ Equilibrium Point – Resultant of opposing forces  Three step model: Unfreezing (The status Quo) Movement (To new status/ Changing) Refreezing (The new change) .

(Resistance to Change) Restraining Forces Desired State Status Quo Driving Forces (Forces for change) Time .

Time High Old Social System Unfreeze Change New Social System Refreeze Low Phase I Change Change Agent Agent Transition Management Phase II Phase III Changing Social System .

sources of information & social relationships  Demeaning & Humiliating Experience  Consistent linking to reward/ punishment for willingness to change . Make aware that present behaviour is  Inappropriate  Irrelevant  Inadequate  Unsuitable  Steps Taken  Physical removal from routines.

 New learning/ways – Individuals provided with alternatives  Steps taken  Compliance – Forced to change by rewards/punishment  Internalisation – situation calling for new behaviour  Identification – Role models most suitable to their personality .

 Individuals Stabilize new beliefs/ feelings/ behaviour learned in movement stage  Accepts new behaviour as a permanent part of his personality  Continue to practice & experiment new method of behaviour to blend with his other behavioural attitudes .

from the disassembly of current state to the realisation of a fully functional future state in the organisation. organising and implementing change. In interim management structure or interim position may be created to ensure continuity & control of the business during transition. Throughout the change process. Once the change begins the organisation is neither in the old state nor in the new state. transition management keeps the organisation functioning. Transition mgt. . Communication of changes to all involved from employees to customers & suppliers play a key role in transition management. should begin before change occurs. Transition management is the process of systematically planning.

what beliefs & prejudices he holds. The change agent must make use of the groups to bring about change. Whether they resist or accept change largely depends on the groups.all these characteristics are highly determined by the individual’s group membership. . beliefs and values of the individual are all firmly grounded in the groups to which he belongs. How aggressive or co-operative a person is. attitude.Following steps are required to make the change stick otherwise there is the danger of people reverting to pre-change position  Use of group forces  The behaviour. what he believes to be true or good.

 Shared rewards  Another way to build support for change is to ensure that the people affected derive benefit out of the change. training. promotion. Benefits include increased pay. Change of change agent  The change agent must himself change. It is only then that he will be able to reinforce a psychological climate of support for change. recognition and the like . Unwillingness of mangers to give up traditional managerial practices and their unpreparedness to accept new methods are the most serious barriers to the introduction of change and to make it permanent in organisations.

unions themselves can act as change agents. Co-operation  Taken of the unions into confidence. Many union leaders are accepting computerisation though it may result in some displacement of work force. during and after the change has been introduced. A change introduced without support of unions may not last for long. though they are generally considered to be anti-change. . This has been possible because of their participation before.

Any problem that has taken place because of change needs to be looked into and corrected immediately. Change need to be introduced only when necessary and it must be by evolution and not by revolution. Concern A for employees change should not be introduced for the sake of it. . the needs & requirements of employees should not be affected. Any change must ultimately benefit employees. In the short run.

Targets Purpose & Objective Strategy Tasks Technology People Structure . use MBO Modify strategic plans. training. modify distribution of authority. adjust co-ordination mechanisms. improve methods & work flows Modify selection criteria. modify operational plans. modify policies & procedures Modify job designs. Modify job description. Possible Change Methods Clarify overall mission. modify existing objectives. modify organisational design. etc. Most often. use job enrichment Improve equipment & facilities. span of control. the planned organisational change involves more than one of the following targets. development activities etc.

Planning is the most crucial phase in the management of change. 2. 3. how & when to change  Steps in planning change  A change agent must consider following:  1. Permit & encourage relevant group participation in clarifying the need changes State the objectives to be achieved by proposed changes. . It involves three vital questions – what. Make clear the need for change or provide a climate in which group members feel free to identify such needs.

Leave details of implementation of proposed changes to the group affected by change Indicate benefits or rewards to individuals that accrue from change Benefits / rewards must be passed on to those who made the change . 7.keep the promises. 5. Establish broad guidelines for achieving the objectives. 6. .4.

 Development is a much broader term referring long run.  .Growth is a narrow concept that is applicable to short term whereas.

a growing organisation passes through five phases of evolution.  .  Age of organisation  size of organisation  Stages of evolution  Stages of revolution  Growth rate of the industry  Each stage of evolution breeds its own revolution. Greiner makes use of five key dimensions. Development creates potential for new growth & new innovations. each of which ends with a period of crisis & revolution. Greiner.Organisations develop only when it can grow.  According to Larry E. In his model.


. the problems of an organisation tend to multiply. The problems of communication and coordination magnify. jobs become more interrelated and levels of management hierarchy get multiplied.  Size of the organisation – With the increasing size. of the organisation – This is represented by the horizontal axis in the Griener’s model of organisational growth. Griener  Age model makes use of five key dimensions viz.

 Stages of revolution – Periods of substantial turbulence space between the smooth periods of evolution  Growth rate of industry – The speed at which an organisation experiences the above phases of evolution and revolution also depends on the market environment of industry. Stages of evolution – the organisation that survives a crises usually enjoy four to eight years of continuous growth without setback or severe internal disruption. .

Phases of growth  Phase I: Creativity  Phase II: Direction  Phase III: Delegation  Phase IV: Co-ordination  Phase V: Collaboration  Crises of ? = ‘Psychological saturation of employees’ (Emotionally & Physically exhausted due innovations) .

the emphasis is on the creation of both ‘product’ and ‘market’: The company founders are usually technically or entreneurially-oriented and they disdain management activities. the physical and mental energies are absorbed entirely in making and selling a new product. . It is important to remember that each stage of evolution breeds its own revolution  Phase I: Creativity  During the first phase. The communication among the employees is informal.

. Formal communication is another notable characteristic of this phase. Phase II: Direction  During this evolutionary phase. a functional structure of organisation is introduced. a systematic accounting procedures and incentives are followed. budgets and work standards are adopted. The lowerlevel managers demand more autonomy and as a result a crisis of autonomy develops during this phase.

Thus a greater delegation no doubt recognizes the importance of lower-level managers but results in a greater problem called ‘control’. Phase  The III: Delegation crisis of autonomy is resolved through the delegation of authority. “The delegation stage helps in gaining expansion through heightened motivation at lower rungs. . But one serious problem that eventually evolves is the crisis of control.

a more formal system is used and rules and regulations are imposed by the top management. . the formal authority and rigid systems eventually result in the crisis of red tape. But when the organisation becomes large. Phase  The IV: Co-ordination problem of control is effectively solved through coordination. Thus to achieve coordination. The coordination system aim at achieving more efficient allocation of organisation’s limited resources.

He.  .  But surprisingly Griener expressed his inability to define the next period of crisis in concrete terms. Companies in fastly growing industries tend to experience all five phases more rapidly. anticipates a ‘psychological saturation of employees’. Phase V: Collaboration The crises of red tape and the conflicts between line and staff are overcome by strong interpersonal collaboration.  The above model is typical for the companies in industries with moderate growth over a long period of time. however. One notable feature of this phase is that social control and selfdiscipline take over from formal control. This phase is. therefore built around a more flexible and behavioural approach to management. while those in slowly growing industry encounter only two or at the most three phases over many years.

 Planned effort  Long range/long term  Organisation wide  Managed from top To achieve  Increased organisation effectiveness & health Through  Planned interventions in organisation’s “processes” using behavioural sciences .

learning and problem solving processes. through an ongoing. . to improve organisation’s visioning. Organisation development is a long term effort. including action research. collaborative management of organisation culture – with special emphasis on the culture of intact work teams & other team configuration – utilising the consultant – facilitator role and the theory and technology of applied behavioural science. empowerment. led & supported by top management.

D. Beyond the Quick fix  “improvement” as a never ending journey of continuous change  Higher to higher plateau Led & supported by top management  Org change is hard & serious business  O. programmes fail because top mgt. lost commitment .

 Members develop viable. members to develop & utilize their talents as fully as possible towards the goals of individual growth & organisational success . coherent & shared picture of nature of products/ Services (Desired Picture)  How these products would be produced & delivered to customers Empowerment Processes  Org.

People continually expand their capacity to create the results  New patterns of thinking are nurtured  Avoid “defensive” routines that prevent embarrassment but also prevent learning Problem – Solving processes  Take actions in relation to   Problems  Opportunities  Challenges  In relation to organisation environment & its internal functioning .

 Collaborative:  Processes Widespread Participation are relatively easy to change but change becomes permanent only when culture changes & the new ways are accepted as “Right ways” . Culture:  Values Prevailing pattern of basics:  Attitudes  Believes  Assumptions  Expectations  Norms  Sentiments….etc.

loss of synergy etc. rigid hierarchies wrong in fast-paced market place.  .  Work of tomorrow (Brain Work) will be done by ad-hoc teams. rework.Teams are building blocks of organisations  Intact work teams consist of superior & subordinates with specific job  Intact work teams do not have a boss in traditional sense – teams manage themselves  These self directed teams assume complete responsibility for planning & execution  Ad-hoc teams  Cross functional teams for complex tasks  Old method in serial/sequential fashion results in wastage of time.

 Third party Role: Professional help  Powerful  Brings objectivity. . neutrality  Expertise  Not captive to the culture  Third party can be member of the organisation but not of the particular unit – to be encouraged.

 . improvement through participant action research. sociology. anthropology.  Org. org.Psychological. political science & applied discipline  Study of complex change dynamics Action Research  Participative model in which leader. members & O. social psychology. parctioner work together to define and resolve problems and avail opportunities.D.

taking actions by altering selected variables within the system based both on the data and on hypothesis and evaluating the results of actions by collecting more data. feeding these data back into the system. goal or need of that system. Steps  Static Picture of what exists  Actions – manipulating variables  Second static picture to examine effects of action taken . Is the process of systematically collecting research data about an on-going system relative to some objective.

Key aspects  Diagnosis  Data gathering  Feed back to client group  Data discussions  Action planning  Action  Evaluation  Action Research is a process in two different ways  Sequence of events/ activities  Cycle of iterations .same problem/different problems .

Action Research model .

. Action research was the conceptual model for an early organisation improvement programme in a group of oil refineries  It is problem focused. hence resistance to change is minimized.  Heavily involves employees.

Action Research model .

competent/professional people within the org. D. direct observation. D. can be asked to plan & execute O.  . Alternatively outside consultants can be hired to diagnose the problem & develop O. Following steps are involved. D.  The consultants adopt various methods including interviews. D. activities. process is complicated and it takes long time to complete the process. analysis of documents/reports for diagnosing the problem. activities. Initial diagnosis  If inadequacies are observed in the organisation which can be corrected through O.O. questionnaires. activities. I.

Climate & identifying behavioural problem. .II. Data collection  Survey method is used to collect data & information for determining org. Suitable interventions are selected & designed. Data feed-back & confrontation  Data collected is analysed and reviewed by various work groups formed for this propose in order to mediate in the areas of disagreement or confrontation of ideas/opinions & to establish priorities. IV. III. Selection & design of interventions  The interventions are planned activities that are introduced into the system to accomplish desired changes/improvements.

written exercises. feed-back of data to participants. Implementation of intervention  The selected intervention should be  Implemented which may take the form of workshops.  Interventions are to be implemented steadily as the process is not a “one-shot. But it achieves real & lasting change in the attitudes & behaviour of employees. group discussions.V. on the job activities. quick cure” for organisational malady. re-design of control system etc. .

VI. VIII. Team building  The consultants encourage the employees throughout the process to form into groups & teams by explaining the advantages of teams  In O. . VII. process. subordinates. etc. interaction. D. etc. after the formation of groups/ teams. by arranging joint meetings with the managers. Action planning & problem solving  Groups prepare recommendations & specific action planning to solve the specific and identified problems by using data collected. Inter-group development  The consultants encourage intergroup meetings.

processes should be followed by the organisation in order to derive full range of O. Evaluation & follow-up  The organisation evaluates the O.IX. benefits. D. develops the programmes further for correcting the deviations and/or improved results. The consultants help the organisation in this respect.  All the steps in the O. programmes. D. D. . find out their utility.

is used to describe a variety of change programmes. D. It is a sophisticated attempt to bring about a comprehensive change in the entire org. philosophies.An organisation. Long Range Effort  O. programmes generally cover a period of three to five years. 2. it is concerned not only with changes in org. temporary or isolated problems.1. members. .D. is not designed to solve short term. It essentially deals with a big picture.D. O. to a higher level of functioning by improving the performance and satisfaction of org. Broad-based  O. skills of individuals & groups. in other words. It is a long-term approach meant to elevate the org.

D. recognises the fact that goals of the org. interactive & cyclic process. It is not a one-shot deal but an on-going.D. O. . is based on open. is treated as an inter-related whole & no part of the org. 4.3. Dynamic process  O. change & hence methods of attaining them should also change. It recognises that org. O. includes the effort to guide and direct change as well as to cope with or adapt to imposed change. structure and managerial performance are mutually inter-dependent. can be changed without affecting other parts.D. System view  O. is thus a dynamic process involving considerable investment of time & money. The org. adaptive systems concept.D.

5.D. interventions are research based change agents conduct surveys. tend to have goal setting at all levels. 6. O. Goal setting & planning  Since . programmes are generally conducted by special task force & utilize outside consultant’s behavioural faculties. is concerned with entire org.D. Research based  Most O. Beckhard contends that healthy org.D. collect data & then take decisions. O. change agent defines goals of the groups & ensures they all work to achieve them.

D. learn by experience & O.D. is based on principle that “norms form the basis for behaviour and change is a re-educative process of replacing old by new once”. programmes signify major departures from bureaucratic structure & call for changes in leadership styles based on well-established principles.7.D. provides feed-back data/information to participants 8. O. Feed-back & learning by experience  Participants . Normative re-educative strategy  O.

D. and are designed to improve the organisation’s functioning by helping organisation members better manage their team & organisation cultures & processes. interventions are sets of structured activities in which selected organisational units (target groups or individuals) engage in a task where the task goals are related directly or indirectly to organisation improvement.  Interventions constitute the action thrust of O. Interventions are vehicles for causing change.D.O.  .

knowledge or skills required by other interventions should come first. Maximize diagnostic data  Interventions that provide data to make subsequent interventions should come first. Maximize efficiency  Interventions . 2. Maximize effectiveness  Early 3. energy & money. interventions should enhance the effectiveness of subsequent interventions. should be sequenced to conserve organisational resources such as time. motivation. interventions that develop readiness. For example.1.

that are most relevant to immediate problems should come first. Minimize psychological & organisational strain  Sequence chosen should minimize anxiety. distrust. Interventions that have impact on organisation’s performance or task should come before those having impact on individuals or culture. insecurity. Maximize speed  Interventions should be sequenced to maximize the speed with which ultimate organisational improvement is attained. Maximize relevance  Interventions 6. psychological damage to people. etc. .4. 5. unwanted effect on org. performance.

move it from “ where it is” to where organization members “ want it to be” and generally enable them to improve their practices so that they may better accomplish individual. These interventions are techniques & methods designed to change the culture of the organization.  Much of organization’s work is accomplished directly or indirectly through teams and the assumption is that work team culture exerts a significant influence on individual behaviour . team and organisational goals.


work group is a number of persons, usually reporting to a common superior and having face to face interaction, who have some degree of inter-dependence in carrying out tasks for the purpose of achieving organization goals.  A team is a form of group, but has some characteristics in greater degree than ordinary groups including a higher commitment to common goals and a higher degree of interdependency and interaction, Rensis Likert suggested that organizations are best concentualised by systems of interlocking groups connected by linking pins.

Individuals in organizations function not so much as individuals alone but as members of groups or teams. For an individual to function effectively, frequently a pre requisite is that the team must function effectively. Characteristics of effective teams  Clear purpose  Informality  Listening  Civilised disagreement  Consensus decision making  Open communications.  Clear roles & work assignments.  Shared leadership

External relations  Style diversity (broad spectrum of task skills & process)  Self assessment High performance teams have the same characteristics but to a higher degree  Extra sense of commitment  High performance with a deeper sense of purpose  More ambitious performance goals  More complete approaches  Fuller mutual accountability  Interchangeable as well as complementary skills  Strong personal commitment to each other.

Team building interventions Team building interventions are directed towards four major areas  Diagnosis  Task accomplishments  Team relationships  Team & organisation processes Team building activities

Formal groups special groups (intact work teams) (start –up teams, special Project teams , functional teams, parallel learning Teams) structures, etc.

Formal groups:
A. B. 

Diagnostic meeting Team building focused on Task accomplishment including problem solving, decision – making, role clarification, goal setting, etc. Building & maintaining effective inter-personal relationships and peer relationships. Understanding & managing group processes & culture Role analysis technique for role clarification & definition Role negotiation techniques.

. ii. iii. Sub-grouping for more intense discussions & then sub-groups reporting back to total group. Pairing of two individuals each who discuss their ideas and each pair reporting back to the total group. A total group discussion involving every one making individual contributions.Formal groups diagnostic meeting: The purpose of meeting is to identify problem and not solving problems Several ways: i.

When data is shared throughout the group. issues are grouped into themes. The next would be action steps – calling a team building meeting & assigning different persons as task groups to work on the problems. Diagnostic meetings for newly constituted groups resulting from mergers/acquisitions are to be held more frequently to stay ahead of the problems .

Role analysis technique (RAT) The role analysis technique intervention is designed to clarify role expectations and obligations of team members to improve team effectiveness. - Division of labour to discharge functions - role clarity not understood. - Determination of role requirements of team members consisting of joint building leading to more mutually satisfactory and productive behaviour. - Role incumbents in conjunction with team members define role requirements. The role defined is focal role.

- In a new organization, desirable to conduct role analysis for each of major roles. 1. Analysis of focal role initiated by focal role individual, discussions with entire team, behaviours added or deleted until group and role incumbent satisfied. 2. Examination of focal role incumbent’s expectations of others. 3. Other’s expectations and desired behaviours of focal role In conclusion, the focal role person assumes responsibility & makes a written summary of role profile, which is briefly reviewed at next meeting before another focal role is analyzed.

Collaborative role analysis and definition by the entire work group not only clarifies who is to do what but ensures commitment to the role once it has been clarified. Example of a meeting of board, president and senior management team” if board or president were operating in an optimally effective way, what would they or he be doing” Attempts at consensus in team building sessions. - Helps to clarify role expectations and obligations & leads to shifts in network of activities.

A Role Negotiation Technique When the causes of team ineffectiveness are based on people’s behaviours that they are unwilling to change because it would mean a loss of power or influence to the individual, a technique developed by Roger Harrison called “ role negotiation” can often be used to great advantage. The technique is basically an imposed structure for parties in which each party agrees in writing to change certain behaviours in return for changes in behaviour by the other. Behaviour relate to the job (quid pro quo) “most people prefer a fair – negotiated settlement to unresolved conflict”.

Steps 1. Contract setting 2. Issue diagnosis 3. Influence trade (negotiation) 4. Follow up meeting. 1. Contract setting  Consultant sets climate & ground rules  It is to change work behaviours & not feelings with “quid pro-quo”  Session consists of individuals negotiate with each other to arrive at Written contract” of what behaviours each one will change.

2. This step once demonstrated by two individuals with rest of the group watching. 3. All agreements are written with each Party having a copy. Issue diagnosis Each person fills out an “issue diagnosis form’ for every other person in the group stating what other should do “more/ less/ unchanged”. These messages are exchanged. . Influence trade (negotiation period) Each person must give something to get something. the group breaks into negotiating pairs.

. Follow – up meeting It is best to have a follow – up meeting to determine whether the contracts have been honoured and to assess the effects of the contracts on effectiveness.4. Role negotiation technique is an effective way of bringing about positive improvement in a situation where power and influence issues are working to maintain an unsatisfactory status quo. This intervention leads to improved team functioning with individuals changing their work behaviours.

Inter – group and third party peace – making interventions When there is tension. . conflict or competition among groups:-Each group sees other as “ enemy” -Each group describes others in negatives -Interaction & communication decreases -Feed back & data input cut off -Communication is distorted & inaccurate -Each group prizes itself positively and denigrates others & their products -Other groups can do nothing right & we can do no wrong.

There is considerable inter group conflict in organizations and known patterns of behaviour of groups in conflict How to resolve conflict?  “Common enemy”  Increased interaction & communication  Finding a superordinate goal  Rotating the members of the group & instituting some forms of training Inter – group team building interventions  Increase communications & inter-actions between work related groups .

What the other group thinks about them? . ii.willingness & take steps to improve is established. Activities developed by Blake. Shepard & Mounton – six steps. Discussions by group leaders (or whole group) with consultant . What the other group is like? B. i. Two groups meet separately & draw up two lists A.   Reduce amount of dysfunctional competition Replace a parochial independent point of view with best efforts of both groups.

vi. No discussions & only clarification on any point contained in list. . Two groups share their lists and together make one list of problems & issues that should be resolved.up to determine whether action steps have in – fact occurred. Two groups return to separate meeting places.iii. v. This ensures momentum is not lost. Two groups meet and read out lists. iv. They make a list of priority issues to be resolved. Generate action steps – “ who will do what when” Follow . Differences may not be as great as imagined.

A ”bug” list containing things the group does not like about the other group. A “positive feed back” list containing things the group values and likes about the other group. 3. three lists drawn by each group. 2.Slightly modified version of above procedure presented by Fordyce & Weil in this procedure. . 1. An “empathy” list containing a prediction of what the other group is saying in its list.

Third – party peace making interventions R. Third party must be able to diagnose conflict situations (conflict is a cyclic process – find source of conflict) . Walton – third party interventions into conflict situations have the potential to control (contain) the conflict or resolve it. Basic feature Two principals must be willing to confront the fact that conflict exists and it has consequences for effectiveness of two parties.E.

A.Diagnostic model of inter personal conflict has four basic elements.Consequences of the conflict Substantive (policies. etc.Precipitating circumstances C.Conflict relevant acts of principals D. practice.) Issues Emotional (negative feelings between parties) .Conflict issues B.

. Attending to pace of the dialogue Refereeing the interaction More subtle interventions Setting the meeting on neutral turf. Direct interventions - Interviewing principals before the confrontation meeting Helping to set agenda. Setting time boundaries on the interventions etc.Third party will intervene directly or indirectly in facilitating dialogue between principals. Third party intervention requires a highly skilled professional who understands the dynamics of conflict.

e. gets feed back from several other groups about how it is perceived & regarded intervention between three or more groups.- - Organization mirror interventions (Organization mirroring) It is a set of activities in which a particulars organization group. work related groups & not with all groups (or full membership) i. the host group. only with group representatives) .

- - - Focus is to assist host group that requested the meeting Host group experiencing difficulties with other work related units. prepare participants & answer any questions Manager of host group states the purpose & consultant gives feed back to the total group from interviews. . Consultant often interviews the people attending the meeting in order to get a sense of problems & their magnitude. calls for a meeting to get a feed back as to how they see the host unit.

sub.groups. consisting of host group members & invited participants. general discussions For working on problems. formed Total group meets to identify key problems based on feed back from sub-groups .- - - - The outsider “fish bowl” to discuss and explore the data presented by the consultant. Host group “fish bowls” – clarification. uninterrupted way while host group members listen & learn. The “fish bowl” allows the invited participants to talk about the host unit in a natural.

the host group must implement the action plans that were developed during the meeting. A follow up meeting to assess progress & review action steps.- Action plans firmed up. an organizational unit gets the feed back it needs to improve its relationship with significant work related groups. However. Thus in a short period . People assigned tasks & target dates for completion agreed upon. .

. Owner.contractor relationship in a large construction project “Partnering is an effective problem – finding/ problem – solving technique.g. Management team composed of personnel from both parties. e.Partnering An intervention called “partnering” can be productive for both parties in situations in which two or more organizations are likely to incur unnecessary conflict & cost over – runs. are formed thus creating a single culture with one set of goals & objectives for the project”.

home office support. contractor & the consultants at neutral site. site management. Listing “strengths” & “problems” of organization & contractor. Steps: Selection of consultants Prior to beginning of construction.Partnering involves all the functions in the construction project including engineering & design. Mixed groups formed to diagnose & evaluate courses of action & make recommendations. meeting of key managers of organization. Several exercises for group decision making. .

after say six months after on – site data gathering visits. Further follow up.solving & open communication was made. equitable problem . “Better results than on previous nonpartnered projects” .three months after construction began. involving all key players.- - - At Workshop. mutual commitment to team work. While partnering did not solve all problems but high success rates have been reported. Follow up workshop .

a Mini – lecture from facilitator on the nature of constructive feed back is desirable. focusing solely on appreciations can be a powerful and positive intervention in the life of the group. When the concerns segment is used. - - .The Appreciations & Concerns exercise It may be appropriate if interview data suggest that one of the deficiencies in the interactions of members of a group is lack of expression of appreciation and another deficiency is the avoidance of confronting concerns & irritations. In instances in which lack of appreciation is a much more serious deficiency than concerns.

getting work done effectively. a more structured exercise such as the role negotiation technique.- If there is substantial conflict in the group. etc. Some one is asked to volunteer to be the first person to listen to members of the group 1. is likely to be more appropriate. 3. Steps in appreciations & concerns exercise Facilitator asks each member of group to jot down one to three appreciations for each member of group. 2. Each member to jot down one or two minor irritations/ concerns relative to each person interfering with communications. .

Each group member mentions both the appreciations & concerns about the volunteer who hears from all the group members before responding. Each group member listens in turn. either through volunteering to be the next or through the simple procedure of rotating clock wise – or counter – clockwise from the first person.5. .

-The directors of all social services agencies in a community. a Cross – section of employees from all levels. future – planning session. .Usefulness of getting all of the key actors of a complex organization or system together in a team building. -All of the librarians in a state or region plus the Director and staff of state library system. Examples of whole system -Managers of all functional areas in a business. -Representatives of top management. and supplier & customer representatives.

The consultants (or conference managers) meet with a voluntary committee of four to six potential participants.Future Search Conferences Weisbord’s future search conference model consists of following steps. People asked to bring newspaper & magazine clippings that can have influence on organization’s future. 1. d. a. c. people from All functional areas Levels of the organization All racial. sex & age Customers & suppliers Union Leaders. e. 2. b. . Upton 50 to 60 persons invited depending upon nature of focus.

The conference has four or five segments each lasting half a day. b. d. milestones during past three – decades from three perspectives    Self Company (or town or industry) Society . Each one requires that people Build a data base Look at it together Interpret what they find Draw conclusions for action The first major activity focuses on the past. Each person asked to make notes on significant events. a. understanding. All ideas are valid and recorded. 4. c. Conference is not to solve problems but to generate awareness.3. 5. Six to eight people sit at one table.

. Sub. company or society) and extract patterns and meanings. The group at each table then analyzes one theme (self.Newspapers & magazine cuttings discussed .groups report to total group & total conference interprets “ good & bad trends and the direction of movement of each” The second major activity focuses on present factors – internal & external that are shaping the future of the organization .6.priorities finalized .lists of “Prouds” & “Sorries” – Current goings on. 7.

9. New groups formed to prepare a preferred future scenario – the most desirable & attainable future five years hence. 8. The third major activity focuses on the future.Conference managers note & summarize key statements. Themselves . The fourth major activity focuses on next action steps. Groups are asked to make three lists of suggested action steps for a. The groups then report to the total conference.

Members of top management or the steering committee discuss proposals for the total organization. They then present action plans to total conference. b. Before the conference ends. . 10. entire proceedings are drawn up and volunteers carry forward the next actions steps. Total organization Action proposals for functional areas are shared by members of the same department. Such conferences offer a unique spring – board for planning & goal setting. prioritize themes and develop action plans.Their function c. 11.

b. . c. in a series of activities.- a. It is a quick. The management group generates information about Its major problems Analyze underlying causes Develop action plans to correct problems Set a schedule for completion of remedial work. simple & reliable way to generate data about an organization & to set action plans for organizational improvement. - Beckhard’s Confrontation Meeting A one day meeting of entire management in which they take stock of own organizational health. d.

Steps involved in confrontation meeting Step 1.It is appropriate where there is need for total mgt. e. b. states the goals for the meeting. to resolve issues. Org. Top mgt. Real commitment on part of top mgt. Climate setting (45 to 60 minutes) . is experiencing or recently experienced some major change. . Limited time available c. free & open discussions of issues & problems a. team to examine its own working. Enough cohesion in top team to ensure follow up.Top mgt. f. wants to improve conditions quickly d.

unclear goals or attitudes . group meets separately All groups to discuss What are obstacles.Consultant stresses the importance of communication. Boss & subordinates not to be together Top mgt. desirability of organizations problem solving Step 2. Information collecting (1 hour) Small groups of seven or eight members from various disciplines & work situations.What conditions would make organization more effective? - . de-motivators. poor procedures or policies.

Communication problem . Information sharing (1hour) Reporters from each group report to total group. etc) Step 4. natural work teams reflecting the way they - . Priority setting & group action planning ( 1 hour 15 minutes) Each one is given a list of categorized items Next participants form into functional. Total list categorized into few major categories based on type of problem .) .The reporters record results of discussions.Relationship Problem (with top mgt.Functional Problem (With accounts Dept. Step 3.

b. Identify & discuss problems related to their area. Each group asked to do three tasks a.are organized in the organization Each group is headed by top manager in the group. Asked to identify problems which should be priority issues for top mgt. decide on prioties and determine early action steps for remedy which they are ready to take themselves. Determine how will they communicate results of confrontation meeting to their subordinates. . c.

group within next few days.- - - Step – 5 Immediate follow – up by top team Top mgt team meets to decide first follow – up action steps and also to determine what actions should be taken on the basis of what they learnt during the day’s conference. Step – 6 Progress Review (2 hours) A follow – up meeting with the total mgt. A quick & accurate means for diagnosing organizational health. . group is held after 4-6 weeks to report progress & to review actions. Enhances upward communication within the organization. Follow up action plans are communicated to rest of mgt.

- Increases involvement & commitment to action on the part of entire managerial group. .

Goal setting & Decision – making are concentrated at the top.item questionnaire called “ survey of organizations” found that survey based on following measures could be used to track changes over time. .Systems 1 – 4 T Rensis Likert using a 105. Leadership Organizational Climate Job satisfaction In Likert model. In Systems – 1 type of organization Control. climate is a major part. each type of organization (systems 1-4) as having internally consistent characteristics of which org.


No seeking of subordinates ideas Subordinates not involved in decisions related to their work Extensive use is made of threats, punishment & fear. Cost & productivity data are used for policing & punishment Communication is largely downward Lateral & upward communication is minimal & distorted. Teamwork is essentially non- existent


Systems – 2 type of organization There is some delegation of decision-making to implement policies. Subordinates are sometimes consulted before decisions are made about their work. There is some lateral communication & upward communication (filtered). Extensive use of monetary award. Threats and punishment less than system 1. Motivation low but higher than system 1 Little team work

Systems – 3 type of organization

More participative than systems 1 & 2 Substantial delegation of decision making Goals by top mgt. after consultation Moderate delegation Subordinates generally consulted about their work Substantial confidence shown in subordinates Communication downward & upward without much distortion Cost & productivity data for rewards Most individuals feel responsible.

Systems – 4 type of organization

Most participative & highly group – process oriented. Goals established through participation Decisions made by consensus. Subordinates fully involved in decisions related to their work. High level of confidence shown in subordinates Communication flow is upward, downward & lateral without distortion No Coercion High Motivation Cost, productivity data for problem solving Team work evident throughout org.

Systems – 4 T

When variables such as “The levels of performance goals” & “The level of Technical Competence” are added the system becomes 4 – T (T stands for total model) System – 1 Orgs usually have employee resistance of all kinds & low morale & Commitment, Orgs should shift to systems 3 or 4 (or 4T)

The survey may be conducted with or without the help of outside consultant. Quality and styles of leadership . The survey feed-back starts by obtaining commitment and endorsement of top management. Collection of Data Information gathered through comprehensive questionnaire to focus on issues: a.Survey Feed-Back It is a well-organized & Systematic approach to assist organisation in diagnosing problems & developing action plans for problem – solving. Employee satisfaction (Individual attitudes) b. It also assists group members to improve the relationships through discussions of common problems. Four distinct steps are involved: 1.

co-ordination . - 3. Group discussions & problem – solving sessions. Develop an action plan Mgt. Organisational climate (like decision – making. . to develop an action plan which is workable based on recommendations of participants for solving problems discovered in the survey. b. etc) General health of the enterprise. Feed – Back the Information Survey results fed directly to participants rather than to top mgt. 2.a.

. Top mgt. Questionnaire should be valid & reliable ii. Employees willing to report honestly iii. Sessions conducted are Task-oriented v. willing to use information iv. members trust each other vii.ii Follow-up After few months. a check is made to determine whether the action plans are implemented or not Necessary Conditions for success i. Each group has enough discretion to consider & act upon its findings/analysis vi. Participants do not feel manipulated. Org.

Flexible and can be applied to many different orgs. vii. improved since competence & knowledge of entire org. iii. used. Emphasizes two – way communication iv. & different problems. Broad coverage including all members of the org. . Decision making & problem – solving ability of org. It can yield a great amount of information ii.Evaluation It is more effective change technique than many other types. Information provided can help to work out concrete plan for org. effectiveness. Can increase influence of lower level managers v. i. vi.

group and total organization levels. grid O. process becomes one vehicle for individuals & groups to examine & explore their styles & modify prevailing practices . It focuses on skills. The Programme utilizes a Considerable number of instruments enabling individuals & groups to assess their own strengths and weaknesses. knowledge & processes necessary for effectiveness at the individual. As used in managerial grid diagnostic questionnaire.D.   Six – Phase programme lasting about 3 – 5 years by which organisation can move systematically from the stage of examining managerial behavior & style to the development & implementation of an “Ideal Strategic Corporate Model”. group. inter.

Phase – I The managerial grid seminar conducted by In – company managers (who are pre .trained) is given to all managers. Focus of trg. problem – solving & communication skills. Managers learn to become 9 -9 managers . Is on individual’s managerial styles.

(High) (1. (Low) 1 2 3 4 5 6 7 8 9 Concern for production (9. (High) .9) Country Club Mgt. Concern for people 1 2 3 45 6 7 8 9 (5. (1.5 Middle of Road Mgt. (9.1) Impoverished Mgt.9) Team Mgt.1) Task Mgt.

It includes building operational plans for moving to ideal state . setting objectives & problem . Phase – 3 Inter-Group Development The focus of this phase is inter-group relations and the goal is to move groups from their in-effective often win-lose actual ways to ideal model of inter-group relations.solving. traditions & developing skills in planning.Phase – 2 Team work development Goal is perfecting team work culture. The problems & issues dealt are real ones.

– may take upto one year. technical inputs & so on are contributed from all persons of the org.Only teams which have important inter. Fact finding. .face relationships do so (meeting in two’s) Phase – 4 Developing an ideal corporate strategic model Top management engages in strategy planning activities of this phase and corporate members test & evaluate the plans / ideas. The top executives build ideal strategic corporate model for their particular org.

etc. After planning & assessment steps completed. product lines. geographical locations. excellence.profit centers. Phase – 6 Systematic critique Systematic critiquing. has moved to current position which becomes a “New beginning” from which to continue striving towards corp.Phase – 5 Implementing the ideal strategic model To execute the conversion to ideal strategic model. Blake & Mouton studied results on a large multi-plant . Taking stock of how far the org. must be re-organized .) A planning team for each component to examine how the business be moved more in line with ideal model . the org. org’s movement to ideal condition implemented. A phase – 5 Co-ordinator is appointed as a resource to the planning teams. measuring & evaluating is done to find progress made.

Managers also reported that changes for the better had resulted.Co. . lower costs. less waste. (800 mgrs & 4000 staff) Given grid concepts Significant org. improvement showed up on “Bottomline” – greater profits.

 An excellent way to make first line supervisors more effective & to improve organisational effectiveness. .T Groups (sensitivity training)  Behaviour modeling  Life & career planning including use of career anchors.  Behaviour modeling  A training technique designed to improve interpersonal competence.

they must See a link between discipline and desired outcomes Believe they can do it 1.  The 1. 3. is a social learning theory which emphasizes that person Must perceive a link between the behaviour & certain outcomes Must desire those outcomes Must believe they can do it  For example. many first line supervisors find it difficult to discipline employees. 2. methodology of behaviour modeling is 2. It 1. 2. To learn this behaviour. Select a model similar to them being successful by discovering special behavioural skills that led to success. Practicing skills until proficient .

Specific behaviours exhibited by model highlighted as “learning points”.     Determine most pressing problems facing a target group say first line supervisors. . Counseling poor performer Correcting absenteeism Encouraging average performer Correcting unsafe work behaviour 1.1. 2. Training modules for about 10 problems developed through video tapes showing a model correctly handling each situation.

6.  Trainees discuss behavioural skills & role play the situation receiving feed back from the group (say 10) and the trainer on their performances. 5. New problem is addressed on video tape. role playing and feed back till participants learn. participants report how their new skills worked on the job. Behaviour modeling works to teach the skills & behaviours needed to deal with inter-personal problems. Participants practice new skills on the job. Role playing continues until each participant successfully masters all specific skills. . In next session. 8. 7.4.

 Focus of discussion:      Individual personalities Group interaction Processes Relationships Increased ability to understand others Improved listening skills Greater openness Increased tolerance of individual differences Improved conflict resolution skills  Specific results aimed:      .Change behaviour of people through unstructured & agendlaless group interaction ( 10-12 people assisted by a behavioural scientist (catalyst)).

 Impractical since not consistent with the business 7 economic world. . is limited  Can cause behaviuoral change (+ve or –ve) but changes may not be related to org.Critics feel that all positive effects are felt only during training.  Controversial technique & research reveals both positive & negative sides  Criticism of T-group training  Lays heavy concentration on individuals & its utility to total org. performance.  It may result in psychological damage to some employees who do not take well to criticism.

 It is a continuous quality improvement through a combination of organisation improvement techniques and approaches including use of:  Quality circles  Statistical quality control  Statistical process control  Self managed teams  Task forces  Extensive employee participation  Need to compete is the compulsion .

Primary emphasis on customers  Daily operational use of the concept of internal customers  Emphasis on measurement using both statistical quality control and statistical process control techniques  Competitive bench marking  Continuous search for sources of defects with a goal of eliminating these entirely. Some version of TQM is being used in virtually all organisations.  .  Participative management  An emphasis on teams & team work  A major emphasis on continuous training.  Top management support on an on-going basis.

companies achieved      Better employee relations Higher productivity Greater customer satisfaction Increased market share Greater profitability” 1. USA report 1. In nearly all cases. TQM is relevant to small as well as large companies.General accounting office. . “Companies that adopted quality management practices experienced an overall improvement in corporate performance.

Other authors said Greatest success was achieved when organisations pursued simultaneously both TQM & employee involvement programmes.   . Sufficient time needed for gains to appear – say two and a half years.3.

.Team & work groups  Characteristics of effective team  Broad team building interventions  Process consultation interventions  Techniques used in team building  Role analysis technique  Interdependency exercise  A role negotiation technique  The appreciations & concerns exercise  Appreciative inquiry  Responsibility charting  Visioning  Force-field analysis.

 Inter-group team building interventions  Third-party peace-making interventions  Organisation mirror interventions  Partnering .

 “Getting the whole system in the room”  Future search conferences  Beckhard’s confrontation meeting. activities.  System 1-4T  Grid organisation development  Schein’s cultural analysis  Transorganisational development .  Survey feed-back  Strategic mgt.

 Total quality management (TQM)  Re-engineering  Large-scale systems change & organisational transformation  .D.Socio-technical systems (STS)  Self-managed teams  Work re-design  MBO & appraisal  Quality circles  Parallel learning structures  Physical setting & O.

 T-group  Behaviour modeling  Life & career planning  Career anchors  Life goals exercise .

D. programmes have been subject to criticism by managers & researchers.D.) suffers from lack of research & documentation. People are of the view that diagnostic interventions are stirring up discontent in the organisations. is a source of inspiration for those who feel the need for human-based approach to organisational change yet it (O.D. Although O.  Most frequently observed criticism are following: . O.

1. O.D. programmes should begin at the top of the organisation but in practice only middle managers are involved in implementation stage as project officer.D.D. tools are “long on theory but short on practice” . Discrepancy between ideal & real  O.  Due to this reason.  Many managers struggle to achieve & maintain “bottom line” performance and are unlikely to be interested due to day to day pressures & in O. programmes that demand humanisation of organisation to please employees.

D. . the members are often punished rather than rewarded in the organisation. sharing of power.D. By exhibiting these features.D.2. etc. O. makes the dichotomy between the ‘task’ & ‘attitude’ apparent  The “task technique” is a sophisticated cost cutting method of scientific management whereas ‘attitude’ is concerned primarily with developing positive & open interpersonal attitudes which are difficult to measure. makes people unfit for the real organisational world  With O. members” 3. Du Brin contended that “open people have a difficult time competing with highly political & sometimes devious org. workshops many participants convert to such values as openness. O. trust.

D. is criticised because of the paucity of research about its effectiveness  It is difficult to evaluate O.e. “trust” & “organisational climate”.D.  O.4. O. operates under substantial handicap i. because it is still in its infancy. . Researchers criticise O.D. How does one define “openness”. because not enough solid research evidence supports its wide spread application.D. it is difficult to measure number. the difficulty of defining its process & results in measurable & verifiable terms. nature & magnitude of confounding variables.

D. According to Burrack & Smith “resistance at the top and firmly embedded at the middle of management”. They observe that anti-planning attitudes. collective bargaining to preserve outmoded jobs and technology – also favour of technologies changes that contribute to such resistance. .D.  The deep seated resistance to change represents a serious obstacle to O. Resistance to change is a chronic problem to attain the goals of O.5.

 .D. programme is over. field has concluded boldly “if O. little interest has been shown in long-term profits to evaluate the development of organisations over time and searching questions have been raised about how to train competent practioners”.Even though an intervention results in some shortrange changes. greater attention must be given to the integration of the theory & practice.  Mag Nusen. a renowned scholar in O.D. It has been noticed that the firm returns to its traditional ways of doing things after the O. is to become a respectable applied profession.D. the forces of resistance soon take place overthrowing whatever progress has been made through O.D. Despite a few efforts the area has no tradition of adding knowledge cumulatively or keeping a balanced prospective on change strategies.

technological & goal processes in the organisation.A broad class of interventions (or change efforts) aimed at improving organizational effectiveness through changes in the task. structural.  This class of interventions include:  Changes in how the work of the organization is divided into units  Who reports to whom?  Methods of control  Spatial arrangement of equipments & people.  Work flow arrangements  Changes in communication & influence practices. .

& its environment should be managed in such a way that there are effective exchanges. but protection from external disruptions. Socio technical systems (STS) theory says that it is important to jointly optimize the social & technological systems of organizations. Furthermore.  The creation & development of self-managed teams is an important factor in STS implementation .  The implementation of STS should be highly participative.  The boundary between the org.

expediting & co-ordinating.  Solving the problem of dislocation of first line supervisors &  Re-conceptualising the role of managers with emphasis on coaching.The creation of self-managed teams involves:  Providing teams with a grouping of tasks that comprises a major unit of the total work to be performed.  Training group members in multiple skills including team-effectiveness skills  Delegating to the teams many aspects of how the work gets done.  Providing a great deal of information & feedback for self regulation of quality & productivity. .

 Motivation & performance can be enhanced through re-designing jobs to increase skill variety. autonomy & feedback from the job. task identity.  The concept can be extended to the creation of self-managed teams &  Third-party assistance in the development and monitoring of group norms can be useful. task significance. .

 Physical settings  Large scale systems change  MBO  Quality circles  Quality of work life programme  Parallel learning structures  Re-engg.  TQM .

job enlargement & job enrichment 2. Create work situations that enhance employee’s  Motivation  Satisfaction  Commitment  That may contribute to high levels of organizational performance.  Attempt to humanize the work place  Two popular approaches 1. Quality circles (QCs) . Work restructuring 1.

 Small group of people who regularly meet on voluntary basis to identify & solve problems related to 1. quality of work they perform working conditions  Many 1. 2. 2. QCs operating in different work areas.  Benefits of QCs to organization Increased job satisfaction Increased organizational commitment Reduced turn-over of employees Increased productivity and profitability . 4. 3.

Selection of Problem (By Circle) Selection of Problem (By Circle) Communicating to Circle (By Mgt. Data from Circle Management specialists Implementing Decision Decision (By Mgt.) Presentation to Management (By Circle) Solution (By Circle) .


Members of QCs must have prior training in problem solving  Top management support/attitude  Actual implementation to be pre-ceded by carefully developed plan for maximum returns  .

 Job enlargement  Job rotation Job enlargement means increase in the number or variety of tasks Job enrichment means the deliberate upgrading of responsibility. . scope and challenge in work.  Horizontal job expansion  Vertical job expansion Example of janitors illustrates that even at low levels in an organization. people can respond in responsible & productive ways to grow & mature.

 .) far in excess of the requirements of the work. etc.  Quality of worklife (QWL) projects had modest success or sustenance because:  Change in union leadership  Expectations were too high  Efforts aimed at production or clerical levels  Insufficient changes at managerial or professional levels  Too little attention to long term financial rewards for participants.Not to hire people with ability (qualifications.

Less space for group meetings etc. machines & their arrangement. A strong emphasis on participative diagnosis and enhancing team efforts (when needed & privacy when needed). Steele cites many instances in which physical settings were found to interfere with effective group & organization functioning e. Sociological factors such as norms about the use of physical settings. lights. Physical settings or arrangement can be the focus of interventions that can utilize & congruent with O. D. . Stelle describes a rating process he uses to examine things such as desks.g.      Physical settings are an important part of organization culture that work groups Should learn to diagnose and manage & about which top management needs input in designing plants and buildings. techniques & assumptions.

it consists of:1. A number of working groups  .Are specially created org. bureaucratic. formal organization since learning. large.  These are a vehicle for learning how to change the system & then leading the change process  In most basic form. innovation & change are difficult to achieve through standard ways of addressing problems. A steering committee 2. Structures developed to plan and guide change programmes and co-exist with the usual.

action groups.  one or more top executives be members of steering committee to give authority & legitimacy.  A deliberate attempt to develop different ‘norms’ from those of ‘formal’ system  There can be idea groups.  . implementation groups and should have representations from all parts of organization  People act in a way that promotes learning & adaptation.Make recommendations & monitor the change efforts. work groups.

Review of Performance Setting Individual goals Autonomy for selecting Means for goal achievement .Goal setting by Top mgt.

Level  Reduce gap between employee & org. Results  Higher morale  Improved attitude  Improved level of performance  Contributions & better understanding of overall org.  Technique  Increase to precision / effectiveness of planning process at org. Goals . Goals.

MBO can feature a participative team approach. However. 4. 2. Objectives or targets should be stated in quantitative terms whenever possible Goal-setting & appraisal should be one-on-one dialogues between superior & subordinates. experience indicate that. MBO can vary on an autocratic – participative continuum & that. . 3. The traditional MBO theory assumes that there is a need for systematic goal-setting linking the goals of superiors to sub-ordinates & that: 1.

. is a must.MBO is a philosophy & not a technique.  People who are involved should be mentally & psychologically prepared for it.  Participation of superiors & subordinates in setting objectives of org.  Each employee should be provided with feed back information for self direction & self control. It requires:  Purpose & area to be defined  Favourable attitude & support of top mgt. superiors & subordinates & review of progress.

 . There should be direct linkage between MBO & reward system.MBO programme should be implemented at all levels including grass-root level. MBO contributes to OD by:  Developing openness  Developing inter-personal relations  Team approach in planning & controlling  Problem solving approach between superiors & subordinated.

harm to persons.e.  . D. Misrepresentation of consultant’s skill  A subtle area of misrepresentation would be by consultant regarding distortion of his background. competencies.  Following are ethical dilemmas in O. Violation of basic values and/or in terms of help vs. practice stemming from the actions of either the consultant or client or both.Ethical issues in O. training. experience. practice i. in terms of enhancement vs. etc. D. 1.

e. (could be harmful). . To ask people in a team-building exercise to provide feed-back about leadership style  When neither preliminary interview nor client group has indicated readiness two types of violations.  Using an intervention that has a low probability of being helpful.g.2. Serious distortions of data would also be unethical e. D.  Using an intervention that exceeds one’s expertise.  3.g. efforts data can be used to punish or harm persons or groups by consultant or client. Misuse of data  Confidentiality is important in O. using disfunctional aspects of some member or unit’s obtained through feed back interviews. Professional/technical ineptness Lack of expertise would be unethical.

 If O. Coercion  It is unethical to force org. D. the O. 5. which they prefer to keep private. process is doomed to fail. in effect. . The creation of a t-group with unwilling participants would be an example. Collusion  An example of collusion would be the consultant agreeing with key client to schedule a team-building workshop when it is known that a certain departmental head would be on vacation. D. required to disclose information about themselves or their units. interventions are perceived as methods for “getting” anyone. Members into settings where they are.4.

openness. D. confidentiality. D. voluntarism. high standards & self-awareness. but the consequences can be reduced credibility of the consultant and the reduced credibility of the key client within the organisation as well as the O.  Thus. . integrity. Promising unrealistic outcomes  Obviously.6. practice are: honesty. this is unethical & counter-Productive the temptation to make promises in order to gain a client contract can be great. the values underlying ethical O. the development of people and the development of consultant expertise. field.

A belief is a proposition about how the world works that individual accepts as true.  Values are also beliefs about what is desirable or ‘good’ and what is an undesirable or ‘bad’.  Assumptions are beliefs that are taken for granted as correct and rarely questioned.  O. D. values tend to be humanistic, optimistic and democratic.

Humanistic values
 Respect

the whole person  Treat people with respect & dignity  Assume that every one has intrinsic worth  View all people as having the potential for growth & development.

Optimistic values
 People

are basically good  Progress is possible & desirable in human affairs.  Rationality, reason & goodwill are tools for making progress.

Democratic values
 Assert

the sanctity of the individual  The right of people to be free from arbitrary use of power, fair equitable treatment for all and justice through the rule of law & due process.

Evidence for the validity of these values and their supporting assumptions came from many sources  O. D. practioners (change agents) share a set of normative goals based on their humanistic/ democratic philosophy.

 Improvement

in inter personal competence  A shift in values so that human factors and feelings come to be considered legitimate.  Development of increased understanding between & within working groups in order to reduce tensions.  Development of more effective “team management” i.e. the capacity for functional groups to work more competently.  Development of better methods of conflict resolution – more rational & open methods.  Development of organic rather than mechanical systems.

Mechanical systems Organic systems 1. Authority-obedience Mutual confidence & relationships trust 2. Strict division of Multi-group membership labour & hierarchical & responsibility supervision 3. Mechanical systems Organic systems

 O.

D. values 1. Human & organisational growth 2. Collaborative & participative processes 3. A spirit of inquiry  Change agents emphasis is on collaboration & concepts such as power, authority, control, conflict & coercision are held in relatively low esteem.

2. Participation .Effective organizations deemphasize hierarchical authority & control.1. 3. they should be openly confronted. authenticity. conscientious and caring.Individuals are perceived as being responsible. Power equalization . They should be treated with dignity & respect Trust and support . Respect for people . 4.Problems should not be swept under the rug. Confrontation . openness & a supportive climate. 5.The effective & healthy organization is characterized by trust. the more they will be committed to implementing those decisions.The more that people who will be affected are involved in decisions surrounding that change. .

Create change Positively impact people & organizations. Learn & grow Exercise power & influence .?  A desire to ………………. Enhance effectiveness & profitability of organizations.Questionnaire to 1000 O. D. D. 3. 4. 2. practioners what attracted you to O.  1. 5.

2. 3. 4. Promoting a culture of collaboration Promoting inquiry & continuous learning . D. D. Enhancing productivity. 5. 3. top values associated with O. 4. Five 1. 5. today Increasing effectiveness & efficiency Creating openness in communication Empowering employees to act. top values which “should” be associated with O. Empowering employees to act Creating openness in communication Facilitating ownership of process & outcome. Promoting organizational participation  Five 1. 2.

societal & organizational changes taking place virtually assure that tomorrow will bring new definitions of what is “true” & new beliefs about what is “good” . Values are never static.  The rapid technological. they change over time.

. Production & communications technology changing at exponential rate.The changing environment  The environment in which organisations operate is increasingly becoming competitive. Organizations are getting flatter with few central staff & more delegation to smaller groups & units. rigid hierarchical system is getting replaced with adaptable & committed team players from all specialties. alliances. With mergers. downsizing & restructuring is becoming rampant resulting in dislocation of people  The older system of top down. autocratic. interdependent with global and national competition. acquisitions.

team & organizational performance coupled with people – oriented values.D.D. Leadership & values For O. and have strong leadership skills. board of directors. O. is bright but only if the field continues to evolve. top executives including the human resource executive and O. process will take route & flourish in direct proportion  . it is important that top management – CEO’s. consultants place high value on strong individual.O.D.’s future  The future of O. The question of employee motivation and satisfaction will be considered explicitly when new technologies & work practices are decided. Organisations should have both profitability as well as humanistic / developmental objectives.  If top executives decide to adopt this route. The following points play a role in its effectivity. to flourish.D.D.

D. practioners and managers. books & articles in order to have an experimental feel. process through workshops sponsored by consultants. Top mgt.  There is a need for detailed published case studies of O.D. Groups who are to utilize O..D. including first line supervisors. not as an organizational intervention – particularly for both aspiring O.Knowledge about O. should understand the O. efforts – including successes & failures – and the use of O. laboratory trg.D. We should not overlook the utility for T-group training for any or all organisational members. .D.D. processes in conjunction with other improvement strategies  O. training  There is a need for more availability of T-group training – as a training intervention.D.

systems theory. processes are widely perceived as having considerable value. arbitration. There is much to be learned from international diplomacy. mediation. research & practice in social psychology. O. Diffusion of technique  O. is related to other disciplines. to a significant extent.  O. is a positive development because it shows that O. social work. adult education. has been a highly interdisciplinary field built on theory. etc. human resource management & other fields. techniques & approaches have been widely disseminated in various countries which.D.’s future.Inter disciplinary nature of O.D.D. community development.D. .D.

 People in all kinds of disciplines and occupations have been exposed to O. technique.D.D. This is all good but there is a danger that some people are practicing or utilizing O. There 1.D. 2. interventions. Technique may be used without sufficient understanding of their theoretical. without understanding. . history and practice. are basically two problems for wide dissemination of O. The possibility of a gradual diffusion of O.D. research. theory. Also. there should be widespread understanding of O. process and availability of quality training & research. &/or historical foundations. Solutions lie in careful selection of consultants.D.D. training & O. field across other specialties with the resultant loss of some of its integration of values. research.

D.Integrative practice  There has to be an integrative approach to TQM. An ideal arrangement for O. The lack of emphasis on participative approaches in re-engineering efforts makes O. practioners to be as knowledgeable as possible about such structural interventions and these integrations. QWL (quality of work life) and re-engineering programmes in particular. professionals is to join with other experts on consulting teams. Such teams have thus to pay considerable attention to their own team building & team work. .D. practioner involvement less likely but not less necessary.  It is desirable for O.D.

history that are in danger of being lost forever although some of these get re-invented from time to time. .D. There are many interventions which have been successful in particular applications and used many a time again when similar circumstances occurred but never recorded & published.  There are portions of O. in some circumstances. Many practioners are rediscovering the utility.D.Rediscovering & recording history  The history of O. interventions and approaches. of “getting the whole system in the room” and are drawing on this history. is indispensable for retaining & improving effective O.D.

.D.D.D.  The future of O. hard work of past continues and provided top leaders do not revert to autocratic practices in times of high turbulence or crises.  There is enormous opportunity & potential for O.In short regarding O. Organisations throughout the world need the unique help that can be provided by highly trained interventionists using people-oriented. is really about people helping each other to unleash the human spirit and human capability in the work-place.D. movement in future. is bright as long as the highquality. action research approaches.  O.

Internal Consultants One of the important roles that needs to be played by a agent is that of an internal consultant. employees or an outside consultant. . Change can be brought about by managers. The following describes types of roles played by change agents. non managers. Therefore. Mastering change is becoming an increasingly important role of a manager. as an internal consultant he / she needs to monitor and scan external drivers of change. Managers need to have extensive understanding of the environment surrounding their business and have a fairly good idea about threats and opportunities.Roles of Change Agents Change Agents Persons who act as catalysts and assume the responsibility for managing change are called change agents.

the internal consultant needs to establish a sense of urgency within the organization. Internal Support to External Consultant It is often observed that organizations engage an external consultant as an expert who has a fairly good knowledge about comparative business situation and has the experience of handling change in a variety of organizations. Any slip at this stage may cause failure of the change process. the consultant needs an internal resource person/s (ISP) who would act as facilitator/s in implementing change. In such a situation. Alternatively the members of IRP can be trained by established professional bodies to acquire people skills that are essential for handling . Having identified the drivers of change. The IRP can be trained by the external consultant to acquire skills for implementing change. technological trends and financial performance.The change agent ought to have a hard look at the companies’ competitive situation keeping in view its market position.

It is to be decided by the management whether the ISP would be an independent individual or a group drawn from different departments to constitute a tasks force to function as IRP. Such a task force needs to be strong and powerful in terms of expertise. While selecting the IRP members their knowledge level is to be kept in mind. reputation. Development of IRP as a team is of immense importance for it to be effective as change agent otherwise development of negative synergy would be detrimental to the organizational interest and may jeopardize the change the change process. . Task Force With a view to bring about transformation in the organization the management creates a task force or a group of like-minded people who share commitment to renewal programme. communication skills and relationships.

Skills Required for the Role of a change Agent The wind of change is sweeping the organisation across the globe and in the uncertain times nothing is more certain than a constant change. Team spirit is an essential requirement for this task force to be effective. The task force needs to communicate the management’s concern about change and create a sense of urgency within the managerial ranks regarding the need for change. . The change agents would require the following skills to be able to keep themselves and the organizations afloat in the future.The size of the task force may vary according to the size of the organization and may be increased as the change programme progresses.

 A sensor of the business environment Vertical to horizontal functioning Leadership at all levels Manager as a catalyst Shorter time-frame horizon Balancing work and personal life Maximization of information flow An effective Change Agent needs the following areas of expertise: Strategy formulation Human resource management Marketing and sales. the change agent needs to follow the steps . and Negotiation / credit resolution. For a successful management of change.

Learning Organization An organization that has developed the continuous capacity to adapt & change all organizations learn. Double-Loop learning challenges deep – rooted assumptions & norms within an . the correction process relies on past routines & present policies. policies & standard routines. whether they consciously choose to or not – it is a fundamental requirement for their sustained existence. it is corrected in ways that involve the modification of organization’s objectives. Most organizations engage in what has been called single-loop learning. Double – Loop Learning Learning organizations use double-loop learning when an error is detected. When errors are detected.

2. People openly communicate with each other (across vertical & horizontal boundaries) without fear of criticism or punishment. There exists a shared vision that every one agrees on. People discard their old ways of thinking and the standard routines they use for solving problems or doing their jobs. 4. 5. . activities. Members think of all organizational processes. People sublimate their personal self-interests to work together to achieve the organization’s shared vision.Characteristics of a Learning Organization 1. functions and interactions with the environment as part of a system of inter-relationships. 3.

Proponents of learning organization envision it as a remedy for three fundamental problems inherent in traditional organizations: -Fragmentation -Competition -Reactiveness Fragmentation: Based on specialization creates “walls” & “Chimneys” that separate different functions into independent & often warring fiefdoms. Competition: Over-emphasis on competition often undermines collaboration. who knows more or who is more persuasive. . Divisions compete with one another when they ought to cooperate to share knowledge. Team project leaders compete to show who is the best manager. Members of management team compete with one another to show who is right.

a creator tries to bring something new into being. A transformational leader is needed to implement shared vision.Reactiveness: Mis-Directs management’s attention to problem solving rather than creation. . Managing Learning: How to make firms continual learner. 1. The problem solver tries to make something go away. Establish a Strategy: Commitment to change innovation & continuous improvement. An emphasis on reactiveness pushes out. “Boundarylessness” through breaking down barriers created by hierarchical levels & fragmented departmentation. It supports disagreements constructive criticism and other forms of functional conflict. Innovation and continuous improvement and in its place encourages people to turn around “putting out fires”.

3. eliminating or combining deptts.2. Redesign Organization’s Structure: By flattening structure. Increasing use of cross-functional teams. interdependence reinforced & boundaries reduced. . Management to encourage functional conflict. Bring out conflicts & solve & develop as a group rather individually. The main point is to give up having to be in agreement. Reshape organization Culture: Managers need to show by their actions for encouraging taking risks and admitting failures.

Most organizations learn through single loop learning. In contrast a learning organisation adopts double loop learning method which involves not only detection and correction of errors but also making changes in organizational objectives. experimenting. Learning takes place in all the organizations whether consciously or unconsciously. that involves identifications and rectification of mistakes based on past experience and existing policies. like individuals. Learning involves listening. The best role a manager can play is to develop an organization into a learning organization. Organizations.Creating a Learning Organization The concept of learning organization given by Peter Senge (1990) has now been considered as a prerequisite for developing companies. need to learn overcoming their learning disabilities and blind spots. unlearning and discontinuing. reflecting. having a competitive advantage and enhancing productivity. questioning. challenging. Leading change is more of an attitude as overall change progresses. . policies and processes so that such errors could be avoided or eliminated in the future.

The strategy issued clearly gives commitment of the organization to change. General Electric and Wal-Mart can be called learning organizations because they have adapted themselves to the changing business environment and are successful in the changed environment too. A learning organization develops capability to adapt and change.Double loop learning challenges the ineffective traditional assumptions and norms and provides unconventional solutions to problems for substantive improvement. How to Make an Organization a Continual Learner? In order to make an organization a learning organization the most important task managers are required to perform is to formulate a strategy. Tata Motors. All the organizations learn from the experience but learning organizations continuously choose to learn for their sustained existence. innovation and . Maruti and Tata Steel.

This involves management support for taking risk and tolerating failure when they occur. . By openly discussing the conflicts and ambiguities the organizations collectively become more intelligent than when people have been working individually. Having done that the next step to be adopted is to redesign the organization’s structure. The last but not the least measure to get adopted is to change the organizational culture. the openness is to be encouraged at work place. This has to be done with a two pronged approach-through strategy and through behaviour. forming cross-functional teams by blurring the boundaries between departments and encouraging interdependence among them. This may involve reducing layers.and continual improvement. Alongwith people who take risk need to be rewarded. When the organization is in the learning phase there are interfunctional conflicts and disagreements. merging departments.

Culture variations are also observed in the countries focused on long term or short change. countries in the west in particular USA and Canada seek faster change results.A question often pops up whether change is possible and whether resistance to change is culture bound. in countries which are under autocratic rulers and feel subjugated to their surroundings will have a lukewarm approach to change. Also a debate is found if the change champions adopt different measures in different cultures. Cultures are different in terms of their beliefs. and values and their ability to influence their environment. Countries like Japan and India have considerable patience for positive outcomes from change efforts. However. will have favourable or proactive view of change. The culture which is open and where people feel that they can dominate the environment. . However.

Change champions prefer to work closely with top management to get support for innovative activities in high power distance cultures. . It may be concluded that the change champions will alter organizational strategies to reflect cultural values. In high power distance culture there will be autocratic approach to implementation whereas in low power distance culture democratic methods will be used.Also power distance can influence implementation of change.

there should be free and open sharing of information between the organization and the change agent and this information must be such which can be translated into action. (1958). That is. the planning model was later refined after modifications by Kolb and Frohman (1970). identification of the actual and possible reasons of resistance to change are worked out and planning is done for specific improvement goals.Planning Model Initially proposed by Lippit et. As the first step organization and change agents jointly explore the need for and the areas that require change. This is followed by identification of specific goals toward improvement. al. As change cannot proceed effectively without handling resistance. they develop mutual expectations. In this model planned change goes through a series of steps. . This model has often been employed in bringing about planned change in organizations. The planning model proposes seven-steps for change. Thereafter.


a small cadre of employees and often consultants. senior managers. . Strategic change refers to the up-front. Model of the Change Management Process Galpin (1996) proposed the model of the change management process which provides guidance for successfully implementing change. initial effort involving executives. This kind of change is broad and organization wide and involves two primary goals – a technical or analytical goal (involving generation of recommendations for change) and a “soft side” goal (involving creation of momentum for change). who provide an outside view (Gaplin. In his view a successful organizational change effort must target two levels-the strategic level and the grassroots level. 1996).Implementation of steps identified in planning is the next stage followed by decision – making for termination of the system or to begin another.

The nine stages require management within an organization to understand and apply the characteristics of both strategic and grassroots changes. The early stages require greater application of the changes characterised by strategic nature. During the early stages. formulate recommendations. The primary goal here is to implement and sustain desired changes.Grassroots change is the effort that drives change deep into an organization by stressing implementation at the local level. . senior management establishes a need and develops a vision for change and a select few analyse the current organization. Change does not occur in one leap but often entails several key stages along the way. and detail them for testing. The later stages call for a greater application of characteristics of grassroots change.

More people horizontally and vertically across the organization are involved during pilot testing and roll out. as middle managers and supervisors are needed continually to measure and reinforce the changes being tested and rolled out in order to ensure successful implementation. .

. There are four phases in this model ranging from exploration phase to integration. This change process is often initiated by organizational members who are aware of the need for change. Exploration Phase In this phase. In view of this. planned change can take place from one state to another.Integrative Model for Planned Change Bullock and Batten (1985) gave forward the integrative model to describe both the temporal states and the change processes involved in planned change. the organization explores whether it is prepared for specific change and whether it can commit its resources toward such change. The integrative model for planned change is based on the principle that organizations exist in different states at different times.

The change requirements are then assessed mutually by the consultant and the organizational members.Hereby a search process begins wherein organization development resources and assistance are sought followed by consultation of an organization development expert. and the availability of necessary resources. cost and time factors and the rules of the consulting relationship so as to develop a collaborative relationship. . During this phase both sides settle the terms of the work and clarify mutual expectations. The members make an assessment about the expert’s capabilities and the consultant assesses the organization’s sense of commitment and readiness for change.

Exploration Phase Planning Phase Action Phase Integration Phase Checking preparedness of the organization for change Diagnosis of the problem designing action plan Implementatio n of change with focus on transition Consolidation & integration of initiative in orgn. Bullock and Batten’s integrative Model of Change .

Besides. The planning phase involves diagnosis of the problem wherein the organisation collects vital information so as to analyse the functioning of the organisation. Here the consultant and the members work together to set goals for change and design action plan to bring about organisational change and improvement. . the sources of the issues/ problems and to understand the resources that are committed towards organisational development. The proposed changes require the approval of key decision-makers so that there is no problem faced at a later stage. the key decision makers have an overall perspective about the future strategies.

 In the action phase. the change activities are monitored and evaluated intermittently to assess the progress so that corrective measures could be taken to achieve the desired results. the changes delineated in the planning phase are put into action and the processes required for transition are implemented. For effectiveness of the initiative. This stage focuses on transition of the organisation from the current state to a target state. .

This is achieved by various reinforcements such as regular feedback. plans are drawn to ensure that the new behaviour is maintained. Also. With successful institutionalisation of change. On successful implementation and stabilisation of the change initiative in the previous phase. the contract with the organisation development experts is brought to a close. rewards and incentives. . this phase aims at consolidation and integration of the initiative in organisational functioning.

while the other two are not. In the “purchase of expertise model. often including recommendations for action. .” The process consultation model is typical of the OD approach. For example. and the “process consultation model. or (3) developing a marketing strategy for a new product. Examples would be (1) surveying consumers or employees about some matter.” a leader or group identifies a need for information or expertise that the organization cannot supply.OD A Unique Change Strategy Consulting to organizations can take many forms. (2) finding out how best to organize the company after a merger. The leader hires a consultant to obtain the information and make a report. Edgar Schein describes three consulting models: the “purchase of expertise model”. the “doctorpatient model”.

and action taking. identifies the causes of problems and then. and calls in a consultant who diagnoses the situation.This is a typical consulting approach that is widely used. decision making.” the consultant works with the leader and group to diagnose strengths and weaknesses. (2) being over budget and behind schedule on a major project. like a physician. In the “doctor-patient model. This too is a well-known. or (3) a high-performing manager who suddenly becomes a low-performer. Examples would be calling in “the doctor” to examine (1) low morale at a particular plant.” a leader or group detects symptoms of ill health in some part of the organization. In this model the consultant assists the client organization in becoming more effective at examining and improving its own processes of problem solving. traditional approach to consultation. and develop action plan and methods for reaching desired goals. prescribes a cure. . In the “process consultation model. identify problems and opportunities.

participative. encourages greater collaboration between clients and consultant. The consultant helps the clients generate valid data and learn from the data. The OD consultant is an expert on process – how to “go about” effective problem solving and decision making.This model. typical in OD. An organization development consultant typically suggests general processes and procedures for addressing problems and issues. and strengthens clients’ abilities to improve their work processes. . engages the resources and talents of the clients. but using a collaborative. Examples would include working on any of the previously mentioned problems. you can figure out the right answers yourselves approach.

it is not any single thing the consultant does. The process consultant helps the organisation to learn from selfdiagnosis and self-intervention. Where the standard consultant is more concerned about passing on his knowledge. the process consultant is concerned about passing on his skills and values. The ultimate concern of the process consultant is the organisation’s capacity to do for itself what he has done for it.  . the consequences of these processes. The paramount goal of PC is stated by Schein as follows:  The job of the process consultant is to help the organisation solve its own problems by making it aware of organisational processes.The process consultation model is similar to team-building intervention except that process consultation places greater emphasis on diagnosis and understanding process events.  Process consultation consists of many different interventions. and the mechanisms by which they can be changed.

Structural suggestions  Specific recommendations for the solution of substantive problems are not listed because to Schein such interventions violate the underlying values of the PC model in that the consultant is acting as an expert rather than as a resource. Coaching or counseling of individuals 4. Agenda-setting interventions 2. Feedback of observations or other data 3. . Schein describes the kinds of interventions he believes the process consultant should make: 1.

and to assist the client in evaluating alternatives for feasibility. relevance and appropriateness. The consultant serves to reflect or mirror accurate feedback. The consultant when counseling either individuals or groups. . to listen to alternatives and suggest new ones (often through questions designed to expand the client’s horizons). continues to maintain the posture that real improvements and changes in behaviour should be those decided upon by the client.

Are Organizational Development Interventions Appropriate in Turnaround Situations? Turnaround firms are those which have deteriorated beyond the level where they are simply underperforming. . turnaround firms differ from companies which are engaged in renewal or rejuvenation efforts in the respect that turnarounds require crisis management in order to simply survive. a turnaround firm will typically require drastic and immediate actions by the CEO to keep the firm solvent. Relative to an underperforming company. The volume of popular business literature dealing with this subject would imply a growing acceptance of OD in the business community as an integral and vital element in achieving organizational change and making organizations more competitive. They are in need of significant and immediate improvements in their performance levels. Generally.

disposal of nonessential assets. . restructuring of debt wit creditors. cooperation. although employees must be involved. followed by changes in employee attitudes. the radical changes necessary require a strong leader with the will to do whatever is necessary to assure the success of the turnaround effort. Prior Research and Literature Review Most successful turnaround managers rank cost control as first in importance. Successful turnarounds are not accomplished by consensus. involvement in achieving the turnaround.Such actions may include large-scale workforce reductions. and negotiation of extended terms with suppliers. and certainly commitment to the turnaround. Employees must feel a sense of urgency. elimination of all nonessential spending. wholesale liquidation of inventories.

. When a company’s situation becomes sufficiently serious to necessitate a turnaround specialist. financial restructuring.OD intervention efforts become less applicable as the stages of organizational decline become more grievous. Implications for Organization Development The five-stage model of organizational decline proposed by Weitzel and Jonsson (1989) can be adapted to provide a framework for discussing the relevance of OD in a turnaround situation. large scale downsizing. The fundamental and radical levels of business change typically required in turnarounds cannot be accomplished without a deliberate organizational development effort. OD change efforts become subordinated to other issues such as cost cutting. and maximizing the business’ liquidation value.

All companies in any of the first four stages of decline would provide fertile ground for OD work. . It is at these early stages that organizational development change efforts would be most appropriate as preventive actions aimed at avoiding further decline and ultimately reversing it.

Model of Relative Importance between Financial Management Issues and Organizational Development Efforts during Progressive Stages of Decline Financial Management Relative Importance Liquidation Organizational Development Efforts Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 .

Comparison of the Financial and OD Turnaround Actions of Four Successful Companies .

. The firm must first survive the immediate financial crisis for OD to be effective.Conclusions The empirical evidence would seem to indicate that OD efforts do complement turnaround efforts and to a degree improve the likelihood of success in all but the most severe situations.

A second major stem is survey research and feedback methodology. Both stems are intertwined with a third stem. have at least four important trunk stems. One trunk stem of OD consists of innovations in the application of laboratory training insights to complex organizations. the emergence of action research. . is a fourth stem . The key sectors in these stems interact with each other and are influenced by experiences and concepts from many fields. to use the analogy of a mangrove tree. Paralleling these stems.the emergence of the Tavistock sociotechnical and socioclinical approaches. Systematic organization development activities have a recent history and. The history of organization development is rich with the contributions of behavioral scientists and practitioners. and to some extent linked.

. was one of the first behavioral scientists to help implement the application of T-group skills to complex organizations. and the evolution of the Tavistock sociotechnical and socioclinical approaches. One stem of 'OD' was later called the "T-group". The invention of the T-group and innovations in the application of laboratory training insights to complex organization. then a faculty member at Yale University (later at Harvard) in 1957was one of the first to conduct team building sessions with a CEO and the top executive team. the invention of survey feedback technology. Douglas McGregor. the emergence of action research. Chris Argyris.      Organization development has emerged largely from applied behavioral sciences. Some of the earliest sessions of what would now be called "team building" were conducted by Robert Tannenbaum in 1952 and 1953. The intention of the T-group grew out of an awareness that had been growing for a decade or more of the importance of helping groups and group leaders focus on group and leadership processes. as a professor-consultant.

Blake served in the Psychological Research Unit of the Army Air Force where he interacted with a large number of behavioral 'scientists. Another major influence on Blake had been work of John Bowby. revolves around the techniques and approach developed by staff members at the Survey Research Centre of the University of Michigan over a period of years. including sociologist. The history of this Stem. Herbert Shepard. This contributed to his interest in "looking at the system rather than the individuals within the system on an isolated one-by-one basis.    During World War II. Douglas McGregor and Richard Beckhard. but it is likely that the term emerged more or less simultaneously in two or three places through the conceptualization of Robert Blake. Survey research and feedback (the Survey Feedback Stem) constitutes the second major stem in the history of organisation development. in particular. Jane Mouton. It is not entirely clear who coined the term organization development. a medical member of the Tavistock Clinic in London. .

The laboratory-training stem in the history of OD has a heavy component of action research.  .  A fourth stem in the history of OD is the evolution of socioclinical and sociotechnical approaches to helping groups and organizations.  Total Quality is typically a companywide effort seeking to install and make permanent a climate where employees continuously improve their ability to provide on demand products and services that customers will find of particular value. one of which.The third Stem is the Action Research. There are at least four versions of action research. participant action research is used with the most frequency in OD. and Tavistock projects have had a strong action research thrust.

clinical psychology. Second-generation OD includes interest in organizational transformation. family group therapy. total quality management. considerable attention is being given to new concepts. . and large conference management. philosophy. visioning. organizational culture. survey methodology. mathematics and physics. client-centered therapy. ethnography. human resources management. psychodrama. systems theory. general management theory. the theater. social work. general semantics. military psychology and psychiatry. The context for the application of OD approaches has changed to an increasingly more turbulent environment. These disciplines included social psychology. experimental and action research. and "getting the whole system in the room. interventions and areas of application. While there is still a major reliance on OD basics. organizational behavior. the learning organization.  Key figures in this early history interacted with each other and across these stems and were influenced by concepts and experiences from a wide variety of disciplines and settings. teams and their various configurations.

 The history of OD is emergent in that a rapidly increasing number of behavioral scientists and practitioners are building on the research and insights of the past as well as rediscovering the utility of some of the earlier insights. types of institutions. occupational categories and geographical locations around the world. These efforts. often under different terminology are now expanding and include a wide range of organizations. .

Organisation Development adopted in this company is through phases: 1) Phase 1: September. Communication gap between Management and Employees Action Steps were to hold training programs  1. 3. Site problems due to failure of our equipment 2. 1976 to December. their maintenance problem etc. . 1977  Problem identification workshop for senior executives was held and the issues identified were: 1. 2. To update engineering knowledge of engineers: To improve quality and to develop quality awareness among various levels of our employees To acquaint and familiarize customer’s operative and maintenance staff with our products their manufacture. Fall in labour productivity due to withdrawal of the incentive scheme 3.

Lack of human concern and recognition 3.  The problems identifies were: 1.2) Phase II: January. 1978 To March 1980  15 interactions of various levels of our employees with an outside – Consultant was brought by second type of diagnostic interventions. Poor and slow decision-making characterized by adhocism  Lack of team work and cooperation and interpersonal and interdepartmental conflict were also seen as major hurdles to effective functioning of the organisation. Communication gap between employees and management 2. Faulty personnel policies and dysfunctional role of personnel department 4. .

4.3) This Led to the Following Action Steps Rather Than Training Interventions 1. 2. Change of cadre programme for all promotees. Management Employee Communication Meetings for bridging the communication gap and developing better understanding. 5. Programme for personnel executives to change the attitude and their perceived dysfunctional role. 3. . Behavioural science oriented programmes for heads of divisions and supervisors for creating awareness and social skills for effective interpersonal relationships. Development of faculty resources in the training department to cope with the increasing emphasis on training in behavioural science-oriented programmes.

. 5) Phase III : April.  It was at this time that a decision to conduct a survey to find out the effectiveness of the OD effort so far was conceived and implemented through a questionnaire. 80 to Date  The survey revealed the following strengths and weaknesses of the organisation: 1. 2. Employees have high sense of belonging and commitment to the unit. a vague sense of change for the better was experienced. Employees perceived a positive change in the organisation.4) Perceived Benefits of the Effort  As a result of intensive training and multi-dimensional interventions.

Weaknesses perceived. Lack of appreciation and recognition' 3. were 1. 5. Lack of opportunities for growth and development 4. "Affiliation & Control" being the dominant motivational climate prevailing in the organization. . Poor decision-making 2. Lack of team work.

The purpose was to focus their attention on the negative and positive aspects of the organisation health and thus create an awareness at all levels. 6. 4. 2. initially the HODs and later with all levels of employees through MECOM. 3.  The major interventions during the second phase were:  1. 5. Five Team Building Programmes Six workshops for the Top Management group to review the OD effort Appointment of Task force OD effort in Departments Development of Internal Persons (IRPs) Achievement Motivation Programme .This phase was initiated by sharing the findings of the survey.

7. cooperation and understanding. Bridging the communication gap by direct interaction of all with the top management. roads. Mutual trust and confidence. Customer satisfaction-improvement in sequential supplies. housing facilities etc. Team work. Lot of improvement in welfare amenities like schools. General discipline and punctuality. 6. 4. Faith in the management’s sense of fairness and justice. . 2. 8. 3. supply of shortages/spares. 1.Encouraging OD effort had made distinct progress in the areas of: Openness in interpersonal relations at senior levels. 5.

6) Phase IV: April 1984 onwards  On the basis of the findings of the April. 2. 2. 3. 3. Development of IRPs Feedback survey  The 1. 1. . 1984 workshop the following actions seems to be emerging for the current year. new feedback survey at the organizational level will comprise three aspects: To measure the changes during the last four years and assess future directions. Intensifying diversification activities etc. it is necessary to conduct programmes for HOD’s. Certain new dimensions will also be added in the proposed new feedback survey. In view of the recent structural changes and also to percolate the OD awareness down the line.

K. In addition to the above activities a number of new activities will emerge on the basis of findings of proposed survey which will cover cultural. V. Rao and D. New interventions will be designed accordingly.F. managerial and administrative aspects. Jain. OD effort in BHEL. 183-192  Source: . Bhopal: Recent experiences in Human Recourses Development. p.V. Pereirs. T.

Improve work culture Optimise use of installed facilities Increase productivity. In order to improve the production in SAIL an attempt was made to collect feedback from the various sections of industry to identify the problems in the company. opinions and perceptions of people and how they felt that the company was doing and what could be done internally to further improve its operations  Based on the feedback. 1. 3. 5. Generate profits through control of costs and Customer satisfaction . 2. the following areas were identified as priorities for action. 4.

. communication. improvement in work culture also meant-building an organisation which had the flexibility and the resilience to accept changes.Improve work culture  The focus here was on team work. This meant reduction of the hierarchy and debureaucritization.  Apart from seeking a basic change in the attitudes of employees. discipline and operating consistency. This led to the conclusion that individual growth and promotions must result from good performance and contribution to the organisation. Less of formal procedure and rules and more accent on results.

Adherence to technological discipline 3.Making optimum use of installed facilities  This was possible by better maintenance planning and upkeep of equipment and better use of captive resources. Quality of raw material 2. Improvement in productivity through improved performance of the employees. 4. Increasing productivity  The areas which needed attention were 1. . Process control for quality enhancement.

There was a sense of oneness and participation A large number of concrete action plans were drawn up in each priority area. It gave a sense of direction. The crisis facing the industry was understood and the need for changes appreciated. In each unit a committee was appointed to oversee the action plans drawn up and coordinate the various activities involved .Generating profits through control of cost  The need to develop cost consciousness as a culture in the organisation. Providing better customer service  Workshops were held and there was a tremendous effect in the organization. . 1. 3. 2. The workshops created a sense of euphoria which made possible implementation This generated a debate in the organisation. 5. and was here that the basis turn around strategy was envolved. 6. The goals of the organisation were clarified and made known to all. 4.

to improve the structure and culture of the organisation and its capacity to respond to the requirements of the market.  . Recruitment  Quality of the employees selected in the company has improved.The current strategy is to tune up the organisation and prepare it for playing a Qualitatively different role in future. Training and development  In the effort to improve the internal efficiency of the Company. training and development has a very crucial role to play and the Training and Development organisation is being geared to playing this role effectively.

being made. obtained to thee changes. Bipartite systems have been strengthened and the full participation of all sections of employees/unions and associations. Grievance and welfare systems have received attention and there are improvements in all the areas. Organisation  The Organisation is being restructured and the number of hierarchical levels reduced. Shift changeover delays have been reduced from key departments and time offices relocated. There has been a drastic reduction in overtime. Organisational Discipline  There have been significant improvements in absenteeism in all units and in all major departments. .Communication  Communication systems. both formal and informal have been strengthened  Incentive schemes have been revised to increase their motivational value.

Gradually. Initially. . the exercise began as a move to amend the promotion policy to make it totally performance oriented.Appraisal system  One of the first HRD initiatives in the company the amendment of the Appraisal system for Executive. it was realized that the promotion policy would not be so changed without having an adequate/acceptable instrument for measurement of performance. This was an important step in the attempt to improve the work culture by convincing employees that their career growth was linked with the performance of the company.

3. qualitative changes in the attitudes of employees: 1. the company is still in. 4. Communication is more effective. There is higher appreciation that the company works as a whole.R. 5.R. However. There is considerable clarity about goals and objectives. Source: M. in such a large company changes have not been uniform in all sectors.P. 210-226 . There is a greater awareness among officers. Employees have begun to think positively about the company. major HRD initiatives in SAIL ‘Alternative Approaches and strategies of HRD’ 13.Qualitative changes  Today. 2. Nair. workers and associations. Over the past few years there have been encouraging. the middle of the process of change.

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