Download MBA HRM 4th Semester Organisational Development and Change Notes

Download MBA HRM (Human Resource Management) (Master of Business Administration) 4th Semester Organisational Development and Change Notes


UNIT ? I



LEARNING OBJECTIVES



The student is expected to learn the following concepts after going through this unit.


1. Change







2.

Stimulating Forces

3. Planned Change





4.

Change Agents

5. Unplanned Change



6.

Lewin`s Three Step Model


The change means the alteration of status quo or making things different. It may refer

to any alteration which occurs in the overall work environment of an organization.

When an organizational system is disturbed by some internal or external force, the

change may occur. The change is modification of the structure or process of a system,

that may be good or even bad. It disturbs the existing equilibrium or status quo in an

organization. The change in any part of the organization may affect the whole of the

organization, or various other parts of organization in varying degrees of speed and

significance. It may affect people, structure, technology, and other elements of an

organization. It may be reactive or proactive in nature. When change takes place due

to external forces, it is called reactive change. However, proactive change is initiated

by the management on its own to enhance the organizational effectiveness. The

change is one of the most critical aspects of effective management. It is the coping

process of moving from the present state to a desired state that individuals, groups and

organizations undertake in response to various internal and external factors that alter

current realities.



Survival of even the most successful organizations cannot be taken for granted. In

some sectors of the economy, organizations must have the capability to adapt quickly

in order to survive. When organizations fail to change, the cost of failure may be quite

high. All organizations exist in a changing environment and are themselves constantly

changing. Increasingly, the organizations that emphasize bureaucratic or mechanistic

systems are ineffective. The organizations with rigid hierarchies, high degree of

functional specialization, narrow and limited job descriptions, inflexible rules and

procedures, and impersonal management can`t respond adequately to the demands for

change. The organizations need designs that are flexible and adaptive. They also need

systems that require both, and allow greater commitment and use of talent on the part



1
of employees and managers. The organizations that do not bring about timely change

in appropriate ways are unlikely to survive. One reason that the rate of change is

accelerating is that knowledge and technology feed on themselves, constantly making

innovations at exponential rates.



Organizational change is the process by which organizations move from their present

state to some desired future state to increase their effectiveness. The goal of planned

organizational change is to find new or improved ways of using resources and

capabilities in order to increase an organization`s ability to create value and improve

returns to its stakeholders. An organization in decline may need to restructure its

resources to improve its fit with the environment. IBM and General Motors, for

example, experienced falling demand for their products in the 1990s and have been

searching for new ways to use their resources to improve their performance and

attract customers back. On the other hand, even a thriving organization may need to

change the way it uses its resources so that it can develop new products or find new

markets for its existing products. Wal-Mart, Target, Blockbuster Video, and Toys

Us, for example, have been moving aggressively to expand their scale of

operations and open new stores to take advantage of the popularity of their products.

In the last decade, over half of all Fortune 500 companies have undergone major

organizational changes to allow them to increase their ability to create value.



Change may be regarded as one of the few constants of recorded history. Often

society`s winners, both historical and contemporary, can be characterized by the

common ability to effectively manager and exploit change situations. Individuals,

societies, nations and enterprises who have at some time been at the forefront of

commercial and/or technological expansion have achieved domination, or at least

competitive` advantage, by being innovative in thought and/or action. They have

been both enterprising and entrepreneurial. It is said that management and change are

synonymous; it is impossible to undertake a journey, for in many respects that is what

change is, without first addressing the purpose of the trip, the route you wish to travel

and with whom. Managing change is about handling the complexities of travel. It is

about evaluating, planning and implementing operational, tactical and strategic

journeys` ? about always ensuring that the journey is worthwhile and the destination



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is relevant. The Industrial Revolution, which developed in Europe between 1750 and

1880, accelerated the rate of change to an extent never previously thought possible.

Other economies followed and the rate of change has never declined; indeed, many

would claim it has now accelerated out of control. The spear and sword gave way to

the gun; the scribe to the printing press; manpower to the steam engine of James Watt;

the horse and cart to the combustion engine; the typewriter to the word processor; and

so the list goes on.



The Importance of Change

One can try to predict the future. However, predictions produce at best a blurred

picture of what might be, not a blueprint of future events or circumstances. The

effective and progressive management of change can assist in shaping a future which

may better serve the enterprise`s survival prospects. Change will not disappear or

dissipate. Technology, civilizations and creative thought will maintain their ever

accelerating drive onwards. Managers, and the enterprises they serve, be they public

or private, service or manufacturing, will continue to be judged upon their ability to

effectively and efficiently manage change. Unfortunately for the managers of the

early twenty-first century, their ability to handle complex change situations will be

judged over ever decreasing time scales. The pace of change has increased

dramatically; mankind wandered the planet on foot for centuries before the invention

of the wheel and its subsequent technological convergence with the ox and horse.



In one short` century a man has walked on the moon; satellites orbit the earth; the

combustion engine has dominated transport and some would say society; robots are a

reality and state of the art manufacturing facilities resemble scenes from science

fiction; your neighbour or competitor, technologically speaking, could be on the other

side of the planet; and bio-technology is the science of the future. The world may not

be spinning faster but mankind certainly is! Businesses and managers are now faced

with highly dynamic and ever more complex operating environments. Technologies

and products, alongwith the industries they support and serve, are converging. Is the

media company in broadcasting, or telecommunications, or data processing, or indeed

all of them? Is the supermarket chain in general retail, or is it a provider of financial

services? Is the television merely a receiving device for broadcast messages or is it



3
part of an integrated multi-media communications package? Is the airline a provider

of transport or the seller of wines, spirits and fancy goods, or the agent for car hire

and accommodation?



As industries and products converge, along with the markets they serve, there is a

growing realization that a holistic approach to the marketing of goods and services is

required, thus simplifying the purchasing decision. Strategic alliances, designed to

maximize the added value` throughout a supply chain, while seeking to minimize

costs of supply, are fast becoming the competitive weapon of the future. Control and

exploitation of the supply chain make good commercial sense in fiercely competitive

global markets. The packaging of what were once discrete products (or services) into

what are effectively consumer solutions` will continue for the foreseeable future. Car

producers no longer simply manufacture vehicles, they now distribute them through

sophisticated dealer networks offering attractive servicing arrangements, and provide

a range of financing options, many of which are linked to a variety of insurance

packages.



Utility enterprises now offer far more than their original core service. Scottish power

have acquired utilities in other countries and have recently moved into water, gas and

telecommunications, to become a unified` utilities company offering one-stop

shopping` to domestic and commercial customers. How can we manage change in

such a fast moving environment without losing control of the organization and

existing core competencies? There are no easy answers and certainly no blueprints

detailing best practice. Designing, evaluating and implementing successful change

strategies largely depend upon the quality of the management team, in particular the

team`s ability to design organizations in such a way as to facilitate the change process

in a responsive and progressive manner.





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The Imperative of Change

Any organization that ignores change does so at its own peril. One might suggest that

for many the peril would come sooner rather than later. To survive and prosper, the

organizations must adopt strategies that realistically reflect their ability to manage

multiple future scenarios. Drucker, for example, argued that : Increasingly, a winning

strategy will require information about events and conditions outside the institution.

Only with this information can a business prepare for new changes and challenges

arising from sudden shifts in the world economy and in the nature and content of

knowledge itself. If we take an external perspective for a moment, the average

modern organization has to come to terms with a number of issues, which will create

a need for internal change. Six major external changes that organizations are currently

addressing or will have to come to terms with in the new millennium are :



1.

A large global marketplace made smaller by enhanced technologies and

competition from abroad. The liberalization of Eastern European states,

the creation of a simple European currency, e-trading, the establishment of

new trading blocs such as the tiger` economies of the Far East, and

reductions in transportation, information and communication costs, mean

that the world is a different place from what it was. How does an

organization plan to respond to such competitive pressures?



2.

A Worldwide recognition of the environment as an influencing variable

and government attempts to draw back from environmental calamity.

There are legal, cultural and socio-economic implications in realizing that

resource use and allocation have finite limits and that global solutions to

ozone depletion, toxic waste dumping, raw material depletion, and other

environmental concerns will force change on organizations, sooner rather

than later. How does an individual organization respond to the bigger

picture?



3.

Health consciousness as a permanent trend amongst all age groups

throughout the world. The growing awareness and concern with the

content of food and beverage products has created a movement away from



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synthetic towards natural products. Concerns have been expressed about

salmonella in eggs and poultry, listeria in chilled foods, BSE or mad cow

disease` and CJD in humans, genetically engineered foodstuffs, and the

cloning of animals. How does an individual organization deal with the

demands of a more health-conscious population?



4.

Changes in lifestyle trends are affecting the way in which people view

work, purchases, leisure time and society. A more morally questioning,

affluent, educated and involved population is challenging the way in which

we will do business and socialize. How will people and their organization

live their lives?



5.

The changing workplace creates a need for non-traditional employees.

Many organizations have downsized too far and created management and

labour skill shortages as a result. In order to make up the shortfall,

organizations are currently resorting to a core/periphery workforce,

teleworking, multi-skilled workers and outsourcing. A greater proportion

of the population who have not been traditional employees (e.g., women

with school aged children) will need to be attracted into the labour force.

Equal opportunity in pay and non-pecuniary rewards will be issues in the

future. How will an individual organization cope with these pressures?



6.

The knowledge asset of the company, its people, is becoming increasingly

crucial to its competitive wellbeing. Technolgical and communication

advances are leading to reduced entry costs across world markets. This

enables organizations to become multinational without leaving their own

borders. However, marketing via the internet, communication viae-mail

and other technology applications are all still reliant on the way you

organize your human resources. Your only sustainable competitive

weapon is your people. How do you intend managing them in the next

millennium? The same way as you did in the last?





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What is important, however, is recognition that change occurs continuously, has

numerous causes, and needs to be addressed all the time. The planned change is not

impossible, but it is often difficult. The key point is that change is an ongoing process,

and it is incorrect to think that a visionary end state can be reached in a highly

programmed way.



Stimulating Forces

What makes an organization to think about change? There are a number of specific,

even obvious factors which will necessitate movement from the status quo. The most

obvious of these relate to changes in the external environment which trigger reaction.

An example of this in the last couple of years is the move by car manufacturers and

petroleum organizations towards the provision of more environmentally friendly

forms of produce`. However, to attribute change entirely to the environment would

be a denial of extreme magnitude. This would imply that organizations were merely

bobbing about` on a turbulent sea of change, unable to influence or exercise

direction. The changes within an organization take place in response both to business

and economic events and to processes of management perception, choice and action.



Managers in this sense see events taking place that, to them, signal the need for

change. They also perceive the internal context of change as it relates to structure,

culture, systems of power and control, which gives them further clues about whether

it is worth trying to introduce change. But what causes change? What factors need to

be considered when we look for the causal effects which run from A to B in an

organization? The change may occur in response to the :

Changes in technology used
Changes in customer expectations or tastes
Changes as a result of competition
Changes as a result of government legislation
Changes as a result of alterations in the economy at home or

abroad

Changes in communication media
Changes in society`s value systems
Changes in the supply chain



7
Changes in the distribution chain



Internal changes can be seen as responses or reactions to the outside world which are

regarded as external triggers. There are also a large number of factors which lead to

what are termed internal triggers for change. Organization redesigns to fit a new

product line or new marketing strategy are typical examples, as are changes in job

responsibilities to fit new organizational structures. The final cause of change in

organizations is where the organization tries to be ahead of change by being proactive.

For example, where the organization tries to anticipate problems in the marketplace or

negate the impact of worldwide recession on its own business, proactive change is

taking place.



Planned Change

Planned organizational change is normally targeted at improving effectiveness at one

or more of four different levels : human resources, functional resources, technological

capabilities, and organizational capabilities.



Human Resources : Human resources are an organization`s most important asset.

Ultimately, an organization`s distinctive competencies lie in the skills and abilities of

its employees. Because these skills and abilities give an organization a competitive

advantage, organizations must continually monitor their structures to find the most

effective way of motivating and organizing human resources to acquire and use their

skills. Typical kinds of change efforts directed at human resources include : (i) new

investment in training and development activities so that employees acquire new

skills and abilities; (ii) socializing employees into the organizational culture so that

they learn the new routines on which organizational performance depends; (iii)

changing organizational norms and values to motivate a multi-cultural and diverse

work force; (iv) ongoing examination of the way in which promotion and reward

systems operate in a diverse work force; and (v) changing the composition of the top-

management team to improve organizational learning and decision making.



Functional Resources : Each organizational function needs to develop procedures that

allow it to manage the particular environment it faces. As the environment changes,



8
organizations often transfer resources to the functions where the most value can be

created. Critical functions grow in importance, while those whose usefulness is

declining shrink. An organization can improve the value that its functions create by

changing its structure, culture, and technology. The change from a functional to a

product team structure, for example, may speed the new product development

process. Alterations in functional structure can help provide a setting in which people

are motivated to perform. The change from traditional mass production to a

manufacturing operation based on self-managed work teams often allows companies

to increase product quality and productivity if employees can share in the gains from

the new work system.



Technological Capabilities : Technological capabilities give an organization an

enormous capacity to change itself in order to exploit market opportunities. The

ability to develop a constant stream of new products or to modify existing products so

that they continue to attract customers is one of an organization`s core competencies.

Similarly, the ability to improve the way goods and services are produced in order to

increase their quality and reliability is a crucial organizational capability. At the

organizational level, an organization has to provide the context that allows it to

translate its technological competencies into value for its stakeholders. This task often

involves the redesign of organizational activities. IBM, for example, has recently

moved to change its organizational structure to better capitalize on its strengths in

providing IT consulting. Previously, it was unable to translate its technical capabilities

into commercial opportunities because its structure was not focused on consulting, but

on making and selling computer hardware and software rather than providing advice.



Organizational Capabilities : Through the design of organizational structure and

culture an organization can harness its human and functional resources to take

advantage of technological opportunities. Organizational change often involves

changing the relationship between people and functions to increase their ability to

create value. Changes in structure and culture take place at all levels of the

organization and include changing the routines an individual uses to greet customers,

changing work group relationships, improving integration between divisions, and

changing corporate culture by changing the top-management team.



9


These four levels at which change can take place are obviously interdependent, it is

often impossible to change one without changing another. Suppose an organization

invests resources and recruits a team of scientists who are experts in a new technology

? for example, biotechnology. If successful, this human resource change will lead to

the emergence of a new functional resource and a new technological capability. Top

management will be forced to re-evaluate its organizational structure and the way it

integrates and coordinates its other functions, to ensure that they support its new

functional resources. Effectively utilizing the new resources may require a move to a

product team structure. It may even require downsizing and the elimination of

functions that are no longer central to the organization`s mission.



Change Agents

Organizations and their managers must recognize that change, in itself, is not

necessarily a problem. The problem often lies in an inability to effectively manage

change : not only can the adopted process be wrong, but also the conceptual

framework may lack vision and understanding. Why is this the case? Possibly, and

many practicing managers would concur, the problem may be traced to the managers`

growing inability to approximately develop and reinforce their role and purpose

within complex, dynamic and challenging organizations. Change is now a way of life;

organizations, and more importantly their managers, must recognize the need to adopt

strategic approaches when facing transformation situations. Throughout the 1980s and

1990s organizations, both national and international, strived to develop sustainable

advantage in both volatile and competitive operating environments. Those that have

survived, and/or developed, have often found that the creative and market driven

management of their human resources can produce the much needed competitive

cushion`.



This is not surprising : people manage change, and well-managed people manage

change more effectively. Managing change is a multi-disciplinary activity. Those

responsible, whatever their designation, must possess or have access to a wide range

of skills, resources, support and knowledge. For example :





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communication skills are essential and must be applied for managing teams.



maintaining motivation and providing leadership to all concerned is necessary.



the ability to facilitate and orchestrate group and individual activities is

crucial.



negotiation and influencing skills are invaluable.



it is essential that both planning and control procedures are employed.



the ability to manage on all planes, upward, downword and within the peer

group, must be acquired.



knowledge of, and the facility to influence, the rationale for change is

essential.



There are many terms that have been used to denote those responsible for the effective

implementation of change : for example, change agents, problem owners, facilitators,

project managers or masters of change. The focal point of a change needs not to be an

individual; a work group could quite easily be designated as a special task force

responsible for managing the change. However, generally within, or above, any work

group there is still someone who ultimately is accountable and responsible. What are

the essential attributes of a change agent/master and are there any guidelines for

them?



The need to encourage participation and involvement in the management of the

change by those who are to be affected has been suggested. The aim is to stimulate

interest and commitment and minimize fears, thus reducing opposition. It may also be

necessary to provide facilitating and support services. These could assist in promoting

an individual`s awareness for the need for change, while counseling and therapy could

be offered to help overcome fears. Management must engage in a process of

negotiation, striving towards agreement. This is essential where those opposing have

the power, and influence, to resist and ultimately block the change. If consensus fails

then one has little alternative but to move on to explicit and implicit coercion.

Somewhere in between the two extremes, the management may attempt to manipulate

events in an effort to sidestep sources of resistance. For example, they may play

interested parties off against each other or create galvanizing crisis to divert attention.





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The techniques need not be employed in isolation. They may be most effective when

utilized in combination. The core tasks facing a change agent or project manager are

to reduce the uncertainty associated with the change situation and then encourage

positive action. Some of the steps to assist are :



1.

identify and manage stakeholders

(Gains visible commitment).

2.

work on objectives





(Clear,

concise

and

understandable)

3.

set a full agenda

(Take a hostile view and

highlight potential difficulties)

4.

build appropriate control systems

(Communication is a two-way

process, feedback is required).

5.

plan the process of change

(Pay attention to : establishing

roles ? clarity of purpose; build a

team ? do not leave it to choice;

nurture coalitions of support ?

fight apathy and resistance;

communicate

relentlessly

?

manage the process; recognize

power ? make the best use of

supporting power bases; handing

over ? ensure that the change is

maintained).





12
The change agents exist throughout the organization (but are crucial at the top) and

constitute in effect a latent force. They have ability to :

question the past and challenge old assumptions and beliefs
leap from operational and process issues to the strategic picture
think creativity and avoid becoming bogged down in the how-to`
manipulate and exploit triggers for change



Further, some of the traits of change agents as business athletes are :

1.

able to work independently without the power and sanction of the

management hierarchy.

2.

effective collaborators, able to compete in the ways that enhance rather

than destroy cooperation.

3.

able to develop high trust relations with high ethical standards.

4.

possess self-confidence tempered with humility.

5.

respectful of the process of change as well as the substance.

6.

able to work across business functions and units ? multi-faceted and

multi-dextrous`.

7.

willing to take rewards on results and gain satisfaction from success.



To summarize, an effective change agent must be capable of orchestrating events;

socializing within the network of stakeholders; and managing the communication

process. There is a need for competent internal change agents to be assigned to the

project so as to ensure cooperation, effective implementation and successful handover

upon completion. The role envisaged for the external change agent includes : to assist

in fully defining the problem; to help in determining the cause and suggesting

potential solutions; to stimulate debate and broaden the horizons; and to encourage the

client to learn from the experience and be ready to handle future situations internally;

is complementary to that of the internal problem owner. It is the responsibility of the

potential clients to establish the need for an objective outsider, by considering their

own internal competencies and awareness of the external opportunities.



The principal problem with using internal change agents is that other members of the

organization may perceive them as being politically involved in the changes and



13
biased toward certain groups. External change agents, in contrast, are likely to be

perceived as less influenced by internal polities. Another reason for employing

external change agents is that as outsiders they have a detached view of the

organization`s problems and can distinguish between the forest and the trees.

Insiders can be so involved in what is going on that they cannot see the true source of

the problems. Management consultants for Mckinsey and Co. are frequently brought

in by large organizations to help the top-management team diagnose an organization`s

problems and suggest solutions. Many consultants specialize in certain types of

organizational change, such as restructuring, re-engineering or implementing total

quality management.



Unplanned Change

Not all the forces for change are the results of strategic planning. Indeed organizations

often are responsive to changes that are unplanned ? especially those derived from the

factors internal to the organization. Two such forces are the changes in the

demographic composition of the workforce and performance gaps.



Changing Employee Demographics : It is easy to see, even within our own

lifetimes, how the composition of the workforce has changed. The percentage

of women in the workforce is greater than ever before. More and more

women with professional qualifications are joining the organization at the

junior and the middle management levels. In addition to these, the workforce

is getting older. Many of the old retired employees from government and

public sector are joining the private sector, thereby changing the employee

demographics. With the opening up of the economy and globalization, the

workforce is also continually becoming more diverse.



To people concerned with the long-term operation of organizations, these are

not simply curious sociological trends, but shifting conditions will force

organizations to change. Questions regarding the number of people who will

be working, what skills and attitudes they will bring to the job, and what new

influences they will bring to the workplace are of key interest to human

resource managers.



14


Performance Gaps : If you have ever head the phrase, It is isn`t broken,

don`t fix it, you already have a good idea of one of the potent sources of

unplanned internal changes in organizations ? performance gaps. A product

line that isn`t moving, a vanishing profit margin, a level of sales that is not up

to corporate expectations ? these are examples of gaps between real and

expected levels of organizational performance. Few things force change more

than sudden unexpected information about poor performance. Organizations

usually stay with a winning course of action and change in response to

failure; in other words, they follow a win-stay/lose-change rule. Indeed

several studies have shown that a performance gap is one of the key factors

providing an impetus for organizational innovations. Those organizations that

are best prepared to mobilize change in response to expected downturns are

expected to be the ones that succeed.



Further, one of the greatest challenges faced by an organization is its ability to

respond to changes from outside, something over which it has little or no control. As

the environment changes, organizations must follow the suit. Research has shown that

organizations that can best adapt to changing conditions tend to survive. Two of the

most important unplanned external factors are governmental regulation and economic

competition.



Government Regulation : One of the most commonly witnessed unplanned

organizational changes results from government regulation. With the opening

up of the economy and various laws passed by the government about

delicensing, full or partial convertibility of the currency, etc., the ways in

which the organizations need to operate change swiftly. These activities

greatly influence the way business is to be conducted in organizations. With

more foreign players in the competitive market, Indian industries have to find

ways and mechanisms to safely and profitably run their business.



Economic Competition in the Global Arena : It happens every day : someone

builds a better mousetrap ? or at least a chapter one. As a result, companies



15
must often fight to maintain their share of market, advertise more effectively,

and produce products more inexpensively. This kind of economic competition

not only forces organizations to change, but also demands that they change

effectively if they are to survive. On some occasions, competition can become

so fierce that the parties involved would actually be more effective if they

buried the hatchet and joined forces. It was this If you can`t beat them, join

them` reasoning that was responsible for the announced alliance dubbed the

deal of the decade by one financial analyst.



Although competition has always been crucial to organizational success, today

competition comes from around the globe. As it has become increasingly less

expensive to transport materials throughout the world, the industrialized nations have

found themselves competing with each other for shares of the international

marketplace. Extensive globalization presents a formidable challenge to all

organizations wishing to compete in the world economy. The primary challenge is to

meet the ever-present need for change i.e., to be innovative. It can be stated that

organizations change in many ways and for many reasons. The norm of pervasive

change brings problems, challenges and opportunities. Those individual managers and

organizations that recognize the inevitability of change and learn to innovate or adapt

to and manage it while focused on creating world class best value will be most

successful. But people and organizations frequently resist change, even if it is in their

best interest, especially in large and established organizations.



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Lewin's Force-Field Theory of Change



A wide variety of forces make organizations resistant to change, and a wide variety of

forces push organizations toward change. Researcher Kurt Lewin developed a theory

about organizational change. According to his force-field theory, these two sets of

forces are always in opposition in an organization. When the forces are evenly

balanced, the organization is in a state of inertia and does not change. To get an

organization to change, the managers must find a way to increase the forces for

change, reduce resistance to change, or do both simultaneously. Any of these

strategies will overcome inertia and cause an organization to change.



Resistance to

Resistance to

change

change

Y

Change

a
n
c
e


X

ovement

M

e
v
e
l

o
f

P
e
r
f
o
rm

L

Force for

Force for

change

change

Time



Figure 1 : Lewin's Force-Field Theory of Change



An organization at performance level X is in balance (Figure 1). Forces for change

and resistance to change are equal. Management, however, decides that the



17
organization should strive to achieve performance level Y. To get to level Y, the

managers must increase the forces for change (the increase is represented by the

lengthening of the up arrows), reduce resistance to change (the reduction is

represented by the shortening of the down arrows), or do both. If they pursue any of

the three strategies successfully, the organization will change and reach performance

level Y. Kurt Lewin, whose Force-Field theory argues that organizations are balanced

between forces for change and resistance to change, has a related perspective on how

managers can bring change to their organization (Figure 2). In Lewin`s view,

implementing change is a three-step process : (1) unfreezing the organization from its

present state, (2) making the change, or movement, and (3) refreezing the

organization in the new, desired state so that its members do not revert to their

previous work attitudes and role behaviours.

1. Unfreeze the

2. Make the

3. R e f re ez e t he

o r g a ni z a t i o n

desired type of

organization in

from its present

change

a new, desired

state

(Movement)

state.



Figure 2 : Lewin's Three-Step Change Process



Lewin warns that resistance to change will quickly cause an organization and its

members to revert to their old ways of doing things unless the organization actively

takes steps to refreeze the organization with the changes in place. It is not enough to

make some changes in task and role relationships and expect the changes to be

successful and to endure. To get an organization to remain in its new state, managers

must actively manage the change process.





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Source



1.

Gareth R. Jones (2004). Organizational Theory, Design, and Change :
Text and Cases. Fourth Edition. Pearson Education, New Delhi.

2.

Robert A. Paton and James McCalman (2000). Change Management : A
Guide to Effective Implementation. Second Edition. Response Books, New
Delhi.

3.

Kavita Singh (2005). Organisation Change and Development. Excel
Books, New Delhi.

Questions

1.

What is change? Discuss various stimulating forces of change.

2.

What is planned change? Discuss various targets of planned change.

3.

What are the traits of change agents? How do external and internal change
agents differ in their roles?

4.

Discuss unplanned change with appropriate examples.

5.

Describe Lewin`s Force-Field Theory of Change. Why is it known as
Three Step Model of Change?



19
UNIT ? II



RESISTANCE TO CHANGE



LEARNING OBJECTIVES

The student will have an under standing of


1.

What is resistance to change ?

2.

What are the source of resistance to change ?

3.

Why is it necessary to overcome the resistance to change ?

4.

How to overcome the resistance to change.

5.

How to minimize resistance to change.



The goal of planned organizational change is to find new or improved ways of using

resources and capabilities in order to increase an organization`s ability to create value

and improve returns to its stakeholders. An organization in decline may need to

restructure its resources to improve its fit with the environment. At the same time

even a thriving organization may need to change the way it uses its resources so that it

can develop new products or find new markets for its existing products. In the last

decade, over half of all Fortune 500 companies have undergone major organizational

changes to allow them to increase their ability to create value. One of the most well-

documented findings from studies have revealed that organizations and their members

often resist change. In a sense, this is positive. It provides a degree of stability and

predictability to behaviour. If there weren`t some resistance, organizational behaviour

would take on characteristics of chaotic randomness.



Resistance to change can also be a source of functional conflict. For example,

resistance to a reorganization plan or a change in a product line can stimulate a

healthy debate over the merits of the idea and result in a better decision. But there is a

definite downside to resistance to change. It hinders adaptation and progress.

Resistance to change doesn`t necessarily surface in standardized ways. Resistance can

be overt, implicit, immediate or deferred. It is easiest for management to deal with

resistance when it is overt and immediate : For instance a change is proposed and

employees quickly respond by voicing complaints, engaging in a work slowdown,

threatening to go on strike, or the like. The greater challenge is managing resistance



20
that is implicit or deferred. Implicit resistance efforts are more subtle ? loss of loyalty

to the organization, loss of motivation to work, increased errors or mistakes, increased

absenteeism due to sickness and hence, more difficult to recognize. Similarly,

deferred actions cloud the link between the source of the resistance and the reaction to

it. A change may produce what appears to be only a minimal reaction at the time it is

initiated, but then resistance surfaces weeks, months or even year later. Or a single

change that in and of itself might have little impact becomes the straw that breaks the

company`s back. Reactions to change can build up and then explode in some response

that seems to tally out of proportion to the change action it follows. The resistance, of

course, has merely been deferred and stockpiled what surfaces is a response to an

accumulation of previous changes.



SOURCES OF RESISTANCE

Sources of resistance could be at the individual level or at the organizational level.

Some times the sources can overlap.



Individual Factors

Individual sources of resistance to change reside in basic human characteristics such

as perceptions, personalities and needs. There are basically four reasons why

individuals resist change.





Habit : Human beings are creatures of habit. Life is complex enough; we do

not need to consider the full range of options for the hundreds of decisions we

have to make every day. To cope with this complexity, we all rely on habits of

programmed responses. But when confronted with change, this tendency to

respond in our accustomed ways become a source of resistance. So when your

office is moved to a new location, it means you`re likely to have to change

many habits, taking a new set of streets to work, finding a new parking place,

adjusting to a new office layout, developing a new lunch time routine and so

on. Habit are hard to break. People have a built in tendency to their original

behaviour, a tendency to stymies change.



Security : People with a high need for security are likely to resist change

because it threatens their feeling of safety. They feel uncertain and insecure



21
about what its outcome will be. Worker might be given new tasks. Role

relationships may be reorganized. Some workers might lose their jobs. Some

people might benefit at the expense of others. Worker`s resistance to the

uncertainty and insecurity surrounding change can cause organizational

inertia. Absenteeism and turnover may increase as change takes place and

workers may become uncooperative, attempt to delay or slow the change

process and otherwise passively resist the change in an attempt to quash it.




Selective Information Processing : Individuals shape their world through their

perceptions. They selectively process information in order to keep their

perceptions intact. They hear what they want to hear. They ignore information

that challenges the world they have created. Therefore, there is a general

tendency for people to selectively perceive information that is consistent with

their existing views of their organizations. Thus, when change takes place

workers tend to focus only on how it will affect them on their function or

division personally. If they perceive few benefits they may reject the purpose

behind the change. Not surprisingly it can be difficult for an organization to

develop a common platform to promote change across the organization and

get people to see the need for change in the same way.




Economic Factors : Another source of individual resistance is concern that

change will lower one`s income. Changes in job tasks or established work

routines also can arouse economic fears if people are concerned they won`t be

able to perform the new tasks or routines to their previous standards,

especially when pay is closely tied to productivity. For example, the

introduction of TQM means production workers will have to learn statistical

process control techniques, some may fear they`ll be unable to do so. They

may, therefore, develop a negative attitude towards TQM or behave

dysfunctionally if required to use statistical techniques.

Group Level Factors

Much of an organization`s work is performed by groups and several group

characteristics can produce resistance to change :



22


Group Inertia : Many groups develop strong informal norms that specify

appropriate and inappropriate behaviours and govern the interactions between

group members. Often change alters tasks and role relationships in a group;

when it does, it disrupts group norms and the informal expectations that group

members have of one another. As a result, members of a group may resist

change because a whole new set of norms may have to be developed to meet

the needs of the new situation.





Structural Inertia : Group cohesiveness, the attractiveness of a group to its

members, also affects group performance. Although, some level of

cohesiveness promotes group performance, too much cohesiveness may

actually reduce performance because it stifles opportunities for the group to

change and adapt. A highly cohesive group may resist attempts by

management to change what it does or even who is a member of the group.

Group members may unite to preserve the status quo and to protect their

interests at the expense of other groups.



Organizations have built-in mechanism to produce stability. For example, the

selection process systematically selects certain people in and certain people out.

Training and other socialization techniques reinforce specific role requirements and

skills. Formalization provides job descriptions, rules and procedures for employees to

follow. The people who are hired into an organization are chosen for fit; they are then

shaped and directed to behave in certain ways. When an organization is confronted

with change, this structural inertia acts as a counter balance to sustain stability.



Group think is a pattern of faulty decision making that occurs in cohensive groups

when members discount negative information in order to arrive at a unanimous

agreement. Escalation of commitment worsens this situation because even when

group members realize that their decision is wrong, they continue to pursue it because

they are committed to it. These group processes make changing a group`s behaviour

very difficult. And the more important the group`s activities are to the organization,

the greater the impact of these processes are on organizational performance.





23


Power Maintenance : Change in decision-making authority and control to

resource allocation threatens the balance of power in organizations. Units

benefiting from the change will endorse it, but those losing power will resist it,

which can often slow or prevent the change process. Managers, for example,

often resist the establishment of self-managed work teams. Or, manufacturing

departments often resist letting purchasing department control input quality.

There are even occasions when a CEO will resist change, denying that it is his

responsibility to promote socially responsible behaviour through out a global

network.




Functional Sub-optimisation : Differences in functional orientation, goals and

resources dependencies can cause changes that are seen as beneficial to one

functional unit to be perceived as threatening to other. Functional units usually

think of themselves first when evaluating potential changes. They support

those that enhance their own welfare, but resist the ones that reduce it or even

seem inequitable.




Organizational Culture : Organizational culture, that is, established values,

norms and expectations, act to promote predictable ways of thinking and

behaving. Organisational members will resist changes that force them to

abandon established assumptions and approved ways of doing things.



Managers sometimes mistakenly assume that subordinates will perceive the desired

changes as they do; thus, they have difficulty in understanding the resistance. A key

task is to determine and understand the reasons behind people`s resistance when it

occurs. Then the challenge is to find ways to reduce it or overcome that resistance.



Overcoming Resistance to Change : Kotter and Schelsinger (1979) has identified six

general strategies for overcoming resistance to change.





Education and Communication : Resistance can be reduced through

communicating with employees to help them see the logic of a change. This

tactic basically assumes that the source of resistance lies in misinformation or



24
poor communication. If employees receive the full facts and get any

misunderstanding cleared up, resistance will subside. Communication can be

achieved through one-to-one discussions, memos, group presentations, or

reports. Does it work? It does, provided the source of resistance is inadequate

communication and that management-employee relations are characterized by

mutual trust and credibility. If these conditions don`t exist, the change is

unlikely to succeed.




Participation and Involvement : It is difficult for individuals to resist a change

decision in which they would have participated. Prior to making a change,

those opposed can be brought into the decision process. People can be

encouraged to help design and implement the change in order to draw out their

ideas and to foster commitment. Participation increases understanding,

enhance feelings of control, reduces uncertainty and promotes a feeling of

ownership when change directly affects people.




Facilitation and Support : If employees are provided with encouragement,

support, training, counseling and resources adapt to new requirements easily.

By accepting people`s anxiety as legitimate and helping them cope with

change, managers have a better change of gaining respect and the commitment

to make it work.





Negotiation and Agreement : Management can bargain to offer incentives in

return for agreement to change. This tactic is often necessary while dealing

with powerful resistance, like bargaining units. Sometimes specific things can

be exchanged in return for help in bringing about a change. Other times,

general perks can be widely distributed and facilitate to implement the change.





Manipulation and Cooptation : Manipulation is framing and selectively using

information and implied incentives to maximise the likelihood of acceptance.

An example would be if the management tells employees that accepting a pay

cut is necessary to avoid a plant shut down, when plant closure would not

really have to occur. Cooptation is influencing resistant parties to endorse the



25
change effort by providing them with benefits they desire and non-influential

role in the process.





Explicit and Implicit Coercion : Some times management might use authority

and the threat of negative incentives to force acceptance of the proposed

change. Management might decide that if employees donot accept proposed

changes, then it has to shut the plant down, decrease salaries or layoff people.

Examples of coercion can be also transfer, loss of promotion, negative

performance evaluations and poor letter of recommendation. The advantages

and drawbacks of coercion are approximately the same as that of manipulation

and cooptation.



METHODS FOR DEALING WITH RESISTANCE TO CHANGE

Approach

Commonly used

Advantages

Disadvantage

Education and

When there is lack of Once persuaded, people Can

be

time

Communication

information or inaccurate will often help with the consuming if lots of
information and analyses. implementation of the people are involved.

change.

Participation and Where the initiators do People who participate Can

be

time

involvement

not

have

all

the will be committed to consuming

it

information they need to implementing change, participants design in
design the change, and and

nay

relevant inappropriate change.

where

others

have information they have

considerable power to will be integrated into
resist.

the change plan.

Facilitation and

When

people

are No other approach Can

be

time

Support

resisting

because

of works as well with consuming,

adjustment problems.

adjustment problems.

expensive and still
fail.

Negotiation and

When someone or some Sometimes

it`s

a Can be too expensive

Agreement

group will clearly lose relatively easy way to in many cases if it
out in a change and when avoid major resistance. alerts

others

of

that

group

has

negotiate

for

considerable power to

competence.

resist.

Manipulation and Where other tactics will It can be a relatively Can lead to future
Co-optation

not work or are too quick and inexpensive problems if people

solution to resistance



26
expensive.

problems.

feel manipulated.

Explicit and

Where speed is essential, It is speedy and can Can be risky if it

implicit coercion

and

the

changes overcome any kind of leaves people mad at

initiations

possess resistance.

the initiator.

considerable power.



MINIMISING RESISTANCE TO CHANGE



Resistance to change be those affected is often the single most formidable obstacle to

its successful realization. It is to be understood at the outset that resistance to change

is not, the fundamental problem to be solved. Rather, any resistance is usually a

symptom of more basic problems underlying the particular situation. To focus the

attention of symptom alone will achieve at best only limited results. The effective

solution is that one must look beyond the symptom that is resistance to its more basic

causes. It is quite appropriate and practicable for a manager to focus on situational

and environmental factors that cause resistance. Many of these are directly within

management`s control. Probably, efforts to minimize any resistance should be

undertaken while it is still potential rather than real. There are different methods that

the managers can use to minimize resistance.





Compulsion Threats and Bribery : Fundamentally, there are only two strategic

options available for minimizing resistance. One is to increase the pressure

that can overcome resistant behavior. The other is to reduce the very force that

cause resistance. In the first strategy, the act of resistance itself is attacked

directly. The causes or reasons for resistance are ignored. Thus, only the

symptoms are addressed. For example, managers using their authority can

threaten subordinate with disciplinary actions. But such compulsions could

create counter measures that would prevent or delay the change from taking

place. The change could even be sabotaged to such an extent that no benefits

would be realised. Sometimes, in discriminate offers of pay increase to lure

subordinates into accepting change can also fail to produce lasting benefits.

This can happen when the reasons for resistance are primarily non-economic.

Such actions attack the resistance rather than its causes. New problems are

created and nullify any potential benefit from change. Therefore, the strategic



27
option that aims directly at overcoming resistance itself, whether by threat or

bribery, is both unwise and undersirable. The consequences of such approach

will be to reduce rather than increase the possibilities for successful

implementation of a change. Therefore, management should reject outright the

use of either threats or bribery as methods for reducing resistance.




Persuation, Rewards and Bargaining : The second strategic option of

reducing the forces that cause resistance is more promising. The offers of

appropriate rewards, can reduce the resistance. By attracting the root causes

rather than symptoms, managers can improve the probabilities for bringing

about change successfully. Offering a reward that is relevant to a specific

reason for resistances can be a powerful lever in providing employees with an

incentive to accept a change. Rewards can either monetary or non-monetary.

Monetary rewards result in greater annual total compensation. Often when a

change alters the content of individual job interms of increased

responsibilities, mental and physical effort required, education and experience

needed, an increase in the rate of payment can be justified. Increased

compensation may be justified if the change cause an individual or group to

enhance contributions to company profits. The monetary reward can be in the

form of fringe benefits such as improved pension scheme, a better holiday or

sickness protection plan, or an enhanced medical insurance programme. When

the people affected believe that an unintended change will somehow increase

the value of what they are being asked to do, they are more vulnerable to

feeling of unfair treatment.



A broad variety of non-monetary rewards can be offered because the needs they
might satisfy range widely. For example, concern about threat and status might be
met with an offer of a more impressive job title, better perks, changing the pattern
of personal interactions and education and training. When the work is reorganized
or the relationships within a group are restructured, the relevant reward might be
more satisfying social relationships in the work situations and the opportunity to
gain greater satisfaction from the work itself. Opportunity for education and
training might be perceived as a way to enhance one`s opportunities for personal
development within the organization. The technique of bargaining is a variation of
the use of persuation through rewards. The bargaining is a process based on
discussion between management and those affected by a change and their union
representatives. In this process, management`s objective is to gain acceptance of



28
their proposals. Management is in no way committed in advance to accept any
proposal made by the group with whom discussions are held. There is, however,
an implicit understanding that management might accept some of the proposals
put forward by the group in exchange for the group`s acceptance of what
management wants. In a sense, then, any concessions or compromises made by
management in bargaining can be considered similar to the offer of rewards. The
essence of bargaining is compromise. To maximize the achievement of their goals
and the satisfaction of their needs, both the management and those affected by a
change must give way to some of the points on which they would have to secure
agreement. It is crucial that the management give careful and open-minded
consideration to every complaint and grievance. In doing so, they must recognize
that the employees and the union`s perception of the change are often distinctly
different from their own. Typically such differences are based on the fact that
management, the union and the employees have different priorities, values and
concerns. Persuading employees to accept a change depends on the offer of
rewards as a lever. This can be done either unilaterally or within the framework of
bargaining. The success of the approach depends on how effectively management




matches rewards offered (both monetary and non-monetary) to their

employee`s needs and goals,



gives serious consideration to all complaints and suggestions and



gives some concession in order to achieve the major portion of their

objectives.



Security and Guarantees : The most effective means for management to minimise

feelings of insecurity, and in particular fears of redundancy, is to guarantee that such

fears are groundless. Management can use as a lever, a pledge that there will be no

redundancy as a consequence of a specific change. This can often make possible its

acceptance. Implementing such a pledge can be a challenging task for the

management. Essentially there are six ways in which a pledge of no redundancy in a

changing situation can be redeemed.





Not replacing by engagement from outside the company anyone who leaves

the organization in a natural course of events (e.g., people who retire, are

sacked, die or resign voluntarily).



Reabsorbing work being done by subcontractors and reassigning any surplus

employees to that work.



29


Retraining redundant employees and transforming or upgrading them to their

work.



Reducing or eliminating any overtime work.



Absorbing additional work resulting from business growth with no new

additions to the workforce until all those who are surplus have been

productively re-employed.



Investing and implementing new areas of business activity.



Another way is to assure the employee of a guarantee of a continued income until he

is working in another comfortable job, either within or outside the company. In this

approach, the management undertakes to help each surplus individual find another

suitable job. If this cannot be accomplished within the company, assistance with

outplacement can be provided. Until this occurs, the employee`s income would

continue to be maintained by the company as a supplement to any unemployment

benefits. Somehow, maintaining income cannot guarantee no redundancy. Although

employee might feel secure about the continuity of income they would nevertheless

feel uneasy about the impending change in their personal lives. They would

undoubtedly have many unanswered questions and apprehensions about new jobs and

new environments. Because of these apprehensions they may still resist the change,

although perhaps less intensely than if they were to be made redundant with no

guarantees of any kind.



A person`s feeling of insecurity can also be heightened if there is fear about inability

to perform adequately in the new situation. Management can do much to reduce this

fear by use of training. A carefully designed program of training can often help to

make the change successful. This means matching the training provided to the true

needs of the people involved. It also means providing training in a way that engages

and motivates. Training programs can yield another benefit as well. The very act of

establishing one provides evidence that management is doing everything possible to

help those involved cope with the change. Such a reassuring demonstration of

management`s support should reduce the feeling of insecurity so often associated with

feeling of inadequacy.





30
To lessen any feeling of insecurity from factors other than fear of redundancy or

inadequacy, management can engage their employees in discussion. Those involved

in the discussions can develop a realistic understanding of the change and its probable

consequences. Such understanding can do much to dispel any fear resulting from

misunderstanding or lack of information.





31
Understanding and Discussions

When as many as possible of those people involved in a change understand as much

as possible about it and its consequences, resistance is likely to be reduced. It is

management`s job to develop this understanding. Resistance will be prevented to the

degree that the change agent help the change affected people to develop their own

understanding of the need for change, and an explicit awareness of how they feel

about it and what can be done about their feelings. Such an understanding will occur

only when the information provided is sufficient, factual and accurate. Management

can transmit information about a proposed change and its probable consequences to

those affected or concerned in a variety of ways. Fundamentally, there are only three

practical media for communication; written material, audio-visual and oral, No single

means, however, should be relied on exclusively. The more complex the change, the

greater will be the possibility. That everyone involved is being reached with

maximum of information. Several conditions must be met for understanding to be

developed in a changing situation.




Information must be readily accessible, factual and accurate.



Information must be communicated in such language or in such a form that is

readily understandable.



Information must answer the questions that are being asked not only what is to

happen, but also how, why, when, where and to whom.



There must be a way to test and conform that real understanding has in fact

been achieved.



A lack of understanding can result in heightened anxiety about the possible

consequences of change. This, in turn, can result in resistant behaviour. In additon, it

is likely that, because of this lack, those performing the work will derive less

satisfaction from their jobs. This should be of concern to management, particularly

during a change. When people do not understand what they are doing, those abilities,

which are uniquely human cannot be exercised. These abilities are the application of

informed and intelligent judgements to the performance of work. When anyone is

deprived of the opportunity to make meaningful judgements, the result is increasing



32
frustration. Not only will both the person and the work suffer, but so also will the

organization.



Time and Timing

When management are willing to discuss openly with their employees all aspects of

an impending change, it is desirable that ample time be planned between the initial

mention of the change and the state of its actual initiation. Management should use

this interval to ensure that all involved attain maximum understanding of the change

and its probable consequences. Management should plan the length of this interval by

working out a trade-off between two considerations. Often these will be in conflict

with each other. The first of this is a question of how long it takes for the processes of

accommodation and rationalization to occur for the most people involved. The second

consideration is an evaluation of those situational factors which determine when the

change must be instituted and implemented and when the benefits must be realized.



To achieve the best trade-off between these two considerations, management needs to

evaluate the relative costs of two alternatives; delaying the introduction of the change

to gain more preparation time in the interest of realizing optimum benefits,

conforming to the intended schedule with the possibility of an increased risk of

resistance and the resultant probability of reduced benefits. In many instances,

management may discover that will be economic to delay the change until the

possibility of its acceptance is enhanced. If management decides not to delay,

resistance may cause not only reduction in the possible benefits but also probable

delays in their realization, management should plan sufficient time during the early

phase of the change for accommodation and rationalization to occur and for

understanding to be developed.



Involvement and Participation : Involvement and participation are perhaps the most

powerful techniques management can use to gain acceptance of change. Commitment

to carry out these decisions is intensified. Personal satisfaction derived from the job is

increased. The extent of personal involvement can range from merely being informed,

to discussing problems and voicing opinions and feelings to actually making and

implementing decision (Figure).



33


At the most superficial level, some participation occurs when one is designated to

receive information either written via distribution lists or in face-to-face briefings. At

a slightly more intensive level, participation can be gained through individual or

group consultations. This process is no more than an extension of the face-to-face

discussion. In the process of soliciting inputs, the managers carry this approach to step

further. Those present are asked to make suggestions about how the change might be

accomplished. Alternately a problem might be assigned to a group for analysis and

recommended actions.



SPECTRUM OF LEVELS OF PARTICIPATION

Active

Management action

Employee action



Delegating

decision

making Management and implementing decision

authority

?

Task assignment with accountability

Group

?

Formulating proposed plans and
solutions to problems



?

Planning



?

Task forces

Soliciting inputs

? Group

suggestions

and

recommendations

?

Analysis

of

problems

and

alternatives

?

Individual suggestions

Consultation

?

Face-to-face discussion of problem

?

Face-to-face invitations to voice
opinions

?

Electronic exchanges

Inclusion

?

Attendance at briefing

Passive



?

Inclusions on distribution list



Employee take pride in and derive satisfaction that their suggestions or

recommendations are being consulted. These feelings are intensified when their inputs

are actually adopted or acted upon. But if inputs are rejected, then those who offered

them must be made to understand the reasons for it. When managers are effective in

explaining why certain inputs were rejected, consultation and solicitation can still be

productive. There are three reasons. First, the very fact that employees have

opportunities both to express themselves and to be given serious attention can, in it

self, be beneficial to attitude and morale. Second, by understanding why a suggestion



34
was not acceptable, an employee may reach a better understanding of the change.

Third, an employee may be encouraged to offer better suggestions in the future.



A basic requirement for participation is that the people involved want to participate. A

second prerequisite for successful participation is that the manager or superior must

feel reasonably secure in his or her position and role. When managers can bring

themselves to risk their status in the eyes of the subordinates by involving them in

some form of participation, they may find the consequences startling. When

employees are permitted or encouraged to participate, their esteem for their managers

often tend to increase rather than decrease.



The third prerequisite for participation is the absence of commitment by a manager to

any single course of action. He must be open-minded to possibilities or alternative

approaches. If he is convinced from the outset that his method is the best and the only

means of accomplishing the change, he would not involve others and such an attempt

would soon be perceived as meaningless and essentially dishonest.



The fourth condition necessary for effective participation is the manager`s willingness

to give credit and recognition openly to all worthwhile contributions made by others.

It`s the realization of the change. Also, if impracticable ideas are offered, the manager

must ensure that the contribution receives full explanations about reasons for

rejections.



The fifth condition is the employee`s willingness to voice their comments and to offer

suggestions once they have been encouraged to do so. Participation will not work with

people who are passive and apathetic. When all these conditions conducive the use of

participation in managing a change can yield at least eight significant benefits :





Participation helps to develop a better and more complete understanding of the

change, its causes and its probable consequences.



Participation is a powerful way to unfreeze fixed attitude, stereotypes or

cultural beliefs which are held either by management or by the workforce, and



35
which create a hurdle to with the accomplish the change. Through

participation, these beliefs can be re-examined more objectively.



Participation helps to increase employee`s confidence in management`s

intentions and objectives.



Often, as a consequence of participation, first hand ideas are contributed

which results in better methods of introducing and implementing change.



Through participation, people involve themselves in the change. They become

more committed to the decision in which then took part.



Participation sometimes serves to present poorly-conceived changes form

being made.



Through participation, staff specialists tend to broaden their outlook.



Through participation, employees at every organizational level gain a broader

perspective and develop their capabilities.



Flexibility and the Tentative Approach : It is often desirable to introduce a change

initially as a tentative trial effort. A trial can be defined on the basis either of a

specified period or two or of a designated segment of the operating system. There are

several advantages of using the technique of positioning the change as a tentative trial

:



Those involved are able to test their reactions to the new situation before

committing themselves irrevocably.



Those involved are able to acquire more facts on which to base their attitudes

and behaviours toward the change before it becomes final.



When those involved have strong perceptions about the change before hand,

they will be in a better position to regard the change with greater objectivity

during the trial. As they gain experience with change during the trial, they will

be able to reconsider their perception and perhaps modify also.



Those involved are less likely to regard the change as a threat because they

will feel some ability to influence what happens.



Management is better able to evaluate the method of change and make any

necessary modification before carrying it our finally.





36
All these advantage accrue from the opportunity to gain some limited experience of

the change while the situation is still fluid and susceptible to further revision or

modification. Thus, introducing a change by positioning it as a tentative trial tends to

reduce its threat to those affected. Consequently, their resistance to the change in its

final term will often be reduced. Management can minimize resistance to change and

often generate support by actively addressing the techniques described.



Sources

Stephen P. Robbins (2005). Organizational Behaviour. IIth Edition. New Delhi :
Prentice Hall.

Kavita Singh (2005). Organisation Change and Development. New Delhi : Excel.


Questions

1.

Though it is said that change is the only permanent thing, a majority of us still
have a tendency to resist it. Why? What can organizations do to overcome this
resistance?





2.

Discuss different methods of minimizing resistance to change in the
organizations.


3.

People have varied set of reactions when confronted with change. Discuss.






Unit ? III CHANGE PROGRAMS

Lesson:1 : Change Programs


INTRODUCTION:





Change is inevitable in the life of an individual or organisation. In today`s

business world, most of the organisations are facing a dynamic and changing business

environment. They should either change or die, there is no third alternative.

Organisations that learn and cope with change will thrive and flourish and others who

fail to do so will be wiped out. The major forces which make the changes not only

desirable but inevitable are technological, economic, political, social, legal,



37
international and labour market environments. Recent surveys of some major

organisations around the world have shown that all successful organisations are

continuously interacting with the environment and making changes in their structural

design or philosophy or policies or strategies as the need be.





According to BARNEY AND GRIFFIN, The primary reason cited for

organizational problems is the failure by managers to properly anticipate or respond to

forces for change.





Thus, in a dynamic society surrounding today`s organisations, the question

whether change will occur is no longer relevant. Instead, the issue is how do

managers cope with the inevitable barrage of changes that confront them daily in

attempting to keep their organisations viable and current. Otherwise the organisations

will find it difficult or impossible to survive.



MEANING OF CHANGE:



Unlike other concepts in organisational behaviour, not many definitions are

available to define the term change. In very simple words we can say that change

means the alternation of status quo or making things different.





The term change refers to any alternation which occurs in the overall work

environment of an organisation.





To quote another definition When an organisational system is disturbed by

some internal or external force, change frequently occurs. Change, as a process, is

simply modification of the structure or process of a system. It may be good or bad,

the concept is descriptive only.





From the above definitions we can conclude that change has the following

characteristics.





38
Change results from the pressure of both internal and external forces in the

organisation. It disturbs the existing equilibrium or status quo in the

organisation.

The change in any part of the organisation affects the whole of the

organisation.

Change will affect the various parts of the organisation in varying rates of

speed and degrees of significance.

Changes may affect people, structure, technology and other elements of the

organisation.

Change may be reactive or proactive. When change is brought about due to the

pressure of external forces, it is called reactive change. Proactive change is

initiated by the management on its own to increase organisational

effectiveness.





FORCES FOR CHANGE:



There are a number of factors both internal and external which affect

organisational functioning. Any change in these factors necessitates changes in an

organisation. The more important factors are as follows:



A. External Forces:



External environment affects the organisations both directly and indirectly.

The organisations do not have any control over the variables in such an environment.

Accordingly, the organisation cannot change the environment but must change

themselves to align with the environment. A few of these factors are:







1. Technology: Technology is the major external force which calls for change.

The adoption of new technology such as computers, telecommunication systems and

flexible manufacturing operations have profound impact on the organisations that

adopt them.





The substitution of computer control for direct supervision, is resulting in

wider spans of control for managers and flatter organisations. Sophisticated



39
information technology is also making organisations more responsive: Both the

organisations and their employees will have to become more adaptable. Many jobs

will be reshaped. Individuals who do routine, specialised and narrow jobs will be

replaced by workers who can perform multiple in decision making. Managements

will have to increase their investment in training and education of the employees

because employees skills are becoming obsolete more quickly Japanese firms have

progressed rapidly because they are very fast in adopting new technological

innovations.





2. Marketing Conditions: Marketing conditions are no more static. They are

in the process of rapid change as the needs, desires and expectations of the customers

change rapidly and frequently. Moreover, there is tough competition in the market as

the market is flooded with new products and innovations everyday. New methods of

advertising are used to influence the customers. Today the concept of consumerism

has gained considerable importance and thus, the consumers are treated as the kings.





Moreover, the competition today has some significant new twists. Most

markets will soon be international because of decreasing transportation and

communication costs and the increasing export orientation of business. The global

economy will make sure that competitors are likely to come across the ocean as well

as from across town. Successful organisations will be those who can change in

response to the competition. Organisations that are not ready for these new sources of

competition in the next decade may not exist for long.





3. Social Changes: Social and cultural environment also suggest some

changes that the organisations have to adjust for. There are a lot of social changes

due to spread of education, knowledge and a lot of government efforts. Social

equality e.g. equal opportunities to women, equal pay for equal work, has posed new

challenges for the management. The management has to follow certain social norms

in shaping its employment, marketing and other policies.





4. Political Forces: Political environment within and outside the country have

an important impact on business especially the transnational corporations. The



40
interference of the government in business has increased tremendously in most of the

countries. The corporate sector is regulated by a lot of laws and regulations. The

organisations do not have any control over the political and legal forces, but they have

to adapt to meet the pressure of these forces.





In our country, the new economic policy has liberalized the economy to a

large extent. Many of the regulatory laws have been amended to reduce the

interference of the Government in business. An organisation is also affected by he

world politics. Some of the changes in the world politics which have affected

business all over the world are e.g. the reunification of Germany, Iraq`s invasion of

Kuwait and the break of Soviet Union.



B. Internal Forces



Internal forces are too many and it is very difficult to list them

comprehensively. However, major internal causes are explained as follows:





1. Nature of the Work Force: The nature of work force has changed over a

passage of time. Different work values have been expressed by different generations.

Workers who are in the age group of 50 plus value loyalty to their employers.

Workers in their mid thirties to mid forties are loyal to themselves only. The

youngest generation of workers is loyal to their careers.





The profile of the workforce is also changing fast. The new generation of

workers have better educational qualifications, they place greater emphasis on human

values and question authority of managers. Then behaviour has also become very

complex and leading them towards organisational goals is a challenge for the

managers. The employee turnover is also very high which again puts strain on the

management. The work force is changing, with a rapid increase in the percentage of

women employees, which in turn means, more dual career couples. Organisations

have to modify transfer and promotion policies as well as make child care and elder

care available, in order to respond to the needs of two career couple.





41


2. Change in Managerial Personnel: Change in managerial personnel is

another force which brings about change in organisation. Old managers are replaced

by new managers which is necessitated because of promotion, retirement, transfer or

dismissal. Each managers brings his own ideas and way of working in the

organisation. The informal relationships change because of changes in managerial

personnel. Sometimes, even though there is no change in personnel, but their

attitudes change. As a result, the organisation has to change accordingly.





Changes in the organisation are more fast when top executives change.

Change in top executives will lead to important changes in the organisation in terms

of organisation design, allocation of work to individuals, delegation of authority,

installation of controls etc. All these changes will be necessitated because every top

executive will have his own style and he will like to use his own ideas and

philosophies.





3. Deficiencies in Existing Management Structure: Sometimes changes are

necessary because of some deficiencies in the existing organisational structure,

arrangement and processes. These deficiencies may be in the form of unmanageable

span of management, larger number of managerial levels, lack of coordination among

various departments, obstacles in communication, multiplicity of committees, lack of

uniformity in policy decisions, lack of cooperation between line and staff and so on.

However, the need for change in such cases goes unrecognised until some major crisis

occurs.





4. To Avoid Developing Inertia: In many cases, organisational changes take

place just to avoid developing inertia or inflexibility. Conscious managers take into

account this view that organisation should be dynamic because any single method is

not the best tool of management every time. Thus, changes are incorporated so that

the personnel develop liking for change and there is no unnecessary resistance when

major changes in the organisation are brought about.



LEVEL OF CHANGE PROGRAMS:



42


The various types of change programs may be classified into individual level

changes, group level changes and organisational level changes.



INDIVIDUAL LEVEL CHANGE PROGRAMS:



Individual level changes may take place due to changes in job assignment,

transfer of an employee to a different location or the changes in the maturity level of a

person which occurs over a passage of time. The general opinion is that change at the

individual level will not have significant implications for the organisation. But this is

not correct because individual level changes will have impact on the group which in

turn will influence the whole organisation. Therefore, a manager should never treat

the employees in isolation but he must understand that the individual level change

will have repercussions beyond the individual.



GROUP LEVEL CHANGE PROGRAMS:



Management must consider group factors while implementing any change,

because most of the organisational changes have their major effects at the group level.

The groups in the organisation can be formal groups or informal groups. Formal

groups can always resist change for example, the trade unions can very strongly resist

the changes proposed by the management. Informal groups can pose a major barrier

to change because of the inherent strength they contain. Changes at the group level

can affect the work flows, job design, social organisation, influence and status

systems and communication patterns.





The groups, particularly the informal groups have a lot of influence on the

individual members on the group. As such by effectively implementing change at the

group level, resistance at the individual level can be frequently overcome.



ORGANISATION LEVEL CHANGE PROGRAMS:



The organisational level change involves major programmes which affect both

the individuals and the groups. Decisions regarding such changes are made by the

senior management. These changes occur over long periods of time and require

considerable planning for implementation. A few different types or organisation level

changes are:



43




1. Strategic Change: Strategic change is the change in the very basic

objectives or missions of the organisation. A single objective may have to be changed

to multiple objectives. For example, a lot of Indian companies are being modified to

accommodate various aspect of global culture brought in by the multinational or

transnational corporations.





2. Structural Change: Organisational structure is the pattern of relationships

among various positions and among various position holders. Structural change

involves changing the internal structure of the organisation. This change may be in

the whole set of relationships, work assignment and authority structure. Change in

organisation structure is required because old relationships and interactions no longer

remain valid and useful in the changed circumstances.





3. Process Oriented Change: These changes relate to the recent technological

developments, information processing and automation. This will involve replacing or

retraining personnel, heavy capital equipment investment and operational changes.

All this will affect the organisational culture and as a result the behaviour pattern of

the individuals.





4. People Oriented Change: People oriented changes are directed towards

performance improvement, group cohesion, dedication and loyalty to the organisation

as well as developing a sense of self actualisation among members. This can be made

possible by closer interaction with employees and by special behavioral training and

modification sessions. To conclude, we can say that changes at any level affect the

other levels. The strength of the effect will depend on the level or source of change.



MANAGING PLANNED CHANGE:



A planned change is a change planned by the organisation, it does not happen

by itself. It is affected by the organisation with the purpose of achieving something

that might otherwise by unattainable or attainable with great difficulty. Through

planned change, an organisation can achieve its goals rapidly. The basic reasons for

planned change are.



44
To improve the means for satisfying economic needs of members

To increase profitability

To promote human work for human beings

To contribute to individual satisfaction and social well being.



In introducing planned change, the basic problem before management is to handle
it in such a way that there would be necessary adjustment in various forces. For
this purpose, the manager who has to act as the change agent, has to go through a
particular process. The planned change process may comprise basically the
following three steps.

1. Planning for change
2. Assessing change forces
3. Implementing the change



1. Planning For Change:

The first step in the process of change is to identify the next for change and the
area of changes as to whether it is a strategic change, process oriented change or
employee oriented change. This need for change can be identified either through
internal factors or through external factors. Once this need is identified, the
following general steps can be taken.

(i) Develop New Goals and Objectives: The manager must identify as to what
new outcomes they wish to achieve. This may be a modification of previous goals
due to changed internal and external environment or it may be a new set of goals
and objectives.


(ii) Select an Agent of Change: The next step is that the management must decide
as to who will initiate and oversee this change. One of the existing managers may
be assigned this duty or even sometimes specialists and consultants can be brought
in from outside to suggest the various methods to bring in the change and monitor
the change process.


(iii) Diagnose the Problem: The person who is appointed as the agent of change
will then gather all relevant data regarding the area or the problem where the
change is needed. This data should be critically analysed to pinpoint the key
issues. Then the solutions can be focussed on those key issues.

(iv) Select Methodology: The next important step is select a methodology for
change which would be commonly acceptable and correct. As the human
tendency is to resist the change, employee`s emotions must be taken into
consideration when devising such methodology.




45
(v) Develop a Plan: After devising the methodology, the next step will be to put
together a plan as to what is to be done. For example, if the management wants to
change the promotion policy, it must decide as to what type of employees will be
affected by it, whether to change the policy for all the departments at once or to
try it on a few selected departments first.

(vi) Strategy for Implementation of the Plan: In this stage, the management must
decide on the when`, where` and how` of the plan. This include the right time
of putting the plan to work, how the plan will be communicated to the employees`
in order to have the least resistance and how the implementation will be
monitored.


2. Assessing Change Forces:


The planned change does not come automatically, rather there are many forces

in individuals, groups and organisation which resist such change. The change
process will never be successful unless the cooperation of employees is ensured.
Therefore, the management will have to create an environment in which change
will be amicably accepted by people. If the management can overcome the
resistance the change process will succeed.




In a group process, there are always some forces who favour the change and

some forces who are against the change. Thus, an equilibrium is maintained.
Kurtlewin calls in the field of forces. Lewin assumes that in every situation
there are both driving and restraining forces which influence any change that may
occur.




Driving Forces are those forces, which affect a situation by pushing in a

particular direction. These forces tend to initiate the change and keep it going.
Restraining Forces act to restrain or decrease the driving forces. Equilibrium is
reached when the sum of the driving forces equals the sum of the restraining
forces.


There may be three types of situations, as both driving and restraining forces are
operating:


(i) If the driving forces far out weight the restraining forces, management can

push driving forces and overpower restraining forces.



(ii) If restraining forces are stronger than driving forces, management either

gives up the change programme or it can pursue it by concentrating on driving
forces and changing restraining forces into driving ones or immobilising them.




46


(iii) If driving and restraining forces are fairly equal, management can push up

driving forces and at the same time can convert or immobilize restraining forces.



Thus, to make the people accept the changes, the management must push

driving forces and convert or immobilise the restraining forces.


3. Implementing Change:


Once the management is able to establish favourable conditions, the right

timing and right channels of communication have been established the plan will
be put into action. It may be in the form of simple announcement or it may
require briefing sessions or in house seminars so as to gain acceptance of all the
members and specially those who are going to be directly affected by the change.
After the plan has been implemented there should be evaluation of the plan which
comprises of comparing actual results to the objectives. Feedback will confirm if
these goals are being met so that if there is any deviation between the goals and
actual performance, corrective measures can be taken.


* * * * *



47
Course Code: 39







Paper Code: H4010

M.B.A. ? H.R.M. IV SEMESTER

Paper: XVI : ORGANISATIONAL DEVELOPMENT AND
CHANGE

Author: Dr. K.A.S.P.Rama Raju
Reader in Commerce, P.G.Courses,
D.N.R.College, Bhimavaram, A.P.



Unit ? III CHANGE PROGRAMS

Lesson:2

EFFECTIVENESS OF CHANGE PROGRAMS



INTRODUCTION:



Well documented findings from research of individual and organisational

behaviour is that organisational groups and individuals resist changes. In a sense,
this is positive also because it provides a degree of stability and predictability to
behaviour. If there was not some resistance, organisational behaviour would take
on characteristics of chaotic randomness.



The basic question is what are the causes of such resistance. For analytical

purposes, let us categorize the causes into the following:

Individual resistance
Group resistance
Organisational resistance



INDIVIDUAL RESISTANCE:


Below are stated some reasons why people resist changes. Some of these

appear to be rational and emotional. These reasons are:


1. Economic Factors: The economic reasons for the resistance to change may

be the following:


a. Workers may fear that the change will lead to technological unemployment.

Generally, new technology is associated with the education of labour intake and
therefore, people will resist a change that will affect their employment.


b. Workers fear that they will be idle most of the time due to the increased

efficiency of the new technology, which in turn may lead to retrenchment of
labour force.



48


c. Workers may fear that they will be demoted if they don`t acquire the skills

required for the new jobs.


d. Workers resist the change which leads to setting high job standards, which in

turn may reduce opportunities for bonus or incentive pay.




2. Habits: All human beings are creatures of habit. The modern life is so

complex that nobody wants to consider the full range of options for the hundreds
of decisions we have to make every day. Instead all of us rely on habits or
programmed responses. For example whenever we decide to go out for dinner we
generally try to go to our tried and tested restaurant instead of trying a new one
every time.



Due to this nature of human beings whenever a person is confronted with a

change, his basic tendency will be to resist the change. For example, whenever a
person is transferred, his first reaction, most of the time, is to resist the change
because it will lead to a lot more complexities like shifting the house, change of
schools of the children, making adjustments in the new place, finding new friends,
joining new group etc. Thus, every person will try to take the easy way out by
resisting this change.



3. Insecurity: One of the major reasons for resistance to change is uncertainty

about the impact of change, specially on job security. The fear of the unknown
always has a major impact on the decision of the individuals. Not knowing what
the change would bring about makes the employees anxious and apprehensive
about the change.



4. Lack of Communication: If the workers are given an opportunity to

participate in the process of change, the resistance is likely to be less. But if the
change is not properly communicated that to in an acceptable manner to the
employees, it is likely to cause resistance.




5. Extent of Change: If there is a minor change and the change involves only

the routine operations, the resistance, if any, will be minimum. But the major
changes like reshuffling of staff will lead to major visible resistance. Similarly,
the process of change is slow, the resistance will be less as compared to rapid or
sudden changes.




6. Psychological Factors: One of the major reasons for resistance can be the

emotional turmoil that a change may cause, especially if the past experiences with
the changes have not been positive. The psychological reasons for resistance to
change are:



49


a. Workers may not like criticism implied in a change that the present method

is inadequate and unsuitable.

b. New changes may lead to reduction of the personal pride of the workers

because they fear that new work changes will do away with the need for
much manual work.

c. Workers may have the fear that the new jobs will bring boredom and

monotony as a result of specialization brought by the new technology.

d. They may resist the change because harder work will be required to learn

and adapt to new ideas and they do not want to take the trouble in learning
new things.

e. The workers may be incapable of understanding the implications of new

ideas and methods.


7. Social Factors: Individuals have social needs like friendship, belongingness
etc. for the fulfillment of which they develop social relations in the organisation.
They become members of certain informal groups. The change will bring a fear
in the mind of people because there is generally dislike for new adjustments,
breaking present social relationships, reduced social satisfaction, feeling of
outside interference in the form of change agent etc.


GROUP RESISTANCE:


Most organisational changes have impact on formal groups in the

organisation. Breaking up a close knit work group or changing social relationship
can provoke a great deal of resistance. The main reason why the groups resist
change is that they fear that their cohesiveness or existence is threatened by it.
This is particularly true in case of groups which are very cohesive, where people
have a very strong sense of belongingness to the group and where the group
members consider their group as superior to the other groups.


ORGANISATION RESISTANCE:


Most organisational changes have impact on informal groups in the

organisation. Breaking up a close knit work group or changing social relationship
can provoke a great deal of resistance. The main reason why the groups resist
change is that they fear that their cohesiveness or existence is threatened by it.
This is particularly true in case of groups which are very cohesive, where people
have a very strong sense of belongingness to the group and where the group
members consider their group as superior to the other groups.


ORGANISATIONAL RESISTANCE


Organisational resistance means that the change is resisted at the level of the

organisation itself. Some organisations are so designed that they resist new ideas,
this is specifically true in case of organisations which are conservative in nature.
Government agencies want to continue doing what they have been doing for a
number of years even though there is a need for the change in their services. Most



50
of the educational institutions are using essentially the same teaching technologies
which they were using fifty years ago. Majority of the business firms are also
resistant to changes. The major reasons for organisational resistance are :




1. Threat to Power: Top management generally consider change is a threat

to their power and influence in the organisation due to which the change will be
resisted by them. The introduction of participative decision making or self
managed work teams is the kind of change which is often seen as threatening by
the middle and top level management. In addition they will never like to take the
steps which will strengthen the position of trade unions.




2. Group Inertia: Sometimes, the individuals resist change because the group

to which they belong resists it. The degree and force of resistance will depend
upon how loyal one is to the group and how effectively group resists the change,
Generally, the members of a group are influenced by the codes, patterns and
attitudes of the group. Resistance to rationalisation collectively by labour in India
is an example of group resistance.



3. Organisational Structure: Change is often resisted by the bureaucratic

structures where jobs are narrowly defined, lines of authority clearly spelled and
flow of information is stressed from top to bottom. Moreover, organisations are
made up of a number of interdependent subsystems, one system cannot be
changed without affecting the others.






4. Threat to Specialisations: Changes in organisation may threaten the

expertise of specialised groups. For example, giving computer training to all the
employees in the organisation and giving personal computers was perceived as a
threat by the experts in computer department of the organisation.



5. Resource Constraints: Organisations need adequate financial resources for

training change agents and for offering rewards to those who support change. An
organisation who does not have resources for implementing the change often
resists it.



6. Sunk Costs: The change is generally resisted by the top management,

because it often leads to the problem of sunk costs. The heavy capital which is
already invested in the fixed assets or the amount which has already been spent on
the training of the employees will go waste if the change is introduced.



All the forces which resist the change are explained with the help of a figure

given above.




51
RESISTANCE TO ORGANISATIONAL CHANGE:


The resistance to change can have some very unfavourable consequences if

the change is considered or perceived to be a threat to the individual or the group
it can result in:

a. Implicit defensive behaviour such as loss of loyalty to the company loss of

motivation to work, persistent reduction in output, excessive absenteeism
sullen hostility, increase in errors and so on.

b. Overt defensive behaviour such as civil disobedience, strikes, slowdown of

work or aggressive unionism.

These signs of resistance would require that management should play a very
active and constructive role in convincing all the employees that the change would
be beneficial to all the parties concerned.

OVERCOMING RESISTANCE TO CHANGE:


Problem of overcoming resistance to change can be handled at two levels:

(i) At the individual level.
(ii) At the group level through group dynamics.


Both these attempts are complementary and sometimes these efforts may be
overlapping because every individual is a member of some group, both at the
formal and at the informal levels.


EFFORTS AT THE INDIVIDUAL LEVEL:


The management can use the following strategies to overcome resistance by

the people and to introduce changes successfully:


1. Participation and Involvement: Individuals will find it difficult to resist

the changes in which they participated. Prior to making a change, all those
persons who are going to be affected by the change, can be brought into the
decision making process. Their doubts and objections should be removed to win
their cooperation. Getting opinions out in the open, so that they are looked at end
evaluated is an important trust building task. This involvement of the workers can
overcome resistance, obtain personal commitment and increase the quality of the
change decisions. But this method may lead to a lot of time consumption as well
as it may be a potential for poor solutions.


2. Effective Communication: Inadequate or inaccurate information can be a

reason for the resistance to change. An appropriate communication programme
can help in overcoming this resistance. Workers can be given necessary education
about the change, its process and its working through training classes, meetings
and conferences. The reasons about the change must be communicated very
clearly and without ambiguity. Communication can help dissipate some fear of
unknown elements. Management should also see that there is a two way
communication between the management and the workers so that the former
comes to know about the reactions of the latter directly without delay. All this



52
will help persuade employees about the necessity of change and once persuaded
they may actively want to have the change.


3. Facilitation and Support: Change agents can offer facilitation and

supportive efforts to overcome resistance. Facilitative support means removing
physical barriers in implementing change by providing appropriate training, tools,
machinery etc.


Supportive efforts include listening, providing guidance, allowing time off

after a difficult period and providing emotional support. Emotional support is
provided by showing personal concern to the employees during periods of stress
and strain.



The drawback of this method is that it is time consuming and expensive and its

implementation offers no assurance of success.


4. Leadership: Leadership plays a very important role in overcoming

resistance to change. A capable leader can reinforce a climate of physical support
for change.


The Greater the prestige and credibility of the person who is acting as a

change agent, the greater will be the influence upon the employees who are
involved in the change process. A strong and effective leader can exert emotional
pressure on his subordinates to bring about the desired change. Most of the times,
there is no resistance from the subordinates and if they resist, the leader tries to
overcome resistance by leadership process.


5. Negotiation and Agreement: Negotiation and agreement technique is used

when costs and benefits must be balanced for the benefit of all concerned parties.
If people or groups are losing something significant in the change and if they have
enough power to resist strongly. Negotiations before implementation can make
the change go much more smoothly, even if at the later stages if some problems
arise, the negotiated agreement can be referred to.


6. Manipulation and Cooptation: This method is used in the situation, where

other methods are not working or are not available. Managers can resort to
manipulation of information, resources and favours to overcome resistance. Or
they can resort to cooptation which means to coopt an individual, perhaps a key
person within a group, by giving him a desirable role in designing or carrying out
the change process. This technique has some doubtful ethics and it may also
backfire in some cases.


7. Coercion: Managers may resort to coercion if all other methods fail or for

some reason are inappropriate. Coercion may be in form of explicit or implicit
threats involving loss of jobs, lack of promotion and the like. Managers
sometimes dismiss or transfer employees who stand in the way of change.
Coercion can seriously affect employees attitudes and have adverse consequences
in the long run.



8. Timing of Change: Timing of introduction of change can have a

considerable impact on the resistance. The right time will meet less resistance.
Therefore, management must be very careful in choosing the time when the



53
organisational climate is highly favourable to change. An example of right time is
immediately after a major improvement in working conditions.


EFFORTS AT THE GROUP LEVEL:


A group is a cluster of persons related in some way by common interests over

a period of time. Members of the group interact with each other and develop
group cohesiveness among themselves. That is why although change can be
obtained individually, it is more meaningful if it is done through group.
Therefore, management should consider the group and not the individual as the
basic unit of change. Group dynamics offer some basic help in this regard.



Darwin Cartwright has identified the following characteristics of group as a

means of overcoming resistance to change:

o If both the change agent and the people target for change belong to the same

group, the role of group is more effective.

o If the people have more cohesiveness and strong belonging to the group,

change is easier to achieve.

o The more attractive the group is to the members, the greater is the influence of

the group to accept or resist a change.

o Group can exert more pressure on those factors of the members which are

responsible for the group being attractive to the members. Normally attitudes,
values and behaviour are more common factors determining the group
attractiveness.

o The degree of prestige of a group, as interpreted by the members will

determine the degree of influence the group has over its members.

o If any attempt is made to change any individual or some individuals which

deviates the group norms there is likelihood of the change attempt being
resisted by the group.


Thus, the management should consider the group as the basic unit of change.
Group interactions should be encouraged, it should be provided full information
by the management. The management should also explain the rationale of change
and try to convince that the interests of the group members would not be adversely
affected. Group dynamics also help in providing various training programmes for
accepting and implementing change.



* * * * *



54
Course Code: 39







Paper Code: H4010

M.B.A. ? H.R.M. IV SEMESTER

Paper: XVI : ORGANISATIONAL DEVELOPMENT AND

CHANGE

Author: Dr. K.A.S.P.Rama Raju
Reader in Commerce, P.G.Courses,
D.N.R.College, Bhimavaram, A.P.



Unit ? III CHANGE PROGRAMS

Lesson: 3

CHANGE PROCESS



INTRODUCTION:

Any organisational change whether introduced through a new structural design or
new technology or new training programme, basically attempts to make
employees change their behaviour. It is, because unless the behavioural pattern of
the members change the change will have a little impact on the effectiveness of
the organisation. Behavioural changes are not expected to be brought about
overnight. These are the most difficult and marathon exercises. A commonly
accepted model for bringing about changes in people was suggested by KURT
LEWIN in terms of three phase process-unfreezing, changing and refreezing.
Lewin`s model provides a useful vehicle for understanding change process in the
organisation.

1. Unfreezing: Unfreezing means that old ideas and attitudes are set aside to give
place to new ideas. It refers to making people aware that the present behaviour is
inappropriate, irrelevant, inadequate and hence unsuitable for changing demands
of the present situation. The management creates an atmosphere wherein the
employees have self motivation for innovative discourses and practices in the
organisation.

According to Edgar Schien the following elements are necessary during this
unfreezing phase:


The physical removal of the individuals, being changed, from their

accustomed routines, sources of information and social relationships.

The undermining and destruction of social support.



55
Demeaning and humiliating experience to help individuals, being changed, to

see their old attitudes or behaviour as unworthy and think to be motivated to
change.

The consistent linking of reward with willingness to change and of

punishment with unwillingness to change.


Unfreezing, thus, involves discarding the orthodox and conventional methods and
introducing dynamic behaviour, most appropriate to the situation. By discarding
the primitive way of doing things. People are made to accept new alternatives.


2. Changing: Unlike unfreezing changing is not uprooting of the old ideas, rather
the old ideas are gradually replaced by the new ideas and practices. It is the phase
where new learning occurs. In order to change, it is not enough to sense that the
current behaviour is inadequate. The necessary requirement is that various
alternatives of behaviour must be made available in order to fill the vacuum
created by unfreezing phase. During the phase of changing, individuals learn to
behave in new ways, the individuals are provided with alternatives out of which to
choose the best one. KELMAN explains this changing phase in terms of the
following elements.

o Compliance: Compliance occurs when individuals are forced to change

either by rewards or by punishment.

o Internalisation: Internalisation occurs when individuals are forced to

encounter a situation and calls for new behaviour.

o Identification: Identification occurs when individuals recognize one among

various models provided in the environment that is most suitable to their
personality.



3. Refreezing: Refreezing is on the job practice. The old ideas are totally
discarded and new ideas are fully accepted. It is reinforced attitudes, skills and
knowledge. During this phase individuals internalise the new beliefs, feelings and
behaviour learned in the changing phase. He practices and experiments with the
new method of behaviour and sees that it effectively blends with his other
behavioural attitudes. It is very important for the manager concerned to visualize
that the new behaviour is not extinguished soon.

Ferster and Skinner have in this connection introduced the main reinforcement
schedules namely-continuous and intermittent reinforcements. Under the
continuous reinforcement, individuals learn the new behaviour within no time.
But one major risk of this reinforcement is that the new behaviour ceases very
soon. Intermittent reinforcement on the other hand, consumes a long span of time
but it has the greatest advantage of ensuring a long lasting change.


CHANGE AGENTS:


For planning the change, every organisation requires change agents. These are

the persons who initiate and manage change in the organisations. Change agents



56
are catalysts to manage changes. They are specialised in the theory and practices
of managing changes. The change agents may also help management recognise
and define the problem or the need for the change and may be involved in
generating and evaluating potential plans of action. The change agent may be a
member of the organisation or an outsider such as a consultant. An internal
change agent is likely to know the organisation`s people, tasks and political
situations, which may be very useful in interpreting data and understanding the
system. They have ability, knowledge and experience of directing people for
changes and development. But sometimes, an insider may be too close to the
situation to view it objectively. In addition, a regular employee will have to be
removed from his regular duties to concentrate on the transition. The external
change agent is in a position to view the organisation meant for change from a
total systems view point and is much less affected by the organisational norms.
He is likely to have easy access to the top management.

Since it is the top management on whose initiative the consultant is engaged. Top
managers engage consultants with specialised knowledge in the theory and
methods of change. Consultant change agents can offer a more objective
perspective than insiders can. But experts outside the organisation are not well
versed with the internal environment. So they are not in a position to manage the
changes effectively. External experts are not well aware of the desires and
attitudes of the employees, therefore the changes suggested by them are resisted
by the employees.



Unless the change agent is a member of top management, his power to bring

about change must emerge from some source other than the hierarchical position
and legitimate authority within the organisation. Although, the support of top
management is essential, it is not enough MICHAEL BEER prescribes five
sources of power for the change agent:
High status given by the members of the client organisation, based on their

perception that the change agent is similar to them in behaviour, language,
values etc.

Trust in the change agent based on his consistent handling of information and

maintaining a proper role in the organisation.

Expertise in the practice of organisational change.
Established credibility based on experience with previous clients of previous

projects with the client organisation.

Dissatisfied constituencies inside the organisation who see the change agents

as the best opportunity to change the organisation to meet their needs.



CHANGE OPTIONS:


What can a change agent change? There are four subject matters which can be

changed by the change agents. They are structure, technology, people and
physical setting. These are discussed in detail as follows:




57


(i) Structure: An organisational structure is defined by how the tasks are

formally divided, grouped and coordinated. Changing conditions require
structural changes. As a result, the change agent might need to modify the
organisation`s structure. Attitudinal change, change in plant layout and new
techniques can succeed only when the structure is changed according to the
change in the environment. Authority, responsibility, functions and performance
are changed according to the needs of the change. The matrix design is used for
absorbing the changes. Change agents can alter one or more of the key elements
in an organisation`s design or they can introduce major modifications in the actual
structural design. They might consider redesigning jobs or work schedules.
Another option can be to modify the organisation`s compensation system.



(ii) Technology: Under change management, technological change is also

done. The introduction of new equipment and work process is technological
innovation. Automation and computerisation have become common change
processes at the beginning of the twenty first century. Change agents introduce
new tools and techniques. Efficient handling of equipment and machines is
invented by technology. Computerisation has changed the work culture in the
new century. Thus, major technological changes involve the introduction of new
equipment, tools or methods, automation or computerisation.



(iii) People: This category involves changing the attitudes and behaviour of

organisational members through processes of communication, decision making
and problem solving. The change agents help the individuals and groups within
the organisation to work more effectively together. They inspire the employees to
change to adapt to the environment. The changes can give fruitful results if the
employees have developed a positive attitude and behaviour to make the changes
a success. Unless the employees accept the change, the change agents cannot
ensure the process of change. If there is a lack of agreement with the employees,
stress or tension occurs.



(iv) Physical Setting: Change agents decide space configurations interior

design, equipment placement, plan layout and tool arrangement under physical
setting. Management thoughtfully considers work demands, formal interaction
requirements, and social needs while making such changes. The changes made in
these settings are helpful for the organisational development. The physical setting
considers information, flow process, flow and outcome. The smoothness of the
flow increases the effectiveness of changes. Working conditions are changed,
designed and redesigned to mobilise effectiveness of the settings.



The basic objectives of change agents are, thus, to increase effectiveness,

individual performance and satisfaction irrespective of whether the change agents
are internal or external. The change agents play the role of a researcher,
counseller, case analyst and professionally qualified friend. Under the direction of
the change agents, the organisation implements the change, through Lewin`s
unfreeze, change and refreeze process. In the final step, evaluation and control,



58
the change agent and the top management group assess the degree to which the
change is having the desired effect. That is, progress towards the goals of the
change is measured, if necessary, appropriate changes are made.


ACTION RESEARCH:


Action research is another view of the organisational change process. It is an

organisational change process that is based on a research model specifically one
that contributes towards the betterment of the sponsoring organisation and
contributes to the advancement of knowledge of organisations in general. In
Action Research, the change agent is usually an outside person, who is involved in
the total change process, from diagnosis to evaluation. This person usually
contracts with the sponsoring organisation to engage in organisational research,
whereas the typical change agent is called in to make a specific change. Action
Research provides a scientific methodology for managing planned change. The
process of Action Research consists of five steps as explained below:



(i) Diagnosis: In the first step, the change agent gathers information about

problems, anxieties and required changes from members of the organisation. The
information is gathered by asking questions, interviews, review of records and
listening to employees. The diagnosis will help the agent in finding out what is
actually ailing the organisation.



(ii) Analysis: The information gathered in the first step is analysed in this step.

The type consistency and patterns of problems are studied. This information is
analysed into primary concerns, problem areas and possible actions.




(iii) Feedback: In this step, the change agent will share will the employees

what has been found in steps one and two. Thus, the employees will be actively
involved in any change programme. In determining what the problem is and how
to create the solution. The change agent, in participation with the employees,
develop action plans for bringing about any needed change.




(iv) Action: Action plans decided in the previous step are set in motion in this

step. The employees and the change agent carry out the specific actions to correct
the problems that have been identified.



(iv) Evaluation: As action research provides a scientific methodology for

managing the planned change, in the final step, the change agent evaluates the
effectiveness of the action plans. Using the initial data as the benchmark, any
subsequent changes can be compared and evaluated.






Action research is a very important change process. It is a problem focused

method. The change agent looks for problems and on the basis of the problems he



59
decides the change action. Since employees are actively involved in the change
process, the resistance to change is reduced. The evaluation of the organisation
and any changes taken to improve it over a period of change can provide valuable
information to both the organisation and the researcher.


HUMAN REACTIONS TO CHANGE:


Human reaction to a change does not always depend upon logic. Generally,

depends upon how a change will affect one`s needs and satisfaction in the
organisation. We can say that attitudes are very important in determining the
resistance to change because an employee`s perception of the likely impact of
change will depend upon his attitudes. Attitudes, as we all know, are not always a
matter of logic, but are entirely different from it. Therefore, there is a very close
relationship between change and human attitudes. The reactions to change may
occur in any of the following forms:



1. Acceptance: All changes are not necessarily resisted. If an employee

perceives that a change is likely to affect him favourably, he accepts it. For
example, if the workers have to stand before a machine throughout the shift, they
will like the introduction of a new machine, which will allow them to sit while
working. Thus, resistance to change is off set by their desire to have better
working conditions. Sometimes, people themselves want change and new
experiences as they are fed up with the monotonous old practices and procedures.



2. Resistance: Whenever a person thinks that the effects of change are likely

to be unfavourable to him, even if they are really not so, he will try to protect
himself by resisting the change. Resistance means opposition to change. Human
resistance to change may be in any of the following forms:

a) Hostility or aggression is the immediate reaction of an individual to change.

The hostility can be expressed verbally, but hostility and aggression combined
is of a more intense character and can also take physical forms.

b) The individual may develop apathy towards his work. As the interest of the

individual is in the interest, the result will be spoilage of materials, idling of
time and decline in performance.

c) Absenteeism and tardiness and also signs of resistance.
d) Development of anxiety and tension in the employees is the sure sign of

resistance. As a result of this, the employee finds himself uncomfortable,
shaky and tensed up on this job.

e) At the group level, additional signs of resistance are there. Showdowns are

strikes are usual symptoms of group resistance. Another strategy of group
resistance is restriction of output .


Opposition to change may be logical and justified in some cases. Sometimes
people do not resist change but they oppose the changing agent or the mode of
implementing change.



60

3. Indifference: Acceptance and resistance to change are two extreme reactions.
Sometimes, the employees fail to realise the impact of change or some people feel
that they will not be affected by the change. In both of these cases, they will
remain indifferent to change.

4. Forced acceptance: Sometimes people resist the change in the initial stages,
but if change forces are stronger than the resistance forces, people have to accept
the change. This is called forced acceptance or the situation where people are
forced to accept the change.

There is nothing unusual about the above reactions. Any change likely to
destabilise a person`s adjusting alignment with the environment KEITH DAVIS
observed that.


People develop an established set of relations with their environment. They learn
how to deal with each other, how to perform their jobs and what to do expect next.
Equilibrium exists, individuals are adjusted when change comes along, it requires
individuals to make new adjustments as the organisation seeks a new equilibrium.
When employees are unable to make adequate adjustments to changes which
occur, the organisation is in a state of imbalance of disequilibrium.
Management`s general human relations objective regarding change is to restore
and maintain the group equilibrium and personal adjustment which change
upsets.

To conclude we can say that change may be forced on an organisation or an
organisation may change in response to the environment or an internal need.
Whatever the case changes must be properly planned and members should be
properly prepared to accept these changes enthusiastically, because the real world
is turbulent, requiring organisations and their members to undergo dynamic
change if they are to perform at competitive levels.



* * * * *



61
Course Code: 39







Paper Code: H4010

M.B.A. ? H.R.M. IV SEMESTER

Paper: XVI : ORGANISATIONAL DEVELOPMENT AND

CHANGE

Author: Dr. K.A.S.P.Rama Raju
Reader in Commerce, P.G.Courses,
D.N.R.College, Bhimavaram, A.P.



Unit ? III CHANGE PROGRAMS

Lesson: 4

JOB REDESIGN: QUALITY OF WORK LIFE AND JOB ENRICHMENT



INTRODUCTION:
Many difficulties developed from classical job design. There was excessive
division of labor and overdependence on rules, procedures, and hierarchy.
Workers became socially isolated from their coworkers because their highly
specialized jobs weakened their community of interest in the whole product.
Deskilled workers lost pride in their work and became bored with their jobs.
Higher-order (social and growth) needs were left unsatisfied. The result was
higher turnover and absenteeism, declines in quality, and alienated workers.
Conflict often arose as workers sought to improve their conditions and
organizations failed to respond appropriately.


Management`s response to this situation was a tighten controls, to increase
supervision, and to organize more rigidly. Although these actions were intended
to improve the situation, they only made it worse because they further
dehumanized the work. Management made a common error by treating the
symptoms rather than identifying and attacking the causes of the problems. The
real cause was that in many instances the job itself simply was not satisfying. The
odd condition developed for some employees that the more they worked, the less
they were satisfied. Hence the desire to work declined.

A factor contributing to the problem was that the workers themselves were
changing. They became more educated, more affluent (partly because of the
effectiveness of classical job design), and more independent. They began
reaching for higher-order needs, something more than merely earning their bread.
Perhaps classical design can achieve great gains for a poor, uneducated, often
illiterate work force that lacks skills, but it is less appropriate for the new work
force in educated and industrialized nations. Design of jobs and organizations had
failed to keep up with widespread changes in worker aspirations and attitudes.



62
Employers now had two reasons for redesigning jobs and organizations for a
better QWL.
Classical design originally gave inadequate attention to human needs.
The needs and aspirations of workers themselves were changing.


OPTIONS AVAILABLE: Several options for solving these problems were
available to management:

Leave the job as it is, and employ only workers who like the rigid environment

and routine specialization of classical design. Not all workers object to this
form of work; some may even relish it because of the security and task support
that it provides.

Leave the job as it is, but pay workers more so that they will accept the

situation better. Since classical design usually produces economic gain,
management can afford to share the gain with workers.

Mechanize and automate routine jobs so that the workers who are unhappy

with the specialized job are no longer needed. Let industrial robots do the
routine work.

Redesign jobs to have the attributes desired by people, and design

organizations to have the environment desired by people. This approach seeks
to improve QWL.


Although any of the four options might be useful in certain situations, the one that
has captured the interest of both employers and employees is the last option. There
is a need to give workers more of a challenge, more of a whole task, more
opportunity to use their ideas.


Close attention to QWL provides a more humanized work environment. It
attempts to serve the higher-order needs of workers as well as their more basic
needs. It seeks to employ the higher skills of workers and to provide an
environment that encourages them to improve their skills. The idea is that human
resources should be developed and not simply used. Further, the work should not
have excessively negative conditions. It should not put workers under undue
stress. It should not damage or degrade their humanness. It should not be
threatening or unduly dangerous. Finally, it should contribute to, or at least leave
unimpaired, worker`s abilities to perform in other life roles, such as citizen,
spouse, and parent. That is, work should contribute to general social
advancement.


QUALITY OF WORK LIFE:


The term Quality of Work Life aims at changing the entire organisational

climate by humanising work, individualising organisations and changing the
structural and managerial systems. It takes into consideration the socio-
psychological needs of the employees. It seeks to create such a culture of work



63
commitment in the organisations which will ensure higher productivity and
greater job satisfaction for the employees.



Quality of work life refers to the favourableness or unfourableness of the job

environment of an organisation for its employees. It is generic term which covers
a person`s feelings about every dimension of his work e.g. economic incentives
and rewards, job security, working conditions, organisational and interpersonal
relationships etc. The term QWL has different meanings for different people. A
few important definitions of QWL are as follows:



According to Harrison: QWL is the degree to which work in an

organisation contributes to material and psychological well being of its members.






According to D.S.Cohan QWL is a process of joint decision making,

collaborations and building mutual respect between management and employees.






According to the American Society of Training and Development QWL is a

process of work organisation which enables its members at all levels to participate
actively and effectively in shaping the organisations` environment, methods and
outcomes. It is a value based process which is aimed towards meeting the twin
goals of enhanced effectiveness of the organisation and improved quality of life at
work for the employees.



QWL influences the productivity of the employees. Researchers have proved

that good QWL leads to psychologically and physically healthier employees with
positive feelings.



To summarise, QWL is the degree to which employees of an organisation are

able to satisfy their personal needs through experience in the organisation. It main
aim is to create a work environment where employees work in cooperation with
each other and contribute to organisational objectives.


SCOPE OF QWL:


Quality of work life is a multi dimensional aspect. The workers expect the

following needs to be fulfilled by the organisations:

1. Compensation: The reward for work should be above a minimum standard for
life and should also be equitable. There should be a just an equitable balance
between the effort and the reward.




64
2. Health and Safety: The working environment should be free from all hazards
detrimental to the health and safety of the employees. The main elements of a
good physical environment for work should be reasonable hours of work,
cleanliness, pollution free atmosphere, risk free work etc.


3. Job Security: The organisation should offer security of employment.
Employees should not have to work under a constant concern for their future
stability of work and income.

4. Job Design: The design of jobs should be such which is capable of meeting the
needs of the organisation for production and the individual for satisfying and
interesting work. Quality of work life can be improved if the job allows sufficient
autonomy and control, provides timely feed back on performance and uses a wide
range of skills.

5. Social Integration: The workers should be able to feel a sense of identity with
the organisation and develop a feeling of self esteem. This includes the
elimination of discrimination and individualism, whilst encouraging teams and
social groups to form.


6. Social Relevance of Work: Work should not only be a source of material and
psychological satisfaction, but also a means of social welfare. An organisation
that has greater concern for social causes can improve the quality of work life.

7. Scope for Better Career Opportunities: The management should provide
facilities to the employees for improving their skills both academic and otherwise.
The management should always think of utilising human resources for expansion
and development of the organisations.

PRINCIPLES OF QWL:


According to N.Q.Herrick and M.Maccoby there are four basic principles,

which will humanise work and improve the QWL:



1. The Principle of Security: Quality of work cannot be improved until

employees are relieved of the anxiety, fear and loss of future employment. The
working conditions must be safe and fear of economic want should be eliminated.
Job security and safety against occupational hazards is an essential precondition of
humanisation of work.



3. The Principle of Equity: There should be a direct and positive relation

between effort and reward. All types of discrimination between people doing



65
similar work and with same level of performance must be eliminated. Equity also
requires sharing the profits of the organisation.



3. The Principle of individualism: Employees differ in terms of their

attitudes, skills, potentials etc. Therefore, every individual should be provided the
opportunities for development of his personality and potential. Humanisation of
work requires that employees are able to decide their own pace of activities and
design of work operations.



4. The Principle of Democracy: This means greater authority and

responsibility to employees. Meaningful participation in decision making process
improves the quality of work life.

TECHNIQUES FOR IMPROVING QWL:


The quality of work life movement is of recent origin and has a long way to

go. Individual as well as organised efforts are required to improve the quality of
work life for millions of workers in the country. Some of the techniques used to
improve the QWL are as given below:



1. Flexible Work Schedules: There should be flexibility in the work

schedules of the employees. Alternative work schedules for the employees can be
flexi time, staggered hours, compressed work week etc. Flexi time is a system of
flexible working hours, staggered hours schedule means that different groups of
employees begin and end work a different intervals. Compressed work week
involves longer hours of work per day for fewer days per week.



2. Job Redesign: Job redesigning or job enrichment improves the quality of

the jobs. It attempts to provide a person with exciting, interesting, stimulating and
challenging work. It helps to satisfy the higher level needs of the employees.




3. Opportunity for Development: Career development is very important for

ambitious and achievement oriented employees. If the employees are provided
with opportunities for their advancement and growth, they will be highly
motivated and their commitment to the organisation will increase.



4. Autonomous Work Groups: Autonomous work groups are also called self

managed work teams. In such groups the employees are given freedom of
decision making. They are themselves responsible for planning, organising and
controlling the activities of their groups. The groups are also responsible for their
success or failures.




66


5. Employee's Participation in Management: People in the organisation

should be allowed to participate in the management decisions affecting their lives.
Quality circles, Management by objectives, suggestion system and other forms of
employee`s participation in management help to improve the QWL.




6. Job Security: Employees want stability of employment. Adequate job

security provided to the employees will improve the QWL to a large extent.






7. Equitable Justice: The principle of equitable administrative justice should

be applied in disciplinary actions, grievance procedures, promotions, transfers,
work assignments etc. Partiality and biasness at any stage can discourage the
workers and affect the QWL.

JOB ENRICHMENT:


Fredrick Herzberg gave greater emphasis on job enrichment in his two factor

theory. He assumed that in order to motivate personnel, the job must be designed
to provide opportunities for achievement, recognition, responsibility, advancement
and growth. This technique entails enriching the job so that these factors are
included.




It simply means, adding a few more motivators to job to make it more

rewarding. A job is enriched when the nature of the job is made more exciting,
challenging and creative or gives the job holder more decision making, planning
and controlling powers.



According to Beatty and Schneider, Job enrichment is a motivational

technique which emphasizes the need for challenging and interesting and
interesting work. It suggests that jobs be redesigned so that intrinsic satisfaction is
derived from doing the job. In its best applications, it leads to a vertically
enhanced job by adding functions from other organisational levels, making it
contain more variety and challenge and offer autonomy and pride to the
employee.



Job enrichment is thus, an important practice in meeting whole man needs.

It represents a new and popular non-monetary motivational technique. It applies
to improvement of job in such a way that it has more motivators than before and at
the same time maintaining the degree of maintenance factors.


CHARACTERISTICS OF AN ENRICHED JOB:


According to Herzberg, an enriched job has eight characteristics. These

characteristics are as explained below:




67


1. Direct Feed Back: There should be a direct feed back of the employees

performance. Employees should be able to get immediate knowledge of the
results they are achieving. The job evaluation can be inbuilt in the job or provided
by a supervisor.




2. Client Relationships: When an employee serves a client or customer

directly, he has an enriched job. The client can be outside the organisation or
inside.



3. New Learning: An enriched job allows the employee to learn more. He

should feel that he is growing mentally. An employee, who is doing some
intellectual work, is having an enriched job.



4. Scheduling Own Work: Freedom to schedule one`s own work contributes

to enrichment. Deciding when to tackle which assignment is an example of self
scheduling. Employees who perform creative work have more opportunity to
schedule their assignments as compared to employees performing routine jobs.



5. Unique Experience: An enriched job has some unique qualities or features

as compared to the other jobs.




6. Control Over Resources: One approach to job enrichment is that each

employee should have control over his own resources and expenses.




7. Direct Communication Authority: An employee holding the enriched job

will be allowed to communicate directly with people who used his output.



8. Personal Accountability: An enriched job holds the incumbent responsible

for the results. He receives praise for good work and blame for poor work. From
the above features of job enrichment we conclude that the management should
take the following measures to enrich the job:

a) Give sufficient freedom to the employees in deciding about work methods,

pace, sequence etc.

b) Increase responsibility
c) Encourage participation
d) Provide feedback to the employees.
e) Make the personnel understand how tasks contribute to a finished product of

the enterprise.

f) Give adequate benefits to the employees. Management should provide

extrinsic and intrinsic rewards to the employees depending upon their
motivational patterns.



68
g) Management should provide adequate welfare measures to the employees.

People should perceive that management is sincere and caring about them.


ADVANTAGES OF JOB ENRICHMENT:


Job enrichment is a very useful technique to motivate employees. The

advantages of job enrichment are as follows:
a) In the routine jobs, the employees find their jobs very boring and monotonous.

The number of such employees is generally considerable. The frustration of
these employees can be removed by making the job interesting with the job
enrichment.

b) Job enrichment helps in reducing the rates of employee turnover and

absenteeism.

c) Job enrichment motivates the employees intrinsically by giving them

opportunities for growth advancement and self realisation.

d) Task enforcement is made easy with the help of job enrichment and the skills

of workers are increased.

e) The enriched jobs give more job satisfaction to the employees.
f) Job enrichment is advantageous to the organisation as there is qualitative as

well as quantitative improvement in output and there is higher satisfaction of
the workers.

g) Employees tend to be more creative when they work in an enriching context of

complex and challenging jobs.


LIMITATIONS OF JOB ENRICHMENT:


As job enrichment is based on the two factor theory given by Herzberg, the

same criticism of the two factor theory applies to it also. Some problems arise
when job enrichment is actually applied in practice. Moreover, it does not offer
the results as anticipated. The limitations of job enrichment are as follows:
1. The first basic problem is that majority of workers do not want the type of

changes which are introduced by job enrichment. They do not really want
challenging jobs, as the basic human tendency is to shirk responsibility.
Workers put wages and job security above all.

2. Job enrichment is basically limited to the unskilled and semiskilled jobs. Jobs

of highly skilled professionals already contain many challenging elements. As
such there is no scope of applying job enrichment in their cases.

3. Technology may not permit the enrichment of all the jobs. With specialised

machinery, tasks and processes, it may not be possible to make the jobs very
meaningful.

4. Job enrichment is a highly costly affair. In most of the cases, the cost

involved is more than the gains in productivity.

5. Sometimes, the employees may prefer to have job enrichment but may not

have the necessary capabilities and qualifications to meet the new challenges.

6. In the short run, job enrichment may have negative effects. After an increase

in job responsibility, it is not unusual for organisations to experience a drop in
productivity, as workers become accustomed to the new systems. In the long
run, however, there will be increased productivity.



69
7. People being bored in their jobs, it is likely, therefore, that after a period of

time they will become bored in their enriched jobs also. Thus, enrichment
may become static after some time and additional enrichment will be required.

8. There is, generally, a tendency on the part of the management to impose job

enrichment on workers rather than applying it with their consent; it will have a
negative impact on the employees.

9. The top managers and personnel, generally apply, their own scale of values of

challenge and accomplishment to other people`s personalities this evokes
more resistance from workers.



Despite these limitations, job enrichment is a valuable motivational technique, but
management must use it selectively and give proper recognition to the complex
human and situational variables. Robert N.Ford and many others have gone on
to generalise that job enrichment is the solution to all behavioral problems facing
modern management. Though, this type of generalisation does not seem entirely
justified, but still the importance of job enrichment as an effective motivational
technique cannot be ruled out.

Those planning job enrichment programs need to ask such questions as the
following about employee needs and attitudes:
Can the employee tolerate (and welcome) responsibility?
How strong are the employee`s growth and achievement needs?

What is the employee`s attitude and experience regarding group work?

Can the employee intellectually and emotionally handle more complexity?

How strong are the employee`s drives for security and stability?

Will the employees view the job changes as significant enough to justify the

costs?

Can a job be over enriched?

There are many contingency elements to consider when exploring the possibility
of job enrichment as a QWL approach. Both employee attitudes and their
capabilities to handle enriched tasks are crucial. Although it is tempting to
consider job enrichment as good, it is more consistent with human values to
recognize and respect individual differences among employees.


* * * * *



70
Course Code: 39







Paper Code: H4010

M.B.A. ? H.R.M. IV SEMESTER

Paper: XVI : ORGANISATIONAL DEVELOPMENT AND

CHANGE

Author: Dr. K.A.S.P.Rama Raju
Reader in Commerce, P.G.Courses,
D.N.R.College, Bhimavaram, A.P.



Unit ? III CHANGE PROGRAMS

Lesson: 5

SOCIO-TECHNICAL SYSTEMS



INTRODUCTION:
As technology increases, specialization also tends to increase. As work gets
broken into smaller parts, integration is required to put them back together again
to make a whole product, a whole organization, and a whole society. This
integration is much more difficult in a high-technology society than in a low-
technology one, because high technology tends to make a system more complex
and make its parts more interdependent.

The flow of technology is not a continuous stream but rather a series of bursts of
new developments. As a consequence, the price that technology requires for the
progress it brings is that people must adapt to unexpected changes. The
technological revolution produces, perhaps with a time lag, an associated social
revolution. Technology is moving so fast that it is creating social problems long
before society is able to develop solutions. At the workplace new forms of
organization, new ways of supervision, new reward structures, and a host of other
changes are being required in order to absorb technology. For adjustment to
technology what is needed is more mobility-economic as well as social,
occupational as well as geographic, managerial as well as employee.

TECHNOLOGY AND OCCUPATIONS:


As technology changes, jobs also change. Technology tends to require more

professional, scientific, and other white-collar workers to keep the system
operating. In most advanced installations the ratio of white-collar to blue-collar
employees has increased. Since people by nature are not efficient machines, it
seems appropriate to replace routine jobs with automated systems that can do the
job faster and better, thus releasing people to do more advanced work, which
usually is white-collar work. Technology generally upgrades the skill and
intellectual requirements of the total work force.



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INFORMATION TECHNOLOGY:
A major tool intended for improving white-collar productivity and
communications is information technology. This includes the use of computers,
software, and telecommunications for a wide variety of applications. Customer
orders can be filled faster, budget analyses can be performed more accurately,
complex-manufacturing processes can be controlled with less variations, and
orders to suppliers can be transmitted rapidly.



Benetton, the international marketer of colorful sportswear, uses computers to

create electronic links between its manufacturing facilities, its sales people, its
warehouse workers, and its retailers. As a consequence, it has dramatically
reduced the time it takes to develop new products while increasing the speed at
which it can fill customer orders.



Information technology offers tremendous potential benefits to organizations.

It can reduce human labor in automated processes, bring vast amounts of detailed
information to bear on decisions, transfer data with great speeds among networked
users, and facilitate the tracking of product flows (such as Federal Express does
with the package it transport). It has been used to create electronic mail systems,
expedite brainstorming sessions, and allow employees around the world to hold
electronic conferences or work as a team on design projects. All these
applications require its human users to adapt in new ways-to not working face-to-
face with others, to sitting at a keyboard and screen for long periods, and to using
their minds rather than direct contact with their hands.




The modern need for higher skills means that a premium is put upon education

in the labor market. More education and training become necessary in order to
avoid a surplus of underdeveloped people and a shortage of highly developed
people.

MULTIPROFESSIONAL EMPLOYEES:


The need for an educated work force with high-level skills has increased the

demand for multiprofessional employees. These are people trained in two or more
professions or intellectual disciplines, such as engineering and law or accounting
and science. Since these people are competent in more one discipline, they are
able to perform some of the integrative work required by modern work systems.
The demand is especially high for multiprofessional managers who are qualified
in some technical specialty in addition to management so that they can more
easily manage technical work.






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A KNOWLEDGE SOCIETY:
The steady advancement of technology has led to the development of a knowledge
society in the United States. A knowledge society is one in which the use of
knowledge and information dominates work and employs the largest proportion of
the labor force. The distinguishing feature of a knowledge society is that it
emphasizes intellectual work more than manual work-the mind more than the
hands. Examples of knowledge jobs are those of news editors, accountants,
computer programmers, and teachers. Even the surgeon, who must use a delicate
manual skill, is primarily working from a knowledge or intellectual base.




Intellectual work requires a different quality of motivation than manual work.

Normally a person can be persuaded by the use of authority to dig a ditch. The
threat of penalty usually is enough to get results. However, it takes more
sophisticated motivation to lead a person to do research or to write creative
advertising copy. Intellectual work requires internal motivation and a more
positive motivational environment. If employers of knowledge workers fail to
provide this type of environment, their employees will work less effectively.


WORK SYSTEMS AND PEOPLE:


There are two basic ways in which work is organized. The first relates to the

flow of authority and is known as organizational structure of merely organization,
as discussed earlier. The second relates to the flow of work itself from one
operation to another and is known as procedure. Other names are method,
system, and work flow. People usually recognize the human side or
organizational structure because of the superior-subordinate relationship that it
establishes, but more often than not they ignore or overlook the human side of
work flow. They see work flow as an engineering factor that is separate from
human factors. In the usual case, however, work flow has many behavioral effects
because it sets people in interaction as they perform their work.


Initiation of Action:


One important point about a work system is that it determines who will

initiate an activity and who will receive it. At each step in the flow of work
one person sends material to the next person who will work on it. Along the way,
staff experts give instructions. This process of sending work and/or instructions to
another is an initiation of action on another person. Receivers of an initiation
often feel psychologically inferior, because they may receive it from someone
who just shouldn`t be pushing them around.




Further problems tend to arise when an initiation affects sensitive areas such

as how much work employees do (as in time study) and their rates of pay (as in
job evaluation). In general we can conclude that initiations of action that place
job or personal pressures on a receiver tend to be trouble spots.




73
System Design for Better Teamwork:


Another point about procedure is that it requires people to work together as a

team. Teamwork can be engineered out of a work situation by means of layouts
and job assignments that separate people so that it is impractical for them to work
together, even though the work flow requires teamwork. In one instance two
interdependent employees were unnecessarily assigned to separate shifts, which
prevented them from coordinating their work. In another instance, one operator
fed parts to two separate lines that were in competition, and each line regularly
claimed that the operator favored the other.




Integration of the technology, structure, and human factors was needed to

create a productive system in the textile mill. When just one element is changed,
a mismatch is likely to emerge. Management needs to stay in close touch with the
workers to understand their needs and avoid making costly changes that have
negative side effects.


Communication Patterns:


It is well known that plant layout and work flow have much to do with the

opportunities that people have to talk with one another. In an insurance office, for
example, the layout of desks was such that people who needed to talk to
coordinate their work were separated by a broad aisle. Employees met the
problem by loudly calling across the aisle, but this eventually had to be stopped
because of the disturbance. The result was poor communication. In another
company, sewing machines were located so that talking was discouraged, but
management soon discovered that another layout that permitted talking led to
higher productivity. Apparently, talking relieved the monotony of routine work.


Alienation:


Alienation may result from poor design of socio-technical systems. Since

work systems are planned by someone other than the operators, often the
operators do not understand why the system operates the sway it does. In
addition, since the division of labor lets each operator perform only a small
portion of the total work to be done, jobs begin to lose their social significance
and appear meaningless. Workers no longer see where they fit in the scheme of
things; no longer do they see the value of their efforts. When these feelings
become substantial, an employee may develop alienation, which is a feeling of
powerlessness, lack of meaning, loneliness, disorientation, and lack of attachment
to the job, work group, or organization. When workers are performing an
insignificant task, frustrated by red tape, isolated from communication with
others, prevented from engaging in teamwork, and controlled by initiation of
action from others, then alienation is bound to develop.



The relationship of alienation to technology is only a general one. In some

instances mass production may be welcomed by employees because it reduces
their physical labor, improves working conditions, and provides them with new



74
equipment. In other instances even professional workers may find satisfaction in
formal work patterns.



The relationship between organizational formalization (standard practices, job

description, and policies) and alienation was explored in a study of both
professional and nonprofessional employees. Somewhat surprisingly, higher
formalization actual seemed to reduce alienation among the employees.
Apparently, increased rules at procedures decreased role ambiguity and increased
the employee`s level of organisational commitment. When alienation threatens to
become serious, management needs to take corrective action, but it should act
carefully, since alienation has may causes.


Effects of Work System:


The evidence is clear that work systems have a substantial effect on human

behavior. They do this by
1. Determining who initiates action on whom, and some of the conditions in

which the initiation occurs.

2. Influencing the degree to which the employees performing interdependent

activities can work together as a team.

3. Affecting the communication patterns of employees.
4. Creating possibilities for unnecessary procedures, generally called red tape
5. Providing tasks that seem insignificant and weak in power, thereby

contributing to alienation.


The general conclusion is that relationships among workers in a system can be just
as important as relationships of the work in that system. In the design of any
system it is folly to spend all one`s time planning work relationships but ignoring
worker relationships. The limitations and difficulties with job enrichment lead to
three conclusions. First, job enrichment and QWL programs generally are
desirable for both human and performance needs. They help both employees and
the firm. Second, there is a contingency relationship. QWL improvements work
letter in some situations than in others. A third conclusion is that QWL programs
bring costs as well as benefits, and both must be evaluated to determine the
desirability of a change. The key issue is how favorable the net benefits are.



With the many contingencies that exist in job enrichment, the best strategy is

to study the need for it carefully and then try it in the most appropriate places first.
As success is achieved, there can be a gradual move toward more applications.
The organization that suddenly becomes sold on job enrichment an d then takes a
blanket approach to it is likely to generate more problems than it can handle.

ENRICHED WORK SYSTEMS

The Socio-technical Model



75


The classical design of jobs was to construct them according to the

technological imperative, that so, to design them according to the needs of
technology and efficiency and give little attention to other criteria. Job
enrichment went a large step toward emphasizing the human (social) side by
exploring how jobs could be redesigned to make them more motivating and
satisfying. An even more comprehensive approach is to provide a careful balance
of the human imperative and the technological imperative. Work environments,
and the jobs within them, are required to fit people as well as technology. The
socio-technical systems approach considers not only how inputs are transformed
into outputs, but also how employees and the organization can develop
interpersonal and social relationships for mutual gain. Both technical and social
systems receive high priority, and they are simultaneously managed for the best
possible integration. This is a new set of values and a new way of thinking that
goes beyond the concern for a high quality of work life.



The basic assumptions of socio-technical systems include the following:

Employees are resources that can and should be developed.

Self-control and self-regulation by employees is desirable and possible.

Collaborative relationships are easiest when organizational levels and status

differences are minimized.

Related tasks should be grouped and individuals should be given multiple

tasks and broad responsibilities.

Employee input is invited, expected, and reinforced.

The organization and its jobs are subject to continual evaluation and change.

Socio-technically designed organizations seek to find a best fit among workers,
jobs, technology, and the environment. Accordingly, the best design will be
different to fit different arrangements of these variables. Since the design must fit
the present situation, socio-technical systems must be regularly readjusted among
the factors in order to maintain the best fit. Consequently, socio-technical
organizations often seem to be in a constant stage of change.

Two specific approaches to finding a better socio-technical fit are the use of
natural work teams and flexible work schedules, which are discussed next. Then
we will provide an overview of some major organizational experiments will
enriched work systems.


Natural Work Teams:


The next step above enriched jobs is to focus on work teams. When jobs have

been designed so that a person performs an entire sequence of tasks to make a
whole product or a subunit of it, then that person is performing a natural work
module. The work flows naturally from start to finish and gives an individual a
sense of skill variety, task identity, and task significance. In a similar manner
several employees may be arranged into a natural work team that performs an
entire unit of work with considerable autonomy. In this way employees whose



76
task requires them to work together are better able to learn one another`s needs
and to develop team work. Natural work teams even allow those who are
performing routine work to develop a greater feeling of task significance, because
they are attached to a larger team that performs a major task. It is surprising how
our desire to develop specialization often leads to separation of people who are
needed to make natural work teams.



Consider experience of a telephone company with its service-order

department. Originally the service representatives and typists who prepared
service orders were in separate areas of the office, and each took orders in rotation
as they were received. Then different teams of representatives were assigned their
own geographical region and a few typists were moved to be with them, working
only on their service orders. The employees now became a natural work team that
could cooperative in performing a whole task. The result was that orders typed on
time increased from 27 percent to between 90 and 100 percent, and service-order
accuracy exceeded the expected standard.




The next step above enriched jobs and natural work teams is enriched socio-

technical work systems in which a whole organization or a major portion of it is
built into a balanced human-technical system. The objective is to develop
complete employment enrichment. This requires changes of a major magnitude,
particularly in manufacturing that has been designed along specialized lines. The
entire production process may require reengineering in order to integrate human
needs, and layouts may require changes to permit teamwork. The fundamental
objective is to design a whole work system that serves the needs of people as well
as production requirements.


Flexible Work Schedules:


Flexible working time, also known as flexitime, or flextime, is an example

of employment enrichment. It gives workers more autonomy but in a manner
different from job enrichment. With flextime employees gain some latitude for
the control of their work environment ? a factor beyond the design of the job itself
? to fit his or her own lifestyle or to meet unusual needs, such as a visit to a
physician. The idea is that, regardless of starting and stopping times, employees
will work their full number of hours each day. Employees always work within the
restraints of the organization`s business hours, and if a job requires teamwork, all
employees on a team must flex their work together.




An office provides an example. The office is open from 7 A.M. to 7

P.M., and employees may work their eight hours anytime during that period. One
employee is an early riser and prefer to arrive at work at 7 A.M., leaving at 3.30
P.M. in order to shop or engage in sports. Another employee is a late riser and
prefers to come to work at 10 A.M., leaving at 6.30 P.M. Another employee
arranges her work period to fit a commuter train schedule. Still another employee
prefers to take two hours for lunch and occasional shopping. Each employee sets



77
a schedule to fit personal needs. A certain percentage of workers must be at the
office for certain core hours in order to meet the public, but otherwise their
schedule is relatively free.




An advantage to the employer is that tardiness is eliminated, since the

employee works a full number of hours regardless of arrival time. Since
employees are able to schedule outside activities such as appointments during
their working day, they tend to have fewer one-day absences for these purpose.
Perhaps the main benefit is that greater autonomy leads to greater job satisfaction,
and sometimes productivity improves as well.



* * * * *

UNIT IV LESSON 1

INTRODUCTION TO ORGANISATION DEVELOPMENT


Learning objectives


1. To define the concept of organization Development
2. To study the history of organization development
3. To analyse the characteristics of organization OD


Definition





Organization development is an effort (1) planned, (2) organizationwide, and

(3) managed from the top, to (4) increase organization effectiveness and health

through (5) planned interventions in the organization`s processes, using behavioral-

science knowledge ? Richard Beckhand





Organization development (OD) is a response to change, a complex

educational strategy intended to change the beliefs, attitudes, values, and structure of

organizations so that they can better adapt to new technologies, markets and

challenges, and the dizzying rate of change itself. ? Warren H. Benmis





Organization renewal is the process of initiating, creating and confronting

needed changes so as to make it possible for organizations to become or remain

viable, to adapt to new conditions, to solve problems, to learn from experiences, and

to move toward greater organizational maturity.





78


OD can be defined as a planned and sustained effort to apply behavioral

science for system improvement, using reflexive, self-analytic methods. ?Richard

schmuch & Milles





Organization development is a process of planned change ? change of and

organization`s culture from one which avoids and examination of social processes

(especially decision making, planning, and communication) to one which

institutionalizes and legitimizes this examinations. ?Warner Burke et al





In the behavioral science, organization development is a long-range effort to

improve an organization`s problem-solving and renewal processes, particularly

through a more effective and collaborative management of organization culture-with

special emphasis on the culture of formal work teams-with the assistance a change

agent, or catalyst, and the use of the theory and technology of applied behavioral

science including action research. ? Wendell L.french & cecil H. Bell.





Organization development (OD) is a prescription for a process of planned

change in organizations in which the key prescriptive elements relate to (1) the nature

of the effort or program (it is a long-range, planned, systemwide process); (2) the

nature of the change activities (they utilize behavioral science interventions of an

educational, reflexive, self-examining, learn-to-do it-yourself nature); (3) the targets

of the change activities (they are directed toward the human and social processes of

organizations, specifically individuals` beliefs, attitudes, and values, the culture and

processes of work groups-viewed as basic building blocks of the organization (4)

desired outcomes of the change active-ities (the goals are needed changes in the target

of the interventions that cause the organization to be better able to adapt, cope, solve

its problems, and renew itself). Organization development thus represents a unique

strategy for system change, a strategy largely based in the theory and research of the

behavioural sciences, and a strategy having a substantial prescriptive character.





There are eight characteristics of organization development interventions from

more traditional interventions:



79
1.

An emphasis, although not exclusively so, on group and organizational

processes in contrast to substantive content.

2.

An emphasis on the work team as the key unit for learning more effective

modes of organizational behavior.

3.

An emphasis on the collaborative management of work-team culture.

4.

An emphasis on the management of the culture of the total system.

5.

Attention to the management of system ramifications.

6.

The use of the action research model.

7.

The use of a behavioral scientist-change agent, sometimes referred to as a

catalyst or facilitator.

8.

A view of the change effort as an ongoing process.

Another characteristic, number9, a primary emphasis on human and social

relationships, does not necessarily differentiate OD from other change efforts, but

it is nevertheless an important feature.9



Emerging concept: Organization Transformation (OT)



Over the years the practice of OD has evolved and matured, clarifying its

values, theories, methods, and interventions, as well as adding new values, theories,

and so forth. These paradigm-shifting changes were referred to as organization

transformation or Organizational Transformation. Some authors believe OT is an

extension of OD; others believe OT represents a new discipline in its own right. It is

too early to categorize organization transformation; for now, we see it as an extension

of OD. Some forces leading to the emergence of OT can be identified.



Organization transformations can occur in response to or in anticipation of

major changes in the organization`s environment or technology. In addition, these

changes are often associated with significant alterations in the firm`s business

strategy, which, in turn, may require modifying corporate culture as well as internal

structures and processes to support the new direction. Such fundamental change

entails a new paradigm for organizing and managing organizations. It involves

qualitatively different ways of perceiving, thinking, and behaving in organizations







80
HISTORY OF ORGANIZATION DEVELOPMENT





Systematic organization development activities have a recent history and, to

use the analogy of a mangrove tree, have at least four important trunk stems. One

trunk stem consists of innovations in applying laboratory training insights to complex

organizations. A second major stem is survey research and feedback methodology.

Both stems are intertwined with a third, the emergence of action research. The fourth

stem is-the emergence of the (Tavistock) sociotechnical and socioclinical approaches.

The key actors in these stems interact with each other and are influenced by

experiences and concepts from many fields.







The Laboratory Training Stem



Laboratory training, essentially unstructured small-group situations in which

participants learn from their own actions. It began to develop about 1946 from various

experiments in using discussion groups to achieve changes in behavior in back-home

situations. In particular, an Inter-Group Relations workshop held at the State Teachers

College in New Britain, Connecticut, in the summer of 1946 influenced the

emergence of laboratory training. This workshop was sponsored by the Connecticut

Interracial Commission and the Research Center for Group Dynamics, then at MIT.



Survey Research and Feedback





Survey research and feedback, a specialized form of action research

constitutes the second major stem in the history of organization development. It

revolves around the techniques and approach developed over a period of years by

staff members at the Survey Research Center (SRC) of University of Michigan.





The results of this experimental study lend support to the idea that an

intensive, group discussion procedure for utilizing the results of an employee

questionnaire survey can be an effective tool for introducing positive change in a



81
business organization. It deals with the system of human relationships as a whole

(superior and subordinate can change together) and it deals with each manager,

supervisor, and employee in the context of his own job, his own problems, and his

own work relationships.



Action Research Stem





Participant action research, is used with the most frequency in OD. The

laboratory training stem in the history of OD has a heavy component of action

research; the survey feedback stem is the history of a specialized form of action

research; and Tavistock projects have had a strong action research thrust, William

F.Whyte and Edith L.Hamilton used action research in their work with Chicago`s

Tremont Hotel in 1945 publication; Kurt Lewin and his students conducted numerous

action research projects in the mid-1940s and early 1950s. the work of these and other

scholars and practitioners in inventing and utilizing action research was basic in the

evolution of OD.

Sociotechnical and Socioclinical Stem





A fourth stem in the history of OD is the evolution of socioclinical and

sociotechnical approaches to helping groups and organizations. The clinic was

founded in 1920 as an outpatient facility to provide psychotherapy and insights from

the treatment of battle neurosis in World War I. A group focus emerged early in the

work of Tavistock in the context of family therapy in which the child and the parent

received treatment simultaneously. The action research mode also emerged at

Tavistock in attempts to give practical help to families, organizations, and

communities.



Second-Generation OD





Practitioners and researchers are giving consider able attention to emerging

concepts, interventions, and areas of application that might be called second-

generation OD. Each, to some extent, overlaps with some or all of the others. Second

generation OD, in particular, has focus on organizational transformation.



82




Increasingly, OD professionals distinguish between the more modest, or

evolutionary, efforts toward organization improvement and those that are massive

and, in a sense, revolutionary.



Smith, and Wilemon differentiate incremental change strategies and

fundamental change strategies. Organizational transformation is seen as requiring

more demands on top leadership, more visioning, more experimenting, more time,

and the simultaneous management of many additional variables. Managed teams and

cross-functional teams get started. In addition, as self-managed teams have assumed

many functions previously performed by management, supervisors and middle

managers have used team-building approaches within their own ranks to help

reconceptualize their own roles.

EXERCISE

1.

Define organization development

2.

What are the characteristics of organization development?

3.

Trace the History of organization development

4.

Distinguish between first generation organization development from
second generation organization development

5.

What is organization Transformation ?



LESSION 2

FOUNDATIONS OF ORGANIZATION DEVELOPMENT



Learning objectives



1.

To identify the phases of organization development

2.

To understand the foundations of organization development

3.

To describe the different kinds of organization development



At least four kinds of knowledge are required of OD practitioners and leaders

who desire to create problem-solving, self-renewing organizations: knowledge of how

organizations work; knowledge of how change occurs; knowledge of how to intervene



83
in organizations to produce desired changes; and knowledge of how to diagnose and

solve problems.







The knowledge of how organizations work comes mainly from basic

behavioral science research and theory. It entails an understanding of the dynamics of

individuals, groups, and goal-oriented social systems. Knowledge of how change

occurs involves understanding the processes of change and changing. In the case of

organization development, gaining this knowledge is difficult because the phenomena

are so complex and are themselves changing as they are being studied. Knowledge of

how to intervene in organizations relates to change, but goes beyond it to investigate

the processes of consultation and helping. What constitutes effective intervention?

What are the ingredients of effective client-consultant relationships? When is help

helpful? Other applied disciplines, such as education, psychotherapy, social work, and

management, provided insights that are used in OD.





The action arena of OD is organizations. The name of the game is planned

change. Organization improvement programs require an understanding of change

processes and knowledge of the nature of organizations. Kurt Lewin was the great

practical theorist whose action and research programs provided much of the early

foundation for understanding change processes in social situations.





The second idea proposed by Lewin analyzes what must occur for permanent

change to take place. He explained change as a three-stage process: unfreezing the old

behavior, moving to a new level of behavior, and freezing the behavior at the new

level. This is a useful model for knowing how to move an equilibrium point to a new,

desired level and keep it there.



Ronald Lippitt, Jeanne Watson, and Bruce Westley later refined Lewin`s three

phases into a seven-phase model of the change process as follows:



Phase 1. The development of a need for change. This phase corresponds to Lewin`s

unfreezing phase.

Phase 2. The establishment of a change relationship. This is a crucial phase in which



84
a client system in need of help and a change agent from outside the

system establish a working relationship with each other.

Phase 3. The clarification or diagnosis of the client system`s problem.

Phase 4. The examination of alternative routes and goals; establishing goals and

intentions of action.

Phase 5. The transformation of intentions into actual change efforts. Phase 3, 4, and 5

correspond to Lewin`s moving phase.

Phase 6. The generalization and stabilization of change. This corresponds to Lewin`s

freezing phase.

Phase 7. Achieving a terminal relationship.


Their following are the principles of organizational change

1. To change a subsystem or any part of a subsystem, relevant aspects of the

environment must also be changed.

2. To change behavior on any one level of a hierarchical organization, it is

necessary to achieve complementary and reinforcing changes in

organization levels above and below that level.

3. The place to begin change is at those points in the system where some

stress and strain exist. Stress may give rise to dissatisfaction with the status

quo and thus become a motivationg factor for change in the system.

4. If thoroughgoing changes in a hierarchical structure are desirable or

necessary, change should ordinarily start with the policy-making body.

5. Both the formal and the informal organization of an institution must be

considered in planning any process of change.

6. The effectiveness of a planned change is often directly related to the

degree to which members at all levels of an institutional hierarchy take

part in the factfinding and the diagnosing of needed changes and in the

formulating and reality testing of goals and programs of change.



There are various foundations for the development of organization. They are

discussed below:



CULTURE AND GROUP



85




This question of planned change or any social engineering is identical with

the question: What conditions have to be changed to bring about a given result and

how can one change these conditions with the means at hand?



One should view the present situation-the status quo-as being maintained by

certain conditions or forces. A culture-for instance, the food habits of a certain group

at a given time-is not a static affair but a live process like a river which moves but still

keeps a recognizable form. In other words, we have to deal, in group life as in

individual life, with what is known in physics as quasi-stationary process.





Food habits of a group, as well as such phenomena as the speed of production

in a factory, are the result of a multitude of forces. Some forces support each other,

some oppose each other. Some are driving forces, others restraining forces. Like the

velocity of a river, the actual conduct of a group depends upon the level (for instance,

the speed of production) at which these conflicting forces reach a state of equilibrium.

To speak of a certain culture pattern-for instance, the food habits of a group-implies

that the constellation of these forces remains the same for a period or at least that

they find their state for equilibrium at a constant level during that period.









BASIC REQUIREMENTS



One condition that seems so basic as to be defined axiomatic is the generation

of valid information. Without valid information, it would be difficult for the client to

learn and for the interventionist to help.





A second condition almost as basic flows from our assumption that

intervention activity, no mater what its substantive interests and objectives. Should be

so designed and executed that the client system maintains its discreteness and



86
autonomy. Thus, free, informed choice is also a necessary process in effective

intervention activity.





Finally, if the client system is assumed to be ongoing (that is, exiting over

time), the clients require strengthening to maintain their autonomy not only vis-?-vis

the interventionist but also vis-?-vis other systems. This means that their commitment

to learning and change has to be so strong that it can be transferred to relationships

other than those with the interventionist and can do so (eventually) without the help of

the interventionist. The third basic process for any intervention activity is therefore

the client`s internal commitment to the choices made.



INTERGROUP PROPLEMS IN ORGANIZATIONS



The first major problem of groups is how to make them effective in fulfilling

both organizational goals. The second major problems is how to establish conditions

between groups which will enhance the productivity of each without destroying

intergroup relations and coordination. This problem exists because as groups become

more committed to their own goals and norms, they are likely to become competitive

with one anther and seek to undermine their rivals` activities, thereby becoming a

liability to the organization as a whole. The overall problem, then, is how to establish

collaborative intergroup relations in those situations where task interdependence or

the need for unity makes collaboration a necessary prerequisite for organizational

effectiveness.









ORGANZATIONAL CULTURE





Organizational culture as a concept has a fairly recent origin. Although the

concepts of group norms`` and climate`` have been used by psychologists for a

long time the concept of culture`` has been explicitly used only in the last few

decades. Katz and kahn (1978), in their second edition of the social psychology of



87
organizations, referred to roles, norms, and values but presented neither climate nor

culture as explicit concepts.



SOCIOTECHNICAL SYSTEM PRINCIPLES





The sociotechnical systems (STS) approach is devoted to the effective

blending of both the technical and social systems of an organization. These two

aspects must be considered interdependently, because arrangements that are optimal

for one may not be optional for the both dual focus and joint optimization. The

approach has more relevance today than ever before, as organization personnel seek

more fruitful means of empowerment and as their organizations strive for greater

productivity and viability in increasingly turbulent environments.



FUNDAMENTAL INTERVENTIONS OF ORGANIZATION DEVELOPMENT





OD intervention refers to the range of planned, programmatic activities clients

and consultants participate in during the course of an organization development

program. Largely these are diagnostic and problem-solving activities that ordinarily

occur with the assistance of a consultant who is not a regular member of the particular

system or subsystem culture.



Classifications of OD Interventions





These are a number of ways of classifying OD interventions, depending on the

dimensions one wishes to emphasize. Several classification methods are based on the

type of causal mechanism hypothesized to underlie the particular technique used. For

example, feedback, which refers to receiving new data about oneself, others, or group

dynamics, is assumed to have potential for constructive change if it is not too

threatening. Techniques for providing more awareness of changing organizational

norms are assumed to result in modification of behavior, attitudes, and values,

Increased interaction and communication may effect changes in attitudes and

behavior. Homans, for example, suggests that increased interaction leads to positive

sentiments, and Murphy refers to tunnel vision or autism which develops in



88
individuals and groups in isolation. Confrontation, a surfacing and addressing of

differences in perceptions, values, attitudes, feelings, or norms, is assumed to help

remove obstacles to effective interaction if handled in constructive ways. Education is

designed to upgrade (1) knowledge and concepts, (2) out-moded beliefs and attitudes,

or (3) skills and has long been accepted as a change mechanism.



Depth of intervention is another useful dimension for classifying interventions.

Interventions can be distinguished in terms of the accessibility of the data and the

degree of individuality or self-exposure involved. For example, we see a family T-

group involving a work group and formal leader (family group) as a deeper

intervention than a task-oriented team-building (problem-solving) workshop with

such a group.





A different approach to classifying OD interventions is provided by Robert

Blake and Jane Mouton when they list the major interventions in terms of their

underlying cause and mechanisms. They describe the following kinds of

interventions: (1) a discrepancy intervention, which calls attention to a contradiction

in action or attitudes that then leads to exploration; (2) a theory intervention, in which

behavioral science knowledge and theory are used to explain present behavior and

assumptions underlying the behavior; (3) a procedural intervention, which represents

a critiquing of how something is being done to determine whether the best methods

are being used; (4) a relationship intervention, which focuses attention on

interpersonal relations (particularly ones where there are strong negative feelings) and

surfaces the issues for exploration and possible resolution; (5) an experimentation

intervention, in which two different action plans are tested for their consequences

before final decision on one is made; (6) a dilemma intervention, in which an imposed

or emergent dilemma is used to force close examination of the possible choices

involved and the assumption underlying them; (7) a perspective intervention, which

draws attention away from immediate actions and demands and allows a look at

historical background, context and future objectives in order to assess whether or not

the actions are still on target; (8) an organization structure intervention, which calls

for examination and evaluation of structural causes for organizational effectiveness;

and (9) a cultural intervention, which examines traditions, precedents, and practices-



89
the fabric of the organization`s culture-in a direct, focused approach. These are largely

process consultation interventions, and they tend to occur within the context of a

broader intervention, such as team building or in intergroup activities.





The time and comprehensiveness involved in the intervention can be another

way of distinguishing between interventions. Some interventions, such as the use of a

simple questionnaire, may take only minutes; others such as the role analysis process

(called Operation KPE in the Dayal and Thomas article) may take two hours

relative to one job incumbent. Team building of different varieties may be an

intervention taking place over one to three or more days and will include within it a

variety of brief interventions. It should be added that successful interventions will

probably always have a broader context; even the simplest of interventions needs to

occur in the setting of some prework, which serve to make the intervention acceptable

to the client, and needs follow-up to maximize the odds of success.







Another way of classifying OD interventions might be in terms of the

emphasis on task versus process. Some team-building activities, for example, may

have a high focus on interpersonal and group processes, such as the quality of

communications or the dynamics of informal leadership and influence processes

occurring in the group. Other activities might have a more task-related orientation,

such as goal setting or the reallocating of responsibilities. This dichotomy of task and

process can be somewhat misleading, however because they are highly interrelated.





Finally, another way of classifying OD interventions is in terms of the size and

complexity of the client group. For example, the client group may consist of (a)

individuals, (b) dyads or triads, (c)a self-managed team, (d) an intact work team,

including the formal leader, (e) intergroup configurations (two or more interfacing

units), (f) all of the managers of an organization, or (g) everybody in the total

organization. As we move from interventions with individuals, to dyads, to group, to

intergroups and then to the total organization, the interdependencies and the number

of dimensions to be concerned about obviously increases. For example, an

intervention that is successful in dealing with two groups in conflict must



90
also successfully deal with the intragroup communications problems and conflict that

become manifest. That is one reason it is usually a wise step to help teams deal with

internal problems and increase their interpersonal and group skills before undertaking

intergroup activities.



EXERCISE



1.

What is organization development intervention ?

2.

What are the classifications of organization development intervention ?

3.

Describe various foundation pillars of organization development

intervention

4.

Discuss various types of organization development intervention













































91














LESSON 3

RECENT ORGANISATION DEVELOPMENT STRATEGIES



Learning objectives



1.

To understand the recent organization development intervention

2.

To list out the phases of organization development

3.

To examine strategies of organization development implementation





Organization development and transformation interventions that are relatively

new or are in the process of development and refinement. All have a strong

foundation of systems thinking. Some are relatively abstract and difficult to explain.



Appreciative inquiry and the learning organization, but all can be translated

into specific interventions. All are difficult to implement successively.

Because

some of these interventions are nontraditional and may not be easily recognized as

organization development and transformation, it might be useful to review the kind of

intervention.



Successful Self-Directed Teams and Planned Change: begins with an

overview of the transition from first-generation planned change (OD) to second-

generation planned change (OT). They then go on to assert that self-directed teams

(SDTs) are part of this second- generation OT and are rapidly growing in popularity.





92
Survey Guided Appreciative Inquiry: A Case Study, presents a description

of an appreciative inquiry intervention that was blended with a survey feedback

process.



Inventing the Future: Search Strategies for Whole Systems Improvement,

describes a future search conference that brings together thirty to sixty people for

two or three day. Together they do a series of structured tasks, looking at the

organization`s past, present, and preferred future.



Meeting the Global Competitive Challenge: Building Systems That Learn on

a Large Scale describes getting the whole system in the room,`` an intervention used

successfully at the Ford Motor Company and at Boeing Aerospace and Electronics

division.



In Centers of Excellence,: a logical grouping of related skills or

disciplines, an administration entity focused on the well-being and development of

people, and a place where individuals learn skills and share knowledge across

function boundaries.



Building a learning organization, A learning organization is an organization

skilled at creating, acquiring, and transferring knowledge, and at modifying its

behavior to reflect new knowledge and insights. He cites Honda, coring, and General

Electric.



In Teaching smart people how to learn, Chris Argyris descries single loop

and double loop learning and discusses how highly skilled professionals can be

trapped into patterns of defensive reasoning.



IMPLEMENTATION GUIDELINES AND ISSUES



The phases of OD programmes are as follows:



1.

Entry



93
2.

Contracting

3.

diagnosis

4.

Feedback

5.

planning change

6.

Intervention

7.

Evaluation



Entry represents the initial contact between consultant and client; this includes

exploring the situation that led the client to seek a consultant and determining whether

there is a good match between the client, the consultant, and the problem atic

situation.



Contracting involves establishing mutual expectations; reaching agreement on

expenditures of time, money, and resources; and generally clarifying what each party

expects to get and give to the other.



Diagnosis is the fact-finding phase, which produces a picture of the situation

through interviews, observations, questionnaires, examination of organization

documents, and the like. This phase has two steps: collecting information and

analyzing it.



Feedback represents returning the analyzed information to the client system.

In this phase, the clients explore the information for understanding, clarification, and

accuracy; they own the data as their picture of the situation and their problems and

opportunities.



Planning change involves the clients` deciding what actions to take on the

basis of information they have just learned. Alternatives are explored and critiqued;

action plans are selected and developed.



Intervention involves implementing sets of actions designed to correct the

problems or seize the opportunities.





94
Evaluation represents assessing the effects of the program: What changes

occurred? Are we satisfied with the results?





Cummings and Worley also explore implementation issues. They identify five

sets of activities required for effective management of OD and OT programs: (1)



Motivating change, (2) creating a vision, (3) developing political support, (4)
managing the transition, and (5) sustaining momentum. These activities include
specific steps for the consultant to take to ensure effective implementation. For
example, motivating change involves creating readiness for change and
overcoming resistance to change.



Creating a vision involves providing a picture of the future and showing how
individuals and groups will fit into that future, as well as providing a road map
and interim goals.



Developing political support involves obtaining the support of key individuals and
groups and influencing key stakeholders to move the change effort for ward.



Managing the transition means planning the needed transition activities, getting
commitments of people and resources, and creating necessary structures and
milestones to help people locomote from where we are to where we want to
be.



Sustaining momentum involves providing resources for the change effort, helping
people develop new competencies and skills, and reinforcing the desired new
behaviors. These are the details consultants and leaders must attend to when
implementing organization development and transformation programs.



Strategies of organization development implementation:



Trust building :





Scholars have widely acknowledge that trust can lead to cooperative behavior

among individuals, groups, and organizations. Today, in an era when organizations

are searching for new ways to promote cooperation between people and groups to

enhance the value they create, it is not surprising that interest in the concept of trust



95
and, in particular, how to promote or actualize it is increasing. For example, many

organizations have sought to increase cooperation between people and groups by

reengineering their structures into flatter, more team-based forms, in which authority

is decentralized to empowered lower-level employees.



Creating readiness for change :





Readiness, which is similar to Lewin`s (1951) concept of unfreezing, is

reflected in organizational members` beliefs, attitudes, and intentions regarding the

extent to which changes are needed and the organization`s capacity to successfully

make those changes. Readiness is the cognitive precursor to the behaviors of either

resistance to, or support to the behaviors of either resistance to, or support for, a

change effort. Schein (1979) has argued the reason so many change efforts run into

resistance or outright failure is usually directly traceable to their not providing for an

effective unfreezing process before attempting a change induction



Models of organization development





The most commonly considered expression of power in organization research

and

practice in downward power, which is the influence of a superior over a subordinate.

This kind of influence in the form of one having power over another is a central focus

in much of our traditional leadership research and training, such as Theory X versus

Theory Y or task oriented versus people oriented style. Upward power refers to

attempts by subordinates to influence their superiors. Until recently, subordinates

were considered relatively powerless. But a small and growing body of research

indicates that subordinates can and do influence their superiors in subtle ways. A third

direction, sideways power, refers to influence attempts directed at those people who

are neither subordinates nor superiors in one`s immediate reporting chain of authority.

Horizontal power, interdepartmental power, external relationships, and lateral

relationships are all terms that reflect expressions of sideways power.



T ? Group training



96




Efforts to improve group functioning through training have traditionally

emphasized the training of group leadership. And frequently this training has been

directed toward the improvement of the skills of the leader in transmitting information

and in manipulating groups.



Impact of Organizational Intervention





As our knowledge increases, it begins to be apparent that these competing

change strategies are not really different ways of doing the same thing-some more

effective and some less effective-but rather that they are different ways of doing

different things. They touch the individual, the group, or the organization in different

aspects of their functioning. They require differing kinds and amounts of commitment

on the part of the client for them to be successful, and they demand different varieties

and levels of skills and abilities on the part of the practitioner. Strategies which touch

the more deep, personal, private, and central aspects of the individual or his

relationships with others fall toward the deeper end of this continuum. Strategies

which deal with more external aspects of the individual and which focus on the more

formal and public aspects of role behavior tend to fall toward the surface end of the

depth dimension. This dimension has the advantage that it is relatively easy to rank

change strategies upon it and to get fairly close consensus as to the ranking.


EXPERCISE



1.

What is traditional organization development ?



2.

What is a recent organization development method ?


3.

Enumurate the phases involved in implementation of organization
development ?


4.

Explain the strategies adopted in the implement of organization
development







97
















CHAPTER APPLICATION


CHANGING GENERAL MOTORS


As Japanese auto producers continue to take more and more sales away from

General Motors, the world`s largest automaker has realized that a major change

within the company is essential if it is to successfully meet the Japanese competition.

Such change at General Motors (BM) must begin with new relations with its union,

the United Automobile Workers (UAW). In the past, the relationship has been

adversarial, and GM recognized that the relationship must be changed to one of trust

and cooperation.





General Motors and the UAW agreed to mutuallyfund and support a Human

Resources Centre dedicated to task of maximizing their human resources while



98
creating a new spirit of cooperation. The Human Resource Centre hopes to meet its

change challenge through eight ongoing programs:



1.

Health and Safety Program ? a five-day program of both classroom

and hands-on workshops aimed at eliminating job-related injuries and

deaths.

2.

Quality of Work Life Program-A program designed to democratize

the workplace by encouraging all employees to participate in the

decision making process.

3.

Attendance Procedure Program-A program designed to reduce

absenteeism through a process of awarding bonuses for good

attendance.

4.

Tuition Assistance Plan-a plan providing from $50 to $5.000 for

workers who wish to go to school to improve their skills.

5.

Paid Education Leave-a plan to pay union leaders who take leave to

study the problems facing the auto industry.

6.

Preretirement Program-a program to aid workers deal with the

problems of retirement planning.

7.

Joint Skill Development and Training-a plan that charges committees

at the plant level with the task of developing comprehensive training

programs based on the actual needs of the workforce.

8.

Area Centres for Skill Development and Training-provides needed

training for the workforce.



The funding level contributed by both GM and the UAW and the personal

support given to individual programs indicate that the overall plan is off to a

good start with both sides predicting a new era of mutual cooperation.

(Source: UAW-G Human Resource Center Booklet, 1986).



EXERCISE : FORCES FOR CHANGE





99
The purpose of this exercise is to help the reader gain a better understanding of the

forces of change. This exercise may be completed by a single reader, but greater

insight may be gained by completing the exercise as part of a group.



Time Required ? 45 Minutes



Step 1: Individual activity (completed prior to exercise)



Step 2: Small-group activity (completed prior to exercise)



Step 3: Discussion-45 minutes



Procedure

Step 1: Study the forces for Change Outline, which follows:



THE FORCES FOR CHANGE OUTLINE



One of the frameworks for analyzing change requires identifying two different

kinds of forces. First are the Driving Forces, or those forces that are instrumental in

causing the change. Second are the Restraining Forces, or those forces that tend to

maintain the status quo. Thus, change is generally seen as a slow process in which the

Driving Forces overcome the Restraining Forces. At any point in time. The situation

may seem to be somewhat stable with the two types of forces opposing each other in

an unsteady balance, as follows:













Present situation

Driving Forces



Restraining Forces









100







Efforts to manage the change process come down to the following actions:


1. Promoting the change by facilitating the Driving Forces.
2. Promoting the change by weakening or eliminating the Restraining Forces.
3. Resisting the change by weakening or eliminating the Driving Forces.
4. Resisting the change by facilitating the Restraining Forces.
5. Redirecting the change by manipulating the forces.


Step 2: Each small group should analyze one of the following business changes, by
completing The Change Analysis Sheet.

1. Increased use of robotics.
2. Concern for the quality of work.
3. More women in the workplace.
4. Shortage of skilled labour.
5. Loss of the work ethic.
6. Poor workmanship in the workplace.
7. Continued competition from the Japanese and the four Tigers of Asia.


Step 3: A representative from each group will present the group`s findings for
discussion.



THE CHANGE ANALYSIS SHEET (PART ONE)



Assigned Change for Analysis :

Driving forces:





Restraining Forces:











THE CHANGE ANALYSIS SHEET (PART TWO)



1. Promote change by facilitating the Driving Forces:



101






2. Promote change by weakening or eliminating Restraining Forces







3. Resist the change by weakening or eliminating the Driving Forces:







4. Resist the change by facilitating the Restraining forces:







5. Redirect the change by manipulating the Forces:











102


Unit ?V Organization Development Intervention

Introduction

An intervention is a deliberate process by which change is introduced into peoples'

thoughts, feelings and behaviors. The overall objective of any intervention is to

confront individuals, teams or units of people in a non-threatening way and allow

them to see their self-destructive behavior and how it affects themselves and

colleagues. It might involve several people who have prepared themselves to talk to

the target group that has been engaging in some sort of self-destructive behavior. In a

clear and respectful way, they inform the persons of factual information regarding

their behavior and how it may have affected them. The immediate objective of an

intervention is for the target to listen and to accept help. Organization Development

(OD) intervention would be a combination of the ways a manager can influence the

productivity of his/her team by understanding how managerial style impacts

organizational climate and more importantly how to create an environment of high

performance.



Most OD interventions are plans or programs comprised of specific activities

designed to effect change in some facet of an organization. Numerous interventions

have been developed over the years to address different problems or create various

results. However, they all are geared toward the goal of improving the entire

organization through change. In general, organizations that wish to achieve a high

degree of organizational change will employ a full range of interventions, including

those designed to transform individual and group behavior and attitudes. Entities

attempting smaller changes will stop short of those goals, applying interventions

targeted primarily toward operating policies, management structures, worker skills,

and personnel policies. OD interventions can be categorized in a number of ways,

including function, the type of group for which they are intended, or the industry to

which they apply. W.L. French identified major families of interventions based on the

type of activities that they included, such as activity groups included teambuilding,

survey feedback, structural change, and career-planning.





103
1.1. Organization Development Interventions

OD interventions could be carried out at individual, interpersonal, group, inter-group

and organizational levels. Examples of interventions on the individual level are:

coaching and counseling, management consultation, training and development, role

playing, transactional analysis, life and career planning activities. On the person-to-

person, dyad/triad level the interventions include shuttle diplomacy, mediation and

process consultation. At the group level OD interventions involve team-building,

leadership training, communication training and other educative efforts, survey

feedback, problem solving consultation. At the inter-group level, organizations use

interventions such as shuttle diplomacy and mediation and team-building. At the

organizational level the interventions might include combinations of the above, as

well as strategic planning, problem analysis, interviews and questionnaires,

confrontation meetings and making recommendations for structural or procedural

changes (French & Bell, 1984).

1.2 Structural Intervention:

Structural interventions are those that are aimed at changes in task, structural and

technological subsystems of organizations. Job designs, quality circles, Management

by objectives bolstered by knowledge of OD experiments are included under the

category of structural interventions. Elements of OD may include finding ways to

adapt to the changing context while maintaining and enhancing the organization's

integrity and internal integration. OD involves establishing structures, processes and

a climate that allow it to effectively manage its important and pressing business (e.g.

projects, problems, crises, etc.) while giving adequate attention to strategic issues

(e.g., long term development and renewal, planning and envisioning, engaging new

opportunities, crisis prevention, etc.)



Structure is an integral component of the organization. Nystrom and Starbuck (1981)

have defined structure as the arrangement and interrelationship of component parts

and positions in an organization. Structural OD intervention provides guidelines on:





hierarchy;



104




th the environment.

Organizational structure may differ within the same organization according

to the particular requirements. Structure in an organization has three

components (Robbins, 1989):

Complexity, referring to the degree to which activities within the

organization are differentiated. This differentiation has three dimensions:

- Horizontal differentiation refers to the degree of differentiation between

units based on the orientation of members, the nature of tasks they perform

and their education and training,

- Vertical differentiation is characterized by the number of hierarchical

levels in the organization, and

- Spatial differentiation is the degree to which the location of the

organization's offices, facilities and personnel are geographically

distributed;

Formalization refers to the extent to which jobs within the organization

are specialized. The degree of formalization can vary widely between and

within organizations;

Centralization refers to the degree to which decision making is

concentrated at one point in the organization.

1.2.. Designing organizational structures

Some important considerations in designing an effective organizational

structure are:

Clarity The structure of the organization should be such that there is no

confusion about people's goals, tasks, style of functioning, reporting

relationship and sources of information.

Understanding The structure of an organization should provide people

with a clear picture of how their work fits into the organization.



105
De-centralization The design of an organization should compel

discussions and decisions at the lowest possible level.

Stability and adaptability While the organizational structure should be

adaptable to environmental changes, it should remain steady during unfavorable

conditions.

1.3. Principles of organization structure

Modern organizational structures have evolved from several organizational

theories, which have identified certain principles as basic to any

organization.

a. Specialization

Specialization facilitates division of work into units for efficient

performance. According to the classical approach, work can be performed

much better if it is divided into components and people are encouraged to

specialize by components. Work can be specialized both horizontally and

vertically (Anderson, 1988). Vertical specialization in a research

organization refers to different kinds of work at different levels, such as

project leader, scientist, researcher, field staff, etc. Horizontally, work is

divided into departments like genetics, plant pathology, administration,

accounts, etc.

Specialization enables application of specialized knowledge which betters

the quality of work and improves organizational efficiency. At the same

time, it can also influence fundamental work attitudes, relationships and

communication. This may make coordination difficult and obstruct the

functioning of the organization. There are four main causal factors which

could unfavorably affect attitudes and work styles. These are differences

in:

oal

orientation;



-personal

orientation;

and



b. Coordination



106
Coordination refers to integrating the objectives and activities of

specialized departments to realize broad strategic objectives of the

organization. It includes two basic decisions pertaining to:

(i) Which units or groups should be placed together; and

(ii) The patterns of relationships, information networks and

communication (Anderson, 1988).

In agricultural research institutions, where most of the research is multi

disciplinary but involves specialization, coordination of different activities is

important to achieve strategic objectives. Efficient coordination can also help

in resolving conflicts and disputes between scientists in a research

organization.

Hierarchy facilitates vertical coordination of various departments and their

activities. Organizational theorists have over the years developed several

principles relating to the hierarchy of authority for coordinating various

activities. Some of the important principles are discussed below.

c. Unity of Command Every person in an organization should be responsible to

one superior and receive orders from that person only. Fayol (1949)

considered this to be the most important principle for efficient working and

increased productivity in an organization.

d. The Scalar Principle Decision making authority and the chain of

command in an organization should flow in a straight line from the highest

level to the lowest. The principle evolves from the principle of unity of

command. However, this may not always be possible, particularly in large

organizations or in research institutions. Therefore Fayol (1949) felt that

members in such organizations could also communicate directly at the

same level of hierarchy, with prior intimation to their superiors.

e. The Responsibility and Authority Principle For successfully performing

certain tasks, responsibility must be accompanied by proper authority.

Those responsible for performance of tasks should also have the

appropriate level of influence on decision making.



107
f. Span of Control This refers to the number of specialized activities or

individuals supervised by one person. Deciding the span of control is

important for coordinating different types of activities effectively.

According to Barkdull (1963), some of the important situational factors

which affect the span of control of a manager are:



upervisor;











Departmentalization

Departmentalization is a process of horizontal clustering of different types

of functions and activities on any one level of the hierarchy. It is closely

related to the classical bureaucratic principle of specialization (Luthans,

1986). Departmentalization is conventionally based on purpose, product,

process, function, personal things and place (Gullick and Urwick, 1937).

Functional Departmentalization is the basic form of departmentalization.

It refers to the grouping of activities or jobs involving common functions.

In a research organization the groupings could be research, production,

agricultural engineering, extension, rural marketing and administration.

Product Departmentalization refers to the grouping of jobs and activities

that are associated with a specific product. As organizations increase in

size and diversify, functional departmentalization may not be very

effective. The organization has to be further divided into separate units to

limit the span of control of a manager to a manageable level (Luthans,

1986). In an agricultural research institution, functional departments can

be further differentiated by products and purpose or type of research.

In

contrast

to

functional

departmentalization,

product-based

departmentalization has the advantage of:



108
-units;

-units;







-term issues.

In contrast, functional departmentalization has the strength of:

-units;







her product quality; and



Departmentalization by Users is grouping of both activities and positions to

make them compatible with the special needs of some specific groups of

users.

Departmentalization by Territory or Geography involves grouping of

activities and positions at a given location to take advantage of local

participation in decision making. The territorial units are under the control

of a manager who is responsible for operations of the organization at that

location. In agricultural research institutions, regional research stations are

set up to take advantage of specific agro-ecological environments. Such

departmentalization usually offers economic advantage.

Departmentalization by Process or Equipment refers to jobs and activities

which require a specific type of technology, machine or production process.

Other common bases for departmentalization can be time of duty, number

of employees, market, distribution channel or services.

1.4. De-centralization and Centralization

De-centralization refers to decision making at lower levels in the hierarchy

of authority. In contrast, decision making in a centralized type of

organizational structure is at higher levels. The degree of centralization and



109
de-centralization depends on the number of levels of hierarchy, degree of

coordination, specialization and span of control. According to Luthens

(1986), centralization and de-centralization could be according to:

n or dispersion of

operations;





Every organizational structure contains both centralization and de-centralization,

but to varying degrees. The extent of this can be determined by identifying how

much of the decision making is concentrated at the top and how much is

delegated to lower levels. Modern organizational structures show a strong

tendency towards de-centralization.

2. Strategic OD interventions



Strategic Planning - A dynamic process which defines the organization's mission and

vision, sets goals and develops action steps to help an organization focus its present

and future resources toward fulfilling its vision.Many organizations today were facing

external threats to their survival, whether it be from takeovers, technological

obsolescence or global competition. In its infancy, OD would have responded to such

challenges by preaching participative management, a not so subtle way of challenging

top management to redistribute power to lower levels. During the later years, OD

reversed fields to serve the power structure through confining its techniques to lower

levels and the bottom line, such as Quality of Work Life (QWL) programs. This

subservient role for OD had continued up to recent times where the power structure

tolerates and even encourages OD so long as it fine-tunes the existing situation

without threatening the essence of the power system. Now, however, that essence is

threatened by outside forces. A "new" OD is emerging to deal more directly with

helping the power structure to change not only itself but also the strategic alignment

of the firm with its environment. OD can, if properly devised, provide a more

effective process than political bargaining for assisting the dominant coalition to

address pressing strategic issues that have so far eluded formal approaches to strategic

planning. OD must engage the most cherished agenda of the power elite- the strategy



110
of the company, its top management structure for delivering on strategy, and the

manner in which they will lead.



3. Technology and OD solutions



Elements of OD may include finding ways to adapt to the changing context while

maintaining and enhancing the organization's integrity and internal integration. OD

involves establishing structures, processes and a climate that allow it to effectively

manage its important and pressing business (e.g. projects, problems, crises, etc.) while

giving adequate attention to strategic issues (e.g., long term development and renewal,

planning and envisioning, engaging new opportunities, crisis prevention, etc.).

Technologies are also used to enable OD interventions and improve human

connectivity and better team work.



4. Sensitivity Training



Sensitivity training is a method of laboratory training where an unstructured group of

individuals exchange thoughts and feelings on a face-to-face basis. Sensitivity

training helps give insight into how and why others feel the way they do on issues of

mutual concern. Training in small groups in which people develop a sensitive

awareness and understanding of themselves and of their relationships with others.

Sensitivity training is based on research on human behavior that came out of efforts

during World War II to ascertain whether or not an enemy's core beliefs and behavior

could be modified by the application of certain psychological techniques. These

techniques have been gradually perfected over the years by efforts of business and

industry leaders to persuade people to buy products, including the radio and television

industry to ascertain how an audience might be habituated to certain types of

programming.



Kurt Lewin is credited with being the 'father' of sensitivity training in the United

States. Laboratory Training began in 1946 when Kurt Lewin and his staff at the

Research Center for Group Dynamics at Massachusetts Institute of Technology were

training community leaders. A workshop was developed for the leaders to learn about



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leadership and to discuss problems. At the end of each day, the researchers discussed

privately what behaviors and group dynamics they had observed. The leaders asked

permission to sit in on these feedback sessions. Reluctant at first, the researchers

finally agreed. Thus the first T-group was formed in which people reacted to

information about their own behavior.



Tavistock Clinic, an outgrowth of the Tavistock Institute of Medical Psychology,

founded in 1920 in London . initiated sensitivity training in the United Kingdom in

1932, under the headship of a psychiatrist John Rawlings Rees. Dr. Rees conducted

tests on American and British soldiers to ascertain whether, under conditions of

induced and controlled stress, groups could be made to behave erratically. In

particular they wanted to know whether people would let go even firmly held beliefs

under 'peer pressure' to conform to a predetermined set of 'popular' beliefs. This

Tavistock method was similar to those procedures used in the mental hospitals' to

correct the attitudes of prisoners; where, it was called re-education. Sensitivity

training evolved in the United States of America; at Stanford's Research Institute's

Center for the Behavioral Sciences, at the Sloan School at the Massachusetts Institute

of Technology, and at the various National Training Laboratories (NTLs), where

concepts popularly known as 'T-Groups' (therapy groups) and 'sensitivity training'

were developed.



A controlled stress situation is created by a group leader ('facilitator') with the

ostensible goal of achieving a consensus or agreement which has, in reality, been

predetermined. By using peer pressure in gradually increasing increments, up to and

including yelling at, cursing at, and isolating the holdouts, weaker individuals were

intimidated into caving in. They emerge with a new value structure in place, and the

goal is achieved. The method was refined and later popularized by other schools of

behavioral science, such as Ensalen Institute, the NTL Institute for Applied

Behavioral Sciences, and the Western Training Laboratories in Group Development."



Sensitivity training is a type of experience-based learning in which participants work

together in a small group over an extended period of time learning through analysis of

their own experiences. The primary setting is the T Group (T for training) in which a



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staff member sets up an ambiguous situation which allows participants to choose the

roles they will play while observing and reacting to the behavior of other members

and in turn having an impact on them. The perceptions and reactions are the data for

learning. T-Group theory emphasizes each participant's responsibility for his own

learning, the staff person's role of facilitating examination and understanding,

provision for detailed examination required to draw valid generalizations, creation of

authentic interpersonal relationships which facilitate honest and direct

communication, and the development of new skills in working with people. Goals of

sensitivity training are to allow participants to gain a picture of the impact that they

make on others and to facilitate the study of group dynamics and of larger

organizational concepts such as status, influence, division of labor, and styles of

managing conflict. Some believe that sensitivity is talent, while others believed that

sensitivity is something which is not so much developed, as allowed to exist. It is a

trait called "empathy". Sensitivity is found wanting in people as they are often

preoccupied with their own problems that they don't "have time" for others. Their

tension disallows them to pay attention to someone or to relate to what the person is

saying, Most believe that sensitivity to others could be developed. Some people have

this ability, but most just fake it. Sensitivity training involves a small group of

individuals focusing on the here-and-now behavior and attitudes in the group. In

short, the individuals discuss whatever comes up naturally in the group. For example,

one participant might criticize an opinion expressed by another, and both the opinion

and the criticism could become the focus of the entire group. The intent of this

process, which might take several days at 12 hours or more per day, is for participants

to learn how they affect others and how others affect them. In turn, "sensitivity"

learning can help participants become more skilled in diagnosing interpersonal

behavior and attitudes on the job.



Sensitivity could be enhanced by adopting the following view points:





1) Everybody is entitled to their feelings, no matter how illogical they are;



2) There is no such thing as 'blame'... Everybody involved is equally at fault;



3) A person should not attack, but express their feelings about others` actions



4) Leaving a problem unresolved will make it worse with time;



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5) Nobody is perfect which includes one self



Encounter Groups were nontraditional attempts at psychotherapy that offered short-

term treatment for members without serious psychiatric problems. These groups were

also known as sensitivity (or sensory) awareness groups and training groups (or T-

groups). Encounter groups were an outgrowth of studies conducted at the National

Training Laboratories in by Kurt Lewin. The use of continual feedback, participation,

and observation by the group encouraged the analysis and interpretation of their

problems. Other methods for the group dynamics included Gestalt therapy (working

with one person at a time with a primary goal of increasing awareness of oneself in

the moment, also known as holistic therapy) and meditation. Encounter groups were

popularized by people such as Dr. Fritz Perls and Dr. Will Schutz (of the Esalen

Institute) and had their greatest impact on the general population in the 1960s and

1970s. These groups fell out of favor with the psychiatric community because of

criticism that many of the group leaders at the time were not trained in traditional

group therapy and that the groups could sometimes cause great harm to people with

serious emotional problems.



5. Survey-feedback:

Survey feedback technology is probably the most powerful way that OD professionals

involve very large numbers of people in diagnosing situations that need attention

within the organization and to plan and implement improvements. The general

method requires developing reliable, valid questionnaires, collecting data from all

personnel, analyzing it for trends and feeding the results back to everyone for action

planning. "Walk-the-talk" assessment: Most organizations have at least some leaders

who "say one thing and do another." This intervention, which can be highly

threatening, concentrates on measuring the extent to which the people within the

organization are behaving with integrity.

5.1. Survey Feedback in OD

The most important step in the diagnostic process is feeding back diagnostic

information to the client organization. Although the data may have been collected

with the client's help, the OD practitioner usually is responsible for organizing and



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presenting them to the client. A flexible and potentially powerful technique for data

feedback that has arisen out of the wide use of questionnaires in OD work is known as

survey feedback. Survey feedback is a process of collecting and feeding back data

from an organization or department through the use of a questionnaire or survey. The

data are analyzed, fed back to organization members, and used by them to diagnose

the organization and to develop intervention to improve it.

Survey feedback is a major technique in the history and development of OD. It is a

powerful intervention tool and it can reach large numbers of participants. There are

five general steps included in a normal survey feedback. The first involves gathering

members of the firm in order to plan the survey. This is when the objectives of the

survey is determined. The second step involves administering the survey to all of the

organization's members, rather than restricting it to managers and coordinators. Next

step would be to analyze the data reported through the surveys. In the fourth step the

data is fed back to the organization. Finally, the firms should hold meetings to

discuss the feedback and try to determine what, if any, action is needed and how to

implement it. OD practitioners could be more involved in some of these steps by

training someone to go to the firms and help them interpret the feedback and devise

intervention plans.

5.2 Limitations

There are limitations to survey feedback that OD practitioners should be aware of.

These include:

1) Ambiguity of purpose - there can be disagreement over how the data should

be analyzed and returned.

2) Distrust - OD practitioners need to ensure participants that their contributions

are confidential.

3) Unacceptable topics - some firms have topics they do not want to explore,

which constricts the scope of the survey.

4) Organizational disturbance - this process may disturb the employees, and

possibly the whole firm

6. Process Consultation



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The concept of process consultation as a mode of inquiry grew out of insight that to

be helpful one had to learn enough about the system to understand where it needed

help and that this required a period of very low key inquiry oriented diagnostic

interventions designed to have a minimal impact on the processes being inquired

about (Schein, 1988). Process consultation as a philosophy acknowledges that the

consultant is not an expert on anything but how to be helpful and starts with total

ignorance of what is actually going on in the client system. One of the skills, then, of

process consulting is to "access one's ignorance," to let go of the expert or doctor role

and get attuned to the client system as much as possible. Only when one has

genuinely understood the problem and what kind of help is needed, can one begin to

recommend and prescribe. Even then it is likely that they will not fit the client

system's culture and will therefore, not be refrozen even if initially adopted. Instead, a

better model of help is to start out with the intention of creating in insider/outsider

team that is responsible for diagnostic interventions and all subsequent interventions.

When the consultant and the client have joint ownership of the change process, both

the validity of the diagnostic interventions and the subsequent change interventions

will be greatly enhanced. The flow of a change or managed learning process then is

one of continuous diagnosis as one is continuously intervening. The consultants must

be highly attuned to their own insights into what is going on and his or her own

impact on the client system. Stage models which emphasize up front contracting do

not deal adequately with the reality that the psychological contract is a constantly

evolving one and that the degree to which it needs to be formalized depends very

much on the culture of the organization.



Lewin's concept of action research is absolutely fundamental to any model of working

with human systems and such action research must be viewed from a clinical

perspective as a set of interventions that must be guided primarily by their presumed

impact on the client system. The immediate implication of this is that in training

consultants and change agents one should put much more emphasis on the clinical

criteria of how different interventions will affect client systems than on the canons of

how to gather scientifically valid information. Graduate members should be sent into

field internships as participant observers and helpers before they are taught all the



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canons of how to gather and analyze data. Both are necessary, but the order of priority

is backward in most training programs.



6.1. Edgar Schein's Process consultation



"One cannot understand a System until one tries to change It. Literature is filled with

the notion that one first diagnoses a system and then intervenes to change it. This

basic model perpetuates a fundamental error in thinking, an error that Lewin learned

to avoid in his own change projects and that led him to the seminal concept of "action

research." The conceptual error is to separate the notion of diagnosis from the notion

of intervention. That distinction comes from scientific endeavors where a greater

separation exists between the researcher and the researched, particularly where the

physical processes are assumed to be somewhat independent of the psychological

processes. The consulting industry has perpetuated this model by proposing as a

major part of most projects a diagnostic phase in which large numbers of interviews,

questionnaires and observations are made the basis of a set of recommendations given

to the client. Consultants differ on whether they feel they should also be accountable

for the implementation of the recommendations, but they tend to agree that the

consultant's basic job is done with a set of recommendations "for future intervention."

If interviews or surveys are done, the attempt is made to be as scientifically objective

as possible in gathering the data and to interfere minimally during this phase with the

operation of the organization. If one cannot understand an organization without trying

to change it, it would not be possible to make an adequate diagnosis without

intervening. Either consultants using the classical model are getting an incorrect

picture of the organization, or they are intervening but are denying it by labeling it

"just diagnosis." This risk forces the diagnostician to think about the nature of the

"diagnostic intervention" and to apply clinical criteria for what is safe, rather than

purely scientific criteria of what would seemingly give the most definitive answer.

OD specialists must approach consulting work from a clinical perspective that starts

with the assumption that everything to do with a client system is an intervention and

that, unless intervened, will not learn what some of the essential dynamics of the

system really are. Starting from that assumption, there is a need to develop criteria

that balance the amount of information gained from an intervention with the amount



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of risk to the client from making that intervention. If the consultant is going to

interview all the members of top management, he must ask whether the amount of

information gained will be worth the risk of perturbing the system by interviewing

everybody and if the answer is "yes," must make a further determination of what is to

be learned from the reactions of the management to being interviewed. That is, the

interview process itself will change the system and the nature of that change will

provide some of the most important data about how the system works, i.e. will

respondents be paranoid and mistrusting, open and helpful, supportive of each other

or hostile in their comments about each other, cooperative or aloof and so on. The

best information about the dynamics of the organization will be how the organization

deals with the consultant, because his or her very presence is de facto an intervention.

Yet the focus in many traditional consultation models is on the "objective data

obtained in the interview" with nary a reference to how the interviewer felt about the

process and what could be inferred from the way he or she was received.



Human systems cannot be treated with high level of objectivity` is, therefore, an

important insight that is all too often ignored in our change and consultation literature.

In practice change agents have learned from their own experience that "diagnostic"

activities such as observations, interviews and questionnaires are powerful

interventions and that the process of learning about a system and changing that system

are, in fact, one and the same. This insight has many ramifications, particularly for the

ethics of research and consulting. Many researchers and consultants assume that they

can "objectively" gather data and arrive at a diagnosis without having already changed

the system. In fact, the method of gathering data influences the system and therefore,

must be considered carefully. For example, asking someone in a questionnaire how

they feel about their boss gets the respondent thinking about an issue that he or she

might not have focused on previously and it might get them talking to others about the

question in a way that would create a common attitude that was not there before.

7. Team Building

Richard Beckhard, one of the founders of the discipline referred to as organization

development gave a systematic framework for the most effective interventions to

achieve positive organization change. Beckhard`s team development model serves as



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a guide for executives and project managers. There are a variety of situations where

new teams are formed. The project-based, cross-functional work team has become the

basis of industry in the 1990`s. Virtual team organization is rapidly becoming the

model for flexibility and agility in organizing quickly and effectively to get jobs done.

New teams usually have a clear task focus in the early going and there is usually a

clear understanding of the short term goals. The new team members are also generally

technically competent and there usually is a challenge in the project that will draw on

their technical capabilities. While the early activities of a team are clearly focused on

task and work issues, relationship problems tend do develop as they do in any human

system. By the time these interpersonal issues surface the team may be well along in

its activities. The issues may become very difficult and very costly to work out later in

the game. There is a significant benefit if a new team takes a short time at the

beginning of its life to examine collaboratively how it is going to work together.

Beckhard provides a tool to set the stage for most effective team-work and high

performance. Team Building as an OD intervention can take many forms. The most

common pattern is beginning with interviews and other preliminary work, followed

by a one-to three-day session. During the meeting the group diagnoses its function as

a unit and plans improvements in its operating procedures.

7.1 Developing Winning Teams

Every organization uses some kind of formal teamwork to get projects done. Many of

them create teams up by giving them a vague, imperfect plan, sending them on their

own way somehow expecting victory. Even if individual players are talented and

creative, teams with firm goals and ways to achieve them alone succeed. Winning

teams thrive on structure that's created from the bottom up, yet guided by strong,

confident leadership from the top of the organization. A good team relationship

requires nurturing from a strong leader.

7.2. Types or team roles were defined by Dr. R. Meredith Belbin based on his studies

at a Management College are as follows:



Overall nature Belbin roles

Description

of activities



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Well-organized and predictable.

Takes basic ideas and makes

Implementer

them work in practice. Can be

slow.

Lots of energy and action,

Shaper

challenging others to move

Doing / acting

forwards. Can be insensitive.

Reliably sees things through to

the end, ironing out the wrinkles

Completer/Finisher

and ensuring everything works

well. Can worry too much and

not trust others.

Solves difficult problems with

original and creative ideas. Can

Plant

be poor communicator and may

ignore the details.

Sees the big picture. Thinks

Thinking

/

carefully and accurately about

problem-

Monitor/Evaluator

things. May lack energy or

solving

ability to inspire others.

Has expert knowledge/skills in

key areas and will solve many

Specialist

problems

here.

Can

be

disinterested in all other areas.

Respected leader who helps

People

/

everyone focus on their task.

Coordinator

feelings

Can be seen as excessively

oriented

controlling.

Team worker

Cares for individuals and the



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team. Good listener and works

to resolve social problems. Can

have problems making difficult

decisions.

Explores

new

ideas

and

possibilities with energy and

Resource/investigator with others. Good net-worker.

Can be too optimistic and lose

energy after the initial flush.



Overall functions

Belbin role

Coordinator

Leading

Shaper

Implementer

Doing

Completer/finisher

Monitor/Evaluator

Thinking

Plant

Specialist

Resource/investigator

Socializing

Team Worker



7.3. Balanced teams

Teams work best when there is a balance of primary roles and when team members

know their roles, work to their strengths and actively manage weaknesses. To achieve

the best balance, there should be:

One Coordinator or Shaper (not both) for leader



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A Plant to stimulate ideas

A Monitor/evaluator to maintain honesty and clarity

One or more Implementer, Team worker, Resource investigator or

Completer/finisher to make things happen

Identify types when starting up teams and ensure have a good balance or

handle the imbalances

7.4. Communication in Teams

Communication, the most basic of management essentials, is needed to ensure timely

feedback and immediate updates in teams. In teams, clarity, frequency and

responsiveness are the keys of communication. Most of the communication is

nonverbal and the verbal forms used need to be clear and delivered often. Regular

meetings in a place or via conference call or other technology are essential for teams.

Team coordinators should keep the agenda posted electronically in an area the whole

team can access and encourage them to add to it. They should make answering team

members` emails and phone calls a priority. Although team members hardly need to

be affectionate to each other to work well together, some level of personal interaction

is crucial for team bonding. Supporting tools that can be obtained inexpensively or

free like telephone and email, instant messaging systems, collaboration software,

group bulletin boards or discussion areas and chat rooms are all useful for working

and meeting together. Varying methods of communicating and learning which

methods work best for which team members are vital steps. One of the most often

neglected pieces to building a team is providing a safe place for interaction and

discussion without the manager. Teams need a staff room. Members often develop

ideas they might not feel comfortable expressing in public. Teams need them and if

they ignore this need, they eliminate a chance for a more free change of ideas.

Accomplishments must be acknowledged and celebrated, as a group when possible

and appropriate. Organizations adopt several ways to achieve this, such as creating a

periodic newsletter and email with a section in it for accolades, institution of a peer-

to-peer award system, sending greeting cards or gift certificates from websites

dedicated to these purposes. The principles of managing teams well are similar to the

principles of managing anybody or anything well.

7.5. Characteristics of High Performing Teams' members



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Share a common purpose / goals

Build relationships for trust and respect

Balance task and process

Plan thoroughly before acting.

Involve members in clear problem-solving and decision making procedures

Respect and understand each others' "diversity"

Value synergism and interdependence

Emphasize and support team goals

Reward individual performance that supports the team.

Communicate effectively

Practice effective dialogue instead of debate Identify and resolve group

conflicts

Vary levels and intensity of work

Provide a balance between work and home.

Critique the way they work as a team, regularly and consistently

Practice continuous improvement

Creating a team environment

7.6. Practices to facilitate development of Teams in organizations

Organization Development facilitators should enable firms to hire team players by

putting all job candidates through demanding office-wide scrutiny. Performance

Incentives should be designed in such a manner that they are group-based and

performance appraisals should include team working as a criterion. Intra-team

conflicts should be resolved in the early stages Unresolved conflicts caused due to

employees` mutual bickering can kill office morale and productivity. Organizations

are deploying paid ombudsmen to help staffers get along and stifle office conflicts As

conflicts often arise in work teams, timely interventions to diffuse tensions and

strengthen members` interpersonal commitment should be introduced. A good team

relationship requires nurturing from a strong leader. Leaders might cling to the idea of

success being based on individuals, but the value of a great group must not be ignored



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by the leader. Effective interpersonal interaction would take place among team

players communicate more effectively.

OD process should result in the development of a comprehensive and sustainable in-

house leadership training program that would foster teamwork. The training

programs should enable employees to learn how to handle different types of

personalities. Towards the completion phase of team building intervention, team

members should be capable of avoiding reciprocal rudeness and maintenance of

unconditional politeness, escaping the trap of cliques, prevention of polarization of

members into opposing factions, perpetrating the value of teams, overcoming the

phenomenon of groupthink which occurs out of excessive demand for unanimity and

illusion of invulnerability of the group, understanding the power of group synergy and

social-facilitation in raising an organization`s productivity are quintessential qualities

of the members of winning teams.

9. Organizational Innovation


9.1. Definition of Innovation: Innovation is a process of receiving and using new

ideas to satisfy the stakeholders of an organization. It is the conversion of new

knowledge into new products and services. Innovation is about creating value and

increasing efficiency, and therefore growing business. It is a spark that keeps

organizations and people moving ever onward and upward. "Without innovation, new

products, new services, and new ways of doing business would never emerge, and

most organizations would be forever stuck doing the same old things the same old

way

9.2. Hard versus Soft Innovation

Hard Innovation is organized Research and Development characterized by strategic

investment in innovation, be it high-risk-high-return radical innovation or low-risk-

low-return incremental innovation. Soft Innovation is the clever, insightful, useful

ideas that just anyone in the organization can think up. Innovation is the key driver of

competitive advantage, growth, and profitability. There are many parts of the whole

field of innovation: strategy innovation, new product development, creative

approaches to problem solving, idea management, suggestion systems, etc. Innovation

is neither singular nor linear, but systemic. It arises from complex interactions



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between many individuals, organizations and their operating environment. Firms

which are successful in realizing the full returns from their technologies and

innovations are able to match their technological developments with complementary

expertise in other areas of their business, such as manufacturing, distribution, human

resources, marketing, and customer service.

Innovation requires a vision change, risk and upheaval. Innovation is not done for

innovation's sake. There must be a driving motivator compelling the organization to

develop the systems, resources and culture needed to support innovation. In today's

environment, that driver is survival in a world of rapid change. Innovation is

customer-driven and bottom-line focused. The purpose of innovation is to find better

ways to delight customers while meeting the needs of all other stakeholders and

creating a financially viable organization. Innovation requires a foundation of ethics

as it would flourish only in an environment of mutual trust and respect, not only

within the organization but also within the surrounding community and global

environment. Only such organizations develop a truly innovative approach to

problems and opportunities.

Innovation requires innovative thinking, which is a skill needed among every member

of the organization. It is the ability to constantly look for new possibilities, generate

ideas, think together productively, make sound decisions and gain the commitment

needed for rapid and effective implementation. Innovation begins with a clean slate in

which prior assumptions and the way things have always been done are set aside in

order to look at possibilities with a fresh perspective. Innovation looks at the whole

system. Creating solutions in one area that causes problems in another is not

innovation; it's chaos. Innovation requires a diverse, information- and interaction-rich

environment. People with different perspectives, working together toward a common

objective, with accurate, up-to-date information and the proper tools are the only

source of innovation.

Innovation requires a risk-tolerant environment. The creation of anything new

involves risk and the possibility of failure. An innovative environment honors nice

tries that didn't work as learning experiences and part of the innovation process.

Innovation involves and rewards every member of the organization. There are no

longer "thinkers" and "doers," "owners" and "workers." Innovation requires the very



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best thinking and doing from everyone and treats everyone as an "owner," equitably

sharing the rewards generated by those best efforts. Innovation is an on-going process.

It will never be a static state, which, once achieved, can be placed on a shelf and

forgotten. It requires constant renewal, reinvention and dedication. Innovation

requires a learning orientation as only by creating an environment where every

member of the organization is continuously learning more about its products, services,

processes, customers, technologies, industry and environment an organization could

successfully innovate year after year.

9.3. Blocks to innovation

Managers tend to nurture self-defeating Beliefs that fantasy and reflection are a waste

of time and that playfulness is for children only serve as block to innovation. Feelings

and intuition good besides reason, logic, numbers and practicality are. Similarly,

thinking that problem solving is serious business in which no fun or humor are

allowed would ruin chances of innovation. Preference to tradition over change and the

feeling that one is less creative are other barriers. Self-Imposed or Emotional Blocks

such as fear of failure, inability to tolerate ambiguity and hang out until the best

solution can be developed, inability to relax or incubate, or excessive zeal to succeed

quickly could mar innovations. Lack of persistence, stress or depression could also

affect innovations. Work Obstacles include lack of cooperation and trust among

colleagues, autocratic management, too many distractions and easy intrusions, lack of

acknowledgment or support of ideas and bringing them to action,

Intellectual or Expressive Blocks could result from lack of or incorrect information,

inadequate skill to express or record ideas verbally, visually and mathematically and

lack of intellectual challenge. Societal Pressures, Bombardment of information and

pressure to keep up, acceleration of the pace of life and time are threats to innovation.

An organization could be assessed to be innovative if at least 25% of their revenues

come from products and services developed in the past five years. consistently

outperform competition in things like customer service, quality, time to market, return

on investment and profitability, routinely solicit, listen to, and act on suggestions from

people from every level and function of organization, encourage and stimulate

interaction between departments and promote cross-functional projects and

improvement processes like Total Quality Management, reengineering, excellence,



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etc., regularly train people at all levels and in every function how to think and work

together more effectively.

It is imperative that people in organization regularly have time available to think

through situations, look at the big picture, improvise ideas and experiment with

possibilities, information is to be freely and readily available to everyone in

organization rather than on a need-to-know-basis. Organizations should regularly

review and update its assumptions, mission and goals and encourage everyone in the

organization to do so Ownership, rewards and risks, are to be distributed widely

through organization through stock ownership plans, or profit sharing plans. People

can be taught, encouraged and coached or counseled to be more creative. Four basic

creative strengths such as Flexibility, Fluency, Elaboration and Originality can be

easily encouraged in employees.



9.4. The Seven Levels of Change Model



Change could be understood at as seven increasing levels of difficulty, from easy to

virtually impossible. Each level is more radical, complex, and challenging than the

one preceding it. This Levels of Change model can be superimposed on the visions of

any department, division or organization, and then imbedded within its goals, culture,

and day-to-day environment. When a group moves from learning to doing, the model

quickly becomes an integral component of organizational behavior.



Level 1: Efficiency--Doing Things Right



At Level 1, the theme is Efficiency. The easiest change to make is learning to do

things right. This is often done with the help of an expert who understands an

operation and explains standard procedures in the hope of improving efficiency.

Changes at Level 1 are largely personal adjustments to new standards and procedures;

they incur low risk and require little effort.



Level 2: Effectiveness--Doing The Right Things





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At Level 2, the theme is Effectiveness. An organization develops an overall picture

by first gaining a thorough understanding of all aspects of an activity, then focusing

on actions that will give the largest contribution. According to the Pareto Principle,

20 percent of all the things being done, generally speaking, yield 80 percent of the

payoff. To maximize effectiveness, shift energy to that 20 percent (the right things),

and apply Level 1 thinking to Level 2 priorities to do the right things right.

Continuous improvement is often defined as simultaneously doing the right things and

doing them right. Someone who has made enough Level 1 and Level 2 changes to

become comfortable in a new situation is now competent. Thus moving through

Level 1 and Level 2--efficiency and effectiveness--involves change primarily at a

personal level.



Level 3: Cutting--Doing Away With Things



At Level 3, the theme is Cutting. Experts use the Pareto Principle to cut out the 80

percent of actions that yield only 20 percent of the value, and redirect those freed-up

resources to higher levels of change. In the simplest case, Level 3 change focuses on

eliminating waste. If this can be done systemically keeping all organizational

relationships, processes, and subsystems in perspective, major results can be

achieved. At this level, practitioners must initiative to correct processes quickly,

easily and inexpensively, without asking for upper management approval. Level 3

changes involve low risk and low effort, but they can directly improve an

organization's efficiency and be highly visible, both internally and externally.



Level 4: Enhancing--Doing Things Better



At Level 4, the theme is Better. Here experts analyze an organization`s core activities

(the fruitful 20 percent remaining after Level 3) and find out how to improve them.

Methods are found to speed up testing, move up deadlines, increase function, or cut

downtime. Work process redesigns are large-scale efforts to bring about Level 4

changes in combination with Level 3. Level 4 changes make things more effective,

more efficient, more productive, or more valuable.





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Level 5: Copying--Doing Things Other People are Doing



At Level 5, the theme is Copying. We see here the first clear transition from

incremental thinking to fundamental change. Copying, learning from others, and

reverse engineering can dramatically boost innovation, quickly and more cheaply

than starting from scratch. Benchmarking how other laboratories operate (regardless

of their industry) and then enhancing their discoveries and achievements (using Level

4 change) is the hallmark of the adaptable innovator. Many managers are still

uncomfortable at this level, partly because they are inwardly focused and therefore

remain unaware that others are doing things worth copying. In many organizations, a

"Not Invented Here" mentality resists imitation, forcing continual reinvention of the

wheel.



Level 6: Different--Doing Things No One Else is Doing



At Level 6, the theme is Different. We take a fork in the road--by doing something

very different or very differently. Such trailblazing and risk-taking can bring about

genuinely new things, often by synthesizing seemingly unconnected concepts,

technologies, or components--or by totally shifting perspective about possible uses of

a product. In process-oriented operations, Level 6 at the extreme combines Levels 3,4

and 5--cutting, enhancing, copying, and adapting--into reengineering:

revolutionizing processes and procedures so they become unrecognizable.



Level 7: Impossible--Doing What Can't be Done



At Level 7, the theme is Breakthrough. Technology, market constraints, resource

limitations, or company culture too often pose seemingly insurmountable barriers.

Discoveries at this level frequently build on paradigm shifts or audacious visions.

They produce bold, brilliant, significant and long-term forays into the unknown.

Change at this level reflects the highest degree of imaginative thinking and is almost

invariably seen by others as a revolutionary or shocking departure from convention.

Very few such changes are implemented as they were first conceived; instead, they

are quickly barraged with Level 4 criticisms aimed at eliminating their weaknesses.



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Those that survive often produce innovative spikes of new thinking, performance, or

technology. Level 7 changes can alter an existing industry or create a new one.

Lockheed Corporation's famous Skunk Works, for example, has continuously

produced quantum leaps in aircraft and space technologies. Lower levels of change

imply evolutionary, or incremental, improvements, while higher levels result in

revolutionary advances.



10. Learning organization

A learning organization is one that learns continuously and transforms itself. All

organizations learn, but not always in a beneficial way. It is possible for an individual

to learn, but not share this knowledge with the organization. On the other hand

organizations can learn and not share this knowledge with the staff at lower ranks. A

learning organization is one that has a heightened capability to learn, adapt, and

change. It is an organization in which learning processes are analyzed, developed,

monitored, and aligned with the innovative goals of the organization. (Cummings and

Worley, 1993). It is critical in today's global competitive marketplace for an

organization to maintain its position in a rapidly changing environment. A learning

organization can acquire and apply knowledge faster than the competition and

therefore maintain a leading edge. The need to survive in a changing economy has

pushed organization learning to the fastest growing intervention in organizational

development. New techniques emerge promising corporations the ability to become

learning organizations.

Among practitioners, the strongest case yet for organizational learning is made by

those who argue that the rate at which individuals and organizations learn may

become the only sustainable competitive advantage, especially in knowledge-

intensive industries, according to Locke and Jain, (1995). A firm whose core

competency is the rapid realization of new technology into products could be

described as a learning organization. Characteristics of the successful organization

are: a continuous improvement orientation, customer focus, team relationships, flat

and flexible organization structures, empowerment, and vision- and value-driven

leadership. These characteristics contrast sharply with those of many organizations,

which emphasize meeting static objectives, supervisor focus, strongly hierarchical



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relationships, vertical and fixed organizational structures, compliance with rules, and

control oriented leadership. When considering the impact of OD on organization

learning an OD practitioner may emphasize an open systems framework, create

models for defining shared organizational visions, and create approaches to mental

models. The idea of a learning organization is consistent with the theories of OD but

there is a large discrepancy between the number of descriptive articles written on the

subject and the number of experiments on them. OD has not been creating learning

organizations all along. There are a number of implications for OD which flow from

the definition of a learning organization. First there has to be a significant shift

between OD's focus and theories of change to one on theories which emphasize

change and learning. What needs to be learned is a new way of thinking about

organization action and improvement. Learning at the organizational level involves

creating systems to capture knowledge and support knowledge creation, as well as

empowering continuous transformation.

10.1. Organizations learn

All learning is individual learning, and there is no such thing as organizational

learning except metaphorically. All learning takes place inside human heads and an

organization can learn only by learning from its members or by ingesting new

members who have new knowledge that the organization did not already

possess.(Locke and Jain, 1995) With this in mind, it is also useful to identify learning

at three different levels: individual, group and organizational. Learning organizations

concentrate on systems-level organizational learning. It is more then the sum of

employees mental capacity and ability to learn. It occurs when organizations merge

and then institutionalize employee's intellectual capital and learning that are stored in

their memories and their core competencies.


Organizations also serve as holding environments for learning, which is stored in

people's memories and values, as well as in organizational memory in the form of

polices, procedures, and written documents. Learning organizations create practices,

which enable organizational wide collecting of information that can be shared so that

all individuals have access to the same information. They embed among people new

structures and practices, which enable learning to occur more effectively.



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Organizations preserve behaviors, norms, values, and "mental maps" over time. An

organization builds its culture as it addresses and solves problems of survival. It also

creates core competencies that represent a collective learning of its employees, which

include past and present employees. As new members of the organization join and old

ones leave the knowledge and competencies are transferred because they remain part

of the culture. A central feature to most conceptualizations of organizational learning

is the idea that there is a higher order of learning involved than the type of technical,

skill-based learning associated with training departments. This depth of learning for

individuals is more cognitive and transformative. It is not a rote skill, but learning that

transforms or changes perspectives, structures, and routines. Learning is not one

transformation of the organization but a continuous transformation and the

transformation of the mind. Some believe that this requires a shift of practice in OD

from OD as the exclusive practice of an expert professional to OD as a tool, which

must be transferred to many members of the organization.

10.2. Effects of organizational learning experiences

Organizations can learn the wrong thing, for example how to manufacture something

no one wants, or can reach false conclusions. Learning does not always result in the

benefit of the organization's goals and researchers need to move away from a

conception of organizational learning as an "efficient" instrument to an appreciation

of its "inefficiencies". Some counterproductive performance implications are

provided. Superstitious learning occurs when an organization interprets certain results

as outcomes of learning when in fact there may be little or no connection between

actions and outcomes. In a typical situation, a number of factors jointly produce an

organizational outcome. Success learning involves concluding that what made for

success in the past will make for success in the future. This can be disastrous when

the business environment changes drastically. A competency trap develops when an

organization settles on an inferior technology based on its initial experimentation and

persists in using it despite the availability of superior technologies. (Locke and Jain,

1995)

10.3. Process through which organizations learn

Organizational learning consists of four interrelated processes: discovery,

intervention, production, and generalization. The learning process begins with the



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discovery of errors or rifts between actual and desired conditions. Diagnosing

includes finding the cause of the gap and inventing appropriate solutions to close it.

Production processes involve implementing solutions and generalization includes

drawing conclusions about the effect of the solutions and applying that knowledge to

other relevant situations. These four learning processes help the organization's

members to generate knowledge necessary to change and improve the organization.

(Cummings and Worley, 1993)

Most models of learning in organizations stress the element of leadership and

management, culture, and systems for communication, information, and knowledge.

In learning organization leaders and managers give critical support to the learning of

teams and individuals. Leaders and managers have enough influence to create a

successful learning environment. They have the ability to furnish the systems that

encourage learning. They can assist in the development of employees' knowledge,

skills, and abilities with the aid of personal development plans, job rotations, and

assignments across several divisions. In learning environment, managers encourage

people to contribute ideas and go as far as soliciting their input and giving feedback

on their ideas. When information is shared on a regular basis across the organization,

people's commitment to learning strengthens.



Organizations learn from direct experience and from the experience of others.

Learning from direct experience generally involves working through incremental

refinement procedures. The rational for learning from direct experience comes from

the common observation that practice improves performance. It involves a systematic

"organizational search" whereby the organization "draws from a pool of alternative

routines, adopting better ones when they are discovered" and/or trail and error

experimentation. Learning from the experience of others may involve a number of

approaches, ranging from merely observing others to actively seeking knowledge

from outside the organization, then using it to improve its own processes and

performance. (Locke and Jain, 1995)



Three perspectives on learning and change are normative, developmental, and

capability. These different approaches shape the direction that companies take to



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become learning organizations. Normative and developmental perspectives assume

that organizations learn only when certain conditions are met. Normative based

approaches are the most common and companies using such approaches begin by

deciding to leverage learning in pursuit of a particular business goal. Leaders are

important because they set the tone, establish the vision, and create supporting

structures and systems. Internal task forces test for individual's commitment, help

identify present and future conditions, measure and prioritize gaps, and make

decisions about where and how to intervene.

Normative approaches foster a willingness to experiment. The results of these new

initiatives are checked constantly and used to adjust interventions, launch new project

phases, and periodically assesses the learning organization strategy. Developmental

approaches assume that companies become learning organizations in a series of

stages. These approaches seek fundamental changes in an entire system and favor

organizational-wide development effort. Developmental approaches begin with the

recognition that the organization is not meeting its objectives. It is typical for a

consultant to partner with the company's leaders to conduct as assessment using

diagnostic tools to gauge progress through each stage. The transition from one stage

to another does not have to be even, different parts of the organization may move

forward at different times.

Capability-based approaches assume that organizations learn naturally as they

respond to change, no matter what the conditions are. It assumes that no one form of

learning is superior over another. To improve learning, an organization must discover,

affirm, and enhance the current patterns of learning. Leaders need to identify those

patterns so that they can make informed decisions about what to learn, who should

learn it, and when and where learning should happen. These approaches are not

proactive and "unfold as journeys of discovery" in which consultants and leaders

guide the company to uncover insights into the kind of learning that is the best. There

are a variety of useful diagnostic tools that reflect the three perspectives. All of the

tools emphasize organizational learning. Some of these tools focus only on individual

and team building and most measure learning at two or three levels. Most emphasize

the systems and processes for facilitating the flow of information between employees,

for managing knowledge, and for rewarding learning in performance appraisals. Most



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also stress a culture that emphasizes learning while at the same time caring about

employees.



10.4. Factors that can undermine organizational learning

Organizations are often faced with a number of barriers to learning, the most

important being the lack of learning orientation. In order to identify the tools and

techniques of organizational learning it will be useful to identify possible barriers to

avoid. Barriers to organizational learning can be classified into three broad categories,

individual- and group-level, organizational, and environmental. Since an organization

can learn only through its members, any limitations the members have with respect to

learning will limit organizational learning. (Locke and Jain, 1995) Argyris has stated

that most people, including highly qualified and successful professionals, do not know

how to learn. The fundamental requirement for learning is an active mind. The lack of

learning most basically stems from not thinking, either due to passivity or an active

refusal to think either in general or about a specific issue. Some people do not learn

from experience because they do not conceptualize the meaning and implications of

what happened in the past. It is believed that the most effective learners are the most

mentally active and are able to conceptualize what happened in the past and anticipate

the

future.

(Argyris,

1993)



Learning barriers at the organizational level include organizational features such as

corporate culture, management practices (for example, defensive routines), reward

mechanisms, and an emphasis on organizational consensus, which may create

groupthink and organizational inertia which limit learning and future growth. Others

include failure of the organization to translate newly acquired knowledge into

organizational policies, procedures, and routines as well as a focus on the exploitation

of existing capabilities and opportunities, in preference to exploitation and

experimentation. There are many more barriers to contend with and they often work

in subtle ways to undermine learning. (Locke and Jain, 1995). Environmental barriers

pertain to markets, industries, technology, public policy, and external stakeholder

concerns. Environmental factors are generally thought to be outside of the control of

an organization, but an organization is part of the environment and therefore has the



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power to also shape the environment. As never before, an organization must be aware

of its environment and change it in order to remain successful in the present context.

10.5. Impact of OD on learning organization

It is important to consider what the practice of OD already offers to the process of

organizational learning to ascertain the direction in which this application is headed

for the future. The literature presents three ways in which OD may contribute to the

focus of learning organizations: supportive systems of interaction, guiding values, and

a sense of structural alternatives. Supportive systems interaction: OD rests on a

technology-cum-values for inducing useful "systems of interaction" between people.

Researchers draw on Argyris' concept of Model I (closed or degenerative) and Model

II (open or regenerative) to depict the range of interaction patterns. A substantial

proportion of managers lean toward the degenerative model in practice but away from

it in personal preference. They blame their work sites and claim that there is nothing

that they can do to change it. In training sessions they are shocked to learn that their

own behavior, as well as the work site, is degenerative. Learning organizations also

require a regenerative interaction, both in its start up phases as well as in the long run.

Here OD can contribute in theory and practice. This is one of the most challenging

aspects of creating a learning organization because when practitioners are focused on

dialogue or on changing mental models they are faced with deeply embedded norms.



The learning organization approach faces that issue of the institutionalization of the

products and allied processes. The learning organization continually expands its

capacity to create its future. This involves a basic mind-shift from "focusing on parts

to dealing with wholes, from viewing people as helpless reactors to empowering them

as observant participants, and from reacting to the past and the present toward

evolving a common future". (Watkins and Golembiewski, 1995) These sound very

much like OD values mentioned earlier and at the structural level the OD tools

include job enrichment at operating levels of the organization, flow-of-work or

divisional models at executive levels, and structural and policy empowerment

throughout organizations. OD has developed the tools and processes which make it

possible to create learning organizations. These tools generate a sense of alternative



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strategies, of the availability of different approaches to building learning

organizations.

10.6. Changes in OD is implied by the learning organization

The literature talks of sculpting learning organizations by clipping away all that

prevents learning and building new systems and capacities to enhance learning. It is

suggested that there is no blueprint or set of standard tools for creating learning

organizations, but rather the idea functions like a vision of the organization in terms

what it might be in contrast to what it is today. The achievement of that vision

requires the work of everyone in the organization, not just the OD practitioner or top

executives. There are no specific changes in OD practice that can be assigned to the

formation of a learning organization. The learning organization requires an integrated

use of management tools such as cross-functional self managed teams, training tools

such as career development, and organization development tools such culture change

and action research. While there may eventually be many tools for OD suggested by

the learning organizational literature, there are two core processes at the issue. The

first concept is dialogue and the other relates to shifts in practices of OD.

An underlying process in designing learning organizations is the use of extended

dialogue at the micro and macro levels. Some new approaches used by designers of

organizational learning includes action science that uses dialogue as a process of

creating shared meaning by changing the mental models of individuals who are the

recipients of the shared values and learned theories of action of the organization.

Organizations and individuals are able to transform governing values from those

dominated by control or self-protection to those consistent with learning and growth.

They are able to achieve this objective by combining advocacy with inquiry, taking a

closer look at actual dialogue in order to uncover the data on which inferences are

made, and recognizing the constructive rules governing both inferences and action.


10.7. Basic Tenets of Learning Organization

Peter M. Senge describes a learning organization as an organization "where people

continually expand their capacity to create the results they truly desire, where new and

expansive patterns of thinking are nurtured, where collective aspiration is set free, and

where people are continually learning how to learn together" (Senge 1990). At the



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core of a learning organization are five disciplines of the learning environment. Senge

stresses that disciplines are to be practiced. These disciplines cannot be learned and

achieved without practice over time. The five disciplines are interrelated and include:



Personal Mastery: learning to expand our personal capacity to create the

results we most desire, and creating an organizational environment which encourages

all its members to develop themselves toward the goals they choose.



Mental Models: reflecting upon, continually clarifying, and improving our

internal pictures of the world, and seeing how they shape our actions and decisions.

Mental models are the assumptions and stories we carry with us about others and

ourselves. Mental models help us function but do not always correlate with reality.



Shared Vision: building a sense of commitment in a group, by developing

shared images of the future we seek to create, and the principles and guiding practices

by which we hope to get there. Everyone contributes to the shared vision. Creating a

vision is an evolutionary process.



Team Learning: transforming conversational and collective thinking skills,

so that groups of people can reliably develop intelligence and ability greater than the

sum of individual members' talents. This is our collective capacity to do something. In

team learning there is less authority and more emphasis on collaboration and

facilitation. There is a great deal of trust among and between members.



Systems Thinking: It is a way of thinking about, and a language for

describing and understanding, the forces and interrelationships that shape the behavior

of systems. This discipline helps us see how to change systems more effectively, and

to act more in tune with the larger processes of the natural and economic world.

Systems` thinking serves as the cornerstone for the other disciplines (Senge 1994).

Systems` thinking incorporates eleven ideas called 'laws' which could be listed as

follows:

1. Today's problems are the results of yesterday's solutions. For example, workload

could be a result of procrastination or faulty delegation.

2. The cure can be worse than the disease: The steps taken by organizations to solve

problems of indiscipline or misuse of office could bring in fresh problems like

lowering morale among employees.



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3. Faster is slower: Haste makes waste.

4. The easy way-out usually leads back in: Flying away from reality would only

compound to the problems.

5. The harder one tries to push the system, the system pushes back: Some times, it

could be wise to circumvent the system rather than directly confronting it.

6. Cause and effect are not closely related in time and space: It takes time for an effort

to yield result and the result might be seen elsewhere other than the place of effort.

7. Most of the changes are produced by few of the causes: This idea reflects the

Pareto principle or the 80:20 rule.

8. Behavior grows better before it grows worse: The real intentions behind people's

overt behaviors tend to be exposed sooner or later.

9. Dividing an elephant does not make two half-elephants: Restructuring

organizations and shuffling of teams could be a costly mistake.

10. You can have the cake and eat it too, but not at the same time: Each individual in

an organization must at first identify what one's desired end-results (cakes) and design

the path appropriately so that work is intrinsically satisfying.

11. There is no blame: In the ultimate analysis, every action would have its own

justification.

Learning about the five disciplines will help staff develop an understanding of

themselves and the organization. In addition, the key guiding principles outlined

below draw attention to the environment progressive learning organizations want to

create:



Focus on the customer



Commitment to quality



Teamwork and partnerships



Incorporation of best practices and continuous improvement



Continuous learning and education



Continuous change when it leads to improvement



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An overarching element of these guiding principles is the notion of continuous

learning and education. The firms strive to build an environment where the focus is on

the individuals who make up the organization as well as the organization itself. In

order to begin, the firms must develop a culture of learning. All staff are required to

be key partners in this endeavor. For the learning initiative to be a success, each staff

member must take individual responsibility for personal growth and learning that

works toward a role each member has in shaping the organization. There is an

important connection between who we are as individuals and the effectiveness and

success of our (Shaughnessy 1995). Becoming a learning organization requires a

commitment to the ongoing process of learning, growth, and development that is

shared by all participants.



Senge (1990) defines the Learning Organization as the organization in which one

cannot not-learn` because learning is so insinuated into the fabric of life. Also, he

defines Learning Organization as "a group of people continually enhancing their

capacity to create what they want to create." Learning Organization is an

"Organization with an ingrained philosophy for anticipating, reacting and responding

to change, complexity and uncertainty." The concept of Learning Organization is

increasingly relevant given the increasing complexity and uncertainty of the

organizational environment. Senge (1990) remarks: "The rate at which organizations

learn may become the only sustainable source of competitive advantage." McGill

(1992) define the Learning Organization as "a company that can respond to new

information by altering the very "programming" by which information is processed

and evaluated."



10.8. Organizational Learning vs. Learning Organization

Ang & Joseph (1996) contrast Organizational Learning and Learning Organization in

terms of process versus structure. McGill though. (1992) do not distinguish between

Learning Organization and Organizational Learning. They define Organizational

Learning as the ability of an organization to gain insight and understanding from

experience through experimentation, observation, analysis and a willingness to

examine both successes and failures. The changes within the phases of OD practice

must be considered along with a system- diagnosis focused on learning. While the



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design of the learning organization is similar to the open systems espoused by OD,

there is an attempt to freeze systematic and habitual practices to insure continuous

improvement. The focus is on systematic enablers and barriers versus short-term

symptoms. One feature of organizational diagnosis is to examine the current level of

investment in learning as exploration and to identify the threshold of real skill

development that has resulted from previous change efforts. Organizations have a

history of exploiting new ideas and technologies without paying the same mount of

attention to the more time intensive process of creative exploration. Organizations

have developed a habit of quick fix solutions that result in bad superficial learning

while ignoring the development of a sufficient threshold of adaptability. Canadian

economist Nuala Beck has created a knowledge ratio, which is an index of a

company's investments in knowledge workers and in knowledge creation. Indicators

predict organizations that will thrive in the new information economy. These

measures constitute one reliable index of macro system learning in the learning

organization. (Beck, 1992)



10.9. Intervention focused on long term empowerment

There are no specific interventions employed by organization developers working to

create learning organizations even though there are many tools and strategies.

Organization developers at General Electric and Johnsonville Foods have emphasized

the importance of long term strategies that empower. Organizations are described by

some consultants as a collective group that can collect its own data and share it with

the entire organization instead of the consultant collecting the data and presenting it to

a select group of top executives. The trend of consulting seems to be headed towards

OD practitioners giving up their technology and teaching everyone OD. In order to

create structures for this kind of system wide dialogue and transformation, individuals

at all levels of the organization are being called on to become process consultants: to

facilitate dialogue, to collect diagnostic data, and to share it up the organization. By

making OD accessible, organizations will be better able to utilize it successfully. At

firms like the General Electric every member of the organization participate in Work

Out sessions intended to teach skills of consensus, negotiation, and decision making

to individuals representing a multitude of levels and functions. Over time, these



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individuals are expected to be able to continuously do what organization developers

might have once facilitated as inter-group conflict resolution or work redesign.

One of the strongest tools for building the learning organization is the use of action

technologies. Action research has many strong new variations such as participatory

action research, action learning, and action science. Since action research is grounded

in the context but yet data based, it is a highly flexible tool for learning among groups

and organizations. These action technologies involve groups and the organization in

both diagnosing and implementing their own changes. In addition, a central skill in

action research is reflection. Through the process of making change, individuals learn

how to work more effectively in teams, how to learn from actual work activities

through reflection, and how to manage a change effort.



10.10 Research on the effectiveness of Organizational Learning

The primary purpose of organizational learning is to make companies more adaptive

and capable of altering functions and departments in response to poor performance or

changes in the work environment. Whether the purpose is realized depends on the

factors that link organizational learning to actions and that link actions to targeted

outcomes. Research has showed that organizational learning has had a positive effect

on the perceived and actual financial performance of companies. For individual

employees, organizational learning has had a significant effect on employee-

performance measures in such areas as continuous improvement, customer focus,

employee commitment, and overall work performance. Research also shows that

experimentation significantly enhances innovation but not competitiveness;

continuous improvement and knowledge acquisition enhance competitiveness, but not

innovation. The client of the OD intervention is the organization of the future. The

OD effort to create a learning organization is one in which the goal is to put systems

in place that will help the organization face the challenges it will meet 20 years in the

future. The learning organization is a compelling argument for increasing efforts to

move beyond short-term work aimed at only the top management. Organizations need

to be looking toward learning not for survival but for generatively. The learning

organization is a tentative road map to a never-ending journey.





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10.11. Adaptive Learning vs. Generative Learning



Adaptive learning, is about coping. Senge (1990) notes that increasing adaptive

quality is only the first stage; companies need to focus on Generative Learning or

"double-loop learning" (Argyris 1977). Generative learning emphasizes continuous

experimentation and feedback in an ongoing examination of the very way

organizations go about defining and solving problems. In Senge's (1990) view,

Generative Learning is about creating - it requires "systemic thinking," "shared

vision," "personal mastery," "team learning," and "creative tension" between the

vision and the current reality. Generative learning requires new ways of looking at the

world. In contrast, Adaptive Learning or single-loop learning focuses on solving

problems in the present without examining the appropriateness of current learning

behaviors. Adaptive organizations focus on incremental improvements, often based

upon the past track record of success. Essentially, they don't question the fundamental

assumptions underlying the existing ways of doing work. The essential difference is

between being adaptive and having adaptability. To maintain adaptability,

organizations need to operate themselves as experimenting or self-designing

organizations, i.e., should maintain themselves in a state of frequent, nearly-

continuous change in structures, processes, domains, goals, etc., even in the face of

apparently optimal adaptation. Operating in this mode is efficacious, perhaps even

required, for survival in fast changing and unpredictable environments. The reason is

that probable and desirable consequences of an ongoing state of experimentation are

that organizations learn about a variety of design features and remain flexible. Senge

(1990) argues that the leader's role in the Learning Organization is that of a designer,

teacher and steward who can build shared vision and challenge prevailing mental

models. He is responsible for building organizations where people are continually

expanding their capabilities to shape their future. That is, leaders are responsible for

learning.



10.12. Relationship between Strategy and Learning Organizations



The key is not getting the right strategy but fostering strategic thinking. Shell, a

transnational corporation leveraged the concept of Learning Organization in its credo



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"planning as learning. Faced with dramatic changes and unpredictability in the world

oil markets, Shell's planners realized a shift of their basic task: "We no longer saw our

task as producing a documented view of the future business environment five or ten

years ahead. The real target was the microcosm (the 'mental model') of decision

makers." They re-conceptualized their basic task as fostering learning rather than

devising plans and engaged the managers in ferreting out the implications of possible

scenarios. This conditioned the managers to be mentally prepared for the uncertainties

in the task environment. The key ingredient of the Learning Organization is in how

organizations process their managerial experiences. Learning Organizations`

managers learn from their experiences rather than being bound by their past

experiences. In generative learning organizations, the ability of a manager is not

measured by what he knows (the product of learning), but rather by how he learns -

the process of learning. Management practices encourage, recognize and reward

openness, systemic thinking, creativity, efficacy and empathy.



10.13. Role of Information Systems in the Learning Organization



Huber (1991) explicitly specifies the role of IS in the Learning Organization as

primarily serving Organizational Memory, it can serve the other three processes,

Knowledge Acquisition, Information Distribution and Information Interpretation. At

the level of planning, scenario planning tools can be used for generating the possible

futures. Similarly, use of intranets, e-mail and bulletin boards can facilitate the

processes of Information Distribution and Interpretation. Archives of the

communications can provide the elements of the Organizational Memory.

Organizational Memory needs to be continuously updated and refreshed. The IT basis

of OM suggested by Huber (1991) lies at the basis of organizational rigidity when it

becomes "hi-tech hide bound" (Kakola 1995) and is unable to continuously adapt its

"theory of the business" (Drucker).



10.14. Assessment of a Learning Organization

Creating the environment to become a learning organization is as important as

knowing when a firm becomes one. Both processes require an ongoing effort of



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growth and change. Belasen, in Leading the Learning Organization, mentions

qualities used to characterize a learning organization. Organizations that strive to be a

learning organization should have these qualities:



Learning collaboratively, openly, and across boundaries



Valuing how we learn as well as what is learnt



Investing in staying ahead of the learning curve in a particular industry



Gaining a competitive edge by learning faster and smarter than competitors



Turning data into useful knowledge quickly and at the right time and place



Enabling every employee to feel that every experience provides him or her

with a chance to learn something potentially useful, even if only for leveraging future

learning



Exhibiting little fear and defensiveness, and learning from what goes wrong

("failure" learning) and what goes right ("success" learning)



Taking risks while simultaneously avoiding jeopardizing the basic security of

the organization



Investing in experimental and seemingly tangential learning



Supporting people and teams who want to pursue action-learning projects



Depoliticizing learning by not penalizing individuals or groups for sharing

information and conclusions

In addition, as a learning organization, an organization would begin to operate in a

different manner and will:



Use learning to reach its goals



Help people value the effects of their learning on their organization



Avoid repeating the same mistakes



Share information in ways that prompt appropriate action



Link individual performance with organizational performance



Tie rewards to key measures of performance



Take in a lot of environmental information at all times



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Create structures and procedures that support the learning process



Foster ongoing and orderly dialogues



Make it safer for people to share openly and take risks (Belasen 2000)

8. 1.



8. Inter-group OD interventions.



8.1. Inter-group Team building intervention intends to increase communications and

interactions between work related groups to reduce the amount of dysfunctional

competition and to replace a parochial independent point of view with an awareness

of the necessity for interdependence of action calling on the best efforts of both the

groups. Inter-group interventions are integrated into OD programs to facilitate

cooperation and efficiency between different groups within an organization. For

instance, departmental interaction often deteriorates in larger organizations as

different divisions battle for limited resources or become detached from the needs of

other departments. Conflict resolution meetings are one common inter-group

intervention. First, different group leaders are brought together to get their

commitment to the intervention. Next, the teams meet separately to make a list of

their feelings about the other group(s). Then the groups meet and share their lists.

Finally, the teams meet to discuss the problems and to try to develop solutions that

will help both parties. This type of intervention helps to gradually diffuse tension

between groups caused by lack of communication and misunderstanding.



8.2. Rotating membership: Such interventions are used by OD change agents to

minimize the negative effects of inter-group rivalry that result from employee

allegiances to groups or divisions. The intervention basically entails temporarily

putting group members into their rival groups. As more people interact in the different

groups, greater understanding results. OD joint activity interventions serve the same

basic function as the rotating membership approach, but it involves getting members

of different groups to work together toward a common goal. Similarly, common

enemy interventions achieve the same results by finding an adversary common to two

or more groups and then getting members of the groups to work together to overcome



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the threat. Examples of common enemies include competitors, government regulation,

and economic conditions.



8.3. Characteristics of inter-group conflict: Inter group conflicts are characterized by

perception of the other as the enemy, stereotyping, constipated, distorted and

inaccurate communication and stoppage of feedback and data input. Each group

begins to praise itself and its products more positively and believes that it can do no

wrong and the other can do no right. There might even be acts of sabotage against the

other group. Using the idea of a common enemy outside the group that both groups

dislike to bring them closer, increasing interaction and communication under

favorable conditions and finding a super - ordinate goal that both groups desire.

Rotating members of the group, Training, etc are helpful strategies that have been

used to deal with inter-group conflict Inter-group team building intervention : The aim

of this type of intervention is to increase communication and interaction, reduce

unhealthy competition. Blake, Shepard and mouton came up with a method which is

used between groups that are strained and overly hostile.



8.4. The process is to obtain commitment from the leaders of each group on their

willingness to find procedures that will improve inter group relations. Groups are put

in different rooms. The task of each group is to generate two lists. They should put

down thoughts, attitudes, perceptions and feelings about the other group, predict what

the other group will say about them. The groups come together and share their lists.

No comments or discussions, only clarity. The groups reconvene to discuss their

reactions to what they have learned about themselves from what the other group has

said identify issues that still need to be resolved between the two groups. The two

groups come together and share their lists, they set priorities, and they generate action

steps and assign responsibilities. A follow up meeting is convened to ensure that the

action steps have been taken. The method can be used with more than two groups

where the hostility between the groups may not be extreme or severe. In this method,

each group, separately compiles two types of lists namely a positive feedback list, a

bug list and an empathy list. The two groups come together and share the lists; there is

no discussion, except for seeking clarification. The total group generates a list of

major problems and unresolved issues between the two groups. These issues are



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ranked in terms of importance. Sub groups are formed with members from each

group, who then discuss and work through each item. The sub-groups report to the

larger group. On the basis of the report back and all the other information gathered,

the group proceeds to: generate action steps for resolving the conflict, assign

responsibilities for each step and record a date by which the steps ought to have been

carried out. With this method the two groups work together effectively



8.5. Walton`s approach to third party peace making interventions has a lot in common

with group interventions but it is directed more towards, interpersonal conflict. Third

party interventions involve confrontation and Walton outlines confrontation

mechanisms. A major feature of these mechanisms is the ability to diagnose the

problem accurately.



The diagnostic model is based on four elements namely the conflict issues,

precipitating circumstances, conflict-related acts and the consequences of the conflict.

It is also important to know the source of the conflict. Sources could be substantive

issues, which is conflict related to practices, scarce resources, and differing

conceptions of roles and responsibilities. Sources of conflicts could also be emotional

issues, involve feelings between the parties, such as anger, hurt, fear, resentment, etc.

The former require bargaining and problem solving. The latter require restructuring

perceptions and working through negative feelings.



Ingredients of a productive confrontation include the following. Mutual positive

motivation, which refers to the willingness on both parties resolve the conflict;

Balance of power without any power differentials between the parties involved in a

confrontation; Synchronization of confrontation efforts wherein the two parties

address the conflict simultaneously; and Differentiation and integration of different

phases of the intervention must be well paced. The intervention involves working

through negative feelings and ambivalent positive feeling. The intervention must

allow sufficient time for this process to take place. Conditions that promote openness

should be created. This could be done through setting appropriate norms and creating

a structure that encourages openness. Reliable communicative signal refers to using

language that is understood by the parties involved in the confrontation. Optimum



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tension in the situation means that the stress experienced by both parties ought to be

sufficient to motivate them but not too excessive. General principles on negotiation

involve approaches to people, interests, options and criteria. People have different

feelings and perceptions therefore it is important to separate people from feelings.

Interest. Looking at party interests provide a vehicle for resolving conflict rather

sticking to inflexible positions that entrench the conflict. Options ought to be

generated in order to come up with best option for resolving conflict. Criteria for

evaluating the success of the intervention ought to be clear and objective.



Summary



OD interventions continue to evolve from strengths to strengths. While some of the

first generation contributors included Chris Argyris (learning and action science),

Warren Bennis (tied executive leadership to strategic change), Edger Schein (process

approach), and Robert Tannenbaum (sensitize OD to the personal dimension of

participant's lives), second Generation contributors included Warner Burke (make OD

a professional field), Larry Greiner (power and evolution), Edward Lawler III, (OD

linked reward systems and employee involvement), Newton Margulies and Anthony

Raia (values underlying OD), and Peter Vaill and Craig Lundberg (developing OD as

a practical science). Recent contributors to OD include Dave Brown (action research

and developmental organizations), Thomas Cummings (socio-technical systems) self-

designing organizations, and trans-organizational development), Max Elden (political

aspects of OD), and Jerry Porras (put OD on a sound research and conceptual base).



Glossary of terms used in the unit



Consultants: An outside individual who supplies professional advice or

services to companies for a fee. Large HR consulting firms include Aon,

Mercer, Hewitt and Watson Wyatt. Large HR consulting firms typically work

with companies who have more than 1,500 employees.



Organization: It is a particular pattern of structure, people, tasks and

techniques.



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Organizational Development: A planned organization-wide effort to

improve and increase the organizations effectiveness, productivity, return on

investment and overall employee job satisfaction through planned

interventions in the organization's processes.



References

Albrecht, K. 1983. Organization Development. Englewood Cliffs, NJ: Prentice-

Hall.

Argyris, C. (1990) Overcoming Organizational Defenses. Boston : Allyn &

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Argyris, C. (1993). On Organizational Learning. Oxford England: Blackwell

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Benny, K.D. 1964. History of the T-Group in the laboratory setting. pp. 80-135,

in: Bradford, L.P., Gibb, J.R., & Benny, K.D. (eds) T-Group Theory and

Laboratory Methods. New York, NY: John Wiley.

Benny, K., Bradford, L.P., & Lippitt. 1964. The Laboratory Method. pp. 15-44,

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Laboratory Methods. New York, NY: John Wiley.

Bennis, W. 1969. Organization Development: Its Nature, Origins, and

Prospects. Reading, MA: Addison-Wesley.

Berne, E. 1966. Principles of Group Treatment. New York, NY: Oxford

University Press.

Bettelheim, B. (1943) "Individual and Mass Behavior in Extreme Situations,"

Journal of Abnormal and Social Psychology.

Bohm, D. (1989) On Dialogue. Ojai, CA.: Ojai Seminars.

Blake, R.R., & Mouton, J.S. 1978. The New Managerial Grid. Houston, TX:

Gulf Publishing.

Bowen, D.D., & Nath, R. 1978. Transactional analysis in OD: Applications

within the NTL model. Academy of Management Review, 3 (1): 79-80.



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Burke, W.W. 1982. Organization Development. Boston, MA: Little Brown.

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Burke, W. Current Issues and Strategies in Organization Development. New

York, NY: Human Science Press.

Cummings, Thomas G. and Worley, Christopher G. (1993). Strategic

Interventions: Organizational Development and Change. South-Western

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Foster, M. (1967). Organizational Development and Change. South-Western

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French, Wendell L., and Cecil H. Bell. (1994) Organizational Development:

Behavioral Science Interventions for Organization. 5th ed. Englewood Cliffs,

NJ: Prentice Hall.

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Doubleday.

Goffman, E. (1967) Interaction Ritual. N. Y.: Aldine.

Golembiewski, R.T., Prochi, C., & Sink, D. 1981. Success of OD applications

in the public sector: toting up the score for a decade, more or less. Public

Administration Review, 41: 679-682.

Hellriegel, D., Slocum, J.W., Jr, & Woodman, R.W. 1983. Organizational

Behaviour. St. Paul, MN: West.

Lawrence, P.R., & Lorsch, J.W. Organization and Environment. Boston, MA:

Harvard University.

Leavitt, H.J. 1964. Applied organizational changes in industry: structural,

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NY: John Wiley.

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Pasmore, W.A. 1988. Designing Effective Organizations. New York, NY: John

Wiley.

Schein, E.H. 1969. Process Consultations: Its Role in Organization

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Schein, E. H. (1968) "Personal Change Through Interpersonal Relationships."

In Bennis, W. G., Schein, E. H., Steele, F. 1. & Berlew, D. E. (Eds.)

Interpersonal Dynamics. Rev. Ed. Homewood, 111.: Dosey Press.

Schein, E. H. (1987) Process Consultation. Vol. 2. Reading , MA.: Addison-

Wesley.

Schein, E. H. (1988) Process Consultation. Vol. 1 (Rev. Ed.!. Reading , Ma.:

Addison-Wesley.

Schein, E. H. (1992) Organizational Culture and Leadership. 2d. Ed. San

Francisco , CA.: Jossey Bass.

Schein, E. H. (1993) How Can Organizations Learn Faster The Challenge of

Entering the Green Room. Sloan Management Review, 34, 85-92.

Schein, E. H. (!993) On Dialogue, Culture and Organizational Learning.

Organizational Dynamics, Winter, 40-51.

Senge, P. (1990) The Fifth Discipline. N.Y.: Doubleday, 1990.

Senge, P.M.(1994): The Fifth Discipline: The Art and Practice of the Learning

Organization. Century Books: London.

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Leavitt, H.J. 1962. Applied organization and readings. Changes in industry:

structural, technical and human approach. in: Cooper, W.W., et al. New

Perspectives in Organization Research. New York, NY: Wiley.

Katz, D., and Kahn, R.L. 1978. The Social Psychology of Organizations. New

York, NY: Wiley



Survey Research Feedback: Kurt Lewin formed the Research Center for Group

Dynamics at MIT in 1945. After he died in 1947, his staff moved to the University of

Michigan to join the Survey Research Center as part of the Institute for Social

Research. It was headed by Rensis Likert, a pioneer in developing scientific

approaches to attitude surveys (five-point Likert scale).

Action Research: In the 1940s John Collier, Kurt Lewin, and William Whyte

discovered that research needed to be closely linked to action if organizational

members were to use it to manage change. Action research has two results: 1)

organizational members use research on themselves to guide action and change, while

2) researchers were able to study the process to gain new information. Two noted

action research studies was the work of Lewin and his students at the Hardwood

Manufacturing Company (Marrow, Bowers & Seashore, 1967) and the Lester Coch

and John French?s classic research on overcoming resistance to change (Coch &

French, 1948).

Productivity and Quality-of-Work-Life (QWL): This was originally developed in

Europe during the 1950s and is based on the work of Eric Trist and his colleagues at

the Tavistock Institute of Human Relations in London. This approach examined both

the technical and the human sides of organizations and how they are interrelated.



Emerges From Three Backgrounds

French (Varney 1967) describes the history of OD as emerging about 1957 and

having at least three origins:



1. Douglas McGregor's work with Union Carbide in an effort to apply some of the

concepts from laboratory training (see above) to a large system.

2. A human relations group at the Esso Company that began to view itself as an

internal consulting group offering services to field managers, rather than as a research



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group writing reports for top managers. With help from Robert Blake and Herb

Shepard, the group began to offer laboratory training in the refineries of Esso.

3. The Survey Research Center (see above) started using attitude surveys.



Emerged in the Space Age

The years 1960-1970 was a period of rapid movement in high technology (space race

due to Soviet Sputnik challenge). HRD (Human Resource Development) efforts

increased as we moved into project groups and task forces to cope with the challenge

of new technologies. Behavioral science was brought into the work place, and a new

term appeared -- APPLIED behavioral science. This provoked a term that became

known as OD, due in part to the reaction HRD programs appeared to be effective, but

had little or no impact on the work place. That is, HRD programs were based upon

sound learning principles, and people learned, but the learning often failed to be

applied to the work place (Nadler, 1984).



REFEENCE

Coch, L. & French, J. (1948). Overcoming Resistance to Change. Human Relations.

(1: 512-32).

Cummings, Thomas & Huse, Edgar (1989). Organization Development and Change.

St Paul, MN: West Publishing Company. (Pp. 5-13).

Varney, Glen (1967). Organization Development and Change. (p. 604). In The ASTD

Training & Development Handbook. Editor Craig, Robert. New York: McGraw-Hill.

He cites: French, Wendell, A Definition and History of Organization Development:

Some Comments, Proceedings of the 31st Annual Meeting of the Academy of

Management, Atlanta, August, 15-18, 1971.

Marrow, A., Bowers, D & Seashore, A. (1967). Management by Participation. New

York: Harper and Row.

Nadler, Leonard, (1984). The Handbook of Human Resource Development. New

York: John Wiley & Sons (p. 1.12).



Newstrom, John & Davis, Keith (1993). Organization Behavior: Human Behavior at

Work. New York: McGraw-Hill. (p. 293)].





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This post was last modified on 14 March 2022