BBA- 5TH SEM Batch: 2019-21 ORGANIZATION CHANGE ...

BBA-5TH SEM www.sbs.ac.in

1

CLASS: BBA- 5TH SEM

Batch: 2019-21

ORGANIZATION CHANGE AND DEVELOPMENT

Notes as per IKGPTU Syllabus

Name of Faculty: Ms PRATIBHA SEHGAL NAYYAR

FACULTY OF MANAGEMENT AND COMMERCE,


2

UNIT –I

Introduction to Organizational Change and Development; Definitions & its distinguishing

characteristics, Dynamics of planned change, triggers for change, strategies for implementing

organizational change. Foundations of OD: Conceptual Framework of OD, Historical

background of OD, Values, assumptions and beliefs in OD, Systems theory, Participation and

Empowerment, Teams and Teamwork, Strategies of change, Inter-Disciplinary Nature of OD.

UNIT –II

Action Research and OD, Action Research: A Process and an Approach. Managing OD

Process: Diagnosis, Nature of OD intervention; Creating Parallel Learning Structures.

Change and its Impact: Diagnosis and Resistance to Change; Implementing Change; Strategies

and Skills for Communicating Change; Consolidating Change Introduction to Organizational

Development; Foundations of Organizational Development; Process of Organizational

Development; Diagnostic Strategies and Skills; Power, Politics and Ethics in OD; Evaluating

change and future of Organizational Development

UNIT –III

OD Interventions: An overview, characteristics of OD interventions. Structural Interventions,

Training Experience: T-Groups, Behavioral Modeling and Career Anchors. Team

Interventions, Intergroup and Third-Party Peace-Making Interventions.

UNIT –IV

Issue in Consultant-Clint Relations: Entry and contracting, defining the client system, trust, the

nature of the consultant’s expertise, diagnosis and appropriate, interventions, depth of

intervention, on being absorbed by the cultural, the consultant as a model, the consultant team as

a microcosm, the dependency issue and terminating the relationship, Ethical standards in OD,

Implications of OD for the Client. Contemporary Issues in OD. OD and Quality Movement, OD-

Now and Beyond.


3

s.no Topic

UNIT-I

1

INTRODUCTION TO ORGANIZATIONAL CHANGE AND

DEVELOPMENT

1.1 Definitions & its distinguishing characteristics, Types.

1.2 Dynamics of planned change, triggers for change

1.3 Strategies for implementing organizational change.

2 FOUNDATIONS OF OD

2.1

Conceptual Framework of OD, meaning, characteristics, importance, Historical

background of OD

2.2 Values, assumptions and beliefs in OD

2.3 Systems theory, Participation and Empowerment

2.4 Teams and Teamwork, Strategies of change.

2.5 Inter-Disciplinary Nature of OD

UNIT –II

3 ACTION RESEARCH AND OD

3.1 Action Research: A Process and an Approach

4 MANAGING OD PROCESS

4.1 Diagnosis, Nature of OD intervention; Creating Parallel Learning Structures

5. CHANGE AND ITS IMPACT

5.1 Diagnosis and Resistance to Change

5.2 Implementing Change; Strategies and Skills for Communicating Change

5.3 Consolidating Change Introduction to Organizational Development.

5.4 Foundations of Organizational Development

5.5 Process of Organizational Development; Diagnostic Strategies and Skills

5.6 Power, Politics and Ethics in OD

5.7

Evaluating change and future of Organizational Development

UNIT –III

6 OD INTERVENTIONS


4

6.1 An overview, characteristics of OD interventions

6.2 Structural Interventions

7. TRAINING EXPERIENCE

7.1 T-Groups, Behavioral Modeling and Career Anchors

7.2 Team Interventions, Intergroup and Third-Party Peace-Making Interventions.

UNIT –IV

8 ISSUE IN CONSULTANT-CLINT RELATIONS

8.1

Entry and contracting, defining the client system, trust, the nature of the

consultant’s expertise, diagnosis and appropriate, interventions, depth of

intervention, on being absorbed by the cultural,

8.2

the consultant as a model, the consultant team as a microcosm, the dependency

issue and terminating the relationship, Ethical standards in OD, Implications of OD

for the Client

8.3 Implications of OD for the Client. Contemporary Issues in OD.

8.4 OD and Quality Movement, OD- Now and Beyond.

9 IMPORTANT QUESTIONS (UNIT-1,2,3,4), LINK FOR CASE STUDY

REFERENCES


5

ORGANIZATION CHANGE

INTRODUCTION:

It is a combination of two words:

In any organisation, we have people engaged in production, research, development,

administration, etc. The organisation in order to change should prepare a stock of the situation

and should effect change in their attitude and style of functioning.

Change is a part of life and provides opportunity for growth. It is a conscious decision by the

management of organisation.

MEANING:

It refers to the process of growth, decline and transformation within the organization.

Organizations may change their strategy or purpose, introduce new products or services, change

the way they produce and sell, change their technology, enter new markets, close down

departments or plants, hire new employees, acquire other organizations become acquired by

organization changeOrganization

change


6

other organizations and what not ! In doing so, they may turn larger, smaller or stay the same in

terms of size.

DEFINITION:

1. Mr. John Bull defines it as “when an organization system is disturbed by some internal as

well as external forces.

2. According to a paper by Markus Wanner: “Change management is an organized,

systematic application of the knowledge, tools, and resources of change that provides

organizations with a key process to achieve their business strategy.”

FORCES

INTERNAL

1. POLICIES

2. PROCEDURE

3. MISSION

4. OBJECTIVES

EXTERNAL

1. TECHNOLOGICAL DEVELOPMENT

2. DEMOGRAPHIC ENVIRONMENT

3. SOCIAL ENVIRONMENT

4. ECONOMIC ENVIRONMENT

5. NATURAL ENVIRONMENT

1. COMPETITORS

2. SUPPLIERS

3. GOVERNMENT

4. CUSTOMER

https://www.pmi.org/learning/library/integrated-change-management-5954


7

ORGANIZATIONAL CHANGES ARE OF TWO TYPES:

1. Reactive Changes:

Reactive changes occur when forces compel organization to implement change without delay. In

other words, when demands made by the forces are compiled in a passive manner, such a change

is called reactive change.

2. Proactive Changes:

Proactive changes occur when some factors make realize organization think over and finally

decide that implementation of a particular change is necessary. Then, the change is introduced in

a planned manner.

CHARACTERISTICS OF ORGANIZATION CHANGE:


8

ORGANIZATIONAL DEVELOPMENT

MEANING:

Organization development is the study of successful organizational change and performance. OD

emerged from human relations studies in the 1930s, during which psychologists realized that

organizational structures and processes influence worker behavior and motivation.

Organizational (or organization) Development or simply O.D. is a technique of planned change.

It seeks to change beliefs, attitudes, values and structures-in fact the entire culture of the

organization—so that the organization may better adapt to technology and live with the pace of

change.

DEFINITION:

R. Beckhard defines O.D. as a change strategy which is:

(i) Planned.

(ii) Organization-wide.

CHANGE IS THE LAW OF NATURE

CHANGE IS RESISTED BY MAN

CHANGE LEADS TO DEVELOPMENT

CHANGE HAS AN ELEMENT OF UNCERTAINITY

CHANGE REQUIRES CHANGE AGENTS

CHANGES TAKE PLACE DUE TO TWO FORCES

CHANGE IINCLUDES PROACTIVE AND REACTIVE CHANGE


9

(iii) Managed from the top to increase organization effectiveness and health through planned

interventions in the organization’s processes, using behavioral science knowledge

CHARACTERISTICS OF ORGANIZATIONAL DEVELOPMENT

1. Planned Change:

Organizational development (OD) is an educational strategy for bringing about planned change.

Planned change concept makes it different from other approaches for change in organisations.

2. Attention on the Whole Organisation:

This change covers the entire organisation. Organizational Development is the development of

the whole organisation so that it can respond to change effectively. OD tends to ensure that all

parts of the organisation are well coordinated in order to solve the problems and opportunities

that are brought by change.

3. Long Range Change:

OD is a long term process. It may take months or years to implement it. OD is never intended to

be a stopgap arrangement or measure. O.D. is a long term approach (of 3 to 5 years period)

and is meant to elevate the organization to a higher level of functioning by improving the

performance and satisfaction of organization members.

4. Systems Orientation:

OD is concerned with the various groups in the organisation and their interactions with each

other. It is concerned with formal as well as informal or social relationships. It is concerned with

group structures, processes and attitudes. OD emphasizes on the relationships among the groups

not on the groups themselves.

5. Change Agent:

The services of outside experts are obtained, generally, to implement the OD process. In OD,

“Do it yourself” programmes are discouraged. When the primary change agent is a consultant

from outside the organisation, he can operate independently without ties to the organizational


10

hierarchy and politics of the organisation. The personnel director is the internal agent of the

organisation who coordinates the programme with the management and the external agent.

As the external agent also works with the management, there is a three way relationship of the

personnel director, management and the outside consultant as they develop the OD programme.

Very rarely, an internal change agent is used by the organisation, who usually is a specialist on

the personnel staff.

6. Action research

It entails what its name describes – research and action. Action research is the process of

systematically collecting research data about an ongoing system relative to some objective, goal

or need of that system. Feeling these back into the system, taking actions by altering selected

variables within the system based both on the date and on the date and on hypotheses and

evaluating the results of actions by collecting more data.

7. Problem Solving:

OD emphasizes on problem solving rather than just theoretical discussion of the problems. The

focus on real, ongoing problems rather than the theoretical or artificial ones is called actions

research. Action research is a very important feature of OD. Sometimes, OD is called

organisational improvement through action research.

7. Experiential learning: or learning through experience

In the traditional approaches, training was provided to the people by lecture and discussion

method, in which people talk about only abstract ideas. But in OD, particularly learn by

experiencing in the training environment the kind of human problems they face on the job. This

approach tends to produce more changed behaviour than the traditional approach. Theory is also

necessary and desirable, but the ultimate test is how it applies in real practice. These answers are

provided by OD.

8. Collaborative Management:


11

In contrast to the traditional management structure where orders are issued at upper levels and

simply carried out by low levels, OD stresses collaboration among levels. In OD, organizations

are viewed in a systems perspective.

9. Group Process:

In OD, an effort is made to improve interpersonal relations, open communication channels, build

trust and encourage responsiveness to others. For this OD relies on group processes like group

discussions, inter group conflicts, confrontations and procedures for co-operations.

10. Organizational Culture:

OD assumes that the culture of every organisation is different from the culture of the other

organizations. The assumption that a particular solution can be applied to the problems of all the

organization is generally not made in OD. Instead the culture of each organisation must be

understood and relations consistent with culture be developed.

11. Feedback:

In OD, feedback is given to all the participants about themselves, which provides them a basis

for their next activities. They generally base their decisions on this concrete data. With the help

of feedback of information, employees will be encouraged to understand a situation and take self

corrective action before somebody else tells them what to do.

12. Situational and Contingency Oriented:

OD is flexible and pragmatic, adapting the actions to fit particular needs. Although some

occasional OD change agent may have to impose a single best way on the group, there is,

usually, open discussion of several better alternatives rather than a single best way.

13. Team Building:

The basic objective of OD is to build better team work throughout the organisation. OD tries to

tie all the groups, small and large, working in the organisation, together to make one integrated

and cooperative group. If any groups have some differences, OD will help them to find out the


12

ways for solving the differences. The result of effective team work will be improved

organizational performance.

BENEFITS OF ORGANIZATIONAL DEVELOPMENT

Increasing productivity and efficiency comes with many benefits. One of the best ways to

encourage positive results in these metrics is by using a well-thought-out organizational

development structure. Organizational development is used to equip an organization with the

right tools so that it can adapt and respond positively (profitably!) to changes in the market. The

benefits of organizational development include the following:

1. Continuous development

Entities that participate in organizational development continually develop their business models.

Organizational development creates a constant pattern of improvement in which strategies are

developed, evaluated, implemented, and assessed for results and quality.

In essence, the process builds a favorable environment in which a company can embrace change,

both internally and externally. The change is leveraged to encourage periodic renewal.

2. Increased horizontal and vertical communication

Of considerable merit to organizational development is effective communication, interaction, and

feedback in an organization. An efficient communication system aligns employees with the

company’s goals, values, and objectives.

An open communication system enables employees to understand the importance of change in an

organization. Active organizational development increases communication in an organization,

with feedback shared continuously to encourage improvement.

3. Employee growth

Organizational development places significant emphasis on effective communication, which is

used to encourage employees to effect necessary changes. Many industry changes


13

require employee development programs. As a result, many organizations are working toward

improving the skills of their employees to equip them with more market-relevant skills.

4. Enhancement of products and services

Innovation is one of the main benefits of organizational development and is a key contributing

factor to the improvement of products and services. One approach to change is employee

development – a critical focal point is a reward for motivation and success.

Successful engagement of employees leads to increased innovation and productivity.

Through competitive analysis, consumer expectations, and market research, organizational

development promotes change.

5. Increased profit margins

Organizational development influences the bottom line in many different ways. As a result of

increased productivity and innovation, profits and efficiency increase. Costs come down because

the organization can better manage employee turnover and absenteeism. After the alignment of

an entity’s objectives, it can focus entirely on development and product and service quality,

leading to improvements in customer satisfaction

DYNAMICS OF PLANNED CHANGE

PLANNED CHANGE

MEANING:

When changes are effected after working out when and how they will be carried out, planned

changes occur. For initiating planned change, the manager needs to constantly watch the changes

taking place in the external and internal environment of the business so that corrective measures

are taken accordingly and the changes could be effected successfully.

https://corporatefinanceinstitute.com/resources/careers/soft-skills/employee-training-and-development/

https://www.bigcommerce.com/blog/how-perform-competitive-analysis/

https://corporatefinanceinstitute.com/resources/knowledge/accounting/what-is-net-income/


14

IMPORTANCE OF PLANNED CHANGE

1. Increased productivity: Planned change help increase productivity and service ability.

On the other hand, change without plan might not help that much to increase

productivity.

2. Enhancement of quality: Enhancement of quality deserves planned change in an

organization. Quality of the goods is the condition of success of the organization.

3. Facing competition: If change process starts in a planned way that can help face

competition successfully. Otherwise it may be difficult.

4. Technological change: Planned change can also help in technological change, which

type of technology is to be installed, that decision is supposed to take through a proper

plan.

5. Customer satisfaction: Customer satisfaction is one of the prime objectives of the

organizations. That satisfaction can also be increased and retained in a planned way.

6. Expansion of market: Every organization wants to expand its business. This expansion

program should be taken with effective plan.

7. Satisfaction of owners: Owners and managers satisfaction is one of the prime implied

objectives of establishing organization. This objective may be achieved, if it is tried in a

planned way.

8. Complying with laws: Some changes take place in compliance with law provisions. In

honor of law provisions, change is initiated.

9. Development of manpower: Manpower training and development is a continuous

process. If this process is undertaken in a planned way that can help the organization to

gain long term benefits.

PROCESS OF ORGANIZATIONAL/ PLANNED CHANGE:

Kurt Lewin observed that people generally do not accept change and if they accept it, they tend

to revert to the original behaviour after some time. To make change have lasting impact, it

should become part of their attitudes and value system. Lewin suggested a three step model to

initiate change in organisations and behaviour of individuals and groups.


15

1. UNFREEZING:

Unfreezing makes the need for change inevitable to members so that they become ready to

accept the change. It develops in people a belief that present system of working is undesirable

and change is desirable. It motivates people to move from the old and traditional ways to new

and modern ways of working.

Resistance to change is eliminated amongst members by:

(a) Building trust and confidence,

(b) Enhancing motivation,

(c) Improving communication, and

(d) Participative decision making

2. CHANGING OR MOVING:

Once people are ready to accept the change, change is initiated by learning new ways of doing

things. New information is collected, new concepts are developed, members are trained to

implement the concepts and present perspectives and attitudes are changed.

Driving people to change their behaviour and attitude can take two forms:

(a) Negative:

Managers announce change, failing which, members are subjected to threats, punishments and

penalties. This change does not have lasting impact and, therefore, has to be closely monitored.

(b) Positive:

People are motivated to feel the need for change and accept it as a positive force that coordinates

individual goals with organisational goals.

3. REFREEZING:

Though change is desirable, people generally resist change. Despite learning new ways of doing

things, they tend to revert to old behaviour after working in the changed environment for some

time. Refreezing attempts to make change permanent till there is need to reintroduce change.


16

“It means locking the new behaviour pattern into place by means of supporting or reinforcing

mechanisms, so that it becomes the new norm.” People realize that change will affect their future

behaviour. Reinforcement of behaviour is, therefore, the aim of refreezing.

TRIGGERS FOR CHANGE OR FACTORS AFFECTING ORGANISATIONAL

CHANGE:

Change is the essence of organisational life. Organisations have to anticipate or respond to

change to be successful in the long-run.

The factors that necessitate change fall into two categories:

1. Internal Factors:

Factors internal to organisation are as follows:

(a) Efficiency:

Organizations want to perform better, earn more profits for owners (in the form of retained

earnings), employees (increase in salary and bonus) and shareholders (increase in dividends).

This is possible if they consistently review their policies and reorganize their structures to do

better. Change is, therefore, desirable to achieve higher level of efficiency.

(b) Control:

People at high managerial posts want to retain control over organisational activities. They have

their own philosophies and ways of working. They introduce new organisation designs and

control systems which are followed in the organisation.

(c) Leadership:

Dynamic managers introduce change because they want to lead the market. Change in one

business forces others to adopt the changes.

(d) Internal pressures:

Attitudes of employees also enforce change. Dissatisfaction with the working conditions, pay

structures and inter-personal relationships reflect negative behaviour towards managers which

may force employees to change their policies, procedures and strategies. Change is, therefore,

enforced to develop cordial relations in the organisation.


17

(e) Changes in workforce:

Changes in managerial personnel (when new managers join in place of retiring managers) also

require the organisation to change its values and philosophies. Changes in operative personnel

(new workers who are more educated, skilled and competent) also require the organisation to

change its values and beliefs to match those who join the organisation. There may be changes in

leadership styles and motivation systems to deal with knowledge workers.

(f) Internal inefficiencies:

Organisations may change their structures because of internal inefficiencies like imbalance

between narrow and wide span of management, centralisation and decentralisation, line and staff

relationships, internal and external environment, communication systems etc. Improvement in

these areas requires changes in organisation structure.

2. External factors:

Survival of organisation depends on its active interaction with the environment. Every

organisation affects and is affected by others — be it organisations or suppliers, shareholders,

customers, Government or trade unions. Thus, an organisation has to give due consideration to

its own goals and also the goals of those external to its working.

In order to survive in the changing environment, organisations have to change their production

process, labour-management relations, departmental functions etc. in response to changes in

technological, political, economic factors etc.

Some of the external factors which affect change are as follows:

(a) Market factors:

Organisations operate in the volatile markets. Various market forces related to buyers and

competitors affect competitive position of the organisation and promote changes to remain

competitive in the market. Factors related to buyers are demand, changes in consumer tastes and

preferences, income of consumers etc. and those related to competitors are policies of

competitors, better products and suppliers etc. New companies promote diversification, product

deletion, disinvestment, core competence to gain distinctive advantage etc.

(b) Economic factors:


18

Changes in economic conditions; exchange rate and interest rate fluctuations, fiscal and

monetary policies, inflation and cost of living necessitate changes in the organisational policies.

(c) Social factors:

The norms for pollution, safety and working conditions, health consciousness, geographical

movement of workers, their age composition, education etc. are the social factors that necessitate

changes in the organisational policies. Organisations are the creations of society and have to take

care of social factors in making adjustments in their plans, policies and procedures.

(d) Technological factors:

The modern world is facing constantly changing technology, information systems,

computerization and decision support systems. If organisations fail to update their technology

and management information system, they will not be able to survive in the market.

(e) Political factors:

Business enterprises and Government actively interact with each other. Changes in government

policies with respect to taxation and corporate governance, new laws and court decisions require

the organisations to change their policies according to these regulations.

(f) Natural factors:

Natural calamities like floods and earthquakes also require changes in the policies of the

organisation. Organisations are open social systems and cannot ignore the impact of their

operations on the society. Social responsibilities are part of the organisational operations which

change according to needs of the environment. Providing medicines, clothes, food and monetary

help may not be part of organization’s social agenda but natural factors may require it to do so;

not only from the point of view of ethics but also its survival.

(g) Educational factors:

Educated employees, shareholders, labour unions, customers and suppliers require organisations

to change their structures to come up to their expectations. New employees, new managerial

personnel, new suppliers with different educational levels and backgrounds necessitate

organisations to change their policies to accommodate them.


19

(h) Global factors:

Globalization and liberalization require changes in the policies of organisations to compete with

multinational corporations operating in the home country and the host country. Companies of

different countries have different cultural and social values. Since they interact with each other in

the globalized world, changes have to be made in the organisational processes to be interactive

with each other.

STRATEGIES FOR IMPLEMENTING ORGANIZATIONAL CHANGE.

1. Management Support for Change

Employees develop a comfort level when they see management supporting the process. It is

critical that management shows support for changes and demonstrates that support when

communicating and interacting with staff

2. Case for Change

No one wants to change for change sake, so it is important to create a case for change. A case for

change can come from different sources. It can be a result of data collected on defect

rates, customer satisfaction surveys, employee satisfaction surveys, customer comment

cards, business goals as a result of a strategic planning session, or budget pressures.

Using data is the best way to identify and justify areas that need to improve through change

initiatives

3. Employee Involvement

All change efforts should involve employees at some level. Organizational change, whether large

or small, needs to be explained and communicated, specifically changes that affect how

employees perform their jobs.


20

Whether it is changing a work process, improving customer satisfaction, or finding ways to

reduce costs, employees have experiences that can benefit the change planning and

implementation process. Since employees are typically closest to the process, it is important that

they understand the why behind a change and participate in creating the new process.

5. Implementation

Once a change is planned, it is important to have good communication about the roll-out and

implementation of the change. A timeline should be made for the implementation and changes

should be made in the order of its impact on the process and the employees who manage that

process. For instance, if your organization is upgrading its software program, employee training

should be done before the software is installed on their computers.

An effective timeline will allow for all new equipment, supplies, or training to take place before

it is fully implemented.

6. Follow-up

Whenever a change is made it is always good to follow-up after implementation and assess how

the change is working and if the change delivered the results that were intended. Sometimes

changes exceed target expectations but there are occasions that changes just don’t work as

planned. When this is the case, management should acknowledge that it didn’t work and make

adjustments until the desired result is achieved.


21

7. Removing Barriers

Sometimes employees encounter barriers when implementing changes.Barriers can be with other

employees, other departments, inadequate training, lacking equipment, or supply needs.

Sometimes management also needs to deal with resistant or difficult employees. It is

management’s responsibility to ensure that employees can implement change without

obstacles and resistance.

It is unfortunate but there are times when employees simply can’t accept a change. In these rare

cases, employees simply need to move on in order to successfully implement a needed change.

These are difficult but necessary decisions.

8. Measure the change process.

Throughout the change management process, a structure should be put in place to measure the

business impact of the changes and ensure that continued reinforcement opportunities exist to

build proficiencies. You should also evaluate your change management plan to determine its

effectiveness and document any lessons learned.

KEY QUESTIONS:

• Did the change assist in achieving business goals?

• Was the change management process successful?

• What could have been done differently?

9. Celebrate

It is important to celebrate successes along the way as changes are made. Celebrating the small

changes and building momentum for bigger changes are what makes employees want to

participate in the process. When employees understand why a change is made and are part of the

process for planning and implementing the change, it allows for a better chance for successful

implementation.


22

9. Provide effective training.

With the change message out in the open, it’s important that your people know they will receive

training, structured or informal, to teach the skills and knowledge required to operate efficiently

as the change is rolled out. Training could include a suite of micro-learning online modules, or a

blended learning approach incorporating face-to-face training sessions or on-the-job coaching

and mentoring.

FOUNDATIONS OF OD

CONCEPTUAL FRAMEWORK OF OD

MEANING:







change.

DEFINITION:

R. Beck hard defines O.D. as a change strategy which is:

(i) Planned.



interventions in the organization’s processes, using behavioral science knowledge.


23

HISTORY OF OD

In a little over five decades, OD has evolved a complex and diverse body of knowledge and

practice. Because this expertise derives mainly from helping organizations change and improve

themselves, the history of OD can be understood in terms of the kinds of changes that

organizations have implemented over this time period. These include changes aimed at:

(1) Social processes;

(2) Work designs;

(3) Human resources; and

(4) Organization structures.

Although these changes are interrelated, each represents a distinct background in the growth of

OD.

1. SOCIAL PROCESSES

The earliest applications of OD involved helping organizations improve social processes

including relationships among members, communication, group decision-making, and

leadership. These process changes started in the early 1950s and were largely in response to

emerging social problems that organizations experienced as they became larger and more

bureaucratic. During the first half of the twentieth century, organizations grew increasingly large

with numerous departments, levels of management, and rules and procedures. Management was

largely responsible for commanding and controlling the enterprise typically in an authoritarian or

paternalistic manner.

Over time, these organizational conditions generated a host of unintended social problems as

members found it increasingly difficult to communicate both laterally and vertically, to resolve

problems within and across groups, and to respond energetically to managerial directives. OD‟s

response to these social problems started in the late 1940s with the work of Kurt Lewin and his

colleagues in laboratory training. Bradford (1967) began with a training program for community


24

leaders which included both cognitive learning about leadership as well as informal feedback

about participant behaviour.

2. WORK DESIGNS

This branch of OD history involves designing work to make it more motivating and fulfilling.

Traditionally, work was designed to promote technical rationality, resulting in jobs that were

highly specified, fragmented, and repetitive. In the 1960s, the benefits of such work designs

came more and more under question. Employees complained that work was boring and

meaningless; they felt alienated from their jobs and the organizations that employed them.

Organizations experienced growing problems with absenteeism, turnover, quality, and

productivity. These problems spawned widespread calls for government, labor, and business to

work jointly to improve the quality of the work life of the employees.

OD sought remedies for these problems in new work designs that were more geared to employee

needs and aspirations than to traditional designs. These interventions were based on the work of

Eric Trist and his colleagues in socio-technical systems and of Frederick Herzberg and his

colleagues in job enrichment.

3. HUMAN RESOURCES

This background of OD involves integrating people into organizations so they join, remain, and

produce at high levels. Concern for human resources has traditionally been associated with the

personnel function in organizations. OD‟s interest in human resource practices grew rapidly,

many organizations faced serious global competition for the first time. They needed to produce

at higher levels at lower costs. People generally do those things for which they are rewarded;

rewards can play a powerful role in promoting performance.

Based on the work of Lawler (1981) , OD examined how rewards affect organization

performance , this led to interventions aimed at making rewards more contingent on

performance. One method that has grown in popularity over the past two decades is called „gain

sharing‟. It involves paying organization members a bonus based on measurable gains in

performance over some baseline standard


25

4. ORGANIZATION STRUCTURES

The most recent applications of OD involve structuring organizations so they are better aligned

with their strategy and environment. Such largescale change has become more prevalent in the

past two decades as organizations have increasingly faced complex, rapidly changing

environments that often demand radical changes in how they compete and design themselves

(Mohrman et al., 1989).

To help organizations make these transformations, OD has expanded its focus to the total

organization and its competitive environment. Drawing on a variety of perspectives in corporate

strategy (Miles & Snow, 1978; Porter, 1980; Hamel & Prahalad, 1994; Grant, 1998), OD has

created interventions for assessing an organization’s competitive situation and making relevant

changes in strategy if necessary.

This typically includes a so called „SWOT analysis‟ where the organization‟s strengths and

weakness are compared to opportunities and threats in its competitive environment. Then, a

strategy is created to build on the strengths and to take advantage of the opportunities, while

accounting for the weaknesses and threats.


26

VALUES, ETHICS AND ASSUMPTIONS OF OD

Values: Standards of importance; such as Integrity, honesty, effectiveness, efficiency,

productivity, profitability, service, quality of life. Values are guides about what to pursue and

prefer.

Ethics: Standards of good and bad behavior based on values.

A set of values, assumptions and beliefs constitutes an integral part of organization

development, shaping the goals and methods of the field and distinguishing Organisational

Development from other improvement strategies.

Organization Development: Value-based process of improving individuals, relationships, and

alignment among organizational components to enhance the effectiveness of the organization

and the quality of life of its members, to better serve the organization’s purpose and its fit with

the organization system of which the organization is a subsystem

ETHICS IN OD

1. Participation, involvement and empowerment

This may be the most fundamental value we hold as OD practitioners. We know that “people support

what they help create.” Therefore, we encourage our clients to see the benefit of involving all

organizational members in decision-making and change processes as appropriate.

2. The importance of groups and teams

Organizations are made up of a variety of formal and informal groups and teams. Therefore, we

encourage clients to recognize the norms and beliefs that come along with these structures in order to

help those groups and teams contribute most effectively to the organization.

3. Growth, development and learning

As OD practitioners, we have an optimistic view of people and teams. Therefore, we believe that


27

our work with organizations should help people to learn the skills needed to help them navigate

change in the future.

4. Valuing the whole person

In order to help individuals maximize their potential in an organization, we respect that people are

complex. Therefore, we work hard to understand individuals have diverse needs, skills, and feelings

and respect those differences in our work with them.

5. Dialogue and collaboration

Conflict is inevitable in teams and organizations. Therefore, we believe in using dialogue to address

conflict in a healthy, open manner in order to move past the dysfunction that suppressed conflict can

create.

6. Authenticity, openness and trust

In order to create trusting environments, organizational leaders and members must consistently

demonstrate honesty and transparency in their words and actions. As OD practitioners, we must

model this at all times.

7 Basic OD Assumptions that are based upon French and Bell

1. Most individuals have drives towards personal growth and development. However, the work

habits are a response to work environment rather than personality traits. Accordingly, efforts to

change work habits should be directed towards changing how the person is treated rather than

towards attempting to change the person.

2. Highest productivity can be achieved when the individual goals are integrated with

organizational goals. Also with such integration, the quality of the product is highly improved.

3. Cooperation is more effective than competition. Conflict and competition tend to erode trust,

prohibit collaboration and eventually limit the effectiveness of the organization. In healthy


28

organizations, “efforts are made at all levels to treat conflict as a problem subject to problem solving

methods.

4. The suppression of feelings adversely affects problem solving, personal growth and satisfaction

with one’s work. Accordingly, free expression of feelings is an important ingredient for

commitment to work.

5. The growth of individual members is facilitated by relationships, which are open, supportive and

trusting. Accordingly, the level of interpersonal trust, support and cooperation should be as high

as possible.

6. The difference between commitment and agreement must be fully understood. Agreeing to do

something is totally different from being committed to do something. Sense of commitment makes it

easy to accept change and the implementation of change for the purpose of organizational

development is even easier when such a commitment is based upon participation in the process.

7. OD programmes, if they are to succeed, must be reinforced by the organization’s total human

resources system.

ORGANISATION DEVELOPMENT VALUES:

Organization development constitutes various people, professionals, technocrats, researchers,

managers and a host of other employees working in the organisation contributing to the

accomplishment of organizational objectives. They behave differently. Authority and power,

conflicts, control takes backseat during OD process.

THE FOLLOWING ARE THE VALUES IN OD EFFORTS:

1. Respect People:

People are the main and useful part of the organisation and they are responsible for creating

opportunities for growth. They must, therefore, be treated with respect and dignified manners.


29

2. Confidence and Support:

Organizations are made up of people and they are to be believed and supported in order to have

effective organisation. The healthy environment prevails when people are trusted and taken into

confidence and a necessary support is extended to them as and when needed.

3. Confrontation:

Any conflict on any issue should not be suppressed. It should be dealt with openness.

Suppression leads to dampening of morale. Identifying the problem and its causes, discussing it

openly and finding out feasible solution leads to boosting up morale of the employees and

creating good environment.

4. Employee Participation:

The participation of employees who will be affected by the OD should be sought in decision-

making.

5. Expression:

Human beings differ in experience, maturity, ideas, opinions, and outlook. The organisation is at

the receiving end. It gains from the differences in quality, ideas, opinions and experiences of its

people. Human beings are social animals; they have feelings, emotions, anger and sentiments etc.

They should be allowed to express their feelings and sentiments. This will result in building up

high morale and the people will be motivated towards hard work ultimately resulting in increased

efficiency.

6. Seeking Cooperation:

Managers should learn to seek cooperation from each of the employees working under him in his

department. This will develop in creating the atmosphere of cooperation leading to

organizational effectiveness and willingness to accept change in the event of organization

development process.


30

SYSTEM APPROACH/ THEORY:

INTRODUCTION:

It came into existence in 1960. This approach was developed by Chester.I.Bernard, Herbert .A.

Simon and their colleagues System approach means a group of small interrelated units.

MEANING:

The system approach is top took upon management as a system or as “an organized whole”

made up of subsystems integrated into a unity or orderly totality.

A system is composed of related and dependent element which when in interaction, forms a

unitary whole. A system is simply an assemblage or combination of things or parts

forming a complex whole.

System approach considers the organisation as a dynamic process

Inter-related set of parts

System approach integrates goals of different parts of the organisation (sub-systems or

departments) with the organisation as a whole.

System approach enables organizations to frame policies that promote business objectives

and social objectives

FEATURES OF SYSTEMS THEORY:


31

The major purpose of systems theory is to develop unifying principles by the integration of

various sciences, natural and social. With focus on the structures and functions of the system, the

system can be viewed from different perspectives:

Open system: a system keeps evolving and its properties keep emerging through its

interaction with environment

Holistic view: systems theory focuses on the arrangement of and relations between the parts

that connect them into a whole. The mutual interaction of the parts makes the whole bigger

than the parts themselves

Goal-directedness: systems are goal oriented and engage in feedback with the environment

in order to meet the goals. Also, every part of the system is interdependent with each other

working together toward the goals.

Self-organizing: productive dynamic systems are self-organizing. It implies the adaptive

ability of the systems to the changes in the environment. Using a metaphor of social

interaction, Pask (1975, 1984) described the self-organizing process as "a conversation

between two or more participants, whose purpose is to arrive at "an agreement over an

understanding."


32

ELEMENTS OF A SYSTEM

Advantages of Systems Approach

It concentrates on end results rather than the means.

It provides an orderly and efficient plan of action.

It develops coordination of the specialized activities.

It provides a good basis of control

It frees management from many daily details of operations management.

Disadvantages

Dependency

Expensive

Time consuming

Continuous monitoring

Proper coordination is required


33

PARTICIPATION AND EMPOWERMENT

MEANING: (PARTICIPATION)

Participation is a democratic method of the development process which enables people for

decision-making and acceptance of changes that affect their lives.

It includes:

(a) Involvement of people right from planning to execution;

(b) Enabling people for decision-making; and

(c) Combining and utilizing human resources.

Participative management concept is a powerful tool of industrial relation system. It is based on

industrial democracy and develops team spirit with the employees, and belongingness in them.

This helps in realization of common objectives.

OBJECTIVES OF EMPLOYEE INVOLVEMENT/ PARTICIPATION

1. To Make Worker’s Role Important –

The basic objective of employee’s involvement is to make employees’ role important in an

organisation. For successfully attaining the objectives and goals of the organisation, it is essential

to make employees’ involved in the achievement of goal because without them it is not possible

to achieve the goals.

2. To Increase Productivity –

When employees are involved in the decision making with the management, this motivates them

and their morale increases. This leads to increase in their efficiency which brings increase in the

level of productivity.


34

3. To Satisfy the Needs of the Employees –

Every employee wants to be recognized for his capabilities, so participation in management

makes them feel recognized and they will be motivated to perform hard work. And moreover,

employees social and esteem needs will also be satisfied.

4. To Develop Human Personality –

The employees’ involvement in management gives them opportunity to express themselves.

They express their views freely at various levels and their hidden talent comes out. Thus they get

an opportunity to develop their personality.

5. To Strengthen the Employee Management Cooperation –

Coordination and cooperation between the employees and management improves the relationship

between them. Employees don’t feel neglected and when they participate in decision making

they feel recognized. And their relations with their superiors also improve.

EMPLOYEES EMPOWERMENT

MEANING:

Employee empowerment is the philosophy of enabling employees to make important decisions

related to their work and take more responsibility for their jobs.

Employee empowerment is giving employees a certain degree of autonomy and

responsibility for decision-making regarding their specific organizational tasks.

It allows decisions to be made at the lower levels of an organization where employees have a

unique view of the issues and problems facing the organization at a certain level.


35

ELEMENTS OF EE:

1. Authority – Ability of a team to take action, such as to budget, to have access to a petty cash

fund, etc.

2. Self-determination – Ability of a team to decide what problems to work on and what methods

are the best ones to use.

3. Alignment – A scale which measures how close an employee’s personal needs are aligned to

the organization’s needs.

4. Skills – The ability of a team to analyze and solve problems.

5. Resources – Those items necessary for a team to understand a problem and implement

solutions; also, the time to work on solutions, access to manufacturing engineers, etc.

6. Information – Ability of a team to have access to information, computers, financial figures,

etc.

7. Accountability – A scale which measures the level of accountability for a team’s actions and

results.

8. Self Confidence and Firm Determination – To be empowered, it is necessary to have a

certain level of Self Confidence and Firm Determination.

9. Self Control – When any kind of empowerment is given, substantial self-control is required

10. Faith and Trust – Faith and trust are two important ingredients which the employee must

have on employer and employer must have on employee.

11. Meaningfulness – The system of empowerment so designed must have mean fullness.

12. Task Impact – At the end the overall impact of implementation of empowerment must be

gauged.


36

IMPORTANCE OF EMPLOYEES EMPOWERMENT:

1. Quality of work produced – When given the autonomy that allows them to make a difference

to product or service outcomes, employees will produce higher quality work. The finished

product becomes a matter of personal pride, and the benefits for both the customer and the

employee will become self-evident.

2. Satisfied employees – Various studies have shown that empowered employees are more

satisfied in their work, and less likely to seek employment elsewhere. This decreases

employment costs and the need for training of new staff.

3. Collaboration grows – With increased confidence; employees are more willing to share

information and best practices with others. Honesty and openness increase, and this directly

impacts the ability of people to work as part of a team. Participation becomes more active and

proactive, and this greater collaboration will in itself feed through to organizational capability to

achieve strategic goals.

4. Productivity increases – As confidence and self-esteem grows, and a more quality focused

and collaborative approach takes hold, productivity will increase.

5. Employee empowerment reduces costs – Costs will be reduced across the organization.

6. Highly Competitive Environment – Highly competitive environment makes it necessary for

companies to empower employees so that they are motivated.

7. Globalization – Globalization also necessitates empowerment to combat challenges of

globalization.


37

EMPLOYEE EMPOWERMENT – 10 IMPORTANT PRINCIPLES

Principle # 1. Demonstrate that People are Valuable:

Regard for people must shine through in all of managers’ actions and words. Their facial

expression, body language, and words express what they are thinking about the people who

report to them. Their goal is to demonstrate appreciation for each person’s unique value. No

matter how an employee is performing on their current task, a manager’s value for the employee

as a human being should never falter and always be visible.

Principle # 2. Share Leadership Vision:

Help people feel that they are part of something bigger than themselves and their individual job.

Managers are suggested to do this by making sure they know and have access to the

organization’s overall mission, vision, and strategic plans.

Principle # 3. Share Goals and Direction:

Managers must attempt to share the most important goals and direction for their group. Where

possible, either make progress on goals measurable and observable, or ascertain that they have

shared their picture of a positive outcome with the people responsible for accomplishing the

results.

Principle # 4. Trust People:

Trust the intentions of people to do the right thing, make the right decision, and make choices

that, while may be not exactly what you would decide, still work.

Principle # 5. Provide Information for Decision Making:

Make certain that you have given people, or made sure that they have access to, all of the

information they need to make thoughtful decisions.

Principle # 6. Delegate Authority and Impact Opportunities, Not Just More Work:

It means that managers just do not delegate the drudge work; delegate some of the fun stuff, too

as well as delegate the important meetings, the committee memberships that influence product


38

development and decision making, and the projects that people and customers notice. The

employee will grow and develop new skills.

Principle # 7. Provide Frequent Feedback:

Provide frequent feedback so that people know how they are doing. Sometimes, the purpose of

feedback is reward and recognition. People deserve constructive feedback, too, so they can

continue to develop their knowledge and skills.

Principle # 8. Solve Problems- Do Not Pinpoint Problem People:

When a problem occurs, ask what is wrong with the work system that caused the people to fail,

not what is wrong with the people. Worst case response to problems? Seek to identify and punish

the guilty.

Principle # 9. Listen to Learn and Ask Questions to Provide Guidance:

Provide a space in which people will communicate by listening to them and asking them

questions. Guide by asking questions, not by telling grown up people what to do. People

generally know the right if they have the opportunity to produce them. When an employee brings

you a problem to solve, ask, “What do you think you should do to solve this problem?” Or, ask,

“What action steps do you recommend?” Employees can demonstrate what they know and grow

in the process.

Principle # 10. Help Employees Feel Rewarded and Recognized for Empowered Behaviour:

When employees feel under-compensated, under-titled for the responsibilities they take on,

under-noticed, under-praised, and under-appreciated, employee empowerment should not be

expected to produce results

EMPLOYEE EMPOWERMENT – PROCESS: 5 MAIN STAGES INVOLVED

Empowerment is a complex process because of involvement of human beings whose nature itself

is quite complex. Being a process, empowerment involves a number of stages.

These stages are as follows:


39

Stage # 1. Recalling Depowering and Empowering Experiences:

Empowerment does not occur through rigid prescription by an organization; it evolves over the

period of time with experience. Therefore, there is a need for recalling events that show

depowering as well as empowering. While events showing empowering are reinforced, events

showing depowering need change through empowerment.

Stage # 2. Identifying Reasons for Lack of Empowerment:

After identifying the events that show lack of empowerment, it is required to identify the reasons

for lack of empowerment. Often, the reasons for lack of empowerment lie either in

organizational processes or in an employee himself or both. Various organizational processes

like delegation of authority, communication system, and control system may work against

empowerment. The reasons for lack of empowerment may lie here.

Similarly, reasons for lack of empowerment may lie with an employee depending on his locus of

control and self-esteem. Employees having internal locus of control tend to see organizational

processes as empowering unless these are in very bad shape while employees having external

locus of control tend to see organizational processes as depowering.

Besides locus of control, an employee’s self-esteem also affects his perception about depowering

and empowering events. Employees with high self-esteem tend to see organizational processes as

empowering while those with low self-esteem tend to see these as depowering.

Stage # 3. Choosing One Issue/Problem/Project to Work on:

After identifying the reasons for lack of empowerment, concrete steps have to be taken for

overcoming lack of empowerment. At this stage, it is quite possible that there may be several

areas in which depowering events happen. However, all these areas cannot be covered in a single

step of empowerment.

Therefore, it is desirable to undertake one issue/problem/project at a time. The best strategy to

select an issue is to select that issue first which is easier to tackle. This may be followed by more

difficult issues in that order. The basic advantage of this strategy is that the organization gets

experience of empowerment action which can be applied in critical issues more effectively.


40

Stage # 4. Identifying Potential Power Bases:

At this stage, potential power bases should be identified. Since power is capacity to influence

others, it can be acquired by an individual in different ways, known as power bases. Bases of

power may be of two types — positional and personal — with each type having different bases.

Positional power emerges from the position that an individual holds in an organization. Personal

power resides with a person regardless of his position in the organization. An individual’s

personal power emerges from his qualities that are unique. Potential power bases may be

identified in terms of these power bases.

Stage # 5. Developing and Implementing Action Plans:

After identifying potential power bases, the organization should initiate development and

implementation of action plans for empowerment. Empowerment exercise can be undertaken

either on individual basis or team basis. However, the present emphasis is on team empowerment

and creation of empowered teams. There are four ways of using power irrespective of the bases

from which it is derived.

These are:

(а) Increase in one’s power base.

(b) Enact power to make things happen through others.

(c) Challenge the power base of others.

(d) Increase the power base of others.

Since there are both organizational and personal bases of power, changes may be required at both

these levels. At the personal level, training and development activities can be undertaken to

enable employees to assume more power. At the organizational level, changes can be brought in

those organizational factors which are responsible for de-empowerment.

ADVANTAGES OF EMPLOYEE EMPOWERMENT INCLUDE:

1. Increased employee education and training;

2. Employees participate in creating their own goals;

3. Increased employee contribution;


41

4. Increased respect among employees secondary to teamwork;

5. Increased power equals lower absenteeism and better productivity;

6. Employees have more satisfying work;

7. An increased depth of competence among employees secondary to cross-training;

8. Less conflict with administration and managers; and

9. A few middle management positions mean decreased cost to the company.

Employees are more likely to agree with changes if they participate in decision making.

EMPOWERMENT BENEFITS THE ORGANISATION, EMPLOYEES AND

MANAGERS FOR ORGANISATION:

Empowerment benefits the organisation by–

i. Creating an environment which encourages proactively problem solving, accepting challenge,

innovation, continuous improvement, optimum utilization of employees

ii. A high degree of employee motivation and enhancement of business performance.

For Employees:

For employees empowerment provides a sense of high self-esteem, high degree of involvement

and participation, a learning environment opportunity for personal growth and development and

a greater sense of achievement.

For Managers:

Managers can think of empowerment process as involving in several stages. Managers can

assume additional and new responsibilities. The managers of the empowered organisations will

have greater commitment towards the organisation.

DISADVANTAGES OF EMPLOYEE EMPOWERMENT INCLUDE:

1. Employees can abuse the increased power given to them;

2. It is too much responsibility for some employees;


42

3. Employees who focus on their own success rather than group’s may leave;

4. Managers must be better trained to facilitate through sharing of information, cooperation, and

referrals to appropriate resources; all employees must “buy in” to the concept for it to be

effective;

5. There is an increased cost to the organization for training and education;

6. There is increased time in groups or committees which takes away from regular jobs.

CHALLENGES IN EE:

Challenge # 1. Confusion:

Employees are encouraged to think on their own and take their own decisions. But this may

cause confusion and chaos in organizations where employees are traditionally trained to take

orders from superiors. This can also give rise to disagreements among co-workers if they are

unable to take a unanimous decision.

Challenge # 2. Improper Training:

To enable employees to become accountable for themselves and take the best decisions it is vital

that they are given proper training. Each individual should be trained intensively to develop his

skills and talents so that he becomes a more productive and capable worker. But in case

employees are not properly trained, they would not be able to judge the situations well and won’t

be able to take good decisions for the company’s benefit.

Challenge # 3. Resistance to Change:

The people working in an organization can be resistant to changes and innovations in the work

place. Some managers may feel that their employees are not competent enough to take their own

decisions and be accountable for their work, while some employees themselves may not want

additional responsibility.


43

Empowering employees would also require some changes to be made in management style. The

managers would no longer be the ultimate authority. Thus, employees and managers may be

resistant to adopt changes.

Challenge # 4. Breakdown of Organizational Structure:

Employee empowerment can be conducted more successfully in a decentralized organization

with lesser hierarchical levels. This would require breaking down the existing structure and

eliminating redundant levels. This is not an easy process. Also it would make it more difficult for

the managers to control the employees once they have become used to their autonomy

TEAMS AND TEAMWORK

MEANING:

The team can be defined as a group of people who work together. “A work group is a number of

persons usually reporting to a common superior and having some face to face interaction, who

have some degree of inter dependence in carrying out tasks for the purpose of achieving

organizational goals.”

A work group’s performance is what its members do as individuals. The performance is just the

summation of each group member’s individual contribution. There is no positive synergy in a

group that would create an overall level of performance that is greater than the sum of the inputs.

IMPORTANCE OF TEAMS:

1. Improved Employee Motivation:

Work teams help in enhancing the employee motivation. Because work teams encourage

employee involvement, these make the jobs more interesting and fulfill the social needs of the

employees. Individuals are likely to perform better when they are working in the presence of

other people. Individuals will work harder and put in a lot of extra efforts to remain in the team’s

good graces.


44

2. Positive Synergy:

Teams have the potential to create high levels of productivity due to positive synergy created by

them. The output in the form of performance productivities is generally more than the

summation of inputs put in the form of employee efforts. There is a drawback of positive

synergy also. Sometimes, managements resort to cuts in staff to use the positive synergy to get

the same or greater output from fewer people.

3. Satisfaction of Social Needs:

Man is a social animal. He always feels the need of affiliation. Teams can satisfy this need of the

employees by increasing worker interactions and creating a feeling of brotherhood and friendship

among team members. Such employees are always in a better position to cope with stress and

they enjoy their jobs more.

4. Commitment to Team Goals:

Teams generally develop a common purpose, commitment to that purpose and agreement upon

specific goals. All this combined with the social pressures exerted by the team; result in a high

degree of commitment to common team goals. The individual members sublimate their

individual goals for the common goals of the group.

5. Improved Organisational Communication:

As the teams encourage interactions, it will lead to improved communication. In case of self

managed teams, interpersonal dependencies are created which require the members to interact

considerably more than when they work on jobs alone. Cross functional teams create inter-

functional dependencies and increase organisation wide communication.

6. Benefits of Expanded Job Training:

The implementation of team work always leads to expanded job training. Through this training

employees build their technical, decision making and interpersonal skills.


45

7. Organisational Flexibility:

Management has found that teams are more flexible and responsive to changing events than are

traditional departments or other forms of permanent groupings. Teams have the capability to

quickly assemble, deploy, refocus and disband. All this is because of the reason that teams focus

on processes rather than functions. They encourage cross training so members can do each

other’s jobs and expansion of skills. This expansion of skills increases organisational flexibility.

Though the introduction of teams does not always achieve these benefits, but we can’t ignore the

reality that team movement currently has tremendous momentum and reflects management’s

belief that teams can be successful in a wide range of settings. There are obviously contingency

factors that influence the acceptance and success of teams.

THE MOST ESSENTIAL INGREDIENTS FOR CREATING EFFECTIVE TEAMS:

1. Ideal Size and Membership.

The team should be the minimum size needed to achieve the team’s goals and include

members with the right mix of skills and talents to get the job done.

2. Fairness in Decision-Making

Ideally, teams will make decisions by consensus. When consensus is not feasible, teams will

use fair decision-making procedures that everyone agrees on.

3. Creativity

Effective teams value original thinking and will produce new and unique approaches to

organizational problems.

4. Accountability

Members must be accountable to each other for getting their work done on schedule and

following the group’s rules and procedures.

5. Purpose and Goals

Every team member must clearly understand the purpose and goals for bringing this

particular group of individuals together.


46

6. Action Plans

Help the team determine what advice, assistance, training, materials, and other resources it

may be needed.

7. Roles & Responsibilities

Teams operate most efficiently if they tap everyone’s talents. All members understand their

own duties and know who is responsible for what.

8. Information Sharing

Effective discussions depend upon how well information is passed between team members –

hoarding information cannot be tolerated. A proliferation of new technologies has made this

easier than it has ever been.

9. Good Data

With information sharing comes the requirement for good data. Teams that use good data for

problem-solving and decision making have a much easier time arriving at permanent

solutions to problems.

10. Meeting Skills and Practices

All team members must commit to a common method for conducting meetings. There is no

‘best’ method, but everyone must be on the same page.

11. Decision Making

This is really a subset of the ‘Skills & Practices’. There is no ‘one way’ to reach a decision,

but it must be a recognized path and transparent to all team members.

12. Participation

Since every team member has a stake In the group’s achievements, everyone should

participate in discussions and decisions, share a commitment to the team’s success, and

contribute their talents.


47

13. Ground Rules

Groups invariably establish ground rules (or “norms”) for what will and will not be tolerated

within the group. Many members will want to skip the laying of ground rules, but in the long

run investment up front will head off major issues down the road.

14. Clear Roles

How we apportion the team purpose will in large measure determine the- team synergy.

High-performing teams leverage individuals’ different roles against collective work products.

Therefore, it is essential that every team member is clear about his or her own role as well as

the role of every other team member. Roles are about the design, division, and deployment of

the work of the team.

While the concept is compellingly logical, many teams find it challenging to implement.

There is often a tendency to take role definition to extremes or not to take it far enough.

15. Accepted Leadership

High-performance teams need competent leadership. When such leadership is lacking,

groups can quickly lose their way. Whereas a common, compelling task might be the biggest

contributor to team effectiveness, inadequate team leadership is often the single biggest

reason for team ineffectiveness.

In most organizational settings, it is the leader who frames the team purpose and facilitates

discussions on its meaning and nature. The vision, commitment, and communication of the

leader govern the optics through which individual team members see the team purpose and

become aligned to it.

16. Effective Processes

Teams and processes go together. It would never occur to a surgical team, construction crew,

string quartet, or film crew to approach tasks without clearly defined processes. The

playbook of a football team or the score sheet of a string quartet clearly outlines the

necessary processes.

Business teams have processes as well, which might include solving problems, making

decisions, managing a meeting, or designing a product.


48

17. Solid Relationships

One of the biggest misperceptions in the world of teams and teamwork is the belief that to

work and communicate effectively, team members must be friends.

In fact, the diversity of skills, experience, and knowledge needed to divide tasks effectively

almost precludes high levels of friendship, which is most often based on commonality — of

the way people think, their interests, or beliefs.

18. Excellent Communication

Communication is the very means of cooperation. One of the primary motives of companies

choosing to implement teams is that team-based organizations are more responsive and move

faster. A team cannot move faster than it communicates.

Fast, clear, timely, accurate communication is a hallmark of high levels of team performance.

High-performance teams have mastered the art of straight talk; there is little motion wasted

through misunderstanding or confusion.

STRATEGIES OF CHANGE

Here are five effective change management strategies that deal with the human element of

organizational change.

1 . P ro p o s e I n c e n t i v e s

Assuming employees will follow their own self-interests, the first change management strategy

is to offer incentives that will encourage people to accept and ultimately engage with the new

direction of the company.


49

Employee recognition programs and rewards tailored to specific actions and company values

provide the “carrot” some workers need to buy into change. Incentives also help reinforce the

behaviors and actions upper management is looking for in this time of upheaval. Lastly, this

positive model of change management shows that the leadership appreciates their employees

during a difficult time of transition.

2 . R ed e f i n e Cu l t u ra l V a lu e s

Another way to drive employee buy-in is to redefine organizational culture values. This change

management strategy is based on the underlying assumption that people, as social beings, want to

“fit in” and “go along” with cultural norms and values.

Establishing a culture of continuous improvement is one way to change the hearts and minds of

employees asked to change the way they work. In this example, employees may be more

receptive to new ways of working (and new ways of thinking about work) if they have already

bought into the idea of continuous improvement and the upheaval that comes with change.

3 . E xe rc i s e A u t h o r i t y

Depending on how serious the need for change is, an organization may choose to exercise its

authority to decrease employee opposition and get workers to adhere to new standards,

processes, and cultural norms as quickly as possible.

If the threat is grave enough that imminent change is necessary for survival, organizations might

simply not have the time to invest in incentive programs or culture change initiatives. The

coercive strategy can be the fastest way to implement change — “my way or the highway” —

but it can also breed resentment and opposition among some employees that may become

problematic in the future.


50

4 . S h i f t t h e B u rd e n o f C h an g e

Although people are often quick to oppose change, especially change they view as undesirable or

disruptive, they are often even quicker to adapt to new environments. Organizations can take

advantage of this adaptability by creating a new structure — complete with new processes,

workflows, and values — and gradually transfer employees from the old one.

This strategy is best suited for situations involving radical, transformative organizational change.

Instead of burdening upper management with enticing or coercing employees to accept specific

change initiatives, the burden of change is shifted to the workers who gradually (or all at once)

find themselves in the confines of a new organization. Once there, employees are faced with the

prospect of adapting to new circumstances or being left behind to “die on the vine” with the old

organization.

5 . R e c ru i t C h a m p io n s o f Ch a n g e

Radical change is often met with a high degree of resistance, but the odds of success can be

improved if the voices championing change belong to workers and not solely upper management.

Recruiting frontline employees to share the need for change (and the benefits) with their peers

can speed up worker buy-in, lower the degree of resistance, and serve as a mechanism for

collecting feedback and disseminating information regarding the planned change initiative

INTER-DISCIPLINARY NATURE OF ORGANIZATIONAL DEVELOPMENT

1. Planned Change:







51





be a stopgap arrangement or measure. O.D. is a long term approach (of 3 to 5 years period)

and is meant to elevate the organization to a higher level of functioning by improving the

performance and satisfaction of organization members.






5. Change Agent:











52

6. Action research






8. Problem Solving:











provided by OD.





11. Group Process:





53






13. Feedback:









15. Team Building:







54

UNIT –II

ACTION RESEARCH AND OD

ACTION RESEARCH

A conventional approach in the organizational development process is the action research model.

This model is used by many organizations to guide the OD process. It entails what its name

describes – research and action.

However, there is much more to the OD process than just research and development. There are

multiple loops used to transmit feedback, which makes an organization more responsive to

change.

COMPONENTS OF THE ACTION RESEARCH MODEL

The action research model comprises six key components:

1. Problem diagnosis

The organization development process begins by recognizing problems. The method of diagnosis

usually takes the form of data gathering, assessment of cause, as well as an initial investigation to

ascertain options.

2. Feedback and assessment

The feedback and assessment step often involves proper investigation of identified problems so

that there is a deep understanding of the challenge at hand. This can include an appraisal of

documents, focus groups, customer or employee surveys, hiring consultants, and interviewing

current employees. Information gathered is used to re-evaluate the challenges in the first step.

3. Planning

Once an organization defines and understands its challenge, an action plan is put together. The

plan lays down all the intervention measures that are considered appropriate for the problem at

https://corporatefinanceinstitute.com/resources/knowledge/other/focus-group/


55

hand. Usually, the measures include such things as training seminars, workshops, team building,

and changing the makeup or structure of teams. Additionally, measurable objectives, which

define the expected results, form an integral part of the overall plan.

4. Intervention and implementation

Once a plan is in place, the intervention phase commences. Since the organizational development

process is complicated, implementation processes are a key element of the model. As an

example, if training classes are preferred over other methods, test results will form the basis upon

which the training process is evaluated. The objective at this point is to ensure the required

changes take place. If that is not the case, feedback is assessed and used to bring about the

required change.

5. Evaluation

As soon as the intervention plan is complete, the outcome of the change in the organization is

assessed. If the required change does not take place, the organization looks for the cause.

Adjustments are made to ensure the obstacle is eliminated.

6. Success

Success denotes that the desired change took place. A proper plan and efficiency standards are

put in place to ensure that the new switch is sustainable. Ongoing monitoring is needed to ensure

that implemented changes last. Furthermore, as markets and organizations change, new problems

can arise, leading to the push for further development. Great organizations evolve continuously.

Final Thoughts

Organizational development is essential, as it helps organizations transition into a more

productive phase. Change helps to bring new ideas and ways of doing things, and it ensures that

an entity is innovative and profitable.

https://corporatefinanceinstitute.com/resources/careers/soft-skills/team-building/


56

Action Research is a process which serves as a model for most OD interventions.

"The steps in Action Research are:

1. Entry.

This phase consists of finding needs for change within an organization. It is also the time to

quickly grasp the nature of the organization, identify the appropriate decision maker, and build a

trusting relationship.

2. Start-up and contracting.

In this step, critical success factors and the real issues are identified. We link into the

organization's culture and processes, and clarify roles for the consultant(s) and employees. This

is also the time to deal with resistance within the organization. A formal or informal contract will

define the change process.

3. Assessment and diagnosis.

Here data is collected to find the opportunities and problems in the organization.This is also the

time for the consultant to make a diagnosis, in order to recommend appropriate interventions.

4. Feedback.

This two-way process serves to tell what was found out, based on an analysis of the data.

Everyone who contributed information should have an opportunity to learn about the findings of

the assessment process (provided there is no apparent breach of anyone's confidentiality.) The

feedback should start with the executive client and his/her team. Usually it is cascaded down

through the organization to reach all who have participated. This provides an opportunity for the

organization's people to become involved in the change process, to learn about how different

parts of the organization affect each other, and to participate in selecting appropriate change

interventions.


57

5. Planning Change.

In this step recommendations are distilled from the assessment and feedback. Alternative actions

are considered and the focus of the intervention(s) is on activities that have the most leverage to

effect positive change in the organization. An implementation plan is developed that is based on

the assessment data, is logically organized, results- oriented, measurable and rewarded. The next

step is to plan for a participative decision-making process for the intervention.

6. Intervention.

Now, and only now, the actual change process is carried out. It is important to follow the action

plan, yet remain flexible enough to modify the process as the organization changes and as new

information emerges.

7. Evaluation.

Successful OD must have made meaningful changes in the performance and efficiency of the

people and their organization. An evaluation procedure to verify this success, identify needs for

new or continuing OD activities, and improve the OD process itself to help make future

interventions more successful is needed.

8. Adoption.

After steps have been made to change the organization and plans have been formulated, follow-

up is started by implementing processes to insure that this remains an ongoing activity within the

organization, that commitments for action have been obtained, and that they will be carried out.

9. Separation.

It must recognize when it is more productive for the client and consultant to undertake other

activities, and when continued consultation is counterproductive. The change should be

monitored for its success possibly to plan for future change activities.


58

NATURE OF OD INTERVENTION

1. OD interventions are planned activities

2. OD interventions refer to implementation of entire OD program systematically.

3. OD interventions are decided mutually by client and a consultant.

4. Selection of appropriate OD intervention denotes careful diagnosis of current system of an

organization.

5. Application of OD interventions require participation and involvement of a client system.

6. OD interventions focus on social and task performance enhancement.

7. OD interventions differ From organization to organization based on requirement.

PARALLEL LEARNING STRUCTURE

MEANING:

The concept of parallel learning structures was introduced by DaleZand in 1974

Parallel learning structures co exist with the formalorganizational structures These structures are

formed to solve the problems that remain unresolved by the formal structures The parallel

learning structure is also known as the collateral organization

The collateral organization consists of a steering committee and several working groups

who study the organization and identify the changes to be implemented

Parallel learning Structure is a mechanism to facilitate innovation in large bureaucratic

organizations where the forces of inertia, hierarchical communication patterns & standard ways

of addressing problems inhibit learning, innovation & change Parallel learning structure is


59

created that operates side-by-side with the formal hierarchy & structure with the goal of

increasing organization’s learning.

FEATURES

Temporary groups that cut across traditional organizational boundaries.

Formed to address a specific issue or need.

Bring creative approaches to problems that have challenged traditional decision making.

Result in bringing organization to a new level of awareness.

WHEN TO USE PARALLEL LEARNING:

To foster innovation and creativity within a bureaucratic system.

To support the exchange of knowledge and expertise among performers.

To capture the organization's collective expertise.

To develop and implement organization-wide innovations

RESISTANCE TO CHANGE

Change is basically a variation in pre-existing methods, customs, and conventions. Since all

organizations function in dynamic environments, they constantly have to change themselves to

succeed. Change management contains several strategies that help in facilitating the smooth

adoption of such changes.

One of the most important facets of change management is resistance to change. It is simply human

nature to counteract any changes and maintain the status quo.


60

Resistance to change may be either overt or implicit. For example, employees may react to a change

in policies with outright rejection and protests.

They may even refrain from showing disapproval expressly, but they may do so implicitly by not

accepting changes. Managers must understand these problems and help the employees adopt these

changes smoothly.

TYPES OF RESISTANCE TO CHANGE

Resistance to change may be of the following three types:

a) Logical resistance: This kind of resistance basically arises from the time people genuinely take

to adapt and adjust to changes. For example, when computers became common, accountants had to

shift from accounting on paper to digital accounting. This naturally takes time to adapt to.

b) Psychological resistance: Under this category, the resistance occurs purely due to mental and

psychological factors. Individuals often resist changes for reasons like fear of the unknown, less

tolerance to change, dislike towards the management, etc.

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

values and customs of groups. Individuals may be willing to change but will not due to peer

pressure from the group they are members of. For example, if a workers’ union protests against new

management policies, all workers face pressure to protest together.

REASONS FOR RESISTANCE TO CHANGE

A. Individual Factors responsible for Resistance to Change

B. Organizational factors

A. Individual Factors responsible for Resistance to Change


61

1. job Loss

Job loss is a major reason that employees resist change in the workplace. In any business, there

are constantly going to be things moving and changing, whether it is due to the need for more

efficiency, better turnaround times, or the need for the employees to work smarter. With all these

needs comes the opportunity for the company to downsize or create new jobs, and this is where

the fear of job loss comes into play.

2. Poor Communication and Engagement

Communication solves all ills. But a lack of it creates more of them. This is another crucial

reason why employees oppose change. How the change process itself is communicated to the

employees is very important because it determines how they react. If the process of what needs

to be changed, how it needs to be changed and what success would look like cannot be

communicated, then resistance should be expected. Employees need to understand why there is a

need for change, because if they are just thrown the notion that what they have been used to for a

long time is going to be completely renovated, with that will come much backlash.

3. Lack of Trust

Trust is a vital tool to have when running a successful business. In organizations where there is a

lot of trust in management, there is lower resistance to change. Mutual mistrust between

management and employees will lead to the company going into a downward spiral, so trust is a

must.

4. Lack Of Confidence

When employees do not trust or feel confident in the person making the change, their resistance

to it can be a huge barrier. In fact, change advisor and author Rick Maurer believes that lack of

confidence in change-makers is a cause of resistance to change in organizations that is most

often overlooked.

https://rickmaurer.com/wrm/


62

5. Problem of Adjustment

Perhaps most important factor for resistance to change is the problem of adjustment. Each

individual tries to maintain a sort of equilibrium, both at formal level as well as at informal level.

When change comes, it requires people to make adjustment so as to cope with the new situation.

People seek status quo because once they establish equilibrium, they may not like that it is

disturbed. Status quo gives them more satisfaction because the existing equilibrium has been

arrived at by eliminating those forces which give people discomforts. When change is

introduced, this equilibrium does not remain as satisfactory as it was before the change

6. Economic Reasons

People resist change if they feel that it is likely to affect them unfavorably so far as their

economic needs are concerned. The greater the amount of loss perceived, greater is the degree of

resistance. People may perceive several types of economic losses because of change, major of

them being as follows:

1. Fear of technological unemployment;

2. Fear of reduced work hours and consequently reduced monetary benefits;

3. Fear of demotion and consequently reduced pay;

4. Fear of speed-up and reduced incentive wages; etc.

It can be seen that many of the above factors are quite real and not merely imaginary. For

example, automation may replace many workers and they will be put out of employment if no

alternative employment is provided by the organization, or the organization is not able to

increase its volume of operation so as to absorb all workers. This is the reason why automation is

resisted by workers, and they accept it only when they are guaranteed for alternative jobs.


63

7. Obsolescence of Skills

Change may result in obsolescence of skills specially when altogether a new method of working

is adopted. With the adoption of new method of working, old techniques become useless and

consequently old skills become obsolete. Therefore, when people sense that new method of

working poses a threat of replacing them or in some way affecting them adversely, they will

resist it.

It is not necessary that with the adoption of new method, people with old skills will be replaced;

there may be other consequences also like reduction in authority of the position which they have

been holding, attaching less importance to the jobs they have been performing, and so on.

For example, with the introduction of computers, the jobs of accountants may be changed

completely, and unless they adapt themselves to the new situation, their utility will be reduced

and their job will become less important to the organization. Either accountants change

themselves which is not an easy task, or try to stall the move of putting computers. Thus, fear of

obsolescence of skills may be reason for resisting change. This phenomenon is commonly found

in those people who possess no real marketable skills and whose knowledge is outdated.

8. Emotional Factors

There are many emotional factors which also generate resistance to change. As indicated earlier,

people may not analyze the likely impact of change in an objective manner but they may be

governed by their feelings, emotions, attitudes, etc. Thus, many factors will produce resistance to

change like fear of unknown, ego defensiveness, group norms, and social displacement.

B. Organizational Factors responsible for Resistance to Change

Beside individual factors, the organization also may resist change. Some of the organizations are

so designed that they resist innovation and change. For example, organizations that perform a

narrowly prescribed assortment of functions oppose change. They create strong defense against

change. This is the reason why many organizations fail to change over a period of time, though

this phenomenon may be disastrous to them.


64

1. Threat to Power and Influence

A change is likely to be incorporated successfully if it has the blessing and support of top

management. When people, at the top level, consider change as a potential threat to their position

and influence, they resist it.

A change is likely to produce a new power equilibrium with more emphasis on knowledge and

new skills. This new equilibrium may reduce the amount of power and influence of people at the

top which may not be liked by them. Therefore, they may resist any such change.

2. Organization Structure

Some forms of organization structure are more resistant to change, for example, bureaucratic

structure. A bureaucratic structure where lines of communication are clearly spelled out, jobs are

precisely defined, works against change. Since all these are prescribed rigidly, there is very little

scope of making changes. Moreover, the flow of information from top to bottom level is stressed.

Therefore, there is every possibility that an information initiating or necessitating change may be

screened out at the higher level itself because change does not suit the present organization

structure. Unless the person at the top is highly dynamic, change will always be resisted.

3. Resource Constraints

Many organizations resist change because of resource constraints. It is to be noted that all

organizations have limited resources because resources are limited by their basic nature.

However, some organizations may feel resource constraints more than others. In such a case, the

organizations may not like to incorporate change because it involves some additional cost at least

in the beginning.

4. Sunk Costs

Organizations may also resist change because they have invested in fixed assets and other

resources. These costs cannot be recovered unless the assets and resources are put to productive

use. When change is incorporated, many of these resources become useless. This may be true for

assets as well as for persons also. For example, earlier it has been seen that change may result in

obsolescence of skills.

https://accountlearning.com/three-management-levels-of-organization/

https://accountlearning.com/three-management-levels-of-organization/


65

IMPLEMENTING CHANGE

Kurt Lewin developed a change model involving three steps:

Lewin’s Change Management Model

Lewin’s Change Management Model is one of the most popular, most accepted and most

effective models that make it possible for companies to understand organizational and structured

change. This model consists of three main stages which are: unfreeze, change and refreeze.

Unfreeze: The first stage of the change process is the preparation for change. Here,

employers must get prepared for the change and explain to people why the change is

necessary. As most people are resistant to change, this step helps to break this status quo.

Change: In this stage, the change process takes place. Good leadership and effective

employee communications are crucial for this step.

Refreeze: In this stage, the change has been accepted. This is the time when the employees

start going back to their normal pace and routine. This last step requires leaders to make sure

that the changes are adopted and used even after the change management objectives have

been achieved.

Most common examples when change management is necessary to successfully

implement changes within organizations include:

Implementation of a new technology

Mergers & acquisitions

Change in leadership

Change in organizational culture

Times of a crisis

CHANGE COMMUNICATION

Change communication is the informational component of the change management strategy. It

helps employees and other stakeholders understand the importance and scope of the new


66

initiatives. Every change communication strategy should consist of delivering timely, relevant

and consistent information and documents, as well as mechanisms to share feedback, raise

concerns and ask questions.

Implementing the right change communication strategy is never an easy job. As most people

resist change in the workplace, effective change communications is the most important

prerequisite for a successful organizational change.

The business world has been undergoing significant changes in the past few months.

Organizations are updating their policies, procedures and strategies in order to mitigate the

negative consequences of the current pandemic.(COVID-19)

That's why change communication now plays a crucial role in ensuring business continuity.

BEST PRACTICES AND STRATEGIES EVERY ORGANIZATION SHOULD

FOLLOW:

.

1. Build a solid change communication strategy

Before starting with the change communications efforts, one should first put down a compelling

change communications strategy and plan.

Plan should consist of:

1. Clearly defining the change and vision for the future

2. Assessing all the factors related to the change

3. Analyzing all the stakeholders affected

4. Considering changes to day-to-day operations

5. Defining key messages

6. Creating inspiring and motivational internal content

7. Building an editorial communications calendar

8. Defining and understanding various internal audiences


67

9. Choosing the right communications channels needed to reach the right employees at the right

time

10. Measuring the impact of your communications efforts

2. Get the leaders and managers on board

The role of leadership in change communications is crucial.

Front-line supervisors, middle managers as well as C-level executives should all act as role

models who know how to drive change and encourage employees to embed new behaviors.

This is even more important in this situation where employees expect from their leaders to

be authentic and trustworthy communicators.

For any change to be successful, leaders should continuously lead their teams and reinforce

progress. However, even though employees want to hear from leaders during change, research

proves that this is not always the case.

3. Define the most effective communication channels

Delivering timely and relevant information is crucial for successful change communications. In

order to ensure that the right message reaches the right employees at the right time, it is

critical that employers understand their internal communications channels and define the ones

that are most likely to catch employees’ attention.

Even though email is still a common way to get these messages out, this is not the most effective

form of communication at work anymore. Moreover, important and relevant email bake only

38% of your employees' inboxes. That means that employees tend to ignore their emails due to

the extensive information overload and content irrelevancy.

4. Communicate frequently to eliminate fatigue

Communications leaders report managing change fatigue as their top mission-critical priority.

Key to this is an effective change communications strategy that delivers the right information,

messages and resources at the right time to enable employees for success and make them accept

the change.


68

Many employees will remember the current pandemic as the most stressful period of their

careers. Some are concerned about their health while others are concerned about losing their

jobs, and most employees are struggling to keep up with all the new company's rules and

regulations.

When change is first announced, most employees will be in denial, rejecting it. This is why it is

crucial to clearly define what kind of information should be communicated and how often it

should be shared with employees.

5. Build internal awareness with creative communication campaigns

Today’s internal communicators also need to be creative content creators. Employees won’t

react to just any kind of internal campaign any more. We could even say that it is IC

professional’s job to get the employees’ buy-in during change, making their job very similar to

what marketers and salespeople do.

When creating change communications campaigns, think out of the box. For example, instead of

just sending an internal newsletter, consider creating a fun video. Instead of making a

company-wide email announcement, create a channel designated to the change where people can

also join the conversation.

Remember, when your employees are on board and engaged with your change initiative, the

chances of launching a successful change strategy increases by 30%.

6. Make communication personal and relevant

One of the biggest challenges with internal change communications is audience segmentation

that enables content localization, personalization and relevancy. Yet, if you send more than a

few irrelevant emails to your employees, expect no attention from them in the future.

If you are implementing change, it will probably not have the same impact on your employees in

the US and Asia, remote and in-office employees, digital and blue-collar employees, employees

in marketing versus employees working in production departments.

Again, the current situation is a great example of the importance of content

relevancy especially if you are in healthcare, travel and tourism or retail industry. Front-line


69

employees working in those industries may be at higher risk of getting infected than the ones

working from home.

Therefore, change communications messages cannot be the same for everyone. One size does

not fit all!

7. Clear the path to two-way communications

When employees can talk publicly or in a closed group about their feelings, concerns and

experiences, or when they have the ability to ask their leadership questions, it helps them feel

like they have a voice in change.

8. Enable easy access to important documents and information

Making important messages and documentation easy for employees to access is a vital part of

every change communications strategy. Employers need to ensure that information about

change is at employees’ fingertips. Moreover, they should ensure that the important

information finds employees, and not the other way around.

9. Publicly recognize your change ambassadors

When employees accept change, they should be recognized and rewarded for their work. This

will encourage them to move forward, and it will show others about the desired behaviors and

actions.

Therefore, consider implementing public employee recognitions as a part of your change

communication campaigns. Celebrate your employees’ wins publicly and create a healthy

working environment.

10. Recognize and reward

77% of employees say that they would work harder if they were recognized for their work.

Therefore, this approach can be a great motivation to comply with and implement the changes

faster.

https://yfish.co.uk/blog/2016/01/25/how-reward-and-recognition-could-benefit-you/


70

Recognize and reward employees for accomplishments and for adopting new behaviors during

the transformation process. Celebrate the wins and milestones.

11. Empower your employees

Empower your change management leaders as well as employees to engage in the change

process by giving them freedom to make their own decisions and implement new ideas.

If your employees don’t feel empowered, the engagement level will drop and result in

resistance to change.

12. Encourage conversations and communicate regularly

Employee relations have a big impact on encouraging conversations before, during and after

the changes are implemented.

Start a conversation among your employees in order to find out how they feel about the new

initiatives. Understand that true communication is a two-way conversation

CONSOLIDATION CHANGE:

It is a process of combining two or more organizations through purchase, merger, or ownership

transfer to form a new organization. It involves the combining of assets, equities, liabilities and

operating accounts into one financial statement.

Once implemented, change is not always embedded in an organization. The ability to make the

change “stick” indicates the long-term success of the change “becomes the new normality “no

longer seen as a change initiative “baked into the organization”“becomes the way we do things

around here “There are a number of actions that can help consolidate change.

https://blog.smarp.com/employee-empowerment-where-to-start-and-how-to-do-it-right

https://blog.smarp.com/what-are-employee-relations-and-why-are-they-important


71

ACTIONS FOR CONSOLIDATING CHANGE

1. Redesigning roles:

This is a common outcome of change and is a sign that the change is of considerable importance.

(Beer) – too much focus on changing attitudes and beliefs – change roles and responsibilities

instead (i.e. behavior)

2. Redesign reward systems:(Beer and Nohria): No successful change without changing

rewards

3. Link selection decisions to change objectives:

Selection criteria are symbols of whether new ideas and change are being encouraged. “Subtle

yet potent”

4. Act consistently with advocated actions:

“Walk the talk”

Praise and recognition

Resource allocation

5. Encourage “voluntary acts of initiative”:

“Local initiatives” on detailed actions that support the change should be encouraged as the norm

at all levels of the organization. Don’t over-control!

6. Measure progress:

Measures are used as a means to quantify the progress of change and “what gets measured, gets

done”


72

INTRODUCTION TO ORGANIZATIONAL DEVELOPMENT;

MEANING:







change.

DEFINITION:

R. Beckhard defines O.D. as a change strategy which is:

(i) Planned.



interventions in the organization’s processes, using behavioral science knowledge.

FEATURES OF ORGANIZATIONAL DEVELOPMENT

1. Planned Change:









73



be a stopgap arrangement or measure.






5. Change Agent:










6. Action research







74

7. Problem Solving:











provided by OD.





9. Group Process:










75

11. Feedback:









13. Team Building:






BENEFITS OF ORGANIZATIONAL DEVELOPMENT

Increasing productivity and efficiency comes with many benefits. One of the best ways to

encourage positive results in these metrics is by using a well-thought-out organizational

development structure. Organizational development is used to equip an organization with the

right tools so that it can adapt and respond positively (profitably!) to changes in the market. The

benefits of organizational development include the following:

1. Continuous development

Entities that participate in organizational development continually develop their business models.

Organizational development creates a constant pattern of improvement in which strategies are

developed, evaluated, implemented, and assessed for results and quality.


76

In essence, the process builds a favorable environment in which a company can embrace change,

both internally and externally. The change is leveraged to encourage periodic renewal.

2. Increased horizontal and vertical communication

Of considerable merit to organizational development is effective communication, interaction, and

feedback in an organization. An efficient communication system aligns employees with the

company’s goals, values, and objectives.

An open communication system enables employees to understand the importance of change in an

organization. Active organizational development increases communication in an organization,

with feedback shared continuously to encourage improvement.

3. Employee growth

Organizational development places significant emphasis on effective communication, which is

used to encourage employees to effect necessary changes. Many industry changes

require employee development programs. As a result, many organizations are working toward

improving the skills of their employees to equip them with more market-relevant skills.

4. Enhancement of products and services

Innovation is one of the main benefits of organizational development and is a key contributing

factor to the improvement of products and services. One approach to change is employee

development – a critical focal point is a reward for motivation and success.

Successful engagement of employees leads to increased innovation and productivity.

Through competitive analysis, consumer expectations, and market research, organizational

development promotes change.

5. Increased profit margins

Organizational development influences the bottom line in many different ways. As a result of

increased productivity and innovation, profits and efficiency increase. Costs come down because

https://corporatefinanceinstitute.com/resources/careers/soft-skills/employee-training-and-development/

https://www.bigcommerce.com/blog/how-perform-competitive-analysis/

https://corporatefinanceinstitute.com/resources/knowledge/accounting/what-is-net-income/


77

the organization can better manage employee turnover and absenteeism. After the alignment of

an entity’s objectives, it can focus entirely on development and product and service quality,

leading to improvements in customer satisfaction.

PROCESS OF ORGANIZATIONAL DEVELOPMENT (OD) – STEPS GENERALLY

INVOLVED

Following steps are generally involved in an organizational development programme:

(1) Diagnosis of the Problem:

Organisation development programme starts with the identification of the basic problems

involved in the organisation. Analysis of the various symptoms may be helpful in identifying the

problem. Proper diagnosis will give correct identification of the problem and its causes and

determine the scope of future course of action.

In this the diagnosis involves a number of techniques concerned with identifying issues,

establishing priorities and translating them into aims and objectives. In this the major

consideration is given to the techniques of identifying basic problems and issues.

(2) Planning to Change Strategy:

In this the attempts are made to transform diagnosis of the problem into a proper action plan

involving the overall goals for change, determination of the basic approach for attaining these

goals and the sequence of detailed steps for implementing the approach.

(3) Intervening in the System and Implementing Change:

Intervening in the system refers to all the planned activities during the course of an organisation

development programme. Organisation development interventions are ‘sets of structured

activities in which selected organisation units, target groups engage with a task or a sequence of

tasks where the task goals are directly or indirectly related to organizational improvement.

French and Bell has said that “Interventions constitute the action thrust of organisation

development; they make things happen. Organisation development interventions include team

development, laboratory training, managerial grid training, brain storming and intergroup team

building. The intervention should take place at all the three levels, namely, individual, group and

organisation.”


78

(4) Evaluation Process:

Organisation development programme is a -long process. Therefore, careful monitor of the

programme is essential. For that, effective appraisal of organisation development programme, the

use of critique sessions, systematic appraisal of change efforts and the comparison pre and post-

training behavioral pattern is very effective.

5) Feedback

Any OD activity is incomplete without proper feedback. Feedback is the process of relaying

evaluations to appropriate employees and group by means of special sessions or reports.

Feedback must be carefully handled because sometimes emotional factor set in.

For instance, when mistakes of some of the members are spelled out then emotional factors

accompanying the resentment may creep in. It is important to remember that feedback should be

based on the broad array of data and should include the assessment of the change model itself.

SKILLS AND STRATEGIES AN ORGANIZATIONAL DEVELOPMENT

SPECIALIST ACTUALLY NEEDS IN ORDER TO BE SUCCESSFUL IN THE

WORKPLACE.

1. Intrapersonal skills.

Despite the growing knowledge base and sophistication of the field, organization development is

still a human craft. As the primary instrument of diagnosis and change, practitioners often must

process complex, ambiguous information and make informed judgments about its relevance to

organizational issues. Practitioners must have the personal centering to know their own values,

feelings, and purposes as well as the integrity to behave responsibly in a helping relationship

with others. Because OD is a highly uncertain process requiring constant adjustment and

innovation, practitioners must have active learning skills and a reasonable balance between their

rational and emotional sides. Finally, OD practice can be highly stressful and can lead to early

burnout, so practitioners need to know how to manage their own stress.


79

2. Interpersonal skills.

Practitioners must create and maintain effective relationships with individuals and groups within

the organization and help them gain the competence necessary to solve their own problems.

Group dynamics, comparative cultural perspectives, and business functions are considered to be

the foundation knowledge, and managing the consulting process and facilitation as core skills.

All of these interpersonal competencies promote effective helping relationships. Such

relationships start with a grasp of the organization's perspective and require listening to members'

perceptions and feelings to understand how they see themselves and the organization. This

understanding provides a starting point for joint diagnosis and problem solving. Practitioners

must establish trust and rapport with organization members so that they can share pertinent

information and work effectively together. This requires being able to converse in members' own

language and to give and receive feedback about how the relationship is progressing.

3. General consultation skills.

OD starts with diagnosing an organization or department to understand its current functioning

and to discover areas for further development. OD practitioners need to know how to carry out

an effective diagnosis, at least at a rudimentary level. They should know how to engage

organization members in diagnosis, how to help them ask the right questions, and how to collect

and analyze information. A manager, for example, should be able to work with subordinates to

determine jointly the organization's or department's strengths or problems. The manager should

know basic diagnostic questions some methods for gathering information, such as interviews or

surveys, and some techniques for analyzing it, such as force-field analysis or statistical means

and distributions. In addition to diagnosis, OD practitioners should know how to design and

execute an intervention. They need to be able to define an action plan and to gain commitment to

the program. They also need to know how to tailor the intervention to the situation, using

information about how the change is progressing to guide implementation. For example,

managers should be able to develop action steps for an intervention with subordinates. They

should be able to gain their commitment to the program (usually through participation), sit down

with them and assess how it is progressing, and make modifications if necessary.


80

4. Organization development theory.

The last basic tool OD practitioners should have is a general knowledge of organization

development. They should have some appreciation for planned change, the action research

model, and contemporary approaches to managing change. They should be familiar with the

range of available interventions and the need for evaluating and institutionalizing change

programs. Perhaps most important is that OD practitioners should understand their own role in

the emerging field of organization development, whether it is as an OD professional, a manager,

or a specialist in a related area. The role of the OD practitioner is changing and becoming more

complex, Ellen Fagenson and W. Warner Burke found that the most practiced OD skill or

activity was team development, whereas the least employed was the integration of technology

(see Table 1). The results of this study reinforce what other theorists have also suggested. The

OD practitioners of today are no longer just process facilitators, but are expected to know

something about strategy, structure, reward systems, corporate culture, leadership, human

resource development and the client organization's business. As a result, the role of the OD

practitioner today is more challenging and more in the mainstream of the client organization than

in the past. OD Practitioner Skills and Activities

5. Project Management

Handled a variety of administrative and project management tasks.

Performed project management duties for PEA and clients with respect to client services and

products.

Performed project management duties including analysis, planning and coordination of

resources aimed at strategic business results and other organizational objectives.

Executed all project management and process documentation responsibilities related to the

design, development and delivery of enterprise-wide tools training initiatives.


81

6. Training Programs

Consulted with business leaders to determine the most imperative business focus areas that

can benefit from improved systems/training programs.

Developed and implemented evaluation system to assess the quality and effectiveness of

learning/training programs and HR services.

Designed and implemented metrics to measure training programs impact, effectiveness,

appropriateness, and utilization.

Conducted management/supervisory training programs for all levels at client companies.

7. Succession Planning

Identified new leaders for regional/national training and leadership opportunities and

succession planning.

Standardized and aligned performance management and succession planning processes.

Facilitated Succession Planning meetings with the senior management.

Planned and lead the Organizational Review / Succession Planning workshop with site

leadership team for talent management planning and structural planning.

Designed and implemented a Succession Planning process for field associates linking

performance management, leadership competencies and the talent review process

8. Powerpoint

Incorporated different technical applications, particularly PowerPoint in workshops and

seminars.

Prepared visual aids using Microsoft PowerPoint appropriate to course materials.

Demonstrated PowerPoint presentations that were interesting and lively, with step-by-step

graphics on technical procedures.

Prepared other marketing materials such as PowerPoint Presentations.


82

9. Workforce

Determined workforce needs and developed succession planning process, created and

spearheaded leadership programs, and consulted with labor representatives.

Implemented workforce planning and talent management to ensure that the organization

remained effective throughout mergers and transition of management staff.

Researched and aided in designing departmental roles based on current and future

organizational workforce needs.

Specialized in increasing workforce engagement and developing culture-shaping strategy to

drive growth.

10. Support and nurture others.

This ability is particularly important in times of conflict and stress; it is also critical just before

and during a manager’s first experience with team building.

POWER, POLITICS & OD

POWER MEANING:

1. The intentional influence over beliefs, emotions and behaviors of people.

o Potential power is the capacity to do so

o Kinetic power is the art of doing so

2. One person exerts power over another to the degree that he is able to exact compliance as

desired

3. “A” has power over “B” to the extent that “A” can get “B” to do something that “B” would

Otherwise not do.


83

4. The ability of those who possess power to bring about the outcomes they desire.

5. The capacity to effect (or affect) organizational outcomes

6. “Pouvoir” from the French stands for both the noun “power” and the verb “to be able”

COMMON ELEMENTS OF THE DEFINITIONS

• Reflectance—getting one’s way

• Necessity of social interaction among two or more parties

• The act or ability to influence others

• Outcomes favoring one part over the other

• Power is the ability to get one’s way in a social situation.

MCCLELLAND AND THE TWO FACES OF POWER

• Positive power characterized by socialized needs to initiate, influence and lead – Seeks to

empower self and others

• Negative power characterized by primitive, unsocialized need to dominate others – Seeks to

dominate and control others.

FRENCH AND RAVEN’S 5 BASES OF POWER

1. COERCIVE POWER: It depends on fear. One reacts to this type of power out of fear of the

negative results that might occur if one fails to comply. It rests on the application (or the threat)

of physical sanctions.


84

2. REWARD POWER: It is the opposite of coercive power. People comply because doing so

produces benefits, anyone who can distribute rewards that others value will have power over

them.

3. LEGITIMATE POWER: It represents the power a person receives as a result of his or her

position in the formal hierarchy of an organization. Legitimate power is broader than the power

to coerce and reward. It includes acceptance of a person’s authority by members of the

organization.

4. EXPERT POWER: It is influence wielded as a result of experience, special skill, or

knowledge. Expertise has become a strong source of influence as the world has become more

technologically oriented. As jobs become more specialized, we become more dependent on

“experts”

5. REFERENT POWER: It is based on identification with a person who has desirable resources

or admirable personal traits. It develops out of an admiration for someone and a desire to be like

that person, if person A admires person B enough to model behavior and attitudes after him or

her, then person B has power over person A.

OD, POWER AND POLITICS

OD values consistent with positive face of power – Trust, openness, collaboration,

individual dignity, promoting individual and organizational competence

Emphasis on power equalization the whole organization has more– Increases power

among organizational members power.

OD in Political Environments :

1. Become a desired commodity personally and professionally

• High interpersonal competence

• Listening, communication, problem-solving, coaching, counseling skills; appreciating other.


85

2. Make OD a desired commodity

• OD allows individuals and organizations to reach their goals

3. Make OD a valued commodity for multiple powerful people in the organization

• Creates value for OD • Increases power base and support • Endorsement, support and

protection of OD interventions.

4. Create win-win situations

• Enhance stable, constructive social relationships • Different way to handle conflict

5. Mind you own business (help others solve their major problems) • Help upon request •

Help the manager meet her/his goals

6. Mind your own business and don’t invite political trouble • OD practitioner’s role is that of

facilitator, catalyst, problem-solver, and educator • Role is not power-broker or power activist.

ETHICS IN OD

1. Participation, involvement and empowerment

This may be the most fundamental value we hold as OD practitioners. We know that “people support

what they help create.” Therefore, we encourage our clients to see the benefit of involving all

organizational members in decision-making and change processes as appropriate.

2. The importance of groups and teams

Organizations are made up of a variety of formal and informal groups and teams. Therefore, we

encourage clients to recognize the norms and beliefs that come along with these structures in order to

help those groups and teams contribute most effectively to the organization.


86

3. Growth, development and learning

As OD practitioners, we have an optimistic view of people and teams. Therefore, we believe that

our work with organizations should help people to learn the skills needed to help them navigate

change in the future.

4. Valuing the whole person

In order to help individuals maximize their potential in an organization, we respect that people are

complex. Therefore, we work hard to understand individuals have diverse needs, skills, and feelings

and respect those differences in our work with them.

5. Dialogue and collaboration

Conflict is inevitable in teams and organizations. Therefore, we believe in using dialogue to address

conflict in a healthy, open manner in order to move past the dysfunction that suppressed conflict can

create.

6. Authenticity, openness and trust

In order to create trusting environments, organizational leaders and members must consistently

demonstrate honesty and transparency in their words and actions. As OD practitioners, we must

model this at all times.

FOUR HYPOTHESES ABOUT THE FUTURE OF OD AS A FUNCTION AND ABOUT

THE DRIVERS THAT SHAPE IT.

1. Organization development must offer a compelling vision for the organization of the future

OD should not only be up-to-date with new models, but should also have a strategic view of what

those models imply for a particular context. Not every industry and value creation model will fit or

will be ready to experiment with a self-management model, for example. To that end, OD must

https://www.managementkits.com/blog/new-forms-of-organizing-the-role-of-context

https://www.managementkits.com/blog/new-forms-of-organizing-the-role-of-context


87

engage senior leaders at eye level and be prepared and capable of infusing the OD agenda and

insights into the organization’s strategic discussion

2. Organization development must evolve its toolkit to design and develop organizations for new

forms of hierarchy, leadership, and decision-making

With new forms of organizing and models based on decentralization of authority advancing, OD

leaders must reassess their toolboxes. Will the theories, frameworks, interventions, and

workshop formats of the past have the same relevance? What aspects of them must be further

developed? One example: how do we define and develop leadership when there is no (single)

boss and no fixed allocation of authority over a team’s activities? This is not to say that all of

OD’s know-how is obsolete – far from it! But most OD teams will have to put in the effort to be

on top of a whole new range of issues.

3. Organization development teams have to rethink the way they deliver their services

Working in the context of organizations transforming in a fundamental way, OD will have to

reassess their delivery models.

It will no longer be enough to cascade an OD strategy signed off by senior management along the

chain of command, or to use dedicated interventions and trainings alone.

The future of OD will require working in a much more integrated fashion, often alongside

business functions. Instead of trainings in which the OD agenda can be promoted in a protected

space, OD will have to find ways to integrate their value delivery into the business agenda,

working with leaders and teams as part of the action.

Relating content will increasingly have to happen through blended formats, leveraging both

technology and a direct involvement with the teams being supported.

And OD will have a new role, empowering and enabling business and functional leaders across

the organization to make contributions to the organization’s development. As such, OD will have

to command “meta tools” that allow it to enable others.


88

4. Organization development must define its strategy interfacing with leadership development,

learning and development, and talent management functions

OD will have to work with neighboring functions, including leadership development, talent

management, and learning and development. Sometimes the functional structure makes alignment

more likely (e.g. with all those functions sitting under the joint leadership of HR), but even then,

a coordinated approach is far from guaranteed.

Regardless of the structural set-up, those functions will be crucial to buy into the organizational

vision mentioned above.

For example, the organizational vision discussed above must be a key context factor for any

leadership development effort. The delivery model of OD interventions should be integrated with

the overall learning and development strategy of an organization. And “organizational

intelligence”, meaning the capabilities and practices of leading and collaborating that keep

organizations effective, should be considered in a company’s talent management approach.


89

UNIT-III

OD INTERVENTION

MEANING AND DEFINITION

“OD interventions are set o f structured activities in which selected organizational units (target

groups or individuals) engage in a task or sequence o f tasks with the goals o f organizational

improvement and individual development.” -French & Bell

“OD intervention is a sequence o f activities action and events intended to help organisation

improve its performance and effectiveness. -Cummings & Worley

OD interventions are the building blocks which are the planned activities designed to improve

the organization’s functioning through the participation of the organizational members.

EVOLUTION OF OD INTERVENTION:

The process o f evolution o f OD intervention was landmarked by the invention of Kurt

Lewin and his theory of planned change. This theory stated that if change is managed with

planned efforts it can be successful. So for the planned change efforts the various behavioral

scientists proposed the OD interventions.

OD Interventions Examples

Microsoft relied on OD interventions aimed at behavioural changes and operational changes.

Cisco initiated change through substantial structural interventions, statistical evaluation

interventions and process interventions. It also focuses on CSR initiatives.

Dell focused on six sigma as an OD intervention for zero defects.

Hyundai and Toyota focus on cultural interventions and quality management systems.

https://www.geektonight.com/14-od-interventions-type-meaning-process-importance-examples/#what-is-od-interventions

https://www.microsoft.com/en-in

https://www.cisco.com/c/en_in/index.html

https://www.dell.com/en-in

https://www.hyundai.com/worldwide/en

https://global.toyota/en/


90

Wipro adopted for internal organizational restructuring to meet customer specific needs.

ONGC relies on succession planning, employee participation, training, organizational

remodeling and climate surveys as OD interventions.

Infosys has a broad base of OD interventions like Leadership development programme,

personal development initiatives, cross functional assignments, 360-degree feedback ,

psychometric testing (MBTI) for individual personality assessment.

CHARACTERISTICS OR FEATURES OF OD INTERVENTIONS:

1. OD interventions are planned activities

2. OD interventions refer to implementation of entire OD program systematically.

3. OD interventions are decided mutually by client and a consultant.

4. Selection of appropriate OD intervention denotes careful diagnosis of current system of an

organization.

5. Application of OD interventions require participation and involvement of a client system.

6. OD interventions focus on social and task performance enhancement.

7. OD interventions differ From organization to organization based on requirement.

STRUCTURAL INTERVENTION

MEANING:

Structured interventions also called as Techno structural Intervention. It aimed at improving

organizational effectiveness through changes in the tasks, structural, technological and goal

processes in the organizations.

• It Focus on job design, division of labor and hierarchy, arrangements of equipment and people

etc.

https://www.wipro.com/en-IN/

https://www.ongcindia.com/

https://www.infosys.com/


91

TYPES OF STRUCTURAL INTERVENTIONS

1. Socio Technical Systems (STS)

2. Self managed Teams

3. Work Redesign

4. Management by Objectives (MBO)

5. Quality Circles

6.Total Quality Management (TQM)

1. SOCIO TECHNICAL SYSTEMS:

Sociotechnical systems (STS) in organizational development is an approach to complex

organizational work design that recognizes the interaction, between people and technology in

workplaces. The term also refers to the interaction between society's complex infrastructures and

human behaviour.

It is based on joint optimization of the social and technological systems of organization. The

boundary between the organization & its environment should be managed to allow effective

exchanges but protection from external disruptions.

• The implementation of STS should be highly participative.

2. SELF MANAGED TEAMS/ AUTONOMOUS WORK TEAMS

• Alternative to traditional assembly line methods. Rather than having a large number of

employees each do a small operation to assemble a product, the employees are organized into

small teams, each of which is responsible for assembling an entire product. These teams are self-

managed, and are independent of one another.

• Providing teams with a grouping of tasks that comprises a major unit of the total work to be

performed.


92

3. WORK REDESIGN

• Job design (also referred to as work design or task design) is a core function of human

resource management and it is related to the specification of contents, methods and relationship

of jobs in order to satisfy technological and organizational requirements as well as the social and

personal requirements of the job holder.

• Its principles are geared towards how the nature of a person's job affects their attitudes and

behavior at work, particularly relating to characteristics such as skill variety and autonomy.

The aim of a job design is to improve job satisfaction, to improve through-put, to improve

quality and to reduce employee problems (e.g., grievances, absenteeism).

• Richard Hackman & Greg Oldham have provided an OD approach to work design based on

theoretical model of what job characteristics lead to psychological states that produce high

internal work motivation.

It is based on five job characteristics- Skill variety, task identity, task significance, autonomy

and feedback from the job.

4. MBO

Peter Drucker, known as father of MBO technique, coined this term in 1954. Management

By Objectives (MBO) is the process of setting achievable goals for the managers and employees

at all the levels to be accomplished within a stipulated period. It streamlines the plan of action of

the workforce and establishes their roles and responsibilities.

According to George S. Ordure, “The system of management by objectives can be described as

a process whereby the superior and subordinate managers of an organization jointly identify its

common goals, define each individual’s major areas of responsibility in terms of results expected

of him, and use these measures as guides for operating the unit and assessing the contribution of

each of its members.”.

The actual performance of the individual is measured against his goals.The subordinate and

supervisor jointly developed specific goals and targets. These goals must be specific and

measurable. The subordinate proposes a set of goals for the upcoming time period.


93

CHARACTERISTICS OF MBO

Resource Optimization: MBO ensures the proper utilization of the available resource (i.e.,

human resources) eliminating the wastage of these resources in terms of time and efforts.

Goal Orientation: The initial step in MBO is the goal formation, and all the efforts are

directed towards the accomplishment of these set objectives.

Multiple Accountability: In MBO, goals are formed for the employees, and therefore,

everyone has their course of action for which they are individually accountable.

Universally Applicable: The concept of MBO can be applied to almost all the organizations,

whether business entities or non-profit organizations.

Systems Approach: It is applied to the whole system and thus integrates the efforts of the

individual, the organization and its environments in a single direction.

Simple and Comprehensive: Since MBO is a non-technical process, it can be easily

understood by all types of managers and employees.


94

Operational: It is practically applicable to the day to day business operations, and the

performance can be evaluated periodically by comparing the actual result to the desired

outcome.

Employee Management Participation: The top management does not just set the goals in

MBO but involves the active participation of the employees and the managers too.

Key Result Areas (KRA): The priority zones in the organization which require special

attention and are considered to be crucial for the growth and development of the business are

termed as KRA. Thus, MBO focuses on this KRA for enhancing the overall performance.

ADVANTAGES TO THE ORGANIZATION

MBO is a strategical approach adopted to streamline the business activities and direct the

individual and group efforts towards the attainment of the organizational goals.

Following are some of the other benefits of MBO to the business entities:

Better Planning: When the organization knows what it wants to achieve, i.e., its goals, it

becomes quite easy to plan in that direction.

Efficient Management: MBO increases the efficiency of the organization to achieve its

goals or objectives within a pre-determined time frame.

Clear Organizational Roles: MBO provides a goal, target and objective for each employee.

It also defines their individual and group roles clearly, to avoid any confusion or doubt.

Increases Level of Commitment: When the employees have a clear goal or target, with a

well-defined course of action, their level of commitment to give the desired results

enhances.

Facilitates Control: It becomes easy for the management to review and control the activities

of the employees because of MBO.


95

ADVANTAGES TO SUPERIORS

Superiors control the functioning of the subordinates and monitor their performance. There are

many benefits of MBO to the superiors; some of these are explained below:

Performance Evaluation: MBO establishes a framework for every employee, thus

providing a basis for the evaluation of individual performance.

Better Guidance and Direction: When the subordinates know what they have to do, it

becomes easy for the superiors to guide and mentor them in the same direction.

Accelerates Motivation of Subordinates: Since MBO increases the level of commitment

and enthusiasm of the employees towards their work, the superiors do not need to put in

extra efforts on subordinates’ motivation.

Coordinating Individual Efforts to Group Efforts: MBO emphasizes on achieving the

organizational goals which will ultimately lead to the accomplishment of the individual

goals as well. Thus, the superior can also direct the personal objectives and efforts of all

the employees, towards the attainment of the organizational objective

ADVANTAGES TO SUBORDINATES

The subordinates are responsible for implementing MBO in their work stream. Following are the

multiple benefits of MBO to the employees:

Simplifies Goal Achievement: The subordinates are assigned with individual roles,

responsibilities and tasks in the direction of achieving organizational goals which simplify

their work.

Increases Job Satisfaction: When the employees realize the level of efforts made by the

management and the superiors to simplify their work, they feel valued and satisfied with

their job.

Initiates Self-Direction and Self-Control: With the help of the well-defined workstream,

roles, goals and responsibilities, the subordinates do not need to ask everything from the

superiors and can monitor their activities by themselves.


96

Encourages Innovative Thinking and Ideas: MBO promotes two-way communication in

the organization. Here, the subordinates are also open up to speak out their ideas, thoughts

and suggestions; and the management values their innovation and creativity.

Establishes Cordial Relations with Superiors: When the subordinates are free to

communicate with the superiors in a highly motivated and positive work environment, a

cordial relationship is formed among the two.

Motivates to Perform Better: As we already know that MBO acts as a motivator for the

subordinates by setting targets for them, they tend to perform better than before.

LIMITATIONS OF MBO

Despite its numerous advantages, MBO has some shortcomings too, which may sometimes lead

to poor results and a downturn in performance.

1. Lack of Proper Objective: Due to the changing environment and competitiveness, the

organizational objective seems to be vague at times.

2. Issues in Goal Setting: Many times, companies set unrealistic goals which are too high to be

attainment, thus hindering the MBO process.

3. Co-ordination Problem: Eventually, everyone knows their work and are engaged in

completing the individual task without interacting with each other. Thus, there may arise a

coordination issue in business operations.

4. Time Consuming: MBO takes a lot of time, sometimes years to give the desired results.

5. Reward-Punishment Approach: It functions on the concept that reward the performer and

punish the no-performer; this approach brings in negativity and resistance in the employees.

6. Develops Organizational Problems: Sometimes superiors become lenient and carefree about

the operations which may lead to substantial organizational problems on non-compliance of the

assigned tasks.


97

7. Sometimes Lack Appreciation: It is said that in MBO, appreciation and appraisals are based

on individual’s performance. But in reality, in some organizations, promotions are based on

favoritism.

5. QUALITY CIRCLES:

Quality circle is a small group of employees in the same work area or doing similar type of

work who voluntarily meets regularly for about an hour every week to identify, analyse and

resolve work related problems.

It consists of 7-10 employees from a unit who meet together regularly to analyze and make

proposals about product quality.

It is a form of group problem solving and goal setting with a primary focus on maintaining and

enhancing product quality.

Quality Circles Leaders are encouraged to create a high degree of participation within the

group.

FEATURES OF QUALITY CIRCLES ARE AS UNDER

1. People Building Philosophy – A quality circle is a homogeneous group. The number of

employees in a quality circle is between seven to ten and they generally come from a particular

area. It consists of small group of persons who normally work at the same place and perform

similar work.

2. Voluntary Group – No coercion or pressure is brought on any member to join or not to join.

Nor can any member be barred from joining quality circles. Quality circles are voluntary

associations of persons having common cause.

3. Participative Program – Quality circles represent collective effort. Every one working in the

organisation must get a chance to say what is in his mind. Everyone should have interest and

value for the projects chosen for quality circles.

5. To Improve the Performance – Collective and participative efforts must result in the

improvement of quality, productivity and performance. Cost and wastage must be reduced as a


98

result of quality circles. The whole organisation must gain both quantitatively as well as

qualitatively.

6. TQM (TOTAL QUALITY MANAGEMENT)

Total Quality Management is a combination of a number of organization improvement

techniques and approaches including the use of quality circles, statistical quality control and

extensive use of employee participation.

• A core definition of total quality management (TQM) describes a management approach to

long–term success through customer satisfaction. In a TQM effort, all members of an

organization participate in improving processes, products, services, and the culture in which they

work.

PRINCIPLES OF TOTAL QUALITY MANAGEMENT

1. Commitment from the management: (PDCA)

Plan (drive, direct)

Do (deploy, support, and participate)

Check (review)

Act (recognize, communicate, revise)

2. Employee Empowerment

Training

Excellence team

Measurement and recognition

Suggestion scheme

3. Continuous Improvement

Systematic measurement

Excellence teams


99

Cross-functional process management

Attain, maintain, improve standards

4. Customer Focus

Partnership with Suppliers

Service relationship with internal customers

Customer-driven standards

Never compromise quality

5. Process Oriented

Thinking about the process

Handling of the process

Processes which are result oriented

6. Decision Making Based on Facts Only and Not on Opinions

Integrated, strategic and systematic approach to ensure the entire organisation is aligned

Communication must be open and at all levels of the organisation.

TRAINING EXPERIENCE

1. SENSITIVITY TRAINING

The purpose of sensitivity training sessions or T-groups (T for training) is to change the

behaviour of people through unstructured group interaction. Members (ten to fifteen

individuals) are brought together in a free and open environment, away from work places, in

which participants discuss themselves freely, aided by a facilitator. No formal agenda is

provided.

The objectives of the T-groups are

To provide the participants with increased awareness of their own behavior.

How others perceive the, greater sensitivity to the behaviour of others

Increased understanding of group processes.

http://www.geektonight.com/14-od-interventions-type-meaning-process-importance-examples/#sensitivity-training


100

Sensitivity training helps employees to be more sensitive and accepting of the existing diversity

in the workplace. It enhances understanding between members of the organization and enables

building good interpersonal relationships with other team members.

Sensitivity training educates members about constructive behavior which will benefit everybody

working in the organization through developing acceptable and correct behavioral and emotional

actions.

Benefits of T-Group training are:

(i) The participants learn more about themselves, specially their own weaknesses and emotions.

(ii) It develops insights into how the participants react to others and how others react to them.

(iii) It helps to understand group processes, inter-member interactions, inter-personal relations

and how to manage people through means other than power.

(iv) It helps to assess one’s values and goals as a result of analysis of direct experiences.

IMPORTANCE OF SENSITIVITY TRAINING

It creates a better interpersonal relationship between a group

Diversity leads to a better understanding of the sensitivity training meetings

Helps individuals to get an insight into others so that they could observe, learn and rectify

their behavior

Educates members of the sensitivity group about constructive and correct emotional

actions and behavioral pattern

Sensitivity training encourages the concept of interaction and sharing between individuals

Improvement in the ability to analyze and rectify own behavior

Increased awareness of own feelings, actions, and its impact on others. He becomes more

sensitive to the feelings of others and tries to change his behavior accordingly so that he

does not cause any harm to the well-being of others

A gradual change in attitude and thinking

https://www.marketing91.com/vals-values-attitude-lifestyle/


101

In several cases, an individual joins a sensitivity training group following some negative

experience in his life. This method helps to overcome the negative impacts and once again

walk towards a positive and happy environment

EXAMPLES OF SENSITIVITY TRAINING

David is in the habit of cracking jokes at everyone’s expense. He fails to realize that sometimes

he is crossing the line and hurting others, although unintentionally.

One day he did so with his superior who instead of reprimanding him for it asked him to attend

the sensitivity training meeting on a compulsory basis for at least three months.

As it was a direct order, David had to attend those meetings on a regular basis and maintain a

diary to evaluate them. After three months, he was surprised to see a positive change in himself

and had to accept that the sensitivity training meetings had been a good influence on him.

THE DISADVANTAGES OF SENSITIVITY TRAINING

1. As sensitivity training is an informal activity, there is no superior and subordinate

relationship. Sometimes the informal talks can harm the relationship between both of

them,

2. It can tamper relationship between employees also.

3. Sometimes people are unable to give their true opinion as they are too aware of others and

afraid of their reaction

4. Sensitivity training is based on assumptions and not on facts

5. Although sensitivity training is referred to as having a psychological impact, the meetings

are unable to find a psychological reason for the behavior.

6. Critics often have slammed sensitivity training as a method for brainwashing.


102

2. BEHAVIOURAL MODELING

MEANING:

Behavior Modeling, a component of Social Learning Theory, is the act of guiding the

employees how to do something by showing them the standard modeled behavior. This process

is of the premise that people tend to inevitably learn things they see in a hands-on way.

Behavior modeling training is one of the most widely used, well researched and highly regarded

psychological based training interventions

Financial Institutions often use behavior modeling to find out the percentage or the number of

users who are likely to avail their services.

For example, a credit card company may examine the type of places where a credit card is

normally used at and the amount of purchases to find out future behavior. Behavior modeling can

also be used by retailers to estimate customer purchases.

For example, a retailer may examine the types of products that a customer purchases, both in-

store and online, and the find out the likelihood that the customer will purchase a new product

based on his previous records.

Behavior modeling involves

(1) Showing trainees the right or model way of doing something.

(2) Letting trainees practice that way, and then

(3) Giving feedback on the trainees’ performance.

Behavior modeling training is one of the most widely used, well researched and highly

regarded psychological based training interventions.


103

THE BASICS PROCEDURE IS AS FOLLOWS:

1. Modeling:

First, trainees watch live or video examples that show models behaving effectively in a problem

situation. The video might show a supervisor effectively disciplining a subordinate, if teaching

how to discipline is the aim of the training program.

2. Role playing:

Next, the trainees are given roles to play in a simulated situation; here they practice and rehearse

the effective demonstrated by the models.

3. Social reinforcements:

The trainer provides reinforcement in the forms of praise and constructive feedback based on

how the trainee performs in the role playing situation

4. Transfer of training:

Finally, trainees are encouraged to apply their new skills when they are back on their jobs.

ADVANTAGES

1. Cost of behavior modeling is low as compared to other training methods.

2. It focuses on real behavior rather than theories.

3. Positive behavior modeling can have positive impact on the workplace and improve individual

success and reach organizational desired results.


104

4. It helps employees to engage in positive manner in any problem situation.

DISADVANTAGES

1. Although behavior modeling has been applied in many organizations successfully, there are

still weaknesses as it lacks adequate theory.

2. Lack of incorrect behavior examples which often lead to imperfect understanding.

3. CARRER ANCHORS

INTRODUCTION AND MEANING:

The concept of the Career Anchors was introduced by Edgar Schein.

The Career Anchor depicts one’s highest priority needs and the factors of work lives one may

not be willing to give up. Many people are not really clear about their need and competencies

and make an inappropriate career choice, that lead to dissatisfaction and frustration at work.

Knowing their Career Anchor properly, people develop sufficient insight to make intelligent and

appropriate career choices

IT INCLUDES:

1. Talents, skills and abilities - the things that we believe we are good at, and not so good at.

2. Motives and needs - what is important to us and take the form of goals, e.g. money, status,

challenge, autonomy.

3. Attitudes and values - the kind of organization that we feel comfortable with, one that

matches our own values and beliefs.


105

EIGHT CAREER ANCHORS

1. Technical/Functional Competence (TF):

The persons anchored in technical or functional competence are quite knowledgeable. They are

primarily motivated to produce highly effective work in some particular field of specialization.

Persons with such competencies prefer to take technically satisfying job such as engineering,

systems analysts or it could be different functional areas of management like finance, production

and marketing. Primarily, these types of people are motivated by the work content. They tend to

identify and establish themselves with their expertise very strongly. The ability to succeed and

get recognized in their own areas of specialty determines their self concept. People with this

anchor prefer to be challenged and use their skill to meet the challenges by doing the job

properly, better than the others.

2. Managerial Competence (GM):

The advancement up in the corporate ladder to take higher levels of responsibility is the key

motivation for people anchored in managerial competence. Unlike technical/functional people,

fundamental characteristics of these folks are, they prefer to rise to the top, want to be manager.

Managerial competence anchored people need to excel in the skills in three basic areas of

management i.e. analytical, interpersonal, and emotional.

3. Autonomy/Independence (AU):

People who are anchored by this competence have a primary and overriding need to work with

their own rules and procedure. They like to work under their own pace, follow their own

format, take their own time, and remain independent of others to the greatest extent

possible. Usually, they tend to avoid standards and are more comfortable to work alone. The

autonomy-anchored person lacks in terms of loyalty and obligation to the employer organization.

They would prefer to refuse promotion or transfer, if their independence is given up. They strive

to be free, independent, and self-reliant. For which, these type of autonomous people seek to

attain high level of education.


106

Fixed working hours, lack of variety of work, defined work rule etc, prevent them from

becoming functionally autonomous and independent for which they leave the job t and start their

own consultancy and freelancing.

4. Security/Stability (SE):

Persons with a primary need of security and stability seek and prefer to choose secure and stable

employment over challenging and riskier employment. Greater stability and continuity is the

primary determinant factor for these types of people to lead their lives. They tend to avoid risks

and uncertainty and are generally are ‘lifers’ in their jobs. This career anchored people prefer to

work in Government and public sector undertakings.

5. Entrepreneurial Creativity (EC):

The individual driven by entrepreneurial anchor has a strong inner urge to create a new

business of his own. He has all the motivation and courage to run the risk by overcoming all the

obstacles. He is driven by a strong desire to get personal gain and recognition for his own

accomplishment. Being anchored for creativity, such type of people prefers to take

challenging work assignments. Through innovative product and process design, they create

scope for their own identification.

Entrepreneurial need people differ from autonomy driven people. The entrepreneurship is firmly

rooted and dedicated for ownership. Creating a marketable and profitable product or service

regardless of the technology and irrespective of intellectual discipline is the objective of

entrepreneurial activity. Basically, it aims at making large amount of money. These types of

individuals seldom work for others for long periods of time. They are much eager to be fully

active to work for an enterprise of their own. They put heavy weight to ownership and for them

success is characterized by wealth.


107

6. Service/Dedication to a Cause (SV):

Service anchored people are principally motivated to dedicate their work and even if sometimes

lives in the service of others. They may dedicate their service by working in a position, in which

they get opportunities to serve others directly. The counselors, physicians, therapists, nurses

or other helping or supportive occupations and professions belong to this category. Service

may also include providing comfort, entertainment, athletic training, extending personal or

business support activities, personal or administrative assistant or any other such type of support

services that represents a contribution to others.

7. Pure Challenge (CH):

People driven by challenge often seek difficult problems as they can tackle it. Challenges matter

at the highest possible level for these type of people. They define success in terms of winning

the war or getting success over the game, bidding the contract or the sale. Overcoming

obstacles, being the best, ranking the first, beating the competition, reaching at the highest,

surpassing previous goals and such is the mantra they follow in their life.

Experiencing challenge is primary concern for these type of people than that of area of work or

specific job. Most often, they seek variety in their careers as well as in their lives. In the absence

or lack of challenge make them highly dissatisfied. They tend to change their jobs with getting

bored in the current one and add variety in their career.

8. Lifestyle (LS):

Work is not the primary vehicle of self-expression for life-style anchored people. They are

basically interested in ensuring a life balanced with various interests. They consider family,

friends, hobbies, recreational and leisure activities as well as study and learning and other

such work related subjects much significant in their career and life. They tend to develop

their self-concepts in consideration of their total life style. The way they define and perceive

their life style is the major determinant factor in choosing their careers. They prefer to take jobs,

careers, occupations and organizations, that allow them to put all the major sectors of their lives

together into an integrated whole. Usually, career decisions do not take over their lives.


108

TEAM INTERVENTIONS

TEAM BUILDING INTERVENTION MEANING:

Team building is a process of diagnosing and improving the effectiveness of a work group with

particular attention to work procedures and inter-personal relationship smith in it, especially the

role of the leader in relation to other group members.

Both the group’s task procedures and its human interactions are the subjects of study in team

building.

The basic assumption of team building is that increasing the effectiveness of

teams will improve the organization’s overall effectiveness.

TEAM BUILDING PROCESS

Team building is not a one-time act. It is a step by step process which aims at bringing desirable

changes in the organization. Teams are usually formed for a particular task or project and

are mostly for the short term.

The various steps involved in team building are as follows:

https://www.geektonight.com/14-od-interventions-type-meaning-process-importance-examples/#what-is-od-interventions


109

1. Identify the Need for Team Building

The manager has first to analyze the requirement of a team for completing a particular task. It

should find out the purpose of the work to be performed, required skills for the job and its

complexity before forming a team.

2. Define Objectives and Required Set of Skills

Next comes the chalking down of the organizational objectives and the skills needed to fulfill it.

3. Consider Team Roles

The manager considers the various aspects, i.e. the interactions among the individuals, their roles

and responsibilities, strengths and weaknesses, composition and suitability of the possible team

members.

4. Determine a Team Building Strategy

Now, the manager has to understand the operational framework well to ensure an effective team

building. He must himself be assured of the objectives, roles, responsibilities, duration,

availability of resources, training, the flow of information, feedback and building trust in the

team.

5. Develop a Team of Individuals

At this stage, the individuals are collected to form a team together. Each member is made

familiar with his roles and responsibilities within the team.

6. Establish and Communicate the Rules

The rules regarding the reporting of team members, meeting schedules, and decision making

within the team are discussed. The individuals are encouraged to ask questions and give their

views to develop open and healthy communication in the team.


110

7. Identify Individual’s Strengths

Various team-building exercises are conducted to bring out the strengths of the individuals. It

also helps in familiarizing the team members with each other’s strengths and weakness.

8. Be a Part of the Team

At this point, the manager needs to get involved with the team as a member and not as a boss.

Making the individuals realize their importance in the team and treating each member equally is

necessary. The team members should see their manager as their team leader, mentor and role

model.

9. Monitor Performance

Next step is checking the productivity and performance of the team as a whole. It involves

finding out loopholes and the reasons for it. This step is necessary to improve the team’s

performance and productivity in the long run.

10. Schedule Meetings

One of the most crucial steps is to hold purposeful meetings from time to time to discuss team

performance, task-related problems and discuss the future course of action.

11. Dissolve the Team

Lastly, the manager needs to evaluate the results and reward the individuals on their contribution

and achievement. Finally, the team is dispersed on the fulfillment of the objective for which it

was formed.


111

ADVANTAGES OF TEAM BUILDING

Team building has radically evolved as a technique to develop and manage effective teams in the

workplace.

The aim to achieve long-term organizational objectives developed the need for carrying out team

building activities frequently.

Let us now discuss the various benefits of team building to an organization:

1. Identify Strengths and Weaknesses: Through team-building exercises, the strengths and

weaknesses of each member can be identified. In day to day routine work, such an analysis

cannot be done. These competencies can be used by the managers to form effective teams.

2. Direct Towards Vision and Mission: Team building activities define the role and importance

of the team for the organization to reach its vision. It makes the individuals understand the

organization’s goals, objectives, mission and vision very clearly and motivates them to

contribute towards it.


112

3. Develops Communication and Collaboration: Team building activities enhance the

interpersonal relations of the team members. It makes individuals comfortable and familiar with

one another. Collaboration develops trust and understanding among the team members.

4. Establishes Roles and Responsibilities: It defines and clarifies the role of each member of a

team. Moreover, the members are given individual responsibilities, along with the motivation of

performing as a team.

5. Initiates Creative Thinking and Problem Solving: In a team, individuals are motivated to

give their views, opinions and solution to a particular problem. It leads to brainstorming and

exploring their creative side.

6. Builds Trust and Morale: By conducting team building activities, the organization makes the

employees feel valued. It encourages them to develop their skills and build strong interpersonal

relations, ultimately boosting the morale and trust of the team members.

7. Introduces and Manages Change: The technique of team building makes it easier for the

managers to incorporate an organizational change by making the individuals familiar with the

change and its necessity. It also helps in managing such change and its impact over the working

and team’s performance.

8. Facilitates Delegation: The managers find it more suitable to delegate the work to a team

rather than an individual. Therefore, team building helps the managers to efficiently and

adequately delegate the task to the team.

9. Better Productivity: If the team is wisely formed and all the team members work

collaboratively to achieve the objectives, the productivity of all the individuals improve. Thus,

increasing the productivity of the team and the organization.

DISADVANTAGES OF TEAM BUILDING

Team building is not an easy task. A high-performance team can fulfill the organizational

objectives. However, an inefficient team can lead to wastage of time and resources of the

organization.


113

Therefore, we can say that there are multiple adverse effects of team building too, which are as

follows:

Develops Conflict: Sometimes, the team lacks coordination and understanding among its

members. This leads to conflict and clashes within the team and hence decreases the

efficiency and productivity. A lot of time is wasted in such conflict management.

Unproductive or Free ride Team Members: At times, some of the team members do not

contribute much to team performance. Such individuals are considered to be free riding

team members. They prove to be inefficient and less productive for the team.

May Lead to Non-Cooperation: Every individual is different from one another. The team

members sometimes lack cooperation and unity. This non-cooperation among the team

members leads to wastage of efforts and hinders the performance of the team as a whole.

Difficult to Evaluate Individual Performance: Whatever the result or the outcome the

organization gets by team building is the team’s achievement or failure. Usually, the

organization overlooks the contribution of each member individually while rewarding the

efforts of the whole team.


114

Involves Cost: Team building activities require time and money. Moreover, a lot of time,

cost and resources are consumed in ensuring coordination, balance, feedback, decision

making and conflict management within the teams formed.

Accountability and Credibility Issues: In case of failure, it becomes difficult to find out

the reason. The team members sometimes do take up the accountability of their work,

holding the other members to be responsible for the unfavorable outcome.

In case of success, the team members get busy in taking up the credit themselves, ignoring

the efforts of the whole team together.

EXAMPLE

Let us take the case of Google;

Google once conducted a study on; How to build a perfect team? To find out the

psychology behind effective team building.

On conducting various experiments, it was found that the concept of putting those people

in a team who are comfortable in working with each other does affect the performance

much. Neither creating a mix of extroverts and introverts was very helpful.

It was noticed that people with like minds give a fair chance to one another for putting

forward their views and equally listen to the ideas of one another and tend to form a high-

performance team together.


115

INTER-GROUP INTERVENTION

MEANING:

Inter-group interventions are integrated into Organizational Development programs to

facilitate cooperation and efficiency between different groups within an organization.

Inter Group Intervention intends to increase communications and interactions between work

related groups to reduce the amount of dysfunctional competition designed to improve the

effectiveness of interdependent groups, i.e. those that must cooperate to produce a common

output. These focus on joint activities and the output of the groups as a single system rather than

2 subsystems

THIRD-PARTY PEACE MAKING INTERVENTION

MEANING:

The term third party is used to describe a person or group of people who intervene in a conflict

situation to help those involved resolve their dispute. There are many roles that a third party

might have in a conflict situation.


116

Third-Party Intervention is an involvement of person/team into on-going conflict of two

parties like management and union to resolve conflict. Generally, third party interventions help

parties analyse consequence of their action and manages/ resolve conflict in mutually beneficial

way. There are various levels of third party interventions mandated by laws in employer and

labour relations in collective bargaining framework.

TYPES OF THIRD-PARTY INTERVENTION/ ROLE

Third party intervention is not uncommon, when a conflict that must be resolved somehow

happens and all else fails then conflict resolution third party interventions are needed, below are

descriptions of mediation and arbitration as the two main third party intervention processes.

1. THE FACILITATOR

This role is used to help organize and arrange meetings between the disputing parties, set

agendas, guide productive discussions, and keep a record of what is being discussed.

2. THE CONSULTANT

This role is used to aid the disputing parties in analyzing and understanding the reasons for the

conflict so that they can plan a resolution strategy.

3. MEDIATION

Mediation is the use of a neutral third-party to help the disputing parties resolve the dispute on

their own. A mediator will not resolve the dispute for you, but she will help facilitate a

discussion between you and the person with whom you are having a problem, in hopes that you

and the other person can find a solution together. The mediator is the most active role that a

third party can hold. He or she can facilitate discussions in a manner that is designed to end the

dispute in a way that is pleasing to all involved parties. What makes the mediator especially

effective is his or her independent and impartial stand on the conflict. Most mediators are

brought in from outside the organization - or at least from outside of the functional area in which

the conflicting parties work


117

4. ARBITRATION

When a mediator is unable to persuade the disputants to reach a solution on their own, arbitration

may become necessary. Arbitration is a more aggressive third-party intervention wherein

an arbitrator or panel of arbitrators listen to all sides of the issue and make a firm decision on

how to end the conflict. Typically, a transcript is kept so that the arbitrator can carefully review

all evidence and testimony of the disputants before determining who is right or wrong and how

the conflict must be settled.

The decision on how the conflict is to be resolved is binding and cannot be changed. This is

why the arbitrator is considered to be the most powerful type of third-party intermediary.

Arbitration works well for parties who do not mind relinquishing control over conflict resolution

and those who simply want to settle the dispute.


118

ISSUE IN CONSULTANT-CLIENT RELATIONS

ISSUES RELATED TO THE CONSULTANT-CLIENT RELATIONSHIP: – We need to

consider certain situation while taking the service of the external consultant which requires proper

attention. These situations lead to problem or conflicts which require to be resolved, thus

issues in consultant-client relationships are the focal areas that need consideration. These areas

should be managed properly to avoid adverse effects.

Inter-related issues in this relationship are: –

(1) Entry and contracting

(2) Defining the client system

(3) Mutual trust

(4) Defining the consultant role

(5) Diagnosis and appropriate intervention

(6) Determining the depth of intervention

(7) On being absorbed by the culture

(8) Consultant as a model

(9) Consultant team as a microcosm

(10) Action research

(11) Client’s dependency and terminating the relationship

(12) Ethics

(13) Implications of OD for the client

1. ENTRY AND CONTRACTING,

The organization could be experiencing particular problems, such as poor product quality, high

rates of absenteeism, or dysfunctional conflicts among departments. Conversely, the problems

might appear more diffuse and consist simply of feelings that the organization should be “more

innovative,” “more competitive,” or “more effective.


119

”Entering and contracting are the initial steps in the OD process. They involve defining in a

preliminary manner the organization’s problems or opportunities for development and

establishing a collaborative relationship between the OD practitioner and members of the client

system about how to work on those issues. Entering and contracting set the initial parameters for

carrying out the subsequent phases of OD: diagnosing the organization, planning and

implementing changes, and evaluating and institutionalizing them. They help to define what

issues will be addressed by those activi-ties, who will carry them out, and how they will be

accomplished.

Entering and contracting can vary in complex-ity and formality depending on the situation. In

those cases where the manager of a work group or department serves as his or her own OD

practitioner, entering and contracting typi-cally involve the manager and group members

meeting to discuss what issues to work on and how they will jointly meet the goals they set.

Here, entering and contracting are relatively simple and informal. They involve all relevant

members directly in the process—with a mini-mum of formal procedures

In situations where managers and administrators are considering the use of professional OD

practitioners, either from inside or from outside the organization, entering and contracting

tend to be more complex and formal.

2. CLIENT SYSTEM: –

The question of who the client quickly becomes an important issue in consultant-client

relationships. A viable model is one in which, in the initial contact, a single manager is a client,

but as trust and confidence develop between the key client and the consultant, both begin to view

the manager and his/her subordinate team as the client, and then the manager’s total organization

as the client.


120

3. TRUST ISSUE IN CONSULTANT CLIENT RELATIONSHIP:

Trust Issue in Consultant Client Relationship A good deal of interaction between consultant and

client is implicitly related to developing a relationship of mutual trust Client’s Trust on the

consultant.

Key clients may be fearful that-

◦ Things will get out of hands with an outsider intervening in the system

◦ Organization will be overwhelmed with petty complaints

◦ People will be encouraged to criticize their superiors

Consultant’s trust of the client start with

◦ Understanding of clients motive

◦ Trust and resistance problem also centers on good-guy bad- guy syndrome

◦ Confidentiality must be maintained

4. CONSULTANTS ROLE:

Consultants are those people or group of the people who are specialized in their concerned

area (i.e., organization development, in this case). They may be internal or external to the

organization (external in most cases) offering professional services to the client system. They

are called consultants or OD practitioner because they apply their special competence within the

process, typically by engaging client-system to design and implement change program. They

establish a collaborative relationship of equality with the key client and organization members as

they together identify organizational problems and opportunities, based on which action is taken.

They play the role of facilitator and change agent.


121

Few definitions of consultants are mentioned below, which were given by different

scholars: –

Consultants are “those who provide general management advice within strategic,

organizational, or operational context, and who are institutionally organized in firms” (Canback,

1998).

A consultant is an advisory contracted for and provided to organizations to help in an objective

and independent manner, the client organization to identify management problems, analyse such

problems, and help, when requested, in the implementation of solutions (Greiner and Metzger,

1983).

5. ORGANIZATIONAL DIAGNOSIS

Organizational diagnosis is a creative method for getting to know an organization at all levels-

from the surface levels to the deepest hidden parts that aren’t visible to the eye. Performing

organizational diagnosis is not so far off from a doctor trying to diagnose their patients. Some

doctors diagnose differently by focusing on nutrition, food, and natural remedies, whereas others

diagnose by using chemical medications, or even by trying a remedy, seeing whether it has

positive effects, and then trying something new. This is very similar to what we have learned to

do in the business sense to organizations. Different diagnostic models can be used in different

situations depending on the wants, needs, and goals of our clients (patients).

(6) DETERMINING THE DEPTH OF INTERVENTION

Roger Harrison suggested two criteria for determining the depth of intervention and those are: –

First, intervention should be at the level not deeper than that is required to produce a solution to

current problems.

Second, intervention should be at a level not deeper than that at which resources and energy of

the client can be committed to problem-solving or to change.

Thus, as per these criteria consultant should proceed no deeper than the legitimation provided by

the client – system culture and its resources and he/she should stay at the level of consciously felt


122

needs so by keeping in mind the consultant capabilities, limitations, client – system’s resources,

constraints and the immediate necessity, the depth of intervention should be determined.

8. CONSULTANT MODEL:

Consultant Model Consultant acts as a role model for the client. The consultant should practice

what he/she preaches. The consultant may advocate open system but suppresses his or her own

feelings about what is happening in the client system. The consultant should give out clear

messages

9. MICROCOSM:

A community, place, or situation regarded as encapsulating (representing special feature) in

miniature the characteristics of something much larger. An example of a microcosm is a small

sect of the population which is surveyed in order to get an idea of the opinions of the general

population.

Microcosm group intervention derives from an inter-group theory which was developed by

Alderfer (who has applied it to communications and race-related problems).

Microcosm group consists of a small number of individuals who reflect the issues being

addressed and resolved. Microcosm group can consist consultant (or group of consultants) and

client-system.

Microcosm group work through “parallel group”, (A parallel design, also called a parallel

group study, compares two or more treatments. Participants are randomly assigned to either

group, treatments are administered, and then the results are compared). (due to which

unconscious changes takes place in individuals when two or more groups interact. This group

assisted by OD consultant can create program and process targeted at a specific issue, such as

(i) Addressing diversity issues

(ii) Carrying out the organizational diagnosis

(iii) Solve communication problem (e.g., improving the way meeting is conducted)

(iv) Integrate two cultures

(v) Smooth transition to the new structure


123

(vi) Address dysfunctional political processes

Application stages of microcosm groups: –

The process of using a microcosm group to address organization-wide issues involves the

following 5 steps: –

(a) Identifying an issue: – This step involves finding a system-wide issue to address. This can

be found out from organizational diagnosis or by idea generated by the workforce in an

organization.

(b) Convene the group: – Once an issue is identified, the microcosm group can be formed. The

most important convening principle is that group membership needs to reflect the appropriate

mix of stakeholders related to the issue. This draws attention to the issue and gives group status.

(c) Provide group training: – Once the group is formed, training is provided for the problem –

solving and decision – making. Team – building intervention may be applicable here.

(d) Address the issue: – This step involves solving the problem and implementing a solution.

Consultants may help the group diagnose, design, implement and evaluate changes. A key issue

is gaining commitment in the wider organization to implement the group’s solutions. Several

factors can facilitate such ownership, and those are: –

A communication plan should link group activities to the organization.

Group members need to be visible and accessible to management and labour. (This can ensure

that the appropriate support and resources are developed for the recommendations)

Problem – solving processes should include an appropriate level of participation by organization

members. (Different data collection methods can be used to gain member input and to produce

ownership of the problem and solutions)

(e) Dissolve the group: – After successful implementation of change, microcosm group can be

disbanded. This typically involves writing a final report or holding a final meeting.

10. ACTION RESEARCH MODEL

The Action Research Model (ARM) was introduced by Kurt Lewin in the late 1930’s. It is the

standard process used in organization change. Through Action Research, the OD Practitioner

begins to understand the system in which s/he is involved, and the client group begins to take


124

responsibility for the system in which they live. The OD Professional and the client work

together to realize the goals of the change process. The ARM process encourages collaboration

and cooperation among leaders and employees to improve their relationship and communication.

According to Lewin, change is best achieved when the researcher (OD Professional) and the

client (Senior Leaders) cooperate together to identify needs and implement solutions.

11. DEPENDENCY ISSUE AND TERMINATING THE RELATIONSHIP:

The termination of relationship is directly proportional to the dependency relationship between

client and consultant The more dependent the client is on the consultant, the more difficult it is to

terminate the relationship If the consultant is in the business of assisting client to internalize

skills and insights – then it is making client less dependent on it and in such case terminating the

relationship is not an issue Thus the consultant’s role as a facilitator creates less dependency and

more client growth

Consultant’s role as a part educator - this involves consultant’s intervention on an on-going

basis. It requires open communication with client about objective of interventions and about

sequence of planned event.

Relationship between client and consultant depends on : Consultant competence : the longer

the consultant are able to provide innovative and productive intervention, the more longer the

relationship will be Clients’ resourcefulness and capabilities in OD Organizational factors like:

Internal power struggle, Crisis, Top management support

12. ETHICS:

Serving the long-term well- being of our client system and stakeholders. Conducting ourselves

honestly, responsibly, and with appropriate openness. Establishing mutual agreement on a fair

contract.


125

13. IMPLICATIONS OF ORGANIZATIONAL DEVELOPMENT:

For Individuals – Most individuals believe in their personal growth. – Majority of the people

are desirous of making greater contributions to the organizations they are serving.

Implications of Organizational Development • For Groups a) One of the most important

factors in the organization is the ‘work group’ around whom the organization functions. b) More

people prefer to be part of the group because the group accepts them. c) Most people are capable

of making higher contributions to the group’s effectiveness.

Implications of Organizational Development • For Organization a) Create learning

organization culture. b)Adopt win-win strategy for sustained growth. c) Create cooperative

dynamics rather than competitive organizational dynamics in the organization.

ISSUES REDRESSAL:-

(1) Consultant team must set an example of an effective unit if the team is to enhance the

credibility.

(2) Practitioners need effectiveness that comes from continuous growth and renewal

processes.

(3) The quality of the interrelationships within the consulting team carries over directly into

the quality of their interventions.

RECOMMENDATIONS FOR BETTER CONSULTANT-CLIENT RELATIONS:–

(1) Both parties should keep transparency in dealings.

(2) The consultant should not be hesitant to tell the client that he/she has a difference of

opinion

(3) A consultant should try to complete all the activities in the decided timeframe.

(4) It would be better if the consultant follows the principle of under commit – over deliver.

(5) A consultant needs to diagnose the situation properly and collect data as much as possible

https://image.slidesharecdn.com/3-150706111832-lva1-app6892/95/implications-of-organizational-development-organizational-change-and-development-manu-melwin-joy-4-638.jpg?cb=1437097047


126

to avoid under-estimation of project complexity or scope.

(6) Both parties should maintain ethical standards like honesty, integrity, confidentiality, etc.

(7) A consultant should offer knowledge transfer in the form of mentoring and coaching.

(8) A consultant should not promise unrealistic outcomes.

(9) In the initial stages, a frequent meeting should be arranged, and both parties should

communicate effectively so as to enable the consultant to understand client’s requirement

properly.

DEPTH OF INTERVENTION: –

Roger Harrison suggested two criteria for determining the depth of intervention and those

are: –

First, intervention should be at the level not deeper than that is required to produce a solution to

current problems.

Second, intervention should be at a level not deeper than that at which resources and energy of

the client can be committed to problem-solving or to change.

Thus, as per these criteria consultant should proceed no deeper than the legitimating provided by

the client – system culture and its resources and he/she should stay at the level of consciously felt

needs so by keeping in mind the consultant capabilities, limitations, client – system’s resources,

constraints and the immediate necessity, the depth of intervention should be determined.


127

IMPORTANT QUESTIONS

UNIT-I

SHORT QUESTIONS:

WRITE A SHORT NOTE ON:

1. Organizational Change

2. Organizational Development

3. Systems theory

4. Participation/ Employees Involvement

5. Teams and Teamwork

6. Inter-Disciplinary Nature of OD.

7. Planned change

8. Assumptions and beliefs in OD

9. Characteristics of OD

10. Reactive and proactive Changes

11. What is unfreezing and freezing in planned change?

12. Empowerment

13. LINK FOR CASE STUDY:

https://www2.slideshare.net/nbalneg/general-motors-organizational-change-case-

study?qid=a671f1d4-c199-48dd-a6e9-d9df40f412ef&v=&b=&from_search=1

LONG QUESTIONS:

Q1. “Change is highly important to the success of an organization but many people have the

tendency overtly or covertly to resist it” Explain this statement.

Q2. Discuss the methods of overcoming resistance to organizational change?

Q3. Discuss the strategies for implementing organizational change.

Q4. Define Organizational change and development. Explain the inter-disciplinary nature of OD.


128

Q5. What do you mean by change? Explain the types of change.

Q6. What are the various forces responsible for change in an organization?

Q7. Why is participation considered such an effective technique for lessening resistance to

change?

Q8. Discuss the factors affecting Organizational change.

UNIT-II

SHORT QUESTIONS:



129

1. Action Research

2. OD intervention

3. Parallel Learning Structures

4. Consolidating Change

5. Ethics in OD

6. Power, Politics in OD

7. Types of resistance to change

8. Collaborative management

9. Succession planning

10. Coercive power

LONG QUESTIONS:

Q1. . What is Action Research? Explain action research process.

Q2. What are Parallel Learning Structures? Explain in detail.

Q3. Discuss the foundations of OD.

Q4. Discuss the Strategies and Skills for Communicating Change.

Q5. Explain in brief the organization development process.

Q6. Explain the interrelationship between action research and organization development.

Q7. List out the benefits of action research.

Q8. Discuss the importance of Power, Politics and Ethics in OD

UNIT-III

SHORT QUESTIONS:


1. OD intervention

2. Sensitivity training

3. MBO

4. Career anchors

5. Behavior Modeling

6. Third party peacemaking intervention


130

7. Team intervention

8. Intergroup intervention

9. Quality Circles

10. Total Quality Management (TQM)

11. Advantages of team building

12. Arbitration

13. Mediation

14. Facilitator

15. Consultant

LONG QUESTIONS:

Q1. What is OD Intervention? Explain the nature or characteristics of OD interventions. Discuss

any two types of Intervention and their significance to the organization.

Q2. What do you understand by team Interventions with example? Explain the various steps

involved in Team Interventions.

Q3. Briefly mention the objectives of OD. Describe how and when TGroup method can be used

as an OD Intervention, citing an example.

Q4. Explain the advantages and disadvantages of team intervention.

Q5. Define structural intervention and its types.

Q6. Write a short note on:

i) Process Consultation

ii) Self Managed teams

iii)Choosing the depth of OD Interventions

iv) Third Party intergroup Intervention

Q7. What is Sensitivity Training? State various advantages of Sensitivity training and also

mention its limitations.

Q8. Define Behavior Modeling. Explain the steps involved in it, in detail.


131

Q9. Define career anchors. Discuss the role of eight career anchors in OD.

Q10. Discuss the role of third party peacemaking intervention in OD.

UNIT-IV

SHORT QUESTIONS:


1. Entry and contacting

2. Client system

3. Contemporary Issues in OD (Any two)

4. The consultant as a model

5. OD- Now and Beyond.

6. Interventions

7. Consultant team as a microcosm

LONG QUESTIONS:

Q1. Discuss the various Issues in Consultant-Clint Relations

Q2. Define consultant-Client Relationship. Discuss in detail the recommendations for better

consultant-client relationship

Q3. Explain the process of using a microcosm group to address organization-wide issues.


132

REFERENCES:

https://slideplayer.com/slide/5216170/

http://www.zainbooks.com/books/management/organization-development_12_od-

practitioner-skills-and-activities.html

https://www.managementkits.com/blog/2019/12/3/the-future-of-organization-development

https://www.trainingcoursematerial.com/free-training-articles/conflict-resolution-

influencing-negotiation-skills/third-party-interventions-mediation-and-arbitration

http://egyankosh.ac.in/bitstream/123456789/21396/1/Unit-2.pdf

https://accountlearning.com/individual-organizational-factors-responsible-for-resistance-

to-change/

https://en.wikipedia.org/wiki/Organization_development

https://www.linkedin.com/pulse/organizational-development-od-interventions-satyendra-

seth/

https://www.slideshare.net/bhumikagarg3/structural-intervention-75065728

https://www.businessmanagementideas.com/management/quality-circles/quality-circles-q-

c-meaning-objectives-and-

benefits/6302#:~:text=Thus%20we%20can%20say%20that,reach%20solutions%20and%2

0implement%20them.

https://www.marketing91.com/sensitivity-training/

https://rapidbi.com/careeranchors/

https://www.studocu.com/en-us/document/university-of-oregon/organizational-development-and-

change-management/lecture-notes/chapter-04-entering-and-

https://slideplayer.com/slide/5216170/

http://www.zainbooks.com/books/management/organization-development_12_od-practitioner-skills-and-activities.html

http://www.zainbooks.com/books/management/organization-development_12_od-practitioner-skills-and-activities.html

https://www.managementkits.com/blog/2019/12/3/the-future-of-organization-development

https://www.trainingcoursematerial.com/free-training-articles/conflict-resolution-influencing-negotiation-skills/third-party-interventions-mediation-and-arbitration

https://www.trainingcoursematerial.com/free-training-articles/conflict-resolution-influencing-negotiation-skills/third-party-interventions-mediation-and-arbitration

http://egyankosh.ac.in/bitstream/123456789/21396/1/Unit-2.pdf

https://accountlearning.com/individual-organizational-factors-responsible-for-resistance-to-change/

https://accountlearning.com/individual-organizational-factors-responsible-for-resistance-to-change/

https://en.wikipedia.org/wiki/Organization_development

https://www.linkedin.com/pulse/organizational-development-od-interventions-satyendra-seth/

https://www.linkedin.com/pulse/organizational-development-od-interventions-satyendra-seth/

https://www.slideshare.net/bhumikagarg3/structural-intervention-75065728

https://www.businessmanagementideas.com/management/quality-circles/quality-circles-q-c-meaning-objectives-and-benefits/6302#:~:text=Thus%20we%20can%20say%20that,reach%20solutions%20and%20implement%20them




https://www.marketing91.com/sensitivity-training/

https://rapidbi.com/careeranchors/


133

contracting/4298643/view#:~:text=Entering%20and%20contracting%20are%20the,opportunities%20for

%20development%20and%20estab%2D

BBA- 5TH SEM Batch: 2019-21 ORGANIZATION CHANGE ...

Documents

Transcript of BBA- 5TH SEM Batch: 2019-21 ORGANIZATION CHANGE ...