Spring 2010(Jan-June)

Master of Business Administration-MBA Semester 3

MU0002 Management and Organization Development - 2 Credits
(Book ID: B1021)
Assignment Set- 1 (30 Marks)
Note: Each question carries 10 Marks. Answer all the questions.

Q.1 Write a detailed note on importance of management. [10]

Answer:
Importance of Management
According to Drucker, management is the dynamic lift-giving element in every organization. It is
the activating force that gets things done through people. Without management, an organization
is merely a collection of men, machines, money and material. In its absence, the resources of
production remain resources and never become production. The importance of management can
be understood from the following points.

(i) Optimum use of resources: Management ensures optimum utilization of resources by

attempting to avoid wastage of all kinds. It helps in putting the resources to the best advantage
within the limitations set by the organization and its environment. A right climate is created for
workers to put in their best and show superior performance.

(ii) Effective leadership and motivation: In the absence of management, the working of an
enterprise will become random and haphazard in nature. Employees feel a sense of security
when they find a body of individuals working day and night for the continued growth of an
organization. Management makes group effort more effective. It enables employees to move
cooperatively and achieve goals in a coordinated manner. Management creates teamwork and
motivates employees to work harder and better by providing necessary guidance, counseling and
effective leadership.

(iii) Establishers sound industrial relations: Management minimizes industrial disputes and
contributes to sound industrial relations in an undertaking. Industrial peace is an essential
requirement for increasing productivity. To this end, manager tries to strike a happy balance
between the demands of employees and organizational requirements. They initiate prompt
actions whenever workers express dissatisfaction over organizational rules, methods, procedures
and reward systems.
(iv) Achievement of goals: Management plays an important role in the achievement of
objectives of an organization. Objective can be achieved only when the human and non-human
resources are combined in a proper way. Management is goal-oriented. With a view to realize the
predetermined goals-managers plan carefully. Organize the resources properly; hire competent
people and provide necessary guidance. They try to put everything on the right tract. Thus
unnecessary deviations. Overlapping efforts and waste motions are avoided. In the final analysis,
all these help in realizing goals with maximum efficiency.

(v) Change and growth: Changes in technology, government policy, competition, etc., often
threaten the survival of a firm. Failure to take note of customers needs regarding full efficiently
has spelt doom for Ideal java in the two-wheeler market in India. An enterprise has to take note
of these changes and adapt itself quickly. Managers help an organization by anticipating these
changes (carefull planning, forecasting combined with efficient use of resources) and taking
appropriate steps. Successful managers are the ones who anticipate and adjust to changing
circumstances rather than being passively swept along or caught unprepared.

(vi) Improves standard of living : Management improves the standard of living of people by (a)
using scarce resources efficiently and turning out profits. (b) Ensuring the survival of the firm in
the face of continued changes. (c) Exploiting new ideas for the benefit of society as a whole and
(d) developing employee talents and capabilities while at work and prompting them to show peak
performance.

Management as a profession

By a professional manager, we generally mean a manager who undertakes management as a

career and is not interested in acquiring ownership share in the enterprise which he manages.

According to McFarland, a profession possesses the following characteristics:

i) A body of principles, techniques, skills, and specialized knowledge;
ii) Formalized methods of acquiring training and experience;
iii) The establishment of a representative organization with professiona-lizing as its goal.
iv) The formation of ethical codes for the guidance of conduct; and
v) The charging of fees based on the nature of services.

Management is a profession to the extent it fulfils the above conditions. It is a profession in the
sense that there is a systematized body of management, and it is distinct, identifiable discipline. It
has also developed a vast number of tools and techniques. But unlike medicine or law, a
management degree is not a pre-requisite to become a manager.
Management is also a profession in the sense that formalized methods of training is available to
those who desire to be managers. We have a number of institutes of management and university
departments of management which provide formal education in this field. Training facilities are
provided in most companies by their training divisions. A number of organizations such as the
Administrative Staff College of India, the Indian Institute of Management, Management
Development Institute, the All India Management Association, and the university departments of
management offer a variety of short-term management training programmes.
Management partially fulfils the third characteristic of profession. There are a number of
representative organizations of management practitioners almost in all countries such as the All
India Management Association in India, the American Management Association in U.S.A., etc.
However, none of them has the professionalizing of the management as its goal.
Management does not fulfill the last two requirements of a profession. There is no ethical code of
conduct for managers as for doctors and lawyers. Some individual business organizations,
however, try to develop a code of conduct for their own managers but there is no general and
uniform code of conduct for all managers. In fact, bribing public officials to gain favours,
sabotaging trade unions, manipulating prices and markets are by no means uncommon
management practices. Furthermore, managers in general, do not seem to adhere to the principle
of service above self. However, little regard is paid to the elevation of service over the desire for
monetary compensation is evident by switching of jobs by managers. Indeed such mobile
managers are regarded as more progressive and modern than others.
It may be concluded from the above discussion that management is a science, an art as well as a
profession. As a social science, management is not as exact as natural sciences, and it is not as
fully a profession as medicine and law.
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Q.2 What is Organization Development? Compare organization development with management

development [10]

Answer:
Organization Development (OD) is a response to change, a complex educational strategy
intended to change the beliefs, attitudes, values and structure of organization so that they can
better adapt to new technologies, markets, and challenges, and the dizzying rate of change itself.
(Bennis, 1969).

OD can be defined as a planned and sustained effort to apply behavioural science for system
improvement, using reflexive, self-analytic methods. (Schmuck and Miles, 1971)
Organizational development is a process of planned change- change of an organizations culture
from one which avoids an examination of social processes (especially decision making, planning
and communication) to one which institutionalizes and legitimizes this examination. (Burke and
Hornstein, 1972)

The aims of OD are:

1) Enhancing congruence between organizational structure, processes, strategy, people, and

culture;
2) Developing new and creative organizational solutions; and
3) Developing the organizations self-renewing capacity (Beer, 1980).

Organization development is an organizational process for understanding and improving any and
all substantive processes an organization may develop for performing any task and pursuing any
objectives. A process for improving processes that is what OD has basically sought to be for
approximately 25 years (Vaill, 1989)
Organizational development is a set of behavioural science-based theories, values, strategies,
and techniques aimed at the planned change of the organizational work setting for the purpose of
enhancing individual development and improving organizational performance, through the
alteration of organizational members on-the-job behaviours. (Porras and Robertson, 1992)
OD is a systematic application of behavioral science knowledge to the planned development and
reinforcement of organizational strategies, structure, and processes for improving an
organizations effectiveness. (Cummings and Worley, 1993)
Organization development is a planned process of change in an organizations culture through
the utilization of behavioural science technologies, research, and theory. (Burke, 1994)
As you can see, these definitions overlap a great deal (thats encouraging), and contain several
unique insights (thats enlightening). All authors agree that OD applies behavioural science to
achieve planned change. Likewise, they agree that the target of change is the total organization
or system and that the goals are increased organizational effectiveness and individual
development.
Collectively, these definitions convey a sense of what organization development is and does.
They describe in broad outline the nature and methods of OD. There is no set definition of OD
and no agreement on the boundaries of the field, that is, what practices should be included and
excluded. But these are not serious constraints given that the field is still evolving, and that
practitioners share a central core of understanding as shown in the preceding definitions.
Now lets turn to our definition of organization development. We do not propose it as the right
definition, but as one that includes characteristics we think are important for the present and
future of the field.
Organization development is a long-term effort, led and supported by top management, to
improve an organizations visioning, empowerment, learning, and problem-solving processes,
through an ongoing, collaborative management of organization culture-with special emphasis on
the culture of intact work teams and other team configurations-using the consultant-facilitator role
and the theory and technology of applied behavioural science, including action research. This
definition is lengthy, but it includes a number of components that we consider essential. We will
explain this definition in some detail.

By long-term effort, we mean that organizational change and development takes time- several
years in most cases. There is no quick fix when it comes to lasting organizational improvement.
In fact, it is more accurate to describe improvement as a never-ending journey of continuous
change. One program or initiative moves the organization to a higher plateau; then another
moves it to yet a higher plateau of effectiveness.

The phrase led and supported by top management states an imperative: Top management
must lead and actively encourage the change effort. Organizational change is hard, serious
business; it includes pain and setbacks as well as success. Top management must initiate the
improvement journey and be committed to seeing it through. Most OD programs that fail do so
because top management was ambivalent, lost its commitment, or became distracted with other
duties.

By visioning processes, we mean those processes through which organization members

develop a viable, coherent, and shared picture of the nature of the products and services the
organization offers, the ways those goods will be produced and delivered to customers, and what
the organization and its members can expect from each other. Visioning means creating a picture
of the desired future that includes salient features of the human side of the organization and then
working together to make that picture a reality.

By empowerment processes, we mean those leadership behaviours and human resource

practices that enable organization members to develop and use their talents as fully as possible
toward individual growth and organizational success. By empowerment, we mean involving large
numbers of people in building the vision of tomorrow, developing the strategy for getting there,
and making it happen. For empowerment to become fact of life, it must be built into the very fabric
of the organization-its strategy, structure, processes, and culture.

By learning processes, we mean those interacting, listening, and self-examining processes that
facilitate individual, team, and organizational learning. Peter Senge describes learning
organizations as organizations where people continually expand their capacity to create the
results they truly desire, where new and expansive patterns of thinking are nurtured, where
collective aspiration is set free, and where people are continually learning how to learn together.
Problem-solving processes refer to the ways organization members diagnose situations, solve
problems, make decisions, and take actions on problems, opportunities, and challenges in the
organizations environment and its internal functioning. Michael Beers definition called for
developing new and creative organizational solutions. We believe solutions to problems are
enhanced by tapping deeply into the creativity, commitment, vitality, and common purposes of all
members of the organization, in contrast to having only a select few involved. We further believe
that having compelling, widely shared vision of a desired future creates the best climate for
effective problem-solving by all the organizations members. Empowerment means involving
people in problems and decisions and letting them be responsible for results.

By ongoing collaborative management of the organizations culture, we mean, first, that one
of the most important things to manage in organizations is the culture: the prevailing pattern of
values, attitudes, beliefs, assumptions, expectations, activities, interactions, norms, sentiments,
and artifacts. And second, managing the culture should be a collaborative business, one of wide-
spread participation in creating and managing a culture that satisfies that wants and needs of
individuals at the same time that it fosters the organizations purposes. Collaborative
management of the culture means that everyone, not just a small group, has a stake in making
the organization work. Just as visioning, empowerment, learning, and problem-solving processes
are opportunities for collaboration in organization development, so is managing the culture.

By including culture so prominently in our definition, we affirm our belief that culture is the bedrock
of behaviour in organizations. The reciprocal influence among culture, strategy, structure, and
processes makes each important, and each influences the others. Still, culture is of primary
importance. Edgar Schein clarifies the nature and power of culture in his definition: Culture can
now be defined as (a) a pattern of basic assumptions, (b) invented, discovered, or developed by a
given group, (c) as it learns to cope with its problems of external adaptation and internal
integration, (d) that has worked well enough to be considered valid and, therefore (e) is to be
taught to new members as the (f) correct way to perceive, think, and feel in relation to those
problems. So culture consists of basic assumptions, values, and norms of behaviour that are
viewed as the correct way to perceive, think, and feel-that is why culture change is necessary for
true organizational improvement.

Our definition also places considerable weight on organizational processes. Processes are how
things get done, and we highlight the importance of visioning, empowerment, learning, and
problem-solving processes. Processes are relatively easy to change, so they are the place OD
programs often begin getting people to stop doing things one way and start doing them a
different way. But change becomes permanent when the culture changes and people accept the
new ways as the right ways. We believe that when the culture promotes collaboration,
empowerment, and continuous learning the organization is bound to succeed.

By intact work teams and other configurations, we recognize that teams are central to
accomplishing work in organizations. We think teams are the basic building blocks of
organizations. When teams function well, individuals and the organization function well. Further,
team culture can be collaboratively managed to ensure effectiveness.
The most prevalent form of teams in organizations is intact work teams consisting of superior and
subordinates with a specific job to perform. Team building and role and goal clarification
interventions are standard activities in OD programs directed toward intact work teams. But in
many organizations today, intact work teams do not have a boss in the traditional sense-the
teams manage themselves. These self-directed teams assume complete responsibility for
planning and executing work assignments. In addition to team building and role and goal
clarification, members are trained in competencies such as planning, maintaining quality control,
and using management information. Over time, self-directed teams control performance
appraisals, hiring, firing, and training. The results are usually highly gratifying both for the team
members and for the organization.

Todays organizations increasingly use ad hoc teams that perform a specific task and disband
when the task is completed. The current method for getting complex tasks done in organizations
is to assemble a cross-functional team comprised of members from all the functional specialities
required to get the job done, such as design, engineering, manufacturing, and procurement. The
old method was to have functional specialists work on the problem sequentially. When one
function finished with its part of the project, the process threw the results over the wall to the
next functional unit. This method resulted in loss of synergy, wasted time, much rework, and
considerable antagonism among the separate functional specialists.
In Liberation Management, Tom Peters predicts that the work of tomorrow (most of which will be
brain work) will be done by ad hoc teams brought together to accomplish a task, and then
disbanded with the people going on to new tasks. He uses the terms multifunctional
projectization and horizontal systems to describe these teams and their work. Temporary,
multifunctional, constantly shifting teams will be the dominant configuration for getting work done,
according to Peters. The thesis of Liberation Management is that contemporary bureaucratic
structures with their functional specialties and rigid hierarchies are all wrong for the demands of
todays fast-paced market place.

The definition we have just analyzed contains the elements we believe are important for OD. To
summarize, here are the primary distinguishing characteristics of organization development:
1. OD focuses on culture and processes.
2. Specifically, OD encourages collaboration between organization leaders and members in
managing culture and processes.
3. Teams of all kinds are particularly important for accomplishing tasks and are targets for OD
activities.
4. OD focuses on the human and social side of the organization and in so doing also intervenes in
the technological and structural sides.
5. Participation and involvement in problem-solving and decision-making by all levels of the
organization are hallmarks of OD.
6. OD focuses on total system change and views organizations as complex social systems.
7. OD practitioners are facilitators, collaborators, and co-learners with the client system.
8. An overarching goal is to make the client system able to solve its problems on its own by
teaching the skills and knowledge of continuous learning through self-analytical methods. OD
views organization improvement as an ongoing process in the context of a constantly changing
environment.
9. OD relies on an action research model with extensive participation by client system members.
10. OD takes a developmental view that seeks the betterment of both individuals and the
organization. Attempting to create win-win solutions is standard practice in OD programs.

At this stage, it is beneficial to make a comparison between OD and Management Development

(MD) as both have some common objectives that betterment of an organization; and techniques
adopted in both may overlap to some extent. Before making a comparison between the two, let us
define management development as we have seen the definition of OD. The term development
refers broadly to the nature and direction of change induced in personnel through the process of
training and education. Based on this, management development has been defined as follows:
Management development is all those activities and programmes when recognized and
controlled, have substantial influence in changing the capacity of the individual to perform his
assignment better and in so doing are likely to increase his potential for future management
assignment.
Organization development differs from management development. While the latter aims at
developing the mangers individually for the accomplishment of better performance in
organizational setting, the former goes one step further and purports to change the entire
organizational climate where the mangers work. Miner has drawn difference between two
processes. According to him, there are four attributes of effective managers in large organization.
These are: (i) a positive attitude towards authority,
(ii) competitiveness, (iii) assertiveness, and (iv) a sense of responsibility. He feels that
management development reinforces the above four qualities and helps managers cultivate and
develop the will to manage, whereas OD efforts within organizations may cause confusion and
chaos for incoming human resources if the organization is underplayed and the humanistic
dimension alone is emphasized. If OD efforts train people towards anti-authority value, more
attention to peer-groups, less individual competitiveness, and greater display of feelings and
emotions, then would the results be functional for managing organization activity in a competitive
world? Thus, according to him, OD tries to fit the organization to the men, MD tries to fit the men
to the organization, with their existing objectives and structure. However, he appears to be biased
against OD and the real distinction between OD and MD lies in between these two extremes.
Burke and Schmidt have made this difference more clear which is presented in the following
table.

Difference between Management Development and OD

Factors Management Development Organization Development
Objectives Increasing managersChanging the nature of the
contributions to goalorganization.
accomplishments.
Focus Train and equip employeesFocus on design, not on the
and managers to performmanagers; focus on achieving
better in existing organization. improvement in design.
Approach Educative and training Problem-solving approach.
Time Short-range. Long-range strategy for organizational
innovation and renewal.
Specialist No special requirement. Trained specialists required.

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Q.3 Mr Vikram is the General Manager of a textile company. He has to participate in a meeting
with the board of directors of the company. He is expected to conduct the SWOT Analysis of the
company. Help him in preparing the question checklist in order to attain the required information
about the companys Strengths, Weaknesses, Opportunities and Threats. [10]

Answer:
A mission is the purpose of the organization. Thus, planning begins with clearly defining the
mission of the organization. The mission statement is broad, summarizing what the organization
does. A mission statement should be short and should be easily understood and every
employee should ideally be able to narrate it from memory. An explicit mission guides employees
to work independently and yet collectively toward the realization of the organizations potential.
The mission statement may be accompanied by an overarching statement of philosophy or
strategic purpose designed to convey a vision for the future as envisaged by top management.
Conduct a situational or SWOT analysis
A situation or SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is vital for the
creation of any strategic plan. The SWOT analysis begins with a scan of the external
environment. Organizations need to examine their business situation in order to map out the
opportunities and threats present in their environments. Sources of information may include
stakeholders like, customers (internal and external), suppliers, governments (local, state, federal,
international), professional or trade associations (conventions and exhibitions), journals and
reports (scientific, professional, and trade).
SWOT analysis provides the assumptions and facts on which a plan will be based. Analyzing
strengths and weaknesses comprises the internal assessment of the organization.
For assessing the strengths of the organization the following questions are important:
1. What makes the organization distinctive?
2. How efficient is our manufacturing?
3. How skilled is our workforce?
4. What is our market share?
5. What financing is available?
6. Do we have a superior reputation?
For assessing the weaknesses of the organization the following questions are important:
1. What are the vulnerable areas of the organization that could be exploited?
2. Are the facilities outdated?
3. Is research and development adequate?
4. Are the technologies obsolete?
For identifying opportunities the following elements need to be looked at:
1. In which areas is the competition not meeting customer needs?
2. What are the possible new markets?
3. What is the strength of the economy?
4. Are our rivals weak?
5. What are the emerging technologies?
6. Is there a possibility of growth of existing market?)

Identifying threats involves the following:

1. In which areas does the competition meet customer needs more effectively?
2. Are there new competitors?
3. Is there a shortage of resources?
4. Are market tastes changing?
5. What are the new regulations?
6. What substitute products exist?
In general terms, the best strategy is one that fits the organizations strengths to opportunities in
the environment.
The SWOT analysis is used as a baseline for future improvement, as well as gap analysis.
Comparing the organization to external benchmarks (the best practices) is used to assess
current capabilities. Benchmarking systematically compares performance measures such as
efficiency, effectiveness, or outcomes of an organization against similar measures from other
internal or external organizations.

Set goals and objectives

Strategic goals and objectives are developed to fill the gap between current capability and the
mission. They are aligned with the mission and form the basis for the action plans of an
organization. Objectives are also called performance goals. Generally, organizations have long-
term objectives for factors such as, return on investment, earnings per share, etc. It also helps in
setting minimum acceptable standards or common-sense minimums.

Develop related strategies (tactical and operational)

Tactical plans are based on the organizations strategic plan. In turn, operational plans are based
on the organizations tactical plans. These are specific plans that are needed for each task or
supportive activity comprising the whole. Strategic, tactical, and operational planning must be
accompanied by controls to ensure proper implantation of the plans, necessary to maintain
competitive advantage in the said market.

Monitor the plan

A systematic method of monitoring the environment must be adopted to continuously improve the
strategic planning process. To develop an environmental monitoring procedure, short-term
standards for key variables that will tend to validate and support the long-range estimates must
be established. Feedback is encouraged and incorporated to determine if goals and objectives
are feasible. This review is used for the next planning cycle and review.
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 Master of Business Administration-MBA Semester 3
MU0002 Management and Organization Development - 2 Credits
(Book ID: B1021)
Assignment Set- 2 (30 Marks)
Note: Each question carries 10 Marks. Answer all the questions.

Q.1 Write a detailed note on process consultation. [10]

Answer:
Process Consultation (P.C) is a technique for intervening in an ongoing system. The basic
content of P.C is that the consultant works with individuals and groups in the organization to help
them learn about human and social processes and to solve problems that stem from process
events. Edgar Schein, the leading writer and consultant on P.C has defined it as follows:
The set of activities on the part of the consultant which help the client to perceive, understand,
and act upon the process events which occur in the clients environment.
The basic objectives of P.C are as follows:
1. To bring desired change in the various organizational processes like leadership,
communication, roles and functions of group members, group decision-making and problem-
solving, group norms, and inter-group co-operation and conflicts.
2. To understand how various organizational processes can be linked to objective achievement in
the organization.

Steps in Process Consultation

Schein has suggested following specific steps which the consultant would follow in a P.C
programme of OD.

1. Initiate Contact: This is beginning stage of P.C in which the client makes initial contact with
the consultant with a view to solve the problems faced by the organization which cannot be
solved by existing processes or resources.

2. Define the Relationship: At this stage, client and consultant enter into agreement covering
various aspects of consultancy services like fees, and spelling out services, time, etc. At this
stage, the clients expectations and hoped-for results are also decided.

3. Select the Setting and the Method: It involves a clear-cut understanding of where and how
the consultant will do the job that is required. At this stage, the consultant is introduced to the
organizational members and basic objectives of the P.C are communicated to them with a view
that they co-operate with the consultant.

4. Gather Data and Make a Diagnosis: Information is collected from various sources thorough
the use of questionnaires, observations, and interview about the problems, spelled out at the
initial stage. This data gathering occurs simultaneously with the entire consultative process.
Information collected is processed to diagnose the problems and their underlying causes.

5. Intervene: At this stage, the consultant intervenes in the organizational processes by using
different interventions like agenda-setting, feedback, coaching, and/or structural change.

6. Reduce Involvement and Terminate: When the work of P.C is completed, the consultant
disengages from the client organization by mutual agreement but leaves the door open for future
involvement.

Evaluation of Process Consultation:

Process consultation is quite in-depth activity of OD in which the consultant plays a major role.
Though he is involved only in suggesting the various changes in the processes, he assists the
organizational members to incorporate those changes. From this point of view, P.C is very
effective intervention for organizational improvement.
However, like other OD intervention techniques, P.C is also not free from criticisms. In the review
of various P.C programmes, significant correlation between the outcomes has not been found.
One basic reason for this phenomenon may be the consultants inability to steer the organization
out of troubles. Another problem may emerge at the level of the organization and its members in
terms of how they inculcate the new processes and culture as suggested by the consultant.
However, both these problems may be overcome by engaging a suitable consultant and
developing willingness among the members for change.
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Q.2 Explain Lewins three stage model of change process. [10]

Answer:
Kurt Lewin introduced two ideas about change that have been influential since the 1940s. The
first idea states that what is occurring at any point in time is a resultant in a field of opposing
forces. That is, the status quo-whatever is happening right now-is the result of forces pushing in
opposing directions. For example, we can think of the production level of a manufacturing plant as
a resultant equilibrium point in a field of forces, with some forces pushing toward higher levels of
production and some forces pushing toward lower levels of production. The production level tends
to remain fairly constant because the field of forces remains fairly constant. Likewise, we can
think of the level of morale in that plant as a resultant equilibrium point. Although morale may get
a little better or a little worse on occasion, it generally hovers around some equilibrium point that
is the resultant in a field of forces, some forces pushing toward higher morale and some pushing
toward lower morale. With a technique called the force-field analysis, we can identify the major
forces that make up the field of forces and then develop action plans for moving the equilibrium
point in one direction or the other. This concept is useful for thinking about the dynamics of
change situations.

Lewins second idea was a model of the change process itself. He suggested that change is a
three-stage process:

Unfreezing the old behaviour (or situation), moving to new level of behaviour.

Refreezing the behaviour at the new level. Change entails moving from one equilibrium point to
another. Take the example of a man who smokes cigarettes and wants to quit. The three-stage
model says he must first unfreeze the old behaviour of smoking, that is, believe that cigarette
smoking is bad for him and that he should stop smoking. Next, he must move, that is, change his
behaviour from being a smoker to being a non-smoker. Finally, the non-smoking behaviour must
become permanent- non-smoking becomes the new equilibrium point. Refreezing the desired
behaviour requires establishing a new field of forces to support the new behaviour.
Lewins three-stage model is a powerful tool for understanding change situations. Edgar Schein
took this excellent idea and improved it by specifying the psychological mechanisms involved in
each stage.

A Three-Stage Model of the Change Process:

Stage 1: Unfreezing: Creating motivation and readiness to change through

a. Disconfirmation or lack of confirmation
b. Creation of guilt or anxiety
c. Provision of psychological safety

Stage 2: Changing through Cognitive Restructuring: Helping the client to see things, judge things,
feel things, and react to things differently based on a new point of view obtained through
a. Identifying with a new role model, mentor, etc.
b. Scanning the environment for new relevant information

Stage 3: Refreezing: Helping the client to integrate the new point of view into
a. The total personality and self-concept.
b. Significant relationships.

In stage 1, unfreezing, disconfirmation creates pain and discomfort, which cause guilt and
anxiety, which motivate the person to change. But unless the person feels comfortable with
dropping the old behaviours and acquiring new ones, change will not occur. That is, the person
must develop a sense of psychological safety in order to replace the old behaviours with new
behaviours.

In stage 2, moving, the person undergoes cognitive restructuring. The person acquires
information and evidence showing that the change is desirable and possible. This motivating
evidence is gained by, for example, identifying with ex-smokers and learning about the health
risks of smoking.

The primary task in stage 3, refreezing, is to integrate the new behaviours into the persons
personality, and attitudes. That is, stabilizing the changes requires testing to see if they fit-fit with
the individual, and fit with the individuals social surroundings. The phrase significant relationships
refer to important people in the persons social environment-do these significant others approve of
the changes?
Another modification of Lewins model was proposed by Ronald Lippitt, Jeanne Watson, and
Bruce Westley. They expanded the three-stage model into a seven-stage model representing the
consulting process. Their seven stages are as follows:

Phase 1: Developing a need for change. This phase corresponds to Lewins unfreezing phase.

Phase 2: Establishing a change relationship. In this phase a client system in need of help and a
change agent from outside the system establish a working relationship.

Phase 3: Clarifying or diagnosing the client systems problem.

Phase 4: Examining alternative routes and goals; establishing goals and intentions of action.

Phase 5: Transforming intentions into actual change efforts. Phases 3, 4, and 5 correspond ro
Lewins moving phase.

Phase 6: Generalizing and stabilizing change. This phase corresponds to Lewins refreezing
phase.
Phase 7: Achieving a terminal relationship, that is, terminating the client-consultant relationship.
This seven-stage model lays out the logical steps involved in OD consulting. Similar models have
been developed by Kolb and Frohman and by Burke. These "road maps" are useful for thinking
about change.
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Q.3 Mr Kant is a professor in a management institute. He is also a consultant with Horizontech.

The company wishes to identify the distribution of power bases in the organization. Spring
2010(Jan-June)

Manager 1- Mr. Punya He is the HR manager. A very friendly person who encourages his team
members by giving them recommendations and appreciation. He has the authority to decide
about giving a bonus or promotion to employees.
Mr. Kasa- He is a Project Manager. He is very proficient and expert in different technologies
needed by the organization.
Explain the power majorly enjoyed by the two managers.
Also, explain what could be other bases of power. [10]

Answer:
Power is the intentional influence over the beliefs, emotions, and behaviours of people. Potential
power is the capacity to do so, but kinetic power is the act of doing so. One person exerts power
over another to the degree that he is able to exact compliance as desired.
A has power over B to the extent that he can get B to do something that B would otherwise not
do."
Power is the ability of those who possess power to bring about the outcomes they desire."
"Power is defined in this unit simply as the capacity to effect (or affect) organizational outcomes.
The French word pouvoir stands for both the noun power and the verb to be able. To have
power is to be able to get desired things done, to effect outcomes- actions and the decisions that
precede them."

Two Faces of Power

David McClelland proposed an important distinction when he identified "two faces of power"
positive and negative. McClelland observed that while power has a negative connotation for most
people, it is through the use of power that things get done in the world. According to him, the
negative face of power is characterized by a primitive, unsocialized need to dominate others. The
positive face of power is characterized by a socialized need to initiate, influence, and lead. This
positive face of power enables others to reach their goals as well as lets the person exercising
power reach his or her goals. The negative face of power seeks to dominate and control others;
the positive face of power seeks to empower self and others. We think this distinction provides a
good insight into the concept of power.

In most organizations the positive face of power is much more prevalent than the negative face of
power. Patchen studied organizational decision making and found that coercive tactics were
"noticeable chiefly by their absence" while problem solving and consensus seeking were much
more prevalent. Roberts came to a similar conclusion in her study of "collective power" and
"competitive power." Her research in four organizations showed both kinds of power, being
exercised, with collective, or positive, power being the predominant mode.

Theories about the Sources of Social Power

Power exists in virtually all social situations. It is especially salient in coordinated activities such
as those found in organizations. In fact, for organizations to function, an authority or power
dimension is required.
How do some people come to possess power? How is power generated, bestowed, or acquired?
In this unit, we will examine four different views about who gets power and how:

Emersons "Power-Dependence theory,"

French and Ravens "Bases of Social Power,"
Salancik and Pfeffers "Strategic-Contingency Model of Power,"
Mintzbergs Observations on the Genesis of Power in Organizations.
Power-dependence theory states that power is inherent in any social relationship in which one
person is dependent on another. The sociologist, Richard Emerson states that "the dependence
of Actor A upon Actor B is

(1) directly proportional to As motivational investment in the goals mediated by B, and (2)
inversely proportional to the availability of those goals to A outside of the A-B relation." In other
words, if a person has something we want badly and we cannot get it any other place, that person
has power over us. The components of this theory are a social relation between two parties and
resources (commodities, goals, rewards) that are controlled by one party, and desired by the
other.

Power-dependence theory is related to a broader framework of social interaction called social

exchange theory, which posits that what goes on between persons is an exchange of social
commodities: love, hate, respect, power, influence, information, praise, blame, attraction,
rejection, and so forth. We enter into and continue in exchange relationships when what we
receive from others is equivalent to or in excess of what we must give to others. When the net
balance for us is positive, we will continue the exchange relationship; when the net balance for us
is negative, we will terminate or alter the relationship. Social interaction represents an exchange
of social goods and services. Viewed in this light, giving someone power over us is the
commodity we exchange when we are dependent on that person for something we want.

Closely related to these ideas is the classic statement by John R. P. French and Bertram Raven
on "the bases of social power." These authors suggested five sources, or bases, of social power
as follows:

1. Reward power power based on the ability of the powerholder to reward another, that is, to
give something valued by the other.

2. Coercive power power based on the ability of the powerholder to punish another, that is, to
give something negatively valued by the other.

3. Legitimate power power based on everyones belief that the powerholder has a legitimate
right to exert influence and that the power-receiver has a legitimate obligation to accept the
influence.

4. Referent power power based on the power-receiver having an identification with (attraction
to, or feeling of oneness with) the power holder.

5. Expert power power based on the power holder possessing expert knowledge or expertise
needed by the other. Informational power is a form of expert power where the power holder
possesses important facts or information needed by the other.
In this theory, power belongs to those persons who control or mediate desired commodities.
Exchange theory and power-dependence theory are quite compatible with the ideas proposed by
French and Raven.
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