UNIT-I

INTRODUCTION TO OD

MEANING OF OD

Organizational development is a technique used for bringing change in the

entire aspect of the organization, rather than focusing attention on the
individuals. So that change is readily absorbed O.D. is a comprehensive
strategy for organization improvement. O.D. is a long range effort to improve
an organization’s problem solving and renewal processes, particularly through
a more effective and collaborative management culture. O.D. is a
comprehensive strategy for organization improvement. O.D. is a long range
effort to improve an organization’s problem solving and renewal processes,
particularly through a more effective and collaborative management culture.

DEFINiTION

According to French and Bell, "Organizational development is a long range

effort to improve an organization's problem-solving and renewal processes,
particularly, through a more effective and collaborative management of
organization culture with special emphasis on the culture of formal work
teams with the assistance of a change agent or catalyst and the use of the theory
and technology of applied behaviour science, including action research".

According to Burke, "Organizational development is a planned process

of change in an organization's culture through the utilization of behavioural
science, technology, research and theory".

According to R. Beckhard, "Organizational development is an effort (1)

planned, (2) organization wide, (3) managed from the top, (4) to increase
organization effectiveness and health and (5) through planned intervention in
the organization's processes using behavioural science knowledge" .
CHARACTERISTICS OF ORGANISATIONAL DEVELOPMENT:

1. Organizational development is an educational strategy for bringing a

planned change

2. It is related to real problems of the organization.

3. Laboratory training methods based on experienced behaviour are

primarily used to bring change.

4. O.D. uses change agent (or consultant) to guide and affect the change.
The role of change agent is to guide groups towards more effective
group processes rather than telling them what to do. Change agents
simply assist the group in problem solving processes and the groups
solve the problems themselves.

5 There is a close working relationship between change agents and the

people who are being changed. O.D. seeks to build problem-solving
capacity by improving group dynamics and problem confrontation.

6 O.D. reaches into all aspects of the organization culture in order make
.
7 ) 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.

8.) O.D. is broad-based and describes a variety of change programmes. It is

concerned not only with changes in organizational design but also with
changes in organizational philosophies, skills of individuals and groups.

OBJECTIVES OF OD

The main objectives of OD are to:

1. Improve organizational performance as measured by profitability, market
share, innovativeness, etc.

2. Make organizations better adaptive to its environment which always keeps

on changing.

3. Make the members willing face organizational problems and contribute

creative solutions to the organizational problems.

4. Improve internal behaviour patterns such as interpersonal relations,

intergroup relations, level of trust and support among the role players.

5. Understand own self and others, openness and meaningful communication

and involvement in planning for organizational development.
HISTORY OF OD

Kurt lewin is the founding father of OD, although he died before the concept
became mainstream in the mid-1950s.[2] From Lewin came the ideas of group
dynamics and action research which underpin the basic OD process as well as
providing its collaborative consultant/client ethos. Institutionally, Lewin
founded the "Research Center for Group Dynamics" (RCGD) at MIT, which
moved to Michigan after his death. RCGD colleagues were among those who
founded the National Training Laboratories (NTL), from which the T-
groups and group-based OD emerged.

Kurt Lewin played a key role in the evolution of organization development

as it is known today. As early as World War II (1939-1945), Lewin
experimented with a collaborative change-process (involving himself as
consultant and a client group) based on a three-step process of planning,
taking action, and measuring results. This was the forerunner of action
research, an important element of OD, which will be discussed later. Lewin
also initiated a learning method known as laboratory training, or T-groups.
After Lewin's death in 1947, his close associates helped to develop survey-
research methods at the University of Michigan. These procedures became
important parts of OD as developments in this field continued at the National
Training Laboratories and in growing numbers of universities and private
consulting-firms across the country Leading universities offering doctoral-
level[3] degrees in OD include Benedictine University and the Fielding
Graduate University.

Douglas and Richard Beckhard, while "consulting together at

General Mills in the 1950s coined the term organization development (OD)
to describe an innovative bottom-up change effort that fit no traditional
consulting categories" (Weisbord, 1987, p. 112)
 The failure of off-site laboratory training to live up to its early
promise was one of the important forces stimulating the development of OD.
Laboratory training is learning from a person's "here and now" experience as
a member of an ongoing training group. Such groups usually meet without a
specific agenda.
Their purpose is for the members to learn about
themselves from their spontaneous "here and now" responses to an ambiguous
situation.
Problems of leadership, structure, status, communication,
and self-serving behavior typically arise in such a group. The members have
an opportunity to learn something about themselves and to practice such skills
as listening, observing others, and functioning as effective group
members.[5] Herbert A. Shepard conducted the first large-scale experiments in
Organization Development in the late fifties.[6]
He also founded the first doctoral program in
organizational behavior at Case Western State University, and his colleague,
Robert Blake, was also influential in making the term "organizational
development" a more widely recognized field of psychological research. [7]

As formerly practiced (and occasionally still practiced for

special purposes), laboratory training was conducted in "stranger groups" -
groups composed of individuals from different organizations, situations, and
backgrounds. A major difficulty developed, however, in transferring
knowledge gained from these "stranger labs" to the actual situation "back
home". This required a transfer between two different cultures, the relatively
safe and protected environment of the T-group (or training group) and the
give-and-take of the organizational environment with its traditional values.
This led the early pioneers in this type of learning to begin to
apply it to "family groups" — that is, groups located within an organization.
From this shift in the locale of the training site and the realization that culture
was an important factor in influencing group members (along with some
other[which?] developments in the behavioral sciences) emerged the concept of
organization development.[5]
 PROCESS OF ORGANISATION DEVELOPMENT

1. Initial Diagnosis of the Problem:

In the first step, the management should try to find out an overall view of the
situation to find the real problem. Top management should meet the
consultants and the experts to determine the type of programme that is needed.
In the first stage only, the consultants will meet various persons in the
organisation and interview them to collect some information.

2. Data Collection:
In this stage, the consultant will make the surveys to determine the climate of
the organization and the behavioural problems of the employees. The
consultant will meet groups of people away from their work environment to
get some answers to the questions such as:

(i) What specific job conditions contribute most to their job

effectiveness?

(ii) What kind of conditions interferes with their job effectiveness?

(iii) What changes would they like to make in the working of the
organization?
3. Data Feedback and Confrontation:
The data which has been collected in the second step will be given to the work
groups, who will be assigned the job of reviewing the data. Any areas of
disagreement will be mediated among themselves only and priorities will be
established for change.

4. Planning Strategy for Change:

In this stage, the consultant will suggest the strategy for change. He will
attempt to transform diagnosis of the problem into a proper action plan
involving the overall goals for change, determination of basic approach for
attaining these goals and the sequence of detailed scheme for implementing
the approach.

5. Intervening in the System:

Intervening in the system refers to the planned programmed activities during
the course of an OD programme. These planned activities bring certain
changes in the system, which is the basic objective of OD. There may be
various methods through which external consultant intervene in the system
such as education and laboratory training, process consultation, team
development etc.

6. Team Building:
During the entire process, the consultant encourages the groups to examine
how they work together.

The consultant will educate them about the value of free communication and
trust as essentials for group functioning. The consultant can have team
managers and their subordinates to work together as a team in OD sessions to
further encourage team building. Following the development of small groups,
there may be development among larger groups comprising several teams.

7. Evaluation:
OD is a very long process. So there is a great need for careful monitoring to
get precise feedback regarding what is going on after the OD programme
starts. This will help in making suitable modifications whenever necessary.
For evaluation of OD programme, the use of critique sessions, appraisal of
change efforts and comparison of pre and post training behavioural patterns
are quite effective.
 The steps in OD are part of a whole process, so all of them
need to be applied if a firm expects to get the full benefits of OD. An
organization which applies only a few steps and leaves the others will be
disappointed with the results

Advantages of Organization Development

Organization development has some advantages. An organization can enjoy

these advantages by resorting to all steps of OD systematically and
scientifically. These advantages are as follows:

1. Change throughout the organization: Development activates are

undertaken throughout the whole organization.
2. Greater motivation: After undertaking and completing the OD
program, managers and employees feel motivated to work with joy.
3. Increased productivity: OD increases productivity. Because
employees can work with new method and machines.
4. Better quality of work: Quality work, goods & services through
successful OD program can be ensured.
5. Higher job satisfaction: Managers and employees became satisfied
with changed things and more facilities.
6. Improved Teamwork: Employees get team spirit and teamwork may
be encouraged as they become satisfied and motivated by top
management.
7. Better resolution of conflict: After getting the organization
developed, managers and employees mentalities also get developed and
broadened. Thus they can resolve conflict easily.

8 . Commitment to objectives: Goal orientation and commitment is created

among the employees. After getting everything developed they don’t get any
scope of showing negligence.

8. Increased willingness to change: OD program creates the awareness

to accept change without resistance. If the managers and employees are
convinced they become willing to any change to be executed later.
9. Reduced absences: Absenteeism is reduced and employees attend the
office and work in time which leads to high productivity.
10.Lower Turnover: Turnover is one of the problems of an organization
through OD program employee turnover rate becomes lower.
 11.Creation of learning individuals and groups: With a number of
development programs taken very often, individuals and groups learn
many things. They become equipped to management development
program in future.

Disadvantages of Organization Development

Organization Development program suffers some limitations also. The degree

of these limitations may vary from one organization to another. However,
some limitations are discussed below:

1. Major time requirements: OD programs take a long time. Not only

that for taking any action plan for OD, planners take much time.
2. Substantial expenditure: It costs many. A lot of funds are required to
execute to OD program. Sometimes an organization cannot manage
funds.
3. Delayed pay off period: In some cases, the OD program is affected by
delayed pay off period. That is why some organizations become
reluctant.
4. Possible failure: OD program may be failed due to some reasons.
These failures are both human-related and non-human related.
5. Possible envision of privacy: Privacy of the organization may be
leaked out through the OD program. Due to the involvement of
irresponsible people,
6. Possible psychological harm: Some psychological harm is
experienced while taking the OD program. Employees with strong
psychology can protect it.

Potential conformity: Due to potential conformity with and results

different actions, OD programs might create misunderstanding and .

7. Emphasis on group process: Very often the emphasis is laid on group

process. If the group does not mean so or take it seriously, and OD
program is affected.
8. Conceptual ambiguity: OD program concept, its operational
possibility potential output etc. may not be clearly understood by some
people who are involved with OD.
9. Difficulty in evaluation: Evaluation of OD program does not take
place properly. This can raise many objectives from some corners.
 10.Cultural incompatibility: If OD program does adjust with the existing
culture, it can bring desired results

ATTITUDES VALUES AND BELIEFS IN ORGANISATION

DEVELOPMENT

BELIEF

Belief is the state of mind in which a person thinks something to be the case
with or without there being empirical evidence to prove that something is the
case with factual certainity .Another way of defining belief sees it as a mentall
representation of an attitude positively oriented towards the likelihood of
something being tru

Beliefs in Organization Development

System focused

We approach organizations teams and individuals as open systems.we

intervene with sensitivity and awareness in the knowledge that change in the
one area of a system always results in other areas and changes in one area
cannot be sustained without supporting chnges in other areas of the system

Inquiry based

Our interventions are based on a balance between content and process.This

involves proactive inquiry and assessment of the internal environment in order
to discover and create compelling need for change and the achievement of a
desired future state

Client centered

A critical pillar of our consulting work is to focus sharply on the needs of the
client in order to promote client ownership of all phases of the work and
support the clients ability to sustain change independently

Culturally Appropriate

Our aim is to create and sustain a healthy effective human system as an

interdependent part of its larger environment .Organisational culture is
basically a set of shared values and beliefs which interact with an
organizations people, structure and system to produce behavioural norms

VALUES
Value is the basic convictions that describes as treating actions themselves as
abstract objects ,putting value to them. it deals with right conduct and good
life.

Definition of value

According to Rokeach “ a value is a belief that something is good and

desirable”

According to R.K Mukerjee “values are socially approved desires and goals
that are internalized through the process of conditioning.

TYPES OF VALUES

Individual values

These are the values which are related with the development of human
personality or individual norms of recognition and protection of the human
personality such as honesty, loyalty honour

Collective values

Values connected with the solidarity of the community or collective norms of

equality ,justice, solidarity and sociableness are known as collective values

Intrinsic values

These are the values which are related with goals of life. They are sometimes
known as ultimate and transcendent values
VALUES OF ORGANISATION DEVELOPMENT

Organization development constitutes various people ,professionals,

technocrats, researchers, managers and a host of other employees working in
the organization contributing to the accomplishment of organizational
objectives

The following are the values in the organization development efforts

Respect people

People ate the raison d’etre of organization and they are responsible for
creating opportunities for growth. They must therefore be treated with respect
and dignified manners

Confidence and Support:

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

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 out feasible so causes, discussing it openly and finding out feasible
solution leads to boosting up morale of the employees and creating good
environment

Employee Participation

Participation of employees who will b affected by the organization

development be sought in decision making

Seeking Co-operation

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

Attitudes in Organization Development

The organization development has a number of underlying assumptions

which can be examined so as to determine how the organization development
programmes can be utilized to the fullest potential

1) Most Individuals have driven towards personal growth and

development .However the work habits are the response to the work
environment rather than personality traits
2) Highest Productivity can be achieved when the individual goals are
integrated with organizational goals
3) Co-operation is more effective than competition .conflict and
competition tend to erode trust prohibit collaboration and eventually
limit the effectiveness of organization
4) 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
5) OD programmes if they are to succeed must be reinforced by the
organizations total human resources management
 UNIT –II

OD MODELS

LEWIN'S CHANGE MANAGEMENT MODEL

Understanding Three Levels of change

Change is a common thread that runs through all businesses regardless of size,
industry and age. Our world is changing fast and organizations must change
quickly, too. Organizations that handle change well thrive, whilst those that
do not may struggle to survive.

The concept of "change management" is a familiar one in most businesses

today. But how businesses manage change (and how successful they are at it)
varies enormously depending on the nature of the business, the change and the
people involved. And a key part of this depends on how well people within it
understand the change process.

One of the cornerstone models for understanding organizational change was

developed by Kurt Lewin back in the 1940s, and still holds true today. His
model is known as Unfreeze – Change – Refreeze, which refers to the three-
stage process of change that he describes. Lewin, a physicist as well as a social
scientist, explained organizational change using the analogy of changing the
shape of a block of ice.
Understanding Lewin's Change Management Model

If you have a large cube of ice but realize that what you want is a cone of ice,
what do you do? First you must melt the ice to make it amenable to change
(unfreeze). Then you must mold the iced water into the shape you want
(change). Finally, you must solidify the new shape (refreeze).

By looking at change as a process with distinct stages, you can prepare

yourself for what is coming and make a plan to manage the transition – looking
before you leap, so to speak. All too often, people go into change blindly,
causing much unnecessary turmoil and chaos.

To begin any successful change process, you must first start by

understanding why the change must take place. As Lewin put it, "Motivation
for change must be generated before change can occur. One must be helped to
re-examine many cherished assumptions about oneself and one's relations to
others." This is the unfreezing stage from which change begins.
Unfreeze

This first stage of change involves preparing the organization to accept that
change is necessary, which involves breaking down the existing status quo
before you can build up a new way of operating.

Key to this is developing a compelling message showing why the existing way
of doing things cannot continue. This is easiest to frame when you can point
to declining sales figures, poor financial results, worrying customer
satisfaction surveys, or suchlike. These show that things have to change in a
way that everyone can understand.

To prepare the organization successfully, you need to start at its core – you
need to challenge the beliefs, values, attitudes, and behaviors that currently
define it. Using the analogy of a building, you must examine and be prepared
to change the existing foundations as they might not support add-on storeys.
Unless this is done, the whole building may risk collapse.

This first part of the change process is usually the most difficult and stressful.
When you start cutting down the "way things are done," you put everyone and
everything off balance. You may evoke strong reactions in people, and that's
exactly what needs to be done.

By forcing the organization to re-examine its core, you effectively create a

(controlled) crisis, which in turn can build a strong motivation to seek out a
new equilibrium. Without this motivation, you won't get the buy-in and
participation necessary to effect any meaningful change.

Change

After the uncertainty created in the unfreeze stage, the change stage is where
people begin to resolve their uncertainty and look for new ways to do things.
People start to believe and act in ways that support the new direction.

The transition from unfreeze to change does not happen overnight: people take
time to embrace the new direction and participate proactively in the change.
A related change model, the Change Curve , focuses on the specific issue of
personal transitions in a changing environment and is useful for understanding
this aspect in more detail.
In order to accept the change and contribute to making it successful, people
need to understand how it will benefit them. Not everyone will fall in line just
because the change is necessary and will benefit the company. This is a
common assumption and a pitfall that should be avoided.

Time and communication are the two keys to the changes occurring
successfully. People need time to understand the changes, and they also need
to feel highly connected to the organization throughout the transition period.
When you are managing change , this can require a great deal of time and
effort, and hands-on management is usually the best approach.

Refreeze

When the changes are taking shape and people have embraced the new ways
of working, the organization is ready to refreeze. The outward signs of the
refreeze are a stable organization chart, consistent job descriptions, and so on.
The refreeze stage also needs to help people and the organization internalize
or institutionalize the changes.

This means making sure that the changes are used all the time, and that they
are incorporated into everyday business. With a new sense of stability,
employees feel confident and comfortable with the new ways of working.

The rationale for creating a new sense of stability in our ever-changing world
is often questioned. Even though change is a constant in many organizations,
this refreezing stage is still important. Without it, employees get caught in a
transition trap where they aren't sure how things should be done, so nothing
ever gets done to full capacity. In the absence of a new frozen state, it is very
difficult to tackle the next change initiative effectively. How do you go about
convincing people that something needs changing if you haven't allowed the
most recent changes to sink in? Change will be perceived as change for
change's sake, and the motivation required to implement new changes simply
won't be there.

As part of the refreezing process, make sure that you celebrate the success of
the change – this helps people to find closure, thanks them for enduring a
painful time, and helps them believe that future change will be successful.
BRUKE LETWIN MODEL

An useful model for understanding the organizational change process is

the Burke-Litwin Change Model published by George H Litwin and W
Warner Burke in 1992. This model shows the causal effects of change
between 12 key areas of organizational design. Using the model, you can
learn which organizational variables to change and why. You can then use
this understanding to analyze, diagnose and even predict the effects of
change throughout an organization.

Understanding the Model

The Burke-Litwin model is used as a guide for identifying and linking
factors that are critical to a successful change initiative. According to the
model there are 12 of these critical factors.

Input: External Environment

The loop starts with the external environment, shown in dark blue in
Figure 1. This is what creates the need for change. Examples in include a
weakening in the economy, shifts in social trends, and the arrival of new
technology.

By including the external environment as an input, the Burke-Litwin

model goes one stage further than the Congruence Model of
organizational performance. It is also considerably more complex,
involving more elements. In developing their model, Burke and Litwin
tried to strike a balance between reflecting the genuine complexity of the
real world, and creating something that people could readily understand
and use.
Throughput: Transformational Factors

Transformational factors are the elements that are core to an

organization's performance. They make up the fundamental structure of
an organization and are shown in sky blue in Figure 1. If you're going
to make significant changes to your area, or transform an organization,
you need to address these factors.

Mission and Strategy – What the organization's people believe to be the

core purpose for the organization's existence;

Leadership – The actions, philosophies, and values of senior managers;

Organizational Culture – The norms of behavior and values that are

accepted and expected within the organization. To effect significant change,
or even perform at acceptable levels, these three elements must be aligned
.change that is intended to shake-up "the way things are done around here."
The arrows showing the interaction between these transformational factors
and the transactional factors described below are shaded downwards to
indicate that, although the upper and lower elements both impact each other,
the impact is stronger in the downwards direction.

Throughput: Transactional Factors

These are the elements of an organization that are more easily

changed, but rarely have the same kind of impact on organization-
wide performance as the transformational ones. They are shown in
light green in Figure 1. They are important, but unless the three
transformational factors support the change, modifications in these
areas are likely to be temporary.

Structure – The way the organization is set up in terms of roles and

functions, communication, lines of authority, and decision-making.

Systems – The processes and procedures that are in place to support

operations.

Management Practices – How managers and people with authority and

responsibility execute the strategy on a day-to-day basis.
Work Climate – The prevailing attitude and morale of the people
working for the organization.

Task and Individual Skills – The degree of "fit" between the skills
required for the job and the skills of the people doing the job.

Individual Needs and Values – The degree to which the processes and
systems within the organization fulfill the needs of the employees and
allow them to feel satisfied.

Motivation – The intrinsic and extrinsic factors that motivate people to

perform well on a consistent basis.

In fact, all twelve elements affect each other, but the arrows on
the diagrams show the relationships between elements that the authors
considered the strongest. Even so, it quickly becomes clear how a change
in one element can have an organization-wide impact.

And while change or improvement in any one of these

transactional factors can affect performance, the effect will only be long
lasting if the underlying transformational elements are aligned.
For example, if you restructure departments and create cross
functional work teams without addressing the deeply held belief that
functional groups operate best as distinct business units, then your
restructuring may even be detrimental to performance. Likewise, if you put
in place a top-notch reward and recognition system to motivate employees,
but it doesn't reward people for behaviors that support the mission, then the
effect may be counterproductive.

Output: Individual and Organizational Performance

The outcome of the change is the effect it has on performance (shown in

gray in Figure 1). This is the measure of the effectiveness of the change.
It also has an impact on the external environment, which is what creates
the loop. Therefore, as the output changes, so does the input and so the
 factors of change themselves also change, once again proving that the only
constant is change!
Applying the Burke-Litwin Change Model
So the theory sounds good, but how do you use it? The model's greatest
value is as a framework for understanding the current situation and the
collateral impact of proposed changes.

Step 1: Where is the Need for Change Coming From?

Change initiatives are driven by one of two things: either something isn't
working now, or something won't be working as well as you want it to in
the future if you don't make changes now.Either way, the change
initiatives will be focused in one of the four groups of elements in Figure

The External Environment

1. Transformational Factors

2. Transactional Factors

3. Performance

Start by deciding which group your change imperative belongs to.

Then identify which of the elements in each group is key for your situation.In
general, the lower down the model your key element is, the more easily you
will be able to effect the change required.

Example:

A small software development company had grown successfully over several

years, and now employed around 60 people. However, in the last 9 months,
staff had started leaving. Karen, one of the founders, set about finding out
why this was happening.
She contacted some of the recent leavers and found that they had been
unhappy with a new emphasis she and her business partner had put on
developers selling work to clients. In the past, she and her partner had cut
the deals. But as the company had matured, the founders had wanted to put
more of their time into a new venture, and had figured that selling software
required strong technical knowledge, so the developers themselves would
be well placed do to this. While this was essentially true, the problem was
that the developers didn't like doing this task, and they also felt they lacked
sales skills.Using the Burke-Litwin Model, Karen concluded that "Task and
Skills" was the key problem area.

Step 2: Assess the Current Situation

The next step is to understand the key element in your change imperative in
detail. Use the questions from the following list as a guide, and also explore
the other 11 elements, spending more time on those that Figure 1 links most
closely with your key element.

External Environment – What is driving the change? How will these

drivers impact the organization?

Mission and Strategy – Is there a clear mission? What is it? Is there a

perceived mission and strategy that is different from the formal one? Do
employees believe in the mission and strategy?

Leadership – Who are the real leaders? What style do they use? Is this style
successful?

Organizational Culture – What are the unwritten rules of behavior? Do any

of these rules conflict with what the organization is seeking to accomplish?

Structure – How are people and functions arranged? How flexible is

the structure? Where are decisions made? How is authority and
responsibility divided up? How is information communicated?

Systems – What are the key policies and procedures that define how work
is done? What systems are in place to motivate, reward, recognize,
appraise, and compensate employees?

Management Practices – What style of management is practiced? How

managers interact with their employees? Are teams used?
Work Climate – What is the morale of the staff like? How do people
get along with each other? What systems are used to resolve conflict?
Are there definite dividing lines between units, departments, or
locations?

Task and Individual Skills – How are job requirements defined? Who
defines them? How well are people matched to their jobs?

Individual Needs and Values – Are people generally satisfied at work?

What efforts are made to ensure job satisfaction? What opportunities
are given for professional development and career succession?

Motivation – Are staff motivated through formal systems? Is motivation

expected to be intrinsic? What impacts motivation the most?

Individual and Organizational Performance – How is

productivity measured? What are the performance levels on these
factors? What should be measured that isn't?
Example:

Karen looked at the following elements of the Burke Litwin Model which
are the most closely linked to the key problem area of Task & Skills.

Task and Individual Skills: The new requirement to sell work had not
been properly discussed with the developers before it was brought in. The
approach came entirely from the founders, who loved selling; they hadn't
appreciated that developers who thrived on satisfying customer needs
might not enjoy brokering the deal too.

Structure: As the company had grown, its structure had not grown with
it. All developers essentially had the same job description. Karen and
her business partner made all the decisions.

Mission and Strategy: The company's growth targets had not been
adjusted to reflect the change in approach to sales.

Leadership: Karen and her business partner were spending less time on
the business, yet had not appointed anyone else to take over the parts of
the leadership role they had vacated. They were charismatic leaders, so
once they were not as involved, employees felt that the business lacked
direction.

Motivation: Employees were demotivated by having to work they didn't

enjoy and felt they were no good at. A reward system had been
introduced to give bonuses based on the revenue generated by each
developer, but employees felt that they could not access these bonuses
as they were not good enough at selling work.

Individual Needs and Values: The developers who had left wanted to
be able to focus on development work and on surpassing the
expectations of clients who had already decide to "buy" from them.
They did not want to have to work on winning round clients, and did
not particularly value high sales bonuses.
Individual and Organizational Performance: Individual
performance was dropping as developers had spent less time on
development, and were not successful in their selling work.
Organizational performance dropped as less work was being
won.

Step 3: Incorporate All Affected Elements Into Your Change Plan

Now that you understand "what" is happening, you need to figure out what
you're going to change in the key problem element, and what therefore
also needs to change in the main related elements.
This may need to be done as an iterative process: change in one element
affects a second element, which affects a third, yet the change in the third
element may require another alteration back in the first element again.

Example:

Karen consulted with her team of developers and, together, they agreed a
new approach: Task and Individual Skills: Selling work would no longer
be required of developers.

Structure: A new sales team would be formed, headed up by a

professional sales executive. The team would include several hybrid
developer-seller roles, offering an opportunity for those developers
who had enjoyed doing selling work. Developers who applied for
these roles would be given sales training.

Mission and Strategy: Karen and her business partner recognized that
their interests were focused on their new venture, and so revised their
growth expectations for the software company.

Leadership: A new Chief Executive was appointed to run the software

company, with the founders moving to Chairman/Advisor roles

Motivation: Intrinsic motivation increased greatly as employees no

longer had to do types of work for which they felt they were not suited.
The reward system was enhanced to recognize developers who
maintained long-term relationships with clients, as well as developer-
sellers who brought in new work.

Individual Needs and Values: The developers now felt that a range of
opportunities was available to satisfy their individual needs and values.

Individual and Organizational Performance: Individual and

organizational performance improved.

EMPLOYEE PARTICIPATION

Employee participation involves management actively encouraging staff to

assist in running and improving business processes and operations .Also
known as employee involvement ,employee participation includes
management recognizing individual employees opinions and input so that
employees understand that management views them as unique and
individually valuable to running the business

Benefits of promoting Employee participation

Building a stronger community

When everyone participates the company is benefitted by the development

pgf an employee community .Employees that feel their opinion is valued
and see changes designed to benefit both them and the customer are more
likely to feel invested in the success of the company

Improving Communication

Another big benefit of employee participation is the breaking down of

tradition and trouble points in a workflow
Reducing stress

Participation can also serve to reduce in both employees and employers.

stress can build up over uncertainities regarding company changes because
of new workflows or because employees ideas are not taken into
consideration

Boosting Productivity

Speaking of productivity ,employee participation in company direction and

decision making can also help to make them more productive in the long run

Increasing Product quality

Finally employee engagement can also play itself out in a way that makes
the final product produced by your company much better .For instance ,if
employees are better informed on the direction of the company they will be
able to communicate these ideas to customers

Methods of Employee participation

Participation of workers in decision making process has resulted in

successful value creation in many organization. Though the extent to which
employees should participate in organizational decision making is still a
matter of debate

1)Participation at the Board Level

2)Participation through ownership

3)participation through collective Bargaining

4)Participation through Suggestion schemes

5) Participation through complete control

6)participation through job enrichment

7)Participation through Quality circles

TEAM AND TEAMS WORK

A team is a group of individuals (human or non-human) working together to

achieve their goal.
As defined by Professor Leigh Thompson of the Kellogg School of
Management, "[a] team is a group of people who are interdependent with
respect to information, resources, and skills and who seek to combine their
efforts to achieve a common goal".[1]
A group does not necessarily constitute a team. Teams normally have
members with complementary skills[2] and generate synergy[3] through a
coordinated effort which allows each member to maximize their strengths
and minimize their weaknesses. Naresh Jain (2009) claims Team members
need to learn how to help one another, help other team members realize
their true potential, and create an environment that allows everyone to go
beyond their limitations

Team Building

Team building is a collective term for various types of activities used to

enhance social relations and define roles within teams, often involving
collaborative tasks. It is distinct from team training, which is designed by a
combine of business managers, learning and development/OD (Internal or
external) and an HR Business Partner (if the role exists) to improve the
efficiency, rather than interpersonal relations Its aim is to help teams work
more effectively and efficiently together while improving and strengthening
the relationships between people in the group

Most teams go through several stages of

development as part of their natural path of growth. At the initial stages of
development ,unclear objectives may create confusion low morale poor
listening and a general lack of commitment .As a result hidden agendas
conflicts confrontation and resentment may develop which in turn could
lead to inconsistent performance and failure

By taking a team through a team building

experience ,we help the team clarify their goals build ownership for the goals
as well as commitment to the success of the team and its objectives .we also
help motivate the team members and build stronger working relationships
between all individuals. This speeds up the normal development of the team,
helps set it on the best course and brings it quickly to a stage of agreement
,progress and clarity.The overall result is a release of the teams creativity
motivation and enthusiasm and thus creates better and quicker outcomes for
the team

Stages of Effective Team Development

This process of learning to work together effectively is known as team

development. Research has shown that teams go through definitive stages
during development. Bruce Tuckman, an educational psychologist,
identified a five-stage development process that most teams follow to
become high performing. He called the stages: forming, storming, norming,
performing, and adjourning. Team progress through the stages is shown in
the following diagram.
Most high-performing teams go through five stages of team development.

Forming stage

The forming stage involves a period of orientation and getting acquainted.

Uncertainty is high during this stage, and people are looking for leadership
and authority. A member who asserts authority or is knowledgeable may be
looked to take control. Team members are asking such questions as “What
does the team offer me?” “What is expected of me?” “Will I fit in?” Most
interactions are social as members get to know each other.

Storming stage

The storming stage is the most difficult and critical stage to pass through. It
is a period marked by conflict and competition as individual personalities
emerge. Team performance may actually decrease in this stage because
energy is put into unproductive activities. Members may disagree on team
goals, and subgroups and cliques may form around strong personalities or
areas of agreement. To get through this stage, members must work to
overcome obstacles, to accept individual differences, and to work through
conflicting ideas on team tasks and goals. Teams can get bogged down in
this stage. Failure to address conflicts may result in long-term problems.

Norming stage

If teams get through the storming stage, conflict is resolved and some degree
of unity emerges. In the norming stage, consensus develops around who the
leader or leaders are, and individual member’s roles. Interpersonal
differences begin to be resolved, and a sense of cohesion and unity emerges.
Team performance increases during this stage as members learn to cooperate
and begin to focus on team goals. However, the harmony is precarious, and
if disagreements re-emerge the team can slide back into storming.
Performing stage

In the performing stage, consensus and cooperation have been well-

established and the team is mature, organized, and well-functioning. There
is a clear and stable structure, and members are committed to the team’s
mission. Problems and conflicts still emerge, but they are dealt with
constructively. (We will discuss the role of conflict and conflict resolution
in the next section). The team is focused on problem solving and meeting
team goals.

Adjourning stage

In the adjourning stage, most of the team’s goals have been accomplished.
The emphasis is on wrapping up final tasks and documenting the effort and
results. As the work load is diminished, individual members may be
reassigned to other teams, and the team disbands. There may be regret as the
team ends, so a ceremonial acknowledgement of the work and success of the
team can be helpful. If the team is a standing committee with ongoing
responsibility, members may be replaced by new people and the team can
go back to a forming or storming stage and repeat the development process

Team work

Teamwork is the collaborative effort of a team to achieve a common goal

or to complete a task in the most effective and efficient way. [ This concept
is seen within the greater framework of a team, which is a group
of interdependent individuals who work together towards a common
goal.] Basic requirements for effective teamwork are an adequate team size
(about 6-8 members), available resources for the team to make use of (i.e.
meeting space and time, guidance from a supervisor, support from the
organization, etc.), and clearly defined roles within the team in order for
everyone to have a clear purpose. Teamwork is present in any context where
a group of people are working together to achieve a common goal.
 These contexts include an industrial
organization (formal work teams), athletics (sports teams), a school
(classmates working on a project), and the healthcare system (operating
room teams). In each of these settings, the level of teamwork and
interdependence can vary from low (e.g. golf, track and field), to
intermediate (e.g. baseball, football), to high (e.g. basketball, soccer),
depending on the amount of communication, interaction, and collaboration
present between team members.

Effective Team work

In addition to practical components required for efficient teamwork, there

are certain characteristics that members of the team must have in order to
produce effective teamwork. Firstly, there must be a high level of
interdependence among team members, a characteristic that stems from
open communication and the increase of trust and risk-taking. Through
interdependence come the group dynamics, which are the ways in which
team members interact with each other. Healthy dynamics lead to team
members being more satisfied and therefore working more efficiently
together, whereas unhealthy dynamics lead to conflict, and consequentially
to unsatisfied team members. Due to this, an important characteristic of
efficient teamwork is healthy conflict resolution, that comes along with open
communication. In order for efficient teamwork to exist, a team needs to
have clear and attainable goals, through which team members can feel
accomplished and motivated. Finally, sharing leadership positions between
team members enhances teamwork due to the feeling of shared
responsibility and accountability. Team effectiveness and chemistry may
also be linked to personality types. Depending on personality types, teams
may be more or less efficient.

SOME ADVANTAGES OF TEAMWORK

It is always better to start with the good news. Even though there are
drawbacks that we will see later, teamwork has multiple virtues that make
it a habit to adopt in almost any company. Let’s look at some.

Increases productivity
Whichever way you look at it, well applied, teamwork is a pump to raise
the team’s performance to notably. Teamwork allows you to distribute
tasks so that each person takes care of the tasks for which he or she is better
qualified. In addition, it will be easier to avoid work duplication, which
will save time. And we leave for the end the most important thing: by
sharing tasks and spaces, ideas flow and creativity soars, which increases
performance beyond the individual capacities of each person.

It is more pleasant
Although there are people who prefer working alone, human beings like to
share their experiences with others, and that is evident. Teamwork can
provide extra energy at low times. Also, on an emotional level, feeling
accompanied is more satisfying than working alone. All of this could have
repercussions on important factors, such as absenteeism or job rotation.

Increases motivation
Feeling part of a team is a spur to motivation. Sharing successes means
having extra fuel for the day to day; doing the same thing with failures
helps them to better deal with them and to seek joint solutions to overcome
them and prevent them from recurring. Knowing that you have close
support and that you work for a common purpose will make the team
reach farther than a single person would.

Provides more learning opportunities

The people who form a team will have diverse backgrounds, ways of being,
training and all kinds of different professional and life experiences, which
will be a continuous opportunity to continue learning things. Teamwork
can enrich people both professionally and on a personal level, and that
is priceless.

Facilitates organization
Planning and organizing for a group is easier than doing so for individuals.
Both communication and resource allocation will be easier to do if we
target a few teams sthan targeting a large number of individuals. All this
should improve, in addition, the coordination of all the people/teams that
are part of the company.

Disadvantanges of Team work

Utilizing team work is sometimes unnecessary and can lead to teams not
reaching their performance peak .some of those disadvantages include

Social Loafing

This phenomenon appears when an individual working in a group places less

effort than they can towards a task. This can create an inequality between
the amount of work other individuals are placing within the team,therefore
can create conflict and lead to lower levels of performance

Behavior conflicts or ingrained Individualism

Employees in higher organizational levels have adapted to their positions at

the top that require more individualism and therefore have trouble engaging
in collaborative work .This creates a more competitive environment with a
lack of communication and higher levels of conflict

Individual Tasks

Certain tasks do not require teamwork and are more appropriate for
individual work .By placing a team to complete an individual task there can
be high levels of conflict between members which can damage the teams
dynamic and weaken their overall performance

EMPLOYEE EMPOWERMENT

Employee empowerment means that an employee is given a chance to be

enterprising ,take risks without compromising with the organizational goals
mission and vision .His say in the process of decision making is increased.

This can be for one particular individual or for the entire

organization. In the latter case it is participative management. There are
pros and cons to this employee empowermen. Whereas it is said and has
been observed that participative management may lead to increased
productivity, motivation, job satisfaction and quality enhancement

Employee empowerment involves management recognizing that

employees are in a better position to oversee their own duties and work
processes. Management plays a crucial role in empowerment as employees
cannot manage themselves without being trained properly

Objectives of Employee Empowerment

Employee empowerment is allowing workers to make decisions that would

otherwise come from management. By empowering employees who have
direct knowledge about the matter at hand services are delivered efficiently

Knowledge

Employees on the ground are a repository of knowledge on the situations

they deal with on a daily basis. Empowering a worker to make decisions
motivates him and makes him feel more attached to the organistion

Leadership

Corporate decentralization also changes the way a manager functions.

Instead of issuing orders, todays manager has assumed more of leadership
and coaching roles. when the workers are properly trained and empowered,
management also has enough time to engage in thinking about the
objectives and vision of the firm

Production System

Toyota corporation realized setup time was costly because it tied labor ,
equipment and added no value

Importance of empowering employees

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 employee will become self evident

Satisfied employees

Various studies have shown that empowered employees are more satisfied
in their work, and less likely to seek employment else where. this decreases
employement costs and the need for training of new staff.

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

Productivity Increases

As confidence and self esteem grows and a more quality focused and
collaborative approach takes hold productivity will increase .People who
are accountable for their work become owners of productivity will increase
.People who are accountable for their work become owners of process and
product and energy to do the job better follows
Employee empowerment reduces cost

Costs will be reduced across the organization

1) An empowered workforce is more satisfied with their job and career

path and staff turnover falls accordingly
2) Retention rates rise training costs fall and experience al medo remains
in house
3) Operations become more efficient and productivity rises constantly

Components of Employee empowerment

Foster a Social Workforce

Employee empowerment begins with giving your staff access to the

resources they need to become more productive and efficient .Today we re
constantly browsing o social media pages at work and checking emails at
home creating an undeniable connection between our work and personal
lives

Consult Employees

Empowering employees also means endowing them with a sense of

authority and trust that can promote greater pride in their workplace. workers
who feel pride in their brand are often more satisfied and engaged at work.
In other words something as simple as empowerment can lead to fewer
turnovers greater productivity and enhanced efficiency

Establish guidelines

Employee empowerment doesn’t mean you have to give employees

complete freedom and free reign over the company .Start your
empowerment strategy by making sure everyone is on the same page
regarding the goals of the business and provides a loose framework around
what your staff can do
Create Flexible Team Structures

Engagement is an element felt strongly among employees and the customers

you serve and achieving this often hinges on collaboration .when you
encourage this kind of internal culture your most innovative employees will
begin to connect with one another and inspire new ideas and solutions

Encourage Open Communication

Many of todays businesses are built using topdown communication

structures. While this might feel nature environment often to executives
,employees

SYSTEM THEORY

Systems Theory

Systems theory is the interdisciplinary study of systems. A system is a

cohensive conglomeration of interrelated and interdependent parts that is
either natural or man made. Every system is delineated by its spatial and
temporal boundaries, surrounded, and influenced by its environment,
described by its structure and purpose or nature and expressed in its
functioning .In terms of its effects a system can be more than the sum of its
parts if it expresses synergy or emergent behavior

Changing one part of the system

usually affects other parts and the whole system ,with predictable patterns
of behavior . For systems that are self learning and self adapting ,the positive
growth and adaptation depend upon how well the system is adjusted with
its environment

The goal of systems theory is

systematically Discovering a systems dynamics constraints conditions and
elucidating principles that can be discerned and applied to systems at every
level of meaning and in every field for achieving optimized equifinality.
 General systems theory is about broadly applicable concepts and principles
as opposed to concepts and principles applicable to one domain of
knowledge.

It distinguishes dynamic or active systems from static or passive systems.

Active systems are activity structures and that interact in behaviours and
processes .Passive systems are structures and components that are being
processed. The field is related to systems thinking and systems engineering

History of System Theory

System theory was proposed in the 1940s by the biologist Ludwig von
Bertallanffy and furthered by Ross Ashby .He emphasized that real systems
are open to and interact with their environments and that they can acquire
qualitatively new properties through emergence resulting in continual
evolution.Rather than reducing an entity to the properties of its parts or
elements ,systems theory focuses on the arrangement of and relations
between the parts which connect them into whole. This particular
organization determines a system, which is independent of the concrete
substance of the elements
Thus, the same concepts and principles of organization underlie the
different disciplines providing a basis for their unification. Systems concepts
include : system environment boundary, input output ,process state
,hierarchy, goal directedness and information

Informal
organisation

Output

Input work System,uni

Formal
strategy t,
Enivironmen organisa
individidual
t, resources, tion
history
people
resoy
Applications of System Theory

System dynamics:

System dynamics is an approach to understanding the nonlinear behavior of

complex systems over time using stocks ,flows, internal feedback loops and
time delays

System biology

System biology is a movement that draws on several trends in bioscience

research proponents describe systems biology as a biology based inter
disciplinary study field that focuses on complex interactions in biological
systems claiming that it uses a new perspective .Particularily from the year
2000 onwards ,the biosciences use the term widely and in a variety of
contexts.

System ecology

Systems ecology is an interdisciplinary field of ecology a subset of earth

system science that takes a holistic approach to the study of ecological
systems Systems ecology can be seen as an application of general systems
theory to ecology

Systems engineering

System engineering is an interdisciplinary approach and means for enabling

the realization and deployment of successful systems. It can be viewed as
the application of engineering techniques to the engineering of systems as
well as the application of a systems approach to engineering efforts
Systems Psychology

Systems psychology is a branch of psychology that studies human behavior

and experience in complex systems . It received inspiration from systems
theory ans systems thinking as well as the basics of theoretical work
 UNIT –III

OD PROCESS

THIRD WAVE CONSULTING

The Third wave is a 1980 book by Alvon Toffler . It is the sequence to future
shock and the second in what was originally likely meant to be a trilogy that
was of centuary in 1990.A new addition, revolutionary wealth was published
however in 2006 and may be considered as a major expansion of the third
wave

Key Characteristics of the Third wave society

This section possibly contains original research .Please improve it by

verifying the claims made and adding inline citations

Though the society foreseen is still emerging with the dramatic

transitions of the past two decades several distinguishing features were
posed as characteristic of this new society

The First Wave: Agricultural Revolution

The first wave started as people realized that they could raise crops in the
ground. People stayed in one place .The old the sick and the weak stayed
with the family and we developed treatments for them

Families were extended generations lived on the same

land. their sense of time was cyclical seen as repeated cycles of moons crops
and seasons.

Any product that were produced were custom made

,by hand among the family. Work was done in the home or on the farm, from
which we get the phrase cottage industry. Barter was Medium of exchange

THE FIRST WAVE TRANSISTION

Transitions are gener to amplify the power of our earlier tools are really
painful things . Change does not go smoothly The farmers had conflicts with
the remaining hunter gatherers. sometimes raiding parties would attack the
food stores and the farmers needed armies to protect themselves

Three Innovations set the stage for the second wave

1)Accurate Clocks permitted the coordination of activities to a degree not

possible before

2 )The printing press permitted large scale accurate duplication and

transmission of information across space and time

3)The quest for farm implements led to a new developments in metallurgy

notably iron and steel

THE SECOND WAVE :THE INDUSTRIAL |REVOLUTION

Our tools progressed and we harnessed powerful forces of nature to amplify

the power of our earlier tools

Second wave work involved investment in expensive equipment ,people to

work the machines and a location where all the parts could come together

As people moved from the home to the factory people moved to cities. The
nuclear family became the normative unit

Second wave Transistion

Second wave workers were Specialists to such a degree that +-barter was
no longer practical cash money. cash money became the life blood of the
economy .Banks started dealing with working class

Second wave work was something quite separate from the

house .The pinnacle of success was to have a career a predictable symbiotic
relationship with one employer.
 The Information available to people increased .Printed materials
conveyed information accurately across time and space. Libraries formed
repositories of knowledge and thoughts information was stored in analog
media, including books, photographs ,and audio recordings

THE THIRD WAVE :THE INFORMATION REVOLUTION

The huge companies and military organizations needed to track what they
had, what they were doing and what they were spending .The new tools
amplified our senses and ,memories rather than our strengths. Radar systems
warn us of incoming missiles robot calipers detect tiny variations in ball
bearings

Now that information is abundant we no longer

value older people as repositories of Knowledge

The Third Wave Transistion

The career the social compact between the employer and employee is a
Wistful nostalgia. Employees are responsible for their own careers now
which will involve many changes

Details of the Third Wave

Work is done everywhere at home on the road even in the office Continual
education is the pre-requisite for success. Size doesn’t matter small nimble
companies can compete with gaint bureaucratic companies.Location space
mass doesn’t matter .Time matters dearly and we call the new timeframe
Internet time

Digital Info and Processes

There are two types of information digital and analog .Digital Information
,once in a computer can be whisked anywhere in the world with one click.
It can be rapidly moved without delay and without degradation. Digital
information is faster and more fluid than analog information

Hyper-Organisation
The United states most successful export industry is the entertainment
industry, shipping movies and music around the world. Each film or video
is a unique project developed by a distinct organization, linking people with
an increadable skills .This is hyper organisation

Mass Customization

Mass Customization is the implication that the information gained in a

transistion may be more valuable than the profit from the deal

The One-to-One Future

Customers now interact directly with manufacturers.

Disintermediation

The losers in the new world were the middlemen, the intermediaries.The
buzzword is disintermediation the elimination of all steps between the
producer and consumer

Digital Convergence

In the second wave ,the phone company handled your voice needs and the
electric company handled your energy needs. Since information became
digital your cable tv company can sell you phone service and the electric
company can sell intersnet access

SIX BOX MODEL

Weisbord’s Six-Box Model

A framework developed by Marvin Weisbord, this model is one that can
help you to accurately assess the functioning of your organization. One of
the advantages of using this specific model is its ability to adapt to just
about any business that you happen to be in.
 The model is meant for use ‘across the board’, so you should find it helpful
regardless of your field. The six boxes that are alluded to in the title refer
to the following –

 Purposes
 Structure
 Relationships
 Rewards
 Leadership
 Helpful Mechanisms
To allow you to gain a better understanding of this six-box model and how
it can help you understand your organization, we have highlighted each of
the six points below.

Purposes
This is a very general piece of the puzzle to get started, but it is an
important one nonetheless. You need to understand very specifically what
businesses you are in, and what businesses you want to be in moving
forward.
While that might seem like a somewhat obvious point, it could be a little
more complicated than you think once you get into it. For instance, if you
have developed a customer base that is somewhat outside of the target
market you initially laid out for your products, you might find that your
company is competing in an arena that is slightly unexpected. Business
frequently takes unexpected turns, so stay on top of your organization by
understanding exactly where you are competing and what it takes to win in
those areas.

Structure
Moving on to the next point starts to get into the details of how your
business operates and how it works on a daily basis. The structure of the
organization will have a lot to say about what you are able to produce, and
at what cost you are able to produce it. Who is responsible for doing what
within the company? How is the work that each person is doing going to
contribute to the greater good of selling quality products for low prices to
customers? Structuring your business in a logical way based on the desired
outputs you have in mind is one of the most important things you can do
going forward. Many businesses have been derailed by poor organization
even if they have good products and innovative ideas.
The lesson is clear – don’t take this point for granted. Work hard on your
business structure and you will likely be rewarded for your efforts.

Relationships
Business is a never ending stream of relationships. There are the obvious
relationships between people both within your organization and outside of
it that need to be managed. Also, there are the relationships between your
people and your technologies that need to be successfully managed in
order to achieve optimal outputs.

When you have inevitable conflicts in some of these

relationships – either between people, or between people and machines –
you need to have a clear and concise plan for how those conflicts are going
to be resolved. It isn’t a matter of completely avoid conflict, as conflict is
going to happen one way or another, but it is more a matter of knowing
how to handle it effectively when it arises.
 Healthy relationships are required for business growth, so don’t
sit idle when there are connections that need to be mended.

Rewards
Most people function best when offered some form of reward for their
efforts. Obviously, a pay check is a natural reward in a work setting, but
you often need to go beyond just a salary in order to get the best from your
people.

When you are asking your teams to work hard for the good of the
organization as a whole, those people need to feel invested in some way in
their work. If all of the profits and accolades are going to ownership and
upper management, what motivation is there for the rest of the team to
work hard day in and day out? Creating a structure of worthy rewards is
one of the most important things managers can do to develop a positive
culture that runs from top to bottom in the business.

Leadership
Speaking of a positive culture, leadership is another important piece of the
organizational puzzle. When you have strong leadership in place, it helps
everyone else go about their work each day with a sense of confidence and
purpose.

Of course, it should be noted that strong leadership doesn’t

have to mean ruling the company ‘with an iron fist’. Rather, it is often
better to be an understanding and caring leader, working as a part of the
team rather than being removed from it in a distant corner office.

Helpful Mechanisms
Having in place the technologies and other pieces of the puzzle that make
the organization work is essential to your success. These mechanisms are
certain to change over time as technology improves and markets advance
accordingly, so you will want to stay on top of the things that you are using
to be efficient and competitive. What was once considered to be a ‘helpful
mechanism’ could quickly fall out of date and become a liability to your
business. Don’t just assume that something which was once helpful is
going to remain so for years to come – technology changes quickly, and
those companies that fail to keep up with it will usually wind up looking
up at the competition as it pulls away.
Taking the time to go through the six-box model as it relates to your
organization is a useful exercise that could yield a number of interesting
and revealing discoveries. One of the most common mistakes in business is
assuming that you already know everything there is to know about the way
your business operates and the way it competes in the market.

Unfortunately, that is rarely the case. More likely, you have a lot to learn,
just like everyone else, and the six-box model can help you in that quest.
Work hard on each of the six points in this model and you will come out
on the other side with a sound understanding of how your business works
and what it is you can do to stay competitive over the long run.
Phases of Organization Development

1)Entry and Contracting

2) Sensing and Discovery

3) Diagnosis and Feedback

4) Planning Interventions and Action

5) Evaluation and Closure

As organization development consultants enter organizations to collect

data, diagnose the organization’s needs, design interventions and evaluate
progress, we can also build internal organizational capacity to do the same.
Each phase of the OD process serves a distinct purpose. So let’s see how
this works.

Entry and contracting

Authenticity, presence and empathy are the vital components of the entry
process. During the initial conversations, we build trust by listening non-
judgmentally and offering support .Rather than glossing over or censoring
the issues, this approach allows the underlying concerns and opportunities
to surface. By listening deeply, understanding the client’s issues and
establishing the alliance, we uncover the goals and deeper desires. Desires
take us much deeper than goals. By tapping people’s passions, we get
clarity about personal and organizational expectations. Once we’re
connected with their hearts, we co-create desired outcomes, determine
roles and responsibilities and establish business terms.
Sensing and discovery

While relying heavily on our intuition, we also collect information based

on hard data. Dialogue, surveys, interviews, assessment tools and focus
groups are used both to collect information and build relationships.
Throughout this process, the emphasis on building relationships means
we’re much more likely to generate trust, which helps us get to the heart of
the matter.

Diagnosis and feedback

We come in looking for what works and what we can leverage. Instead of a
pathological approach to diagnosis, we can help members of the
organization identify the life-giving energy in their work experiences and
then discover their needs and wishes. A summarized report of the
information and shared analysis acts as a catalyst for deepening awareness,
inviting choice and stimulating action. Many organizational cultures have a
preference for hard data, a scoring system for analyzing the current
situation and a way to measure progress. When accompanied by anecdotal
data, the impact can be very moving, heart-connecting and inspirational.
Analyzing the data for the client can be highly informative, but isn’t as
empowering as a joint analysis. Collectively, we can explore a gap analysis
between the current situation and the desired situation.

Planning interventions and action

We end up with one-way communication and minimal buy-in unless we

intervene with authentic feedback. Feedback leads to a blueprint for
change and collaborative action planning. Action plans are broken down
into small steps with accountability structures, including who is taking
responsibility and agreed-on dates for completion. Implementation of the
action plan can include a wide range of organization development
interventions: individual or group coaching, training, leadership
development, team building, diversity dialogues and conflict resolution are
some of the processes used to support the change initiative.
Evaluation and closure

The measures of success established at entry are derived jointly. Evaluation

can include fi nancial measures, such as the bottom-line impact (profitability
or return on investment) or stakeholder satisfaction (quality-of-life or
employee retention). Organization development work is an intimate process
that calls for an empowering closure. Instead of celebrating once a year at
the company Christmas party, we advocate for continuous celebration. We
not only celebrate successes; we also celebrate new insights gained from
disappointment or failure. Both provide opportunities for heart connection
and stimulate dialogue that leads to new opportunities

INTRODUCTION OF CHANGE MANAGEMENT

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

business world, most of the organisations are facing a dynamic and change
in business environment. They should either change or die, there is no third
alternative. Organisations that learn and cope with change will thrive and
flourish and others who fail to do so will be wiped out. The major forces
which make the changes not only desirable but inevitable are technological,
economic, political, social, legal, international and labour market
environments. Recent surveys of some major organisations around the world
have shown that all successful organisations are continuously interacting
with the environment and making changes in their structural design or
philosophy or policies or strategies as the need be.

Meaning of Change: Unlike other concepts in organisational behavior, not

many definitions are available to define the term “change”. In very simple
words we can say that change means the alternation of status quo or making
things different.
“The term change refers to any alternation which occurs in the overall work
environment of an organisation.”

To quote another definition “when an organisational system is disturbed by

some internal or external force, change occurs frequently. Change, as a
process, is simply modification of the structure or process of a system. It
may be good or bad, the concept is descriptive only.”

FORCES OF CHANGES

There are a number of factors both internal and external which affect
organisational functioning. Any change in these factors necessitates changes
in an organisation. The more important factors are as follows:

External Forces

External environment affects the organisations both directly and indirectly.

The organisations do not have any control over the variables in such an
environment. Accordingly, the organisation cannot change the environment
but must change themselves to align with the environment. A few of these
factors are:

Technology: Technology is the major external force which calls for change.
The adoption of new technology such as computers, telecommunication
systems and flexible manufacturing operations has profound impact on the
organisations that adopt them.The substitution of computer control for direct
supervision is resulting in wider spans of control for managers and flatter
organisations. Sophisticated information technology is also making
organisations more responsive: Both the organisations and their employees
will have to become more adaptable. Many jobs will be reshaped.
Individuals, who do routine, specialized and narrow jobs will be replaced by
workers who can perform multiple in decision-making. Managements will
have to increase their investment in training and education of the employees
because employees skills are becoming obsolete more quickly Japanese
firms have progressed rapidly because they are very fast in adopting new
technological innovations.

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

the process of rapid change as the needs, desires and expectations of the
customers change rapidly and frequently. Moreover, there is tough
competition in the market as the market is flooded with new products and
innovations everyday new methods of advertising are used to influence the
customers. Today the concept of consumerism has gained considerable
importance and thus, the consumers be treated as the kings.Moreover, the
competition today has some significant new twists; most markets will soon
be international because of decreasing transportation and communication
costs and the increasing export orientation of business.
The global economy will make sure that competitors
are likely to come across the ocean as well as from across town. Successful
organisations will be those who can change in response to the competition.
Organisations that are not ready for these new sources of competition in the
next decade may not exist for long.
Social Changes: Social and cultural environment also suggest some
changes that the organisations have to adjust for. There are a lot of social
changes due to spread of education, knowledge and a lot of government
efforts. Social quality, e.g. equal opportunities to women, equal pay for
equal work, has posed new challenges for the management. The
management has to follow certain social norms in shaping its employment,
marketing and other policies.
Political Forces: Political environment within and outside the country have
an important impact on business especially the transnational corporations.
The interference of the government in business has increased tremendously
in most of the countries. The corporate sector is regulated by a lot of laws
and regulations. The organisations do not have any control over the political
and legal forces, but they have to adapt to meet the pressure of these forces.
In our country, the new economic policy has liberalized the economy to a
large extent. Many of the regulatory laws have been amended to reduce
the interference of the Government in business. An organisation is also
affected by the world politics. Some of the changes in the world politics
which have affected business all over the world are e.g. the reunification of
Germany, Iraq’s invasion of Kuwait and the break of Soviet Union.

Internal Forces

Internal forces are too many and it is very difficult to list them
comprehensively. However, major internal causes are explained as follows:
1.

Nature of the Workforce: The nature of workforce has changed over a

passage of time. Different work values have been expressed by different
generations. Workers who are in the age group of 50 plus value loyalty to
their employers. Workers in their mid thirties to mid forties are loyal to
themselves only. The youngest generation of workers is loyal to their
careersThe profile of the workforce is also changing fast. The new
generation of workers has better educational qualifications; they place
greater emphasis on human values and question
Change in Managerial Personnel: Change in managerial personnel is
another force which brings about change in organisation. Old
managers are replaced by new managers which are necessitated
because of promotion, retirement, transfer or dismissal. Each
manager brings his own ideas and way of working in the
organisation. The informal relationships change because of changes
in managerial personnel. Sometimes, even though there is no change
in personnel, but their attitudes change. As a result, the organisation
has to change in accordingly.Changes in the organisation are more
fast when top executives change. Change in top executives will lead
to important changes in the organisation in terms of organisation
design, allocation of work to individuals, delegation of authority,
installation of controls, etc. All these changes will be necessitated
because every top executive will have his own style and he will like
to use his own ideas and philosophies.
Deficiencies in Existing Management Structure: Sometimes changes are
necessary because of some deficiencies in the existing organisational
structure, arrangement and processes. These deficiencies may be in
the form of unmanageable span of management, larger number of
managerial levels, lack of coordination among various departments,
obstacles , multiplicity of committees, lack of uniformity in policy
decisions, lack of cooperation between line and staff and so on.
However, the need for change in cases goes unrecognized until some
major crisis occurs.

To Avoid Developing Inertia: In many cases, organisational changes

take place just to avoid developing inertia or inflexibility. Conscious
managers take into account this view that organisation should be
dynamic because any single method is not the best tool of
management every time. Thus, changes are incorporated so that the
personnel develop liking for change and there is no necessary
resistance when major changes in the organisation are brought
about.
Change in Managerial Personnel: Change in managerial personnel is
another force which brings about change in organisation. Old
managers are replaced by new managers which are necessitated
because of promotion, retirement, transfer or dismissal. Each
manager brings his own ideas and way of working in the
organisation. The informal relationships change because of changes
in managerial personnel. Sometimes, even though there is no change
in personnel, but their attitudes change. As a result, the organisation
has to change in accordingly. Changes in the organisation are more
fast when top executives change. Change in top executives will lead
to important changes in the organisation in terms of organisation
design, allocation of work to individuals, delegation of authority,
installation of controls, etc. All these changes will be necessitated
because every top executive will have his own style and he will like
to use his own ideas and philosophies.
Deficiencies in Existing Management Structure: Sometimes changes are
necessary because of some deficiencies in the existing organisational
structure, arrangement and processes. These deficiencies may be in
the form of unmanageable span of management, larger number of
managerial levels, lack of coordination among various departments,
obstacles in communication, multiplicity of committees, lack of
uniformity in policy decisions, lack of cooperation between line and
staff and so on. However, the need for change in cases goes
unrecognized until some major crisis occurs.

To Avoid Developing Inertia: In many cases, organizational changes

take place just to avoid developing inertia or inflexibility. Conscious
managers take into account this view that organization should be
dynamic because any single method is not the best tool of
management every time. Thus, changes are incorporated so that the
personnel develop liking for change and there is no necessary
resistance when major changes in the organisation are brought
about.

Level of Change Programmes

The various types of change programmed may be classified into individual

level change, group level change and organizational level change.

Individual Level Change

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

transfer of an employee to a different location or the changes in the maturity
level of a person which occurs over a passage of time. The general opinion
is that change at the individual level will not have significant implications
for the organisation. But this is not correct because individual level changes
will have impact on the group which in turn will influence the whole
organisation. Therefore, a manager should never treat the employees in
isolation but he must understand that the individual level change will have
repercussions the individual.

Group Level Change

Management must consider group factors while implementing, any change,

because most of the organisational changes have their major effects at the
group level. The groups in the organisation can be formal groups or informal
groups. Formal groups can always resist change, for example; the trade
unions can very strongly resist the changes proposed by the management.
Informal groups can pose a major barrier to change because of the inherent
strength they contain. Changes at the group level can affect the work flows,
job design, social organisation, influence and status systems and
communication patterns.

Organisational Level Change

The organisational level change involves major programmes which affect

both the individuals and the groups. Decisions regarding such changes are
made by the senior management. These changes occur over long periods of
time and require considerable planning for implementation. A few different
types or organisation level changes are:

Strategic Change: Strategic change is the change in the very basic objectives
or missions of the organisation. A single objective may have to be changed
to multiple objectives.

2. Structural Change: Organisational structure is the pattern of relationships

among various positions and among various position holders. Structural
change involves changing the internal structure of the organisation. This
change may be in the whole set of relationships, work assignment and
authority structure. Change in organisation structure is required because old
relationships and interactions no longer remain valid and useful in the
changed circumstances.
Process Oriented Change: These changes relate to the recent technological
developments, information processing and automation. This will involve
replacing or retraining personnel, heavy capital equipment investment and
operational changes. All this will affect the organisational culture and as a
result the behavior pattern of the individuals.

People Oriented Change: People oriented changes are directed towards

performance improvement, group cohesion, dedication and loyalty to the
organisation as well as developing a sense of self-actualization among
members. This can be made possible by closer interaction with employees
and by special behavioral training and modification sessions. To conclude,
we can say that changes at any level affect the other levels. The strength of
the effect will depend on the level or source of changead

Parallel Learning Structures

Parallel learning structures is an important foundation of organization

development. These structures are specially created organizational
structures which help in planning and guiding the change programs. The
concept of parallel learning structure was introduced by Dale Zand in 1974
under the name “Collateral Organisation”.The main objective of the
collateral organization is to handle the unstructured problems which the
formal organization cannot solve.

A parallel learning structure is a mechanism which helps in

making innovation process easier in large bureaucratic organizations.In
these structures the forces of inertia, hierarchical communication pattern and
standard ways of dealing with problems discourages learning innovation and
change. The most important characteristic feature of parallel learning
structures is that they acts as a means for learning the way in which the
system can be changed and then leading the change process

Process of Parallel Learning Structures

1) In the first step a structure is developed this structure must be specific
division having coordination of labour

2) This structure performs side by side parallel with the formal hierarchy
and structure

3) Finally this structure increases the organizational learning by developing

and executing the new thoughts and behavior of the employees

Parallel learning structure consists of a steering committee

and many required Working groups which studies the changes that are
required ,gives suggestions For improvement and monitors the change
efforts. some structures also have a Steering committee along with action
groups work groups or implementation Groups.

Atleast one ,members from entry level of hierarchy should be a part of this
structure.It is also very essential to have different norms and procedures
fordeveloping parallel learning structure

Structure of parallel Organization

A parallel Organization differs from a traditional ,hierarchical organization

in that it actively solicits employee input. Its possible and sometimes
advantageous to blend a bureaucratic structure with a parallel structure

Culture

A parallel organization encourages employee involvement and fosters the

idea that everyone is a stakeholder in the business.Managers share
information with employees and employees share their intimate knowledge
of the business at the detail level to demystify processes and suggest
effciences

Processes
Teams in a parallel organization consist of members from different job
functions

Each member provides a unique contribution and represents the interests and
input from their departments. The result can be greater than the sum of its
parts .At a higher level a steering committee composed of high level
managers develops a vision for the organization and the implementation of
attainable goals
 UNIT-IV

OD INTERVENTION

INTRODUCTION

An intervention is a deliberate process by which change is introduced into

peoples’ thoughts, feelings and behaviors. The overall objective of any
intervention is to confront individuals, teams or units of people in a non-
threatening way and allow them to see their self-destructive behavior and
how it affects themselves and colleagues. It might involve several people
who have prepared themselves to talk to the target group that has been
engaging in some sort of self- destructive behavior. In a clear and respectful
way they inform the persons of factual information regarding their behavior
and how it may have affected them.

Organisation Development Intervention

OD interventions refer to various activities which a consultant and client

organisation perform for improving organisational performance through
enabling organisational members better manage their behavior, their work
group, and organisational culture. OD interventions are also referred as OD
techniques or OD strategies as they are designed to accomplish specific
objectives. French and Bell have defined OD interventions as:
“Sets of structured activities in which selected organisational units (target
groups or individuals) engage with a task or a sequence of tasks where the
task goals are related directly or indirectly to organisational improvement.
Interventions constitute the action thrust of organisation development: they
make things happen”
TYPES OF ORGANISATIONAL DEVELOPMENT
INTERVENTIONS

Diagonistic activity : This activity involves collection of all the pertinent

information about the state of the organization. This can be done through
the organization operations records observation of task activities, meetings
with subordinates and interviews with workers and so on .This could
establish the current health of the organization

Team Building : Team Building activities are designed to enhance

effectiveness and satisfaction of Individual who work in groups in order to
improve the effectiveness of the entire group. It is important to recognize
work groups problems as early as possible so that solutions can be applied
Before the problems can do any change

Sensitivity training Sensitivity training refers to a method of changing

behavior through unstructured group interaction .the idea is that in such
training periods the participants can openly express their ideas
,beliefs,perceptions and attitudes and they learn about interpersonal
behavior

Intergroup relationships
Just as there are problems within a group there are problems among two or
more different groups who are interdependent among themselves.The
activities of these groups must be synchronized and coordinated to achieve
the organizational goals and any unhel
Plan and implement organizational development

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
demonstrates that support when communicating and interacting with staff

Case for change

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

for change Acase for change can come from different sources . It can be a
result of data collected on defect rates customer satisfaction survey
employee satisfaction survey, customer comment cards and business goals
as a result of strategic planning session or budget pressures

Employee Involvement

All change efforts should involve employees at some level.Organizational

change whether large or small needs to be explained perform their jobs

Communicating the change

Communicating change should be structured and systematic .Employees are

at the mercy of management to inform them of changes when there is poor
communication and the rumor mill starts spreading rumors about change
which can create resistance to the change

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 .

Follow up
When ever 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

Results of OD Interventions

A large applied research study sought to examine important organisational

outcomes from various psychologically based workplace interventions

Selection and Placement: For the purpose of this research this simply
includes the use of realistic job previews

Training: Enhancing employee performance through learning

Appraisal and Feedback: Giving employees more extensive and frequent

performance feedback

Management By Objectives: Engaging employees to set goals with

management being held accountable for objectives and participating in the
review of their work objectives

Goal Setting :In this research goal setting is defined as “the specification of
difficult but attainable goals for limited but important aspects of job
performance”.

Financial Compensation : Tying monetary rewards to individual team or

organizational performance

CLASSIFICATION OF OD INTERVENTIONS

Diagnostic Activities
Diagonistic Activities fact finding activities designed to ascertain the state of
the system the way things are Avaliable Methods range from projective
devices such as build a collage that represents your place in this organization t
Team building activities
Activities designed to enhance the effective operation of system teams.these
activities focus on task issues such as the way things are done the skills and
resources needed to accomplish tasks the quality of relationship among the team
members and the leader and how well the team gets its job done

Intergroup Activities
Intergroup activities designed to improve the effectiveness of interdependent
groups –group that must work together to produce a common output.They focus
on joint activities and the output of the group as considered as a single system
rather than as two subsystems

Survey Feedback Activities

Survey feedback activities rely on questionnaire surveys to generate information
that is then used to identify problems and oppurtunities.Group analyze the data
regarding their performance and design action plans to correct
problems

Education and training Activities

Activities designed to improve individuals skills abilities and knowledge
.Several activities are available and several approaches possible For example n
be educated in relation or isolation from his or her work group.

Techno Structural or Structural Activities

Techno structural or structural activities designed to improve the effectiveness
of organizational structures and job designs.The activities may take the form of
experimenting with new organization structures and evaluation their
effectiveness in terms of specific goals or devisingnew ways to bring technical
resources to bear on problems

Third party peace making Activities

Activities conducted by a skilled consultant the third party designed to help two
members of an organization manage their interpersonal conflict.these activities
are based on confrontation tactics and an understanding of processes involved
in conflict and conflict resolution
PROCESS CONSULTATION

The concept of process consultation as a mode of inquiry grew out of insight

that to be helpful one had to learn enough about the system to understand
where it needed help and that this required a period of very low-key inquiry
oriented diagnostic interventions designed to have a minimal impact on the
processes being iing onquired about (Schein, 1988). Process consultation as
a philosophy acknowledges that the consultant is not an expert on anything
but how to be helpful and starts with total ignorance of what is actually going
on in the client system. One of the skills, then, of process consulting is to
“access one’s ignorance,” to let go of the expert or doctor role and get
attuned to the client system as much as possible. Only when one has
genuinely understood the problem and what kind of help is needed, can one
begin to recommend and prescribe. Even then it is likely that they will not
fit the client system’s culture and will therefore, not be refrozen even if
initially adopted. Instead a better model of help is start out with the intention
of creating in insider/outsider team that is responsible for diagnostic
interventions and all subsequent interventions. When the consultant and the
client have joint ownership of the change process, both the validity of the
diagnostic interventions and the subsequent change intervention

Edgar Schein’s Process Consultation

One cannot understand a System until one tries to change it. Literature is
filled with the notion that one first diagnoses a system and then intervenes
to change it. This basic model perpetuates a fundamental error in thinking,
an error that Lewin learned to avoid in his own change project sand that led
him to the seminal concept of “action research.” The conceptual error is to
separate the notion of diagnosis from the notion of intervention. That
distinction comes from scientific endeavors where a greater separation
exists between the researcher and the researched, particularly where the
physical processes are assumed to be somewhat independent of the
psychological processes.

The consulting industry has perpetuated this model by proposing as a major

part of most projects a diagnostic, phase in which large numbers of
interviews, questionnaires and observations are made the basis of a set of
recommendations given to the client. Consultants differ on whether they
feel they should also be accountable for the implementation of the
recommendations, but they tend to agree that the consultant’s basic job is
done with a set of recommendations for future intervention. If interviews or
surveys are done, the attempt is made to be as scientifically objective as
possible in gathering the data and to interfere minimally during this phase
with the operation of the organisation. If one cannot understand an
organisation without trying to change it, it would not be possible to make
an adequate diagnosis without intervening. Either consultants using the
classical model are getting an incorrect picture of the organisation, or they
are intervening but are denying it by labeling it “Just Diagnosis”. This risk
forces the diagnostician to think about the nature of the “diagnostic
intervention” and to apply clinical criteria what is safe, rather than purely
scientific criteria of what would seemingly give the most definitive answer.
OD specialist must approach consulting work from a clinical perspective
that starts with the assumption that everything to do with a client system is
an intervention and that, unless intervened, will not learn what some of the
essential dynamics of the system really are starting from that assumption,
there is a need to develop criteria that balance the amount of information
gained from an intervention with the amount of risk to the client from
making that intervention. If the consultant is going to interview all the
members of top management, he must ask whether the amount of
information gained win be worth the risk of perturbing the system by
interviewing everybody and if the answer is “yes,” must make a further
determination of what is to be learned from the reactions of the management
to being interviewed. That is, the interview process itself will change the
system and the nature of that change will provide some of the most important
data about how the system works. The best information about the dynamics
of the organisation will be how the organisation deals with the consultant,
because his or her very presence is de facto an intervention. Yet the focus in
many traditional consultation models is on the “objective data obtained in
the interview” with a reference to how the interviewer about the process and
what could be inferred from the way he or she was received.

‘Human systems cannot be treated with high level of objectivity’ is,

therefore, an important insight that is all too often ignored in our change and
consultation literature. In practice change agents have learned from their
own experience that “diagnostic” activities such as observations, interviews
and questionnaires are powerful interventions and that the process of
learning about a system and changing that system are, in fact, one and the
same. This insight has many ramifications, particularly for the ethics of
research and consulting.

Many researchers and consultants assume that they can “objectively” gather
data and arrive at a diagnosis without having already changed the system. In
fact, the method of gathering data influences the system and therefore, must
be considered carefully.

Coaching and counseling Intervention

Coaching and counseling Interventions : Coaching is used to increases

performance when the employees is already performing the job well and
needs but encouragement to reach grater heights.The employee has
excellent skills in some areas but need support to achieve goals in other areas
of the job

Counseling is used to improve performance when the manager has identified

a problem with the employees current performance that if uncorrected may
derail his or her ability to succeed or even to stay with the organisation

Steps in coaching
1 show confidence in the employees ability and willingness to solve the
problem.Ask the employees to join in with you with the goal of increasing
the employees effectiveness as a contributor to your organization

Describe the performance problem to the employees focus on the problem

or behavior that needs improvement not on the person Use descriptions of
the behavior with examples so that you and employee share meaning

Determine whether issues exist that limit the employees ability to perform
the task or accomplish the objectives

Determine how to remove these barriers .Determine whether the employees

needs your help to remove barriers a keyrole of a manager

Discuss potential solutions to the problem or improvement actions to take.

Ask the employee for ideas on how to correct the problem or prevent it from
happening again

Agree on a written action plan that lists what the employee,the manager and
possibly the HR professional, will do to correct the problem or improve the
situation

TEAM BUILDING

A team as we all knows can be defined as “grouped persons with

complementary skills and who are committed to common goals and
approach for which they hold themselves mutually accountable”.
Collaborative management of work team culture is a fundamental emphasis
of organisational development programs. Generally, the techniques and the
theory of understanding and improving performance come from the
laboratory training movement coupled with research in the area of group
dynamics

Synergy in Team-work
Another important feature of a team is the concept of synergy which
generates in team-work and the understanding of which helps in
developing effective team. The concept of synergy is quite popular
in strategic management and it is defined as follows:

“Synergy is the process of putting two or more elements together to achieve

a sum total greater than the sum total of individual elements separately. This
effect can be described as 2+2=5 effect.”

Thus, synergistic effect is not automatic but depends on the complementarity

of different elements that are put together and the way they interact among
themselves, that is, how a particular element affects another and is affected
by it. Putting the concept of synergy in team-work means members of the
team are complementary to each other and they contribute positively to one
another. In fact, a team is created to undertake a task which requires a variety
of skills and single individual cannot perform that task alone. To the extent,
the complementarity among members is achieved; the team would be
effective, other factors remaining the same.
Social Loafing
Social loafing is antithesis of synergy in team-work which suggests that
people working together on a common task may actually decrease their
individual efforts; team-work does not necessarily spurt group efforts. A
simple phenomenon of social loafing may be observed in a group
assignment to students during their study. In such an assignment, students
find that one or two students do not put their weight for the completion of
the project.
These students may be called loafers (not attaching the same connotation
which is attached with the term loafer in our social phenomenon) who
frequently miss the project group’s meetings, fail to perform their assigned
tasks, and so on. They rely on the fact the more reliable members will
complete the project without their help, and still expect to share the credit
and obtain the same marks from the professor since he will be concerned
with determining who worked and who did not. This phenomenon may
happen in teams in work organizations too. For example, in one experiment,
it was found that individuals’ total efforts were much higher than the group
efforts. Individuals were asked to pull alone as hard as possible on a rope
attached to a strain gauge. They averaged of average output in group efforts
indicates that some members of the group were not contributing as much as
they did individual 138.6 pound of pressure while tugging on the rope.
When the same individuals pulled on the rope of groups of three, group of
eight, the individual average dropped down still lower-68.2 pounds.
Dropping of average output in group efforts indicates that some members
of the group were not contributing as much as they did individually
Effective Team
An effective team is one which contributes to the achievement of
organizational objectives by performing the task assigned to it and
providing satisfaction to its members. In the above paragraph, we have
mentioned that team effectiveness depends on the complementarity of team
members, other factors remaining the same. From this statement, it appears
that there are many factors in an effective team. These factors are skills and
role clarity, supportive environment, super-ordinate goals and team
rewards. Let us see how these factors make a team effective

Supportive Environment: A team loaded with skilled members cannot

perform well if the organizational climate is not supportive for that. If the
organizational climate is not in tune with high achievement, team members
may not show high degree of enthusiasm and they will use only a part of
their skills in performing the jobs. Therefore, managers at higher levels
particularly at the top level should set organizational climate and culture
which enthuse team members to put their best.

Super-ordinate Goals: Super-ordinate goals are those which are above the
goals of a single team or a single individual. An individual works better if
he is able to link how his goal attainment leads to the attainment of a higher-
level goal. These super-ordinate goals, then, serve to focus attention, unify
efforts, and stimulate more cohesive team efforts.
Team Rewards: Team performance depends on how reward is linked to team
performance and how members perceive this linkage. If team members
perceive that reward to contingent on team performance, they will put their
maximum. Rewards of both types- financial and non-financial-should be
taken into consideration. Further, organizations need to achieve a careful
balance between encouraging and rewarding individual initiative and growth
and stimulating full contributions to team success.

Innovative non-financial team rewards for responsible behaviour may

include the authority to select new members of the group, make
recommendations regarding a new supervisor, or propose discipline for team
members.

Team-building Process

Team-building attempts to improve effectiveness of the team by

having team members to concentrate on:

1) Setting goals and priorities for the team.

2) Analyzing how team’s goals and priorities are linked to those of the
organization.
3) Analyzing how the work is performed.
4) Analyzing how the team is working, and
5) Analyzing the relationships among the members who are performing the
job.

Various steps of team-building process are not one-shot action, rather, they
are repetitive and cyclical as indicated by arrows in the figure.

Problem-sensing: There are a number of ways in which problems of a team

can be obtained. Often the team itself defines which aspects of team-building
it wishes to work on. This problem can better be identified in terms of what
is hindering group effectiveness. At this stage, generally most of the
members come forward with their arguments as to what the real problems
are. The view may be quite different ranging from the organizational
problem, group problems to even personal problem. In problem
identification, the emphasis should be on consensus. The consensus-seeking
part of the process necessitates that each person becomes thoroughly aware
and understand clearly the basic concepts of team-development. Much of the
problems may be solved through effective communication and training
sessions.

Examining Differences: The perception of people on an issue differs because of

their differing backgrounds, such as, their value systems, personality and
attitudes. The perception may be brought to conformity through the process
of exercise on perception which involves a number of psychological
exercises particularly on perceptual differences. The role of communication
is important in this context because it will help in clarifying the actual
problems to the members.

Giving and Receiving Feedback: The step of perceiving things and listening
to each other may be relayed back to the members as there is a possibility
that such processes may create tense situation in the group. Often, members
report about the painful feelings that they have at the time of evaluation of
their feelings. The discussion should continue until all members of the team
have commented. The feedback should be given to the members about their
feelings, about the issue, the way people talk about the issue, the stlying with
the topic or going off on tangents, who was talking more or who was talking
less, who was trying to resolve the differences, etc. Such feedback generally
provides members to evaluate the values but at the same time, also provides
opportunity to understand themselves. The concept of Johari Window may
also be applied. This suggests that even people are not fully aware of
themselves.

Developing Interactive Skills: The basic objective of this process is to

increase the ability among the people as to how they should
Following are the examples of constructive and negative behaviours:
Constructive Behaviour
Building: developing and expanding the ideas of others.
Bringing in: harmonizing, encouraging others to participate.
Clarifying: resting, ensuring, understanding, seeking relevant information.
Innovative: bringing in new relevant ideas, information, feelings, etc.

Negative Behaviour
Over talk: interrupting, talking together with speaker.
Attacking: deriding, belittling, criticizing person.
Negative: cooling, cynicism, undermining morale.
At the time of discussion of feedback, people themselves take
assignments to increase specific constructive behaviours and
decrease specific negative behaviours. If this process is adopted
several times, there is a strong possibility that members may learn
constructive behaviours and leave negative behaviours. This is quite
helpful in developing teamwork.
Follow-up Action: This is the final stage in team-building. At this
stage, the total team is convened to review what has been learned and
to identify what the next step should be. Follow-up action also helps
in overcoming the drawback involved at the initial stages of team-
building. It involves deciding who will take care of each area of the
team’s responsibilities, and who will be responsible for team projects
in a group that has not developed a satisfactory division of
responsibility; clarifying and setting differences in perception
concerning responsibility and authority in the team, with complex
division of responsibility and authority among members.
 These attempts bring co-operative and supportive feelings
among people involved in the team functioning. When this exercise is
undertaken at the initial stage, it contributes positively towards the feelings
of the people. However, to encourage and sustain such feelings, management
should take such actions at regular intervals so that members feel reinforced
and sustain their positive behaviour. Such actions will go a long way in
shaping the organizational climate quite conducive to members for their
efficient working

GESTALT APPROACH OF TEAM BUILDING

An approach to team building has been developed by standby M.herman he

is a management and organization development consultant Later the
approach rests on form of psycotheraphy.the concept of psychotherapy was
developed by Frederick s.fritz.It is also lastly called Gestalt approach

This approach is based on the belief that person function as an whole total
organism

Each person of the team possesses positive and negative character ties that
must be owned up to and permitted expression

These goals of this approach are to create awareness, integration,

maturating, authenticity and behavior change

One must come to terms with oneself

One must accept responsibility for ones action

One must experience and live in the here and now

The team members must be able to express their feelings fully both positive
and negeatives

They must “get in touch with where they are” on issues relations
with others and with selvesTeam members must learn to stay with
transaction with others and work them through to resolution rather than
suppressing negative feelings
 UNIT_V

APPLICATIONS OF OD

SOCIO TECHNICAL SYSTEMS

Sociotechnical systems (STS) in organizational development is an

approach to complex organizational work design that recognizes the
interaction between people and technologyin workplaces. The term also
refers to the interaction between society's complex infrastructures and
human behaviour. In this sense, society itself, and most of its substructures,
are complex sociotechnical systems. The term sociotechnical systems was
coined by Eric Trist, Ken Bamforth and Fred Emery, in the World War II era,
based on their work with workers in English coal mines at the Tavistock
Institute in London.[1]

Sociotechnical systems pertains to theory regarding the social aspects

of people and society and technical aspects of organizational structure and
processes. Here, technical does not necessarily imply material technology.
The focus is on procedures and related knowledge, i.e. it refers to the ancient
Greek term techne. "Technical" is a term used to refer to structure and a
broader sense of technicalities. Sociotechnical refers to the interrelatedness
of social and technical aspects of an organization or the society as a
whole.[2]Sociotechnical theory therefore is about joint optimization, with a
shared emphasis on achievement of both excellence in technical
performance and quality in people's work lives. Sociotechnical theory, as
distinct from sociotechnical systems, proposes a number of different ways
of achieving joint optimisation. They are usually based on designing
different kinds of organisation, ones in which the relationships between
socio and technical elements lead to the emergence of productivity and
wellbeing.

Principles
Some of the central principles of sociotechnical theory were elaborated in a
seminal paper by Eric Trist and Ken Bamforth in 1951Template:Human
Relations; Feb1951, Vol. 4 Issue 1, p3-38, 36p. This is an interesting case
study which, like most of the work in sociotechnical theory, is focused on a
form of 'production system' expressive of the era and the contemporary
technological systems it contained. The study was based on the paradoxical
observation that despite improved technology, productivity was falling, and
that despite better pay and amenities, absenteeism was increasing. This
particular rational organisation had become irrational. The cause of the
problem was hypothesized to be the adoption of a new form of production
technology which had created the need for a bureaucratic form of
organization (rather like classic command-and-control). In this specific
example, technology brought with it a retrograde step in organizational
design terms. The analysis that followed introduced the terms "socio" and
"technical" and elaborated on many of the core principles that sociotechnical
theory subsequently became.

Responsible autonomy

Sociotechnical theory was pioneering for its shift in emphasis, a shift

towards considering teams or groups as the primary unit of analysis and not
the individual. Sociotechnical theory pays particular attention to internal
supervision and leadership at the level of the "group" and refers to it as
"responsible autonomy".[4] The overriding point seems to be that having the
simple ability of individual team members being able to perform their
function is not the only predictor of group effectiveness. There are a range
of issues in team cohesion research, for example, that are answered by
having the regulation and leadership internal to a group or team.[5]

These, and other factors, play an integral and parallel role in ensuring
successful teamwork which sociotechnical theory exploits. The idea of semi-
autonomous groups conveys a number of further advantages.
Not least among these, especially in hazardous environments, is the often
felt need on the part of people in the organisation for a role in a small primary
group. It is argued that such a need arises in cases where the means for
effective communication are often somewhat limited. As Carvalho[6] states,
this is because "...operators use verbal exchanges to produce continuous,
redundant and recursive interactions to successfully construct and maintain
individual and mutual awareness...". The immediacy and proximity of
trusted team members makes it possible for this to occur. The coevolution of
technology and organizations brings with it an expanding array of new
possibilities for novel interaction. Responsible autonomy could become
more distributed along with the team(s) themselves.

The key to responsible autonomy seems to be to design an organization

possessing the characteristics of small groups whilst preventing the "silo-
thinking" and "stovepipe" neologisms of contemporary management theory.
In order to preserve "...intact the loyalties on which the small group
[depend]...the system as a whole [needs to contain] its bad in a way that
[does] not destroy its good".[4] In practice,[7] this requires groups to be
responsible for their own internal regulation and supervision, with the
primary task of relating the group to the wider system falling explicitly to a
group leader. This principle, therefore, describes a strategy for removing
more traditional command hierarchies.

Adaptability

Carvajal[8] states that "the rate at which uncertainty overwhelms an

organisation is related more to its internal structure than to the amount of
environmental uncertainty". Sitter in 1997 offered two solutions for
organisations confronted, like the military, with an environment of increased
(and increasing) complexity: "The first option is to restore the fit with the
external complexity by an increasing internal complexity. ...This usually
means the creation of more staff functions or the enlargement of staff-
functions and/or the investment in vertical information systems".[9] Vertical
information systems are often confused for "network enabled capability"
systems (NEC) but an important distinction needs to be made, which Sitter
et al. propose as their second option: "...the organisation tries to deal with
the external complexity by 'reducing' the internal control and coordination
needs. ..

.This option might be called the strategy of 'simple organisations and

complex jobs'". This all contributes to a number of unique advantages.
Firstly is the issue of "human redundancy"[10] in which "groups of this kind
were free to set their own targets, so that aspiration levels with respect to
production could be adjusted to the age and stamina of the individuals
concerned".[4]Human redundancy speaks towards the flexibility, ubiquity
and pervasiveness of resources within NEC.

The second issue is that of complexity. Complexity lies at the heart of many
organisational contexts (there are numerous organizational paradigms that
struggle to cope with it). Trist and Bamforth (1951) could have been writing
about these with the following passage: "A very large variety of
unfavourable and changing environmental conditions is encountered ...
many of which are impossible to predict. Others, though predictable, are
impossible to alter."[11]

Many type of organisations are clearly motivated by the appealing

"industrial age", rational principles of "factory production", a particular
approach to dealing with complexity: "In the factory a comparatively high
degree of control can be exercised over the complex and moving "figure" of
a production sequence, since it is possible to maintain the "ground" in a
comparatively passive and constant state".[11] On the other hand, many
activities are constantly faced with the possibility of "untoward activity in
the 'ground'" of the 'figure-ground' relationship"[11] The central problem, one
that appears to be at the nub of many problems that "classic" organisations
have with complexity, is that "The instability of the 'ground' limits the
applicability ... of methods derived from the factory".[11]

In Classic organisations, problems with the moving "figure" and moving

"ground" often become magnified through a much larger social space, one
in which there is a far greater extent of hierarchical task
interdependence.[11] For this reason, the semi-autonomous group, and its
ability to make a much more fine grained response to the "ground" situation,
can be regarded as "agile". Added to which, local problems that do arise
need not propagate throughout the entire system (to affect the workload and
quality of work of many others) because a complex organization doing
simple tasks has been replaced by a simpler organization doing more
complex tasks. The agility and internal regulation of the group allows
problems to be solved locally without propagation through a larger social
space, thus increasing tempo.

Whole task

Another concept in sociotechnical theory is the "whole task". A whole task

"has the advantage of placing responsibility for the ... task squarely on the
shoulders of a single, small, face-to-face group which experiences the entire
cycle of operations within the compass of its membership."[4] The
Sociotechnical embodiment of this principle is the notion of minimal critical
specification. This principle states that, "While it may be necessary to be
quite precise about what has to be done, it is rarely necessary to be precise
about how it is done".[12]This is no more illustrated by the antithetical
example of "working to rule" and the virtual collapse of any system that is
subject to the intentional withdrawal of human adaptation to situations and
contexts.

The key factor in minimally critically specifying tasks is the responsible

autonomy of the group to decide, based on local conditions, how best to
undertake the task in a flexible adaptive manner. This principle is
isomorphic with ideas like effects-based operations (EBO). EBO asks the
question of what goal is it that we want to achieve, what objective is it that
we need to reach rather than what tasks have to be undertaken, when and
how. The EBO concept enables the managers to "...manipulate and
decompose high level effects. They must then assign lesser effects as
objectives for subordinates to achieve. The intention is that subordinates'
actions will cumulatively achieve the overall effects desired".[13] In other
words, the focus shifts from being a scriptwriter for tasks to instead being a
designer of behaviours. In some cases, this can make the task of the manager
significantly less arduous.

Meaningfulness of tasks

Effects-based operations and the notion of a "whole task", combined with

adaptability and responsible autonomy, have additional advantages for those
at work in the organization. This is because "for each participant the task has
total significance and dynamic closure"[4] as well as the requirement to
deploy a multiplicity of skills and to have the responsible autonomy in order
to select when and how to do so. This is clearly hinting at a relaxation of the
myriad of control mechanisms found in more classically designed
organizations.

Greater interdependence (through diffuse processes such as globalisation)

also bring with them an issue of size, in which "the scale of a task transcends
the limits of simple spatio-temporal structure. By this is meant conditions
under which those concerned can complete a job in one place at one time,
i.e., the situation of the face-to-face, or singular group". In other words, in
classic organisations the "wholeness" of a task is often diminished by
multiple group integration and spatiotemporal disintegration.[14] The group
based form of organization design proposed by sociotechnical theory
combined with new technological possibilities (such as the internet) provide
a response to this often forgotten issue, one that contributes significantly to
joint optimisation.

Sociotechnical systems

A sociotechnical system is the term usually given to any instantiation of

socio and technical elements engaged in goal directed behaviour.
Sociotechnical systems are a particular expression of sociotechnical theory,
although they are not necessarily one and the same thing. Sociotechnical
systems theory is a mixture of sociotechnical theory, joint optimisation and
so forth and general systems theory. The term
sociotechnical system recognises that organizations have boundaries and
that transactions occur within the system (and its sub-systems) and between
the wider context and dynamics of the environment. It is an extension of
Sociotechnical Theory which provides a richer descriptive and conceptual
language for describing, analysing and designing organisations. A
Sociotechnical System, therefore, often describes a 'thing' (an interlinked,
systems based mixture of people, technology and their environment).

Sustainability

Standalone, incremental improvements are not sufficient to address current,

let alone future sustainability challenges. These challenges will require deep
changes of sociotechnical systems. Theories on innovation systems;
sustainable innovations; system thinking and design; and sustainability
transitions, among others, have attempted to describe potential changes
capable of shifting development towards more sustainable directions.[15]

Autonomous work teams

Autonomous work teams also called self-managed teams, are an 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.[16]

Job enrichment

Job enrichment in organizational development, human resources

management, and organizational behavior, is the process of giving the
employee a wider and higher level scope of responsibility with increased
decision-making authority. This is the opposite of job enlargement, which
simply would not involve greater authority. Instead, it will only have an
increased number of duties.[17]

Job enlargement

Job enlargement means increasing the scope of a job through extending the
range of its job duties and responsibilities. This contradicts the principles
of specialisation and the division of labour whereby work is divided into
small units, each of which is performed repetitively by an individual worker.
Some motivational theories suggest that the boredom and alienation caused
by the division of labour can actually cause efficiency to fal

Job rotation

Job rotation is an approach to management development, where an

individual is moved through a schedule of assignments designed to give him
or her a breadth of exposure to the entire operation. Job rotation is also
practiced to allow qualified employees to gain more insights into the
processes of a company and to increase job satisfaction through job
variation. The term job rotation can also mean the scheduled exchange of
persons in offices, especially in public offices, prior to the end of
incumbency or the legislative period. This has been practiced by the German
green party for some time but has been discontinued

Motivation

Motivation in psychology refers to the initiation, direction, intensity and

persistence of behavior.[18] Motivation is a temporal and dynamic state that
should not be confused with personality or emotion. Motivation is having
the desire and willingness to do something. A motivated person can be
reaching for a long-term goal such as becoming a professional writer or a
more short-term goal like learning how to spell a particular word.
Personality invariably refers to more or less permanent characteristics of an
individual's state of being (e.g., shy, extrovert, conscientious). As opposed
to motivation, emotion refers to temporal states that do not immediately link
to behavior (e.g., anger, grief, happiness).

Process improvement
Process improvement in organizational development is a series of actions
taken to identify, analyze and improve existing processes within
an organization to meet new goals and objectives. These actions often
follow a specific methodology or strategy to create successful results.

Task analysis

Task analysis is the analysis of how a task is accomplished, including a

detailed description of both manual and mental activities, task and element
durations, task frequency, task allocation, task complexity, environmental
conditions, necessary clothing and equipment, and any other unique factors
involved in or required for one or more people to perform a given task. This
information can then be used for many purposes, such as personnel
selection and training, tool or equipment design, procedure design (e.g.,
design of checklists or decision support systems) and automation.

Job design

Job design or work design in organizational development is the application

of sociotechnical systems principles and techniques to the humanization of
work, for example, through job enrichment. The aims of work design to
improved job satisfaction, to improved through-put, to improved quality and
to reduced employee problems, e.g., grievances, absenteeism.

Deliberations

Deliberations are key units of analysis in non-linear, knowledge work. They

are 'choice points' that move knowledge work forward. As originated and
defined by Cal Pava (1983) in a second-generation development of STS
theory, deliberations are patterns of exchange and communication to reduce
the equivocality of a problematic issue; for example, for systems
engineering work, what features to develop in new software. Deliberations
are not discrete decisions--they are a more continuous context for decisions.
They have 3 aspects: topics, forums, and participants.
MANAGEMENT BY OBJECTIVES

Management by objectives (MBO) is a strategic management model that

aims to improve the performance of an organization by clearly defining
objectives that are agreed to by both management and employees. According
to the theory, having a say in goal setting and action plans encourages
participation and commitment among employees, as well as aligning
objectives across the organization.

The concept of ‘Management by Objectives’ (MBO) was first given by Peter

Drucker in 1954 (The Practice of Management’)

“Management by objectives (MBO) is a comprehensive management

system based on measurable and participative set objectives. MBO is
now widely practiced all over the world.”

Management by objectives (MBO) has been defined by Weihrich and

Koontz;

The comprehensive managerial system that integrates many key managerial

activities in a systematic manner and that is consciously directed toward the
effective and efficient achievement of organizational and individual
objectives.

Emphasis on management by objective was not initiated or originated by

any single person. Such management has been dictated by the prudence or
common sense of innumerable people. However, certain individuals have
long placed emphasis on management by end results

Features of Management by Objectives

In the light of the above definitions of MBO, the following features of it can
be identified;

It is a technique and philosophy of management.

Objective setting and performance review are made by the participation of

the concerned managers.
Objectives are established for all levels of the organization.

It is directed towards the effective and efficient accomplishment of

organizational objectives.

It is concerned with converting an organizational objective into a personal

objective on the presumption that establishing personal objectives makes an
employee committed which leads to better performance.

Common Elements of a Management by Objectives Program

4 Common Ingredients of an MBO Program are;

Goal specificity,

Participative decision making,

An explicit time period, and

Performance feedback.
1. Goal Specificity

The objectives in MBO should be concise statements of expected

accomplishments. It is not adequate, for example merely to slate a desire to
cut costs, improve service or increase quality.

Such desires need to be converted into tangible objectives that can be

measured and evaluated for instance to cut departmental costs by 8 percent
to improve service by ensuring that all insurance claims processed within 72
hours of receipt, or to increase quality by keeping returns to less than 0.05
percent of sales.

2. Participative Decision Making

In MBO, the objectives are not unilaterally set by the boss and assigned to
employees, as is characteristic of traditional objective setting.

Rather, MBO replaces these imposed goals with participative determined

goals. The manager and employee jointly choose the goals and agree on how
they will be achieved.

3. An Explicit Time Period

Each objective also has a concise time period in which it is to be completed.

Typically the time period is three months, six months, or a year.

4. Performance Feedback

The final ingredients in an MBO program are continuous feedback on

performance and goals that allow individuals to monitor and correct their
own actions.

PROCESS OF MBO

Define Organizational Goals

Goals are critical issues to organizational effectiveness, and they serve a
number of purposes. Organizations can also have several different kinds of
goals, all of which must be appropriately managed.

And a number of different kinds of managers must be involved in setting

goals. The goals set by the superiors are preliminary, based on an analysis
and judgment as to what can and what should be accomplished by the
organization within a certain period.

Define Employees Objectives

After making sure that employees’ managers have informed of pertinent

general objectives, strategies and planning premises, the manager can then
proceed to work with employees in setting their objectives.

The manager asks what goals the employees believe they can accomplish in
what time period, and with what resources. They will then discuss some
preliminary thoughts about what goals seem feasible for the company or
department.

Continuous Monitoring Performance and Progress

MBO process is not only essential for making line managers in business
organizations more effective but also equally important for monitoring the
performance and progress of employees.

For monitoring performance and progress the followings are required;

Identifying ineffective programs by comparing performance with pre-

established objectives,

Using zero-based budgeting,

Applying MBO concepts for measuring individual and plans,

Preparing long and short-range objectives and plans,

Installing effective controls, and

Designing a sound organizational structure with clear, responsibilities and
decision-making authority at the appropriate level.

Performance Evaluation

Under this MBO process performance review are made by the participation
of the concerned managers.

Providing Feedback

The filial ingredients in an MBO program are continuous feedback on

performance and goals that allow individuals to monitor and correct their
own actions.

This continuous feedback is supplemented by periodic formal appraisal

meetings which superiors and subordinates can review progress toward
goals, which lead to further feedback.

Performance Appraisal

Performance appraisals are a regular review of employee performance

within organizations. It is done at the last stage of the MBO process.

PERFORMANCE APPRAISAL

Performance Appraisal is the systematic evaluation of the performance of

employees and to understand the abilities of a person for further growth and
development. Performance appraisal is generally done in systematic ways
which are as follows:

The supervisors measure the pay of employees and compare it with targets
and plans.The supervisor analyses the factors behind work performances of
employees.The employers are in position to guide the employees for a better
performance.

Objectives of Performance Appraisal

Performance Appraisal can be done with following objectives in mind:

To maintain records in order to determine compensation packages, wage
structure, salaries raises, etc.

To identify the strengths and weaknesses of employees to place right men

on right job.

To maintain and assess the potential present in a person for further growth
and development.

To provide a feedback to employees regarding their performance and related

status.

To provide a feedback to employees regarding their performance and related

status.

It serves as a basis for influencing working habits of the employees.

To review and retain the promotional and other training programmes.

Advantages of Performance Appraisal

It is said that performance appraisal is an investment for the company which

can be justified by following advantages:

Promotion: Performance Appraisal helps the supervisors to chalk out the

promotion programmes for efficient employees. In this regards, inefficient
workers can be dismissed or demoted in case.

Compensation: Performance Appraisal helps in chalking out compensation

packages for employees. Merit rating is possible through performance
appraisal. Performance Appraisal tries to give worth to a performance.
Compensation packages which includes bonus, high salary rates, extra
benefits, allowances and pre-requisites are dependent on performance
appraisal. The criteria should be merit rather than seniority.
Employees Development: The systematic procedure of performance
appraisal helps the supervisors to frame training policies and programmes.
It helps to analyse strengths and weaknesses of employees so that new jobs
can be designed for efficient employees. It also helps in framing future
development programmes.

Selection Validation: Performance Appraisal helps the supervisors to

understand the validity and importance of the selection procedure. The
supervisors come to know the validity and thereby the strengths and
weaknesses of selection procedure. Future changes in selection methods can
be made in this regard.

Communication: For an organization, effective communication between

employees and employers is very important. Through performance
appraisal, communication can be sought for in the following ways:

Through performance appraisal, the employers can understand and accept

skills of subordinates.

The subordinates can also understand and create a trust and confidence in
superiors.

It also helps in maintaining cordial and congenial labour management

relationship.

It develops the spirit of work and boosts the morale of employees.

All the above factors ensure effective communication.

Motivation: Performance appraisal serves as a motivation tool. Through

evaluating performance of employees, a person’s efficiency can be
determined if the targets are achieved. This very well motivates a person for
better job and helps him to improve his performance in the future.

Quality of Work Life: it’s Meaning and Definition!

The present era is an era of knowledge workers and the society in which we
are living has come, to be known as knowledge society. The intellectual
pursuits have taken precedence over the physical efforts.
The QWL as strategy of Human Resource Management has assumed
increasing interest and importance. Many other terms have come to be used
interchangeably with QWL such as ‘humanisations of work’ ‘quality of
working life, ‘industrial democracy’ and ‘participative work’.

Some knowledge workers work for more than 60 hours a week. As a result
of this, their personal hobbies and interests clash with their work. Life is a
bundle that contains all the strands together and hence the need to balance
work life with other related issues.’

One must have both love and work in one’s life to make it healthy. Gone are
the days when the priority of employees used to be for physical and material
needs. With the increasing shift of the economy towards knowledge
economy, the meaning and quality of work life has undergone a drastic
change.

Meaning:

Quality of work life (QWL) refers to the favourableness or unfavourableness

of a job environment for the people working in an organisation. The period
of scientific management which focused solely on specialisation and
efficiency, has undergone a revolutionary change.

The traditional management (like scientific management) gave inadequate

attention to human values. In the present scenario, needs and aspirations of
the employees are changing. Employers are now redesigning jobs for better
QWL.

Definitions

1. “QWL is a process of work organisations which enable its members at all

levels to actively; participate in shaping the organizations environment,
methods and outcomes. This value based process is aimed towards meeting
the twin goals of enhanced effectiveness of organisations and improved
quality of life at work for employees. ”

“QWL is a way of thinking about people, work and organisations, its

distinctive elements are (i) a concern about the impact of work on people as
well as on organisational effectiveness, and (ii) the idea of participation in
organisational problem-solving and decision making. ” —Nadler and
Lawler

3. “The overriding purpose of QWL is to change the climate at work so that

the human-technological-organisational interface leads to a better quality of
work life.”

-Luthans

Quality of work life involves three major parts:

1. Occupational health care:

Safe work environment provides the basis for people to enjoy his work. The
work should not pose health hazards for the employees.

2. Suitable working time:

Companies should observe the number of working hours and the standard
limits on overtime, time of vacation and taking free days before national
holidays.

3. Appropriate salary:

The employee and the employer agree upon appropriate salary. The
Government establishes the rate of minimum salary; the employer should
not pay less than that to the employee. Work represents a role which a person
has designated to himself. On the one hand, work earns one’s living for the
family, on the other hand, it is a self-realization that provides enjoyment and
satisfaction.
Work-Life Quality — defined, as the balance between an employee’s work
demands and outside interests or pressures — is a long-standing but ever-
evolving area of corporate social responsibility. Some organizations view
QWL as important, but do not formally link it to their strategic or business
plans.

Nature and Scope of Quality of Work Life:

Quality of work life is the quality of relationship between employees and

total working environment.

A Great Place to work is where “You Trust the people you work for, have
pride in what you do, and enjoy the people you work with.”

Quality of work life represents concern for human dimensions of work and
relates to job satisfaction and organisational development.

The following aspects improve the QWL:

1. Recognition of work life issues:

Issues related to work life should be addressed by the Board and other
important officials of the company like why people are not happy, do they
need training, why employee morale is poor and numerous other issues. If
these are addressed properly, they will be able to build, “People-Centred
Organisations”.

2. Commitment to improvement:

QWL can be improved if the staff is committed to improvement in

productivity and performance. This issue can be taken by the board through
staff recognition and support programmes. Board should prepare QWL
reports on periodic basis to boost the system. They can also introduce reward
system which will be of help to them.

3. Quality of work life teams:

Board members should form the combined team of managers and workers
and all the issues and common themes must be identified

Work Life Teams = Managers + Staff

All issues must be addressed like loss of morale, lack of trust, increased
intensity of work, reward, recognition etc. and commonly, managers and
staff should arrive at solutions.

4. Training to facilitators:

Both the leader and staff can assess the job requirement and decide jointly
what type of training is required to improve the quality of work life

5. Conduct focus groups:

Formation of focus groups can affect the QWL and discuss the questions in
a positive way like:

(a) What brought you here today?

(b) What do you feel are the top three issues that affect your quality of work
life?

(c) What do you want the organisation should do for you?

(d) Do you want company to increase the salary, etc.

6. Analyze information from focus group:

After the formation of focus groups and their discussion on different issues
and collection of information, the information should be analysed to give
right direction to organisational activities.

7. Identify and implement improvement opportunities:

It is important to identify and implement improvement opportunities like

communication, recognition and non-monetary compensation. Improving
support structure, constant review of reward and recognition system etc.
would help in formulating communication strategies, focusing on linkages
between managers and staff.
8. Flexible work hours:

The diverse work force of today does not want to work for fixed hours or
days. They want flexibility in their work schedule so that professional and
personal life can be managed together.

Importance of Quality of Work Life:

Many companies find that paying attention to the needs of employees can
benefit the company in terms of productivity, employee loyalty and
company reputation.

QWL is important because of the following reasons:

1. Enhance stakeholder relations and credibility:

A growing number of companies that focus on QWL improve their

relationships with the stakeholders. They can communicate their views,
policies, and performance on complex social issues; and develop interest
among their key stakeholders like consumers, suppliers, employees etc.

2. Increase productivity:

Programmes which help employees balance their work and lives outside the
work can improve productivity. A company’s recognition and support —
through its stated values and policies — of employees’ commitments,
interests and pressures, can relieve employees’ external stress.

This allows them to focus on their jobs during the workday and helps to
minimize absenteeism. The result can be both enhanced productivity and
strengthened employee commitment and loyalty.

3. Attraction and retention:

Work-life strategies have become a means of attracting new skilled

employees and keeping existing ones satisfied. Many job seekers prefer
flexible working hours as the benefit they would look for in their job. They
would rather have the opportunity to work flexible hours than receive an
additional increment in annual pay.

a. More employees may stay on a job, return after a break or take a job with
one company over another if they can match their needs better with those of
their paid work.

b. This results in savings for the employer as it avoids the cost of losing an
experienced worker and recruiting someone new.

c. Employers who support their staff in this way often gain loyalty from the
staff.

4. Reduces absenteeism:

a. Companies that have family-friendly or flexible work practices have low

absenteeism. Sickness rates fall as pressures are managed better. Employees
have better methods of dealing with work-life conflicts than taking
unplanned leave.

b. Workers (including the managers) who are healthy and not over-stressed
are more efficient at work.

5. Improve the quality of working lives

a. Minimising work-life role conflict helps prevent role overload and people
have a more satisfying working life, fulfilling their potential both in paid
work and outside it.

b. Work life balance can minimise stress and fatigue at work, enabling
people to have safer and healthier working lives. Workplace stress and
fatigue can contribute to injuries at work and home.

c. Self-employed people control their own work time to some extent. Most
existing information on work-life balance is targeted at those in employment
relationships. However, the self-employed too may benefit from maintaining
healthy work habits and developing strategies to manage work flows which
enable them to balance one with other roles in their lives.

6. Matches people who would not otherwise work with jobs:

a. Parents, people with disabilities and those nearing retirement may increase
their work force participation if more flexible work arrangements are made.
Employment has positive individual and social benefits beyond the financial
rewards.

b. Employers may also benefit from a wider pool of talent to draw from,
particularly to their benefit when skill shortages exist.

7. Benefiting families and communities:

a. In a situation of conflict between work and family, one or other suffers.

Overseas studies have found that family life can interfere with paid work.
QWL maintains balance between work and family. At the extreme, if family
life suffers, this may have wider social costs.

b. Involvement in community, cultural, sporting or other activities can be a

benefit to community and society at large. For instance, voluntary
participation in school boards of trustees can contribute to the quality of
children’s education.

While such activities are not the responsibility of individual employers, they
may choose to support them as community activities can demonstrate good
corporate citizenship. This can also develop workers’ skills which can be
applied to the work place.

8. Job involvement:

Companies with QWL have employees with high degree of job involvement.
People put their best to the job and report good performance. They achieve
a sense of competence and match their skills with requirements of the job.
They view their jobs as satisfying the needs of achievement and recognition.
This reduces absenteeism and turnover, thus, saving organisational costs of
recruiting and training replacements.

9. Job satisfaction:

Job involvement leads to job commitment and job satisfaction. People

whose interests are protected by their employers experience high degree of
job satisfaction. This improves job output.
10. Company reputation:

Many organizations, including Governments, NGOs, investors and the

media, consider the quality of employee experience in the work place when
evaluating a company. Socially responsible investors, including some
institutional investors, pay specific attention to QWL when making
investment decisions

TOTAL QUALITY MANAGEMENT

Meaning of TQM

W. Edwards Deming, Armand V. Feigenbaum and Joseph M. Juran jointly

developed the concept of TQM. Initially, TQM was originated in the
manufacturing sector but it could be applied to all organizations. The
concept of TQM states that every employee works towards the improvement
of work culture, services, systems, processes and so on to ensure a
continuing success of the organization. TQM is a management approach for
an organization, depending upon the participation of all its members
(including its employees) and aiming for a long-term success through
customer satisfaction. This approach is beneficial to all members of the
organization and to the society as well.

Definition of TQM

Total Quality Management is defined as a customer-oriented process and

aims for continuous improvement of business operations. It ensures that all
allied works (particularly work of employees) are toward the common goals
of improving product quality or service quality, as well as enhancing the
production process or process of rendering of services. However, the
emphasis is put on fact-based decision making, with the use of performance
metrics to monitor progress.

The key principles of Total Quality Management

Commitment from the management:

Plan (drive, direct)

Do (deploy, support, and participate)

Check (review)

Act (recognize, communicate, revise)

Employee Empowerment

Training

Excellence team

Measurement and recognition

Suggestion scheme

Continuous Improvement

Systematic measurement

Excellence teams

Cross-functional process management

Attain, maintain, improve standards

Customer Focus

Partnership with Suppliers

Service relationship with internal customers

Customer-driven standards

Never compromise quality

Benefits of Total Quality Management

The benefits arising from the implementation of a Total Quality

Management in an organization are:

This will increase the awareness of quality culture within the organization.

A special emphasis on teamwork will be achieved.

TQM will lead to a commitment towards continuous improvement.

Essential requirements for successful implementation of TQM

Commitment: Quality improvement (in all aspect) must be everyone’s job

in the organization. An apparent commitment from the top management,
breaking down the barriers for continuous quality improvement and steps
required to provide an environment for changing attitudes must be provided.
Training and support for this should be extended.

Culture: There should be proper training to effect the changes in attitude

and culture.

Continuous Improvement: Recognize improvement as a continuous

process, and not merely a one-off program.

Customer Focus: Perfection in service with zero defectives and full

satisfaction to end-user whether it’s internal or external.

Control: Ensure monitoring and control checks for any deviation from the
intended course of implementation.

Plan, Do, Check, Act

This also referred to as the PDCA cycle.
Planning Phase: This phase is the most crucial phase of total quality
management. Under this phase, employees have to come up with their
respective queries and problems which need to be addressed. The employees
apprise the management of different challenges which they are facing in
their day to day operations and also analyze the root cause of the problem.
They need to do the required research and collect significant data which
would help them find solutions to all the problems.
Doing Phase: In this phase, a solution for the identified problems in the
planning phase is developed by the employees. Strategies are devised and
implemented to crack down the challenges faced by employees. The
efficiency and effectiveness of solutions and strategies are also evaluated in
this stage.
Checking Phase: Under this phase, a comparison analysis of before and
after is done in order to assess the effectiveness of the processes and measure
the results.
Acting Phase: This is the last phase of the cycle, in this phase employees
document their results and prepare themselves to address other problems.

Beliefs about Total Quality Management

Following are the universal Total Quality Management beliefs:

Satisfaction of the customer/owner is the measure of quality.

Everyone is an owner.

Continuous Quality improvement must be there.

Analysis of the processes is the key to quality improvement.

Constant TQM is not possible without consistent, active and enabling

leadership by managers elat all levels.
It is important to incessantly improve quality of the products and services
which we are supposed to provide to our customers/owners

SELF MANAGED TEAMS

Self Managed teams have grown rapidly in popularity following their

introduction

In the 1960s Around 80 percent of companies in the fortune 1000 and 81

percent of manufacturing companies use self managed teams within their
organizational structure .Companies favor self managed teams as they offer
cost savings and increased productivity ,if implemented effectively however
,self managed teams aren’t the right fit for every company .The best
performing self managed teams are found in companies where the
organizational culture clearly supports decision making by employees

A Self Managed team is a group of employees that’s

responsible and accountable for all or most aspects of product or delivering
a service. Traditional organizational structures assign tasks to employees
depending on their specialists skills or the functional department within
which they work

Benefits

Self Managed teams have greater ownership of the tasks they perform and
the end product or service they deliver. Self –Managed teams tend to be less
costly and more productive than employees working within a traditional
hierarchical structure because the team structure because the team performs
both technical and management tasks. Team members may also fill in for
each other to cover holidays and absences.

Disadvantages

Although a cohensive self managed team may create a sense of trust and
respect between team members ,overly cohensive teams can lead to
“groupthink” Team members are more likely to conform to team norms than
raise issues that may upset other team members. This may lead to reduced
effort or stifled innovation

Leading a Self-Managed Team

Although self managed teams are autonomous in terms of how they manage
and carry out their work. They still require guidance from leaders within the
organizational hierarchy. External leaders provide the link between the
wider organization and self managed teams empowering the team and
advocating on its behalf