Unit III ORGANISATION CULTURE

Meaning:

Organization culture is the basic pattern of shared assumption,
values and beliefs considered to be the correct way of thinking about and acting on
problems and opportunities facing the organization. O Reilly has defined organizational
culture as organizational culture is the set of assumptions, beliefs, values and norms that
are shared by an organizations members.

Elements of culture
Assumptions, beliefs values and norms are known as abstract elements of the
culture. Externally oriented characteristics like products, buildings, and dresses etc.,
which are known as material elements of the culture.
Assumptions represent the deepest part of organizational culture because they are
unconscious and taken for granted. Assumptions are the shared mental models, the broad
worldviews or theories in use that people rely on to guide their perceptions and
behaviours.
Beliefs represent the individuals perceptions or reality values are more stable long
lasting beliefs about what is important. They help us define what is right or wrong or
good or bad in the world.
Norms means informal rules and expectations norms guide the way in which people
behave
Vijay Sathe has exemplified some common things to demonstrate the compound of
organizational culture.
(i) shared things (e.g.) the way people dress)
(ii) shared saying (e.g.) lets go to work)
(iii) share actions( e.g. a service oriented approach)
(iv) shared feelings ( e.g. hard work is not rewarded here)

Characteristics of organizational culture

There are seven primary characteristics that aggregately capture the essence of an
Organizations culture:
1. Innovation and Risk taking - the degree to which employees are encouraged to be
innovative and risk taking
2. Attention to detail - the extent to which employees are expected to exhibit
precision, analysis and attention to detail.
3. Outcome orientation - the degree to which management focuses on results or
outcomes rather than on techniques and process used on achieving those results or
outcomes.
4. People orientation - the degree to which management decisions take into
consideration the effects of outcomes on people of the organization.
5. Team orientation - the degree to which various organizational activities are
organized on team basis rather then individual basis.
6. Aggressiveness - the extent to which people in the organization are aggressive and
competitive rather than easy going.
7. Stability - the extent to which the organization emphasizes in maintaining status
quo rather than change.

Levels of culture

According to Edger Schein organization culture has three levels. These are (i)
artifacts (ii) shared values and (iii) common assumptions

Artifacts (Method of socialization)

Artifacts are the observable symbols and signs of an organizations culture such
as the way visitors are greeted the physical layout etc. The categories of artifacts are

(a) Organizational heroes: The behavior of top management and their leadership
styles have the impact on the behavior of organizational members. These leaders
become the role models and they represent what the company stands for and
reinforce the values of the culture.
(b) Rituals and ceremonies: Rituals are the programmed routines of daily
organizational life that dramatize the organizations culture Rituals include how
visitors are greeted, how often senior executives visit subordinate, how people
communicate with each other, and how much time employees take for lunch.
Ceremonies are planned activities conducted specifically for the benefit of an
audience. This would include publicity rewarding or punishing employees or
celebrating the lunch of new product.
(c). Stories and Legends stories and legends about past corporate incidents serve as
powerful social prescriptions of the way things should be done. They convey
valuable knowledge throughout the organization by providing human relation to
corporate expectations, individual performance standards and the like stories
create emotions in listeners, which tends to improve their money of the lesson
within the story.
(d.) Physical structures and symbols: Building, Desks, Chairs, office space and
wall hangings are few of the items that might convey cultural meaning symbols
Communicate organizational culture inspection messages. Certain code of dress
or a company logo can reflect its values and orientations.
(e) Organizational language: The language of the workplace species about the
companys culture how employees address co workers describe customers
express angle are all verbal symbols of cultural values.

2. Shared values

Values are the second and deeper level of culture and the reflected in the way
individuals actually behave values are those principles and qualities that shape our
thinking and behaviour. Values reflect a persons underlying belief as to what should be
and what should not be.

Values can be classified into Instrumental values and Terminal values. Instrumental
values define such enduring beliefs that certain behaviour is appropriate at all times
irrespective of the objectives or outcomes. In case of terminal values, the objectives
become more important than the appropriateness of the behaviour in achieving such
objectives.

3. Common assumption:
Assumptions are at the deepest and most fundamental level of cultural
diagnosis. The common assumptions can be traced to larger social and cultural values
held by a particular society or country. For example in American the emphasis is mostly
on individualized achievement while in Japan, is more on collective achievement.

Types of Organizational culture

1. Dominant culture and sub culture

Dominant culture expresses the core values that are shared by majority of
members of the organization. The term core values refer to the primary or the dominant
values that are accepted throughout the organization. It is the macro view of the culture
that gives an organization its distinct personality.
Sub culture expresses a set of values that are shared by the members of a
division or department. Sub cultures typically are a result of problems or experiences
that are shared by members of a particular department these subcultures can form
vertically or horizontally.

2. Strong Vs Weak culture

A strong culture is charaterised by the organisations core values being
intensely held and widely share. More intensely the core values are shared, the
stronger the culture is. The degree of shared ness depends on two factors:
Orientation and rewards.

When the organizations core values are not shared with high degree of
intensity it forms week culture weak culture is usually characterized by high turnover
of employees.

How culture forms:

The original culture is derived from the founders philosophy.
This, in turn strongly influences the criteria use in hiring. The actions of the current
top management set the general climate of what is acceptable behaviour and what is
not. How employees are to be socialized will depend both on the degree of success
achieved in matching the values of new employees with organizations value in the
selection process and top management preference for socialization methods.
















Functions of culture

Culture performs a number of functions within an organization. They are

1. Boundary defining role:
Culture helps to create distinction between one organization and others.

2. Sense of Identity:
Culture helps to create sense of Identify for the members of organizations.

3. Generation of commitment: Culture encourages the members of the
organization to give priority to organizational interest over and above their
personal interest.

4. Social system stability: Culture enhances social stability culture is also known as
the social glue. It provides a list of social dos and donts for the employees.

5. Sense making and control mechanism: Culture helps in making sense and
control mechanism that guides and shapes the attitudes and behaviours of the
employees Thus culture is beneficial to the organization as well as to the
employees

Dysfunctions of culture

Culture can be proved to the liability to the organization.

1. Barrier to change
Consistency of employee behaviour is an asset to the organization, when it has
a stable environment when the organization is dynamic it will prove to be liable
as the employees will try to resist in the environment.

Philosophy of
Organizations
founders
Organis
ational
Culture
Selection
Criteria
Socialisation
Top
Manage
ment
2. Barrier to diversity: Strong cultures put a lot of pressure on the employees to
confirm to the accepted values and styles of the organization.

3. Barrier to mergers and acquisition: Cultures can act as barriers to mergers and
acquisition. Favourable financial statements or product lives may be initial
alteration at the time of acquisition but another important factor to be considered
is how well the cultures of the two organization match with each other.

Change in organizational culture

The following conditions must be present then only a cultural change can taken
place.
1. A dramatic crisis: Any dramatic crisis in the organization like a major
financial set back loss major customer or technological break through by a
company may force the management to look into the relevance of the exercise.
2. New top leadership: If some top executives leave the organization and new
leadership takes over, they may provide an alternative set of key values or a
new culture.
3. Young and small organization: when the organization is new and its size is
small it, will be easier for the management to change the culture.
4. Weak culture: weak culture is more vulnerable to change than strong ones.

How to keep the culture alive

The following practices may used to sustain the culture in the organization.

1. Selection:

Standardised procedures should be used to hire right people for right job. At
the interview, the candidates whose personal styles and values do not fit with the
organizations culture must be screened out. Thus selection helps in sustaining culture by
identifying the candidates who can culturally match the organization culture.

2. Top Management:

The actions of top management have major impact on the organizations
culture. Through what they say and how they behave senior executives establish norms.

3. Socialisation:

The process that adapts employees to the organisations culture is
socialization. Socialisation can be conceptualized as a process made up of three stages.
Pre arrival, encounter and metamorphosis.



(i) Pre arrival:
This stage comprises all the learning that occurs before a new member joins the
organization.

(ii) Encounter:
Upon entry into the organizations the new employees enters this state here the
individual informs with the realities of the situation in terms of his job and the job
performance environment such as superior peers subordinates and organizational culture.
It the expectations are similar with realities he adapts the organization culture quickly
otherwise.

Matching people with culture:

Goffee and Jones provide some interesting insights on different organizational
cultures and guidance to prospective employees. They have identified four distinct
cultural types.

The two dimensions underlying organizational cultural are:

(i) Sociability:

It is a measure of friendliness. High sociability means people to kind things
for one another without expecting something in return. Sociability is consistent with a
high people orientation high team orientation and focus on process rather than outcomes.
(ii) Solidarity.

It is measure of task orientation. Solidarity is consistent with high attention
and detail and high aggressiveness.

1. Net worked culture (High on sociability low on solidarity.

These organization views members as family and friends people know and like each
other. People willingly give assistance to others and openly share information. The
negative aspect associated with this culture is the focus on friendship can lead to
tolerance for poor performance.

2. Mercenary culture (low on sociability, High on solidarity)

These organisations are strictly goal focused. People are intense and determined to
meet goals. Mercenary cultures are not just about winning; they are about destroying the
enemies the negative aspect of this culture is that it can lead to inhumane treatment on
low performers.




3. Fragmented culture (Low on sociability low on solidarity)

These organizations are made up of individualists. Commitment is first and
foremost to individual members and their job tasks. In fragmented cultures employees
are judged solely on their productivity and their and absence of collegiality are the major
negatives of these culture.
Communal Culture (High on sociability, high on solidarity): This category values
both friendship and performance. Leaders of these cultures tend to be inspirational and
charismatic, with a clear vision of the organistions future. The negative aspect of this
culture is that it often consumes once total life. The charismatic leader frequently looks to
create disciples rather than followers.

Impact of organizational culture:

Organisational culture, being unique and distinctive prescribes some specific
modes of behaviour for its members. Though such behavioural processes may have
different dimensions, they ultimately create impact an objective setting, work ethic,
motivational pattern and organizational processes.

1. Objective setting: Culture moulds people and people are the basic building blocks of
the organization. Therefore it must reflect the objective of its member. Particularly those
who are the key decision makers.

2. Work Ethic: Ethic relates to conformity to the principles of human conduct. Work
ethic in an organization is derived from is culture. Thus organizational culture
determines the ethical standards for the organization as a whole and its individual
members.

3. Motivational patterns:

Culture determines the way people approach their jobs and even life in general. If
organizational culture is geared towards achievement, people will find it quite motivating
and put their outmost energies for the work.

4. Organisational processes:

Various organizational processes like planning, decision making, controlling etc, are
determined by the organizational culture because these processes are carried out by the
people in the organization.




****


Unit IV Organisational change

Meaning Forces for change Resistance to change Types and forms of change
Evolutionary and Revolutionary change Change process Organisation Development
HR functions and Strategic change management Implications for practicing
managers.
Meaning
The term change refers to an alteration in a system whether physical, biological or
social. Thus, organisational change is the alteration of work environment in organisation.
Change as a process, is a simple modification of the structure or process of a system.
Organisational change may have following features:
1. Change results from the pressure of both internal and external forces.
2. When change occurs in any part of the organisation, it disturbs the old equilibrium
necessitating the development of a new equilibrium.
3. Any change may affect the whole organisation.
4. Change will affect the various parts of the organisation in varying rates of speed
and degrees of significance.
5. Organisational change is a continuous process.
6. Change may be reactive or proactive.
Forces for Change / Factors in Organisational Change
The various factors that necessitate organisational change may be grouped into
two categories: External and Internal.
A. External Factors
Each organisation has goals and responsibility related to others in its environment.
Changes in social, political, economic, technological and legal environment force
organisations to change themselves. The change in various environmental factors
necessitating changes in the organisation are explained below:
1. Technological Change: When there is a change in technology in the
organisations environment, the organisation has to adopt new technology.
Otherwise it will become less cost effective and its competitive position
weakens. When the organisation adopts a new technology, it has its impact on
organisation structure, organisational processes and behaviour of people. For
example, computers and automation have made significant impact on
organisational functioning.
2. Changes in Marketing Conditions: There may be two types of forces which
may affect the competitive position of an organisation other organisations
supplying the same products and buyers who are buying the product. Any change
in these forces may require suitable changes in the organisation. For example,
liberalization forced many Indian organisations to realign themselves with the
new situation. Similarly, there may be changes in buyers in terms of their needs,
liking disliking and income disposal for a product. These changes force the
organisations to bring those products which meet buyers requirements.
3. Social Changes: Social changes reflect in terms of peoples aspirations, their
needs and their way of working. Social changes have taken place because of the
several forces like level of education, urbanization, feeling of autonomy and
international impact due to new information sources.
4. Political and Legal Changes: political and legal factors broadly define the
activities which an organisation can undertake and the methods which will be
followed by it in accomplishing those activities. Any change in these political and
legal factors may affect the organisational operation.
B. Internal factors:
Any Change in organisations internal factors may also necessitate change. Such a
change is required because of two reasons:
1. Change in Managerial Personnel: Old managers are replaced by a new manager
which is necessitated because of retirement, promotion, transfer or dismissal.
Each new manager brings his own ideas and way of working in the organisation.
Attitudes of personnel change even though there is no change in them. The result
is that an organisation has to change accordingly.
2. Deficiency in Existing Organisation: Sometimes, changes are necessary because
of deficiency in the present organisational arrangements and processes. These
deficiencies may be in the form of unmanageable span of management, large
number of managerial levels, and lack in co-ordination between various
departments, obstacles in communication, lack of uniformity in policy decision
and so on.

Resistance to Change is an attitude or behaviour that shows unwillingness to make or
support a change. People tend to resist many types of changes because new habits or
sacrifices are required. When change is minor and within the scope of correcting
programme, adjustment is fairly routine, but when a change is major or unusual, more
serious upsets may occur. This leads to general proposition that people and their social
systems will often resist change in organisations. There are two sides of resistance as a
cost and as a benefit.
Resistance as a Cost
If people resist changing, the organisation may not be able to introduce new
phenomena in order to adopt environmental requirement. One example of Bajaj auto Ltd.
is relevant here. In order to increase its manufacturing capacity, the company procured
land near its old plant site but later shifted the new plant site away from the old plant
because of resisting work culture of the old plant.
Resistance as a Benefit
On the other hand, it provides a benefit to the organisation and its change agent:
resistance by some members of the organisation provides an opportunity to the change
agents to weigh the pros and cons of introducing change more carefully. While
introducing a change emphasises only its positive side; resistance to change emphasizes
on negative side; the reality lies in between. Thus, resistance to change provides help in
managing change in two ways:
1. It may signal the need for more effective communication about the
meaning and purpose of a change.
2. It also highlights real inadequacies in the proposed change and suggests
better ways for developing and introducing change.
Factors in Resistance to Change
People tend to evaluate the effect of change individually but they express it
through group in collective form. Therefore, the reasons underlying resistance to change
may be identified at individual and group level.
A. Individual Resistance
There are many factors operating at the individual level which are responsible for
resistance. They are i.e., economic, psychological and social factors.
1. Economic Factors: People feel attached to the organisation for satisfying their
economic needs physiological, job security, etc., over other needs. People may feel that
they will be affected in the following ways:
(i) Skill Obsolescence: A change is generally meant for better methods of working
which may involve new techniques, technology, etc., whenever people feel that new
technology poses a threat of replacing or degrading them, they simply resist such a
change. When computer was introduced, it attracted lot of resistance because of this
reason.
(ii) Fear of Economic Loss: A change may reduce job options and turn into
technological unemployment. This feeling is created because people feel that those
who can match the new requirements will be better off than those who cannot match.
(iii)Reduced Opportunity for Incentives: Whenever there is change, people may
feel that they will have lower opportunity to earn incentives and bonus as the new
system requires additional skills.
2. Psychological Factors: Psychological factors are based on peoples emotions,
sentiments and attitudes towards change. Major psychological factors responsible for
resistance are:
(i) Ego Defensiveness: A change may affect the ego of the people and in order to
defend their ego, people resist change.
(ii) Status Quo: People want status quo, that is, they do not want any disturbance
in their existing equilibrium of life and work pattern. The change will disturb
such equilibrium and people have to obtain another equilibrium which is a
painful exercise. Therefore, everyone tries to avoid it.
(iii) Low Tolerance for Change: Some people have very low level of tolerance
for change and these people resist any new idea.
(iv) Lack of Trust in Change Agent: If people have low degree of confidence in
the change agent (the person who initiates change), they show resistance to
change efforts. This is the reason why labour union resists change initiated by
management.

(v) Fear of Unknown: The change will bring results in future which are always
not certain. This lack of certainty creates anxiety and stress in the minds of
people and they want to avoid it.
3. Social Factors: People from their own social groups at the workplace for the
satisfaction of their social needs. To the extent the satisfaction of these needs is affected
by a change, people resist it. The major factors causing resistance to change are:
(i) Desire to Maintain Existing Social Interaction: People desire to maintain
existing social interaction since it is a satisfying one. When there is any
change, it is likely to be changed which people do not want. Therefore, they
resist change.
(ii) Feeling of Outside Interference: A change brought by the change agent is
considered to be interference in the working of people. This is heightened if
the change agent belongs to another social class e.g., change initiated by
managers affecting workers.
B. Group Resistance: The effect of group as a source of resistance may be analysed in
terms of nature of group dynamics and vested interests.
(1) Nature of Group Dynamics: Group dynamics refers to the forces which operate in
a group determining behaviour of its members. These forces determine how effective a
group would be in accepting or rejecting a change. The following nature of group
dynamic is important:
(i) If both change agent and people belong to the same group, the role of group is
more effective.
(ii) If the members have developed strong belongingness to the group, the role of
group is more effective.
(iii) The degree of group attractiveness to its members affects how effective the
group is
(iv) Group can exert more pressure on those factors which are responsible for group
being attractive to the members.
(v) The degree of prestige of a group, determines the degree of influence the group
has.
(vi) Any attempt to change the group norms by any outside force is resisted.

(2) Vested Interests: In a group, some members become more influential than others.
These persons may be group leaders appointed formally or accepted by people as leader
in an informal group. These persons may use the group as a means for satisfying their
own needs. Thus, these vested interests try to influence group behaviour in the form of
a uniform response to a change. This phenomenon is more common in the case of
labour unions.
C. Organizational Resistance to Change:
The organisation itself resists many changes because of certain reasons. The major
reasons for organisational failure to change are:
(i) Counting Past Successes: A major problem before the organisations which
have past success stories is, how to face challenges of the changing
environment. Since these organisations have achieved success by following a
particular set of management practices, they become too rigid to change and
they hide their failure to change in the guise of past success.
(ii) Stability of System: The organisation may design a system through which it
may derive many benefits. The system is stabilized and any change may be
perceived a threat by the organisation itself.
(iii) Resource Limitations: The organisation has to adapt to its environment but
the adoption has its own cost. If the organisation is not fully equipped for
meeting such demands, it may not be possible for the organisation to bring
necessary change.
(iv) Sunk Cost: Most of the organisations have sunk cost involved in various
assets. Sunk cost can be in the form of people also. If the change is required,
organisation has to pay for those though they may not be as useful.
(v) Inter organisational agreement: The organisation may enter into agreement
with other organisations over certain aspects of working. If any change is to
be incorporated, the organisation has to taken into account the wishes of other
organisations too.
It does not mean that the organisation will always resist change. It depends more on
the style of top management. If it is risk taking, forward looking, innovative and has
Zeal for progress, the organisation may take change programmes much more frequently.
Based on aggressiveness which various companies show in changing themselves,
Miles and Snow have classified into four categories:
1. Defenders: These are the firms which penetrate in a narrow market / product
domain and guard it. They emphasis more on cost-effectiveness, centralized
control, intensive planning and put less emphasis on environmental scanning.
2. Prospectors: These firms use broad planning approaches, broad environmental
scanning, decentralized controls and reserve some resources utilized for future
use. They go on searching new products / markets on regular basis.
3. Analysers: Above two are the extreme cases of choice making modes. In
between lye analysers and reactors. Analysers act sometimes as defenders and
sometimes as prospectors.
4. Reactors: These organisations realize that their specific environment is changing
but fail to relate themselves with the changing environment. They have to behave
in one of the above three ways otherwise, they cannot survive

Overcoming Resistance to Change
Problem of overcoming resistance to change can be handled at two levels; at the
level of individuals and at the level of group.
A. Efforts at Individual Level:
When resistance to change comes from the people at individual level, the problem
can be solved at the same level. For this purpose, the following efforts can be made:
1. Involvement: Involvement is a process through which those who are affected by
the change are brought to understand the change. This is not a one time action. It
includes finding out from the members how they interpret the proposed change
and what they think about it. Getting opinions out in the open, so that they are
looked at and evaluated, is an important trust building task. As this process
goes, the level of resistance to change tends to decrease, understanding of change
increases and the personal involvement in the change increases.
2. Obtaining Commitment: Commitment is an agreement to take an active part in
the actual mechanics of the change. Commitment to take part in the change
programme can be obtained in private from each individual.
3. Leadership: The role of leadership in getting acceptance for a change is very
important as a capable leader reinforces a climate of psychological support for
change.
4. Training and Psychological Counseling: People should be educated to become
familiar with change, its process and working. They must be taught new skills,
helped to change attitudes and indoctrinated in new relationships. Such
educational process can be aided by training classes, meetings and conferences.
B. Efforts at Group Level:
The managers can form strategies for overcoming resistance in the following
manner:
1. Group Contact: Though the group contact, many things about change can be
made clear such aspects as the reasons for change, benefits of change and how
the benefits of the change will be shared among organizations and its members.
Advantages of group contacts are (i) Through group one can communicate with
more people per unit of time. (ii) In group, there may be some person who may
support the idea for change. (iii) Group can get at the basic problem very rapidly.
2. Participation: Those people who are directly affected by the change should be
given opportunity to participate in that change before the final decisions are
reached. The organisation must regard the participation as meaningful and share
the results of the change with its members.
3. Group Dynamics Training for Change: Group dynamics also helps in providing
various training programme for accepting and implementing change. Such
training techniques include role playing, psychodrama, and sensitivity or t-group
training.
Types of Change
I. On the Basis of Subject Matter of Change
1. Strategic Change: This is a change in the very mission of the organisation.
2. Structural Change: Decentralised operations and participative management style
have been more recent trends in the organisational structure. Since these structural
changes shift the authority and responsibility to lower level management, the members
have to be prepared to develop a team spirit as well as acquire skills to make on-the-spot
decisions.
3. Process Oriented Change: These changes relate to technological developments,
information processing, automation and use of robotics in the manufacturing operations.
4. People Oriented Change: any organisational change affects people in some form.
These changes are directed towards performance improvement, group cohesion,
dedication and loyalty to the organisation as well as developing a sense of self
actualization among the members.
II. On the Basis of Origin
1. Evolutionary Change: Such changes do not greatly violate the traditions and
states QUO exceptions. They are usually piecemeal, take place one by one.
2. Revolutionary Change: Changes sometimes may be cataclysmic. The
revolutionary changes result in overturning the status quo arrangements, cause
violations, rejections or suppression of old exceptions. These changes are rarely
introduced except where situations become highly intolerable having no other
acceptable options.
III. On the basis of Planning
Planned Change: is intentional and occurs with a change agents direction. Most
planned changes may be regarded as efforts intended to deal with performance gaps in
ways that benefit on organisation and its members.
Unplanned Change: Occurs spontaneously and without a change agents direction. They
may be disruptive such as a wildcat strike that ends in a plant closure, or beneficial.
IV. On the basis of reaction
Proactive Change: is brought out of the anticipation of the likely behaviour of the
forces having impact on the organisation. Such organisations are known as prospectors
which constantly interact with their environment to identify new opportunities and
threats.

Reactive Change:
It occurs when external or internal forces make it necessary for a change to be
implemented. Most of the organisations which believe in traditional pattern of working
often go for reactive change.
Types of Change Approach
I. Economic Approach: refers to creating change for the purpose of creating
shareholder value. Such change is driven by top management with financial incentive for
employees to perform. Change is planned and focused. Change agents focus on decision
that affects the strategy, structure and systems of their organisation.
II. Organisational Development Approach: The goal of this approach is to develop
employees competencies to solve problems by having them identify and become
emotionally committed to improving the performance of the firm. This approach requires
management to engage people emotionally in examining why the existing structure and
systems are not meeting the new challenges facing the organisation.
III. Action Research Approach:
This approach takes the view that meaningful change is a combination of action
orientation and research orientation. An action orientation involves diagnosing current
problems and applying interventions that resolve those problems. Research orientation
involves application of conceptual framework to real situation. In other words, action
research embraces the notion of organisational learning and knowledge management.
This approach adopts an open systems view. Action research is also a highly participative
process. Overall, action research is a data based, problem oriented process that
diagnoses the need for change, introduces the intervention, and then evaluates and
stabilizes the desired changes. Steps.
(1) Establish Client Consultant Relationship: The process begins by forming the
client consultant relationship. Consultants need to determine the clients
readiness for change. Many change management consultants prefer to adopt the
role of process consultant. Process consultation is a method of helping people
within the system solve their own problems by making them aware of
organisational processes, the consequences of those processes, and the means by
which they can be changed
(2) Diagnose the used for Change: Organisational diagnosis identifies the
appropriate direction for the change effort by gathering and analyzing data about
an on-going system.
(3) Introduce Intervention: This stage applies one or more actions to correct the
problem.
(4) Evaluate and Stablise Change: Rewards, information systems, team norms and
other conditions are redesigned so that they support the new values and
behaviours.
IV. Appreciative Inquiry Approach

A change process that directs attention away from the groups own problems and
focuses participants on the groups potential and positive elements. The following
diagram outlines the Four - D Model of Appreciative Inquiry.




V. Parallel Learning structure Approach
Parallel learning structures are highly participative arrangements, composed of
people from most levels of the organisation who follow the action research model to
produce meaningful organisational change. They are social structures developed
alongside the formal hierarchy with the purpose of increasing the organisations learning
and producing meaningful organisational change.





Discovery
Identifying
the best of
what is
Dreaming
Envisioning
what might
be
Designing
Engaging in
dialogue
about what
should be
Delivering
Developing
objectives
about what
will be

The Change Process / Process of Planned Change:
The change is successful if it is taken in a planned way which proceeds in a
sequential form as shown in the following figure




1. Identifying Need for Change: The first basic step is to identify when change in the
organisation is required. The most information for identifying need for change comes
from the organisations feedback and control data. Identification of need for change
depends on gap analysis and this gap analysis should be seen on progression basis.
2. Elements to be Changed: What elements of the organisation should be changed will
largely be divided by need and objectives of change. Usually change is required in three
major elements of the organisation. Organisation structure, technology and people.
Structural change may include job design, job definitions, basis of departmentation, span
of control, organisational policies and procedures, co-ordination, power structure etc.
Technological changes include changes in plant & equipment; techniques for doing work,
production methods etc., and changes in people include changes in their behaviour,
interaction pattern, informal grouping, skills, attitudes etc.
Identifying need
for change
Elements to
be changed
Planning for
change
Assessing
change
forces
Action for
change
Unfreezing
Changing
Refreezing
Feed back
3. Planning for Change: At this stage, managers should plan about how the change can
be brought. Planning for change includes who will bring change, when to bring change
and how to bring change.
4. Assessing Change Forces: Kurt Lewin assumes that in any situation, there are both
driving and restraining forces which influence any change that may occur. Equilibrium is
reached when sum of driving forces equals the sum of restraining forces. The
management has to push driving forces and / or converting or immobilizing restraining
forces so that people accept the change.
5. Actions for Change: Actions for change comprise three stages unfreezing, changing
refreezing:
(1) Unfreezing: It simply makes the individuals or organisations aware and prepares them
for the change. According to Schein, unfreezing is the process of breaking down the old
attitudes and behaviours so that they start with a clean slate. He also suggested some
measures which are helpful in undertaking unfreezing process. These are
(i) The physical removal of the individuals from their accustomed routines,
sources of information and social relationships.
(ii) The undermining and destruction of social support.
(iii) Demeaning and humiliating experience to help individuals to see their old
attitudes as unworthy and think to be motivated to change.
(iv) The consistent linking of reward with willingness to change and to
punishment with unwilling to change.
(2) Changing (Acceptance to change) : Once the unfreezing process has been completed,
their behaviour patterns have to be redefined. H.C.Kellman has proposed three methods
of reassigning new patterns of behaviour. These are:
a) Compliance: It is achieved by strictly enforcing the reward and punishment
strategy for good or bad behaviour.
b) Identification: Identification occurs when members are psychologically
impressed upon to identify themselves with some given role models whose
behaviour they would like to adopt and try to become like them.
c) Internalisation: It involves some internal changing of the individuals thought
processes in order to adjust to a new environment.
(3)Refreezing: Refreezing occurs when the new behaviour becomes a normal way of life.
The new behaviour must replace the former behaviour completely for successful change
to take place.
6. Feedback: Management of change requires feedback and follow-up actions to ensure
that change programme is progressing in right direction. Feed back received from the
initial attempt of change programme may be used to modify the subsequent programme.
Organisational Development
In the 1960s, a new and integrated type of method known as organisation
development (OD) originated to bring change in the entire organisational aspect.
Harold Rush has defined organisational development as a planned, managed and
systematic process to change the culture, systems and behaviour of an organisation in
order to improve the organisations effectiveness in solving its problems and achieving its
objectives.
Features of OD
1. Planned Change: OD is a strategy of planned change for organisational
improvement.
2. Comprehensive Change: OD efforts focus on comprehensive change in the
organisation. OD efforts take an organisation as an interrelated whole and no part of it
can be changed meaningfully without making corresponding changes in other parts.
3. Long range Change: OD focuses on the elevation of an organisation to a higher
level of functioning by improving the performance and satisfaction of organisational
members on long term basis.
4. Dynamic Process: OD is a dynamic process and includes the efforts to guide and
direct changes as well as to cope with or adopt changes imposed. Thus OD efforts are
ongoing, interactive and cyclic process.
5. Participation of Change Agent: Most OD experts emphasize the need for an
outside, third party change agent. They discourage do it yourself approach.
6. Emphasis on Intervention and Action Research: OD approach results into an
active intervention in the ongoing activities of the organisation. Action research is the
basis for such intervention.
7. Normative Educational Process: OD is based on the principle that norms form the
basis for behaviour and change and is a re-educative process of replacing old norms by
new ones.
Objectives / Role of OD Programmes
OD can be utilized for the following results in the organisation:
1. To build and enhance interpersonal trust, communication, co-operation and
support among all individuals and groups throughout the organisation at all levels.
2. To encourage an analytical approach to problem solving in a team spirit and open
manner.
3. To increase the sense of belonging to the organisation so that the organisational
goal becomes the goals of the members of the organisation.
4. To assign decision-making and problem solving responsibilities to skilled and
knowledgeable persons who are closer to the sources of information.
5. To increase personal responsibility for planning, implementing the plans and be
aware and responsible for the consequences.
6. To help managers to manage according to the relevant objectives, rather than
depending upon past particles.
7. To increase the openess of communications in all directions.

Basic OD Assumptions
1. Most individuals have drives towards personal growth and development.
2. Highest productivity can be achieved when the individual goals are integrated
with organisational goals.
3. Co-operation is always more effective than conflict.
4. The suppression of feelings adversely affects problem solving, personal growth
and satisfaction.
5. The growth of individual members is facilitated by relationships which are open,
supportive and trusting.
6. The difference between commitment and agreement must be fully understood.
7. OD programs, if they are to succeed, must be reinforced by the organisations total
human resources system.

Process of OD
In OD programmes, various steps are
1. Problem Identification and Diagnosis: The problems may be a gap between desired
path of action and actual path of action. OD programme starts with the identification of
the problems in the organisation. Diagnosis gives correct identification of a problem and
its causes and determines the scope of future course of action. Once a problem is
identified, the analysis will show why the problem exists.
2. Planning Strategy for Change: Attempts are made to transform diagnosis of the
problem into proper action plan involving the overall goals for change, determination of
the basic approach for attaining these goals, and the sequence of detailed scheme for
implementing the approach.
3. Intervening in the System: It refers to implementation of the planned activities.
There may be various methods through which external consultant intervene in the system,
such as education and laboratory training, process consultation, team development etc.
4. Evaluation: This step relates to evaluate the results of OD programme so that
suitable actions may be followed up. This step again involves data gathering because
such data will provide the basis for OD efforts evaluation and suggest suitable
modification or continuation of OD efforts in similar direction.
Action Research Model of OD
The OD process can be presented in the form of Action Research Model. The
cyclical process of using research to guide action, which generates new data as the basis
for new actions, is known as action research. French and Bell have defined action
research as follows:
Action research is the process of systematically collecting research data about an
ongoing system relative to some objective, goal, or need of that system; feeding these
data back into the system; taking actions by altering selected variables within the system
based both on the data and on hypothesis; and evaluating the results of actions by
collecting more data.
The action research model is given in the following figure:

Action Research Model of OD



OD Interventions:
OD interventions refer to various activities for improving organisational
performance. OD interventions are also referred as OD techniques or OD strategies.
French and Bell have defined OD intervention as:
Sets of structures activities in which selected organisational units (target groups
or individual) 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.

Classification of OD Interventions
There are various OD interventions and they are classified indifferent ways. OD
interventions can be classified on two bases: (i) approach adopted and (ii) target on the
basis of approach adopted, OD interventions are classified into two categories: (i) Process
intervention and (ii) Structural interventions.
Organisational Perceptions
of Problem
Data Collection and
diagnosis by consultant on
the problems
Feed back to the client
about the nature and causes
of the problems
Further data collection by
consultant
Feed back and discussion
with client to work on the
problems
Determination of
objectives and plan of
action
Determination of action
behaviour for achieving
these objectives
Reassessment of
situation through
further data collection
Feed back to client
and discussion to work
on the feed back
New Plan of action
Action behaviour
Joint action planning for
solving the problems
Though there are many OD interventions, more commonly used interventions are:
Sensitivity training, grid OD, Survey feed back, Process consultation, team building and
management by Objectives.
1. Sensitivity Training
Sensitivity training (also known as T - Group) approach evolved from group
dynamics concept of Kurt Lewin and the first sensitivity training session was held in
1946 in state teachers College, New Britain, USA. Sensitivity training is a small group
interaction process in the unstructured form which requires people to become sensitive to
others feelings in order to develop reasonable group activity.
Process
Sensitivity training focuses on small group with number of members ranging from
ten to twelve. Based on the sources from where these members are drawn, there may be
three types of T group. Stranger lab, Cousin lab and Family lab. In Stranger lab,
all participants are from different organisations and they are strangers to each other. In
cousin lab all participants are from the same organisation but from different units. In
Family lab, all participants are from the same unit and know each other quite well. The
events run as follows:
(i) In the beginning, there is an intentional lack of directive leadership, formal
agenda.
(ii) In the second phase, the trainer becomes open, non-defensive and expresses
his or her own feelings in a minimally evaluative way.
(iii) In the third phase, inter personal relationships develop. The members serve as
resources to one another.
(iv) The last phase attempts to explore the relevance of the experience in terms of
back home situations.
Positive Consequence
(i) Sensitivity training results into more supportive behaviour, more sensitive
people and more considerate managers.
(ii) Participants become more open and self understanding.
(iii) Communication is improved a lot and leadership skills are well developed.
(iv) Participants become aware of group norms and sense of belongingness.

Negative Consequences
Many participants have reported a feeling of humiliation and frustrated. Problems
in sensitivity training emerge because of two reasons. First, some problems emerge in the
training process itself especially if it is not conducted properly. Second, problems may
emerge because of the mismatch between the person so trained and the nature of work
environment.

2. Grid Organisation Development
It was developed by Blake and Mouton. It utilizes or number of instruments,
enabling individuals and groups to assess their own strengths and weaknesses. The basic
content of grid OD is managerial grid. The whole orientation is to develop 9,9 managerial
style through the application of behavioural science knowledge. It consists of six phases.
(1) Managerial grid: It covers various aspects of assessing managerial styles,
problem solving, communication skills and team work. The individuals try to
learn to become 9,9 managers by practice.
(2) Teamwork Development: the focus in this stage is to develop teamwork by
analyzing team culture, traditions and the like.
(3) Inter group development: At this stage, the focus is on inter-group behaviour
and relations. Each group separately analyses the ideal inter-group relationship.
(4) Developing Ideal strategic Corporate Model: At this stage, the focus shifts to
the total organisation and to develop skills necessary for organisational
excellence.
(5) Implementing the Ideal Strategic Model: This includes building of the
organisation on the model of ideal organisation on the basis of concepts
developed under stage 4.
(6) Systematic Critique: Critical analysis is made at this stage which will bring out
the short comings that may be there.
Criticism: It lacks contingency approach, therefore, it discounts reality. Further Grid OD
is a non rigorous method.

3. Survey Feed Back
The basic objectives of survey feed back are
- To assist the organisation is diagnosing its problems and developing action
plan for problem solving.
- To assist the group members to improve the relationships.
Process
(1) Data Collection: The first step is data collection with the help of a structural
questionnaire. The questionnaire may include different aspects of organisational
functioning. After the questionnaires are completed, data are classified, tabulated and
analysis is made to arrive at some meaningful conclusions.
(2) Feed back of information: The feed back is given either orally or in a written
form to the persons who have participated in the filling up of questionnaires. It should
be constructive and suggestive.
(3) Follow up Action: Follow up action is taken based on the data collected. One
such follow up action may be to advise the participants to develop their own action
plans to overcome the problems or in the form of developing some specific OD
interventions particularly process consultation and team building.
Evaluation
Positive:
(i) It is cost effective means of implementing a comprehending OD
programme.
(ii) It generates great amount of information efficiently and quickly.
(iii) Decision making and problem solving abilities of organisation can be
improved tremendously.
Negative:
It is not a technique in itself; it provides base for actions for change. The
effectives of this method depend on two factors:
(i) Questionnaire used and method adopted for its administration should be
reliable and valid.
(ii) It is of no use unless follow up action is taken.

4. Process Consultation:
It is a technique for intervening in an ongoing system. The consultant works with
individuals and groups in the organisation to help them learn about human and social
processes to solve problems
Steps: Schein has suggested the following steps:
(i) Initiate Contact: In this stage, the client makes initial contact with the
consultant with a view to solve problems faced by the organisation.
(ii) Define the Relationship: At this stage, client and consultant enter into
agreement covering various aspects of consultancy services like fees and
spelling out services, time etc.
(iii) Select the Setting and the Method: It involves a clear cut understanding of
where and how the consultant will do the job that is required.
(iv) Gather Data and make a Diagnosis: Information is collected from various
sources through the use of questionnaires, observations and interviews about
the problems spelled out at the initial stage. This data gathering occurs
simultaneously with the entire consultative process. Information collected is
processed to diagnose the problems.
(v) Intervene: At this stage, the consultant intervenes by using different
interventions like coaching, structural change etc.
(vi) Reduce involvement and Terminate: When the P.C work is completed, the
consultant disengages from the client organisation by mutual agreement.
Evaluation
Process consultant plays a major role. He suggests the various changes in the
processes and assists the organisational members to incorporate those changes. Hence it
is a very effective intervention.
However, problem may emerge due to consultants inability to steer the
organisation out of troubles. Another problem may emerge at the level of organisation
and its members in terms of how they inculcate the new processes and culture as
suggested by the consultant. However, both these problem may be overcome by engaging
suitable consultant.

5. Team Building
Team building is the most important, widely accepted, and applied OD
intervention. Various steps of team building process are repetitive and cyclical as
indicated by the following figure.

Process of Team Building


(i) Problem Sensing: There are a number of ways in which problems of a team can
be identified. This problem can better be identified in terms of what is hindering team
effectiveness. In problem identification, the emphasis should be on consensus.
(ii) Examining Differences: The perception of people on an issue differs and it may
be brought to conformity through the process of exercise on perception. The role of
communication is important in this context.
(iii)Giving and Receiving Feed back: The feed back should be given to the
members about their feelings, about the issue, the way people talk about the issue etc.,
Such feed back generally provides members to evaluate the values but at the same
time, also provides opportunity to understand themselves.
(iv) Developing Interactive Skills: The basic objective of this process is to increase
the ability among the people as to how they should interact with others and engage in
constructive behaviour. Following are examples of constructive and negative
behaviours.
Constructive Behaviours: Building, Bringing in, clarifying, innovating.


Problem
sensing
Examining
Perceptual
differences
Giving and
Receiving
feed back
Developing
interactive
skills
Follow up
action
Negative Behaviours: Over talk, Attacking, Negative.
At the time of discussion of feedback, people themselves take assignments to
increase specific constructive behaviours and decrease specific negative behaviours.
(v) Follow up Action: At this stage, the total team is convened to review what has
been learned and to identify what the next step should be. These attempts bring co-
operative and supportive feelings among people involved in the team functioning.
Evaluation
Positive
i) It improves the organisations problem solving and decision making ability.
ii) It helps in developing effective inter personal relationships.
iii) It helps developing communication within the group and inter-group.
However it suffers from the following limitations:
i) It focuses only on work teams.
ii) Team building becomes a complicated exercise when there is frequent change
in team members.

Management By Objectives (MBO)
MBO is not only an OD intervention but also is a technique and system which
helps in improving organisational performance. The term MBO was coined by Drucker in
1964. It has been defined as MBO is a comprehensive managerial system that integrates
many key managerial activities in a systematic manner, consciously directed towards the
effective and efficient achievement of organisational objectives. Features
1. MBO is an approach and philosophy to management
2. MBO is bound to have some relationship with every management
technique.
3. The basic emphasis of MBO is an objective.
4. The MBO is characterized by the participation of concerned managers in
objective setting and performance reviews.
5. Periodic review of performance is an important feature of MBO.
6. Objectives in MBO provide guidelines for appropriate system and
procedures.

MBO is a system for achieving organisational objectives, enhancement of
employee commitment and participation. The process of MBO is shown in the following
figure:
MBO Process





Organisational
Purpose & Objectives
Planning Premises
Key result areas
Superiors objectives
Superiors recommendation
for subordinate objectives
Subordinates statement of his
objective
Subordinates agreed
objectives
Matching resources
Subordinates
performance
Performance review and
Appraisal
1. Setting of Organisational Purpose and Objectives: The first basic step in MBO is
the definition of organisational purpose and objectives. Usually, the objective setting
starts at the top level of the organisation and moves downward to the lowest management
level. This will go in a sequence like this
(i) Defining the purpose of the organisation.
(ii) Long range and strategic objectives
(iii) Short term organisational objectives
(iv) Divisional / departmental / sectional objectives
(v) Individual mangers objectives.
1. Key Result Area: Organisational objectives and planning premises together provide
the basis for the identification of Key Result Areas (KRA) Examples of KRAs are :
(i) Profitability, (ii) Market standing (iii) Innovation, (iv) Productivity etc.

2. Setting Sub ordinates Objectives: The process of objective setting begins with
superiors proposed recommendations for his sub-ordinates objectives. In turn, the
subordinate state his own objectives as perceived by him. Thereafter, the final objectives
for the subordinate are set by the mutual negotiation between superior and subordinate.

3. Matching Resources with Objectives: Resource availability becomes an important
aspect of objective setting because it is the proper application of resources which ensures
objective achievement. Therefore, there should be matching between objectives and
resources.

4. Appraisal: Appraisal is undertaken as an on-going process with a view to find out
deficiency in the working and also to remove it promptly.

5. Recycling: The three aspects involved in recycling process include setting of
objectives at various levels, action planning in the context of those objectives and
performance review. Each of these aspects gives base for others


Recycling aspect of MBO



Benefits of MBO
1. Better Managing: MBO helps in better managing the organisational resources and
activities. Resources and activities are put in such a way that they result into better
performance.
2. Clarity in Organisational Action: MBO tends to provide the key result areas
(KRAs) where organisational efforts are needed. Since organisational objectives are
defined very clearly, they help in relating the organisation with its environment.
3. Personnel Satisfaction: MBO provides greatest opportunity for personnel
satisfaction. This is possible because of two closely related phenomena participation in
objective setting and rational performance appraisal.
4. Basis for organisational Change: MBO stimulates organisational change and
provides a framework and guidelines for planned change, enabling top management to
initiate, plan, direct and control the direction and speed of change

Problems and Limitations of MBO
Some of the problems are inherent in MBO system itself while others emerge
because of wrong implementation. They are
1. Time and Cost: It is a process which requires large amount of time of the senior
managers. Further, MBO generates paper work because large number of forms is to be
Objective setting
Action Planning
Performance Review
designed and put into practice. However, such problems are transitory aid emerge only at
the initial stages.
2. Failure to Teach MBO Philosophy: MBO is a philosophy of managing an
organisation in a new way. However, managers fail to understand and appreciate this new
approach.
3. Problems in Objective Setting: MBO requires verifiable objectives against which
performance can be measures. However, setting such objectives is difficult at least in
some areas.
4. Emphasis on Short term Objectives: There is always a danger in emphasizing
short term objectives at the cost of long term objectives.
5. Inflexibility: MBO represents the danger of inflexibility in the organisation,
particularly when the objectives need to be changed.
6. Frustration: Sometimes, MBO creates frustration among managers because, many
organisations could not implement MBO properly and introduction of MBO tends to
arouse high exception for rapid change, particularly among young and junior managers.

Pre requisites for Installing MBO Programme
1. Purpose of MBO: MBO is a means rather than an end. Hence, the organisation
should be very clear about the purpose for which it is being implemented.
2. Top Management Support: The presence of top management support is a critical
factor in determining the success of MBO programme. Management support for using
objectives to plan and to control, working on a continuous basis, increase the probability
of success of a programme.
3. Training for MBO: Systematic training is requires in the organisation for
disseminating the concepts and philosophy underlying MBO. Another type of training
should be in the area of inter group and inter personal relationships because MBO entails
a lot of such elements.
4. Participation: success with MBO requires a commitment on the part of each
individual involved in this type of system.
5. Feedback for Self direction and Self control: Feedback under MBO should take
two forms, first, the individual should get periodic reports on where he stands on an
overall performance basis. Second, feedback is necessary in the form of periodic
counseling and appraisal interview.
6. Other factors:
i) If the full benefits of MBO are to be realized, it must be carried all the way
down to the first line of the organisation.
ii) Organisations compensation system should be tied with MBO programme.
iii) The person responsible for introducing MBO must be certain that competing
objectives are not set.

Change Agent is anyone who possesses enough knowledge and power to guide and
facilitate the change effort. Transformational leaders are the primary agents of change
because they form a vision of the desired future state, communicate that vision in ways
that are meaningful to others, behave in ways that are consistent with the vision and build
consistent to the vision.
Characteristics of Successful Change Agents HELP SCORES.
1. Homophily: it is the degree of closeness and similarly between change agent and the
client. The closer the relationship, the easier and more successful the change.

2. Empathy: it involves understanding of feelings and emotions of others.
Understanding is very helpful in bringing about the desired change.
3. Linkage: It refers to the degree of collaboration between the change agent and the
client. The tighter the linkage, the more likely is the success.
4. Proximity: The closer the proximity the better the relationship between the two.
5. Structuring: It involves proper and clear planning of all activities that are related to
change.
6. Capacity: It refers to the organisations capacity to provide the resources that are
needed for successful organisational development.
7. Openness: The degree of openness between the change agent and the client would
considerably affect the outcome of the program.
8. Reward: All members expect that the change will bring potential benefits. The
greater the potential for rewards, the more determined the effort would be in making the
required change.
9. Energy: It refers to the amount of effort put into the change process.
10. Synergy: It means that the whole is more than the sum of its parts. This means that
the above nine factors support success mutually as well as individually, they are
favourable to the programme.
Role of Change Agents
The objective of the change agents is to bring desired change in the organisation.
However, for this purpose, a specific role is required to be performed by the change
agents, both external and internal.
Role of External Change Agent:
The external change agent is in a position to view the organisation meant for
change from a system view point. The role of consultant may include diagnosis of the
situation, planning strategy for change, intervening in the system and evaluation of the
change efforts in the context of various out comes. The change programme will be
successful only when the consultant is given the role of process consultation and the rest
of the programme is implemented by the organisation itself.

Role of Internal Change Agents
The internal change agents are likely to accept the system as given and try to
accommodate their change tactics to the needs of the organisation. There may be two
categories of persons who may act as internal change agents:
(i) Chief Executive and
(ii) Change Advisors
(i) Chief Executive: The chief executive sponsors the change programme and
provides support and leadership for its success. Change programme has a greater chance
of success if it is sponsored by the chief executive when the change process proceeds
smoothly, the role of the chief executive may gradually reduce and other key members
also act as change agents in their respective domain.
(ii) Change Advisors: These are the internal personnel initially selected to work in
close harmony with external consultant. They are trained by the consultant for
implementing the change. The change advisors role concerns primarily with the
organisation to accept the change programme and is essentially educational. He helps the
manager to develop appropriate behaviour and skills for the change process.

Human Response to Change
1. Acceptance: If an employee perceives that a change is likely to affect him
favourably, he accepts it.
2. Resistance: Resistance means opposition to change. The resistance to change may be
in any of the following forms: aggression, apathy towards work, absenteeism and
tardiness, strikes etc.
3. Indifference: Sometimes, the employees fail to realize the impact of change or some
people feel that they will not be affected by change. If so, they will remain indifferent to
change.
4. Forced Acceptance: even if there is resistance to change in the initial stages but if
change forces are stronger than resistance forces, people have to accept the change.

Performance Gap is a discrepancy between the desired and actual state of affairs.
Force Coercion strategy uses authority, rewards and punishments to create
change.
Rational persuasion strategy uses facts, special knowledge, and rational argument
to create change.
A shared power strategy uses participatory methods and emphasizes common
values to create change.

Resistance to Change is an attitude or behaviour that shows unwillingness to make or
support a change.
Innovation is the process of creating new ideas and putting them into practice.
Organisational Diagnosis is the process of assessing the functioning of the organisation,
department, team or job to discover the sources of problems and areas of improvement.
An accurate diagnosis of organisational problems and functioning is absolutely essential
as a starting point for planned organisational change
UNIT V
ORGANISATION EVOLUTION AND SUSTENANCE


Organisational life cycle- Models of transformation Models of organizational Decision
making organizational learning Innovation, Intrapreneurship and creativity HR
implications.
ORGANISATIONAL LIFE CYCLE
Organizations progress through a life cycle. The various stages involved in life cycle are
sequential in nature and follow a natural progression. Quinn and Cameron have proposed
four major stages to describe an organizations life cycle.

1. Entrepreneurial stage: Every organization starts with the entrepreneurial stage. The
entrepreneur devotes his/her whole energy in producing and marketing the product. At
this stage, the size of the organization is small. This stage is also known as one man
show. He/She being the owner of the organization controls it. The organization at this
stage adopts organic structure. The organization required to introduce management
techniques to move to the next stage.

2. Collectivity stage: Having with the managerial direction and control organization
tends to take formal shape. Departmentalization starts based on division of labor
following hierocracy of authority. A strong leadership motivates employees to contribute
their maximum mite for accomplishing the organizational goals. This makes the
structure a highly organic one. Now the organization needs delegation of authority to
move form stage 2 to state 3 i.e. formalization stage.

3. Formalization stage: This is the middle stage of an organization. In this stage, the
bureaucratic characteristics emerge in the organization. Now, Policies, Procedures, and
rules are finalized to formalize the whole organization. It is clarified who will report to
whom. These help managers exercise control over system and coordinate the
organizational activities effectively. When bureaucratization and formalization assume
excessive proportions, these need to be curbed to advance to the next stage, namely
elaboration stage.

4. Elaboration stage: The elaboration stage is marked by extensive control systems,
rules and procedures. Innovation is for formally institutionalized and assigned to the
research and development (R& D) department of the organization. Individual employees
often focus on maintaining the organizational activities. In order not to allow
organization to decline or die, this stage needs periodically to be revitalized. For
introducing revitalizing changes the old top managers are often replaced by new
managers with fresh ideas.

The organization that fails to revitalize itself trends to decline and ultimately dies.



Learning in organization:

Learning is a relatively permanent change in behavior that occurs as a result of a
persons interaction with the environment. Learning occurs when interaction with the
environment leads to behavior change. This means that we learn through our senses,
such as through study, observation and experience Learning is essential because the
organizations survival and success depend on employees learning about external
environment learning also influences individual behavior and performance through three
elements of the MARS model. First people acquire skills and knowledge through
learning opportunities which gives them the competencies to takes more effectively.
Second learning understanding of their tasks and relative importance of work activities.
Third, learning motivates employees. Employees are more motivated to perform certain
tasks because they learn that their effort will result in desire performance.

Learning Explicit and Tacit knowledge

When employees learn, they acquire both explicit and tacit knowledge. Explicit
knowledge is organized and can be communicated from one person to another. The
information we receive in a lecture is mainly explicit knowledge. Explicit knowledge can
written down and given to others
Tacit knowledge is not documented, rather it is action oriented and known
bellows the level of consciousness. Tacit knowledge is acquired through observation and
direct experience.

Nature of learning

1. Learning involves a change in behavior
2. The behavioral change must be relatively permanent
3. The behavioral change must be based on some form of practice or experience
4. The practice or experience must be reinforced in order for learning to occur.

Components of Learning Process

1. Drive: Learning frequently occurs in the presence of drive any strong stimulus
that impels action. Without drive, learning does not take place. Drives are basically of
two types- primary or physiological and secondary or psychological drives. Individuals
operate under many drives at the same time. To predict behaviour it is necessary to
establish which drives or stimulating the most.

2. Cue Stimuli are any objects existing in the environment as perceived by the
individual. There may be two types of stimuli so for as their results in terms of response
are concerned: Generalization and discrimination.



1. Generalisation occurs when a response is elicited by a similar but new
stimulus. The principle of generalization has important implication for human learning.
Because of generalization a person does not have to completely relearn each of the new
tasks or objects which constantly control him. It allows the organizational members to
adapt to overall changing conditions and specific new or modified job assignments. .

2. Discrimination is opposite of generalization. This is a process whereby there is
a response to a stimulus but not same response to a similar but some that different
stimulus.

3. Responses the stimulus results into responses. Responses may in the physical
form or may be in terms of attitudes perception etc.

4. Reinforcement may be defined as environmental events affecting the
probability of occurrence of responses with which they are associated. The role of
reinforcement in learning is very important.

5. Retention: The stability of learned behaviour over time is defined as retention.
Some of the learning is retained over a period of time, while others may be forgotten.


Factors affecting learning

1. Motivation: Learners motivation is one of the major conditions for learning.
The degree of learners motivation is positively associated with his learning.

2. Mental set: Mental set refers to the preparation for an action If a person is
prepared to act the can do the things quickly.

3. Nature of learning materials: Nature of learning materials affects learning by
providing clue for understanding. (i) if the learning material is of easy nature it is learned
quickly (ii) If the learn is familiar with the learning material the can learn more quickly
(iii) If serial position shape and meaningful users of learning materials are positive
learning taken place at faster rate.

4. Practice: The more a person practices more he absorbs learning contents.
Most of the motor skills (like typing, swimming driving etc.,) are learned based on this
principle.

5. Environment: Environment in which process occurs affects learning.
Environment with high pressure and high rate of change increases the likelihood of stress
and has negative impact of learning environment with features of support cohesion and
affiliation has positive impact of learning.



Perspectives of Learning:

1. Reinforcement 2. Social learning and 3. Direct experience
Each perspective offers a different angle for understanding the dynamics of learning.

Behaviour Modification:

Learning through Reinforcement: One of the oldest perspectives on learning,
called behaviour modification (also known as operant conditioning and reinforcement
theory) takes the extreme view that learning is completely dependent on the environment.
Reinforcement is very important for learning because behavioural response in
conditioned by reinforcement. Reinforcement can be defined as anything that increases
the strength of response and trends to induce repetitions of the behaviour that precede the
reinforcement.

A-B-Cs Behaviour modification:

Behaviour modification recognizes that behaviour is influenced by two
environmental contingencies: the antecedents and the consequences. The central
objective of behaviour modification is to change behaviour (B) by managing its
antecedents (A) and consequences (c).

Antecedents are events preceding the behaviour informing employees that certain
behaviours will have particular consequences.

Consequences are events following a particular behaviour that influences its
future occurrence. People tend to repeat behaviour that are followed by pleasant
consequences and are less likely to repeat behaviour that are followed by unpleasant
consequences. This can be explained by the following figure.






Contingencies of Reinforcement:

Behaviour modification identifies four types of consequences, collectively known
as the contingencies of reinforcement that strengthen, maintain or weaken behaviour.

1. Positive reinforcement: Positive reinforcement occurs when the introduction of
a consequence increases or maintains the frequency or future probability of a behaviour.
Receiving a bonus after successfully completing an important project usually creates a
positive reinforcement.

Behaviour
what person
says or does
Antecedents
what happens
before behaviour
Consequences
what happens
after behaviour
2. Negative reinforcement: Negative reinforcement occurs when the removal or
avoidance of a consequence increases or maintains the frequency or future probability of
behaviors. Superiors apply negative reinforcement when they stop criticizing employees
whose substandard performance has improved negative reinforcement is sometimes
called avoidance learning.
3. Punishment: Punishment occurs when a consequence decreases the frequency
or future probability of a behavior. It may occur by the supervisors introducing an
unpleasant consequences or removing a pleasant consequence. Example Employee is
threatened with a demotion or discharge after treating client badly.

4. Extinction: Extinction occurs when the target behaviour decreases because no
consequence follows it. Behaviour that is no longer reinforced tends to disappear, it
becomes extinct. In this respect extinction is a do-nothing strategy. The following figure
illustrates the types of contingencies.

What contingency of reinforcement should be used in the learning process? In
most situations, positive reinforcement should follow desired behaviour and extinction
should follow undesirable behaviours. This is because there are fever adverse
consequences when applying these contingencies compared with punishment and
negative reinforcement. However, some form of punishment may be necessary for
extreme behaviour such as stealing inventory and punishment maintains a sense of
equity, However, Punishment and negative reinforcement should be applied cautiously
because they generate negative emotions and attitudes towards the punisher and
organization.

1. Schedules of Reinforcement

The most effective schedule of reinforcement for learning new tasks is continuous
reinforcement. Employees learn desire behaviours quickly and when the reinforcement is
removed, extinction also occurs very quickly.
A variable interval schedule is common for promotions.
Fixed ratio schedule reinforcement after a fixed number of behaviour
Companies often use a variable ratio schedule in which employee behaviour is reinforced
after a variable number of times. Sales people experience showed that variable ratio
reinforcement is good because they make a successful sale after a varying number of
client calls. The variable ratio schedule is a low cost way to reinforce behaviour because
employees are rewarded infrequently.

Social Learning Theory: Learning by observing

Social learning theory states that much learning occurs by observing others and
then modeling the behaviours that lead to favourable outcomes ad outstanding behaviours
that lead to punishing consequences. Three related features of social learning theory are:
behavioural modeling, learning behaviour consequences and self reinforcement.


(1) Behaviour modeling:

People learn by observing the behaviour of a role model on the critical tasks,
remembering the important elements of the observed behaviour and then practicing those
respected and the models action are followed by favourable consequences. It is valuable
form learning because tacit knowledge and skills are mainly acquired from other in this
way.
(2) Learning behaviour consequences

This element learning theory says that we learn by logically thinking through the
consequences of our actions.
(iii) Self Reinforcement: Self Reinforcement occurs whenever an employee has control
over a reinforcement but does not take the reinforcement until completing a self set
goal. Reinforcement has become increasingly important because employees are given
more control over their working lives and are less dependent on supervisors.

Learning Theory Experience

Kolbs experiential learning model illustrates experiential learning as a cyclical
four stage process.









Concrete experience involves sensory and emotional engagement in some
activity. It is followed by reflective observation, which involves listening, watching
recording and elaborating on the experience. The next stage in the learning cycle is
abstract conceptualization. This is the stage in which we develop concepts and integrate
are observations in to logically sound theories. The fourth stage, active experimentation,
occurs when we test our previous experience reflection and conceptualization in a
particular context.

Learning through experience works best where there is a strong learning
orientation. The fastest growing form of experiential learning in the workplace is called
action learning. Action learning is considered one of the most important ways to develop
executive competencies.





Active
experimentation
Concrete
experience
Reflective
observation
Abstract
conceptualisa
tion
Learning Theories

Learning theories can be grouped in to three categories.

(i) Conditioning theory /connectionist/behaviouristic theory.
(ii) Cognitive learning theory and
(iii) Social learning theory.

I conditioning theory

Conditioning is the process in which an ineffective object or situation becomes so
much effective that it mach the hidden response apparent. This is based on the premise
that learning is establishing association between response and stimulus conditioning has
two theories (a) classical conditioning and (b) operant conditioning.

(a) Classical conditioning: Classical conditioning states that behaviour is learned by
repetitive association between a stimulus and a response (S R association) four elements
are always present in classical conditioning (i) unconditioned stimulus (US) (ii)
Unconditioned response (UR) (iii) conditioned stimulus (CS) (iv) Conditioned Response
(CR). The work of the famous Russian physiologist and Nobel Prize winner, Ivan Pavlov
demonstrated the classical conditioning process. Classical conditioning theory
experimented with a dog is presented in the follow figure.

I Before conditioning

Meat (US) Salivation (UR)

Bell (Neutral stimulus) No response

II During conditioning

Meat (US) + Bell (CS) Salivation (UR)

III After conditioning

Bell (CS) Salivation (CR)

Classical conditioning has some important implications for understanding
human behavior. Another implication of higher-order conditioning is that reinforcement
can be acquired. A conditioned stimulus becomes reinforcing under higher order
conditioning. This shows the importance of secondary rewards (higher order
conditioning) in organization. However, this theory fails to explain total behavior of
human being.



(b) Operant conditioning:

Operant is defined as behaviour that produces effects. Operant conditioning
suggests that people emit responses that are rewarded and will not emit responses that are
either not rewarded or punished. Operant conditioning implies that behavior is voluntary
and it is determined maintained and controlled by its consequences. The basic principle
of learning new behavior involves the relationship between three elements.

1. Stimulus situation
2. Behaviour response to the person.
3. Consequence of the response to the person.
Example - application of brake by vehicle driver to avoid accident.
Fear of accident (without application brake) stimulus situation
Application of brake behavioural response
Avoidance of accident consequence of response
Management can use the operant conditioning process successfully to control and
influence the behaviour of employees by designing the suitable reward system. Operant
conditioning leads to a very comprehensive approach to reinforcement and behaviour
modification.



(ii) Cognitive Learning theory

Cognition refers to an individuals ideas, thoughts, knowledge, interpretations
and understanding about himself and his environment. The cognitive approach
emphasizes the positive and free will aspects of human behaviour. This model was
developed from the work done by Tolman. According to this theory of learning,

(i) Stimulus (s) leads to another stimulus or S-S rather than the classical S-R or the
operant (R-S) explanation and
(ii) Learning consists of a relationship between cognitive environmental cues and
expectation and behaviour is goal-directed.

This theory has relevance in the field of motivation. Various expectancy theories of
motivation derive clues from cognitive theory of learning.

III Social Learning theory:

Social learning theory combines and integrates both behaviouristic cognitive
concepts and emphasizes the integrative nature of cognitive, behavioural and
environmental determinants. According to social learning theory, learning occurs in two
steps.

(i) The person observes how others act and then acquires a mental picture of the act and
its consequences (reward & Punishment)
(ii) The person acts out the acquired image and if the consequences are positive he will
tend to do it again If the consequences are negative the person will not do it again
A simple example of this phenomenon is that people learn that fire burns the body is
learned from others and not necessarily by touching the fire.

Integrating various Learning Theories

Though the various learning theories differ in their orientation, all theories try
to explain the logic behind learning process. Each theory focuses on a specific feature of
learning and does not fully explain the phenomena of learning in all situations.
Therefore, to understand how learning takes place, we have to take all these theories in an
integrated way.

Learning Organisation;

Organisation learning is process a set actions when learning organization is an entity.
Garvin has defined a learning organization as A learning organization is one which is
skilled at creating, acquiring and transferring knowledge and modifying its behaviour t
reflect new knowledge and insights.


Decision making models

There are three decision making models. They are (i) Rational (ii) Bounded Rationality
and (iii) Political

(i) Rational Model:

The rational model involves a process for choosing among alternatives to
maximize benefits to an organization. It includes comprehensive problem definition
throughout data collection and analysis and a careful assessment of alternatives.
Individual preferences and organizational choices are a function of the best alternative for
the entire organization. The rational model of decision making is based on the explicit
assumptions that (1) all available information concerning alternatives has been obtained
(2) These alternatives can be ranked according to explicit criteria and (3) the alternative
selected will provide the maximum gain possible for the organization.

Xerox six stages process: Xerox developed a companywide six stages rational process for
guiding decision making that is presented in the following table.

In terms of the individual the rational model puts a premium on logical thinking. It
encourages more deliberation including the search for critical pieces of information one
obvious limitation of the rational model is that is full use can take considerable amount of
time. The resources required to use the rational model may exceed the benefit from it.
This approach requires considerable data and information, which may be hard to obtain.
Moreover, if the situation keeps quickly become obsolete even when the rational process
is used decision makers may simply change the stated goals, criteria or weights if a
favoured alternative doesnt come out on top.

Intrapreneurship

Entrepreneurship within an existing organization or business structure is said to be
the intrapreneurship.

In the present era of hyper competition the need for new products of hyper competition,
need for new products and the intrapreneurial spirit have become so great that more and
more companies are developing an intrapreneurial environment.

Intrapreneurs:

The entrepreneurs emerging from within the organization are called
intrapreneurs.
The intrapreneurs are top executives encouraged to catch hold of new ideas to
convert them into product.



Establishing Intrapreneurship in the organization:

An organization desiring to establish an intrapreneurial environment must
implement a procedure for its creation. This is particularly true when the organization
environment is very traditional and has a record of little change and few new products
being introduced.

(i) Top Management commitment

The first step in this process is to secure a commitment to intrapreneurship in the
organization by top upper and middle management levels.

Once the top management of the organization has been committed to intrapreneurship
for sufficient period of time (at least 3 yrs) the concept is introduced throughout the
organization.

This is accomplished most effectively through seminars, where the aspects of
intrapreneurship are introduced and strategies are developed to transform the
organizational culture into a intrapereneurial one.

Once the initial framework is established and the concept embraced, intrapreneurial
leaders need to be identified selected and trained. This training needs to focus on
identifying viable opportunities and their markets and developing the appropriate
business plan.

II Ideas and General areas should be identified

Second ideas and general areas that top management is interested in
supporting should be identified along with the amount of risk money
that is available to develop the concept further.
Over all program expectations and the target results of each
imtrapreneurial venture should be established.
As much as possible these should specify the time frame, volume and
profitability requirement for the new venture, and the impact of the
organization.

(iii) Using of Technology:

Third a company needs to use technology to make it more flexible.
Technology has been used successfully for the past decade by small companies that
behave like big ones.
Similarly large companies can use technology to make themselves
responsive and flexible like smaller firms.



(iv) Provide training to employees:

Fourth the organization should be a grap of interested managers who will train
employees as well as share their train employees as well as share their experience.

The training session should be conducted on day per month for a specified period
of time.

(v) Developing the ways to get closer to it customer:

Fifth the organization needs to develop ways to get closer to its customer.
This can done by

Tapping the database
Hiring from smaller rivals.
Helping the retailer

(iv) Learn to be more productive with fewer resources:

Sixth an organization that wants to become more entrepreneurial must learn to
be more productive with fewer resources. Top heavy organiations are out of data in
todays hyper competitive environment. To accommodate the large cutbacks in middle
management, much more control has to be given to subordinates at all levels in the
organization. The span of control may become as high as 30 to 36 individuals of such
companies.
(viii) Establish strong support structure:

Seventh the organisation needs to establish a strong support structure for
intrapreneurship.This is particularly important because intrapreneruship is usually a
secondary activity in the organization. To be successful these venture requires flexible
innovative behaviour with the intrapreneurs having total authority over expenditure and
access to sufficient funds.

(Viii) Reward the entrepreneurial unit

Eighth support must also involve tying the reward to the performance of the
intrapreneurial unit. This encourages the team members to work harder and compete
more effectively since they will benefit directly from their effort.

Finally the organization needs to implement an evaluation system that allows
successful intrapreneurial units to expand and unsuccessful ones eliminated.




****