23233898 Organisation Design Development Change

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MS-10Organizational Design,

Development and Change

Indira GandhiNational Open UniversitySchool of Management Studies

Block

1UNDERSTANDING ORGANIZATIONSUNIT 1

Approaches to Understanding Organization 5

UNIT 2

Factors Affecting Organization Design 20

UnderstandingOrganizations

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BLOCK 1 UNDERSTANDINGORGANIZATIONS

This block comprises two units. The first unit deals with approaches tounderstanding organisation. In which it discusses the meaning andcharacteristics of organisation, different Approaches to Organisation and alsothe 7s model. The second unit describes the meaning, purposes and principlesof organisational design, key Factors Affecting Organisation Design and also theconcept of organisational effectiveness.


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MS-10: ORGANISATIONAL DESIGN, DEVELOPMENT AND CHANGE

Course Components

BLOCK UNIT UNIT TITLE AUDIO VIDEONOS. PROGRAMME PROGRAMME

1 . UNDERSTANDING ORGANISATIONS

1. Approaches to Understanding Organisation2. Factors Affecting Organisation Design

2 . ORGANISATIONAL DESIGN

3. Typology of Organisation Structures4. Some Basic Organisation Design and Restructuring Strategies

3 . APPROACHES TO WORK DESIGN

5. Organising and Analysing Work6. Job Design7. Emerging Issues of Work Organisation and Quality of Working Life

4 . ORGANISATIONAL ANALYSIS

8. Organisational Diagnosis: Tools and Techniques9. Questionnaire as a Diagnostic Tool

10. Interview as a Diagnostic Tool11. Workshops, Task-forces and other Methods

5 . ORGANISATIONAL DEVELOPMENT AND CHANGE

12. Organisational Development (OD)13. Alternative Interventions14. Process of Change15. Change Agents: Roles and Competencies16. Institution Building

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Introduction toMicrobesUNIT 1 APPROACHES TO UNDERSTANDING

ORGANIZATION

Objectives

By the end of this UNIT, you should be able to :

explain the meaning of organization,

describe what makes the business organization different from other socialcollectivities,

explain the meaning and types of organization metaphors,

describe the framework for analyzing the strategic attributes of an organization.

Structure

1.1 Introduction

1.2 Meaning and Characteristics of Organisation

1.3 Organisation as System

1.4 Approaches to Organisation

1.5 The 7Ss Model

1.6 Summary

1.7 Self Assessment Questions

1.8 Further Readings

1.1 INTRODUCTION

Organization is a principle of life. We seek the help of organizations to meetour day to day requirements such as to feeding, clothing, educating ,entertaining, protecting etc. However, organizations are not contemporarycreations. Organizations are as old as human race. When Archaeologistsdiscovered huge temples around 3500 B.C., these monuments insinuate thatduring the recorded times not only complex organizations existed, but that thepeople in them also organized to work together towards planned goals. Theirefforts were systematically coordinated and controlled to achieve suchoutcomes. Modern society, however, has more organizations which are fulfillinga larger category of societal and personal needs. Organizations are soencompassing in the modern life that it is sometimes easy to overlook that eachmay be regarded as an entity with a specific contribution and specific goals.

1.2 MEANING AND CHARACTERISTICS OFORGANIZATION

The term organization is derived from the Greek word organon i.e., tool orinstrument. It is often been understood as the embodiment of persistent effortsto coordinate, influence and control human behavior in order to reach somedesired result. According to Chester I. Bernard, an organization is “a systemof consciously co-coordinated activities or forces of two or more persons”.

Max Weber in his ideal type defined the following features and dimensions asbasic for all organizations, distinguishing them from other social collectivities.

The organisation has transparent and definite boundaries: It signifies asocial unit which is either closed or limits the admission of outsiders. It has acollective identity of its own.


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The Organisation has a Central Coordination System: There is one locus offinal authority who make and impose binding collective decisions. Leaders atthe center manage the concentrated efforts of the organisation, making it aunitary, hierarchical actor.

The Organisation is Differentiated Internally: Internal organisational rolesare sharply differentiated and codified in rationally established formal rules.Decisions are implemented by a disciplined, specialised, continuously andrationally operating staff.

The Organisation is Legitimate: The organisational order, including thedistribution of authority, power and responsibilities, is legitimate. That is,discipline is based on a belief that actors holding certain positions have theauthority to impose orders and rules and others have a duty to obey.

The Organisation’s Characteristics Establish What is Achieved: There is ahigh degree of steadiness between organizational goals, structures, processess,behavior and outcomes. The quality of achievements depends directly onorganizational structures and processes.

The Organisation is Flexible: Organisations are rationally designed tools, andare deliberately structured and restructured in order to improve their problem-solving capacity and their ability to realize predetermined goals.

The Organisation is a part of Societal Transformation: While organizationsare seen as rationally designed instruments, their growth, increased importanceand acceptance in society also reflect a changing societal context, i.e., thesweeping transformation from traditional to modern society, with its strong faithin, and maintain rationality in current social context.

Activity A

Currently you are working in a manufacturing organization. Write thecharacteristics of your organization in the light of those mentioned above.

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1.3 ORGANIZATION AS SYSTEM

Meaning of System

A system is a set of integrated and mutually dependent parts arranged in amanner that produces a unified whole. It has been defined as “ anarrangement of interrelated parts. The words arrangement and interrelateddescribes the interdependent elements forming an entity that is the system.Thus, when taking a systems approach , one begins by identifying the individualparts and then seeks to understand the nature of their collective interaction”(Hanna, 1988).

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A system is desired to have certain qualities like:

A system must be designed to accomplish an objective/a set of objectives.

A system is composed of interrelated parts called subsystems. Thesubsystem must have an established arrangement.

Interrelationships must exist among the individual elements of a system andthese interrelationships must be synergistic in nature.

The basic ingredients (the flow of information, energy and materials) of aprocess are more vital than the basic elements of a system.

Organization objectives are more important than the objectives of itssubsystems.

Organization As Systems

Components of Organization System: Organizations are systems of someinteracting components. Levitt (1965) sets out a basic framework forunderstanding organizations. This framework emphasizes four major internalcomponents such as: task, people, technology, and structure. These fourcomponents along with the organization’s input, outputs and key elements in thetask environment are depicted in Figure 1.

The task of the organization is its mission, purpose or goal for existance. Thepeople are the human resources of the organisation. The technology is the widerange of tools, knowledge and/or techniques used to transform the inputs intooutputs. The structure is how work is designed at the micro level, as well ashow departments, divisions and the overall organisation are designed at themacro level.

In addition to these major internal components of the organisation as a system,there is organisations’ task environment, such as suppliers, customers, andregulators. In simpler terms it is that part of external environment which isrelevant at present or expected inforceable future to the organisations’ goalattainment (Thompson, 1967).

Approaches toUnderstanding

Organization

Structure

People

TechnologyTask

Organizational boundary

Task environment :Competitors, Union Regulatory, Customers

Inputs :MaterialCapitalHuman

Outputs :ProductServices

Figure 1 : The Components of Organization System

Source : Levitt, Harold (1965).


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Differentiation And Integration : Like any other systems, organization systemis characterized by two diverse forces: differentiation and integration. In asystem, specialized functions are differentiated. In the human body, for instance,the lungs, heart and liver are all distinct functions. Similarly, organisations havedivisions, departments and like units separated out to perform specializedactivities. At the same time, in order to maintain unity among the differentiatedparts and form a complete whole, every system has a reciprocal process ofintegration. In organizations, this integration is typically achieved throughmethods such as coordinated levels of hierarchy; direct supervision; and rules,procedures and policies.

The Organization As An Open System

There are two basic types of systems: open and closed. A closed system isone that is self-contained and isolated from its environment. An open system isone which constantly interacts with the environment. In the strictest sense,every worldly system is partly closed and partly open. Closed systems existonly in theory, for all real systems interact with their environment.

The characteristics of an open system are :

Subsystems: A system is composed of interrelated parts called subsystems.The subsystem must have an established arrangement and need to haveinterdependancies.

Synergy: Synergy means that the whole is greater than the sum of its parts.

The system is to be viewed as a whole, not merely the sum of its individualconsequently parts, its performance should be viewed as an integrated system.

The Input-Output Model: All open systems transform inputs into output.The system is viewed as a transformation process in dynamic interactionwith its environment.

Goal seeking-Open system: Open systems exchange information, energy ormaterial with their environment. Interaction between elements results insome final state or goal.

Entropy: Every transformation process involves the degradation or use ofenergy and resources. The tendency toward entropy is a movement towarddisorder and eventually termination of functioning. To keep a systemoperating there must be an infusion of energy and resources.

Steady State: The notion that systems are goal seeking implies that they areadaptive and self-regulating. The open system seeks a state of dynamic equilibrium.

Feedback: The feedback of information regarding performance is used toadjust and control performance. Feedback is informational input whichindicates that the system is deviating from goals and needs to readjust.

The open systems approach to organization takes its main idea from the workof Ludwig von Bertalanffy, a theoretical biologist in 1950s. But, Katz and Kahnwere the first to apply open systems theory to organizations in a comprehensiveway in 1966.

The organization as an open system is composed of five sub-systems:

Goals and values, technical, psychosocial, technical, structural, andmanagerial, which are dependent on each other.

Organization, like organisms, are “open” to their environment and strive toattain an appropriate relation with that environment in order to survive.

As an open system, it influences and is influenced by the environmentthrough the process of interdependency, which results in a dynamic(changing) equilibrium. As it is in continual interaction with its environment,therefore achieves a steady state or dynamic equilibrium.

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Like other open systems , the organization system may be expressed interms of input-output mechanisms. All systems transform inputs into outputs.The system is viewed as a transformation process in dynamic interactionwith its environment. There are three basic elements in the input/outputmodel:

i) Inputs: the resources that are applied to the processing function.

ii) Processes: the activities and functions that are performed to transform the resources.

iii) Outputs: the products and services that come out of the system

The organization system can not continue to survive without the continuousinfluence of transformational outflow like the open system it interacts with itsenvironment, continually receives information, termed feedback from itsenvironment, which helps it to adjust. Figure 2 shows the open systemmodel.

1.4 APPROACHES TO ORGANIZATION

The nature of an organization can be better understood by using differentmetaphors. A metaphor is defined as the figure of speech that characterizesone object in terms of another one. The use of metaphor implies a way ofthinking and a way of seeing that pervades how we comprehend our worldgenerally. According to Morgan, a number of metaphors can be used to thinkand explain about the nature of organization. Collectively these metaphors canbe used to engender a range of complementary and competing insights into thestrengths and weaknesses of different view points. Nevertheless, there is nospecific theory or metaphor that gives a general point of view (GarethMorgan, 1986/1997).

Inputs Transforming Mechanism

Sources of Energy, Materials, Information, Human Resources

Outputs Users

Internal Interface Feedback Mechanisms

External Interface Feedback Mechanisms

Figure 2: A System in Interaction with its Environment

Source : French and Bell, 1999


Organization

Internal InterfaceFeedback Mechanism

Source ofEnergy,Materials,Information,HumanResources

Inputs TransformingMechanism

Outputs Users

External InterfaceFeedback Mechanisms


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Morgan illustrates his ideas by exploring eight archetypical metaphors oforganisation: Machines, Organisms, Brains, Cultures, Political Systems, PsychicPrisons, Flux and Transformation, Instruments of Domination.

a) Organisations as Machines

German Sociologists Max Weber parallels between mechanisation andorganisation. He patterns his ideal type after the vaunted Prussian army andcalled it bureaucracy. Bureaucracy is explained as a form of organisation thatemphasizes precision, speed, clarity, regularity, and efficiency achievedthrough the creation of a fixed division of tasks, hierarchical supervision, anddetailed rules and regulations. He mentioned that the bureaucratic formroutinizes the process of administration exactly as the machine routinizesproduction.

Mechanistic approaches to organisation work well only under the followingconditions: (a) When there is a straightforward task to perform; (b) when theenvironment is stable enough to ensure that the products produced will beappropriate ones; (c) When one wishes to produce exactly the sameproduct time and again; (d) when precision is at a premium; and (e) when thehuman ‘machine’ parts are compliant and behave as they have been designedto do.

Mechanistic approaches to organisation have proved incredibly popular, partlybecause of their efficiency in the performance of tasks that can besuccessfully routinized and partly because they offer managers the promise oftight control over people and their activities. In stable times, the approachworked from a managerial point of view. But with the increasing pace ofsocial and economic change, its limitations have become more and moreapparent.

Its limitations are that it: (a) can create organisational forms that have greatimpediment in adapting to changing circumstances; (b) can result in mindlessand automatic bureaucracy; (c) can have unforeseen and undesirableconsequences as the interests of those working in the organisation takeprecedence over the goals the organisation was designed to achieve; and (d)can have dehumanizing effects upon employees, particularly those at the lowerlevels of the organisation hierarchy.

b) Organisations as Organisms

Morgan parallels between organisms and organisations in terms of organicfunctioning, relations with the environment, relations between species, and thewider ecology. The organism metaphor focuses on the following:

Organizations as “open systems”.

The process of a adapting organizations to environements.

Organizational life cycles.

Factors influencing organizational health and development .

Different species of organization.

The relations between species and their ecology.

The organism metaphor views organization as a living system striving to survivein an uncertain environment.

c) Organizations as Brains

This approach to understanding organization, originally known as “the decision-making approach,” was pioneered in the 1940s and 1950s by Nobel prize

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winner Herbert Simon and colleagues like James March .Exploring the parallelsbetween human decision making and organizational decision making, Simon isfamous for arguing that organizations can never be perfectly rational becausetheir members have limited information processing abilities. Arguing that people:(a) usually have to act on the basis of deficient information about possiblecourses of action and their consequences, (b) are able to explore only alimited number of alternatives relating to any given decision, and (c) areunable to attach accurate values to outcomes, Simon challenged theassumptions made in economics about the optimizing behavior of individuals.He concluded that individuals and organizations settle for a “bounded rationality”of “good enough” decisions based on simple rules of thumb and limited searchand information.

d) Organizations as Cultures

Organizations are mini-societies that have their own distinctive patterns ofculture and subculture. Culture is a modern concept used in ananthropological and social sense to refer broadly to “civilization” and “socialheritage”. This meaning of the word did not appear in an English dictionaryuntil the 1920s. Its increasing use within the social sciences has led todefinitions of varying generality, which develop in a host of ways. Taylor’s(1871) view that “culture, or civilization… is that complex whole whichincludes knowledge, belief, art, law , morals, custom, and any othercapabilities and habits acquired by man as a member of society”. Kroeberand Kluckhohn (1952), have identified almost 300 definitions, and they providea detailed analysis of 164.

There is a growing literature of relevance to understanding how organizationcan be understood as a cultural phenomenon. Durkheim (1934), Weber(1947), Parsons (1973), and Harris (1979) provide valuable sociologicalanalyses. Durkheim (1934) is particularly valuable for understanding therelationship between culture and industrialization. Kerr et al. (1964) explorethe similarities in the structure of all kinds of industrial societies. Theapproach known as “Institutional theory” has developed the broad traditionby examining the links between organization and social context, revealing howboth are intertwined in the most fundamental sense. Sahlins (1972) helps usto see the distinctive nature of modern society through comparisons withStone Age society.

The greatest strength of this metaphor is that it shows how organizations restsin shared systems of meaning, values, ideologies, beliefs, norms, and other socialpractices that ultimately shape and guide organized action.

e) Organizations as Political Systems

Organisations can be understood as mini-states where the relationshipbetween individual and society parallel by the relationship between individualand organization. There are three frames of references that are quiterelevant for understanding organizations as political systems. The pluralistframe of reference emphasizes the plural nature of interests, conflicts, andsources of power that shape organisational life. The unitary frame ofreference views that society can be considered as an integrated wholewhere the interests of individuals and society are synonymous. And theradical frame of reference views society as comprising antagonistic classinterests, characterizes by deep rooted social and political cleavages andhold together as much by coercion as by consent. These three views arepresented in Table 1.


Organization


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Table 1 : Unitary, Pluralist, And Radical Frames Of Reference

Unitary Pluralist Radical

Interests Emphasis: on theachievement of commonobjectives.

View: The organizationis viewed as beingunited under theumbrella of commongoals and strivingtoward theirachievement in themanner of a wellintegrated team.

Emphasis: on thediversity of individualand group interests.

View: The organizationis regarded as a loosecoalition that has justa passing interest inthe formal goals of theorganization.

Emphasis: on theoppositional natureof contradictory“class” interests.View: Organizationis viewed as abattleground whererival forces (e.g.,management andunions) strive forthe achievement oflargely incompatibleends.

Conflict Regards organisationalconflict as a rare andtransient phenomenonthat can be removedthrough appropriatemanagerial action.Where it does arise it isusually attributed to theactivities of deviantsand troublemakers.

Regards organisationalconflict as an inherentand ineradicablecharacteristic oforganizational affairsand stresses itspotentially positive orfunctional aspects.

Regardsorganizationalconflict asinevitable and aspart of a widerclass conflict thatwill eventuallychange the wholestructure ofsociety. It isrecognized thatconflict may besuppressed andthus often exists asa latent rather thanmanifestcharacteristic ofboth organizationsand society.

Power Largely ignores the roleof power inorganizational life.Concepts such asauthority, leadership,and control tend to bepreferred means ofdescribing themanagerial prerogativeof guiding theorganization toward theachievement of commoninterest

Regards power as acrucial variable. Poweris the medium throughwhich conflicts ofinterests are alleviatedand resolved. Theorganization is viewedas a plurality of powerholders drawing theirpower from multiplesources.

Regards power asa key feature oforganization, but aphenomenon thatis unequallydistributed andfollows callsdivisions. Powerrelations inorganizations areviewed asreflections ofpower relations insociety at largeand as closelylinked to widerprocesses of socialcontrol (e.g.,control ofeconomic power,the legal system,and education).

Source: Burrell and Morgan, 1979.

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f) Organizations as Psychic Prisons

The idea of psychic prison was first appeared in Plato’s The Republic. Thismetaphor plays a powerful role in drawing attention to the ethical dimension oforganisation. It shows that we have over-rationalized our understanding oforganisation. Both in our behaviour in organisations and in our explanations oforganisations, factors such as aggression, greed, fear, hate, and libidinal driveshave no official standing. When they do break into the open, they are usuallyquickly banished through apologies, rationalizations and punishments designedto restore a more neutered state of affairs. It has placed considerableemphasis on understanding and dealing with unconscious patterns of behaviorand control.

g) Organisations as Flux and Transformation

This metaphor throws ideas about chaos, complexity, mutual causality etc. Foursets of ideas explored by Morgan in this context are:

The Theory of Autopoiesis: The theory of autopoiesis was first developed inChile in the 1960s and early 1970s by Maturana and Varela. The theory ofautopoiesis suggests that the way we see and manage change is ultimately aproduct of how we see and think about ourselves, hence how we enactrelationships with the environment.

The Lens of Chaos and Complexity Theory: Through the lens of chaos andcomplexity theory we begin to learn that “organisations” and their relationshipwith “the environment” are part of an “attractor pattern”. Key organizingrules- implanted in various aspects of structure, culture, information, mind-sets,beliefs, and perceived identity- tend to hold organisation-environment relations ina particular configuration. When pushed into “edge of chaos” situations thebasic pattern can turn into new forms. The managerial challenge rests innudging system into desired trajectories by initiating small changes that canproduce large effects.

Theory of Mutual Causality: The theory of mutual causality encourages usto understand these “attractor patterns” and the processes of change in termsof the positive and negative feedback loops that define complete fields ofrelations.

The Lens of Dialectical Analysis: The emphasis is placed under this approachon understanding the paradoxes and tensions that are created wheneverelements of a system try to push in a particular direction. Each phase ofdevelopment sets up conditions leading to its own transformation. It invites us tofind ways through which key tensions can be reframed to create new paths ofdevelopment.

h) Organisations as Instruments of Domination

Throughout history, organisation has been associated with processes of socialdomination where individuals or groups find ways of imposing their will onothers. In the view of some organisation theorists, the blend of achievementand exploitation is a feature of organisation throughout the ages. Organisation inthis view, is best understood as a process of domination. This aspect oforganisation has been made a special focus of study by radical organisationtheorists inspired by the insights of Karl Marx and two other very famoussociologists: Max Weber and Robert Michels.


Organization


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Weber identified three types of social domination that could become legitimateforms of authority or power. He called these the charismatic, the traditional,and the rational-legal. These are mentioned in Table 2.

Table 2: Weber’s Typology Of Domination

Charismatic domination occurs when a leader rules by virtue of his or her personalqualities. Legitimacy of rule is grounded in the faith that the ruled vest in theleader.Traditional domination occurs when the power to rule is underwritten by arespect for tradition and the past. Legitimacy is vested in custom and in a feelingof the “rightness” of traditional ways of doing things.Rational-legal domination,Under this model, power is legitimized by laws, rules, regulations, and procedures.The ruler can thus attain legitimate power only by following the legal proceduresthat specify how the ruler is to be appointed.

Source: Mouzelis, 1979.

A synoptic view of all the metaphors is given in the following Table 3.

Table 3: A Synoptic View of All The Organization Metaphors

Archetypical Metaphors for Organisations(and associated concepts)

Machines:

Efficiency, waste, maintenance, order, clockwork, cogs in a wheel, programmes,inputs and outputs, The Model standardization, production, measurement andcontrol, design

Organisms:

Living systems, environmental conditions, adaptation, life cycles, recycling, needs,homeostasis, evolution, survival of the fittest, health, illness.

Brains:

Learning, parallel information processing, distributed control, mindsets, intelligence,feedback, requisite variety, knowledge, networks.

Cultures:

Society, values, beliefs, laws, ideology, rituals, diversity, traditions, history, service,shared vision and mission, understanding, qualities, families.

Political Systems:

Interests and rights, power, hidden agendas and back room deals, authority,alliances, party-line, censorship, gatekeepers, leaders, conflict management.

Psychic Prisons:

Conscious & unconscious processes, repression & regression, ego, denial,projection, coping & defence mechanisms, pain & pleasure principle, dysfunction,workaholics.

Flux and Transformation:

Constant change, dynamic equilibrium, flow, self-organization, systemic wisdom,attractors, chaos, complexity, butterfly effect, emergent properties, dialectics,paradox.

Instruments of Domination:

Alienation, repression, imposing values, compliance, charisma, maintenance ofpower, force, exploitation, divide and rule, discrimination, corporate interest.

Source: Morgan, Gareth, 1986/1997.

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Activity B

Is it appropriate to view your organization as an open system? Give reasons.

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1.5 7Ss MODEL

The Seven S Framework was first appeared in “The Art Of JapaneseManagement” by Richard Pascale and Anthony Athos in 1981. It was born ata meeting of the four authors namely Richard Pascale, Anthony Athos, TomPeters, and Robert Waterman in 1978 and come into sight in “In Search ofExcellence” by Peters and Waterman. The global management consultancyMcKinsey has taken up it as a basic tool , therefore at times it is known asthe McKinsey 7S Model. There are seven Ss in the Model and each of theSs is presented in Figure 3 and elaborated in Table 4.There is no particularorder to the 7Ss.

Figure 3: The 7Ss Model


Organization

STRUCTURE

STRATEGY SYSTEMS

SUPER-ORDINATE

GOALS

SKILLS STYLE

STAFF


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Table 4: Details of the 7 Ss.

Strategy A set of actions that the company starts with and which it mustmaintain. It also means the integrated vision and direction of thecompany, as well as the manner in which it derives, articulates,communicates and implements that vision and direction.

Structure How people and tasks / work are organized, the policies andprocedures which govern the way in which the organisation actswithin itself and within its environment, the organigram (e.g.hierarchical or flat) as well as the group and ownership structure.

Systems All the processes and information flows that link the organisationtogether, the decision making systems within the organisation that canrange from management intuition, to structured computer systems tocomplex expert systems and artificial intelligence. It also includescomputer systems, operational systems, HR systems, etc.

Style How managers behave, leadership style, employees share and commonway of thinking and behaving - unwritten norms of behaviour andthought, organisational culture etc.

Staff How the company develops managers (current and future), selection,training, reward and recognition, retention, motivation and assignmentto employees appropriate work etc.

Super- Longer-term vision, and all that values stuff, that shapes the destiny ofordinate the organization. Shared values means that the employees share the same

Goals guiding values. Values are things that one would strive for even ifthey were demonstrably not profitable. Values act as an organisation’sconscience, providing guidance in times of crisis.

Skills Dominant attributes or capabilities that exist in the organization. Itrefers to the fact that employees have the skills needed to carry outthe company’s strategy. Training and Development - ensuring peopleknow how to do their jobs and stay up to date with the latesttechniques.

These seven are often subdivided into the first three (strategy, structure andsystems), considered as the “hardware” of success whilst the last four (style,staff, skills and shared values) are seen as the “software”. Companies, inwhich these soft elements are present, are usually more successful at theimplementation of strategy. All seven are interrelated, so a change in one hasa ripple effect on all the others.

The contending opposites of the 7Ss are mentioned in the following Table.

Table 5: The contending opposites of the 7Ss

Strategy Planned <====> OpportunisticStructure Elitist <====> PluralistSystems Mandatory <====> DiscretionaryStyle Managerial <====> TransformationalStaff Collegiality <====> IndividualityShared Values Hard Minds <====> Soft HeartsSkills Maximise <====> “Meta-mise”

Source: www. McKinsey’s 7-S and Pascale’s Adaptation Thereof.html

Strategy:

Planned versus Opportunistic

Organisations need both planned and opportunistic tendencies, but the key tosuccess lies in the in a dynamic blend thereof. Opportunistic responses oftenform the content of a new direction whilst strategic thinking identifies the underlyingcontext. Strategy formulation is the search for a new business paradigm.

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There are two types of paradigms that apply to management, namely thebusiness and the organisational or managerial paradigms. The business paradigmdefines a company’s position in the marketplace with respect to customers,technology and products. The organisational or managerial strategy relate tosuppositions on how the company inspires and co-ordinates collective activity,their fundamental assumptions about human beings at work and theirexpectations concerning their capabilities Strategy causes us to query the basicpremises on which all else rests. Strategic thinking involves the understandingof basic economics of business; identifying one’s sources of competitiveadvantage, and allocating resources to ensure that ones distinctive capabilitiesremain strong.

Structure:

Elitist versus Pluralist

Functional superiority can only be achieved if there is enough reliability andfocus within each business unit. Pascale uses the term “elites” to describethose specialised organisational units with closeness to power and/or superiorcapability. These functions signify a particular organisation’s typical capability.It is, however, important that more than one such elite function exist. Theyneed to be complementary so as to make sure that they serve as a check onanother.

Pascale uses the term “pluralist” to explain these essential forces that play aimportant role in decision making. The tension that is created amongst theseforces stimulates thoughts and lead to self-improvement and competitiveness.

Elite functions bring main strengths to an organisation, but must assist with thewhole (plurality) to attain shared results.The stronger and more competent theelites are, the more difficult it is to achieve cross-functional teamwork. Theorganisation’s challenge is therefore to ensure that these functions are on a parwith that of competition, but at the same time they need to ensure that theyrespond to market demands by cutting across these functional compartments.

Systems:

Mandatory versus Discretionary

Systems do not only refer to hard copy reports and procedures but also toinformal mechanisms such as meetings and conflict management routines. It isimportant that systems emphasise key themes, but at the same time it shouldpermit discretion and exception. Systems are powerful influences ofbehaviour. Although well-managed companies try to get rid of inconsistencies bycreating good fit, they must guard against inward-centredness, which couldrestrain the business.

Style:

Managerial versus Transformational

Pascale defines “managerial” as an administrative orientation whose aim is toget the maximum out of the existing organisation whilst a transformationalorientation aims at quantum leaps in performance. The focus is on creating anew order of the things. The managerial approach is more project thanprocess focused.

Staff:

Collegiality versus Individuality

Collegiality refers to the supportive relationships and teamwork and inorganisations where this is present , one will find communal tendencies in the


Organization


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form of consistent social rules and common identities. Such a well-constructednetwork can make employees feel independent but yet still part of the coherentwhole.

Shared Values:

Hard Minds versus Soft Hearts

“Hard minds” refers to the financial performance of an organisation.According to Pascale, an enterprise that cannot generate a profit is not addingenough value to perpetuate its right to exit, but when short-term profits areover-emphasised, a company’s long-term competitive position can be sacrificed.Hard minds drive for financial results and this drive manifest itself in apreoccupation with concrete, bottom-line results. Hard-minded values are tied togoals that are unambiguous and quantifiable.

Soft hearted values, on the other hand, pertain to intangibles that are tied tohigher-order ideals that affects employees (treating them with dignity),customers (treating them with fairness) and society (making a socialcontribution). Soft hearts act as a counterweight to tangible financial goals.

Skills:

Maximise versus “Meta-Mise”

A company’s skills can include hard assets such as financial strengths anddominant market share, but it takes the human and managerial input to convertthese into a sustainable competitive advantage.

Pascale uses the terms “maximise” and “meta-mise” to describe a company’sdecision to decide whether it should be getting better at what it is already goodat or whether it should be looking toward higher order capabilities that arebeyond the old.

Activity C

Is it appropriate to consider the metaphor that envisions organization as an orchestra?

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Activity D

List out the name of the organizations directly affecting your day to day lifetoday.

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1.6 SUMMARY

Organization is a system of consciously coordinated activities of two or morepersons in order to achieve a common goal. It is a system of four majorinternal interacting components such as: task, people, technology and structure.Organisations are said to be open systems. A number of metaphors can beused to think and explain about the nature of organization. Morgan exploreseight archetypical metaphors of organisation: Machines, Organisms, Brains,Cultures, Political Systems, Psychic Prisons, Flux and Transformation, Instrumentsof Domination. However, there is no specific theory or metaphor that gives ageneral point of view. The 7Ss framework provides a useful framework foranalysing the strategic attributes of an organisation. Of these 7Ss, strategy,structure and systems are considered as the “hardware” whilst style, staff, skillsand shared values are considered as the “software” of success.

1.7 SELF ASSESSMENT QUESTIONS

1. Discuss the meaning and characteristics of an organisation.

2. Describe how organisation acts as a system.

3. What are the different approaches to organisation?

4. Explain the 7s model.

1.8 FURTHER READINGS

Brunsson, Nils and Olsen, Johan P. (2000), Organizing Organisations, VivaBooks Private Limited, New Delhi.

Burrell, G. and G. Morgan (1979), Sociological Paradigms andOrganisational Analysis, Heinemann Educational Books, London.

Hanna, David P.(1988), Designing Organizations for high Performance,Reading, MA: Addison-Wesley Publishing Company, p.8.

Levitt, Harold (1965), “Applied Organisational Change in in Industry: Structural,Technological, and Humanistic Approaches”, in March, J.G, ed., Handbook ofOrganisations, Rand McNally, Chicago, p.1145.

Morgan, Gareth (1986/1997), Images of Organisation, Sage Publications.

Mouzelis, N. ( 1979),Organization and Bureaucracy ( 2nd ed.), Routledge& Kegan Paul, London.

Weber, M.(1978), Markets and Hierarchies: Analysis and AntitrustImplications, New York: Free Press.

www.\McKinsey’s 7-S and Pascale’s Adaptation Thereof.htm


Organization


20

UNIT 2 FACTORS AFFECTINGORGANIZATION DESIGN

At the end of this UNIT, you should be able to understand:

the meaning of organization design,

various objectives of organization design,

different principles of organization design,

theories of organization design,

important factors affecting organization design,

meaning of organization effectiveness,

criteria to measure effectiveness.

Structure

2.1 Introduction

2.2 Meaning of Organizational Design

2.3 Purposes of The Organization Design

2.4 Principles of Good Organizational Design

2.5 Theories of Organization Design

2.6 Key Factors Affecting Organization Design

2.7 Other Factors

2.8 Organizational Effectiveness

2.9 Summary



2.1 INTRODUCTION

Technological advancement has brought about far-reaching changes in themethods of work and also in the organisation design. Globalisation of market,changing methods of production, economic instability etc. over the factors whichaffect the organisation designing. It is in this context, the present unit seeks toanalyse this concept and to outline the principles and theories associated with it.

2.2 MEANING OF ORGANIZATIONAL DESIGN

The term ‘organizational design’ refers to how various parts of the organizationand the distinct elements are brought together to make it. It considers both,how these elements match together and ways in which they may be analyzedand improved.

The design aspects broadly include how the organization is structured, the typesand numbers of jobs, and the processes and procedures used to:

handle and pass information;

make decisions;

produce results;

manage quality;

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communicate information;

plan, develop and manage resources;

innovate and handle crises (Cushway and Lodge, 2002).

2.3 PURPOSES OF THE ORGANIZATION DESIGN

Broadly an organization is designed to realize a number of objectives. Thesecould be:

to support the organization’s strategy. The structure should be designed insuch a way as to assure the realization of the organization’s goals and objectives;

to arrange resources in the most efficient and effective way;

to provide for the effective division of tasks and accountabilities amongindividuals and groups;

to ensure effective co-ordination of the organization’s activities and clarifythe decision-making processes;

to enhance and elucidate the lines of communication up, down and acrossthe organization;

to permit for the effective monitoring and review of the organization’sactivities;

to endow with mechanisms for coping with change in markets, products andthe internal and external environments;

to aid the handling of crises and problems;

to help to motivate, manage and give job satisfaction to individual membersof the organization; and

to provide for management succession (Cushway and Lodge, 2002).

2.4 PRINCIPLES OF GOOD ORGANIZATIONALDESIGN

A good organization design should go along with the following principles:

The various parts of the structure should be divided into specialist areas.These specialist areas need to be interlinked.

The number of levels in the structure, sometimes referred to as the scalarchain, should be as few as possible.

The span of control, i.e, the number of subordinates directly managed, willvary according to the nature of the jobs and the organization, but it shouldnot be so narrow that it results in a structure with too many levels, or toobroad to allow effective management.

There should be what has been described as unity of command. For this thereporting positions and authority need to be clearly defined.

Every post in the structure should have a clear role and add value to theway the organization functions.

The extent to which the organization should be centralized or decentralizedwill need to be determined by reference to a number of factors. Theseinclude, the nature and type of industry, geographical dispersion, history,environment, resources available etc.

The structure must be designed to take account of changes in theenvironment, which can include the economy, legislation, markets, technologicaldevelopments, geography, cultural environment, and social environment.

Factors AffectingOrganization Design


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2.5 THEORIES OF ORGANIZATION DESIGN

Basically, there are two theories of organization design : universalistic &contingency theories. The universalistic theory assumes that there is “one bestway” to organize. It means the maximum organizational performance comesfrom the maximum level of a structural variable, for instance, specialization(Taylor, 1947). Classical management is an earlier organizational theory thatargue that maximum organizational performance results from maximumformalization and specialization and it is therefore a universalistic type of theory.Similarly, neo-human relations is also an earlier universalistic type oforganizational theory, which claims that organizational performance is maximizedby maximizing participation (Likert, 1961).

Contingency theory differs from all such universalistic theories in that it seesmaximum performance as resulting from adopting, not the maximum, but ratherthe appropriate level of the structural variable that fits the contingency.Therefore, the optimal structural level is seldom the maximum, and which levelis optimal is dependent upon the level of the contingency variable.

A contingency is a variable that moderates the effect of an organizationalcharacteristics on organizational performance. At the most abstract level, thecontingency approach says that the effect of the variable on another dependsupon some third variable. The third variable moderates the relationship betweentwo variables and can therefore be called a moderator of the relationship or aconditioning variable of the relationship (Galtung 1967). In the contingencytheory of organizations, the relationship is between some characteristic of theorganization and effectiveness. Thus the contingency factor determines whichcharacteristic produces high levels of effectiveness of the organization (or somepart of it, such as a department of individual member).

As much of the contingency theory research has studied organizationalstructure this tradition is referred to as structural contingency theory. Structuralcontingency theory contains three core elements that together form its corearchetype.

First, there is an association between contingency and the organizational structure.

Second, contingency determines the organizational structure, because anorganization that changes its contingency then, in consequence, changes itsstructure.

Third, there is a fit of some level of the organizational structural variable toeach level of the contingency, which leads to higher performance, whereasmisfit leads to lower performance. This fit-performance relationship is the heartof the contingency theory paradigm. It provides the theoretical explanation ofthe first two points.

2.6 KEY FACTORS AFFECTING ORGANIZATIONDESIGN

The selection of an appropriate design is reliant upon several factors.However the primary factors that often affect organization design are : size,environment, strategy, and technology. Table 1 identifies some indicators foreach of the four primary factors.

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Table 1: Factors in Organization Design Decisions

Factors Indicators

Size Large Small

Environment Degree of complexityDegree of dynamism

Strategy and Goals Low costDifferentiationFocused

Technology Task interdependence

I. Size and Organization Design

Size is a main contingency factor that affects several aspects of structure.The size contingency refers to the total number of employees who are to beorganized.

Size as a key structural variable is subject to two schools of thought. The firstapproach, often called the “bigger is better” model, presupposes that the per-unit cost of production decreases as the organization grows. In effect, biggeris said to be more efficient. The second approach i.e. “small is beautiful”revolves on the law of diminishing returns. This approach asserts thatoversized organizations and subunits tend to be beleaguered by costly behavioralproblems. Large and impersonal organizations are said to trigger apathy andalienation, with resulting problems such as turnover and absenteeism. Twostrong promoters of this second approach are Peters and Waterman, theauthors of the best-selling In Search of Excellence

Recent research hints that when designing their organizations, managers shouldstick to a middle ground between “bigger is better” and “small is beautiful”because both models have been oversold. In reality, a newer viewpoint sayscomplexity, not size, is the central issue. A meta-analysis of 31 studies(Gooding and Wagner III, 1985) conducted between 1931 and 1985 that relatedorganizational size to performance found:

Larger organizations (in terms of assets) tended to be more productive (interms of sales and profits).

There was “no positive relationship between organizational size andefficiency, suggesting the absence of net economy of scale effects.”

There was zero to slightly negative relationship between subunit size andproductivity and efficiency.

A more recent study examined the relationship between organizational sizeand employee turnover over a period of 65 months. Turnover was unrelatedto organizational size.

Striving for Small Units in Big Organizations : In summary, bigger is notessentially better and small is not essentially beautiful. Hard-and-fast numbersregarding precisely how big is too big or how small is too small are hard toobtain. The best that managers can do is check the productivity, quality, andefficiency of divisions, departments, and profit centers.



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Activity A

In your opinion, whether a small or big organization is more effective? Givereason for your stand.

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II. Environment and Organizational Design

Organizations, as open systems, need to receive various inputs from theenvironment and to sell various outputs to their environment. Therefore, it isimportant to comprehend what the environment is and what elements are likelyto be important.

The environment of an organization may be defined as general or specific. Thegeneral environment is the set of cultural, economic, legal-political, and societalconditions within the areas in which the organization operates. The specificenvironment constitutes its owners, suppliers, distributors, government agencies,and competitors with which an organization must interact to grow and survive.A firm, typically, much more concerned over the composition of its specificenvironment than of its general environment.

Environmental Complexity

Environmental complexity is an estimate of the magnitude of the problem andopportunities in the organization’s environment. This is identified by threemain factors: the degree of richness, the degree of interdependence, and thedegree of uncertainty stemming from both the general and the specificenvironment.

a) Environmental Richness

For business, a richer environment means the economic conditions areimproving, customers are spending more money, and suppliers (such as banks)are willing to invest in the future of the organization. A richer environment isalso filled with more opportunities and dynamism, i.e., the capability for change.The organizational design must enable the company to be proverbial with theseopportunities and capitalize on them. The opposite of richness is decline.

b) Environmental Interdependence

The link between external interdependence and organizational design is oftenrestrained and indirect. The organization may choose powerful outsiders byincluding them. For instance, many large corporations have financialrepresentatives from banks and insurance companies on their boards ofdirectors. The organization may also adjust its overall design strategy to absorbor safeguard the demands of a more powerful external element.

c) Uncertainty and Volatility

Environmental uncertainty and unpredictable volatility can be particularlydamaging to large bureaucracies. The obvious organizational design response touncertainty and volatility is to go for a more organic form. However at theextremes, that ensures flexibility and is more adaptive to environment movementtoward an adhocracy may be important.

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Using Alliances Where Environmental Factors Dominate

In high-tech areas, such as robotics, semiconductors, and advanced materials(ceramics and carbon fibers), a single company often lacks all the knowledgeessential to bring new products to the market. In this case, the organizationaldesign must go beyond the boundaries of the organization and enter into aninter-firm alliances, which means announcing cooperative agreements or jointventures between two independent firms. In Japan, alliance amount wellestablished firms in many industries are quit common. The network ofrelationship is called a Keiretsu.

Keiretsu is a Japanese word which, translated literally, means headlesscombine. It is the name given to a form of corporate structure in which anumber of organizations link together, usually by taking small stakes in eachother and usually as a result of having a close business relationship, often assuppliers to each other. The structure, frequently likened to a spider’s webwas very much admired in the 1990s.

Activity B

In recent years strategic emphasis is laid upon joint ventures or corporatealliances. Write the rationale behind it.

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Differentiation and Integration: The Lawrence and Lorsch Study

In their classic text, Organization and Environment, Harvard researchersPaul Lawrence and Jay Lorsch explained how two structural forcessimultaneously disintegrate the organization and combine it together. Theycautioned that an imbalance between these two forces could hold backorganizational effectiveness.

Differentiation occurs through division of labor and technical specialization.Integration occurs when specialists cooperate to achieve a common goal. Inthe Lawrence and Lorsch model, integration can be achieved through variouscombinations of the following six mechanisms: (1) a formal hierarchy;(2) standardized policies, rules, and procedures; (3) departmentalization;(4) committees and cross-functional teams; (5) human relations training, and(6) individuals and groups acting as liaisons between specialists. WhenLawrence and Lorsch studied successful and unsuccessful companies in threeindustries, they concluded that: As environment complexity increased,successful organizations exhibited higher degree of both differentiationand integration.

Activity C

Do you find any evidence of integration in your current (or last) place ofemployment ?.

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Dynamism

Dynamism relates to the stability or instability of the environment. Severalauthors have identified dynamism as one of the major environmentalcontingencies of organizations (Child 1975; Duncan 1972; Thompson 1967).Dess and Beard (1984) emphasize that dynamism is not simply the rate ofchange, which itself could be constant, thereby rendering the environmentpredictable, but rather the degree of unpredictability. As they state, “Dynamismshould be restricted to change that is hard to predict and that heightensuncertainty for key organizational members”. This corroborates the significanceof uncertainty as a strategic element of dynamism.

It is presumed that when the task and environmental uncertainty contingencyis low, the mechanical structure and when the task and environmentaluncertainty contingency is high, an organic structure produces higheffectiveness.

Mechanistic versus Organic Organizations A landmark organization designstudy was reported by a pair of British behavioral scientists, Tom Burns and GM Stalker. In the course of their research, they drew a very instructivedistinction between what they called mechanistic and organic organizations.Mechanistic organizations are rigid bureaucracies with strict rules, narrowlydefined tasks, and top-down communication. Organic organizations are flexiblenetworks of multitalented individuals who perform a variety of tasks.Importantly as illustrated in Table 2, each of the mechanistic-organiccharacteristics is a matter of degree. Organizations tend to be relativelymechanistic or relatively organic.

Table 2: Characteristics of Mechanistic and Organic Organization

Characteristic Mechanistic OrganicOrganization Organization

Task definition and knowledge required Narrow; technical Broad; general

Linkage between individual’s contribution Vague or indirect Clear or directand organization’s purpose

Task flexibility Rigid; routine Flexible; varied

Specification of techniques, obligations, Specific Generaland rights

Degree of hierarchical control High Low (self-controlemphasized)

Primary communication pattern Top-down Lateral (betweenpeers)

Primary decision-making style Authoritarian Democratic;participative

Emphasis on obedience and loyalty High Low

Source: Burns and Stalker (1961)

Types of Environment

Figure 1 illustrates the basic classification of task environments. The four“pure” types of task environments are : uniform-stable, varied-stable, uniform-unstable, and varied-unstable.

The simplest organization design can be effective in a uniform-stableenvironment (box 1). Although the environment is relatively stable, these firmsdo face some uncertainties because of competitors’ actions, customers’changing preferences, and potential substitutes for their products and services.

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The varied-stable environment (box 2) poses some risks for managers andemployees, but the environment and the alternatives are fairly well understood.The environment is relatively stable, but employees may need considerabletraining and experience to understand it and make it work.

The uniform-unstable environment (box 3) requires managers, employees, andorganization designs to be flexible. Rapid response to sudden changes in marketdemand or technologies means that companies need organization designs thatallow for considerable flexibility and speed in allocating resources to newproduct.

The varied-unstable environment (box 4) represents the most challengingsituation for an organization because the environment presents numerousuncertainties. This environment requires the most managerial and employeesophistication, insight, and problem-solving abilities.


Deg

ree

of D

ynam

ism

Low Uncertainty Moderate Uncertainty

* Few environmental factors exist. * Many environment factors exist.* Factors are similar to each other * Factors are not similar to each other.* Factors remain basically the same * Factors remain basically the sameExample: Salt manufacturers, Printing Example : Registrars’ offices infirms universities Gasoline refining/

distribution firms

Moderately High Uncertainty High Uncertainty

* Few Environment factors exist. * Many environmental factors exist.* Factors are similar to each other * Factors are not similar to each other.* Factors are continually changing. * Factors are continually changing.

Example: Fast-food firms consumer Example: Telecommunications firmsproducts firms Biotechnology firms.

Uniform VariedDegree of Complexity

Figure 1. Basic Types of Task Environments

Uns

tabl

eSt

able

DifferentiationStrategy

Cost LeadershipStrategy

Stra

tegi

c T

arge

t

Narrow

Uniqueness Low Cost

Figure 2: Porter’s Strategic Model

Focused Strategy


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III. Strategy and Organization Design

Organizational strategy refers to the way the organization positions itself in itssetting in relation to its stakeholders, given the organization’s resources,capabilities, and mission. Basically two types of strategies are popular atpresent: Generic and Competence- based strategies.

Generic Strategies

These are in terms of cost focus and product focus. According to MichaelPorter, companies need to differentiate and place themselves differently fromtheir competitors in order to build and sustain a competitive advantage.Organizations have attempted to build competitive advantages in various ways,but three underlying strategies appear to be essential in doing so: low cost,differentiation, and focused. These strategies are shown in Figure 2.

Low Cost

A low-cost strategy is based on an organization’s ability to provide a product orservice at a lower cost than its rivals. The organization’s design is functional,with accountability and responsibility clearly assigned to various departments.

Differentiation

A differentiation strategy is based on providing customers with something that isunique and makes the organization’s product or service distinctive from itscompetition. An organization that chooses a differentiation strategy typicallyuses a product organization design whereby each product has its ownmanufacturing, marketing, and research and development (R&D) departments

Focused

A focused strategy is designed to help an organization target a specific nichewithin an industry, unlike both the low-cost and the differentiation strategies,which are designed to target industry-wide markets. An organization thatchooses a focused strategy may utilize any of a variety of organization designs,ranging from functional to product to matrix to network, to satisfy theircustomers’ preference

Competency-Based Strategies

Although the list of generic strategies provides a quick general guide for manysenior managers, it is apparent that a firm needs the skills and abilities to getthe most out of the intended generic strategy. Eventually, the firm may developspecific administrative and technical competencies to achieve the purpose. Asmiddle and lower-level managers bring about minor modifications andadjustments to solve specific problems and capitalize on specific opportunities,they and their firms may learn new skills. These skills may be recognized bysenior management and give them the opportunity to adjust, modify, and buildupon a generic strategy to develop a so-called competency strategy. In theprocess of building upon its capabilities, the firm may actually move genericstrategies and/or combine elements of two generic strategies.

Strategic choice refers to the idea that an organization interacts with itsenvironment instead of being totally determined by it. In other words,organizational leaders should take steps to define and manipulate theirenvironments, rather than let the organization’s fate be entirely determined byexternal influences.

The notion of strategic choice can be traced back to the work of AlfredChandler in the early 1960s. Chandler’s proposal was that structure followsstrategy. He observed that organizational structures should follow the growth

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strategy developed by the organization’s decision makers. But the Modelgained popularity only in 1972, when British sociologist John Child rejected theenvironmental imperative approach to organizational structure and proposedstrategic choice model based on behavioral rather than rational economicprinciples. According to the strategic choice model , an organization’s structureis determined largely by a dominant coalition of top-management strategists.

As Figure 3 illustrates, specific strategic choices or decisions reflect how thedominant coalition perceives environment constraints and the organization’sobjectives. These strategic choices are tempered by the decision minormodifications and adjustments to solve specific problems and capitalize onspecific opportunities, they and their firms may learn new skills. These skillsmay be recognized by senior management and give them the opportunity toadjust, modify, and build upon a generic strategy to develop a so-calledcompetency strategy. In the process of building upon its capabilities, the firmmay actually move generic strategies and/or combine elements of two genericstrategies.

In summary, strategy influences structure and structure influences strategy.Strategic choice theory and research teaches managers at least two practicallessons. First, the environment is just one of many co determinants ofstructure. Second, like any other administrative process, organization design issubject to the byplays of interpersonal power and politics.

IV. Technology and Organization Design

Two important technological contingencies that influence the type oforganizational structure are the variety and analyzability of work activities.Variety refers to the number of exceptions to standard procedure but can occurin the team or work unit. Analyzability refers to the extent that thetransformation of input resources to outputs can be reduced to a series ofstandardized steps.


OrganizationalObjectives

Strategicdecisionsmade bydominantcoalition

Environmentalconstraints

OrganizationalStructure

Organizationaleffectiveness

Decisionmakers’personalbeliefs,

attitudes,values, and

ethics

Target marketsCapitalsources/usesHuman resourcesTechnologyTotal qualitymanagement

Corrective action

Figure 3: The Relationship Between Strategic Choice And Organizational Structure

Source: Kreitner, Robert and Kinicki, Angelo (1998), Organizational Behavior, IrwinMcGraw-Hill, USA


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Some jobs are routine, meaning that employees perform the same tasks all ofthe time and rely on set rules (standard operating procedures) when exceptionsdo occur. Almost everything is predictable. These situations, such asautomobile assembly lines, have high formalization and centralization as well asstandardization of work processes. When employees perform tasks with highvariety and low analyzability, they apply their skills to unique situations with littleopportunity for repetition. Research project teams operate under theseconditions. These situations call for an organic structure, one with lowformalization, highly decentralized decision-making authority, and coordinationmainly through informal communication among team members.

High-variety and high-analyzability tasks have many exceptions to routines, butthese exceptions can usually be resolved through standard procedures.Maintenance groups and engineering design teams experience these conditions.Work units that fall into this category should use an organic structure, but it ispossible to have somewhat greater formalization and centralization due to theanalyzability of problems.

Thompson’s view on the Impact of Technology

Thompson (1967) argues that task and technology are major contingencyfactors of organizational structure. He offers a typology of types of technologyand their respective organizational structures. Three different types oftechnologies are distinguished: mediating, long-linked, and intensive. Thesecorrespond to three types of task interdependence between organizationalsubunits: pooled, sequential, and reciprocal.

Mediating technology refers to the linking of customers, such as a banklinking lenders and borrowers, and involves pooled interdependence. Pooledindependence means that two organizational subunits (e.g., branches of a bank)have not direct connection, so that their interdependence is indirect, residing intheir both drawing resources from some central pool.

Long-linked technology refers to sequential interdependence where task A isthe input to task B. Sequential interdependence means that the subunits have adirect connection, so that the output of one subunit is an input to the other subunit.

Intensive technologies use varying techniques according to feedback from theobject worked upon .For example, a hospital using various diagnostic andtreatment techniques according to the condition of the patient, and involvereciprocal interdependence. Reciprocal independence means that the subunitshave a two-way connection, in which the output of each subunit is an input tothe other subunit, so that they transact back and forth in an unpredictable manner.

The three types of interdependence (pooled, sequential, and reciprocal) areeach fitted by varying degrees of mechanistic or organic structures. Thus taskinterdependence can be considered to be a contingency of organic structures.

Woodward’s view on the Impact of Technology

Joan Woodward proposed a technological imperative in 1965 after studying100 small manufacturing firms in southern England. She found distinctlydifferent structural patterns for effective and ineffective companies based ontechnologies of low, medium, or high complexity.

Effective organizations with either low or high-complexity technology tended tohave an organic structure. Effective organizations based on a technology ofmedium complexity tended to have a mechanistic structure. Woodward concludedthat technology was the overriding determinant of organizational structure.

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Since Woodward’s landmark work, many studies of the relationship betweentechnology and structure have been conducted. Unfortunately, disagreementand confusion have prevailed. A statistical analysis of those studies bring aboutthe following conclusions.

The more the technology requires interdependence between individuals and/orgroups, the greater the need for integration (coordination).

As technology moves from routine to non-routine, subunits adopt less formalizedand [less] centralized structures.

2.7 OTHER FACTORS

History

The organization’s present structure may have developed over a number ofyears, as functions have been added, changed or deleted. Obviously, the olderthe organization, the more significant history is likely to be. It is also morelikely to have determined the current structure if there have been relativelylittle pressures on the organization to adapt to changing circumstance, eitherbecause it has monopolistic power or because the industry in which it operatesis relatively slow-moving.

Customers and Markets

The organization structure is also affected by the type of market and customersit serves, and in a customer-responsive environment this should be one of themain determinants of structure. If the organization is providing services to abroad range of customers in a large number of locations, it may need to havemany branch officers, as do Banks, the Post Office and so on.

The advantages of a customer-based structure are as follows.

meeting customers’ requirements is more likely to lead to long-term successfor the organization;

it gives a clear focus to the organization; and

it enables an emphasis to be put on the requirements of different customersgroups, thereby improving overall service quality.

The main disadvantages are as follows:

there is a need to keep a close eye on market requirements which couldrequire a lot of research;

to be responsive to customer requirements the organization needs to be veryadaptable so that it can respond quickly to change;

in many cases the provision of different services for different customertypes may not allow for the most effective use of resources or foreconomies of scale;

it may not always be economical or profitable for the organization to providesome of the services required by customers, yet failure to do so will resultin loss of goodwill; and

in some environment, the need to provide services outside normal workinghours or around the clock will mean that shift working, stand-by and call-outarrangements will need to be introduced which will affect the way theorganization is structured

Processes

The processes used within the organization also affect the structure. Aproduction line process consists of a number of distinct tasks carried out by



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people specializing in those tasks at different stages of the process. Theunderlying principle behind this approach is that specialization means people candevelop high skills and speed, resulting in high output at low cost. There areof course disadvantages to this approach, primarily in terms of maintaining themotivation and morale of production line operatives. The advantages oforganization of the basis of process or technology are that:

it allows for task specialization which means that people can develop a highdegree of skill:

the emphasis on the outputs from a particular process can result in highproductivity;

the structure is easy to understand and manage and there is likely to belittle ambiguity in the outputs to be achieved;

a structure that is driven by the organization’s processes is likely to requireless supervisory input; and

processes that are particularly dirty, noisy or hazardous can be groupedtogether.

The main disadvantages are that:

there is a risk that by concentrating on processes the organization could losesight of the inputs required;

there is a greater need for the company’s various processes to be integratedto ensure that they work towards the company’s overall objectives; and

there is less focus on the customer.

People

People in the organization affect the structure in a number of ways. Structuresdo not just appear, they are the result of people’s views and beliefs and theirapproach to managing the organization. The structure is also be affected bythe types of jobs and people within the organization. Structures with a largenumber of professionals are more likely to involve team working, and thereforeto be relatively flat compared with an organization that has to accommodate arange of jobs from the production line operative to the chairman.

Geography

The geographical spreading of an organization affects its structure mainlybecause of its need to be near raw materials or customers,. Where there is asignificant degree of geographical distribution, there is likely to be more needfor careful co-ordination and control than with a single site location.

When there is a strong need to provide products or services within a particulargeographical area, the organization may be divided into regions or areas, witheach being a fully self-contained, miniature version of the parent organization.

In many cases, understanding the particular needs and requirements of the localarea is of sufficiently fundamental importance for location to be the mostsignificant factor in organization design.

The advantages of a geographically based structure are:

Responsiveness to local needs;

It makes firm able to provide a complete service at one location;

A degree of autonomy can provide for more efficient decision-making andincrease job satisfaction; and

The organization can recruit locally based staff; it can facilitate the trainingand development of managers who can quickly gain varied experience insmaller branch offices before moving to larger jobs.

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Products and Services

The structure may be determined by the particular products and servicesprovided. Large and diverse organizations have separate divisions because theyare dealing with very different products and services. Similarly, the Post Officehas separate organizations for the various services it provides such as maildelivery (Royal Mail), parcel delivery (Parcel force) and counter services (PostOffice Counters Limited).

The advantages of product specialization are that:

it provides a focus on a specific area and encourages the development ofexpertise in the provision of that product or service; and

it is likely to provide a service that is more responsive to customerrequirements.

The disadvantages are that:

too much focus on the product may overlook customers’ real needs; and

it may not make the best use of the organization’s resources.

2.8 ORGANIZATIONAL EFFECTIVENESS

Organizations are constructed to be the most effective and efficient social units.The actual effectiveness of a specific organization is determined by the degreeto which it realizes its goals. The efficiency of an organization is measured bythe amount of resources used to produce a unit of output. Output is usuallyclosely related to, but not identical with, the organizational goals. For instance,Ford produces automobiles (its output), but its goal seems to be profit-making.The unit of output is a measurable quantity of whatever the organization maybe producing.

Organizational effectiveness can have a broad meaning that includes efficiency,profitability (Child 1975), employee satisfaction (Dewar and Werbel 1979),innovation rate (Hage and Dewar 1973), or patient well-being (Alexander andRandolph 1985). Organization effectiveness can be defined as the ability of theorganization to attain the goals set by itself (Parsons 1961), or by its ability tofunction well as a system (Yuchtman and Seashore 1967), or by its ability tosatisfy its stakeholders (Pfeffer and Salancik 1978; Pickle and Frieddlander1967).

In its annual Most Admired Corporations survey, Fortune Magazine applies thefollowing eight effectiveness criteria:

quality of management.

quality of products/services.

innovativeness.

long-term investment value.

financial soundness.

ability to attract, develop, and keep talented people.

responsibility to the community and the environment.

wise use of corporate assets.

For a better understanding of this complex subject, four generic approaches toassessing an organization’s effectiveness may be considered. Theseeffectiveness criteria employ equally well to large or small and profit or not-for-profit organizations. Moreover, the four effectiveness criteria can be used invarious combinations (Refer Figure 3).



34

Goal Accomplishment: Goal accomplishment is the most widely usedeffectiveness criterion for organizations. Key organizational results or outputsare compared with previously stated goals or objectives. Productivityimprovement, involving the relationship between inputs and outputs, is acommon organization-level goal.

Resource Acquisition: This second criterion related to inputs rather thanoutputs. An organization is deemed effective in this regard if it acquiresnecessary factors of production such as raw materials, labor, capital, andmanagerial and technical expertise.

Internal Processes: Some refer to this third effectiveness criterion as the“healthy systems” approach. An organization is said to be a healthy system ifinformation flows smoothly and if employee loyalty, commitment, jobsatisfaction, and trust prevails. Goals may be set for any of these internalprocesses. Healthy systems, form a behavioral standpoint, tend to have aminimum of dysfunctional conflict and destructive political maneuvering.

Strategic Constituencies Satisfaction: Organizations both depend on peopleand affect the lives of people. Consequently, many consider the satisfaction ofkey interested parties to be an important criterion of organizationaleffectiveness. A strategic constituency is “any group of individuals who havesome stake in the organization-for example, resource providers, users of theorganization’s products or services, producers of the organization’s output,groups whose cooperation is essential for the organization’s survival, or thosewhose lives are significantly affected by the organization” (Cameron. 1980).

Strategic constituents or stakeholders can be identified systematically through astake holder’s audit. A stakeholder audit enables management to identify allparties significantly impacted by the organization’s performance.

Managers need to identify and seek input from strategic constituencies. Thisinformation, when merged with the organization’s stated mission and philosophy,enables management to derive an appropriate combination of effectivenesscriteria. The following guidelines are helpful in this regard:

the goal accomplishment approach is appropriate when “goals are clear,consensual, time-bounded, measurable (Cameron, 1986).

the resource acquisition approach is appropriate when inputs have atraceable impact on results or output The internal processes approach isappropriate when organizational performance is strongly influenced byspecific process (e.g., cross-functional teamwork).

the strategic constituencies approach is appropriate when powerfulstakeholders can significantly benefit or harm the organization.

The key thing to remember is “no single approach to the evaluation ofeffectiveness is appropriate in all circumstances or for all organization types.

2.9 SUMMARY

Organization design broadly includes how the organization is structured, thetypes and numbers of jobs , formal system of communication, division of labor,coordination, control, authority, and responsibility essential to attain anorganization’s goals. An organization is designed to realize a number ofobjectives. Mainly, there are two theories of organization design : universalistic& contingency theories. The universalistic theory assumes that there is “onebest way” to organize. The contingency theory assumes that maximumperformance results from the appropriate level of the structural variable that fits

35

the contingency. The primary factors that often affect organization design are :size, environment, business strategy, and technology. However several otherfactors such as history of the organization, its products and services, processes,coverage of customers, people, geographical spreading etc. also affect theorganization design.

Organization effectiveness denotes the degree to which it realizes its actualgoals. There are four generic organizational effectiveness criteria : goalaccomplishment, resource acquisition, internal processes and strategicconstituencies satisfaction. As no two organizations are alike, managers need tomix and match effectiveness criteria in a manner apposite to the situation.


1. Discuss the meaning and the theories of organisational design.

2. What are the key factors that affect organisation design.

3. Describe the concept of organisational effectiveness.


Alexander, Judith W., and W. Alan Randolph ( 1985), “The Fit BetweenTechnology and Structure as a Predictor of Performance in Nursing Subunits,”Academy of Management of Journal, 28:844-859.

Burns,Tom, and G.M.Stalker (1962),The Management of Innovation, London: Tavistock.

Cameron, K. (1980), “Critical Question in Assessing OrganizationalEffectiveness”, Organizational Dynamics, Autumn, P.67.

Cameron, K. L. (1986), “Effectiveness as Paradox: Consensus and Conflict inConceptions of Organizational Effectiveness”, Management Science, May, P. 542.

Child, John (1975), “Managerial and Organisational Factors Associated withCompany Performance, Part 2: A Contingency Analysis”, Journal ofManagement Studies,12:12-17.

Cushway, Barry and Lodge, Derek (2001), Organisational Behaviour andDesign, Crest Publishing House, New Delhi.

Dess, Gregory G., and Donald W. Beard (1984), “Dimensions of OrganisationalTask Environments”, Administrative Science Quarterly, 29:52-73.

Dewar, Robert,and James Werbel (1979), “Universalistic and ContingencyPredictions of Employee Satisfaction and Conflict,” , Administrative ScienceQuarterly, 24:426-448.

Donaldson, Lex ( 2001), The Contingency Theory of Organizations,Foundation for Organizational Science, Sage Publications, New Delhi

Duncan, Robert B. (1972), “Characteristics of Organizational Environment andPerceived Environmental Uncertainty”, Administrative Science Quarterly,17:313-327.

Galtung,Johan(1967),Theory and Methods of Social Research,Oslo,Norway:Universitetslaget..

Hage, Jerald, and Robert Dewar (1973), “Elite Values Versus OrganisationalStrusture in Predicting Innovation”, Administrative Science Quarterly,18:279-290.

Hellriegel , Don, Jr., John W. Slocum, and Woodman, Richard W. (2001),Organization Behaviour, Thomson Asia ptv. Ltd., Singapore.


MS-10ORGANIZATIONAL DESIGN,

DEVELOPMENT AND CHANGE

Indira Gandhi National Open UniversitySchool of Management Studies

1Understanding Organizations




2Organisational Design




3Approaches to Work Design




4Organisational Analysis




5Organisational Development and Change

1

MS-10Organisational Design,



Block

2ORGANISATIONAL DESIGNUNIT 3

Typology of Organisation Structures 5

UNIT 4

Some Basic Organisation Design and Restructuring Strategies 20

Organisational Design

2











ISBN-81-266-1291-6








3

BLOCK 2 ORGANISATIONAL DESIGN

This block consists of two units. The first unit briefly describes different typesof organisation structures that have emerged over a period of time. It covers:(1) line organisation (2) line and staff organisation (3) functional organisationstructure (4) product organisation structure (5) hybrid structure (6) formal andinformal organisation (7) centralisation and decentralisation (8) vertical structure(9) horizontal organisation (10) project organisation (11) matrix organisation(12) virtual organisation (network structure) (13) boundaryless organisation(14) inverted pyramid (15) task forces and (16) mechanistic and organicstructures. The second unit deals with the basic organisational structure andrestructuring strategies. It covers the evolutionary process of organisationdesign, the universal perspectives of organisation design—the bureaucraticmodel, the behavioural model, and the contingency perspective, HenryMintzberg’s typology for integration of organisation structure to contingencyfactors, the new perspective on organisation design (which focuses onmanagement process for strategic decisions of the organisations to work), andthe precise nature of relationship between specific organisation developmentalstrategies and particular organisation structures.


4

5

Introduction toMicrobesUNIT 3 TYPOLOGY OF ORGANISATION

STRUCTURES

Objectives

After reading this unit, you should be able to :

understand the characteristics of different organisation structures,

explain the basis for evolving different types of organisation structures,

examine the advantages and disadvantages of different types of organisationstructures.

Structure

3.1 Introduction

3.2 Line Organisation

3.3 Line and Staff Organisation

3.4 Functional Organisation Structure

3.5 Product Organisation Structure/Divisional Structure

3.6 Hybrid Structure

3.7 Formal and Informal Organisation

3.8 Centralisation and Decentralisation

3.9 Vertical Structure

3.10 Horizontal Organisation

3.11 Project Organisation

3.12 Matrix Organisation

3.13 Virtual Organisation (Network Structure)

3.14 Boundaryless Organisation

3.15 Inverted Pyramid

3.16 Task Forces

3.17 Mechanistic and Organic Structures

3.18 Summary

3.19 Self-Assessment Questions


3.1 INTRODUCTION

An organisation structure specifies the various job tasks and shows how thesame are formally divided, grouped, and coordinated. It provides an appropriateframework for authority relationship. It indicates the hierarchy of authority andthe reporting relationships. It is a means to help the management to achieve theorganisational objectives.

As the objectives of the organisation are derived from the overall strategy ofthe organisation, it is logical that an organisation structure is closely linked to itsstrategy. As such, if the management makes a significant change in theorganisation’s strategy, the organisation’s structure needs to be modified toaccommodate and support the change. There is considerable evidence toindicate that choice of an organisation’s strategy (stability strategy/growthstrategy) is determined by three basic factors (contingency factors): (i) theorganisation’s size, (ii) technology used by the organisation (for converting the


6

financial, human and physical resources into products and services), and (iii)environmental uncertainty (external environment).

Information technology and globalisation have had a tremendous impact onorganisation structures. Many of today’s managers realise that the traditionalorganisation structures based on bureaucratic principles no longer providesolutions to the challenges posed by the new paradigm environment. The needsof flexibility, adaptability to change, creativity, innovation, knowledge and theability to overcome environmental uncertainties are among the biggestchallenges facing many of the organisations. The result has been that thevertical (tall) structures are being replaced by horizontal (flat) structures, theorganisations with mechanistic structures are being transformed into ones withorganic structure . These shifts reflect a clear departure from the practice ofcentralised decision-making to decentralised decision-making, from command toconsensus based self-control. The new forms of organisation structure thathave emerged are: taskforce, network, virtual, boundaryless structures. Thesalient features of these and other organisation structures are briefly describedhere to present an overview of different types of organisation structure andtheir suitability under different situations.

3.2 LINE ORGANISATION

Line organisation is the simplest form of organisation structure. The linestructure is based on the scalar principle, which states that authority andresponsibility should flow in a direct line vertically from the highest level of theorganisation to the lowest level. The primary emphasis in the line organisation isupon the superior-subordinate relationship. Every person in the organisation is inthe direct chain of command. (Figure 1).

One of the advantages of the line organisation is that it facilitates decisionmaking and execution because there is a definite authority at each level of thehierarchy. However, the disadvantage is that if a wrong decision is made atthe top level, the same is carried out simply without anybody down the lineventuring to point out its deficiencies.

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7

3.3 LINE AND STAFF ORGANISATION

Most business organisations, except the very small, have this type of structure.As the organisations have grown complex, the problems of line executives havebecome sufficiently complicated. The line executives being generalists, need theadvice of personnel with specialised knowledge and functions to tackle theseproblems. For this purpose, the staff positions are created in the organisation. Inline and staff organisation, the line authority remains the same as it does in theline organisation i.e. the authority flows from top to bottom; and the lineexecutives perform the major functions; the staff functionaries support andadvise the line executives. For example, for sound management of humanresources, the line managers are provided specialised assistance throughpersonnel/Human Resource managers. As staff functionaries are employed toperform supportive role, they do not have any power of command in theorganisation (Figure 2).

The main advantage of line and staff organisation is that the staff specialistsrelieve the line executives of the botheration of concentrating on specialisedfunctions like selection, training, development, wage and salary administration,accounting, public relations etc. However, the disadvantage of this structure isthat since functionaries are not accountable for the results, they may not beperforming their duties effectively.

3.4 FUNCTIONAL ORGANISATION STRUCTURE

This is the most widely used form of organisation structure because of itssimple logic and commonsense appeal. Here the tasks are grouped together onthe basis of common functions. So, all production activities or all financialactivities are grouped into a single function which undertakes all the tasksrequired of that function. A typical chart of a functional organisation ispresented in Figure 3.

The functional structure suits best to the small to medium organisationsproducing one or a few products, where the goals of the organisationemphasise functional specialisation, efficiency and quality.

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Typology of OrganisationStructures

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8

The main advantages of this type of structure are that by grouping peopletogether on the basis of their specialist expertise, the organisation can facilitateboth their utilisation and their coordination in the service of the wholeorganisation. The functional grouping also provides opportunities for promotionand career development. One of the major disadvantages of this form oforganisation is the growth of sectional interest which may conflict with theneeds of the organisation as a whole. For example, the members of theproduction department will see their activities from the narrow perspective oftheir own department rather than viewing the same from the broaderperspective of the entire organisation.

3.5 PRODUCT ORGANISATION STRUCTURE /DIVISIONAL STRUCTURE

This form of organisation structure is adopted by large companies producing awide range of products. Here, the activities are grouped on the basis of the

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GeneralManagerVaccines

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GeneralManager

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9

individual products manufactured by the company. Thus, one finds autonomous“little companies within the company” adopting this type of organisationstructure. As such, within each of these little independent units, we find allimportant functions viz. production, marketing, finance and human resources.The organisation structure of a large multi-product pharmaceutical company isillustrated in Figure 4.

One of the advantages of the product organisation is that it enablesdiversification of the products to take place with minimal effort. Anotheradvantage is that it can cope better with technological change by groupingpeople with expertise and their specialised equipment in one major unit. Themain disadvantage of the product organisation is that each product divisionmay promote its own product group in a way that creates problems to otherproduct divisions of the company.

3.6 HYBRID STRUCTURE

The hybrid form combines features of both functional and divisional forms.When an organisation starts to get very large, it establishes some self-containedunits. Functions that are considered important to each product are decentralisedto the units; however, some functions like finance and accounting arecentralised at headquarters for practical reasons (Figure 5).

The functional part of the organisation is reflected in the departmentscentralised at the corporate level. However, each of the product divisions hasspecialists in functional areas for necessary assistance.

The important advantages of hybrid structure are:

1. The overall organisation enjoys the benefits of both functional and product(decentralised) structures.

2. It provides the opportunity to improve coordination both within and amongdivisions.

3. It enables the organisation to pursue an adaptive strategy within the productdivisions while at the same time achieving efficiency in the functionaldepartments.

4. It helps in proper alignment of corporate and divisional goals.

A major disadvantage of the hybrid structure is that it often leads to excessiveduplication of activities between functions and divisions. Another disadvantage isits tendency to create conflict between headquarters and divisional functions.

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10

3.7 FORMAL AND INFORMAL ORGANISATION

The formal organisation structure refers to a structure of clearly defined jobs,each bearing a definite amount of responsibility and authority. The formalorganisation lays down formal procedures, rules and regulations, which guidethe behaviour of individuals performing these jobs.

The informal organisation is the outcome of social interaction that takes placebetween the individuals of the formal organisation. When people work togetherthey tend to form informal work groups, often spontaneously, because ofphysical proximity, commonality of interest etc. These informal groups arecollectively known as informal organisation. Unlike the formal organisation, theinformal organisation is unstructured and not given. Generally, it is an unofficialorganisation born out of a formal organisation. An informal organisation has itsown structure, roles, procedures, norms and values which are unwritten and areevolved through consensus among the members of the informal groups. Aninformal organisation does not have a fixed chain of command. It is based onthe sentiments of the members. The communication patterns are not fixed andas such communication may flow in any direction.

In contrast to formal organisation analysis, the dysfunctional aspects of informalorganisation such as conflicting objectives, restriction of output, resistance tochange have received more attention than the functional ones. In other words,the informal organisation is often projected to be counter-productive to theformal organisation. In reality, however, the informal organisation can benefitthe formal organisation in the following ways:

1. It serves as a useful channel of communication

2. It lightens the workload of the management, if the latter gives dueimportance to the informal workgroups

3. It reduces the undesirable effects of the rigidities of the formal organisation

4. It provides a safety valve for employee emotions.

Activity A

Briefly describe the informal workgroup that are prevailing in your organisationin terms of their leadership, their role and their contribution to the formalorganisation. Substantiate your statements with illustrations.

..........................................................................................................................

..........................................................................................................................

..........................................................................................................................

..........................................................................................................................

..........................................................................................................................

3.8 CENTRALISATION AND DECENTRALISATION

The term Centralisation refers to concentration of decision making at a singlepoint in the organisation. In contrast, when the top management givesmaximum, though not complete, discretion to the lower level personnel in theorganisation to make decisions, then it can be said that there is decentralisationin the organisation.

In a decentralised organisation, action can be taken more quickly to solveproblems, and more people provide inputs into decisions. For firms having anumber of plants, which are located at different places, decentralisation is morebeneficial. With most of the large companies now preferring to make

11

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organisations more flexible and responsive, there has been a marked changetowards decentralised decision making.

The main advantages of decentralisation are:

1. It reduces the burden of the top management by freeing them from manyoperational decisions, and enables them to concentrate on their strategicresponsibilities; and

2. It can contribute to staff motivation by enabling middle and lower levelmanagements to get a taste of responsibility, and by encouraging the use ofknowledge, innovation, and initiative by all employees.

The main disadvantages of decentralisation are:

1. It requires greater coordination by senior management to ensure thatindividual units in the organisation are not working against the interests ofthe whole organisation;

2. It can lead to inconsistency of treatment of customers, clients or public,especially in service industries; and

3. Decentralisation does require a plentiful supply of capable and well-motivatedmanagers, who are able to cope with increased responsibility whichdecentralisation brings about.

3.9 VERTICAL STRUCTURE

A vertical organisation is that in which the size of the hierarchical chain ofcommand is long i.e. the number of hierarchical levels are high. As such, morepeople have to communicate to the top management through the interveninglayers of executives (Figure 6).

The main advantages of the vertical organisation are:

1. They provide better communication of the organisation’s mission, values, andgoals to all employees; and

2. These organisations have the ability to sustain a very high degree ofspecialisation of functions and roles.

The principal disadvantages are:

1. Too many hierarchical levels consume more time for communication and thesame may lead to delays in decision making; and

Figure 6 : Vertical Organisation Structure


Hierarchical Levels


12

2. As the vertical structures go hand in hand with formality andstandardisation, the scope for initiative and risk taking at operational levelsbecomes limited.

Activity B

Find out whether your organisation belongs to a centralised or decentralisedform of organisation. Specify the recommendations you would make in orderimprove the present structure of your organisation.

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3.10 HORIZONTAL ORGANISATION

As the traditional vertical, hierarchical structures of the organisations are beingconsidered inappropriate to the requirements of the changing environment, anincreasing number of modern organisations are preferring the use of horizontalstructures. For example in the US, corporate giants like AT& T, GeneralElectric, Motorola and Xerox, among other firms, have moved to the principlesof the horizontal structure of organisations.

The horizontal structure facilitates cooperation, teamwork, and customerorientation rather than a functional orientation.

Frank Ostroff, a McKinsey & Company consultant and his colleague DouglasSmith are given credit for developing guiding principles that describe thecharacteristics of the horizontal structure.

1. Horizontal structures are created around three to five core processes for thetime rather than traditional departmental functions.

2. The vertical hierarchy is flattened to reduce the levels of supervision. This isdone by combining the fragmented tasks, eliminating work that fails to addvalue, and by cutting to the minimum activities within each process.

3. Multi-disciplinary/ cross functional self-managed teams (composed ofpersonnel from different functional areas like finance, marketing, humanresource, quality control and operations) are created to handle the coreprocesses, and each team is entrusted with a core process.

4. Customer satisfaction, net profits, is the primary driver and measure ofperformance. As such, for horizontal structure to work, employees arebrought into direct contact with customers as well as suppliers. Whererelevant, customers and suppliers may be brought in as full workingmembers of the teams in charge of the core processes.

5. All employees should be provided with all data, and they should be trainedfor analysing and use the data to make effective decisions as teammembers.

6. All employees are encouraged to develop multiple skills; and those whodevelop are rewarded.

7. The horizontal organisations need to build a corporate culture of openness,cooperation and collaboration.

13

Figure 7 gives an idea about the horizontal structure of an organisation.

The main advantages of horizontal organisation are:

1. Decisions can be taken more quickly to solve problems; and

2. A horizontal structure has fewer problems of coordination.

One of the disadvantages of the horizontal structure is the absence of properreporting to superiors by the subordinates because of decentralisation.

3.11 PROJECT ORGANISATION

When an organisation undertakes a big project or a number of small projects, itcreates project organisation(s) for the completion of the same. This is donebecause the existing functional structure of the organisation may not be suitableto complete the projects which are time bound and are subject to highstandards of performance as in the case of aero space and aircraft companies.A project organisation (See Figure 8) is separate from and independent offunctional departments of the company. Headed by a Project Manager, everyproject organisation consists of a team of specialists drawn from differentfunctional areas of the company or from outside. The size of the project teamvaries from one project to another. Again, within a project, the size of thegroup may change with the different phases of the work. A project organisationhas a temporary set up, and as soon as the project is completed it will bedisbanded. However, when the duration of the project is very long, the projectorganisation takes a permanent form and it may become a regular autonomousproject division of the company.

The role of the Project Manager is quite challenging. He is responsible for thecompletion of the project exacting to the time schedule and quality standards

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14

that are prescribed. The successful completion of the project depends on howwell he coordinates the activities of the project team and how he utilises theadvice and assistance of the internal experts (available within the company) andthose belonging to external agencies / organisations.

The project organisation is suitable when the company gets a one-timeassignment or a huge contract or when the company faces a unique challenge.

The main advantages of the project organisation are:

1. The participating specialists of the project team get opportunity for prompt,expeditious and effective accomplishment of the goals of the project. Thismotivates them to make maximum contribution to the execution of theproject;

2. It facilitates speedy communication between the project manager and theteam members; and

3. It provides flexibility in handling various tasks.

The major disadvantages of the project organisation are:

1. The entire project becomes meaningless, if the project manager fails tocoordinate the activities of the project properly;

2. The members of the project organisation have to sever the contacts with themainstream organisational life. As such, they may be bypassed whenopportunities arise in their respective fields for promotion; and

3. The job of the project manager becomes very difficult because he has todeal with specialists from a number of diverse fields.

3.12 MATRIX ORGANISATION

The matrix organisation combines two forms of departmentalisation— functionaland product. It is built around a project which is headed by a Project Manager.The Project Manager is also known as Product Manager as he is responsiblefor the output (product) of the project.

The project teams comprise of employees (specialists) drawn from differentfunctional departments such as the Human Resources, Finance, Production,Marketing, and Research & Development Departments of the Company. Thus,the employees of the matrix have two bosses: their Functional DepartmentalManagers (for example, the HR specialists of the project team have to reportto the Manager, Human Resources Department) and their Project Manager. Inother words, the matrix structure breaks the principle of unity-of-command whichstates that no person in the organisation should report to more than one boss.

Figure 9 illustrates the Matrix Structure of an Engineering firm, which iscomposed of two projects, each having its specific objective and specific timefor completion.

The matrix organisation is different from the functional organisation. In thefunctional organisation, the project manager is given complete responsibility forthe project as well as the resources needed for its completion. But in thematrix organisation, the Project Manager has to share the resources with therest of the enterprise.

The matrix structure is used in advertising agencies, aerospace firms, R & Dlaboratories, construction companies, hospitals, government agencies, universities,management consulting firms, and entertainment companies.

15

Some of the advantages of the matrix structure are:

1. It facilitates coordination when the organisation has multiple complex andinterdependent activities;

2. It ensures the effective utilisation of the services of the people with highlyspecialised skills; and

3. The direct and frequent contact between the different functional specialistsin the matrix ensures better communication and more flexibility.

The major disadvantages of the matrix structure are:

1. This structure breaks the unity-of-command concept. Reporting to one bossintroduces role conflict and role ambiguity;

2. It fosters power struggle between product (project) managers and functionalmanagers who share the same set of resources; and

3. A matrix organisation incurs higher costs than an organisation with aconventional hierarchy.

3.13 VIRTUAL ORGANISATION (NETWORKSTRUCTURE)

A virtual organisation is a small, core organisation that outsources majorbusiness functions. It is highly centralised, with little or no departmentalisation.

The virtual organisation creates network relationships with other organisations /agencies located anywhere in the world for the purpose of contracting outfunctions like manufacturing, distribution, marketing, R & D, etc. (Figure 10).The networking is done through the electronic technology. As such, thepartnerships between the virtual organisation and other organisations (far-flungcompanies) are based on electronic contracts. The partners are less permanent,less formal, and more opportunistic. Each partner contributes to the virtualorganisation its core capabilities. The managers of the virtual organisationsspend most of their time in coordinating the various activities through thenetworking. Examples of virtual organisations include Ford, Harley Davidson,Nike, Rebok, Mobil Corp., IBM etc.

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16

The major advantages of a virtual organisation are:

1. Through virtual organisation it is possible to create “best-of-everything”organisation because each partner brings its “core competence.”

2. A virtual organisation allows someone with an innovative idea and littlemoney to successfully compete against large companies. This is possiblebecause of flexible nature.

The major disadvantages of the virtual structure are:

1. It reduces management’s control over the key parts of its business; and

2. The reliability of the partners may be doubtful.

3.14 BOUNDARYLESS ORGANISATION

General Electric Chairman, Jack Welch, coined the term boundarylessorganisation. The boundaryless organisation seeks to remove the vertical andhorizontal boundaries within the organisation and to break down externalbarriers between the company and its customers and suppliers. Once themanagement removes the vertical boundaries, the structure of the organisationlooks more like a silo than a pyramid.

To break down the vertical boundaries, the management adopts the followingstrategies:

i. Creating cross-hierarchical teams (which includes top executives, middlemanagers, supervisors, and operative employees);

ii. Encouraging participative decision making; and

iii. Making use of 360 degree performance appraisal (peers and others aboveand below the employee evaluate his / her performance).

To reduce the barriers to the horizontal boundaries, the management adoptsthe following strategies:

i. Replacing the functional departments with cross-functional teams andorganising activities around processes;

ii. Using lateral transfers; and

iii. Rotating people into and out of different functional areas.

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The external boundaries can be reduced through practices like strategicalliances, customer- organisation linkages and telecommuting (mainly with thenetworked computers).

The major advantages of the boundryless organisation are:

1. It fosters teamwork among the employees;

2. It ensures speedy communication within the organisation (intra-organisationalcommunication) and between the organisation and the customers andsuppliers (inter-organisational communication); and

3. It can help competitiveness in the global economy.

A principal drawback of this form of organisation is that it is difficult to clearlyestablish the relationship between superiors and subordinates in the organisation.

3.15 INVERTED PYRAMID

Organisations with this type of structure put the customers at the top and givethem the most important role in driving the business. The front-line employeeslike sales representatives, people in charge of help-desk, etc. who come indirect contact with the customers, are also given a similar position. The ChiefExecutive Officer of the organisation is at the bottom of the structure(Figure 11). Thus, in this form of organisation, the role of the managementchanges from a commanding one to a supporting one.

Some of the advantages of the inverted pyramid are:

1. This structure gives first preference to the customers. Therefore, it becomeseasy for the organisation to know the customers’ choices, and to work outappropriate strategies to ensure customers’ satisfaction; and

2. In this form of organisation, the employees are given more responsibility andauthority than the top management.

A major disadvantage of the inverted pyramid relates to formulation ofstrategies. The frontline foremen are not quite equipped to formulate strategiesregarding the organisation. This leaves sufficient ground within the organisationto doubt about their capabilities to make appropriate strategies.

Figure 11 : Inverted Pyramid Organisation Structure


Customers

Front-line employees

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18

3.16 TASK FORCES

A task force is a temporary structure comprising of specialists from differentfunctional departments, formed primarily to accomplish a specific and complextask. It co-exists with the traditional structure. As such, it can be viewed as ascaled-down version of the temporary matrix. The members of a task force aretransferred to another task force, once the goal of their task force is achieved.

Ford Motor successfully experimented with the task force structure in the U.S.in the early 1980s.

One of the advantages of the task force is that an organisation can enjoy thebenefits of both the traditional structure and the task force simultaneously. Thebenefits are: stability, flexibility, and efficiency.

The major disadvantage is that, if the management fails in its job ofcoordinating the activities of the task force and maintaining harmoniousinterpersonal relationship within the task force, the very purpose of creating thetask force gets defeated.

3.17 MECHANISTIC AND ORGANIC STRUCTURES

In a landmark study conducted in 20 British firms during the 1960s, Tom Burnsand G.M.Stalker identified two types of organisations— mechanistic andorganic. They observed that the mechanistic organisation was characterisedby: rules, procedures, a clear hierarchy of authority, centralised decision making,and the control of incoming and outgoing communications from the top and atendency for information to be provided on a need to know basis. By contrast,the organic organisation was characterised by: low formalisation, rules andregulations were not written or if written down were ignored, and open andwidely used communication patterns which incorporate horizontal, diagonal aswell as vertical channels.

Burns and Stalker’s research work stressed the belief that the organisationcould change its structure in relation to its environment. Thus, in a rapidlychanging environment, an organisation tends to change to organic form from themechanistic form in order to remain competitive. The mechanistic form oforganisation structure is adopted when there is relative stability in theenvironment.

According to Stephen P. Robbins, these forms of organisation structuresrepresent two extremes of a continuum. While the mechanistic model isgenerally synonymous with the bureaucracy, the organic model looks more likethe boundaryless organisation. The relation of one form to the other is elastic.As such, an organisation may oscillate from one end (mechanistic) to the other(organic) depending upon the nature of the environment and other factors likethe overall strategy of the organisation, organisation size, and technology.

Activity C

Briefly describe the structure of your organisation. Find out which type oforganisation structure it comes closer to.

..........................................................................................................................

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19

3.18 SUMMARY

We have briefly described the various types of organisation structures that haveevolved over a period of time in response to the paradigm environment. Thecontinuum of structures ranges from the traditional bureaucratic structure to themodern virtual organisation. Each type of structure has its advantages anddisadvantages. As the traditional structures no longer proved to be adequate inthe new paradigm environment, the modern horizontal, bounaryless, virtualorganisations have emerged. Organisations’ needs for flexibility, adaptability tochange, creativity, innovation, knowledge, and ability to overcome environmentaluncertainties are among the biggest challenges facing the modern organisations.Some bureaucratic characteristics are in decline. But, bureaucracy is alive, andperhaps will be in vogue in the distant future.

3.19 SELF-ASSESSMENT QUESTIONS

1. Distinguish between the functional organisation and the product organisation.

2. What is a matrix structure? When is it used?

3. Briefly describe the horizontal, boundaryless and virtual organisation designs.Explain how they meet the challenges of the new environment.

4. Contrast the mechanistic organisation with the organic organisation.


Tom Burns and G.M. Stalker, 1961. The Management of Innovation, London:Tavistock.

K Harigopal, 2001, Management of Organisational Change: LeveragingTransformation, New Delhi: Response Books.

Fremont E Kast. and James E. Rosenzweig , 1974. Organisation andManagement, Tokyo: McGraw Hill Kogakusha Ltd.

Fred Luthans, 2002. Organisational Behavior, Boston: McGraw Hill Irwin.

V. Nilakant and S. Ramnarayan, 1988. Managing Organisational Change,New Delhi: Response Books.

Robert A. Paton and James McCalman, 2000. Change Management, NewDelhi: Response Books.

V.S.P. Rao and P. S. Narayana, 1986. Organisational Theory and Behaviour,New Delhi: Vani Educational Books.

Stephen P. Robbins, 2001. Organisational Behavior, New Delhi, Prentice Hallof India Private Limited, (9th Edition).

B.P. Singh and T. N. Chhabra, 2002. Organisational Theory and Behaviour,Delhi: Dhanpat Rai & Co. (P) Ltd.



20

UNIT 4 SOME BASIC ORGANISATIONDESIGN AND RESTRUCTURINGSTRATEGIES

Objectives

After reading this unit, you should be able to understand:

the meanings of organisation design and restructuring,

the evolutionary process of organisation design,

the universal perspectives of and the new perspective on organisation design,

organisational restructuring strategies.

Structure

4.1 Introduction

4.2 The Design Process

4.3 Evolutionary Process of Organisation Design

4.4 Universal Perspectives of Organisation Design

4.5 From “Strategy- Structure” to “Process”: The New Perspective onOrganisation Design

4.6 Restructuring Strategies

4.7 Summary



4.1 INTRODUCTION

Every organisation has certain basic parts that are made up of people whoperform, supervise, and plan besides those who render support services andtechnical advice. As such, studying the structure or design of an organisationmeans analysing how these parts are put together, who reports to whom, thedegree of centralisation or decision making power concentrated at the top, theextent of rules, policies, regulations, and procedures in the organisation. Thebuilding of the initial structure of an organisation may be based on theconditions prevailing in the society and the industry characteristics prevailingat the time and the personality of the founder (entrepreneur). As theorganisations grow in their size from small to large over a period of time, theirpriorities do change and it becomes necessary for the organisations to makechanges in the organisation design in order to ensure that the organisationsfunction efficiently.

Modern organisations are open systems. They are in constant interaction withthe external environment. As such, any change that takes place in theenvironment — social, political, technical, economic, legal — have implicationsfor the organisations. In order to remain competitive, organisations respond tothe pressures exerted by the environmental factors. The nature of theirresponse depends upon the degree of the pressure. Normally, organisationsrespond by formulating new business strategies when the degree of pressure ishigh. Changes in strategies often necessitate changes in organisation design.Thus, restructuring of organisation design becomes inevitable when theenvironment for the organisation becomes turbulent and unstable.

21

Burton and Thakur (1995) define organisation design as the total pattern ofstructural elements and patterns used to manage the overall organisation.Organisation design should be seen as a tool for implementation oforganisational strategies and the attainment of organisational goals.

According to Banner and Gagné (1995), studying the structure of anorganisation means analysing the following:

how an organisation is put together;

who reports to whom;

the degree of centralisation or decision making power concentrated at thetop; and

the extent of the rules, policies, regulations, and procedures in anorganisation.

4.2 THE DESIGN PROCESS

Any organisation’s design process involves both science and art. The designdoes not evolve purely by principles alone. The circumstances of theorganisation and the whims and fancies of the entrepreneur (chief executive)also influence the design of an organisation. Within the organisation, often thereis a trade-off between conflicting considerations and goals. Herbert Simonsuggests that as an alternative to the principles of design we must attempt tounderstand the decision making and communication processes which producethe effect.

Allen suggests a seven-step sequence that could be followed to set the designprocess into action. Those are:

1. Identify the major objectives of the firm and derive primary line functionsneeded to accomplish the objectives.

2. Organise from the top down by establishing a scalar change of authority andresponsibility.

3. Organise from the bottom up by integrating the activities of each function.

4. Decide what management positions are needed for each activity.

5. Identify positions in group related work.

6. Seek groupings to ensure balance in the distribution of resources.

7. Check whether the spans of control are appropriate.

4.3 EVOLUTIONARY PROCESS OF ORGANISATIONDESIGN

Organisations develop from small to large units by moving through four stagesof a life cycle: birth stage, youth stage, middle stage, and maturity stage. Thisprocess of development is accompanied by corresponding changes in theorganisation design (Burton and Thakur, 1995).

Birth Stage: This is the stage when the organisation is created. At this initialstage, the organisation’s decision making is highly centralised. The organisationis informal. There are usually few rules and regulations, no professional staffand no internal system for planning.

Youth Stage: During this stage, additional employees are employed as the salesfor the company’s products and services increase.

Some Basic OrganisationDesign and Restructuring

Strategies


22

Although authority is fairly centralised, a few trusted employees are involved indecision making process. Some informal rules and procedures are involved.There are now a few professionals and administrative personnel in theorganisation. The division of labour begins to occur as the newly formeddepartments are assigned tasks.

Middle stage: By the time the organisation reaches this stage, it has becomesomewhat successful and grown in size. Its structure is similar to that of aformal bureaucracy with formalised departments, supporting staff departmentsand many professional and clerical staffs. A large set of rules and procedureshave been introduced. Authority has been effectively decentralised. The divisionof labour has become extensive.

Maturity Stage: During this stage the organisation becomes very large andmechanistic. A set of bureaucratic rules, regulations and policies prevail.Decision making is centralised. The division of labour is highly refined. As aresult of the rigid virtual hierarchy, the organisation is on the brink ofstagnation. At this stage, the organisation attempts to become innovative andflexible. As such, it decentralises authority within the lateral structures such asliaison personnel, task forces, and project teams.

Thus, it is clear that an organisation’s structural characteristics undergodifferent stages of organisation’s life cycle.

4.4 UNIVERSAL PERSPECTIVES OFORGANISATION DESIGN

The mechanism of organisation design is still not mature to offer theoreticalprinciples and proven practices which would encompass a variety oforganisations (Lomash and Mishra, 2003). However, there are universalperspectives of an organisation design: 1) the bureaucratic model; 2) thebehavioural model; and 3) the contingency perspective.

4.4.1 The Bureaucratic Model

Max Weber, a German sociologist, conceptualised the idea of bureaucracy.Central to his work is the development of the concept of the bureaucraticorganisation design. According to Weber a bureaucracy is defined asorganisation founded on a legitimate and formal system of authority.

The Weberian approach held that an ideal organisation should have thefollowing characteristics:

1. A division of labour based on functional specialisation.

2. A well-defined hierarchy of authority so that the scalar chain of commandruns from the top of the organisation to the bottom.

3. A system of rules covering the rights and duties of employees.

4. A system of procedures for dealing with work situations.

5. Promotion and selection based on technical competence.

6. Impersonality of interpersonal relations. All managers should conductbusiness in an impersonal manner, maintaining an appropriate social distanceform their subordinates.

One of the basic strengths of this model is that this was the first model oforganisation design developed, and it still serves as the basic foundation for theunderstanding and application of newer organisation design approaches.However, this model has many drawbacks. The major drawbacks are :

23

(1) This model tends to get bogged down with the rules and regulations, and inthis process loses sight of the actual objectives of the organisation; and (2) itis not well-suited for a changing and uncertain external environment.Bureaucratic structures can become so rigid and formalised that organisationssimply cannot change fast enough to cope with external change.

4.4.2 The Behavioural Model

This model has evolved from the Human Relations School of managementthought. In the classical bureaucratic model, an individual is not identified andthe effect of an entire group is considered in the total process of management.On the contrary, in the behavioural model the performance of an organisationis believed to depend on human beings, their behaviour, characteristics and theirmutual relationships emerging from work patterns and organisational settings.The important factors which play significant roles are needs, motivations,attitudes, values, leadership, group behaviour, perceptions, communications,responsibility and authority relationship, etc. (Lomash and Mishra, 2003). Inother words, the behavioural models of organisation design reflect the social andpsychological implications of organisational life. The most popular behaviouralmodels of organisation design— the socio-technical systems theory and Likert’sSystem 4 Organisation — are briefly explained here.

Socio-technical Systems Theory

The socio-technical systems theory was developed by Eric Trist and K.W.Bamforth through their study of alternative methods of coalmining ; and A.K.Rice and his colleagues through their research at England’s TavistockInstitute. The socio-technical approach is based on the need to balance anorganisation’s human side with its technical and mechanical side. As such, thistheory focuses on two systems: (1) a social system that provides theframework for all the human interactions that sustain both formal and informalorganisations; and (2) a technical system that provides the framework of thetasks that produce the organisation’s goods and services. For example, thetechnical systems involved in the production of aluminium include the equipment/ machinery and operations such as crushing and grinding the ore (Bauxite),desanding and desilication , settling, washing and filtration, precipitation andclassification, and conversion of alumina into aluminium metal. On the otherhand, the social system that operates the equipment and performs theoperations includes individuals and groups whose interests, ideas, creativity ,motivation, and needs must be maintained. Thus, the socio-technical modelcontends that management must give equal importance to the technical systemand the social system of the organisation in order to ensure the efficient andeffective functioning of the organisation.

Likert’s System 4 Organisation

Rensis Likert was a social scientist at Michigan’s Institute for Social Research.Likert discovered critical relationship between organisational design andorganisational effectiveness. His research focused on eight characteristics oforganisations: the leadership process, the motivation process, the communicationprocess, the interaction process, the decision process, the goal-setting process,the control process, and performance goals.

He observed that organisations tend to incorporate these characteristics throughfour different approaches, which he called Systems 1, 2, 3, and 4. Of thesefour, Systems 1 and 4 have made significant contributions to organisationaldesign theory.

Likert’s System 1 represents bureaucratic form of organisation design(information flows only downwards and distorted centralised decision process,


Strategies


24

goal-setting process located at the top of the organisation, centralised controlprocess, group-participation discouraged) and his System 4 represents abehavioural form of organisation (information flows freely throughout theorganisation and undistorted, decentralised decision process, goal-setting processencourages group participation in setting high realistic objectives, controlprocess dispensed throughout the organisation and emphasises self control andproblem-solving).

On the basis of his studies, Likert concluded that organisations should adoptSystem 4 approach to organisation design.

The most significant strength of Likert’s System 4 is that unlike thebureaucratic model which treated workers as if they were impersonal, System4 behavioural model recognises the unique value of each and every member ofthe organisation. A major weakness of System 4 approach is that it was basedon the premise that there is only “one best way” to design organisations. It iswell established that what works for one organisation may not work for another(Burton and Thakur, 1995). There is a strong evidence that the best way todesign a given organisation depends on a number of contingency factors.

4.4.3 The Contingency Perspective

The contingency perspective on organisation design is founded on the premisethat the best design for any organisation is dependent on a number ofsituational factors. The most critical situational / contingency factors are :

1. External environment

2. Technology; and

3. Organisation size

Organisations can be open systems or closed systems. A system is a set ofinterdependent parts forming an organic whole. The open systems havepermeable boundaries and they constantly interact with their externalenvironment. As such, they can act on the environment and are affected bythe activities in that environment. The closed systems have no suchtransactions with the external environment. They are self-contained and operateindependently of their external environment. For the purpose of our discussion,we assume that modern organisations are open systems that interact with theirenvironments.

As the objectives of an organisation are derived from the overall strategy ofthe organisation, it is natural that an organisation’s design is closely linked to itsstrategy. As such, if a management makes a significant change in its strategy,the organisation’s design needs to be modified to accommodate and support thatchange. There is considerable empirical evidence to indicate that choice of anorganisation’s strategy is determined by the contingency factors as illustrated inFigure 1.

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25

Strategy

An organisation’s strategy describes the organisation’s goals and the ways theorganisation expects to reach those goals. An organisation’s strategy may needto change as changes occur in its external environment.

There is strong support from empirical research for the fact that “structurefollows strategy”. The strategic planning process of an organisation plays amediating role between the external environment, the organisation’s design, andthe technical process i.e. the system the organisation uses to produce itsproducts or services. For example, the strategic planning process can react tothe uncertainties in a product’s market (external environment) by increasinginnovation relating to its product. For carrying out this product innovationsuccessfully, the organisation’s design and / or technical process will have to bechanged.

External Environment

Any organisation is surrounded by the ‘general environment’ and the ‘taskenvironment’. The general environment consists of economic, technical, socio-cultural, political, legal, and international dimensions which have an impact onthe organisation and its task environment. The task environment comprises ofcustomers, competitors, suppliers, and government agencies.

Burns and Stalker (1961) discovered, through their research in England, thelinkages between organisation design and the environment. They identified twocontrasting forms of environment: (1) a stable environment that remains fairlyconstant over the time; and (2) an unstable environment which is subject tochange and uncertainty. Through their study of different organisations operatingin these two environments, they found that the organisations in stableenvironments tended to have a different kind of structure than those operatingin unstable environments. Burns and Stalker called these organisations (havingtwo different forms of structures) mechanistic and organic organisations.

A mechanistic organisation is in many respects similar to Max Weber’sbureaucratic organisation or Likert’s System 1 organisation. Generally found instable environments, the mechanistic organisation is characterised by rules,regulations, standardised procedures and centralised decision making.

An organic organisation resembles the behavioural model and Likert’s System4 organisation. It is generally found in unstable environments. Due to thefrequent changes in the environment, organic organisations adopt flexibility,non-routine methods, few rules and regulations (which are not often writtendown), decentralised authority and create autonomous work teams.

Figure 2 illustrates the different characteristics of organic and mechanisticorganisations.

The work of Burns and Stalker was expanded by two Harvard Business Schoolresearchers, Paul Laurence and J. Lorsch . Their research indicated that asenvironments become more uncertain, organisations need special coordinationmechanisms such as liaison managers, task forces, and teams.

Technology

Technology refers to the process by which an organisation converts the inputs(people, materials, equipment, money, plant, and facility etc.). The process maybe mechanical as in manufacturing organisations, or it can be a service toclients as in banks, hospitals or insurance companies. The process can also belargely mental as in organisations that solve the problems or create new ideas,


Strategies


26

products and services. R & D organisations, advertising agencies and softwaredevelopment firms are examples of the latter.

The research examining relationship between technology and organisation designhas aroused considerable controversy. While some studies such as those byJoan Woodward, James Thompson, Charles Perrow and Howard Aldrichsupport technology as a contingency factor of organisation design, other studiesdo not. For example, the Aston Groups’ study conducted in Birmingham,England concluded that organisation size was more important than technologyas a determinant of structure.

On the basis of the findings of the studies that supported technology - designlinkage, the following conclusions have been drawn:

1. Unit and process technologies work better with smaller spans of control andorganic structure, whereas mass production technology flourishes with widerspans of control and bureaucratic structure.1

2. Routine technologies feature bureaucratic structure — centralised decisionmaking that uses formal written rules and procedures to guide decisions.However, organisations that use routine technologies and have manyprofessionals use fewer formal procedures than organisations with fewerprofessionals.

3. Organisations that use complex non-routine technologies have moredepartments, fewer levels of authority, and more participation in decisionmaking than that use more routine technologies. For such organisations, anorganic structure is appropriate.

4. New Information Technology allows for reciprocal interdependency amongthe parts of an organisation, which in turn, flourishes in an organic structurerather than a bureaucratic one.

1Unit or small batch production technology produces goods in small batches of one or afew products that are designed to customer specification. Examples include locomotives,submarines, space satellites, and custom clothing.

Mass or large-batch production technology produces large volumes of products throughstandardized production runs. Examples include automobile assembly lines and the largebatch processes that produce appliances.

Process production technology provides a completely mechanized workflow, and is themost sophisticated and complex from of production technology. The machinery does all thework, while employees read gauges, monitor cathode ray tubes (CRTs), maintain and repairmachines, and manage the production process: Examples include petroleum refineries,chemical plants and nuclear power plants.

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27

Size

Research tells us that large organisations have different structural features thansmall organisations. Typically, small organisations have little specialisation, fewformal written rules and procedures, and narrow spans of control, informaldecision process and a simple design. By contrast, large organisations tend tohave elaborate specialisation, many formal written rules and procedures, moreformalised relationships, and use a decentralised form.

Mintzberg’s Typology

Henry Mintzberg’s typology for integration of organisation structure tocontingency factors provides a clear understanding of the linkage between anorganisation’s business strategy and organisation design.

Mintzberg believed that every organisation has five basic parts as shown inFigure 3. The top management is created at the very top of eachorganisation. This part is also known as ‘strategic apex’. The middlemanagement is found at the intermediate level. In the bottom is the technicalcore, which is otherwise called as ‘operating core’. These three parts areshown in a sequence indicating a single line of hierarchical authority. In otherwords, the line function is the chain of command that runs from topmanagement to the technical core.

The technical and professional staff personnel are shown to the left of themiddle line. These personnel are the engineers, researchers and systemsanalysts, who assist in the creation of the many plans and controls that areapplied to the technical core. The administrative staff shown to the right ofthe middle line performs such indirect services as maintenance, accounting, andclerical. According to Mintzberg, the relative size of each of these parts indetermined by the organisation’s contingency factors.

Mintzberg further proposed that each of these five organisational parts combinetogether in five basic forms : (1) simple structure, (2) machine bureaucracy ,(3) professional bureaucracy (4) divisionalised form, and (5) adhocracy . Table1 gives details of the main features of these five forms.

Simple Structure

This form of structure typifies the firm when it is small and entrepreneurial.The structure consists of a top manager and only a few workers (assistants)performing overlapping activities. While they may be a very small administrative

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28

staff, the technical / professional staff are virtually absent. Its other featuresare centralised decision making, informal coordination, and minimal division oflabour. Organisations employing service technology or small batch processingtechnology adapt this form of structure. This structure adapts well to theenvironment. Its goals are stress survival and innovation.

Table 1 Characteristics of Mintzberg’s Five Organisational Types

Simple Machine Professional Divisionalised Adhocracystructure structure bureaucracy form

StructureApproach Functional Functional Functional, Division, Matrix

sometimes hybridhybrid

Formalisation Low High Low to High within Lowmoderate divisions

Centralisation High High Low to Decentralised Lowmoderate to divisions

Lateral Few Few Many Some across Many, builtrelationships divisions, many into structure

within divisions

ConfigurationTechnical / None Many Few Many Many-part ofProfessional headquarters matrixsupport staff departmentsAdministrative Few Many Many Many within Manysupport staff divisions

ContingencyEnvironment Simple, Stable, certain Stable, Complex, Unstable,

changing complex changing uncertainTechnology Routine Routine Service Divisible, Non-routine,

product or product or varies across sophisticatedservice service divisions

Size, life Very small, Large, mature Any size, age Large, mature Moderate,cycle midlifeStrategic Innovation, Efficiency Innovation, Adaptability, Innovation,objectives survival quality efficiency adaptation

(Source: Mintzberg, 1979)

Machine Bureaucracy

The machine bureaucracy is usually found in a large company organisedalong functional lines with little lateral coordination. Its other features are:bureaucratic principles with heavy specialisation, many rules and regulations ,centralised authority, large technical/professional and administrative staff andformalised processes. Organisations adopting routine services or massproduction technology use this form of structure. The environment of theorganisations using this form of structure is generally stable. The goal of theorganisation is to improve internal efficiency.

Professional Bureaucracy

This form of structure is usually found in big functionally designed organisationsemploying professional people. These organisations adopt non-routine servicetechnology (in which new problems arise everyday and task variety is very highand in which employees rely on experience, education, training and trial anderror search for alternative procedures as there are no readymade proceduresfor the problems that are encountered). Hospitals and universities are the bestexamples. Although highly formalised, these organisations decentralise thedecision making authority to those professionals who are actually engaged inthe non-routine services. Organisations having this structure operate in complexand relatively stable environments. Their goals are innovation and quality. As

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the core tasks are performed by the professional staff, the technical staff issmall. But there is generally a large administrative staff.

Divisionalised Form

Typically, a divisionalised form of organisation is a large organisation havingdifferent subunits (divisions ) within it, such as product or market subunits.These units have few lateral coordinating devices. They are also providedliaison service by the corporate level personnel. Decision making isdecentralised. Each division is fairly autonomous. The units/divisions may havevarying non-routine manufacturing technologies. The organisation’s externalenvironment tends to be stable. The technical staff is concentrated at corporateheadquarters and it provides services for all subunits/divisions. Theadministrative support is available within each division.

Adhocracy

This form of organisation is much like a matrix organisation . It evolves incomplex environments. The technology used by the organisation is sophisticated.The structure of the organisation tends to be informal. There is dual chain ofcommand for the purpose of coordination of different activities. Another featureis that the administrative staff is large, but the technical support staff is smallas most of the technical work is performed by the experts located in thetechnical core.

Activity A

Fill the basic parts in Figure 3 with the typical job titles of an organisation withwhich you are familiar. State the functions/ activities performed by the peoplein various positions in each part.

Activity B

(i) Identify the strategy being adopted by an organisation with which you arefamiliar; and examine whether corresponding structural changes are beingmade in the organisation design.

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(ii) Make a brief analysis of the contingent factors that have influenced thestrategy of the said organisation.

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Strategies


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4.5 FROM “STRATEGY-STRUCTURE” TO“PROCESS”: THE NEW PERSPECTIVE ONORGANISATION DESIGN

Bartlett and Ghoshal (1992) consider the studies on strategy-structurerelationship by Chandler (1962), Stopford and Wells (1972), Daniels, Pitts andTretter (1984) and Egelhoff (1988) as the first generation approaches toorganisation design because the complexity and dynamic nature ofenvironmental demands has made the structural fit (strategy-structure linkage)less relevant and harder to achieve. Coupled with this, there has been agrowing realisation that just focusing on organisational structure may not beenough to implement complex strategic concerns successfully. Therefore, asecond generation of models of organisation design have been developed whichfocus on the management process that will make strategic decision work.

The second generation models are based on the premise that all structuredforms are not equally effective in implementing a given strategy, and therefore,the role of the management is to create an internally consistent and balanceddesign.

Design Parameters for Second Generation Organisation DesignModels

In order to create an organisation design that is internally consistent andbalanced, the following design parameters can be used (Jaap Paauwe andPhilip Dewe, 1995):

Structural and formal coordinative mechanisms;

Systems and tools (administrative mechanism);

Cultural transformation (socialisation , normative integration).

Structural and Formal Coordination Mechanisms

These include: centralisation, formalisation, and specialisation

Centralisation (or decentralisation) refers to whether the power of decisionmaking lies at the upper or lower levels of the chain of command.

Formalisation: (also called standardisation ) indicates the extent to which thepolicies, rules, job descriptions etc. are written down, and the procedures areestablished through standard routines.

The degree of specialisation refers to the number of specific tasks that arecarried out through separate and distinct functions.

Systems and Tools (Administrative Mechanisms)

The coordination mechanisms mentioned above will need to be supported andsupplemented by various systems and tools (also called as administrativemechanisms). Some of the administrative mechanisms are: data managementmechanisms, manager’s management mechanisms, and conflict resolutionmechanisms (Y. Doz and C. K. Prahalad, 1981)

Data Management mechanisms include information systems, measurementsystems, resource allocation procedures, strategic planning, budgeting processes.Manager’s management systems refer to the choice of key managers, careerpaths, rewards and punishment systems, compensation schemes, managementdevelopment and pattern of socialisation.

Conflict resolution mechanism include coordination committees , task forces,issue resolution processes.

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Cultural Transformation (Socialisation/Normative Integration)

In order to deal with all the diversity and complexity involved in managing anorganisation effectively, the socialisation of managers in key positions is crucial.In other words, the managers have to internalise certain values so as to be in aposition to make strategic choices and operational decisions that are in line withthe mission and goals of the company and with the relevant values of thecompany.

The socialisation can be facilitated through:

job rotation, regular transfer of people, management development;

building up an informal network through management developmentprogrammes;

international conferences and forums to facilitate international and inter-unittransfer of knowledge and learning;

task forces;

encouraging informal communication channels.

4.6 RESTRUCTURING STRATEGIES

An analysis of the empirical studies on the relationship between organisationdevelopment strategies and structures indicates that there is a certain pattern inthe relationship between the two.

Table 2 gives a summary of relationship between strategies of organisationaldevelopment and structure.

Table 2: Summary of Relationships between Strategies ofOrganisation Development and Structure

Strategies of organisational development Structural changes that are oftenassumed to be outcomes

Organisational growth Increased vertical differentiation—Growth in size per se lengthening hierarchies—Growing number

of jobs and departments—horizontaldifferentiationRising formalizationIncreased delegationPossible economies inadministration, offset by rising problemsof administering complexity

Growth via diversification Increased specialisation of skills andfunctionsDivisionalisation of majorsubunits Rising formalisation, especially ofplanning and resource allocation-procedures Increased delegation

Technological Development Growth of specialised professional staffIncreased specialisation of skills andfunctions Other structural concomitantsdependend on the type of technologyemployed

Acquiring a secure domain through Establishment of new roles, especially tonon-competitive means— especially manage relationships with otherjoint programmes organisations Increased delegation More

active internal communications via lateralrelationships


Strategies


32

Improving managerial techniques with Depends on methods adopted, but usuallya view to enhancing flexibility associated with: Establishment of new

specialised roles to service verticalinformation systems— for example,computer-based systems— are to promotelateral coordination More active internalcommunication via lateral relationshipsIncreased delegation

Source: John Child and Alfred Keiser, 1981. “Development of organisations, over time”in Paul C. Nystrom and William H. Starbuck (Eds.), Handbook ofOrganisational Design (Vol. 1), London: Oxford University Press, p.39

The four strategies of organisational development outlined in Table 2 are by nomeans mutually exclusive. Their choice and combination depend largely uponcircumstance. Growth, for example, is possible through increase in volume ofoperations or through acquisitions. Both need different approaches. The degreeof diversification varies depending on the company’s share in the market,technological synergy, government regulations, management capacity etc.

As organisations seek to become flexible, or to retain flexibility in the face ofgrowing complexity and as they employ larger number of professional andtrained personnel, the forms of effective and acceptable control and integrationwithin the organisations change. This means that the familiar model ofbureaucracy needs to be modified. The problem of elongation of organisationalhierarchies and the serious problems thereof need to be tackled through policiesaimed at increasing spans of control, and , thereby, delegation of responsibility.Organisational control systems have to shift from an emphasis on thespecification and supervision of means— how people are to behave and carryout their work — towards an emphasis on results.

4.7 SUMMARY

In this unit we have outlined the seven-step sequence suggested by Allen thatcould be followed to set the organisation design process into action. We havedescribed the evolutionary process of organisation design and noted thatorganisation’s structural characteristics undergo different stages of organisation’slife cycle. We have discussed the universal perspectives of organisationdesign— the bureaucratic model, the behavioural model, and the contingencyperspective — in order to understand the theoretical principles and differentvariable of organisation design. We have examined why the “structure followsstrategy” approach to organisation design has been considered less relevant andharder to achieve.

We have briefly discussed the new perspective on organisation design whichfocuses on the management process that will make strategic decisions work.We have noted that the restructuring strategies have to be appropriate to thedevelopment strategies.


1. Briefly describe the evolutionary process of organisation design.

2. Outline the universal perspectives of organisation design.

3. Briefly explain the design parameters of second generation of models oforganisation design.

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Louis Allen, 1958. Management and Organisations, New York: McGraw-HillInc., pp. 72-77

David K. Banner and T. Elaine Gagné, 1995. Designing EffectiveOrganisations: Traditional and Transformational Views, Thousand Oaks,California: Sage Publications.

C. A. Bartlett and S. Ghoshal, 1992. Transnational Management: Text, Casesand Readings in Cross-Border Management, Irwin: Homewood , IL.

Tom Burns and G. M. Stalker, 1961. The Management of Innovation, London,Tavistock.

Gene Burton and Manab Thakur, 1995. Management Today: Principles andPractice, New Delhi: Tata McGraw-Hill Publishing Company Limited.

A. D. Chandler, 1962. Strategy and Structure: Chapters in the History ofIndustrial Enterprise, Cambridge, MIT Press.

J. D. Daniels, R. A. Pitts and M. J. Tretter, 1984. “Strategy and Structure ofUS Multinationals”, Academy of Management Journal, 27 (2), pp. 292-307.

Y. Doz and C. K. Prahalad, 1981. “Headquarter’s Influence and StrategicControl in MNCs”, Sloan Management Review, 23, Fall, pp.15-29.

W. G. Egelhoff, 1988. “Strategy and Structure in Multinational Corporations: ARevision of the Stopford and Wells Model”, Strategic Management Journal, 9,pp.1-14.

K. Harigopal, 2001. Management of Organisational Change: LeveragingTransformation, New Delhi: Response Books.

Pradip N. Khandwalla, 1991. Organisational Designs for Excellence, NewDelhi: Tata McGraw-Hill Publishing Company Limited.

Sukul Lomash and P. K. Mishra, 2003. Business Policy and StrategicManagement, New Delhi: Vikas Publishing House Pvt. Ltd.

Fred Luthans, 2002. Organizational Behavior, Boston: Tata McGraw-Hill Irwin.

Henry Mintzberg, 1979. The Structuring of Organisations, Englewood Cliffs,New Jersey: Prentice Hall.

Paul C. Nystrom and William H. Starbuck (Eds.), 1981. Handbook ofOrganisational Design (2 Volumes), London: Oxford University Press.

Jaap Paauwe and Philip Dewe, 1995. “Organisational Structure of MultinationalCorporations: Theories and Models” in Anne-Wil Harzing & Joris VanRuysseveldt (Eds.), London: Sage Publications Ltd., pp. 51-74.

Stephen P. Robbins, 2001. Organizational Behavior, New Delhi: Prentice Hallof India Private Limited (9th Edition).

Anup K. Singh, Rajan K. Gupta and Abad Ahmad (Eds.), 2001. Designingand Developing of Organisations for Tomorrow, New Delhi: ResponseBooks.

B. P. Singh and T. N. Chhabra, 2002. Organisation Theory and Behaviour,Delhi: Dhanpat Rai & Co. (P) Ltd.

J. M. Stopford and L. T. Wells, 1972. Managing the MultinationalEnterprise, New York: Basic Books.


Strategies

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Block

3APPROACHES TO WORK DESIGNUNIT 5

Organising and Analysing Work 5

UNIT 6

Job Design 23

UNIT 7

Emerging Issues of Work Organisation and Quality of Working Life 43



Approaches To Work Design

2











ISBN-81-266-1293-2








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BLOCK 3 APPROACHES TO WORK DESIGN

This block consists of three units. The first unit deals with the concept oforganising and analysing work, methods to improve and measure the workprocesses. It has also covered the concept of human engineering, workspaceand architectural ergonomics and the impact of information technology on workdesign. The second unit entitled as Job Design deals with meaning of jobdesign, different approaches and factors affecting job design. It has focussed onthe job design techniques and impact of advance technology on job design. Thelast unit deals with the emerging issues of work organisation and quality ofwork life.


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5

Introduction toMicrobesUNIT 5 ORGANISING AND ANALYSING

WORK

When you finish this Unit, you should be able to comprehend:

the meaning of work;

different approaches to organizing and analyzing work;

methods to improve and measure the work process;

the Time and Motion study;

the concept of Ergonomics; and

impact of Information Technology on Work Design.

Structure

5.1 Introduction

5.2 Meaning of Work

5.3 The Concept of Organizing and Analyzing Work

5.4 Different Approaches to Organizing and Analyzing Work

5.5 Work Improvement and Measurement

5.6 Time and Motion Study

5.7 Ergonomics

5.8 Workspace and Architectural Ergonomics

5.9 Impact of IT on Organizing Work

5.10 Summary



5.1 INTRODUCTION

Work is basic to our sense of social and personal identity. After a longcontemplation of the human condition, Sigmund Freud put forward work andlove as the two important constituents of a contented and well-adjustedpersonality. Work is an important human venture because it has a potenteffect in binding a person to veracity. Through work, people become firmlyaffixed to reality and resolutely bonded in human relationships. Work is alsothe soul of an organization. It is one essential reason for which an organizationsubsists.

The nature of work and its organization has interested managers, economistsand social scientists. Managers have largely been interested in maximizingoutput from available resources. Economists and social scientists have raisedquestions about the organization of work in relation to issues of the individualand society in general.

5.2 MEANING OF WORK

Many authors have tried to portray exactly what work is. Work is anyproductive activity undertaken to produce a given product or a service. It maybe defined as “the effort or activity of an individual that is undertaken forthe purpose of providing goods or services of value to others and that isconsidered by the individual to be work”( Hall,1994).


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The meaning of work differs from person to person and culture to culture. Onestudy found six patterns people follow in defining work, and these help explainthe cultural differences in people’s motivation to work. Pattern A peopledefine work as an activity in which value comes from performance and forwhich a person is accountable. It is generally self-directed and lackingnegative affect. Pattern B people define work as an activity that provides aperson with positive personal affect and identity. Work contributes to societyand is not unpleasant. Pattern C people define work as an activity fromwhich profit accrues to others by its performance and that may be done invarious settings other than a working place. Work is usually physicallystrenuous and somewhat compulsive. Pattern D people define work asprimarily a physical activity a person must do that is directed by others andgenerally performed in a working place. Work is usually devoid of positiveaffect and is unpleasantly connected to performance. Pattern E peopledefine work as a physically and mentally tiring activity. It is generallyunpleasant and devoid of positive affect. Pattern F people define work as anactivity constrained to specific time periods that does not bring positive affectthrough its performance.

These six patterns were studied in six different countries: Belgium, the formerFederal Republic of Germany, Israel, Japan, the Netherlands, and the United

States. The findings of the study show that a small percentage of workers inall six countries used either Pattern E or Pattern F to define work.Furthermore, there are major difference among countries in how work isdefined. In the Netherlands, work is defined most positively and with the mostbalanced personal and collective reasons for doing it . Work is defined leastpositively and with the most collective reason for doing it in Germany andJapan. Belgium, Israel, and the United States represent a middle positionbetween two (England and Harpaz, 1990).

5.3 THE CONCEPT OF ORGANIZING ANDANALYZING WORK

The goal accomplishment of an organization requires work to be done in manydifferent areas, and highly specialized knowledge and experience. Hence thework is divided among people, work units such as divisions, departments andgroups. Organizing work refers how to arrange matters so that people canwork in concert to get the work done, division of work between peopleand groups, the work done by managers at different levels, and co-coordinating the work of people and groups to make possible to realizethe goal of the organization .

It includes issues like:

Organization Charts : Organization chart is a form of line diagram . Itindicates the arrangement of work units, the delegation of work (that is thedelegation of responsibility) and work units in relation to each other.

Division of Work : The work is divided among people and work units suchas divisions, departments or groups. The Head of each work unit is incharge for the work done by his unit as well as for the work he doeshimself.

Organising the work done (responsibility carried) at different levels .

Maintaining relationships between people at different levels .

Coordinating work between people etc.

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5.4 DIFFERENT APPROACHES TO ORGANIZINGAND ANALYZING WORK

I. The Ancient Approach

The concept of organizing work was there even in ancient times. For instance,the ancient Egyptians built their pyramids, the ancient Chinese built the GreatWall of Chine, the Mesopotamians used to irrigate their land and wall theircities, and the Romans built their roads, aqueducts and Hadrian’s Wall. Allthese man-made construction required large amounts of human effort andtherefore organizing i.e. planning, control and coordination.

The Chinese philosopher Mencius (372-289BC) wrote about the concept andthe advantages of the division of labor. Records reveal that the ancient Greeksunderstood the advantages of, and practiced uniform work methods. They alsoemployed work songs to develop a rhythm in order to achieve a smooth, lessfatiguing tempo and to improve productivity.

The division of labor was also recognized by Plato (427-347BC). He wrote inThe Republic, ‘A man whose work is confined to such limited task mustnecessarily excel at it’. However, work itself was viewed by the ancientGreeks and the Romans, as demeaning / humiliating. Those who could afford todo so were treated as employed slaves.

With the fall of the Roman Empire, development was reduced; slavery beingreplaced by feudalism. In pre-Reformation Christian Europe work was alsoseen as a burden. In this period, the mechanical clock was invented byHeinrich Von Wych in Paris in 1370, and Guttenberg’s printing press was setup. The former permitted accurate work measurement and the latter the abilityto communicate by the printed word. Indeed Guttenberg’s inspired creativethinking can be viewed as an early example of method study. However, withthe Reformation the Protestant ‘work ethic’ emerged based on Luther’sglorification of work theory. Calvinism brought further consolidation to thisprinciple and with it the virtues of frugality and the honorable acquisition ofwealth. Work was viewed in society as respectable and idleness as awful.

II. The Approach during the Industrial Revolution Period

The momentum for industrial revolution was initiated in the seventeenthcentury. Agricultural methods had improved in Europe. Technical advanceswere also being made, most notably in textile manufacturing, in the eighteenthcentury with the invention of Hargreaves’s spinning jenny, Arkwright’s waterframe and Compton’s mule. The steam engine first developed in 1698 byThomas savory, was harnessed by James Watt. These factors, technologicaldevelopments, expanding trade/markets, growing populations createdopportunities for merchants and entrepreneurs to invest in new factories. Thiswas the beginning of the Industrial Revolution. All these necessitated theimprovement in work methods, quality, and productivity of workers.

With the emergence of the factory system, Adam Smith, the Father ofEconomics advocated making work efficient by means of specialization in theeighteenth century. He advocated dividing the work down into simple tasks.He provided three advantages of the division of labour:

the development of skills;

the saving of time; and

the possibility of using specialized tools

Organising andAnalysing Work


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After the War of Independence there was a shortage of musket parts in theUnited States. Eli Whitney proposed the manufacturing of muskets by meansof using interchangeable parts. Records form the Soho Bell Foundry in Chelsea,around the same time as Whitney, evince the use of production standards, costcontrol, work study and incentives during the period..

In 1832, Charles Babbage, an engineer, philosopher and researcher, examinedthe division of labor in his book On the Economy of Machinery andManufacturers. Babbage proposed, as an advantage of the division of labor,that the amount of skill needed to take on a specialized task was only the skillnecessary to complete that task. He illustrated this concept by breaking downthe manufacture of a pin, into seven elements. The important inference foremployers was that they need to pay for the amount of skill necessary tocomplete each individual task. He advocated breaking down jobs into elementsand costing each element.

In this manner, these developments foreshadow the machine age, replacingtraditional manual labor and improving productivity. Machines were located nearsources of power, first water later coal for steam. Large concentration ofmachines were gathered in one place under one roof in the factories. Hugenumbers of people came together to operate these machines and in the deliveryof the outputs from the factories. As a result, the management functions ofcontrol, planning and coordination were required with greater strength..

At the turn of the century, the problem of layout and method were studied byRobert Owen. Owen through experimentation at the New Lanark Mills wassuccessful in raising the living conditions of his workers whilst reorganizing hismills on commercial principles. Robert Owen is endorsed with being the first toidentify fatigue and the work environment as factors affecting the performanceof factory workers.

III. The Scientific Management Approach

Frederick W. Taylor known as the father of scientific management and modernindustrial engineering. By experimenting with different designs of shovel for usewith different material (from ‘rice’ coal to ore) he was able to design shovelsthat would permit the worker to shovel for the whole day. In so doing, hereduced the number of people shoveling at the Bethlehem Steel Works from500 to 140. This work, and his studies on the handling of pig iron, greatlycontributed to the analysis of work design and gave rise to method study.

In 1909, he published the book for which he is best known, Principles ofScientific Management. Taylor’s impact has been so great because hedeveloped a concept of work design, work-measurement, production control andother functions, that completely changed the nature of industry.

Objectives of Scientific Management

The four objectives of management under scientific management are as follows:

The development of a science for each element of a man’s work to replacethe older rule-of-thumb methods.

The scientific selection, training and development of workers instead ofallowing them to choose their own tasks and train themselves as best theycould.

The development of a spirit of hearty cooperation between workers andmanagement to ensure that work would be carried out in accordance withscientifically devised procedures.

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The division of work between workers and the management in almost equalshares, each group taking over the work for which it is best fitted instead ofthe former condition in which responsibility largely placed with the workers.

His framework for organization was: clear delineation of authority, responsibility,separation of planning from operation, incentive schemes for workers,management by exception, and task specialization.

Assumptions of Scientific Management

Two basic assumptions dominated Taylor’s approach to the design of jobs.First Assumption (Management): Management is assumed to be moreeffective than labor at devising methods for executing the work and then atplanning and organizing. By breaking the work down into simple elements:

the training of workers is clearly simplified

workers are more easily substituted, one for another

supervision is made easier as it is apparent when workers are doingsomething that is not part of the specified task.

Second Assumption (Workers): Human beings are rational economic beings.The prime goal is assumed to be monetary and consequently reward systemswhich relate pay levels to output are seen as likely to result in maximumoutput. As such, humans will examine a situation and identify a course ofaction likely to maximize their self interest and act accordingly. All that isrequired to maximize output, from the organizations perspective, is to hire theright people, train them properly and construct an appropriate reward system.If the work can be paced, a worker can develop a natural rhythm andmomentum.

Principles of Scientific Management

Three primary principles of scientific management directly or indirectly relatingto work design are:

i. Taylor assumed that it is possible to “gather all of the traditional knowledgewhich in the past the been possessed by the workman and then classifying,tabulating, and reducing this knowledge to rules, laws, and formulae whichare immensely helpful to the workmen in doing their daily work”. In thisway the industrial engineer (and the manager) learns the best way for a jobto be performed.

ii. The work of every individual employee “is fully planned out by themanagement at least one day in advance… describing in detail the taskwhich he is to accomplish as well as the means to be used in doing thework” (p.39). If management understands the process by which the work isdone, it should be possible to plan out the work in the smallest detail beforethe employee even show up. In this way the manager and engineer knowexactly how the work will be accomplished.

iii. “The science which underlies each workman’s act is so great and amountsto so much that the workman who is best suited to actually do the work isincapable (either through lack of education or through insufficient mentalcapacity) of understanding this science” (p.41). If management understandsthe best, most efficient way for a job to be accomplished, and if this isplanned out in advance, no mental contribution is necessary from the worker.

The scientific management approach was exceedingly successful in the firsthalf on the 20th century.



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Constraints of Scientific Management

Although scientific management was unquestionably effective for more than50 years, gradually it is losing ground because of the following reasons.

First, production and/or service jobs are no longer simple. Creatinguncomplicated jobs was easy at the beginning of the 20th century because theproducts and the manufacturing processes were elementary . However this isnot the case today. Even unskilled factory jobs today require reading computerscreens, working with numerical tools, or using and/or making custom productsand services.

Second, allied with this increase in job complexity, the technology employed inboth manufacturing and the service sector has also increased in complexity.The jobs of today also are changing more rapidly than in the past and so alsothe technology. If the technology is changing daily, so are those rules. By thetime management understands the technology and how it should best be used,the technology has changed.

Finally, products and services are changing at an ever more rapid rate. If wewant to compete in the global marketplace, speed has become a necessity(Dumaine, 1989).

IV. Fordism

In the early 20th Century , Henry Ford dramatically established the concept ofrelative surplus value by doing what at the time was considered impossible. Hepaid workers 4 or 5 times the ‘going rate’ (actually the bare minimum thatcould be screwed from the bosses), yet still made a huge profit. By vastlyincreasing the production of relative surplus value through the use of theassembly line, coupled with FW Taylor’s ‘Scientific Management’ of the workprocess, he was able to vastly improve the productivity of his plants.

Ford brought into existence the concept of ‘mass worker’. Whereas before thecapitalist had relied largely on skilled workers to manage the productionprocess, the mass worker was a new type.

V. The Human Relations Approach

The human relations approach arose almost as a direct result of the harshnessimposed by supervisors who excessively used scientific management principles.An outgrowth of the famous Hawthorne Studies conducted during 1924-33, thehuman relations approach de-emphasized the technical components of a job andconcerned itself with the impact of employee social and psychological needs onproductivity.

Originally, the goals of the Hawthorne investigators were to identify elements ofthe work environment which fostered productivity. Surprisingly, the investigatorsdiscovered that the greatest impact on productivity was that of the socialinteraction patterns of the workers rather than environmental conditions likelighting. The significance of the findings to management are that:

workers thought and acted not as individuals but as a group;

workers would sacrifice their self-interest in the fact of group pressure;

money is not the sole motivator. (This prompted Mayo to comment: “Factorymanagers are going to someday realize that workers are not governedprimarily by economic motives.”)

supervisors have significant influence on output.

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Mayo’s recommendations reflected these findings and were that:

managers must not ignore the informal organization but ensure its norms arein harmony with organizational goals;

man is basically motivated by social needs, not economic ones;

in order to influence the behavior of individuals managers must focus on thework group rather than individuals; and

effective supervisors are those who satisfy subordinates’ social needs.

These recommendations led to principles advocating the design of jobs whichfacilitate social need gratification by the workers, including the use of non-authoritarian leadership styles by supervisors and the fostering of effective workgroups.

VI. The Socio Technical Systems Approach

The socio technical systems approach to work redesigns tasks in a manner thatjointly optimizes the social and technical efficiency of work. Beginning withstudies on the introduction of new coal-mining technologies in 1949, the sociotechnical systems approach to work design focused on small, self-regulatingwork groups. Later it was found that such work arrangements could operateeffectively only in an environment in which bureaucracy was limited. Today’strends towards lean and flat organizations, work teams, and an empoweredworkforce are logical extensions of the sociotechnical philosophy of workdesign.

VII. Modern Approaches

Modern concepts, are not entirely disparate to scientific management andclassical organization theory, but are evolved from earlier views and representmodifications based on research and experience.

In order to counter the weaknesses of the earlier approaches discussed abovethat the behavioral science approach was adopted. Industrial psychologists ,although at first arrived at similar conclusions to the human relations movement,based on their research concentrated on motivation of individuals .Andindustrial sociologists looked at the behavior of formal and informal groups atwork.

In the period between 1951 and 1971, managers moderated their ‘logical’approach to such things as job design and considered such alternatives asparticipation, job-redesign, job enlargement and job enrichment. By the mid-1960s and 70s in Britain there was much puzzlement as to which theory tofollow and much conflicting evidence from researchers. Goldthorpe (1969), forexample, was to find that some employees, although they disliked the workwhich involved repetitive tasks in their Coventry car assembly plant, would putup with them for the money rather than move to more interesting jobs andlower wages in plants nearby. Experiments at Philips at Eindhovendemonstrated that although output initially mounted after enlarging the jobs inradio assembly, workers were unhappy with their new jobs and responsibilitiesand many left. White (1973) also found that the motivation of managers towork depended very much on two factors: the type of job that was beingperformed and the age of the jobholder. These findings show the boundaries ofapproaches such as those proposed by Herzberg and others that advocate asingle ‘best way’ and draw attention to the danger of viewing behavioralscience as a provider of packaged solutions.



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In nutshell, advocates of each approach point the finger at the incompetence ofthe application of other approaches. Accordingly, it becomes clear that no singlepanacea exists for work organization. As advocated by the contingencytheorists, it depends upon several ‘contingent variables’ .

5.5 WORK IMPROVEMENT AND MEASUREMENT

Work Improvement

The term ‘work improvement’ is very wide and includes the study of work andsimplification and standardization of methods, equipment and working condition.It is otherwise known as ‘method study’ or method engineering’. Workimprovement may be defined as scientific techniques of studying andanalyzing the conditions influencing the quantity and quality of work doneby the workers According to W.W. Haynes and J.D. Massie, “All of thephysical aspects of operations can be considered as a part of the workimprovement study, layout of work-place, materials handling, design ofequipment, working conditions including lighting, color, air-conditioning, powerand so forth”.

Work improvement not only improves work efficiency, but also improves humancomfort and satisfaction. This is also known as ‘human engineering’ or‘ERGONOMICS’.

Work Measurement

Work measurement deals with assessing the time content of a job performedby an operator to determine the proper time to be allowed and the effortsrequired for the efficient performance of a job. R.M. Curie has defined workmeasurement as ‘application of techniques designed to establish the timefor a qualified worker to carry out a specified job at a defined level ofperformance’. Work measurement is popularly known as ‘time study’ whichis a major constituent of the work study. Its advantages are as follows:

Work measurement determines the normal time for a job and thereby servesas a basis of a sound wage incentive system.

The standard time determined by work measurement helps in labor costcontrol.

Work measurement provides the relevant data for efficient work planningand control.

Work measurement facilitates effective manning of plant and equipment.

Work measurement technique can be useful in reducing the time and costinvolved in the proposed production orders.

Work Measurement vs. Work Improvement

Work measurement is the study and analysis of time taken in the performanceof a specific task. Work improvement denotes the study of methods andtechniques of production for increasing efficiency. These two concepts areinterlinked with each other because both of these aim to increasing productivity.Efficient work improvement is a precondition of work measurement. Workimprovement uses the techniques of motion study, process analysis, plant layoutand materials handling whereas work measurement involves time study, worksampling and synthetic standards. Work improvement is done to suggest thebest method of doing the job whereas work measurement helps in fixing fairday’s work, laying down wage incentive plans, and production planning andcontrol.

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5.6 TIME AND MOTION STUDY

Work study is an important tool in the hands of management for achievinggreater productivity in the organization. It is a methodical study of the use ofworkers, materials and equipment in order to enhance existing methods andwork performance by elimination of every type of waste. Taylor recommendedthe technique of time study for work measurement and determination of timestandards. Gilbreths devised the technique of motion study to carry out workstudy. Thus, work study covers both time study and motion study for workmeasurement and work improvement.

Objectives of Work Study

The objectives of work study are as follows:

Effective use of manpower

Effective use of methods, machines and equipment.

Effective layout of plant.

Elimination of unnecessary human motion.

Simplification and standardization of operations.

Measurement of time required to perform an operation and establishment ofstandard level of performance for each worker.

Motion Study

Frank B. Gilbreth, an intrusive Industrial engineer, had pioneered the techniqueof Motion study in association with his wife Lillian Mollar Gilbreth during1902-12. Prior to use of Gilbreth’s standard method, 120 bricks laid per workerwere considered to be normal. Gilbreth’s development of standard method usingmotion study resulted in an average production rate of 350 bricks per workerper hour. This increase was not achieved by making bricklayers work fasterbut through most effective way of doing it. For example, Gilbreth reduced thenumber of motions from 18 to 5 in laying the bricks. Traditionally, a bricklayerwould bend over and pick up a brick from a pile of bricks on a relativelyunadjustable scaffold, rotate the brick to find the best side, and then lay thebrick by tapping with mortar of often poor consistency. Gilbreth suggested adifferent pattern. Gilbreth wanted bricklayers to be able to pick up a brickmost efficiently. Therefore, he had minimum-cost laborers arranging the brickson a pallet for ease of pick up by the master bricklayer. He then providedadjustable scaffolds, the proper location of bricks and mortar, and mortar ofproper consistency. The result was a vast improvement in productivity withless fatigue.

From various studies Gilbreth developed the law of human motion from whichevolved the principle of motion economy. The motion study is a process ofanalyzing a job to find the easiest, most effective, and most economical way ofdoing it with the help of a close scrutiny of the motions made by a worker ora machine. Motion study can be divided into three components, namely :(i) analysis of therbligs, (ii) micromotion study; and (iii) principles of motioneconomy.

Therblig Analysis

Gilbreth classified the basic motions into what he called therbligs (which isgilbreths spelled back), such as search, find, transport empty, preposition, grasp,and so forth A therblig is a small part of a job. Gilbreths gave a list of 17basic motions of a worker. The list is as follows : 1) Search (Sh) 2) Select.(St.) 3) Grasp (G) 4) Transport empty (TE) 5) Transport loaded. (TL) 6) Hold(H) 7) Release load (RL) 8) Position (P) 9) Preposition (PP) 10) Inspect. (I)



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11) Assemble (A) 12) Disassemble (DA) 13) Use (U) 14) Unavoidable delay(UD) 15) Avoidable delay (AD) 16) Plan (Pn) 17) Rest for overcoming fatigue (R).

Micromotion Study

Micromotion study is a study of the fundamental elements of an operation withthe help of a high speed movie camera in order to eliminate the unnecessarymotions involved in the operation and balancing the necessary motions. Thespeed of the camera should be 1,000 frames per minute. Finding out thenumbers of films that elapse in doing a particular element of motion andknowing the speed of the camera, one can know the exact time value thatcould be assigned to a particular element. This value can be indicated on theframe scale or time scale drawn on the simo chart (simultaneous motion cyclechart). The study is known as memo motion study if it is done with the helpof a slow speed camera.

Principles of Motion Economy

The principle of motion economy developed by Gilbreths envisage the correctapplication of theories behind motion elements to achieve harmonization ofhuman body movements, best layout of work places and the optimal design ofequipment and tools. There are five basic principles of motion economy whichare listed below

Principles of minimum movement.

Principles of simultaneous and symmetrical movement.

Principles of rhythmic movement.

Principles of natural movement.

Principles of habitual movement.

The study of the above principles is a lengthy one, usually coming under workphysiology. However, a few rules of effective motions are mentioned below:

1. Successive movement should be so related that one movement passes easilyinto that which follows.

2. The order of movements should be so arranged that the mind can attend tothe final aim.

3. The sequence of movements is to be so framed that an easy rhythm can beestablished.

4. The continuous movements are preferable to angular movements involvingsudden changes in the direction of movements.

5. The number of movements should be reduced as far as possible.

6. Simultaneous use of both hands should be encouraged.

7. Fixed positions should be provided for tools, materials, etc.

Time Study

Time study is an essential way of work measurement. It is the art ofrecording and analyzing methodically the time required to perform a motion or aseries of motions. This divulges that time study is to be conducted after amotion study has been undertaken.

Probably the first attempt at formally timing work was done in 1760 when JeanRadolphe Perronet studied the manufacturing of pins and attempts to establishstandard times for various operations. Documents have been found relating tothe Old Derby China Works for the year 1792 in which Mr. Thomas Masonpledged himself to undertake time studies in the factory. But the term TimeStudy was coined by F.W. Taylor. Unlike the early activities of Perronet andothers, Taylor started to break the timing down into elements.

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Objectives

The need for time study arises whenever a better method of doing a work isintroduced in a plant. Time study endeavors to:

Determine a standard day’s work by finding the amount of time needed byworkers to perform the various operations and

Provide production data.

Procedure of Time Study

The procedure to time study involved the following steps:

Selection of work to be studied.

Establishing standardized methods, equipments and working conditions.

Selecting the average worker who is to be studied while performing thework. Necessary confidence in the worker should be created so as toobtain his cooperation.

Division of work into elements suitable for time study.

Studying the operator doing the job. For the validity of the time studyresults, it is necessary that the analyst should take readings not once but anumber of times. The number of times for which time study should berepeated, (i.e., number of cycles) will depend upon the level of confidenceneeded.

Recording time with the help of stop watch on the time study board of therequired number of work cycles.

After the time values for each element for a sufficient number of cycleshave been recorded, the mode value is selected. The mode value representsthe most frequently appearing time value for an element of the job. Modevalues of different elements will be added to get the normal time for doing ajob. Normal time is the time required by an average worker working undernormal conditions to perform a job.

Adding allowance to normal time to get the standard time. Relaxationallowances include personal allowance, fatigue allowance, delay allowance,etc.

In the above mentioned procedure, it is recommended that an average workershould be preferred for the purpose of time study. If an average worker is notchosen, performance rating factor will have to be assessed to determine thenormal time for each category of worker. For instance, workers are dividedinto three categories : (i) Poor workers (75 points); (ii) Normal or averageworkers (100 points); and (iii) Good Workers (125 points). If a good worker isstudied, the time taken by him to perform the job will be multiplied by 125/100to get the normal time taken by an average worker

Benefits of Time Study

The advantages of time study are as follows:

Time study helps in determining the ideal workload of different categories ofworkers.

The standards of performance evolved as a result of time study may beused for evaluating the performance of employees.

Time study helps in designing a suitable incentive wage plan to motivate theworkers to increase their productivity.

Cost standards are very accurate if they are based on the results of timestudy.



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Limitations of Time study

Time study is not limitless. Some of the perceptible limitations of time studyare like so:

There are variations of the standard time determined by different observers.Even the same observer sets different standard time each time he is askedto conduct the time study.

Time study involves an element of subjectivity of the observer. Sufficientjudgment has to be used by the observer in the choice of a measure ofcentral tendency, deciding the degree of personal allowance and so on.

The standard time determined by time study may not be accurate becauseof incorrect performance rating of the operator under study.

Time study usually has an adverse effect on the workers. They may notshow the normal behavior pattern when they are being observed. Even thetrade unions may resist stop watch time studies.

Difference between Time Study and Motion Study

The difference between the Time and Motion study is specified in Table 1.

Table 1: Difference between Time Study and Motion Study

Basis Time Study Motion Study

1. Purpose Concerned with the determination of Concerned with thetime taken by the workers in performing motions or movements ofeach operation on the job. workers.

2. Scope Covers both workers and machines. Covers only workers.

3. Procedure Conducted with the help of a Conducted bystop watch. photographic procedures.

5.7 ERGONOMICS

Ergonomics is the scientific, interdisciplinary study of individuals and theirphysical relationship to the work environment It is closely associated withindustrial and experimental psychology. Beginning in 1940, the term ‘humanengineering’ was associated with equipment design. By mid 1950s, severalaircraft companies began to utilize human engineering in machine design andtraining programmes.

Ergonomics is also called the science of human engineering. Human engineeringmay be described as an approach by which an engineer set about the problemof designing machine and equipment to be used by human beings. The humanengineer applies scientific knowledge and research methodology to study humanareas as they pertain to the operation of the machine systems and concepts.Human engineering groups generally include engineers, psychologists,physiologists, mathematicians, anthropologists, physicians and specialists fromother fields.

The human and machine systems possess different characteristics as shown inTable 2. Ergonomics advocates using these characteristics in complimentarymanner while designing and implementing any production and mechanicaloperations.

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Table 2: Man Vs Machines

Man excels in Machines excels in

1. Detection of certain forms of very 1. Monitoring (both men & machines)low energy levels.

2. Sensitivity to an extremely wide 2. Performing routine, repetitive, or veryvariety of stimuli precise operations.

3. Perceiving patterns and making 3. Responding very quickly to controlgeneralizations about them. signals

4. Detecting signals in high noise levels 4. Exerting great force, smoothly andwith precision

5. Ability to store large amounts of 5. Storing and recalling large amounts ofinformation for long periods and information in short time periodrecalling relevant facts of appropriatemoments.

6. Ability to exercise judgment where 6. Performing complex and rapidevents cannot be completely defined computation with high accuracy

7. Improvising and adopting flexible 7. Doing many different things at oneprocedures time

8. Ability to react to unexpected 8. Deductive processeslow-probability events

9. Applying originality in solving 9. Insensitivity to extraneous factorsproblems: i.e. alternate solutions

10. Ability to profit from experience 10. Ability to repeat operations veryand later course of action. rapidly, continuously, and precisely

the same way over a long period

11. Ability to perform fine manipulation, 11. Operating in environments, which areespecially where misalignment hostile to man or beyond humanappears unexpectedly tolerance

12. Ability to continue to perform evenwhen over loaded.

13. Ability to reason inductively

Source: Woodson, Wesley E. and Donald W. Conover (1964), Human EngineeringGuide for Equipment Designers, University of California Press, Berkeley.

Needs of Human Engineering

Human engineering is the study of people at work and of work methods. Itspurposes are to:

Design human-machine system involving the best combination of human andmachine elements.

Study equipments design, hours of work and physical conditions of work.

Design the machine for its users fitting it to their physiological requirementsto minimize fatigue and maximize output.

Reduce the types of injuries caused by poor design. Ergonomically designedspaces, systems and environment that take into account both thepsychological and physical aspects of the people increases efficiency, healthand prevent injuries and musculoskeletal disorders

Assist in design and operation of man-machine environmental system whichwill ensure physical and mental ease to the human beings.

Design the machines and equipments in such a manner that not only theusers but also those in the vicinity should be protected against dangers ofaccidents.

Design the machinery, equipment and tools to suit the human operator andnot vice versa. It includes the following :



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Tools and materials should be arranged at the work-place in such a waythat the operator can reach them easily.

Machine control should be installed in the working area so that it iswithin the reach of the machine operator.

There should be mechanization of materials handling on and betweenprocessing points, particularly, for heavy and bulky items.

The machine operator should be permitted to sit while on the job unlessthe nature of job requires him to stand. If he is required to stand forlong hours, he should be given rest pauses so as to relax himself Thereshould be proper arrangement to eliminate job safety hazards.

Good working conditions should be provided to the operators so as tomaintain their physical and mental health. There should be satisfactorylighting and sanitary facilities. The operator should have easy access toservice facilities.

5.8 WORKSPACE AND ARCHITECTURALERGONOMICS

The design of the workspace or Architectural Ergonomics has a directimpact on the efficiency and productivity of the workers. Workspace is thespace within which one perform the tasks that add up to his job. Physicaldesign of a workspace includes working out how much space needed, andpositioning of furniture, tools, equipment and any other items needed to performthe tasks, in respect of posture, access, clearance, reach and vision of the user.

A poorly designed workspace, or a bad arrangement of furniture or equipment,may result in injuries and strains due to adoption of uncomfortable workingpostures, less ‘spare’ capacity to deal with unexpected events or emergencies,the increased possibility of errors or accidents, and inefficiency.

A ‘workspace envelope’ is a 3-dimensional space within which one carry outphysical work activities when he is at a fixed location. The limits of theenvelope are determined by ones functional arm reach which, in turn, is influencedby the direction of reach and the nature of the task being performed.

Table 3: Guidelines For The Design Of Workspaces

Encourage a frequent change in posture

Avoid forward bending of head and trunk

Avoid causing the arms to be held in a raised position

Avoid twisted and asymmetrical positions

Avoid postures that require a joint to be used for long periods of time at thelimit of its range of motion

Provide adequate back support for all seats

Where muscular force must be exerted the limbs should be in a position ofgreatest strength

Test your workspace layouts

Proper work place design helps to reduce or eliminate the risk of injury to aworker, minimizes the required number of movements or steps, and optimizesthe flow of process or materials through the space. By designing for efficientuse of space, technology and architectural features, architectural ergonomicsenhances function and usability by promoting: work flow, process flow, trafficflow, wayfinding, integration of technology, facility maintenance, andaccessibility. Guidelines for the design of workspaces is provided is Table 3.

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Architectural Ergonomics can be incorporated into an organization by:

Facilitating employees in Participative Design Processes

Design audits

Ergonomics training

Digital Human Simulation and Ergonomics

A new method for determining the workspace of human motion has beenestablished in recent years at the University of Iowa Center for ComputerAided Design (CCAD) . This method addresses the problems of interest inhuman motion analysis in terms of ergonomic design, workspace visualization,posture prediction, layout design, and placement. It brings in the exact boundaryof the workspace in closed-form which makes it possible to :

Demarcate the exact reach envelope (boundary of the workspace) of humanlimbs while taking into consideration the ranges of motion.

Visualize the exact workspace of human limbs.

Define and plan trajectories in the workspace.

Design ergonomic workplaces subject to specified cost functions.

Facilitate the design of layouts and packaging.

Verify measured data and validate human models.

Predict realistic postures, and

Optimize designs based on specified cost functions. Cost functionsrepresenting dexterity, reach ability, energy, force, and others have beendeveloped and integrated with optimization code to address ergonomicsdesign problems.

Activity A

Suppose you are designing an internet café. How can you use ergonomics.

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Activity B

Your neighbour has started a new school for kids. He is interested in applyingergonomics in the school. He has bought some colored and mobile furniture forclassrooms, so the kids can move and organize it in several ways. Could youplease help him with some ideas regarding this problem? He would also like touse ergonomics to stimulate kids imagination and to facilitate the process oflearning.

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5.9 IMPACT OF INFORMATION TECHNOLOGY ONORGANISING WORK

Over the past ten to fifteen years the emergence of Information Technology(IT) as a strategic resource has evolved new types of working and workingrelationships. It has not only affected the structure of organizations but hasmade it possible to invent new ways of working. IT has been used as afacilitator as well as an enabler of new work. As a consequence it has enabledmany companies to reduce their fixed asset costs, mainly office space andbuildings.

A few example of new forms of IT enabled work design are:

Satellite Location is an attempt to reduce the office space. Satellite Locationsare networked together to form a cohesive structure. Expensive large corporatecenters have been reduced in size and only a token ‘image’ presence is kept inprestige locations.

Hot Desking And Hoteling is another attempt to reduce office space andhence the cost of fixed assets. Employees simply plug in to office space withdocking facilities for laptop computers and other support.

Telecentres and Telecottages: Telecentres are specific regional centres thatsupport many organisations’ employees providing all the electroniccommunications infrastructure needed for effective working. Telecottages are avariation on these theme to support workers in rural or thinly populatedlocations.

Teleworking and Telecommuting: Teleworking could be described as homeworking with electronic communication support whereas telecommuting could bedescribed as the mobile office in a car, hotel or anywhere, supported by themobile phone and the laptop computer. (According to a new AT&T surveyconducted by the Economist Intelligence Unit , business will see a majorgrowth in teleworking over the next two years.17% of AT&T managers nowwork full time from home in Virtual Offices, while the operational benefit oftelework to AT&T exceeds $150 million annually).

Telematics (Field Systems): A closely related concept to telecommuting butthe equipment is more specialized usually fixed in vehicles. Used tocommunicate information between control centres and mobile workers. It isused by the utilities, service companies and the Police etc.

Computer Supported Co-Operative Working (CSCW): It is gainingappreciation as a technology that can support and enhance a truly enterprisewide working environment.

The Virtual Organisation: Many sole traders use agencies that provide avirtual presence for their clients using CIT (computer integrated telephony) andby providing office space and electronic facilities when needed. Teleworkerscan be networked together to form their own organisations, although theirclients may never see them or need to visit them. Their virtual offices may becontained in a website.

Online business and E-commerce: The success and growth of the Internethas made on-line business a cost effective and available technology for manysmall and medium sized businesses to market their products. Amazon is avirtual bookstore, now the largest bookstore in the world.

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Activity C

On the basis of your experience, explain how IT can enabled new ways ofworking at the work place.

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Activity D

Carefully go through the narrative on impact of IT on organizing work andconstruct definitions and examples of the following terms.

Hotdesking and Hotelling:

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Telecottages and Telecentres:

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CSCW:

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Virtual Organizations:

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Teleworking and Telecommuting:

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E-commerce:

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Telematics:

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5.10 SUMMARY

Work is any productive activity undertaken to generate a given product or aservice. Organizing work refers to arrangement of matters so that people canwork in concert to get the work done. There are different ways of organizingand analyzing work as recommended by different management thinkers.



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Work measurement is the study and analysis of time taken in the performanceof a specific task. Work improvement denotes the study of methods andtechniques of production for increasing efficiency. Work study covers both timestudy and motion study for work measurement and work improvement. WhileTime study is concerned with the determination of time taken by the workers inperforming each operation on the job, Motion study is concerned with themotions or movements of workers.

Ergonomics is the scientific study of individuals and their physical relationship tothe work environment. Computer Aided Design method addresses the problemsof interest in human motion analysis in terms of ergonomic design, workspacevisualization, posture prediction, layout design, and placement. The use of IThas evolved many new forms of work design in recent years.


1. What are the different approaches to organising and analysing work?

2. Explain the concept of “ergonomics.”

3. Write down the impact of IT in organising work with suitable examples.


England, G.W. and Harpaz, I.(1990), “How Working is Defined: NationalContexts and Demographic and Organizational Role Influences”, Journal OfOrganizational Behavior, 11.

Hall, Richard H.(1994), Sociology of Work, Perspectives, Analyses, andIssues, Pine Forge Press, p.5.

Singh, B.P. and Chhabra, T.N. (2002), Organization Theory and Behavior,Dhanpat Rai & Co. (P) Ltd., Delhi (2002).

http//:work organization 11.html

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UNIT 6 JOB DESIGN

When you complete this Unit, you should be familiar with:

the concept of job, career, and occupation;

meaning and purpose of an effective job design;

different factors influencing effective job design;

traditional approach to job design;

contemporary job design techniques;

how to design a suitable job;

impact of advance technology on job design; and

various impediments faced by an organization while designing andimplementing a new-fangled job design.

Unit Structure

6.1 Introduction

6.2 Meaning of Job, Occupation, and Career

6.3 Meaning of Job Design

6.4 Purpose of Job Design

6.5 Factors Influencing Effective Job Design

6.6 Approaches to Job Design

6.7 The Contemporary Approaches

6.8 Job Design and Technology

6.9 Designing a Suitable Job

6.10 Impact of High Technology on Job Design

6.11 Impediments In Job Design

6.12 Summary



6.1 INTRODUCTION

The structure of an organization is characterised by the task and authorityrelationships. Jobs are the foundation of this task authority structure .The jobdesign process lay emphasis on the design or redesign of jobs to incorporatefactors which lead to the achievement of both employee and organizationalobjectives. Ineffectually designed jobs often bring about boredom andconsequently increased turnover, reduced motivation, low levels of jobsatisfaction, diminished productivity, and an increase in organizational costs.Many of these negative consequences could be avoided or minimized througheffective job design or proper detection of major job components.

6.2 MEANING OF JOB, OCCUPATION AND CAREER

One of the most frequent questions people often ask one another when theyfirst meet is “What are you doing?” Instead of saying, “I teach in a college” or“I treat patients”, a person often says, “I am a teacher” or “I am a doctor”like this. This exhibits the occupation of a person. Occupation provides aperson his identity. It talks a great deal about ones social position. The idea


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of occupation also implies a set of social relationships (Hughes, 1945). Forinstance, the occupation as a professor implies that students , other professors,and publishers’ representatives are part of the set of their social relationships.Finally, occupations are by and large linked to the work of adults (Roe, 1956).The work carried out by teenagers is not often considered as an occupation,because it does not frame a major part of their identities as individuals.

Taking into account all of these considerations, occupation is defined as “thesocial role performed by adult members of society that directly and/orindirectly yields social and financial consequences and that constitutes amajor focus in the life of an adult” (Hall, 1975).

A job is a person’s occupation at one point in time. A career is the unfoldingsequences of jobs that a person has over the life course.

6.3 MEANING OF JOB DESIGN

The term ‘job design’ refers to the way the tasks are combined to form acomplete job. It can be defined as building the specifications of theposition, contents, method and relationships of the job so as to meet withvarious technological and organizational requirements as well as meet thepersonal needs job holders. According to Bowditch and Buono, job designrefers to “ any set of activities that involve the alteration of specific jobs orinterdependent systems of jobs with the intent of improving the quality ofemployee job experience and their on- the-job productivity.”

While designing a job, the following points are to be borne in mind:

Job redesign is an essential allegiance to quality improvement of theindividual, and the organization.

It should be performed from either the bottom up, or top down, dependingupon the hierarchy and responsibility of the position and its relationshipswithin the organization.

Job design is a process which integrates work content (tasks, functions,relationships), the reward (extrinsic and intrinsic), and the qualificationsrequired (skills, knowledge, abilities) for each job in a way that meet theneeds of employees and the organization.

Some jobs are routine because the tasks are consistent and repetitive; otherare non-routine. Some require a large number of varied and diverse skills;other are narrow in scope. Some jobs constrict employees by requiringthem to follow very clear-cut procedures; others allow employeesconsiderable autonomy in how they do their work. Some jobs are mosteffectively accomplished by groups of employees working as a team;whereas other jobs are best done by individuals acting essentiallyindependently. Thus jobs differ in the way their tasks are combined, anddifferent combinations produce a variety of job designs in the organization.

6.4 PURPOSE OF JOB DESIGN

There are three objectives of jobs design which are as follows:

to meet the organizational requirements such as higher productivity,operational efficiency, quality of product/service, etc.;

to satisfy the needs of the individual employees like interest, challenge,achievement or accomplishment, etc.; and

to integrate the needs of the individual with the organizational requirements.

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6.5 FACTORS INFLUENCING EFFECTIVE JOBDESIGN

While designing a job, the following factors are taken into consideration.

i. The volume of work - it will determine by and large the number ofjobs.

ii. The complexity of the work - to be carried out, both in terms of itsvariety or breadth and its technical difficulty or depth.

iii. The work processes involved -It might be desirable for one person to beinvolved in an entire process, or the work flows may be such that thework process has to be divide between several different people.

iv. The nature of the people currently employed in the organization-Theextent to which jobs can be redesigned depend largely on the kind ofpeople employed

v. The sequence of flows in the process- the succession of events andtheir timings affect how the work can be organized. Where activitiesare carried out over a longer period, this is likely to be the cause ofgreater complexity.

vi. The timescales - where immediate responses are required, specific jobsmay have to be earmarked to provide such responses. Work requiringlonger planning horizons is likely to be more complex and needstherefore to be done at a higher level.

vii. The geographical scattering of the organization’s activities .

viii. The involvement of other parts of the organization in the overallprocess- there may be a need for extensive communication andcoordination and the design of jobs should take account of the way thisis to be achieved.

ix. The effect of information technology (Cushway and Lodge, 2001).

6.6 APPROACHES TO JOB DESIGN

Basically there are two approaches to job designs which are based upon twodifferent postulations about people. The first approach entails fitting people tojobs. It is based upon the assumption that people can be adapted to any worksituation. Thus employee attitudes towards the job are ignored and jobs aredesigned to produce maximum economic and technological efficiency. Thisapproach uses the principles of scientific management and work simplification.In contrast , the second approach entails fitting jobs to people. Is basedupon the assumption that people are underutilized at the work and they desiremore challenges and responsibility. Techniques such as job rotation, jobenlargement etc. are used while designing jobs according to the secondalternative.

The First Approach

Developed by F.W. Taylor, scientific management relied on research andexperimentation to determine the most efficient way to perform jobs. Jobs arehighly standardised and specialised. Taylor advocates vertical job specializationso that detailed procedures and work practices are developed by engineers ,enforced by supervisors, and executed by employees.

He also applied horizontal job specialization such as narrowing the supervisor’srole to such a degree that one person manages operational efficiency, anothermanages inspection, and another is disciplinarian.

Job Design


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Advantages:

Job specialization increases:

Work efficiency; and

Employees productivity.

Disadvantages:

It increases work efficiency, but it doesn’t necessarily improve jobperformance as it ignores the effects of job content on employees.

It costs more in terms of higher turnover, absenteeism, and mental healthproblems.

Employees are concerned only with a small part of the process, so theycan’t be identified with the customer’s needs.

It ignores the motivational potential of jobs.

It doesn’t apply to professional “ knowledge workers”.

The Second Approach

During and immediately after the second world war American writers,particularly, were questioning the association between job and organizationdesign and productivity. It was being understood that problems occur in theselection of personnel if only those able to tolerate and work well in simple,highly repetitive jobs are to be recruited. As early as 1950 in the USA, jobrotation and job enlargement were being both encouraged and tasted as meansfor overcoming boredom at work with all its associated problems. In an earlycase example IBM introduced changes to machine operators’ jobs to includemachine setting and inspection. Besides they introduced other wide-rangingchanges in both the production system and the role of foremen and supervisors.The concepts of both job rotation and enlargement do not have their basis inany psychological theory. However, the next generation of attempts to redesignjobs emerging from the USA developed from the researches of FrederickHerzberg. During the 1950’s and 1960’s, Herzberg developed his ‘TwoFactor’ theory of motivation.

Figure 1: Various Techniques of Job Design

Source: Helliriegel, Slocum, and Woodman (2001).

Impa

ct

Low

High

Medium

Complexity

Low Medium High

Job rotation

Job engineering

Job enlargement

Job enrichment

Sociotechnicalsystem

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Thus five most commonly used approaches to job design in the second categoryare shown in Figure 1. The vertical axis indicates the impact dimension, whichmeans the degree to which a job design approach is linked to factors beyondthe immediate job, such as reward systems, performance appraisal methods,leadership practices of managers, customer needs, organization structure,physical working conditions, and team composition and norms-as well as itslikely effect on changes in effectiveness and quality. The Complexitydimension, on the horizontal axis, is the degree to which a job design approachrequires (1) changes in many factors, (2) the involvement of individuals withdiverse competencies at various organizational levels; and (3) a high level ofdecision-making competency of successful implementation.

I. Job Rotation

Job design involves periodic assignment of an employee to completely differentsets of job activities. As traditionally used, job rotation is low in both impact andcomplexity because it typically moves employees from one routine job toanother.

Advantages:

It is an effective way to develop multiple skills in employees, which benefitsthe organization while creating greater job interest and career options for theemployee.

Job rotation may be of considerable benefit if it is part of a larger redesigneffort and/or it is used as a training and development approach to developvarious employee competencies and prepare employees for advancement.

At times, it may be used to control the problem of repetitive stress injuriesby moving people among jobs that require different physical movements.

II. Job Engineering

Frederick W. Taylor established the basis for modern industrial engineering latein the nineteenth century. Job engineering focuses on the tasks to beperformed, methods to be used, workflows among employees, layout of theworkplace, performance standards, and interdependencies between people andmachines. Job design factors are to be examined by means of time-and-motionstudies, determining the time required to do each task and the movementsneeded to perform it efficiently.

A keystone of job engineering is specialisation of labor with the goal ofachieving greater efficiency. High levels of specialisation are intended to :

allow employees to learn a task rapidly;

permit short work cycles so that performance can be almost automatic andinvolve little or no mental effort;

make hiring easier because low-skilled people can be easily trained and paidrelatively low wages; and

reduce the need for supervision, owing to simplified jobs and standardization.

Advantages:

It is an imperative job design approach because the resulting cost savingscan be measured immediately and easily.

It is concerned with appropriate levels of automation, that is, looking forways to replace workers with machines to perform the most physicallydemanding and repetitive tasks.

The job engineering approach often continues to be successfully used,especially when it is combined with a concern for the social context in

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which the jobs are performed. One expert who advocates the jobengineering approach while involving employees in decisions about their jobsprescribes the following “golden rules of work design”.

Ensure that the end product/output of the work is clearly defined,unambiguous, and fully understood by the employees.

Ensure that the steps/tasks to be performed to achieve the required andproduct/output are clearly defined in the appropriate sequence and arefully understood by the employees.

Ensure that the employees know and understand where theirresponsibility starts and finished in the work process.

Ensure that the tools, facilities, and information needed to performthe work are readily available to and fully understood by theemployees.

Ensure that there is a process whereby the employees can suggestpossible improvements in the work design and exercise initiative inimplementing them.

Ensure that the employees are involved in the work design process(Bentley,1999).

III. Job Enlargement

Job enlargement combines into one job with two or more tasks which are tobe performed. Sometimes it is called “ horizontal loading” as all tasks involvethe same level of responsibility .The job enlargement approach often haspositive effects on employee effectiveness. However, some employees viewjob enlargement as just adding more routine, repetitive tasks to their alreadyboring job. Other employees regard it as eliminating their ability to performtheir jobs almost automatically.

Advantages:

Job enlargement and job rotation approaches are useful in many work settings.One of their biggest advantages is that :

They offer a form of training.

They allow workers to learn more than one task, thus increasing their valueto the employer.

As they allow workers to perform many tasks, they can be used moreflexibly as circumstances require.

IV. Job Enrichment

Frederick Herzberg, the advocate of two-factor theory, cautioned that jobsdesigned according to rules of simplification, enlargement, and rotation can’t beexpected to be highly motivational for the workers. He instead suggested aclear and distinct job design alternative called “job enrichment”.

Job enrichment seeks to add profundity to a job by giving workers morecontrol, responsibility, and freedom of choice over how their job is performed. Itoccurs when the work itself is more challenging, when achievement isencouraged, when there is prospect for growth, and when responsibility,feedback, and recognition are provided. Nonetheless, employees are the finaljudges of what enriches their jobs.

Herzberg developed the following set of principles for the enrichment of jobs:

removing some controls while retaining accountability;

increasing personal accountability for work;

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assigning each worker a complete unit work with a clear start and endpoint;

granting additional authority and freedom to workers;

making periodic reports directly available to workers rather than tosupervisors only;

the introduction for new and more difficult tasks into the job;

encouraging the development of expertise by assigning individuals tospecialized tasks.

Herzberg’s Checklist

Herzberg’s other major contribution to the development of ideas in the area ofjob design was his checklist for implementation. This is a prescription for thoseseeking accomplishment in the enrichment of jobs:

select those jobs where technical changes are possible without major expense;

job satisfaction is low;

performance improvement is likely with increases in motivation;

hygiene is expensive;

examine the jobs selected with the conviction that changes can beintroduced;

‘green light’ or ‘brainstorm’ a list of possible changes;

screen the list (red lighting) for hygiene suggestions and retain only ideasclassed as motivators;

remove the generalities from the list retaining only specific motivators;

avoid employee involvement in the design process.

set up a controlled experiment to measure the effects of the changes;

anticipate an early decline in performance as workers get use to their newjobs.

Difference Between Job Enlargement and Job Enrichment

The difference between enlargement and enrichment is illustrated in Figure 2 .The Figure reveals that job enrichment focuses on satisfying higher-order needs,whereas job enlargement concentrates on adding additional tasks to the

Figure 2 : Difference Between Job Enlargement and Job Enrichment

Source: Newstrom and Davis, 2002.

Jobenrichment

Job enrichmentand enlargement

Routinejob

Job enlargement

Higher-Order

Lower-order

Acc

ent

on n

eed

s(F

ocus

on

dept

h)

Number of tasks(Focus on breadth)

Few Many

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30

worker’s job for greater variety.Adopting a new technology typically requireschanges in the way jobs are designed. Often the way the task is redefined fitspeople to the demands of the technology to maximize the technology’soperation. But this often fails to maximise total productivity, because it ignoresthe human part of the equation. The social relationships and human aspects ofthe task may suffer, lowering overall productivity The sociotechnical systemsapproach to work redesign specifically addresses this problem.

V. Socio-technical System Approach

At the same time that job redesign techniques were being developed andimplemented in the U.S.A. progress was being made, particularly in Europe andScandinavia, on the development of the socio-technical systems approach. Theterm socio-technical systems is largely associated with experiments thatemerged under the auspices of the Tavistock Institute in Great Britain orhave stemmed from the Tavistock approach. The focal point is the workinggroup and the aim is to develop a match between the needs of the group andthe organization in relation to the technology.

Under the socio-technical system approach, jobs are designed by taking a“holistic” or “systems” view of the entire job situation, including its physical andsocial environment. The socio-technical approach is situational because fewjobs involve identical technical requirements and social surroundings. Specifically,the socio-technical approach requires that the job designer should cautiously beconcerned about the role of employee in the socio-technical system, the natureof the tasks performed, and the autonomy of the work-group. The essentialelements of the socio-technical system approach are as under:

A job need to be reasonably demanding for the individual in terms otherthan sheer endurance and yet provide some variety (not necessarily novelty).

Employees need to be able to learn on the job and to go on learning.

Employees need some minimum area of decision-making that they can calltheir own.

Employees need some minimal degree of social support and recognition atthe workplace.

Employees need to be able to relate what they do and what they produce totheir social life.

6.7 THE CONTEMPORARY APPROACHES

I. Job Characteristics Approach

The job characteristics enrichment model involves increasing the amounts ofskill variety, task identity, task significance, autonomy, and feedback in a job.The model proposes that the levels of these job characteristics affect threecritical psychological states (1) experienced meaningfulness of the tasksperformed (2) experienced personal responsibility for task outcomes, and (3)knowledge of the results of task performance. If all three psychological statesare positive, a reinforcing cycle of strong work motivation based on self-generated towards is activated. A job without meaningfulness, responsibility,and feedback is incomplete and doesn’t strongly motivate an employee. Themodel given in Figure 3 exhibits the core dimensions of the job characteristicsenrichment model and their relationships. The five core job dimensions are:

Skill Variety — the degree to which a job requires a variety of differentactivities in carrying out the work and which use different skills and talents ofthe person.

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Task Identity — the degree to which the job requires completion of a “whole”and identifiable piece of work. Doing a job from beginning to end with a visibleoutcome.

Task Significance — the degree to which the job has a substantial impact onthe lives or work of other people.

Autonomy — the degree to which the job provides substantial freedom,independence, and discretion to the individual in scheduling the work and indetermining the procedures to be used in carrying it out.

Feedback — the degree to which carrying out the work activities required bythe job results in the individual’s obtaining direct and clear information about theeffectiveness of his or her performance.

The first three job dimensions contribute to a job’s meaningfulness. The degreeof autonomy provides feeling of personal responsibility for work outcomes.The amount of feedback provides knowledge of results. These three aspects,according to Hackman, are critical psychological states that affect a person’smotivation and satisfaction on the job.

Implications for Job Design

From the above it should be clear that as far as possible jobs should:

provide variety in terms of the kind of work carried out, its pace, locationetc;

allow people to get direct feedback on results;

allow scope for development by enabling the job to become bigger as theperson becomes more skilled and knowledge;

have clear objectives and outputs;

Figure 3: The Job Characteristics Model

Source: Adapted from J. Richard Hackman and Greg R. Oldham ( 1975), “ Developmentof the Job Diagnostic Survey”, Journal of Applied Psychology, Vol.60, p.161.

CoreJobCharacteristics

CriticalPsychologicalStates

IndividualWorkOutcomes

Skill varietyTask identityTask significance

Autonomy

Feedback

Experiencedmeaningfulness ofthe work

Experiencedresponsibility foroutcomes for the work

Knowledge of actualresult of the work

High intrinsicwork motivation

High-qualitywork performance

High satisfactionwith the work

Low absenteeismand turnover

ModeratorsGrowth-need strength

Knowledge and skill

“Context” satisfaction

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32

have clear reporting liens;

give people some control over output and pace;

give people the opportunity to comment and suggest changes to the workprocess;

be supported by the appropriate level of resources and effective process.

Diagnostic Use of the Model

A Job Diagnosis Survey has been developed using the model above. The typesof questions included in it are:

Are motivation and satisfaction really a problem? This can bedocumented through turnover, absenteeism, problems in work performance

Is the job low in motivating potential? If scores on measurements of thefive job dimensions are low, it suggests the motivating potential may be lowor absent.

What specific aspects of the job are causing the difficulty? To target thepoints where change in job design may be necessary

How ready are the employees for change? Some employees may nothave strong needs for growth; if so, introduce change with caution

What special problems and opportunities are present in the existingwork system? If job dissatisfaction lies outside the job itself, e.g., withhygiene factors of pay, job security, co-workers, work condition, then thesemay need to be addressed first.

Social Information Processing

The job characteristics enrichment model is based on the assumption thatemployees can respond reasonably, accurately, and objectively when askedabout the characteristics of their jobs. However, the fundamental to jobenrichment lies in how employees use the social cues provided by their peersand others to arrive at their own perception of their jobs. This activity iscalled social information processing .

Social information may be provided by people directly associated with the job(e.g. ,coworkers, managers, and customers) and by people not employed by theorganization (e.g family members and friends). It basically covers threeelements. First, peers may suggest which of the job characteristics really countto them . Second, they may offer their personal model regarding the relativeweighting of each core dimension. Third, peers may provide direct or indirectclues about their own judgments of the dimensions..

There are certain aspects of a job which aren’t likely to be influenced bycues from others . But most of an employee’s perceptions of job characteristicsare subject to the influence of others with whom the employee has contact.Based on this viewpoint, the social information processing model states that theindividual’s social context provides:

cues as to which dimensions might be used to characterize the workenvironment;

information concerning how the individual should weigh the variousdimensions-whether autonomy is more or less important than skill variety orwhether pay is more or less important than social usefulness or worth;

cues concerning how others have come to evaluate the work environmenton each of the selected dimensions; and

directed positive or negative evaluation of the work setting, leaving theindividual to construct a rationale to make sense of the generally sharedaffective reactions (Thomas and Griffin, 1989).

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The social Information Processing view has the following implications for jobdesign.

Participation in job design process may produce feelings of high satisfactionindependent of any job design changes.

Using the Job Diagnostic Survey, or any other questionnaire, before changingthe design of jobs may sensitize people to certain job characteristics theyhad not noticed before.

Perceptions of job characteristics can be manipulated by the socialinformation made available to employees by managers and coworkers in theorganization.

Activity A

Consider your academic “job” as a student. Rate it on each of the five coredimensions according to how much of each is presently in it (1 = low amount;10 = high amount). Compute a motivating potential score for yourself by usingthe MPS formula. What does this information tell you?

Job Dimension Your Rating

Skill variety __________________

Task identity __________________

Task significance __________________

Autonomy __________________

Feedback __________________

MPS __________________

The MPS is calculated as follows:

MPS = Skill variety + Task identity + Task significance X Autonomy X Feedback 3

Low score indicates that a student does not experience high internal motivationfrom his academics. High score indicates that the student experiences highinternal motivation from his academics .

Activity B

On the basis of the discussion on job characteristics model as well as socialinformation processing, explicate the level to which the content taskcharacteristics and information cues from your colleagues help you on your jobperformance.

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Activity C

Job Characteristics Inventory

DirectionsThe following list contains statements that could be use to describe ajob. Please indicate the extent to which you agree or disagree witheach statement as a description of a job you currently hold or haveheld, by writing the appropriate number next to the statement. Try tobe as objective as you can in answering.

1 2 3 4 5

Strongly Disagree Uncertain Agree Strongly AgreeDisagree

This job…————1. provides much variety.————2. permits me to be left on my own to do my work.————3. is arranged so that I often have the opportunity to see jobs or

projects through to completion.————4. provides feedback on how well I am doing as I am working————5. is relatively significant in my organization.————6. gives me considerable opportunity for independence and freedom in

how I do the work.————7. provides different responsibilities.————8. enables me to find out how well I am doing.————9. is important in the broader scheme of things.————10. provides an opportunity for independent thought and action.————11. provides me with considerable variety of work.————12. is arranged so that I have the opportunity to complete that work I

start.————13. provides me with the feeling that I know whether I am performing well

or poorly.————14. is arranged so that I have the chance to do a job from the beginning

to the end (i.e., a chance to do the whole job.)————15. is one where a lot of other people can be affected by how well the

work gets done.

ScoringFor each of the five scales, compute a score by summing the answers to thedesignated questions.

Score

Skill variety: Sum the points for items 1,7, and 11. __________

Task identity: Sum the points for items 3,12, and 14, __________

Task significance: Sum the points for items 5,9, and 15, __________

Autonomy: Sum the points for items 2,6, and 10, __________

Job feedback: Sum the points for items 4,8, and 13, __________

Total Score __________

Summary interpretationA total score of 60-75 suggests that the core job characteristics contribute to anoverall positive psychological state for you and, in turn, leads to desirable personaland work outcomes. A total score of 15-30 suggests the opposite.

Source: Adapted from Sims H.P., Jr., Szilagyi, A.D., and Keller, R.T. The Measurement ofjob characteristics. Academy of Management Journal, 1976,19,195-212.

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II. Team Approach: Designing Job for Teams

Individual employees perform operating tasks, but the vast majority of themwork in regular small groups. Where their work is interdependent, they act asa task team and seek to develop a cooperative state called teamwork. A taskteam is a cooperative small group in regular contact that is engaged incoordinated action. The frequency of team members’ interaction and theteam’s ongoing existence make a task team clearly different from either ashort-term decision-making group (committee) or a project team in a matrixstructure.

At least four ingredients contribute to the development of teamwork: asupportive environment, skills matched to role requirements, super ordinate goal,and team rewards.

Classical organization structures did not rely heavily on teams, despite thatdivision of work into functional units and multiple levels. But in recent years,attention is focused on the design of the work group and its activities ratherthan the design of each individual job. In designing the work group activityone of the basic principles is that of ‘minimum critical specification’ of the taskand the ‘minimum critical specification of tasks to job. Specification ofobjectives remains essential but the means for obtaining them in many instancescan be decided by the task performer. This approach should result in a greaterdegree of flexibility for individual job holders within the work system and allowfor their personal development through increased involvement in decision makingrelation to the control and regulation of the work system.Suggested guiding principles for the design of work group activity include;

Primary work groups should have between four and twenty members.

The primary work group should have a designated leader who is accountablefor the group’s performance.

The group should be assigned tasks which make up a complete unit of work.

Wherever possible the group members should have responsibility for planningtheir own work.

Group members should then be involved in evaluating their performance inrelation to the plans.

Activity D

Discuss the factors that affect a person’s perception of the objectivecharacteristics of a job. What implications do you see for a job design strategy?

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III. Goal Setting

Goals and objectives, in the form of desired performance results, are importantaspects of any job design.

Goal Setting Theory

Goal setting is the process of developing, negotiating, and formalising thespecific outcome targets or task objectives that a person is responsible foraccomplishing. Over a number of years, Edwin Locke and his associates have

Job Design


36

developed a comprehensive frame work that links goals to performance in thefollowing ways.

Difficult goals are more likely to lead to higher performance than are lessdifficult ones. The goals must be challenging but achievable

Specific goals are more likely to lead to higher performance than are vagueor general ones, or the absence of any goals at all.

Task feedback or knowledge of results is likely to motivate people towardshigher performance. Knowing results seems to encourage the setting ofhigher goals for the future. Feedback is also a reward or indictor ofperformance accomplishment, and it is a source of information that can besued for work adjustments to better performance.

Goals are most likely to lead to higher performance when people have andare confident in the required task abilities. An individual must have thenecessary abilities and to feel confident in them as well. A lack ofconfidence, or inadequate self-efficacy, can create performance problems foreven a very capable person.

Goals are most likely to motivate when they are accepted and the individualis committed to them. A way of building such acceptance and commitmentis by allowing the individual to participate in the goal-setting process. Thishelps to create a sense of “ownership” of the goals.

Goal Setting and MBO

When we speak of goal setting and its potential to influence individualperformance at work, the concept of management by objectives (MBO)immediately comes to mind. This concept was given by Peter F. Drucker .General Electrics was the first company to adopt MBO and put it into practicewith Drucker’s help as a consultant.

MBO is essentially a process of joint goal setting. It is a systematic andorganized approach that allows management to focus on achievable goals andto attain the best possible results from available resources. The principle behindMBO is to make sure that everybody within the organization has a clearunderstanding of the aims, or objectives of that organization, as well asawareness of their own roles and responsibilities in achieving those aims. Thedetails of MBO , that is, its objectives , types, advantages , disadvantages etc.are presented in the Figure 4.

Figure 4: Details of the MBO Process

Types of Objectives

Routine objectives The objectives must be:Innovation objectives focused on a result, not an activityImprovement objectives consistent

specificmeasurablerelated to timeattainable

MBO Strategy

All individuals within an organization are assigned a special set ofobjectives that they try to reach during a normal operating period. Theseobjectives are mutually set and agreed upon by individuals and theirmanagers.

Performance reviews are conducted periodically to determine how closeindividuals are to attaining their objectives.

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Rewards are given to individuals on the basis of how close they cometo reaching their goals.

MBO Stages

Define objectives at board level

Analyse management tasks and devise formal job specifications, whichallocate responsibilities and decisions to individual managers

Set performance standards

Agree and set specific objectives

Align individual targets with corporate objectives

Establish a management information system to monitor achievementsagainst objectives

MBO : Key Advantages and Disadvantages

Advantages

MBO programs continually emphasise what should be done in anorganization to achieve organizational goals

MBO process secures employee commitment to attaining organizationalgoals

Disadvantages

The development of objectives can be time consuming, leaving bothmanagers and employees less time in which to do their actual workThe elaborate written goals, careful communication of goals, and detailedperformance evaluation required in an MBO program increase thevolume of paperwork in an organization.

6.8 JOB DESIGN AND TECHNOLOGY

Technology refers to the techniques, tools, methods, procedures, and machinethat are used to transform objects (materials, information, and people).Employees use technology to acquire inputs, transform inputs into outputs, andprovide goods or services to clients and customers. Here, the discussionfocuses on the concepts of workflow uncertainty, task uncertainty, and taskinterdependence as they relate to job design.

Role Of Workflow And Task Uncertainty

Workflow uncertainty is the degree of knowledge that an employee has aboutwhen inputs will be received and require processing. When there is littleworkflow uncertainty, an employee may have little discretion (autonomy) todecide which, when, or where tasks will be performed. For the most part, theproduction workers at an automobile assembly plant experience a lowdegree of workflow uncertainty. If fact, the application of the job engineeringapproach in automobile assembly plants is intended to minimize workflowuncertainty.

Task uncertainty is the degree of knowledge that an employee has about howto perform the job and when it needs to be done. When there is little taskuncertainty, an employee knows how to produce the desired results. Throughextensive training and the standardization of jobs, management typically attemptsto minimize task uncertainty in assembly plants.

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Combined Effects of Workflow and Task Uncertainty

Figure 5 shows the main combinations of workflow uncertainty and taskuncertainty. Each of the four cells contains example of jobs that fall primarilyinto each category. However, be careful not to stereotype particular jobs bythinking of them only in terms of a single position of the grid. Job redesignoften modifies them and changes their levels of workflow and task uncertainty.Managerial jobs-including some top-management jobs-could range from theextreme upper right corner in cell 3 to closer to the center of the grid. Also,some jobs don’t fit neatly into single cell. For example, an auditor’s job at anaccounting firm might generally be plotted some where in the middle of thegrid.

The socio technical system and job enrichment approaches generally increasesworkflow uncertainty and/or task uncertainty. However, the assembly-line jobshown in cell 1 could be enriched but still be generally classified as a cell-1type of job. Some people who occupy cell-3 types of jobs could experiencestress from too much workflow and task uncertainty.

Role of Task Interdependence

Task Interdependence is the degree to which decision making andcooperation between two or more employees is necessary for them to performtheir jobs. The construction of the structural steel framework of a high-risebuilding involves a high degree of task interdependence between the craneoperator, ground crew, and assembly crew in moving and joining the steelgirders and beams.

The three basic types of interdependent task relations are pooled, sequential,and reciprocal. Pooled interdependence is the ability of an employee (orteam) to act independently of others in completing a task or tasks.

Sequential Interdependence is the need for an employee (or team) tocomplete certain tasks before other employees (or teams) can perform theirtasks. In other words, the outputs from some employees (teams) become the

Figure 5 : Combinations Of Workflow Uncertainty And Task Uncertainty

Source: Adapted from Slocum, J.W.., Jr .and Sims , H.P ., Jr. “Typology For IntegratingTechnology. Organization, and Job Design “, Human Relations, 1980,33,196;Susman, G. I. Autonomy at Work- A Socio Technical Analysis of ParticipativeManagement , New York: Praeger,1980,132.

2Brain SurgeonDesign EngineerHigh School Teacher

Research Scientist 3Top ManagerEmergency Ward Physician

Assembly Line WorkerCustodianFile Clerk1

Bank TellerToll Booth CollectorBartender 4

Low

Tas

k U

nce

rtai

nty

Hig

h

Low Workflow Uncertainty High

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inputs for other employees (teams). The sequence of interdependencies can bea long chain in some mass-production activities.

Reciprocal Interdependence means that the outputs from an individual (orteam) become the inputs for others and vice versa. Reciprocalinterdependencies are common in everyday life. Examples include (1) a family,(2) a basketball team, (3)a surgical team, (4) a decision-making team, and (5) aclass project assigned to a small team of students. Reciprocal interdependenceusually requires a high degree of collaboration, communication, and teamdecision making.

Interrelationships among Job Design and Technology Concepts

Task interdependence, working uncertainty, and task uncertainty must all beconsidered in job design. An increase in the use of pooled interdependencedecreases the amount of required coordination among jobs. Less coordinationoften means less sequential and/or workflow uncertainty of employees. Newinformation technologies often change task interdependence, workflowuncertainty, and task uncertainty-either reducing or increasing them for theemployee. The specific impacts will be influenced by how employees areexpected to use the technology and whether higher management uses thetechnology to empower employees or more closely monitor and control them.

6.9 DESIGNING A SUITABLE JOB

In the above sections various alternative approaches to designing jobs areexamined. The limitations as well as strength of these approaches areidentified on the basis of which a list of some attributes of jobs whichcontribute to the motivation of employees and can be translated into principlesfor the design of jobs is prepared . The list is given below:

an optimum level of variety;

an appropriate degree of repetitiveness;

an appropriate degree of attention with accompanying mental absorption;

an optimum level of responsibility for decisions and degree of discretionpresent;

employee’s control over their own job;

the presence of goals and achievement feedback;

perceived contribution to a socially useful product or service;

opportunities for developing friendships;

where dependent upon others for task achievement some influence over theway the work is carried out;

perceived skill utilization.

6.10 IMPACT OF HIGH TECHNOLOGY ON JOBDESIGN

In recent years, as computers and high technology become more and moreingrained in the modern workplace, the basic problem arises how tosuccessfully fit technological advancements into job designs.

Automation

Highly simplified jobs often cause problems because they offer little intrinsicmotivation for the worker. The tasks have been defined so narrowly that theylack challenge and cause boredom when someone repeats them over and over

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again. Given the high technology available today, one way to deal with thisproblem is by complete automation-allowing a machine to do the workpreviously accomplished through human effort. This approach increasinglyinvolves the use of robots, which are becoming more and more useful andreliable.

Flexible Manufacturing

Flexible manufacturing cells, teams of workers using special technology, exploitadaptive and integrated job designs to shift work among alternative products.This approach is gradually more widespread. Under this system, a cellularmanufacturing system hold a number of automated production machines thatcut, shape, drill, and fasten together various metal components. Each machineis attached to the others by convertible conveyor grids that allow quick changefrom manufacturing one product to another-such as from air-conditionercompressors to engine crankshafts.

Workers in the cells perform very few routine assembly-line tasks. As analternative, they dedicate most time to make certain that operations are carriedout correctly and to handling changeovers from one product configuration toanother. Above and beyond, to keep production flowing slickly, each workerneeds to improve expertise across a wide range of tasks. In this way flexiblemanufacturing cells comprise jobs that are often enriched on the corecharacteristics.

Electronic Offices

Electronic office technology was the key when U.S. Healthcare, a large,private-practice based health maintenance organization (HMO), becameinterested in improving the quality of its health-care services. The companyinstalled large electronic bulletin boards that monitored progress toward a rangeof performance goals. It also installed an electronic main (e-main) system,used robots to dispense paper mail, and installed a computerized telephoneanswering machine. Fundamentally, the company tried to automate as manytasks as possible to free employees for more challenging work.

Continuing development in these electronic offices present many new jobopportunities for those with the necessary abilities and interests, but they canbe stressful and difficult for those who lack the necessary education or skills.Clearly, today’s high technologies must be carefully integrated with the humanfactor, and continuing education and training are still needed to equip people todeal with emerging workplace technologies.

Work-Flow and Process Reengineering

One of the most recent approaches for upgrading job designs and organizationalperformance is based on the concept of process reengineering. Processengineering means the analysis, reshuffling, and reconfiguration of actions andtasks required to reach a work goal. This approach methodically breaks workprocesses down into their specific components and subtasks, analyses each forrelevance and simplicity, and then does everything possible to reconfigure theprocess to eliminate wasted time, effort, and resources.

Job redesign through process reengineering focus on every step in the process,from the seeking out for items and vendors, to the obtaining of bids, to thecompletion of necessary forms, to the securing of required signatures andapprovals, to the actual placing of the order, and so on to the point at whichthe new computer actually arrives, is checked in, is placed into an equipmentinventory, and is finally delivered to the workplace.

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Activity E

Use of various forms of electronic communication is continuing to change workand the work process. Do you think complete automation can replace thehuman factors at work place?

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6.11 IMPEDIMENTS IN JOB DESIGN

Inspite of the possible benefits, job design is not easy to implement. The majordifficulties are as follows:

i. Complexity in measuring the core job characteristics accurately.Objectively measuring job content is very costly and tough. Therefore themost prevalent tool for measuring job content is to ask employees toportray their perceived job characteristics However it is supposed thatthese perceptions are very often biased. Until an accurate and costeffective way to measure job content is found, job design experts wouldnot be able to point at which jobs entail changing and how well job designstrategies are working.

ii. The contemporary knowledge about job design is restricted by its focus onindividual jobs. Especially, the literature tends to overlook job designcharacteristics that apply to team settings. Furthermore, many worksettings require team-based job redesign because the technology is fixed orthe work is too complicated for one person to finish alone.

iii. Job design interventions over and over again face resistance to change.Some supervisors don’t like job redesign interventions because they changetheir roles and may threaten job security. Trade union leaders have beenhostile antagonists of job specialization and scientific management, yet theycomplain that job enrichment programs are management ploys to get morework out of employees for less money. Unskilled employees may lack theconfidence or growth need strength to learn more challenging tasks.Skilled employees are known to resist job redesign because they believethe intervention will undercut their power base and compel them toperform lower-status work.

6.12 SUMMARY

In this unit we have looked at traditional as well as more recent approaches tothe design of jobs. The challenge facing managers at the present and in thefuture, is that of employing the new technology with all its prospects in wayswhich not only meet the organization’s needs but also the expectations anddesires of employees. In order to achieve this more effectively, there is theneed to further develop these approaches to job and work organization designwhich facilitate these broader criteria being incorporated into the design processas well as the tools with which to achieve the task. The job facing responsibleorganizations would therefore be to attain a balance between the needs of theorganizations to achieve it’s goals and the creation of a working environmentwhich results in the job satisfaction for employees.

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1. Discuss various approaches to job design.

2. Describe the contemporary job design techniques.

3. What is the impact of high technology on job design?


Bentley, T. Computer talk: Workflow systems, Management Accounting,London, January 1999, 54-55.

Bowditch, J.L. and Buono, A.F. A Premier on Organizational Behaviour, NewYork: John Wiley and Sons, 1985. p.210.

Drucker, Peter F . The Practice of Management, New York ,Harper &Row,1954.

Helliriegel, Don, Slocum, John W . and Woodman , Richard W, OrganizationalBehaviour, South- Western College Publishing , 2001.

J. Richard Hackman and Greg R. Oldham, “ Development of the JobDiagnostic Survey”, Journal of Applied Psychology, Vol.60, p.161, 1975

J. Richard Hackman, “Designing Work for Individuals and for Groups,” pp. 94-103 of Developing Managerial Skills in Organizational Behaviour, 2nd ed.by LA Mainiero and CL Tr omley, Prentice-Hall, 1994.

Mc Shane, Steven L. and VON GLINOW, Mary Ann, OrganizationalBehaviour, TATA McGraw- Hill Publishing Company Limited, New Delhi,2002.

Newstrom, John W. and Davis, Keith , Organizational behavior, humanbehaviour at work, TATA McGraw- Hill Publishing Company Limited, NewDelhi, 2002.

Robert Heller and Tim Hindle, Essential Manager’s Manual, 1998.

Samuel C. Certo , Modern Management, Ninth Edition, 2002.

Schermerhorn, Jr. John R. Hunt, James G. and Osborn, Richard N., BasicOrganizational Behaviour, John Wiley & Sons .Inc. , USA, 1998

Thomas, J.G., and Griffin, R.W. The power of social information in the workplace, Organizational Dynamics, Winter 1989, pp. 63-75.

Hall, Richard H. Sociology of Work, Perspectives, Analyses and Issues, FineForge Press.

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UNIT 7 EMERGING ISSUES OF WORKORGANISATION AND QUALITYOF WORKING LIFE

After reading this Unit, you should be able to understand :

the up-and-coming trends in work organizations;

the concept of quality of work life; and

how the emerging trends affect the quality of work life of employees.

Structure

7.1 Introduction

7.2 Emerging Trends in Work Organizations

7.3 Prophesying the Future

7.4 Quality of Work Life (QWL)

7.5 Summary



7.1 INTRODUCTION

The concept and the nature of work has undergone numerous changes overthe years. During the 19th Century, workers wrestled to safeguard their right todetermine how and when they would work. This was the great age of co-operatives, strikes and political movements led by small artisans defendingindividual methods of working against the factory system. As the 20th Centuryprogressed, workers were gradually trapped within the formal economy of jobsand factories, and tussled to control the amount of labor they would have togive to the system in order to live. This was the age of the struggle for theeight-hour day, for weekends off, holiday and sickness pay, of a decent wageand guaranteed employment.

The defeat of these struggles has reduced the ability of the working class tooppose the intensification and casualisation of work, while increasing theirdependence on the bosses to obtain the means to live. For some, working timehas increased beyond the eight-hour shift into overtime and additional part-timework. An employee cannot say no to do overtime work. In low wage industriesworkers get overtime work as a favor from managements and union leaders.Companies avoid laws requiring premium pay for overtime by calling it‘overstay’ or offering ‘hardship allowances’ instead of overtime pay.Additionally there has been a huge change from long-term employment with itsoften-better pay and conditions to sub-contracting and self-employment.

In this manner in the “new economy” there are several changes in the natureof economic activity, such as strong growth in the services sector, increasedlevels of productivity growth and globalized markets. Work in the new economyis deemed to be different to work in the old economy because the spreading ofinformation and communications technologies (ICT) has changed the way inwhich firms do business and create value. ICT has augmented the flexibility ofcapital goods, making capital investment more productive and encouraging firmsto substitute capital for labour. This trend contributes to the globalization ofmarkets, has changed the nature of work and its ramification for quality ofwork life of people.


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7.2 EMERGING TRENDS IN WORK ORGANIZATIONS

The pressure of competitiveness due to globalization and privatization hasresulted in many far reaching changes in the work place. Companies aredesigning their work systems around the following four props : virtualorganizations, flexible and adaptive workforce, contingent pay and democraticgovernance at workplace. Keeping people engaged in the work of theorganization and making them realize that they contribute to the mission of theorganisation is a key challenge. Table 1 provides insights into the shifts dependingon whether a company is engaged in traditional agriculture or manufacturing orinformation technology leveraged manufacturing and service sector.

Table 1: Shifting Focus In The Realm Of Work

Aspect Traditional Early/Traditional Post-IndustrialAgriculture Industry Service/High-tech

Wealth Land Money Mind/Information

Skill/Effort Brawn/Muscle Machine-tending Brain/Mind Attitudeand ability matter, notjust skill

Management Unilateral Pluralistic EgalitarianPhilosophy

Management Autocratic Paternalistic CollegialStyle

Employment Master – Servant Employer –Employee PartnersContext

Relationship One-sided Interdependence Mutuality anddependence independence

Communication Top-down Two-way Transparent

Motivation Fear Favour Fairness

Performance Information Formal, one-way Formal, open,Appraisal confidential, boss participative appraisals

Control Direction and Inducement Consensus/control Commitment

Source: C.S. Venkata Ratnam (2001), Globalisation and Labour management relations, page.303,Response Books.

Details of a few changes are mentioned below.

I. Job Insecurity And Work Intensification

Let’s look at an instance of how intensification is launched into the workplace.In 1974 at the Eicher factory in Faridabad 450 workers produced 80 tractorsper month. Supervisors then drove workers to make 150 tractors in a month.An incentive scheme was introduced in 1978 and workers started producing500 tractors a month, then 1000 in 1982 and 1500 per month in 1988. In 1989a re-engineering plan was implemented. The number of workers was halved,though they still had to produce the same number of tractors, and the incentivescheme was discarded. Eicher then used the latest “human resourcedevelopment” scheme to reduce the number of workers further and goadedthem to produce 2000 tractors monthly. At some time incentives were givenwhen a tractor was assembled in 15 minutes. Now it is done in 10 minuteswithout incentives, and the management wants it done in seven. The unions in

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the factory have fought the worker’s cause and fought it well: their membersare allowed to take all of nine minutes, not seven, to assemble a tractor.Among industrial wage-workers, then, incentives for increased production areoften used to make workers supervise intensification of their own bodies.Incentives are meant to lure workers to give more than normal production. Theincreased levels of production become the new norm - to be met withoutincentives. Management then begins a new cycle of increasing work-load andintensity ( Adapted from www.WORK.htm).

A major study conducted in 1999 reported that “the root cause of job insecurityand work intensification lies with the reduced staffing levels pursued by seniormanagers in response to market pressures from competitors and dominantstakeholders” . That same study revealed that 60% of employees in Britainclaimed the pace of work and the effort required to do it had greatly increased,resulting in poor general health in the workforce and tense family relationships.Stress and ill-health are made worse by job insecurity. Of course the two areused together to exploit workers more intensively: “if you want to keep yourjob, work harder” and “unless you work harder, you will lose your job”. 30% ofthe workforce work longer than 48 hours a week, with 39% reporting anincrease in working hours. Between 2000 and 2002 alone, the number of menworking more that 60 hours per week rose from one in eight to one in six. Thenumber of women working long hours has doubled. 50% of workers reportinadequate or very inadequate staffing levels and as production and qualitysuffer, performance appraisal systems are introduced, causing more stress andworry. A major source of job insecurity is the distrust employees have of theirbosses. Few employees consider their managers have any faithfulness towardsthem. The longer one remain in a state of insecurity the more his physical andmental well-being deteriorates.

II. Flexibilisation & Casualisation

Flexibilisation is often presented as the creation of flexible working patterns .Many employees have no objection to flexible hours and working but it is theimposition of flexibility that provokes so much opposition. Interestingly (and notsurprisingly), those with interesting jobs are greatly in favor of flexible working.For them it means more time with their family members, more leisure andquality time. They claim to be able to work smarter and harder. Study afterstudy show, however, that this choice is not open to working class people incul-de-sac type jobs. The working class response to flexibilisation – a high laborturnover, absenteeism, low commitment and poor performance – is matched bythe reduction in benefits, performance management techniques and rigorousmonitoring of work and working.

The report SMEs and Flexible Working Arrangements, by Shirley Dex andFiona Scheibl, of the Judge Institute of Management, Cambridge, is published byThe Joseph Rowntree Foundation, found that flexible working arrangements,practiced informally, are far more common in small organizations. Theresearchers divide types of employer into 3 groups in terms of their adoption offlexible work: holistic, selective, and resistant - in other words, those who gofor it, those who do a bit, and those who don’t.

The Britain Government introduced the Work-Life Balance campaign in 2000.The campaign was to help employers to recognize the benefits adopting policiesand procedures to enable employees to adopt flexible working patterns. Thiswould help staff to become better motivated and more productive becausethey were better able them to balance their work and other aspects of theirlives.

Emerging Issues of WorkOrganisation and Quality

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Conversely, casualisation is the process by which the power of employers togive or refuse to give employment is greater than before. Many bosses areintroducing ‘zero hour’ contracts, where there is no assurance of work and oneis permanently on standby. This has the benefit to the bosses as workers arenot having any rights or protection under the law. The risk associated with theuncertainties of unplanned economies, of having to pay idle workers forinstance, is transferred to the workers themselves. Many millions of jobs havealways been or are rapidly becoming casualised.

III. Macdonaldisation

Donaldisation (the modern form of Taylorism ) is a system of producing goodsand services in which the work process is broken into its smallest part,systematically analyzed, re-engineered to maximise profit and replicated in eachand every working environment that produces those goods. Making thingsbecomes a series of entirely independent, discrete, controllable actions,eliminating independent thought and creativity. Employees become estrangedfrom the process, required to perform a series of meaningless tasks. Suchalienation from the work produces depression, anger, an unthinking and uncaringremoteness from other people.

Everywhere this process is used the bosses are happy with the amountproduced but appalled by its low quality. The labor turnover in these factories isevidence of the determination of people to resist their exploitation. The bossesget rid of any worker who shows signs of resistance or who are toodemoralised to produce efficiently.

This system is also often known as Toyotism, after the Toyota, Japan factorysystem introduced in the 1960s and 1970s. The level of control over workershas been deepened by the introduction of individual work contracts and otherprocesses that impose obligations to produce on the individual while weakeningcollective agreements and relationships – creating what is known in Europe asthe ‘diffuse factory’. What is new about Toyotism is “just-in-time” productionand prompt reaction to market requirements; the imposition of multi-jobbing onworkers employed on several machines, either simultaneously or sequentially;quality control throughout the entire flow of production and real-time informationon the progress of production in the factory. Production is often come to astandstill and work-teams, departments or even the whole factory called toaccount. Anybody who shows a waged-worker’s indifference to the company’sproductivity requirements and decides not to join “quality control” groups etc, isstigmatised and encouraged to leave.

The same system is applied to the commodities that are used in the processwith every stage of how they are produced and processed minutely regulated.A cow is not a living creature but a sack of usable and unusable meat, fat andgristle. How the useful is divided from the not-so useful is a science in itself.Increasingly consumption and leisure are being ‘McDonaldised’. Now weexpect to be able to find the same brand names throughout the world. Cultureis increasingly global but it also increasingly mass-manufactured and distributed,designed for mass appeal .

IV. Commodification

Work used to be a purposeful and meaningful activity. There was spiritualcontentment in working and co-operating to meet the needs of oneself, onesfamily and people. People chose the work they did if they could and investedmuch of their personality and abilities in the making and production of useful,better or beautiful things. Today, the supremacy of consumption as a socialgood and conferrer of social status on people as individuals has made the

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product far more important than the producer . Work has died away to have apersonal value for those who sweat. In many cases it does not have a socialvalue to society.

Large amounts of work is simply about the reproduction of capitalism. Itmatters only because this is the means by which capitalism rationalises itselfand produces the means – money – for its own continuation. The activityproduces nothing, except money, whose social value is zero. Work only mattersin terms of what is produced – the commodity - and the social and personalvalue of what is produced to the person consuming it. Of course, many peoplerealise this but are themselves trapped by the artificial need and desire toconsume. We become our own gaoler! It is through consumption that themajority channel their aspirations – to pleasure, to a sense of meaning andpersonal identity. Our aspirations to freedom have been transferred from theworkplace to the rest of our lives but the commodification of personal life andleisure has simply built more cares around our life. The refusal to work mustbe accompanied by the refusal to consume (and vice versa), to participate inthe reproduction of everyday life through the production and consumption ofuseless commodities via a co modified process: work.

V. Rescheduling Working Arrangements

Alternative ways of scheduling the days and hours of work are increasinglycommon. These arrangements reshape the traditional schedules, such as the40-hour week and 8 to 5 day, in ways that better accommodate individualneeds. These arrangements help employees balance work with their non-workresponsibilities and activities, and are among the innovations commonly found at“family friendly” employers.

Compressed Workweek

A compressed workweek is any work schedule that allows a full-time job tobe completed in fewer than the standard five days. The most commoncompressed workweek is the 4-40, where 40 hours of work are accomplishedin four 10-hour days. Someone working a 4-40 often benefits from increasedleisure time, more three-day weekends, free weekdays to pursue personalbusiness, and lower commuting costs. The organization can benefit, too, interms of reduced energy consumption during three-day shutdown, loweremployee absenteeism, improved recruiting of new employees, and the extratime available for building and equipment maintenance. However, someworkers complain about increased fatigue from the extended workday andfamily adjustment problems. Customer complaints occur due to serviceinterruptions and breaks in work coverage.

Part-Time Work

Part-time work has become increasingly common in modern society. It hasalso proven controversial in some important respects. There are two kinds ofpart-time work: (1) temporary part-time work is where an employee isclassified as “temporary” and works less than the standard (e.g.,40-hourworkweek), and (2) permanent part-time work is where a worker isconsidered “permanent” but works fewer hours that the standard workweek.”

Organizations sometimes employ part-time workers in order to hold downlabor costs and more easily adjust staffing to peaks and valleys in the businesscycle. Both temporary and permanent part-time work can benefit people whohold full-time jobs elsewhere, or who only want to work part-time for personalreasons.


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Job Sharing

Job sharing is dividing one full time work between two or more peopleaccording to a schedule agreed to among themselves and the employer. Thetwo typically work different parts of the week with some overlapping worktime in the weekly schedule to coordinated activities. This works for somepeople , but the major challenge is finding a partner with a compatible workstyle and pace.

Telecommuting

Telecommuting describes work done in the home or in a remote location viause of a computer and/or facsimile machine linked to a central office or otheremployment locations. Sometimes this arrangement is called flexi place.Teleworkers may be described as those who spend a substantial proportion oftheir time at home and who use telephone and computers in the course of thiswork. Studies of teleworking identify the main advantages as:

reduction in office costs;

increased motivation and productivity;

improved recruitment and retention;

more opportunities for those with family responsibilities and the disabled:

increased flexibility;

improvement in equal opportunities;

meeting employee demands;

reducing the time, cost and stress of commuting to and from work; and

less absenteeism.

The main disadvantages to the employee are social segregation and thedifficulty of self-motivation, and for the employer they are those of ensuringeffective communication and management and the difficulty of ensuring that theworker complies with health and safety requirements. For teleworking tosucceed, there needs to be significant mutual trust between the employer andemployee plus clear goals and procedures for the workers involved.

Call Centres

On of the recent developments in organizations has been the growth of callcenters. These are functions within organizations designed to respond to alarge volume of calls from customers, or to generate sales, and comprise alarge number of operators, usually at least ten, whose role is to provide a firstline of service to callers. They are sometimes described as the battery farmsof the information age.

Call centers bring with them a whole thrust of different issues for organizationsto confront. These include:

how to maintain motivation and morale in such an environment;

how to measure and reward performance;

how to avoid high levels of stress arising from the intensive nature of thework; and

ensuring that the call center staff have the required levels of skills andtraining.

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Activity A

In the light of your work experience, elucidate whether flexible workarrangements actually help employees to balance work with their non workresponsibilities and activities ?

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HRM dimension

Employee’s careerFormation

Employee’s loyalty

Skill/knowledge sets

Locus of work

Focus of work

Skill obsolescence

Activity/feedbackcycles

Performance measures

Impact on companysuccess

Organizationalstructure

Control of work

Managerial functions

Authority/power

Control of workoutcomes

Knowledge work

External to the organizationthrough years of education andsocialisation

To professions, networks andpeers

Specialised and deep, but oftenwith diffuse peripheral focuses

In groups and projects

Customers, problems, issues

Rapid

Lengthy from a businessperspective

Process effectiveness Potentiallygreat, but often erratic

A few major contributions ofstrategic and long-termimportance

Hierarchic, mechanistic, atomic

Vested in the supervisoryprocess

Functions

Hierarchical position, commandand control

Remains with centralmanagement

Traditional work

Internal to the organizationthrough training, development,rules and prescriptive careerschemes

To the organization and its careersystems

Narrow and often functional

Around individuals

Task, objectives, performance

Gradual

Primary and of an immediatenature

Task deliverables Little (asplanned), but regular anddependable

Many small contributions thatsupport the master plan

Holographic, Organic, overlapping

Vested in the Individuals

Process

Professional influence,communication

Negotiated between supervisorsand groups of knowledge workers

Table 2: Difference Between Traditional Work and Knowledge Work


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VI. Growing Relevance of Knowledge Work

Over the years the relevance of knowledge work has been increased. The natureof knowledge work is significantly different from traditional industrial work. CharlesDespres and Jean-Marie Hiltrop of The International Institute of ManagementDevelopment, Switzerland have defined these differences of knowledge and traditionalforms of work. These differences are illustrated in Table 2.

7.3 PROPHESYING THE FUTURE

A report published by the DTI’s Future Unit of U.K Government, ‘Work in theKnowledge-Driven Economy’, takes a look at what work might be like in 15years’ time and concludes that for many in this generation, the world of workwill be very different to that of their parents. It warns we must all prepare forchange and will need new skills in the work-place of the future. The reportenvisages that:

The move from manufacturing to service sector jobs and from blue collar towhite collar jobs will continue.

White collar clerical work will decline whilst highly skilled knowledge-basedjobs will grow.

Service sector employment will become increasingly important as the ‘humantouch’ will be difficult to replicate with machines.

Teleworking could grow substantially.

The report develops two possible scenarios of the world in 2015 to helpunderstand how the future of work might change. These are:

‘Wired World’

Depicting an economy composed of a network of individuals, working onprojects through the Internet. In ‘Wired World’, individuals will no longer beable to rely on the ‘comfort zones’ created by larger companies (personneladvice, legal, marketing, technical and financial expertise). It is a world whereindividuals develop sets of skills and a knowledge base and sell these to otherindividuals or companies

‘Built to Last’

Describing a world in which large companies use incentive packages and otherpowerful mechanisms to keep the knowledge of their employees in-house.

The future will contain elements of both scenarios and whatever the mix, if aspredicted the speed of change increases, people will have to become moreadaptable. This has implications for the skills that we need and the way welearn.

Activity B

How do you see the future of your organization after a decade?

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7.4 QUALITY OF WORK LIFE (QWL)

Organization, in the past, gave more importance on innovative technology forhigher productivity surpassing the needs and mental state of its employees.This created a negative impact on the working environment among theemployees. Thus it was realised that societal support goes hand in hand withtechnical innovations. This integration can only be made through quality ofwork life programmes. Quality of work life refers to all the organizationalinputs which aim at the employee’s satisfaction and enhancing organizationaleffectiveness.

Having concern with the life on the job is not new. The increased upheaval ofunion activities in the 30s and 40s, through collective bargaining and legislations,led to improved working conditions. Even before that, labour was vigorouslyprotesting management attempts to change the work environment. A study byProfessor Robert F.Hoxie, Chicago University in 1915, reported how the unions,particularly the machinists, were fighting scientific management techniques. Inthe late 1950s, the term QWL was used to stress the prevailing poor quality oflife at workplace and it was first defined then in terms of people’s reacting towork, particularly an individual’s job satisfaction and mental health.

In the new economy , emphasis is placed upon the latest technology, mostground-breaking management practices, and state-of-the-art office buildings.However these are of no worth without the talent, commitment, andcontribution of a quality workforce. Every organization must do its best toprovide a working environment that is inclusive, enriching and encouraging to allemployees. This spirit must be visible in all work processes and benefits.

Meaning and Concept of QWL

The term ‘quality of work life (QWL) has different meanings of differentpeople. Some consider it industrial democracy or codetermination withincreased employee participation in the decision making process. For others,particularly managers and administrators, the term denotes improvement in thepsychological aspects of work to improve productivity. Unions and workersinterpret it as more equitable sharing of profits, job security and healthy andhumane working conditions. Others view it as improving social relationships atworkplace through autonomous workgroups. Finally, others take a broader viewof changing the entire organizational climate by humanizing work, individualisingorganizations and changing the structural and managerial systems.

In general terms, QWL, refers to the favorableness or unfavorable-ness of ajob environment for people. It refers to the quality of relationship betweenemployees and the total working environment. According to Harrison, QWL isthe degree to which work in an organization contributes to material andpsychological well-being of its members.One expert defines quality of workinglife as “a process of joint decision making, collaboration and building mutualrespect between management and employees”. It is concerned with increasinglabour management cooperatives to solve the problems of improvingorganizational performance and employee satisfaction. According to theAmerican Society of Training and Development, it is “a process of workorganization which enables its members at all levels to actively participate inshaping the organization’s environment, methods and outcomes. This valuebased process is aimed towards meeting the twin goals of enhanced effectivenessof organization and improved quality of life at work for employees.

Broadly the definition of quality of work life involves four major parts: safework environment, occupational health care, suitable working time andappropriate salary The safe work environment provides the basis for the person


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to enjoy working. The work should not pose a health hazard for the person.The employer and employee, aware of their risks and rights, could achieve alot in their mutually beneficial dialogue The working time has been establishedby the state according to legislation. The standard limits on overtime, rest days,and public holidays etc. have also been stipulated. The appropriate salary isagreed upon by the employee and the employer and fixed by the PayCommission. The Government also establishes the rate of minimum wage , theemployer should not pay less than that to the employee.

The concept of QWL is based on the assumption that a job is more than justa job. It is the center of a person’s life. In recent years there has beenincreasing concern for QWL due to several factors :

increase in education level and consequently job aspirations of employees;

association of workers;

significance of human resource management;

widespread industrial unrest;

growing of knowledge in human behaviour , etc.

Objectives of QWL

The main objectives of the QWL programs are to :

Improve employee satisfaction;

Improve physical and psychological health of employees which createspositive feelings;

Enhance productivity of employees;

Reinforce workplace learning;

Improved management of the on-going change and transition; and

Build the image of the company as best in recruitment, retention, and ingeneral motivation of employees.

Basic Issues in QWL

Quality of work life is concerned with the following types of questions.

I. How to develop careers that allow employees to realize their fullcapabilities and interest?

II. How to design jobs to provide meaningful, interesting and challengingwork experience?

III. How to utilize group dynamics and participative management to improvethe quality of life at the workplace?

IV. What supervisory strategies help to improve the quality of work life?

V. How can the desired organizational changes be carried out?

Activity C

Think of the job you now have . Discuss both the favorable and unfavorableQWL characteristics contained in it.

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Characteristics of QWL Improvement Programmes

The results, reported from a number of quality of work life improvementprogrammes, have some common characteristics. These are :

Persistent commitment from management to the open non-defensive modusoperandi of sincerely inviting collaborative inputs from the workforceregarding problem identification and suggestions for improving any aspect ofthe organization or the policies, practices and structure of work withincentives provided for such participation.

Invited involvement of members of tasks groups in recommendingresolution of identified problem.

Training of supervisors to prepare them to function effectively in a lessauthoritative style.

Implementation of practicable suggestion and explanations for rejected ideas.

Feedback and recognition for good results achieved.

Selection of personnel who can be motivated under appropriate conditions tostrive for excellence in task performance.

Evaluation and analysis of results, including failures, leading to renewedeffort towards continual improvement in modus operandi.

Eight Practices Of QWL

Quality of working life though came into circulation in 1970s became popularonly in 90s and organizations realised its potential to enhance the productivity inthe new century. This works as a comprehensive model to those employerswho want to ensure quality in working life of their employees. An idealquality of work life programme will include practices in eight major areas asdiscussed below:

Adequate and fair compensation. This is fundamental to QWL. Humanbeings work for livelihood. Therefore success of rest of the initiatives dependsupon fulfillment of this. However, important here is that compensation offeredmust be adequate implying it must be proportionate to labour, and there shouldbe internal consistency among salaries of employees.

Safe and healthy working conditions. Unsafe and hazardous workingconditions cause problems to both employers and employees. There may belittle advantage to the employer in short-term but in medium and long-terms, itadversely affects the productivity. Therefore, adequate investment must bemade to ensure safe and healthy working conditions.

Immediate opportunity of use and develop human capacities. The jobs havebecome routine, meaningless and too specialized, depriving the employees offulfillment satisfaction. Therefore, efforts should be made to increase theautonomy, perspective and exposure to multiple skills.

Future opportunity for continued growth and security. This is related tocareer aspects of employees. Meaningful career paths must be laid down andcareer mapping of employees is to be followed. The provision of advancementopportunities play a central role in QWL.

Social integration in the work organization. Relationships between andamong the employees is an indicator of healthy work organization. Therefore,opportunities must be provided for formal and informal interactions. All kind ofclasses religions, races, crafts, and designations must be treated equally on asocial platform. In other words, it creates egalitarian environment.


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Constitutionalism in the work organization. This is related to organizationalnorms that affect the freedom of an individual employee. Efforts must bemade to see right norms are formed in the organization. It means norms thataccommodate the privacy of an individual employee, freedom of speech, equityand freedom to dissent on some aspects.

Work and the total life space. Employees should not be allowed tocontinuously exert themselves. The continuous hard work causes psychologicaland physical strains. Therefore, there has to be a balance between personaland professional life. Organization must create proper work offs to enrich thelife of employees.

The social relevance of work life. Employees must be given the perspectiveof how his/her work in the organization helps the society. This is essential tobuild relevance of the employee’s existence to the society he/she lives in.

Techniques of Improving Quality of Work Life

The concept of quality of work life has been operationalised through varioussystems such as job enrichment, workers’ participation in management,organization development, quality circles, employee welfare, etc. While someof these schemes have been successful in improving the quality of work life,others are still to show results. The quality of work life movement is of recentorigin and has a long way to go. Individuals as well as organized efforts arerequired to improve the quality of work life for millions of workers in thecountry.

In 1981 the National Productivity Council organized a national seminar onquality of work life. The seminar made several suggestions and pointed out theresponsibilities of different groups in improving the quality of work life. Theseresponsibilities are summarised below:

1. Responsibilities of Employers:

a. Provision of physical amenities at the work place, health and safety andwelfare provisions.

b. Involving workers in decision making on all matters.

c. Initiating suitable forms of work design.

d. Formalisation of QWL experience for future use.

e. A re-examination of policies of work.

f. Developing an appreciation of changing environment.

2. Responsibilities of unions and workers:

a. Educating and making workers aware of QWL.

b. Search areas of collaboration with management.

c. Identifying ways and means to satisfy workers’ needs through non-monetaryalternatives.

d. Organising labour in the unorganised sector and specially making themaware of QWL

e. Encouraging workers to participate in QWL activites.

3. Responsibilities of professional organizations:

a. Organise workshops and seminars to bring about greater awareness ofQWL.

b. Initiate specific research projects in this field.

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c. Provide professional assistance to organizations to help generate internalcompetences.

d. Developing state-of-art profiles on QWL.

e. Developing special programmes for various classes of workers.

f. Developing a network for collection, storage and dissemination ofinformation on QWL.

4. Responsibilities of the Government:

a. Legislating standards and norms in newer areas.

b. Change in policy to provide greater autonomy to experiment with QWL.

c. Executive action to ensure implementation of legislated facilities.

d. Encouragement and adoption of appropriate technology.

e. Finding projects on QWL.

f. Suitably modifying the structure and scope of education in the country.

Some of the techniques used to improve QWL of an average worker in Indiaare given below:

1. Job Redesign: Narrow jobs need to be combined into large units ofaccomplishment. Jobs should be redesigned to enrich them, Job enrichmenthelps to satisfy higher order needs by providing interesting, stimulating andchallenging work.

2. Career Development: Opportunity for career advancement and growthpersonality improve commitment. Career planning, counseling secondcareers, etc, help to meet expectations of achievement-oriented employees.

3. Autonomous Work Groups: In an autonomous work groups, employeesare given the freedom of decision making. In such a group the workersthemselves plan, coordinate and control their activities. The group as awhole is accountable for success or failure. It is also called a self-managedwork team.

4. Flexible Work Schedules: Flexible working hours (flexitime), staggeredhours, reduced work weak, job sharing, part-time employment and othertypes of alternative work schedules provide freedom to employee inscheduling their work.

5. Participative Management: Employees want to participate in decidingmatters which affect their lives. Therefore, quality circles, management byobjectives, suggestion system and other forms of employees’ participation inmanagement help to improve QWL.

6. Job Security: Adequate security of job is a high priority of employees andshould be provided.

7. Administrative Justice: The principles of justice, fair and quality should beapplied in disciplinary procedure, grievance procedures, promotions, transfers,work assignment, leave, etc.

The Role of the Supervisor in QWL

The Supervisor is one key to the quality-of –work life. A study by Universityof Michigan which sought to relate a large number of characteristics ofworkers jobs to overall satisfaction illustrates the wide variety of ways bywhich supervisory behaviour affects subordinate satisfaction. The eight mostclosely related factors are listed below:

Having a ‘nurturant’ supervisor

Receiving adequate help, assistance, etc.


of Working Life


56

Having a few ‘labour standard problems’ (such as safety hazards, non-availability of materials, or poor transportation)

Fair promotional policies

Supervisor not supervising too closely

Having a technically competent supervisor

Autonomy in matters affecting work

A job with ‘enriching’ demands.

The supervisor influences quality of work life directly or indirectly. He affectssubordinates directly through his daily interaction with them. He can besupportive or disagreeable, friendly or distant, available to provide help oralways busy. He influences the design of jobs, plays a key role in theadministration of career and reward systems, and is also in a position to fosterthe development of social systems. Nonetheless, the vigilant supervisor can jointogether these factors so that quality of work life will be enhanced as well asorganizational objectives will be accomplished.

The Role of the Management in QWL

Management has to play a very significant role in improving quality of life ofemployees. Management must strive to make the quality of employees worklife as satisfying as possible. At the moment employees are challenged asnever before to balance work and personal responsibilities. Therefore themanagement should continually addresses these challenges by utilising personnelflexibilities and establishing programs that help employees meet their work andpersonal obligations.

The steps that should be taken by the management are :

Establishing appropriate, reasonable and enforced work rules. Work rulescan help to create and maintain an orderly atmosphere that is pleasant towork in where employees can work effectively. Work rules can helpimprove quality of work life by:

creating an atmosphere where employees are treated with dignity andrespect.

helping to ensure that employees conduct themselves in a professional andsafe manner.

encouraging open communication between employees .

ensuring that all employees are treated fairly and that they follow the samerules.

Develop and implement a flexible work policy and procedure

Provide training to managers and supervisors on how to respond effectivelyto work life issues

Provide resiliency and personal accountability training for staff

Invest in organization-specific quality of work life programs in eldercare,childcare, diversity, etc.

Encourage participative work teams to reinforce an environment of trust andhelp employees to work more effectively and efficiently in order toaccomplish organisation mission.

Provide employees assistance through the Employee Assistance Program(EAP), a free, confidential counseling and referral service to resolvepersonal problems.

Actively support employee health and wellness .

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How to Measure QWL

The following indices may be used to judge the quality of work life in anorganizaton:

Job Involvement : It represents the degree of an individual’s identificationwith or ego involvement in the job. The more central the job is to theindividual’s life, the greater is his involvement in it. Therefore, the individualspends more time and energy on the job. People with high job involvementare better motivated and more productive. Research reveals that skillvariety, achievement and challenge help to improve job involvement.

Job Satisfaction: It implies the worker’s satisfaction with the environmentof his job environment consisting of nature of work, quality of supervision,pay, coworkers, opportunities for promotion, etc. Job satisfaction is relatedto job involvement and people involved in their jobs are satisfied with theirjobs and vice versa.

Sense of Competence: It refers to the feelings of confidence that anindividual has in his own competence. Sense of competence and jobinvolvement reinforce each other. An individual acquires a greater sense ofcompetence as he engages himself more and more in work activities. Whenhe feels more competent he become more involved in his job and becomesbetter motivated.

Job Performance : When an individual’s job involvement, job satisfactionand sense of competence increase, there is a rise in job performance.

Productivity: When the level of job performance increases the output perunit of input goes up. Thus, match between job characteristics andproductivity traits of employees generally result in higher productivity.

The Effect Of Quality Work Life

The positive aspects of QWL are:.

Improved communication and co-ordination among the workers andorganization helps to integrate different jobs resulting in better taskperformance.

Better working condition enhances workers motivation to work in a healthyatmosphere resulting in motivation and increase in production.

As QWL includes participation in group discussion and solving the problem,improving the skill, enhancing their capabilities and thus building confidenceand increased output.

QWL attracts talented employees and make them loyal towards theorganization.

Making employees feel valued .

Increased productivity

Reduced absenteeism

Earned the reputation of being an employer of choice

Retaining valued employees .

Help employees to have work-life balance .

The net result is - more satisfied and productive workers produce better andquality products .

Activity D

What is work-life balance? How is it beneficial to both employers andemployees?...........................................................................................................................


of Working Life


58

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Conditions for Successful QWL Programs

The following conditions are highly essential for the success of QWLprogrammes.

Shared recognition of a need for change.

Strong leadership.

Collaborative planning for change.

Allocation of adequate resources to manage the change.

Invitation to a third party who can introduce novel ideas , serve as acommunication link, and help eliminate stereotypes and distrust.

7.5 SUMMARY

In the “new economy” there are several changes in the nature of economicactivity, such as strong growth in the services sector, increased levels ofproductivity growth and globalised markets . Companies are designing theirwork systems around the following four pillars: virtual organizations, flexible andadaptive workforce, contingent pay and democratic governance at workplace.Job insecurity and work intensification, flexibilisation & casualisation ,Macdonaldisation, co modification, emergence of knowledge workers andrescheduling working arrangements are a few changes taken place in theorganization in the New- Economy.

QWL, refers to the favorableness or unfavorable-ness of a job environmentfor people. Making employees feel valued, increased productivity , reducedabsenteeism earning the reputation of being an employer of choice, retainingvalued employees , and helping employees to have work-life balance etc. aresome of the positive aspects of QWL.


1. Write an essay on the upcoming trends in work organisations.

2. What are the eight practices of QWL?

3. Discuss the role of supervisor and of the management in QWL.


Gupta, C.B. Human Resource Management, Sultan Chand & Sons, 2002.

http://www.jrf.uk/ www.\WORK.htm

Schermerhorn, Jr. John R. Hunt, James G. and Osborn, Richard N., BasicOrganisational Behaviour, John Wiley & Sons .Inc. , USA, 1998.

Shirley Dex and Fiona Scheibl, “Human Resource Management in theknowledge Age: Current Practice and Perspectives on the Future”, EmployeeRelations, 1995.

1




Block

4ORGANISATIONAL ANALYSISUNIT 8

Organisational Diagnosis: Tools and Techniques 5

UNIT 9

Questionnaire as a Diagnostic Tool 33

UNIT 10

Interview as a Diagnostic Tool 65

UNIT 11

Workshops, Task-forces and other Methods 75

Organisational Analysis

2









July, 2004 (Revision)


ISBN-81-266-1330-0

All rights reserved. No part of this work may be reproduced in any form, by mimeograph or anyother means, without permission in writing from the Indira Gandhi National Open University.


Printed and published on behalf of the Indira Gandhi National Open University, New Delhiby Director, School of Management Studies.





3

BLOCK 4 ORGANISATIONAL ANALYSIS

An understanding of organisations and their nature is important to bring aboutany improvements in organisations. The various units under organisationalanalysis attempt to equip the reader with an understanding of organisations,including various elements and processes of organisations.

The first unit aims at helping the reader to know about the various methods ofdiagnosing organisations.

Second unit deals with Questionnaire measures of organisational phenomena inview of the large number of questionnaire available and their importance to theunderstanding of organisational phenomena.

The third unit deals with Interview as a diagnostic tool. Within a short span ofperiod interview technique helps in understanding the issues involved in anorganisation.

The fourth unit deals with workshops, task-forces and other methods. Thesemethods also help in diagnosing instead of relying only on questionnaire andinterview methods.


4

5

Introduction toMicrobesUNIT 8 ORGANISATIONAL DIAGNOSIS:

TOOLS AND TECHNIQUES

Objectives

After going through this unit, you should be able to understand:

the concept and purpose of organisational diagnosis

steps and methods of organisational analysis.

Structure

8.1 What is Organisational Diagnosis?

8.2 Organisational Analysis as First Step in Diagnosis

8.3 Illustrative List of Organisational Subsystems

8.4 Illustrative List of Organisational Processes

8.5 Purpose of Organisational Analysis

8.6 Organisational Analysis Perspectives

8.7 Methods of Organisational Analysis

8.8 Practical Perspectives on Organisational Analysis

8.9 Summary



Appendix 1: Organisational Analysis

8.1 WHAT IS ORGANISATIONAL DIAGNOSIS?

In some ways organisations, their structure and functioning can be compared tostructure and functioning of the human system. Just as an organism has severalparts an organisation is also structured with several subsystems. Effectivefunctioning of the human sub-systems depends on the effective functioning ofall the constituent parts. When the human system is in trouble it is either due toa problem in a part that could be located or due to problems that affect theentire system. In any case when there is trouble the entire system gets affected.

Just as a doctor diagnoses the problem with the human system on the basis ofthe symptoms and analysis of the system using some tests (standard tests likepulse rate, BP etc. as well as special tests) an organisation facing problemscould be diagnosed by an organisational specialist on the basis of noticeable(visible) symptoms and using tests to bring out what is not evident. The onlydifference is that the human organism normally functions as a whole as it has asingle mind. An organisation has several parts each having its own independentminds and they may not always function in a fully unified way. So even whenthe top management think that there is a problem other systems may not thinkso or vice versa. Organisation has several minds that is what adds to thecomplexity of the organisation.

Another parallel between the diagnosis of the human being and an organisationis the need to go through a diagnostic check up periodically even if there areno problems. Fitness tests are quite common for the human being. From thetime a child is born there are periodic check ups that are conducted which areused as diagnostic instruments. The size, growth, activity level, heart rate etc.are all assessed. Even in the school it is common to put a child through fitness


6

tests. As the person grows into his forties he is advised to get annual checkups done. Similarly an organisation can put itself through periodic check ups ordiagnostic exercises to assess its growth, dynamism, strengths, weaknesses etc.

Thus organisational diagnosis is an exercise attempted to make an analysis ofthe organisation, its structure, subsystems and processes in order to identify thestrengths and weaknesses of its structural components and processes and useit as a base for developing plans to improve and/or maximise the dynamism andeffectiveness of the organisation.

Organisational diagnosis could be done as a periodic routine exercise like thecase of periodic medical check up of an individual or may be undertaken wheneverthere is a cognizable problem that is affecting the functioning of an organisation.

Just as in the case of the medical sciences there is a lot more unknown aboutthe human being and quite a few things cannot either be diagnosed or cured,management science also has gaps and quite a few problems of organisationsare not easy to diagnose or cure. But an equally good number of problems canbe solved and the organisational effectiveness improved if the diagnosis is donewell by competent people.

These units on diagnosis, development, and change are not intended to makethe reader into an organisational specialist. Such a thing requires differenttraining. These units are intended to develop a basic understanding about theorganisational analysis, so that when a need or an opportunity arises the readeris aware of what is to be done and whom to approach. In addition when hisorganisation undertakes a diagnostic exercise he may be able to contribute better.

8.2 ORGANISATIONAL ANALYSIS AS A FIRSTSTEP IN DIAGNOSIS

Analysing the organisation, in terms of its components and their functioning isthe first step in a comprehensive diagnosis.

Every organisation can be conceived as consisting of various subsystems orparts. Effective functioning of each of these parts is essential for effectivefunctioning of the organisation. In addition the coordinated functioning of thesesubsystems also contributes to organisational effectiveness. For makingorganisational diagnosis the strengths, weaknesses and potential of each of thesubsystems need to be examined. In addition the various processes that contributeto the effective functioning of the organisation as a whole need to be examined.

As emphasized by Bechard “The development of a strategy for systematicimprovement of an organisation demands an examination of the present state ofthings. Such an analysis usually looks at two broad areas. One is a diagnosis ofthe various subsystems that make up the total organisation. These susystemsmay be natural “teams” such as top management, the production department, ora research group; or they may be levels such as top management, middlemanagement or the work force.

“The second area of diagnosis is the organisation processes that are occurring.These include decision-making processes, communication pattern and styles,relationships between interfacing groups, the management of conflict, the settingof goals and planning methods”.

Thus organisational analysis may either focus on the structural aspects(subsystems, various components etc.) or on processes. The following is anillustrative list of the various subsystems of an organisation and the processeswhich could form a focus of diagnosis.

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8.3 ILLUSTRATIVE LIST OF ORGANISATIONALSUBSYSTEMS

Various departments/sub-units of an organisation (e.g. Production, Personnel,Materials, Marketing, Accounts, Maintenance, Training etc. or in an educationalinstitution the various subject based units, the establishment section, library,hostels, examination unit, registrar’s office etc. or in a bank the branches,regions, zones, headquarters etc.)

Various levels in the organisation (e.g. top management, middle management,first level supervisors, skilled workers, unskilled workers etc. or gradewiselike Grade I, Grade II, Grade IV etc. or designation based categorisationlike officers, managers, executives, general managers, vice-president,directors etc.).

Geographic units (e.g. North, East, West, South Zones or Madras region,Calcutta region, Delhi region, Bombay region etc.).

Functional background based subsystems (e.g. engineering services Vs. non-engineering group teaching faculty Vs research staff; line Vs. staff etc.).

Experience and education based subsystems (e.g. new recruits Vs.experienced employees, or employees joined one year ago, two year ago,three years ago, five years age, 10 years ago etc., undergraduates,graduates, post-graduates etc.).

Division-based subsystems (e.g. product based division such as agriculturalproduct division, chemicals division, automobile accessories division etc.).

Personnel and HRD Policies (e.g. recruitment, rewards, induction,performance appraisals, promotions, training, job rotation etc.).

Research and Development (e.g. interest in new technology and investmentsin R&D structure of R&D, linkages with other subsystems).

Stake holders and their contribution (share holders, unions, top management,board members, government employees etc.).

Financial Management (e.g. sources of finance, investment decision whomakes them and how they are made, accountability etc.).

Marketing Management.

This is only an illustrative list and not an exhaustive list.

8.4 ILLUSTRATIVE LIST OF ORGANISATIONALPROCESSES

Communication

Is it one way or both ways (upward and downward)? How is the sharing ofinformation?

How much openness exists in communication?

Who has information? Is it loaded in some pockets?

How is the information used?

How much of distortion takes place when messages are sent?

What channels are used to send messages to people? How good are these?

Do people who need information get it on time?

Is it formal or informal?

Organisational Diagnosis:Tools and Techniques


8

What kinds of information is shared?

Are people’s expectations met in terms of availability of information etc.?

Goal Setting

How are goals set?

Is there clarity of tasks and objectives?

Who provides clarity? How frequently?

What is the process of goal setting? Is it participative or autocratic?

Does the process of goal setting ensure commitment to tasks?

Role Clarity

Do employees know well what they are expected to do?

Is there a discipline to plan their work?

To what extent is there ambiguity of roles resulting in tensions, ad hocism etc.?

Is there periodic dialogues between supervisors and their subordinates toincrease role clarity?

What is the extent of flexibility/rigidity in defining roles for employees? Is itfunctional or dysfunctional?

Culture

What are the norms and values in the organisation that are widely shared?

To what extent openess is valued?

Do people trust each other generally?

Is there general collaborative attitude among staff?

Do people value experimentation, risk-taking and initiative?

Is punctuality valued?

Management Styles

Is the management bureaucratic or entrepreneurial or professional orconservative? What is the style of decision-making in relation to newinvestments, people, technology, structure and the like?

Conflicts and their Management

How frequently do conflicts occur?

How are they dealt with?

Management of Mistakes

When people make mistakes how are they handled?

Organisational Learning Mechanisms

Teams and Team work

How much is team work valued?

Are there committee systems?

How do they function?

What are the attitudes of employees to them? etc.

Work Motivation

Are people generally satisfied with work and their job?

What is the level of their involvement?

Do they take pride in what they do?

What is the level of loyalty to the organisation?

This is an illustrative list and the questionnaire measures described in the nextunit provide more dimensions for organisational analysis.

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8.5 PURPOSE OF ORGANISATIONAL ANALYSIS

Organisational analysis may be done for different purposes. These include:

1) Enhancing the general understanding of the functioning oforganisations (i.e. educational or research purposes.)

(The direct beneficiary is the researcher or the analyst rather than theorganisation). Such a study may aim at enhancing the understanding ofhuman behaviour through a study of it in organisation, or to enhance theunderstanding of the society as reflected in organisational life.

2) Planning for growth and diversification

An analysis or a diagostic study may be necessary for planning growth,diversification, expansion etc. Organisational analysis may reveal thestrengths that could be used for growth and diversification, weak spots thatneed to be removed in the new plans, the precautions to be taken, structuraldimensions to be kept in mind etc. Several insights may be provided onstructure, people, systems, styles, technology etc. that have implications forgrowth.

3) Improving Organisational Effectiveness or Planning GeneralImprovements

Organisational Analysis may be used also for improving the generalefficiency of an organisation. On the basis of a diagnosis made out of theanalysis action steps could be initiated in terms of toning up administration,introducing new management systems and processes, reduction of wastefulexpenditure, introduction of time savers, change of personnel policies toenhance employee motivation, restructuring of some parts, training,elimination of unwanted structures and teasers, improvements in generalhealth of the organisation etc.

4) Organisational Problem Solving

Whenever some subsystems departments, units etc. fall sick or start creatingproblems a diagnosis may be undertaken with a view to identify the sourceof the problem and take corrective action. A sick unit, a bottleneck, acommunication block, a poor performing department, frequently occurringconflict between two departments, repeated failures of a managementsystem or an organisational process, a frequent violation of an organisationalnorm, fall in discipline, reduction in output absenteeism, increase in conflictsetc. can all lead to the need for an organisational diagnosis of a part of theorganisatioin or the entire organisation.

8.6 ORGANISATIONAL ANALYSIS PERSPECTIVES

Organisations can be analysed with different perspectives in mind. Theperspectives one takes depends both on the purpose for which the analysis isbeing done and the professional background of the people doing organisationalanalysis. The following perspectives could be used for analysing organisations:

1) Economics Perspective

2) Political Science Perspective

3) Sociology and Social Psychology Perspective

4) Management Perspective

5) Applied Behavioural Science or OD Perspective

Economic Analysis of Organisations

The economic analysis focuses primarily on the use of money, allocation ofresources, distribution and consumption patterns, pricing decisions etc.



10

The following is a sample of questions that are usually asked in the EconomicAnalysis of an Organisations:

How are the resources allocated?

What is the market structure?(Is it competitive, monopolistic, oligopolistic? etc.)

What is the organisatioins market and its characteristics?

Are the products and services in the industry homogeneous ordifferentiated?

What is the nature of demand for organisation’s services?

What is the cost of making the product or service?

How are the various elements in the process of making it related? Arethere substantial economics of scale?

Economic analysis of organisations is particularly helpful for the first threeobjectives mentioned earlier. It helps streamlining the organisational efficiency,eliminating wastes, and gives insight while planning for growth, diversificationetc. However, when it comes to problems not all types of organisationalproblems can be answered by economic analysis.

Political Analysis

Political analysis deals with the tactics and strategies employed by theindividuals and groups in the organisation as well as the organisation itself inthe quest for power. The following is a sample of questions asked in theanalysis:

Who is most influential in the organisation? (individuals, groups, departments,etc.)

What is the power base of each of the categories of people in theorganisation (Is it positioned based, competency based, collectivity based likein unions, is it because of closeness to top executive or ruling party? Is itdue to the ability of the person to reward, hire and fire?)

How is the power distributed among individuals, groups and departments?

What strategies do people use in influencing or controlling each other?

How is the power used? How much for orgnisational purposes? How muchfor expanding one’s power base? etc.

What are ideologies of different groups? What implications do these havefor organisational functioning? Is there congruence with organisational goals?

How much is there a commitment for organisational goals?Is decentralisation functional or centralisation useful?

What kinds of control are needed to regulate the behaviour of people?

Like Economic analysis, political analysis of organisations is useful forunderstanding the organisation. Political analysis helps understanding manysofter and strategic dimensions of an organisation.

However, it has limitations in providing guidelines for the planning of growthand diversification of an organisation. It helps immensely in understandingorganisational dynamics. However, such an understanding may become one-sided unless it is enriched with other perspectives.

Sociological and Social Psychology based Analysis

Sociological and social psychological perspective focuses on the social behaviourof individuals and groups in the organisation. The formation of groups, habits,

11

norms and values of the organisation, the process of socialisation, conflicts,strikes, protest behaviour etc. issues are studied. The influence of the Societyon the organisation is also focused. The following is a sample of questions thatare normally asked with sociological and social psychological perspectives:

What is the nature of the work force and different categories ofemployees? Where do they come from and what personality, attitudes andvalues do they bring with them that influence organisational functioning?

What are the groups? What interests do they serve? What binds themtogether?

What are the formal and informal sources of socialisation? How are peoplebeing socialised? How is this affecting the organisation?

What structural forces ensure stability and order in the functioning of theorganisation? What causes disorder? What forces contribute to change?

What forces bind different groups/departments/units together?

What is the distribution of power and authority?

What are the attitudes of people to work? What are the attitudes of peopleto each other?

Is there alienation? What seems to contribute to it if it is there? How couldit be reduced?

How frequent are the strikes? What is the incedence of absenteeism,accidents, alcoholism, indiscipline etc. phenomena? What seems to cause it?

How do members relate to each other outside work hours? How do theirinteractions affect their work behaviour?

Sociological and social psychological analysis helps in understandingorganisations for research and study purposes, for planning growth andexpansion (especially location decisions, recruitment, structural decisions,departmentation) and for organisational problem solving.

Professional Management Perspective in Organisational Analysis

For a long time management was not accepted as a separate discipline. Withrise of management schools all over the world a new class of people withprofessional management background and skills have emerged. With theavailability of a large number of professionally trained managers andmanagement scientists there is a professional management perspective that isemerging. This perspective focuses on various management dimensions oforganisational life. Each branch of management can analyse a significant pay oforganisation’s functioning. The branches normally include Business Policy andStrategy Management, Production and Operations Management, PersonnelManagement, Marketing Finance and Accounting, Organisational Structures andDynamics and Managerial Economics. The following are the sample questionsthat could be asked with this perspective for organisational analysis:

What are the strengths, weaknesses, opportunities and threats facing theorganisations with respect to its business and its functioning?

What are the business goals? Is there a long term plan? What are thestrategic consideration the organisation has in planning its business activities?

Is the structure best suited for its goals?

What is the technology being used? Are better technologies available? Whatare the problems in changing technology?

How is the production planned? What is the capacity utilisation? How couldit be improved? How frequent are the break-downs? What is the level ofinventory? Are materials available on time? What is the rate of rejection ofproducts? What is the wastage? How could it be reduced?



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How are people recruited? How are they trained? What attracts people tothis organisation? What retains them? What reward and punishment systemexist? Are there unions? How many? What are their attitudes? Howsatisfied are the people with the work? What are personnel policies? Whatis unique to this organisation? How do they suit the technology and businessof this organisation?

What is the financial position of the organisation? What are the sources offinance? How are the surplus used? What are the investments made by theorganisation? What control systems exist?

How are the products priced? What are the marketing strategies beingused? How much of competition exists for the organisations products andservices? What new products are planned to be introduced? What is theexperience with the existing product? Has the organisation established itsname in the market?

Is the structure functional, divisional or matrix? Does it suit the organisationrequirements? What are the characteristics of employees? How are theinterpersonal relations/ What is the source of conflicts? Do people takeinitiative and show leadership qualities? How is team work andcollaboration?

Professional management perspective helps in a thorough analysis of anorganisation. However, most often such exhaustive case studies may not berequired of all functions. Normally organisation analysts are interested in somefunctions more than the others. A professional management perspective is themost useful perspective for overall improvements in organisation and fordemonstrable results in terms of output, cost reduction, profits an the like. Ithelps besides for problem solving in designing organisations for future growthand diversification.

OD or Applied Behavioural Science Perspective

While applied behavioural science is a part of the Professional ManagementPerspective, with the availability of specialised knowledge in the field and theextent of human issues occurring in organisational life has made it a distinctivenecessity. Most often when a managerial perspective is taken an analyst istempted to focus on dimensions like the materials and money as they are easyto deal with get concrete results. It is easy to talk of investment decisions,introduction of computers, streamlining information systems, introducingperformance budgeting, advertising, pricing decisions etc. There are so manysuch variables the human processes and up becoming one such set. In reality itis an important set because it is people who are behind these decision and whoneed to implement them. Fortunately a lot of technology and skills are availablefrom the applied behavioural science field. The OD perspective focuses on thehuman process dimensions of organisation’s functioning. These human processdimensins deal with the individual per se, the individual in relation to the rolehe is expected to perform, the team work, inter-team collaboration,organisational culture and health. The OD perspective primarily focuses onexamining the attitudes, norms, values, systems, processes etc. that exist in theorganisation.The question asked is “Are they facilitating the utilisation anddevelopment of human competence available individually or collectively in theorganisation? Is the organisational culture facilitating people to contribute theirbest to the organisation?” Some of the questions asked in this perspective areas follows:

What is the extent Openness, Collaboration, Trust, Autonomy, Pro-action,Authenticity, Confrontation characterising the organisations’ culture?

What is the profile of people who join the organisations? What values dothey have? What is their view of the human being?

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What is the level of organisational health as reflected in communications,conflicts, role clarity, job-satisfaction, work motivation, team work,participative decision-making, goal setting, discipline, management of mistakesetc.?

What is valued by most people in the organisation?Is it excellence, power,relationships, status, helping each othercontrol or what? In what order arethey valued?

How much of creativity is there and is encouraged? Do people takeinitiativeand risks? What processes encourage/prevent creativity andinitiative?

Are jobs defined clearly? What mechanisms are there to communicateexpectations and difficulties? What mechanisms exist to solve problems?

Do people experience a sense of growth?

What processes seem to generate organisational identity and ‘we feeling’?What processes create problems for team work?

What characterises various groups and their functioning?

The OD perspective is essentially useful for organisational problem solving andorganisational renewal. It is useful for every organisation to undertake periodicrenewal exercises so that they can examine various organisational processesand strengthen the functioning of an organisation.

8.7 METHODS OF ORGANISATIONAL ANALYSIS

Of the various perspectives presented so far the Professional Management andthe OD perspective encompass the Economic, Political and Sociological andSocial Psychological perspectives. These are also more modern and are beingmore frequently used. Among these two of the professional managementperspective is vast and covers the entire management field. Since the focus ofthis course is on Organisation Design and Development, the OD orthe AppliedBehavioural Sciene Perspective is more appropriate for discussion here. Hencein the subsequent part of this unit and subsequent unit more details arepresented relating to the organisation development.

There are many ways of analysing and diagnosing organisations and theirphenomena. The following are the most frequently used methods:

1) Questionnaires

2) Interviews

3) Observation

4) Analysis of records, circulars, appraisal reports and other organisational literature

5) Analysis of hard data of organisations and various units

6) Task forces and task groups

7) Problem identification/problem solving workshops

8) Seminars, symposia and training programme

9) Recording and examining critical incidents, events.

These methods are described in some detail in the subsequent units of thisblock. The purpose of the analysis is “Organisational Diagnosis”. Diagnosisgives the state of the organisation or one or more of its subsystems and pointsout the scope for improvements that could be made for achieving organisationaleffectiveness. Hence the methodologies presented in the subsequent sectionsare limited to this goal.



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8.8 PRACTICAL PERSPECTIVES ONORGANISATIONAL ANALYSIS

This involves a study of the entire organisation in terms of its objectives, itsresources the allocation and utilization of these resources for achievement of itsobjectives as well as its dynamic interaction trends with external environment.The philosophy for the entire organization can be developed in terms of thefollowing steps:

1) Analysis of Objectives: Analysis of organisation’s objectives provides aclear understanding of both short and long-term objectives as well as thepriorities that are accorded to various objectives. Specific goals andstrategies should be stated for various divisions, departments and sectionsof the organization as a means of achieving the long-term priorityobjectives. Through continuous review of the objectives and theirsubsequent modification it is positive to translate general objectives intoaction plans.

2) Resource Utilisation Analysis: Having analyzed the objectives, the secondstep involves evaluating the process of allocation of various human andphysical resources in the organization. Various efficiency indices can bederived to determine the adequacy of specific work flows, so that detailedexamination of the inputs and outputs of the total system is possible. Thefocus should be on the contribution that human resources make towardsthese indices.

3) Environmental Scanning: This involves analysis of the enterprise as asubsystem operating in a socio-cultural, economic, legal, political andcompetitive environment. This enables the organization to manage certainaspects of its environment and to accept others constraints which cannoteasily be handled. Yet strategies can be devised to control these.

4) Organization Climate Analysis: The climate of an organization is areflection of its employee’s attitudes towards various aspects of work,supervision, company procedures, goals and objectives and Productivity inthe organisation.

5) Work Practices: The practices adopted for execution of various activities indifferent functional areas. These practices are like norms, which arefollowed by all employees in order to maintain a uniformity in performingvarious tasks.

6) Technology: Technology is responsible for driving various OrganisationalProcesses. Technology converts raw materials into final Products andServices offered by the organisation.

Human Resources

Raw Materials

TechnologicalInputs Deliver articlesORGANISATION

Machines

Financial Resources

Figure 1: Organisational Analysis

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7) Other resources: Other resources are financial resources, businesspractices, Administrative Practices, management expertise informationresources, R & D etc.

8) Systems: Are overriding set of interacting elements that acquire inputs fromthe environment transforms then and discharges outputs to the externalenvironment.

The prevailing organisational climate, especially the attitude towards employeedevelopment, determines the Human Resource Policy. Lack of managementsupport for the objectives of a particular HR Strategy reduces or eliminates itspotential for serving the organization. Often, HR Practices must be supportedby other actions in the organisation such as job enrichment, change in style ofsupervision, etc. to bring about desired changes. Another importantconsideration, particularly in management development is an enterprise’s needsto be alive to the employee’s career development aspirations.


Need to undertake Organisational Analysis

Why do some Organisations perform very well despite many constraints andothers fail when apparently things are going very well and should not. It isimportant to know how an Organisation is doing at any point in time. Secondly,the environment being highly dynamic entities are in a state of continuouschange and transition. Third, any organisation would have numerousstakeholders in terms of owners, Board of Directors, Employees etc. They havetheir own expectations from the organization as to how it is doing.

Overall Approach

In analysing any organisation these are the following elements that need to bereviewed:

1) Mission & Vision: It is important to know whether there is a properMission / Vision, if not, it has to be developed. For developing CorporateVision & Mission, improvement of all employees is a must and a jointsharing and unanimity of understanding is a must.

2) Organisation structure: This describes how accountabilities, tasks and rolesare allocated, within the organisation. It is important because of the impactit can have on the way people perform their jobs and on the effectivenessof the organisation’s processes.

3) Processes: These are the mechanisms by which the organisation’s activitiesare carried out and they will usually determine how the organisation isstructured, although they may be tailored to suit the structure. They will alsoinfluence the kind of people employed.

4) Culture: Culture comprises of set of values, guiding beliefs understandingand ways of thinking shared by members of an organisation. It is importantto analyze the culture of an Organisation at regular intervals to get a feel ofthe Organisation’s health and to take corrective measures of things whichare going wrong.

5) Work Ethos: Ethos can be defined on the underlying spirit or character ofan Organisation and is made up of its beliefs, customs and practices. At thebase of ethos are core values. The relevant core values, which contributedirectly towards building a healthy organisation are :

OpennessConfrontationTrustAuthenticity



16

ProactionAutonomyCollaborationExperimenting

6) Work Practices

7) People

8) Technology

9) Other Resources

10) Systems

11) People: the central resource of any organisation is its people. Rawmaterial remains just that without their intervention. They in turn determinethe organisation’s structure and processes. How many times are thetheoretically most logical structures and processes changed to suit individuals?

While each of these three elements will need to be examined separately indepth, no analysis would be complete unless it reviewed all three and tookaccount of the interrelationship between them. They should all support theorganisation’s mission and strategy. (Figure 2)

Culture and Climate

The organization’s culture and climate will also have an impact on its efficiencyand effectiveness and, therefore, analyzing them is also an important part ofgaining a full understanding of the organization.

External Environment

Figure 2: Major elements of the organisation

Organisation Culture

The organisation’s culture is made up of the deeply held beliefs about the waythe organisation should operate it. It is organisation’s value system and willinfluence the way in which work is carried out and how employees behave.People who may be very able and efficient in their own right, but whonevertheless do not fit into the culture, for example because of the way theydress, will be unlikely to achieve long-term success in the organisation.

Organisation Climate

The climate is the prevalent atmosphere in the organisation, encompassing thefeelings and emotions of the people within it. It is their perception of what it islike to work there. As the employees’ feelings and attitudes will clearly have animpact on the way they carry out their work, they are an important part ofanalyzing the organisation.

MissionVision

CorporateStrategy

STRATEGY PROCESSES SYSTEMS PEOPLE TECHNOLOGY

17

Business Analysis

This business analysis section covers a number of different approaches toanalyzing the organisation in its entirely, not just the individual elements ofstructure, processes and people. The term ‘business’ in this context also coversthe public sector.

Swot Analysis

‘SWOT’ stands for Strengths, Weaknesses, Opportunities and Threats.

Strengths may be described as those positive aspects of the organizatioin likeits unique attributes like skills of employees, technology, work practice culture,management practices etc. which may lead to further opportunities and whichcan therefore, be built on. What are the company’s competitive advantages andunique profile.

Weaknesses are any deficiencies in the company’s skills and resources, workpractices technology levels performance management systems and style.

Opportunities are provided by external environment in terms of newpossibilities, which may provide advantage. These are likely to arise fromchanges in technology, markets, products, legislation and so on.

Threats are dangers or problems that might undermine the position of theorganisatioin, due to competition from other Organisations operating in theexternal environment, for example the introduction of a new product by acompetitor, changes to safety standards, changing fashions, or problems withsuppliers or customers.

Whereas strengths and weaknesses primarily concern the internal workings of theorganisation, opportunities and threats arise primarily from the external environment.

Organisation Analysis — Factors:

Overall Organisational Objectives and business adopted including themonitoring and review process;

The performance management system, performance measures and standardsused by the organisation to ensure desirable levels of efficiency andperformance. Balanced Score Card is one such mechanism;

The budgetary and financial control procedures in use;

Organization design and structure;

Staffing levels

Activity levels;

Overhead costs; and

Review of procedures and activities

Financial Analysis

One of the most important aspect of undertaking Organisational analysis of anyorganisation is analyzing its financial stability. Most of the modern enterprisesare dependent on long-term financial strength. Such analysis is usually carriedout by working out various financial ratios and ROI’s.

Statistical Analysis

There are many statistical analysis that can be undertaken to diagnoseorganizational health. Many are those which relate to productivity. However,there are also a number of less obvious measures that can be used todetermine how well the organization is performing.



18

These include the following:

1) Rate of Employee turnover: The number of employees expressed as apercentage leaving the organisation on account of various parameters.. Itwill vary between industries and will be affected by the current state of theeconomy. In a recession, when jobs are more difficult to find, the turnoverrate would be expected to be relatively low. The turnover rate of softwarecompanies and service industry is high whereas turnover rate in brick andmortar companies is relatively low.

It has been seen that during the harvest season, the workers in productionunits go to their native states for harvesting. During these monthsabsenteeism and lateness is high.

2) Grievances and disputes: It is perhaps self-evident that where a highnumber of disputes and grievances are raised by employees, there is likelyto be low morale, with specific grievances perhaps being symptoms of amore deep seated problem. It is as well to remember that only the tip ofwhat has been described as the ‘organisational iceberg’ is actually seen andthere is a vast array of attitudes, fears and beliefs hidden beneath the surface.

3) Employee attitudes: Employees’ attitude towards the work, and organisationis an indication of employee satisfaction and motivation. It is valuable toseek the views of employees about the organization, as it is important forthem to be committed to its objectives if they are going to work effectively.Employee satisfaction is a very valuable parameter.

Though attitude survey can be conducted by the HR department in-house,attitude surveys can be conducted by an external agency to get appropriatefeedback regarding adopting suitable measures to correct some of theexisting maladies.

Some of more valuable attitude surveys are those that seek to measureemployees’ perceptions of organizational climate and leadership style. Theirresults will help managers determine whether or not messages about theorganization’s overall mission and objectives have been understood and actedon. They will also be strong indications of any actual or potentialorganizational problems.

Organization Development (OD) Exercises / Interventions

Organizational development is a long term effort, led and supported by topmanagement, to improve an organisation’s visioning, empowerment, learning, andproblem-solving processes, through an ongoing, collaborative management oforganization culture with special emphasis on the culture of intact work teamsand other team configurations, utilizing the consultants, facilitator role and thetheory and technology of applied behavioural science, including action research.

Some of the main technique, or interventions, coming under the OD umbrellaare the following:

i) Role analysis

ii) TQM (Total Quality Management)

iii) Quality circles

iv) Assessment / development centers

v) Re-engineering

vi) Large-scale-systems change

vii) MBO (Management by Objectives)

viii) Team building

ix) T groups (also called encounter groups and sensitivity training)

x) Work re-design and job enrichment

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xi) Survey research and feedback

xii) Third party interventions

xiii) Quality of work life projects

xiv) Grid training

xv) Action research

Action research

Action research (Developed by Kurt Levin in 1947) is a core component oforganisation development and an important tool of organisational analysis.

It is a process of systematically collecting research date relating to a specificgoal, objective or need of the organisation, feeding the results back to thesources of the original data and planning further action based on discussion ofthe results obtained.

This may be regarded as an interactive process whereby the data is obtained,discussed and further refined before actions are jointly planned to meet theoriginal objectives of the review. The key feature of action research is that it isa process that is continually being applied and re-tested until the desired resultsare obtained.

Organisation Structure Analysis

There are a number of techniques that may be used to analyse the structure oforganisations. The fundamental aim of the analysis are to determine whether:

The existing structure is appropriate to the needs of the organisation;

The existing structure supports the mission and strategy;

It provides the most logical and cost-effective grouping of functions;

The structure maximizes the people strengths in the orgaisation.

Some of the main techniques for assessing these factors are given below.

Organisation design criteria

An organisation design criterion is a basic principle or characteristic of anorganisation, which will help it to achieve its strategic objectives and meet itscritical success factors.

To analyse a structure on this basis it is necessary:

to determine which criteria are of central importance to the organisation –for example, the desire to provide a strong, locally based customer supportservice might suggest a geographically based structure, whereas a need foran effective corporate approach and tight cost control might suggest a morecentralised structure:

to measure their impact on the previously identified critical success factors.

to weight these criteria both in terms of their current importance to theorganisation and also in terms of the impact they would be likely to have onorganisation strategy;

to rank these criteria and test them against different organisational types –examples of organisation design criteria are given below, and a completedrating worksheet (as used by Hay Management Consultants) is shownbelow:



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Table 1: Examples of organisation design criteria for a Global company

1. Maintain a healthy work environment and culture

2. Integrates all activities across board the Organisation to ensure conformity tocorporate strategy

3. The Organisational policies are employee friendly and induce motivation

4. Provides for rapid and effective decision-making at the point closest to thecustomer

5. Provides effective communications Channels in the company

6. Focus on result orientation

7. Ensures effective employee relations

8. Encourages the development of highly skilled managers/employees throughappropriate Training and Development Practices

9. Proactive response to market opportunities on a global scale being a globalplayer.

To conduct the Organisational analysis, the following steps may be taken:

1) List the criteria on which analysis is to be conducted

2) Rate criteria as currently perceived

3) Estimate the impact on startegy

4) Rate the impact on previously identified critical success factors (CSFs).

5) Calculate current rating + strategic impact + number of times it relates to a CSF.

6) Rank the criteria based on the total scores.

The overall issue to be considered in reviewing the organisation design criteriais what the organisation structure is to achieve. Once it is known whatdirection to take, it is much easier to decide on the appropriate route.

Job Analysis

Job analysis is an important part of organisational analysis. In particular, jobsshould be reviewed to determine any overlaps in tasks and accountabilities, bothvertically with subordinates or superiors and horizontally with colleagues acrossthe organization structure.

To be effective, an analysis of the kind described must:

Be supported by accurate and agreed job descriptions;

Have regard to previously identified strategic objectives and action steps;

Be analysed by teams which include those holding the key posts coveringthe accountabilities described, otherwise incorrect assumptions might bemade about where a particular accountability lies.

It should be noted that this kind of analysis can be extended beyond individualjobs to include particular organisational units and various kinds of activitiescarried out so that, in the final analysis, there is no misunderstanding aboutwho is accountable for what. The analysis explain above can be replicatedin all units and departments in the organisation in order to rule out anyduplication.

Process Analysis

While a review of organisation structure is an essential component of improvingthe effectiveness of an organisation, it is also vital to examine the process bywhich activities are carried out and managed. Many of these will cut acrossfunctional or departmental boundaries and it is important, therefore, to ensure

21

that there is effective management horizontally within the organisation. Thismay often be seen, for example, in the shape of project teams composed ofpeople from a range of disciplines brought together to achieve one specificobjective or programme. However, a classic organisation problem occurs whendifferent functions such as sales, marketing, production, and research anddevelopment all have completely different priorities, resulting in internal conflictand a less effective service to the customer (Table 2). Processes should bedesigned to ensure that they support corporate objectives and provide therequired quality and types of products and services.

Approaches for analyzing the organisation’s processes are considered below.

Business Process Re-engineering

This relatively new approach developed by Davenport and Hammer (1992) andChampy (1993) which is also called business process improvement or valuechain analysis, reviews the overall horizontal workflows and processes in theorganisation, not just to improve them but to fundamentally re-examine them.

The approach:

Examines the processes that are critical to the success of the organisation;

Determines those processes which are priorities in terms of giving thecompany competitive advantage;

Determines the types of change or new investment required to ensure themaximum efficiency and efectiveness of these processes;

Determines what changes to aspects of the company’s strategy andstructure may be necessary

Reviews managerial accountabilities and redefines jobs as required ensuringthat the processes can be optimized where possible.

Activity Profiling

Activity profiling is a methodology developed by Price Waterhouse Urwich toanalyse the relative contribution made by different activities to the achievementof organizational objectives. In these analysis essential activities and the costsof those activities, including manpower costs, resource usage, opportunity costsand so on, as well as any cash outlay, is compared and ratios produced. Fromthis information, it is possible to compare the cost of the activity with thecontribution that activity makes towards the achievement of core objectives.


Table 2: Responsibility and Accountability

Areas of ResponsibilityPosition

and Accountability Finance Operations HR Director Sales DirectorDirector Director (Marketing)

1. Developing business plan J J J Jfor the Organization

2. Develop incentive reward C C C Cstrategy

3. Devise Company Policy C J P J

4. Develop Performance C C P CManagement System

P = prime responsibility & accountability for resultsJ = Joint responsibility & accountability for resultsC = contributes to result but not directly accountable

An inter-accountability matrix (Hay)


22

Clearly there will be some activities, which are fundamental to the organisationand essential, whereas others may be discretionary. Information can begathered about these two types of activity and the relative contributionmeasured against the cost. Decisions can they by made about how resourcescould be allocated in the future.

Benchmarking

Benchmarking is a process of comparing the performance levels and associatedbusiness practices and processes of an organisation with others to enable thatorganisation to set performance targets of its own that are competitive withthose others. This can also include adopting, where possible, those workingmethods that will help in the achievement of these targets. The benchmarkingprocess is also used to compare performance and processes internally.

Activities

Figure 3: Benchmarking Activities

Relative contribution

A = very high cost, low contribution

B = Medium cost, low contribution

C = High cost, high contribution

D = Medium cost, high contribution

The main stages involved in carrying out a benchmarking exercise is as follows:

1) Identify the core performance issues to be addressed and the keyperformance indicators to be used for comparison purpose. These may be amixture of unmet customer needs, obvious performance gaps, the need togain a competitive advantage, problem areas etc.

2) Collect internal data, which may also reveal the need for improvements tointernal processes.

3) Identify external organisations to form the basis for comparison.

4) Obtain relevant data from comparative organisations, major improvementopportunities.

5) Compare and contrast this with own oragnisation data to identify majorimprovement opportunities.

6) Review the processes and procedures used by comparative organisations todetermine what improvements can be translated to own organisation.

7) Implement the new processes

i) Getting the data from competitors being sensitive

ii) Translate the data, gathered to one’s own organisation

iii) Possibility of dispute with the competitor

Very high

High

Medium

Low

A

B

C

D

Low Medium High Very high

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Zero-based budgeting

There has always been a tendency in large organisations to base the figures forthe current year’s budgets on what was spent in the previous year, with anallowance for inflation. The zero-based budgeting (ZBB) approach required thatevery activity with a separate budget head must first of all justify its existence,and then indicate what level of spending is required to meet likely needs.

ZBB works on a ‘bottom-up’ basis with individual budget holders having tojustify their budget projections and with each activity being ranked according topriority. The budget projections are then reviewed at different levels in theorganisation. Finally, top level decisions may be made about priorities andservice provision.

Work Measurement

The techniques of work measurement are well established, particularly in thecase of work study methodology for manual and craft jobs.In such jobs, andalso for routine clerical tasks, it is possible to measure relatively accurately thetime take to produce certain levels of output.

There are also a large number of jobs for which the techniques of workmeasurement are inappropriate. These include, for example, jobs where it is thequality of thinking rather than any tangible output that is the importantconsideration. This would apply to most professional and managerial jobs, wherethe measures have to be based more on customer satisfaction andcompetencies.

Effective Communication Processes

There would probably be little disagreement that effective communication isvital to organisational success and there is, therefore, a strong case for trying tomeasure the processes of communication. Although the organisation chart willshow the formal lines of communication, there are of course many informallinks and these may be the more important sources of information. Everyoneknows about the power of the grapevine.

Measuring communication in an organisation can be achieved using socio-gramswhich map the number of interactions occurring between different members ofa particular work group. In this way those who are central communication links,and those who are peripheral, can easily be identified. This in turn hasimplications for the organisation’s structure and the roles carried out by certainposts.

People Analysis

While reviews of organisations frequently concentrate on structure andprocesses, it is vital to review the organisation’s human resources as they willmake the structure and processes work. Efficient and well-motivated employeeswill overcome the deficiencies of poor structure and processes, while the beststructure and processes will not work without employees’ full co-operation.

Psychometric Tests and Assessment Centers

Two broad approaches which are increasingly being used are psychometrictests and assessment centres. Psychometric tests are structured questionnaires,presented in written form, or computer generated. They are aimed usually atassessing measures of ability, such as numerical reasoning, or capacities, suchas building and developing relationship, leadership, team building etc.Whereas tests are typically wholly objective and produce fairly hard numericaloutputs, assessment centres are based on observation of performance.



24

A number of tasks are undertaken either individually or in groups and observedby assessors who then classify the behaviour in relation to its strength on arange of dimensions of skills or competence.

Assessment centres are particularly powerful in determining fit to future rolesthat may not have been experienced before. The exercises undertaken aresimulations of such roles but do not require specific knowledge of them. Forinstance, an analytical planning exercise might be given to assess the person’scapability for dealing practically with numbers and making sound businessjudgments, but particular knowledge of the industry concerned will not berequired.

Assessment centres can also be classed as ‘development centres’. In these theemphasis is not so much on identifying suitability for a particular job but areasfor further growth and development.

Right sizing

There are a number of methodologies in existence designed to establish theoptimum number of employees required by an organisation. It is designed tohelp the organisation change the level of the resources allocated to a particularactivity, either upwards or downwards, to meet the requiements of markets,competition, or economic and other constraints.

Attitude Surveys

The use of employee attitude survey can be considerable value, particularly todetermine how the informal structure of the organisation works, to ascertain theclimate and culture of the organisation and to gain views about the prevalentmanagement style (which is part of the organization culture).

One of the more useful ways of classifying organisation culture is thatproposed by Harrison (1972) who describes the different types as follows:

1) Power Culture: in which there is a central power source which exercisesstrong control over the organisation. It is characterized by few rules andprocedures, little bureaucracy and by decisions being achieved more byinfluence than on purely logical grounds.

2) Role Culture: in which there are formal roles and procedures, with workbeing allocated logically according to the tasks to be undertaken. In thisculture, the position becomes more important than the personality of theindividual.

3) Task culture: in which most of the emphasis is on getting the job done andthe organisation is therefore, structured to bring together the appropriateresources and people to achieve results. The matrix organisation is a typicalexample of this kind of culture, which encourages team working.

4) Person culture: which exists mainly to serve the people within it?Examples are partnerships, social groups and some small consulting firms.

Analyzing the culture of the organisation is important for determining whether itis appropriate to the circumstances and whether the people within theorganisation subscribe to it.

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The 7S Framework

One of the more recent tolls for analyzing culture and climate was developedby Peters and Waterman and the McKinsey Company in the 1980s and isknown as the McKinsey 7S Framework. This comprises seven elements allbeginning with the letter ‘S’ which can be used as a basis for analyzing thatorganisation, particularly its climate, culture and organisational health. Theelements in question are:

Strategy;

Skills: the corporate strengths of the organisations;

Shared values: the guiding beliefs of the people in the organisation i.e. itsvalues and culture;

Staff: the people of the organisation;

Systems: the technical systems and procedures relating to accounting,personnel and the carrying out of the organisation’s jobs;

Style: the way things are done within the organisation, particularly in respectof management style;

Structures: the organisation chart and associated project teams, committeesand ad hoc working parties.

When the seven S’s are fitting together well the organisation should beoperating successfully but that where any of these are out of step withthe others, there are likely to be organisational problems that need to beaddressed.

8.9 SUMMARY

There are many different ways of analysing organisations. The variousapproaches, used with discretion, are valuable for assessing organisationaleffectiveness and for determining where improvements can be made. They are,therefore important elements in the design of organisations for achieving highmotivation and morale among employees.

In this unit we understood that organisational diagnosis is a method whichanalyses an organisation, its structures, subsystems and processes, in order toidentify their strengths and weaknesses and to improve the effectiveness of theorganisation, Perspectives which could be used for analysing an organisationand different methods by which an organisation could be analysed werediscussed.


1) Explain what is organisational analysis and organisational diagnosis. Why arethey necessary?

2) In order to analyse an organisation what should one identify in anorganisation?

3) What are the different perspectives of an organisation analysis? Discuss.

4) What are the different methods of an organisational analysis? Discuss.



26


P.N. Khandwala. (1977) The Design of Organisations, Harcourt BraceJovanovich Inc., New York.

Harry Levinson, (1972) Organisational Diagnosis, Harvard University Press,Cambridge, Mass.

Butt, HA and Palmer, D R (1985) Value for Money in the Public Sector-theDecision Maker’s Guide, Blackwell, Oxford.

CBI/Coopers & Lybrand (1993) Survey of Benchmarking in the UK –executive summary 1993.

Civil Service Department (1981) ‘A Chain of Command Review’ (unpublished).

Davenport, T (1992) Process Invitation: Re-engineering work throughInformation Technology, Harvard Business School Press, Cambridge, M.A.

French, W L and Bell, H B Jr., (1995) Organization Development –behavioural science interventions for organization improvement, 5th edn,Prentice-all, Englewood Cliffs, N).

Hammer, M and Champy, (1993) Re-engineering the Corporation: Amanifesto for business revolution, Harper Business, London.

Harrison, R (1972) ‘How to describe your organization’, Harvard BusinessReview, Sept-Oct.

Lewin. K (1947) ‘Frontiers in group dynamics’, Human Relations, 1(2), PP143-193.

McNair, C J and Liebfried, H J (1992) Benchmarking: A tool for continuousimprovement, Harper Collins, London.

Mumford, E (1996) ‘Business process re-engineering RIP’, PeopleManagement, 2 May, pp 22-29.

Peters, T J and Wateran R H (1982) In Search of excellence: Lessons fromAmerica’s best-run companies, Harper and Row, New York.

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Appendix 1

Organizational Analysis

A. GOVERNANCE

1. Board

a. Board devises overall policydirection and haldles boundarymanagement

b. Is accountability and credibility aBoard function and if so what isthe degree

c. What are the overall number ofBoard Members.

d. Are the Board Memberscommitted to safeguard theinterest of stakeholders.

e. Feedback of stakeholders reactthe Board members & action istaken on them

f. Board executes its role ofadvocate for the community.Does the Board contributetowards the social upliftment ofthe community?

2. Mission/goals

a. The Organization has devisedclearly articulated mission &goals

b. The employees are aware of themission. State of the company

c. Corporate strategies are devisedbased on company mission

d. Corporate strategies are clearlyunderstood and have clearlinkages to objectives

e. Action plans to achievecorporate strategies are workedout jointly by management &employees

3. Stakeholders

a. There is clear cut accountabilitytowards the key stakeholders

b. Stakeholders are given dueweightage and are treated likepartners

c. Feedback from stakeholders aregiven due weightage and is builtinto the strategic planningprocess.

d. Are stakeholders involved in theprocess of devising Mission &strategies.

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e. The top management follow thedictum of healthy corporategovernance.

4. Leadership

a. Senior management have a clearunderstanding of their respectiveroles and responsibilities asproviders of overall direction.

b. Leadership style of seniormanagement is participatory.

c. Senior management isaccountable to key stakeholders

d. Leadership qualities are visible inthe Managers.

B. MANAGEMENT PRACTICES

1. Organization Culture

a. Corporate polices have beendevised keeping in view theorganizational objectives

b. Corporate polices take intoaccount the resources,environment, nature of operationof the organization and humanresources.

c. Organization culture supports thestrategic vision of theorganization.

d. Culture is reflected in workethos & work practices.

e. Generally the employeesatisfaction level is good.

f. Systems are in place to ensureproper execution of jobs.

g. The policies & procedures arewell defined and clearunderstanding exists in theminds.

2. Strategic Planning

a. Inputs from external environmentin the form of feedback is takenfrom all stakeholders and is builtinto the strategic planningprocess.

b. There is appropriate sharing andjoint development of strategy bymanagement & employees.

c. Strategic intent is explicit &visible employees.

d. Strategic delivery of various planis achieved by total involvementof employees at all levels.

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contd...

contd...

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3. Business Development

a. Environment scanning is an ongoingprocess in the organization.

b. Market research exercise isconducted periodically.

c. Does the company utilize theservices of the consultants toconduct surveys in the industrysegment for providing informationon various indices.

d. Information regarding variousfinancial ratios is calculated.

e. Business plans are developedvarious industry trends.

f. Analytical tools like supply chain& value chain analysis is used toidentify competitive edge of thecompany.

4. Personnel

a. Human Resource Planningexercise is carried out to devisevarious HR plans.

b. Appropriate recruitment &section procedures are used forhiring the right kind of personnel.

c. Policy for intake of people frominternal & external sources hasbeen well devised and wellaccepted.

d. Job analysis exercise isconducted without fail

e. Clearcut job descriptions areavailable.

f. Employees clearly understandtheir individual roles.

g. Right-fit between the employeesand the jobs assigned is ensured

5. Administrative procedures

a. Administrative procedures andmanual exist

b. Administrative procedures areadhered to

c. Procedures and operatingmanuals are updated regularly

6. Audit Management

a. Systems are in place to minimizeorganizational malpractices

b. Regular audit of inventory isconducted

c. Annual external audit reports includea review of management practices

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contd...

contd...


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d. Recommendations onmanagement practices in annualexternal audit reports areimplemented.

7. Management InformationSystem

a. Systems exist to collect, analyzeand report data and information.

b. Trained personnel are in place tomanage information systems

c. Systems are used process,disseminate and ensure feedbackof information all sources.

d. The Human ResourceInformation System (HRIS) isplace.

e. Reports are generated throughMIS for admission management

8. Management Reporting

a. Management Reportingappropriate reports aregeneratedthrough ERP or SAP or thelikes.

b. Regular activity reports areprepared & viz. Project Reportetc. presented to management.

c. Various evaluation reports areprepared regulalry

d. There is practice of publishingand disseminating information onits operations.

e. Report formats are flexible,varied and respond tostakeholder informationrequirements. Reports generatedare customized and flexible foroptimum reporting

C. HUMAN RESOURCES

1. Human Resources Development

a. Human Resource Informationsystem (HRIS) is being practiced

b. Human resources developmentplanning is in place

c. Training & Development isbased on capacity, needs andstrategic objectives

d. Opportunities exist to integrateskills acquired in training into thework environment

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contd...

contd...

31

e. A Proper performancemanagement system exists. Jobappraisals are performance basedand equitable.

f. Upgradation/promotions areperformance based ad equitable

g. Personnel policies provide

2. Human resources management

a. Job analysis is carried out

b. Job descriptions are documentedand updated

c. Roles are clearly defined

d. The employees possess requisiteskills

e. Salaries are clearly structuredand competitive

f. Incentives/Rewards policy isdocumented and implemented

g. The company follows standardlabour legislation policy

h. Grievance redressal policy existsand is used when required.

i. Employee welfare policy is inplace

3. Work Organization

a. Departmental meetings are heldregulalry

b. Management decisions areimplemented regularly.

c. Team work is in vague

d. Information sharing is prevalentamong employees.

e. Employees are encouraged totake initiative and be self-motivated

4. Diversity

a. Employee diversity is valued andequitable benefits are provided.

0 1 2 3 4 5 6

0 1 2 3 4 5 6

0 1 2 3 4 5 6

0 1 2 3 4 5 6

0 1 2 3 4 5 6

0 1 2 3 4 5 6

0 1 2 3 4 5 6

0 1 2 3 4 5 6

0 1 2 3 4 5 6

0 1 2 3 4 5 6

0 1 2 3 4 5 6

0 1 2 3 4 5 6

0 1 2 3 4 5 6

0 1 2 3 4 5 6

0 1 2 3 4 5 6

0 1 2 3 4 5 6

0 1 2 3 4 5 6

0 1 2 3 4 5 6

0 1 2 3 4 5 6


contd...

contd...


32

D. FINANCIAL RESOURCES

1. Accounting

a. Financial procedures andreporting systems are in place.

b. Latest Account tools are usedfor generating reports forstakeholders.

2. Budgeting

a. Budgeting process is integratedinto annual implementation plans

b. Financial unit responsible for thepreparation, management andimplementation of he annualbudget exists.

c. Annual financial projections aremade

d. Annual budget is implemented

e. Budget is controlled on anongoing basis

0 1 2 3 4 5 6

0 1 2 3 4 5 6

0 1 2 3 4 5 6

0 1 2 3 4 5 6

0 1 2 3 4 5 6

0 1 2 3 4 5 6

0 1 2 3 4 5 6

contd...

33

UNIT 9 QUESTIONNAIRE AS ADIAGNOSTIC TOOL

Objectives


when to construct a questionnaire

how to construct a questionnaire

questionnaire as an important tool for analysing an organisation

Structure

9.1 Introduction

9.2 Dimensions Diagnosed through Questionnaires

9.3 Some Available Questionnaires

9.4 How to Construct Questionnaires

9.5 Administering and Using Questionnaire

9.6 Summary



Appendix 1: Organisational Climate Questionnaire

Appendix 2: HRD Climate Survey

Appendix 3: Designing and Conducting Organisational Surveys

Appendix 4: Instruments of Organisational Analysis

Appendix 5: Scanning Your Business Environment

9.1 INTRODUCTION

Questionnaire, Interviews, Workshops and Task-forces are the most frequentlyused methods of organisational diagnosis in India. They are used separately orin combinations. Of the four, Questionnaires are more commonly used as theycould be used with ease and by persons inside the organisation. In this sectionQuestionnaire method is described in some detail.

There are a number of fairly standardised Questionnaire for Organisationaldiagnosis. It is also easy to develop Questionnaire to suit each organisation’srequirements. A sample of standardised questionnaire are also described in thissection. Choice of a questionnaire depends on the purposes of diagnosis and theindications available from a preliminary diagnosis of the dimensions needing in-depth study. Normally before the decision to use a questionnaire the person orthe group, intending to use it should have identified the area of concern throughinterviews, complaints, observed symptoms or general opinions of interestexpressed by the top management etc.

9.2 DIMENSIONS DIAGNOSED THROUGHQUESTIONNAIRE

There are many dimensions that could be studied through questionnaire. Thefollowing is a list of these dimensions more frequently studied for diagnosticpurposes.


34

General Organisational Health

The general well being of an organisation could be measured throughQuestionnaire. The general organisational health is indicated by acomprehensive index obtained through the measurement of perceptions ofemployees of the organisation. The comprehensive index deals with thehealth of the organisation on all possible variables (psychological,sociological, political, behavioural, managerial, organisational etc.) that affectthe functioning of the organisation. These include the feelings of security,need-fulfilment, job satisfaction, scope for self-actualisation, extent ofhappiness with the organisation, power-distribution, working of groups,objectivity, favouritism, distortion of communications, trust, leadership, teamspirit, tension in the organisation, conflicts, prejudice, work-organisation,effectiveness of meetings, convenience of working hours and workatmosphere etc.

Organisational Culture

The commonly shared attitudes, values, beliefs, norms and behaviour ofemployees in the organisation constitutes its culture. Organisational climatevariables are similar to organisational health variabes. Organisational cultureis studied normally in a descriptive way whereas organisational health isstudied in an evaluative way. Organisational health variables indicatefuctional and dysfunctional aspects of the organisational proesses.

Motivational Climate

Organisations could be diagnosed in terms of the prevailing motives thatcharacterise the organisation’s function. Does concern for excellencecharacterise its culture or control? or relationships? or dependence? orexpert power? or helping each other? etc.

Role Oriented Variables

There are many “Role” related variables that influence the organisation’sfunctioning. These include Role Efficacy, Role Ambiguity, Role Overload,Role Erosion, Inter-role linkages and the like. Some of these variables areexplained later with illustrative examples of questionnaire.

HRD Climate

HRD climate questionnaire deal with the extent to which a developmentoriented climate or learning climate exists in an organisation. Openness,collaboration, trust, proaction, authenticity, confrontation, risk-taking etc. arenormally characterised as facilitating development culture. Performanceappraisals, training, feedback, counselling, job-rotation, group meetings, careerdevelopment plans etc. are considered as instruments to facilitate change.

Leadership and Supervisory Styles

The human resources management philosophy as believed and practiced bythe supervisory and managerial staff determines also to a large extent themotivation and morale of people and thereby influences the organisationalfunctioning. The general philosophy, beliefs, and behaviours can be measuredthrough questionnaires. The variables measured may include Theory XVersus Theory Y Orientation; or task-centred and people-centred supervision;or authoritarian versus participative management; or benevolent, critical anddevelopment styles, etc.

Job-Satisfaction, Work Motivation and Work Committment

With the decline of work ethics in some organisations, many diagnosticefforts are being focused on studies on job-satisfaction, work-motivation, job-involvement and the like. The variables measured give insights into theexisting patterns as well as sources giving rise to dysfunctional behaviours.Questionnaire to measure elimination, work attitudes also fall in this category.

35

Specific Variables

In addition to these general variables the diagnostic questionnaire may focuson specific variables depending on the need of the organisation. For example,if communication is perceived as an issue there could be questionnaire todeal with all aspects of it. If team work is perceived as a problem therecould be questionnaire developed to deal with. Thus any organisationalprocess or human processes in organisational life can be taken up fordiagnosis depending upon the preliminary investigations or need felt by theorganisation.

In the subsequent sections of this unit details are presented about some of thequestionnaire available.

9.3 SOME AVAILABLE (QUESTIONNAIRES)

Organisational Climate Questionnaire

A typical organisational climate diagnostic questionnaire is given in Appendix 1.This questionnaire has 60 items. Each item has 5 alternative responses. Therespondent is required to give his assessment of the organisational climate as itexists at the time of his answering it as well as the desired climate. The gapbetween the “actual” and “desired” indicate the dissatisfaction level or scopefor improvement. Smaller the gap more healthy the organisation is. Thisinstrument reproduced in full because it gives a fairly comprehensive coverageof all the organisational variables that could be considered under organisationalclimate or organisational health.

The best way to learn about the variables used in this Questionnaire is for thereader to answer that Questionnaire. After answering the Questionnaire find outthe gap between the actual and desired scores for each item by converting theratings into a 5 point scale.You can assign a score of 5 points to alternative E,4 to D, 3 to C, 2 to B, and 1 to A for positively worded items i.e. where A isleast desirable and E is most desirable. For the esteriked items assign a scoreof 5 to A, 4 to B, 3 to C, 2 to D and 1 to E. For each item find thedifference (ignore the sign while calculating difference). Add the differences oneach item and calculate the overall difference on all the 60 items. It will givethe overall index of dissatisfaction with organisational climate. There is no hardand fast rule about what can be considered as desirable or undesirable. A gapof 30 may be a tolerable gap as it may mean marginal variation between theactual and desired in 30 items or noticeable variation (about 2 points) on 15items. A difference score of 30 can be obtained in many ways.

Total organisational climate score can also be obtained by adding the scores(A=5, B=4, C=3, D=2, E=1 respectively for aesteriked items and A=1, B=2,C=3, D=4, and E=5 for other items) on the “actual” dimension. A maximumscore of 300 is possible. Scores above 240 (i.e. 60 % 4) indicates a healthyorganisational climate. Scores between 180 and 240 indicate a moderately goodorganisational climate with some scope for improvement. Scores below 180indicates substantial scope for improvement.

This questionnaire can be administered to a large sample of employees in anorganisation (at least 10% in large organisations employing several thousands ofpeople or for the entire population in smaller organisations employing only a fewhundreds). Item-wise scores can be tabulated. Those questions or items onwhich there are low scores and high degree of consensus (low variations) couldbe taken up for working out corrective mechanisms.

Questionnaire as aDiagnostic Tool


36

HRD Climate Questionnaire

With the recent emphasis on HRD, many organisations are focusing theirattention on HRD culture of their organisations. The Centre for HRD at XLRIJamshedpur have developed a simple diagnostic questionnaire to diagnose HRDclimate. This questionnaire is presented in Appendix 2 in this unit.

The HRD climate of the organisation is characterised as consisting of thefollowing tendencies on the part of the organisation:

A tendency at all levels starting from the top management to the lowestlevels to treat people as the most important resource.

A perception that developing the competencies of employees to the job ofevery manager/supervisor.

A belief that employees can change and acquire new competencies at anystage of life.

A tendency on the part of all employees be open (encouraging freeexpression of ideas, opinions and even feelings) trusting, encouragingexperimentation, collaborating, authentic and pro-active.

Team spirit.

Tendency to discourage stereo-types and favouritism.

Supportive personnel policies and HRD practices including performanceappraisals, job-rotation, training, reward administration, career planning etc.

This questionnaire consisting of 30 items can be modified to suit therequirements of any organisation intending to use it. The Centre for HRD atXLRI has data on a large number of organisations. These data are availablefor organisations interested in comparing themselves with others.

The questionnaire uses a 5 point scale. The overall HRD climate score can beobtained by adding the scores on all the 38 items. Scores between 152(38 % 4) and 190 (38 % 5) indicate a good HRD climate existing in theorganisation. Scores less than 152 but higher than 114 (38 % 3) indicate amoderate HRD climate with some scope for improvement and scores less than114 indicate poor HRD climate with substantial scope for improvement. Normsfor comparison purposes are available from published sources given at the endof this chapter (Rao and Pereira, 1985).

For diagnostic purposes the questionnaire should be administrated to arepresentative sample of employees and organisation wide scores should becomputed on each items. Items that show low scores indicate areas forintervention or corrective action. There are organisations that have changedtheir HRD policies and practices and improved their HRD culture after gettingto know their HRD climate diagnosis.

9.4 HOW TO CONSTRUCT QUESTIONNAIRES?

Ready made questionnaire have some limitations and some advantages. Oneadvantage is that they are normally standardised and data from otherorganisations (norms etc.) may be available for interpretation and comparisonpurposes. The main disadvatage is that they may not suit the needs of anorganisation seeking diagnosis. For example, most of the available questionnaireare developed in business settings and hence may be of limited value toeducational and such other organisations. Secondly an organisation may beinterested in having a look at a few specific aspects than studying everythingoutlined in the questionnaire.

In such cases it is useful to construct separate questionnaire exclusively for agiven organisation/situation. The following are some considerations that could bekept in mind while preparing the questionnaire.

37

Questionnaire for organisational diagnosis normally measure the perceptionsof employees or participants in an organisation. It is the aggregate of theseperceptions that indicate the organisational strengths and short-comings.

The employees/participants of an organisation sometimes are in a goodposition to provide dimensions/variables on which questionnaire can beframed. For example, to diagnose the organisational health of an agricultureuniversity a group of scientists of that university were assembled andrequested to make statements about what in their opinion is good and bad inthe university. All their statements were collected, edited and a questionnairewas made. Subsequently it was administered to all the scientists in thatuniversity. Thus interviews/group discussions/meetings/workshops help indeveloping questionnaire.

Another form of developing a questionnaire is to sample test anystandardised questionnaire on a group of respondents. The respondents couldbe asked to indicate variables/items that should be used for diagnosis.

In preparing a questionnaire, structured questionaire are more easy toanalyse data and for providing statistical information.

9.5 ADMINISTERING AND USING QUESTIONNAIRE

Since organisational diagnosis questionnaire measure perceptions of employees,and in giving their perceptions employees are giving sensitive data care shouldbe taken to prevent distortions in data collection. Employees may distort datadepending on their perceptions of those who collect data and the purposes forwhich data are being collected. The following points may be kept in mind forcollecting data.

When the respondent knows the purpose the quality of data he gives will bebetter. Hence it is important to explain the purpose (in the questionnaireitself or through other media).

If the respondent trusts the person(s) collecting data and subscribes to thepurposes for which data are being collected, the quality of information hesupplies may be better. Hence it is important to use consultants, teams,individuals or firms that are ‘known’ and trustworthy for organisational diagnosis.Partly such as trust can be built by proper use of data and taking actionon the basis of diagnosis. If an organisation or the top management keep ondiagnosing and take no action the employees may lose faith in such exercises.

If the respondents have any fear of identification they are not likely toexpress opinions freely. Hence it is useful to collect data without therespondent having to reveal his identity. Sometimes organisations may find itimportant to collect some basic information about the respondent like hisGrade, Educational Qualifications, years of service with the company,department, section etc. Such details are useful for a meaningful analysis ofthe diagnostic data. For example it is useful to know if organisational healthor work motivation or distortion of communications etc. are high in somedepartments than others. Similarly, it is useful to know if the organisation isperceived as healthy by the senior employees rather than juniors. Therefore,for such comparisons it is useful to collect some minimum backgroundinformation from the respondents. However, the designer of the questionnairehas to give sufficient thought before deciding on what information to collect.It is useful to test out the thoughts on some employees to ensure that nodata is obtained that distorts responses.

Another dimension that affects the quality of data is the length of thequestionnaire. It is useful to have questionnaire that could be completed by arespondent before fatigue sets in. Questionnaire that take more than an hourare normally perceived by respondents as fatigue setting. It is preferable tohave questionnaire that could be completed in less than an hour.



38

The administration of questionnaire becomes easy in groups than individually.Respondents could be gathered in small groups and administered thequestionnaire. It also provides an opportunity for those conducting thediagnostic study to explain in detail the purposes of the study.

Timing of administering the questionnaire is another factor that should bekept in mind. If questionnaire is administered immediately after a significantevent has occured in the organisation, to some extent the perceptions mayget distorted. It is useful to administer the questionnaires after their impactsettles down.

Use of diagnostic data obtained from questionnaire also require some skills. Aswill be explained in the subsequent units “Survey Feedback” is a frequentlyused OD intervention. The tabulated data when fed back to the respondents inan aggregate form and an opportunity is provided to discuss the data and theirimplications already the seeds get sown for the change process.

In analysing and presenting data it is useful to focus on every single item ofthe questionnaire rather than aggregate score. Total scores often conceal a lotthan reveal. Hence item-wise analysis is more useful. Even while analysingitem-wise responses, computing percentage or respondents giving extremeresponses on each item reveal more about that variable rather than mean scores.

Wherever qualitative responses are sought content analysis and categorisationof responses is necessary. The use of diagnostic information partly dependsupon the way it is presented. Hence attention should be paid to the analysisand presentation aspects even at the time of designing the questionnaire.

9.6 SUMMARY

Questionnaire is a very useful diagnostic tool. There are several questionnairesdeveloped by organisational scientists in our country that are useful fordiagnostic purposes. These questionnaires could be used with appropriatemodifications to suit the diagnostic needs of each organisation. It is advisable todevelop organisation specific questionnaire for diagnosing problems unique to theorganisation. Comparative data may be available if standardised questionnaireare used for general diagnosis purposes. Participative methods of developingquestionnaire enhance the quality of questionnaire through increasing theorganisational relevance of items. Survey feedback, maintaining organisationalhealth profiles, designing other interventions are some of the useful purposesserved by questionnaire. Care should be taken to ensure getting good qualitydata through proper administration (clarifying purposes, maintaining anonymity ofrespondents, administering in groups etc.) of questionnaire.


1) What are the dimensions which could be diagnosed through Questionnaire?

2) How do you construct a Questionnaire? Discuss this with reference to yourOrganisation?

3) How is Questionnaire an important tool for Organisational diagnosis?

9.8 FURTHER READING

D.A. Nadler, Feedback and Organisation Development: Using Data-BasedMethods. Addison Wesley Publishing Company, Inc. 1977

39

Appendix I

ORGANISATIONAL CLIMATE QUESTIONNAIRE

Sixty statements are given below about organisations. With each statement aregiven 5 alternatives. Read each statement and select one of the alternativeswhich describes most accurately your organisation. Write down the letter ofthat alternative (a, b, c, d, or e) under A (i.e. actual). Then choose analternative which in your opinion is desirable for your organisation. Write downthe letter of the alternative under D (i.e., desirable). Against each statementcomplete both A and D columns.

Actual Desired

1) How often do you feel that an employee’scareer is harmed in the Organisation?

A. Almost always ...... ......

B. Usually ...... ......

C. Sometimes ...... ......

D. Rarely ...... ......

E. Almost never ...... ......

2) How are the targets set in this organisation?

A. Orders are issued with noopportunity to raise questionsor give comments. ...... ......

B. Orders are issued and explainedand then an opportunity is givento ask questions. ...... ......

C. Orders are drawn up, but arediscussed with subordinatesand sometimes modified beforebeing used. ...... ......

D. Specific alternative objectivesare drawn up by supervisors andsubordinates are asked to discussand choose the one they prefer. ...... ......

E. Problems are presented to thosepersons who are involved andobjectives are then set up by thesubordinates and the supervisorsjointly by group participationand discussions. ...... ......

3) “Serious anomaly does not exist in the way benefitsare awarded to persons in the organisation”. To whatextent do you agree with the statement?

A. Strongly disagree ...... ......

B. Disagree ...... ......

C. Neither agree nor disagree ...... ......

D. Agree ...... ......

E. Strongly agree ...... ......



40

Actual Desired

4) For important decisions to be taken regarding any work,the tendency here is to pass the files on to somebodyelse for making the decisions. How often does ithappen here?


B. Usually ...... ......

C. Sometimes ...... ......

D. Rarely ...... ......


5) To what extent do the superiors and the knowledgeablecolleagues take pains to help and employee who wantsto learn more about his job?

A. To a great extent ...... ......

B. To a considerable extent ...... ......

C. To some extent ...... ......

D. To a little extent ...... ......

E. Not at all ...... ......

6) Attempts to do things in better ways are encouragedin this organisation. How often does it happen here?

A. Almost never ...... ......

B. Rarely ...... ......

C. Sometimes ...... ......

D. Usually ...... ......

E. Almost always ...... ......

7) Do people here get an opportunity to develop theirskills further to do their jobs?

A. Almost all the people ...... ......

B. Most of the people ...... ......

C. Some of the people ...... ......

D. A few people ...... ......

E. Almost none ...... ......

8) How often do the employees here try to do thingsbetter than what they have done last time


B. Rarely ...... ......

C. Sometimes ...... ......

D. Usually ...... ......


41

Actual Desired

9) How much do you agree with the statement that thisorganisation is better than other similar organisationsin the country to work in?

A. Strongly agree ...... ......

B. Agree ...... ......


D. Disagree ...... ......

E. Strongly disagree ...... ......

10) How often are your ideas for change given a goodhearing?

A. Never ...... ......

B. Sometimes ...... ......

C. Often ...... ......

D. Almost always ...... ......

E. Always ...... ......

11) Is it true that remaining busy is not enough in thisorganisation? One has to show results?

A. Yes, it is true here toa very great extent ...... ......

B. Yes, it is true hereto a great extent ...... ......

C. Well, it is true toa negligible extent ...... ......

D. No, it is not quite true ...... ......

E. No, it is not true at all ...... ......

12) To what extent do you agree that quite often asubordinate here has to attend to orders issuedby more than one person at a time.


B. Disagree ...... ......


D. Agree ...... ......


13) To what extent do you think that when decisionsare being made about certain work that you areto do, you are asked for your ideas?


B. Rarely ...... ......

C. Sometimes ...... ......

D. Usually ...... ......




42

Actual Desired

14) Somebody says, “There is so much work to dohere every day that I have to do it somehow,and I don’t have the time to think about how thequality of the work can be improved.” How muchwoud you agree with the statement?


B. Disagree ...... ......


D. Agree ...... ......


15) To what extent do you receive correct informationabout your work, duties etc.?

A. Not at all ...... ......

B. To a very little extent ...... ......


D. To a considerabe extent ...... ......

E. To a very great extent ...... ......

16) “There is a general feeling here thatgrievances of the employees are handledproperly.” To what extent do you agreewith this statement?


B. Agree ...... ......


D. Disagree ...... ......


17) Do you agree that almost everyone hereknows who is working under whom inthis organisation?


B. Disagree ...... ......


D. Agree ...... ......


18) To what extent do people in your departmentencourage one another in work?

A. Not at all ...... ......

B. To a little extent ...... ......


D. To a considerable extent ...... ......


43

Actual Desired

19) How frequently do you think it is true thatin this organisation it is easier to deal withthose things that have a precedence?

A. No, it is not true in any case ...... ......

B. Yes, in some cases ...... ......

C. Yes, in many cases ...... ......

D. Yes, in most of the cases ...... ......

E. Yes, in almost all the cases ...... ......

20) Is the organisation receptive to new ideas?

A. It is never receptive ...... ......

B. It is sometimes receptive ...... ......

C. It is often receptive ...... ......

D. Almost always receptive ...... ......

E. Always receptive ...... ......

21) “The general feeling here is that people do notget fair hearing from those who are higher up.”How much do you agree with it?


B. Agree ...... ......


D. Disagree ...... ......


22) How adequate is the amount of informationyou get about what is going on in other departmentsand units of this organisation?

A. Very inadequate ...... ......

B. Inadequate ...... ......

C. Neither inadequate nor adequate ...... ......

D. Adequate ...... ......

E. Very adequate ...... ......

23) To what extent do you feel that the employees hereare allowed to make decisions to solve their problemswithout checking them with their superiors at eachstage of the work?

A. To a very great extent ...... ......

B. Toa great extent ...... ......



E. Not at all ...... ......



44

Actual Desired

24) Is there a general feeling amongst the employeesof your level that anybody can be removed fromhis job at any time?

A. Almost all the employees feel so ...... ......

B. Most of the employees feel so ...... ......

C. Some of the employees feel so ...... ......

D. A few employees feel so ...... ......

E. None of the employees feel so ...... ......

25) How often are the rewards (such as raise insalary and promotions) given strictly on the basisof valid reasons?


B. Usually ...... ......

C. Sometimes ...... ......

D. Rarely ...... ......


26) “In order to stay here, one just can’t performwork somehow: work has to be well done.”To what extent do you agree with it?


B. Agree ...... ......


D. Disagree ...... ......


27) To what extent are there facilities and opportunitiesfor individual creative work in this organisation?

A. Not at all ...... ......

B. To a little extent ...... ......




28) In your observations, how often do the employeesin this organisation seem to be bored withtheir work?

A. On all occasions ...... ......

B. On most occasions ...... ......

C. On some occasions ...... ......

D. On a very few occasions ...... ......

E. Not at all ...... ......

45

Actual Desired

29) “The nature of things that an employee is supposedto do in this organisation are so varied that it islogically difficult to put them together.” How muchdo you agree with this statement?


B. Agree ...... ......


D. Disagree ...... ......


30) To what extent are people in the higher levels ware ofthe problems of lower levels in this organisation?A. Not at all ...... ......





31) How often do you have advance informationof any changes which are planned?


B. Usually ...... ......

C. Sometimes ...... ......

D. Rarely ...... ......


32) To what extent is the information passed fromone person to another in this organisation distortedor deliberately made inaccurate?

A. To a large extent ...... ......

B. To a considerable extent ...... ......



E. Not at all ...... ......

33) Are discussions at meetings in this organisation freeand open?

A. No, they are very guarded and defensive ...... ......

B. Quite guarded and defensive ...... ......

C. Slightly defensive ...... ......

D. Quite free and open ...... ......

E. Very free and open ...... ......

34) One cannot simply go ahead and do a thing hereunless one has discussed it with one’s superiorsbefore. How often does it happen here?

A. Yes, it is almost always the case here ...... ......

B. Yes, it is usually the case here ...... ......

C. Yes, it is sometimes the case here ...... ......

D. No, it is rarely the case here ...... ......

E. No, it is almost never the case here ...... ......



46

Actual Desired

35) If someone of your colleagues does his job in amore improved way than it is usually done,does he get proper recogntion for it?


B. Rarely ...... ......

C. Sometimes ...... ......

D. Usually ...... ......


36) Which of the following best describes the mannerin which problems between depatments aregenerally resolved?

A. The problems are worked outat the level, where they appeared,through mutual effort and understanding ...... ......

B. Very few of them feel happy toleave this organisation ...... ......

C. Some of them feel happy to leavethis organisation ...... ......

E. All of them feel happy to leavethis organisation ...... ......

37) How much do you think the top management ofthis organisation is aware of the working conditionof its employees?

A. Not at all aware ...... ......

B. Very little aware ...... ......

C. Somewhat aware ...... ......

D. Much aware ...... ......

E. Very much aware ...... ......

38) How often are the employees in this organisationhelpful to each other?


B. Rarely ...... ......

C. Sometimes ...... ......

D. Usually ...... ......


39) How much do you think your organisation hasinterest in the welfare of the employees?

A. They are not at all really interested ...... ......

B. They are not very much interested ...... ......

C. Only in certain ways they are interested ...... ......

D. They are somewhat interested ...... ......

E. They are very much interested ...... ......

47

Actual Desired

40) In some places, anybody can go to anybody else todiscuss any problem he faces. In your opinion, howoften does it happen here?


B. Rarely ...... ......

C. Sometimes ...... ......

D. Usually ...... ......


41) Do you agree that in this organisation thecapabilities of its employees are fullyutilised


B. Agree ...... ......


D. Disagree ...... ......


42) How often do you think the professionaljealousies obstruct the performance of dutiesin this organisation?


B. Usually ...... ......

C. Sometimes ...... ......

D. Rarely ...... ......


43) Do the employees here work with a team spirit?

A. Team spirit does not exists at all ...... ......

B. Team spirit exists in a few members ...... ......

C. Team spirit exists in quitea few members ...... ......

D. Team spirit exists in many members ...... ......

E. Team spirit exists in almostall the members ...... ......

44) Are there things around your working environment(people, policies, conditions) that discourage youfrom working hard?

A. Yes, practically everythingaround here discourages me fromworking hard ...... ......

B. Yes, a great many things aroundhere discourage me from working hard;only a few do not discourage me ...... ......

C. About as many things discourageme as encourage me to work hard ...... ......

D. No, most things around hereencourage me to work hard ...... ......

E. No, practically everything aroundhere encourages me to work hard. ...... ......



48

Actual Desired

45) Considering the busy schedules and workloadhere, the employees seldom find time to sharetheir concerns with each other. How muchdo you agree with it?


B. Agree ...... ......


D. Disagree ...... ......


46) How often do superiors invite their subordinatesfor an informal discussion?


B. Rarely ...... ......

C. Sometimes ...... ......

D. Usually ...... ......


47) How much influence do you think your colleagueshave in deciding what should be done in thisorganisation?

A. Very much ...... ......

B. Much ...... ......

C. Some ...... ......

D. Little ...... ......

E. Not at all ...... ......

48) To what extent do you have confidence in thepeople you work with?

A. Not at all ...... ......


C. To a some extent ...... ......


E. To a great extent ...... ......

49) How often do the employees here trustone another?


B. Usually ...... ......

C. Sometimes ...... ......

D. Rarely ...... ......


50) Are suggestions often solicited fromemployees here?

A. Yes, from senior officers only ...... ......

B. Yes, from some officers only ...... ......

C. Yes, from all the officers only ...... ......

D. Yes, from all the employeesexcept Class IV ...... ......

E. Yes, from all the employees ...... ......

49

Actual Desired

51) How often does a person in this organisationreceive credit and appreciation if he findsout a different way of doing things whichnobody has ever done before?


B. Usually ...... ......

C. Sometimes ...... ......

D. Rarely ...... ......


52) How much is your job important in thisorganisation?

A. Very much ...... ......

B. Much ...... ......

C. Somewhat ...... ......

D. Little ...... ......

E. Not at all ...... ......

53) This organisation facilitates the self-improvementof its employees. Do you agree with this statement?


B. Disagree ...... ......


D. Agree ...... ......


54) How often is a conscientious attempt made toconsider the views of people concerned?


B. Rarely ...... ......

C. Sometimes ...... ......

D. Usually ...... ......


Source: Developed by Somnath Chattopadhyay. Reproduced with permission fromUdai Pareek., T.V. Rao and D.M. Pestonjee; Behaviour Processes inOrganisations, New Delhi: Oxford & IBH, 1981.



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Appendix II

HRD CLIMATE SURVEY

Organisation ...................

Designation ................... Date.............

Any organisation that would like to be dynamic and growth oriented has to payattention to the development of its human resources. People must becontinuously helped to acquire capabilities for effective performance of newroles/functions/tasks that may arise in the process of organisational growth andchange in the environment. Thus HRD becomes crucial for organisationaldynamism and growth. In the recent past, mechanisms like performanceappraisal, counselling, OD, potential appraisal, job enrichment have beenintroduced in various organisations. A minimal positive developmental climate isessential for the success of these programmes. This survey is to find out theextent to which such developmental climate exists in your organisation.

We propose to combine the responses received from several employees of yourorganisational and prepare profiles of developmental climate for your organisation.As these profiles may form the basis of your organisation taking further stepwith regard to its HRD practices, we would appreciate your frank responses.

A number of statements are given below describing the HRD climate of anorganisation. Please give your assessment of the HRD climate in yourorganisation by rating your organisation on each statement using the 5 pointscale. A rating of 5 indicates that the statement is almost always true with yourorganisation; a rating of 4 indicates that the statement is mostly true; a rating of3 indicates that the statement is sometimes true; a rating of 2 indicates that thestatement is rarely true about your organisation. Give your assessment byencircling the appropriate number.

5 = Almost always true 4 = Mostly true 3 = Sometimes true2 = Rarely true 1 = Not at all true

1. The top management of this organisation goes out of its way tomake sure that employees enjoy their work 5 4 3 2 1

2. The top management believes that human resources are anextremely important resource and that they have to betreated more humanly. 5 4 3 2 1

3. Development of the subordinates is seen as an importantpart of their job by the managers/officers here. 5 4 3 2 1

4. The personnel policies in this organisation facilitateemployee development. 5 4 3 2 1

5. The top management is willing to invest a considerable partof their time and other resources to ensure the developmentof employees. 5 4 3 2 1

6. Senior officers/executives in this organisation take activeinterest in their juniors and help them learn their job. 5 4 3 2 1

7. People lacking competence in doing their jobs are helpedto acquire competence rather than being left unattended. 5 4 3 2 1

8. Managers in this organisation believe that employee behaviourcan be changed and people can be developed at any stageof their life. 5 4 3 2 1

9. People in this organisation are helpful to each other. 5 4 3 2 1

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10. Employees in this organisation are very informal and donot hesitate to discuss their personal problems with theirsupervisors. 5 4 3 2 1

11. The psychological climate in this organisation is veryconducive to any employee interested in developinghimself by acquiring new knowledge and skills. 5 4 3 2 1

12. Seniors guide their juniors and prepare them for futureresponsibilities/roles they are likely to take up. 5 4 3 2 1

13. The top management of this organisation makes effortsto identify and utilise the potential of the employees 5 4 3 2 1

14. Promotion decisions are based on the suitability of thepromotee rather than on favouritism. 5 4 3 2 1

15. There are mechanisms in this organisation to reward anygood work done or any contribution made by employees. 5 4 3 2 1

16. When an employee does good work his supervisingofficers take special care to appreciate it. 5 4 3 2 1

17. Performance appraisal reports in our organisation are basedon objective assessment and adequate information and noton favouritism. 5 4 3 2 1

18. People in this organisation do not have any fixed mentalimpressions about each other 5 4 3 2 1

19. Employees are encouraged to experiment with new methodsand try out creative ideas. 5 4 3 2 1

20. When any employee makes a mistake his supervisors treatit with understanding and help him to learn from such mistakesrather than punishing him or discouraging him. 5 4 3 2 1

21. Weaknesses of employees are communicated to them ina non-threatening way. 5 4 3 2 1

22. When behaviour feedback is given to employees they takeit seriously and use it for development 5 4 3 2 1

23. Employees in this organisation take pains to find out theirstrengths and weaknesses from their supervising officersor colleagues. 5 4 3 2 1

24. When employees are sponsored for training, they take itseriously and try to learn from the programmes they attend 5 4 3 2 1

25. Employees returning from training programmes are givenopportunities to try out what they have learnt. 5 4 3 2 1

26. Employees are sponsored for training programmes on thebasis of genuine training needs. 5 4 3 2 1

27. People trust each other in this organisation. 5 4 3 2 1

28. Employees are not afraid to express or discuss their feelingswith their superiors. 5 4 3 2 1

29. Employees are not afraid to express or discuss their feelingswith their subordinates. 5 4 3 2 1

30. Employees are encouraged to take initiative and do thingson their own without having to wait for instructions fromsupervisors. 5 4 3 2 1

31. Delegation of authority to encourage juniors to develophandling higher responsibilities is quite common in thisorganisation. 5 4 3 2 1



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32. When seniors delegate authority to juniors, the juniors useit as an opportunity for development. 5 4 3 2 1

33. Team spirit is of high order in this organisation. 5 4 3 2 1

34. When problems arise people discuss these problems openlyand try to solve them rather than keep accusing each otherbehind the back. 5 4 3 2 1

35. Career opportunities are pointed out to juniors by seniorofficers in the organisation. 5 4 3 2 1

36. The organisation’s future plans are made known to themanagerial staff to help them develop their juniors andprepare them for future. 5 4 3 2 1

37. This organisation ensures employee welfare to such anextent that the employees can save a lot of their mentalenergy for work purposes. 5 4 3 2 1

38. Job-rotation in this organisation facilitates employeedevelopment. 5 4 3 2 1

Source : Rao, T.V. and Pereira, D.F. (Eds). Recent Experiences in HumanResource Development. New Delhi: Oxford & IBH, 1985.

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Appendix III

DESIGNING & CONDUCTING ORGANISATIONAL SURVEYS

Most commonly used instruments are:

i. Attitude Survey

ii. Opinion surveys

Such instruments are used in-group and Organisational settings to measurebehavioural dynamics, morale, organisational climate, Leadership and a plethoraof other variables that relate to human behaviour. In order to conduct a surveypertaining to Organisational Analysis, the following guidelines should be followed:

1. Define the Objective: The purpose of conducting a survey should be thestarting point. What is that you want to analyze:

Organisational Structure & Design?

Organisational Climate?

Organisational Ethos?

Organisational Culture?

Organisational Effectiveness?

Organisational Change?

or

Organisational People Issues?

The reasons of conducting the survey should be specific & preferablyshould be important. If there are a number of things that one is attemptingto get feedback on, the picture becomes hazy and the respondents are likelyto abandon the exercise.

2. Identify the Population to be Studied: In order to identify and analyzethe organizational issues to be studies it is important, to administer thesurvey instrument to major share of population thus making the sample sizequite big or adequately representative of the entire population in theOrganisation.

A practical method of doing this is to look at the size/strength ofemployees at each level and work out percentages at each level in termsof number of employees to whom the questionnaire can be administered.For example, let us say an Organisation has 400 employees, having thelevel wise distribution as under :

C & MD - 1 } Senior

Board Level Directors - 3 } Management

Executive Directors - 6 }

General Managers - 20 }

DGM - 40 } Middle

Managers - 80 } Management

Asst. Managers - 120 } Junior

Executives - 240 } Management

Staff - 60 } Staff &

Workers - 30 } Workers



54

3. Select the survey sample – Considering the above distribution, we have 4district cadres, where we can administer questionnaire. We can administerquestionnaire as below:

The sample selected for this purpose should be randomly selected andshould also represent the populated.

Senior Management Cadre - 20%

Middle Management Cadre - 25%

Junior Management Cadre - 25%

Staff & Workers - 25%

Again as mentioned above, the question should be randomly administeredand if the above% is maintained, it would be a fairly representative samplesize.

4. Developing the Instrument – Developing the instrument is fairly tardyexercise requiring a high degree of expertise framing the right kind ofquestions to elicit the desired information requires a number of attributes likeskills in writing, understanding of the Organisational Processes, understandingof Systems, and People Issues & behavioural dimensions. Four importantdimensions are to be tackled viz:

i. The covering letter enclosing the Questionnaire

ii. The design of questionnaire

iii. The scales

iv. The codes

i. The covering letter should be written in a simple effective mannercovering (a) What is the purpose of conducting the survey? (b) What isthe benefit of the Survey to the respondent and to the Organisations(considering the fact that organisational quality runs high in most of therespondents), (c) Maintaining the anonymity of the respondent Personaltouch in these matters is of great significance conveying a feeling thattitle RESPONDENT ‘S’ “opinion” is of great value so a personal letterduly signed by the person conducting the survey would do wonders. Dueto the personal touch, a better response can be expected.

ii. The Content

The heart of the Survey instrument, the questionnaire has to be sculptedwith care being the most important while designing the questionnaire, theobjective of the survey has to be kept in mind.

A few rules have to be followed for writing the questionnaire:

1) One must address only one issue through each question. For example,questions like “Are Employees motivated and deliver high performance”.Here two aspects are coming into play i.e. (i) Motivation level ofEmployees and (ii) High level of Performance.

Another example – “How is the work culture and what level of employeesatisfaction does it generate?” Here again there are two questionsembedded in one question i.e. (i) Nature of Work Culture and (ii)Employee Satisfaction level.

2) Second Common error while constructing the questionnaire is to mix thescale or rating or frequency viz putting a question “Are employees highlyMotivated” rather than a question “How Motivated employees are?”

3) Yes/No – Avoid ‘Agree’ or ‘Disagree’ or ‘right’ or ‘wrong’ type ofquestionnaire as they don’t provide any value addition question like ‘Do youagree that Sales Personnel should try to achieve higher targets or “Theethical behaviour of the top management is responsible for setting highmoral standards for the entire organisation”.

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4) Psychological Domain of the respondent should not be treated withdisdain. In other words through the questionnaire the respondents should notget threat perception. For example, “Do you agree that non performingemployees should be displeased with?” or “Would you agree that Highlyaggressive and demanding boss creates a demoralizing effect on thesubordinates and should be removed?”

5) The Scales: Most commonly used scales in the questionnaire are LikertScales. These have normally 5 or 7 multiple choice alternatives viz

Strongly agree, Agree, No Comment,(1) (2) (3)

Don’t agree, Don’t Agree at all or(4) (5)

To a great extent, To moderate extent, Average(1) (2) (3)

Less than Average, Not at all or(4) (5)

Very important, Important No Comments(1) (2) (3)

Not Important Totally Unimportant or(4) (5)

Highly Motivated Moderately Motivated(1) (2)

Generally motivated Non Committal(3) (4)

Generally not motivated De motivated(5) (6)

Highly Demotivated(7)

Generally a 5 or 7 multiple choice scales is just right through at times. Peoplemay adopt 9 point or 3 Point Scales but these either become unmanageable orbecome very inadequate.

6) The Code: Providing a coding mechanism is important for data analysis.Code will decide what weightage should be attached to each scale point i.e.if respondent pegs a question at 3 in the 5 Point likert scale, what shouldbe weightage given to the question etc.

7) Pilot Test the Instrument/Questionnaire: Pilot testing or pre-testing thequestionnaire is important to see what kind of response it is evoking fromthe respondents. Sometimes even the respondent (s) may give either afavourable or unfavourable feedback on the design aspect of questionnaireto the extent that the instrument may not be representative of the practicesbeing followed in the Organisation and may require minor changes ormodifications.

At times the questionnaire designed may fail to arouse interest in therespondents which may make it in fructuous in achieving the designed results.So pilot testing is likely to expose the shortcomings in the instrument which canbe corrected before finally administering it to the Population.

8) Do not make a very short or very lengthy questionnaire. Very shortquestionnaire 5 to 8 comprising of only Questions is too short to elicit anyworthwhile information. Similarly questionnaire of more than 25-30 questionsbecomes very lengthy unless of course if the questionnaire has a researchbias.

The Questions has to be applicable across both situations

a) A large number of post graduate students of Engineering orManagement disciplines undertake project work. The questionnaire


56

developed by them is very short – Maximum 10 questions and it hasbeen noted that these fail to address even the vital issues and onlytend to be very superficial.

b) I remember receiving a questionnaire from Head, HR of a BankingInstitution. The questionnaire had almost 150+ questions. Thoughhighly enthused seeing the vast content qualitatively and otherwise.Despite my level best efforts I never ended up filling the entirequestionnaire.

9) Final Draft: After making necessary corrections, taking into accountthe feedback thrown up by pilot pre-testing the final draft of thequestionnaire should be made ready.

10) Administering Questionnaire: As already indicated earlier, the finalversion of questionnaire should be administered to the target populationthrough a Personal letter, duly signed. In the letter the importance of thequestionnaire as also the objective of the study, where and how the finaloutcome of the study is going to be used, who are going to benefit etcshould be in built in order to get really considered views & opinion fromthe respondents.

11) Follow up: Many a times the respondents need a lot of follow upbefore they really respond. The researcher must take pains to ensurethat respondents spend the desirable time in comparing thequestionnaire even if the researcher has to sit with them.

12) Code the Responses: Once the responses start coming in, thecodification of responses from each respondent must be completed. Thisis a very important aspect and unless lots of pains are taken inexecuting this step properly, the results may miss the expected markeither totally or partially.

13) Tabulation of Results: Tabulation of results should be done in theformat which people can understand and derive interpretation from theinformation generated.

The modus operandi would involve tabulating everything to start with. Manyresults generated may not be required later and only some of the more relevantresults may be considered and the rest ignored.

Sample Tabulation of Employee Motivation

Employee Motivation % (N)

Higher Moderate Generally De-motivated Highly TotalMotivated by High Motivated motivated

60 (90) 20 (30) 10 (15) 6 (9) 4 (6) 100 (150)

The above tabulation gives a very clear picture of Total No of Employeessubjected to administered questionnaire is 150 in Parenthesis (N) and % givenoutside the parenthesis.

14) Report Preparation: The final report should consist of:

a) Brief overview of summary – Summary should begin with descriptiongiving highlights of data, tables, analysis etc. This is followed byelaboration of Analysis, conclusions, recommendations etc. Some ActionPlans could also be suggested for management to take them or leavethem according to their needs. Certain aspects to be considered are:

i) The report should not hurt the interest of organization & theemployees studies

ii) Report should be targeting the end users and be meaningful for themand

iii) Is in a format which can be put to immediate use.

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Appendix IV

INSTRUMENTS OF ORGANISATIONAL ANALYSIS

1. Summative Scale

The Summative Scale or Likert scale was developed by Renesis Likert (Likert1932. The Likert Scale is constructed by devising certain statements about aperson. Some reasonable categories are then developed for the respondent touse for indicating his or her feelings about statement. The most commonly usedresponding categories are:

1. Yes, not sure & no

2. True, not sure, False

3. Strongly agree, agree, disagree & strongly disagree etc.

Examples are

Strongly agree = SA

Agree = A

Slightly agree = SLA

Uncertain / unsure = U

Slightly disagree = SLD

Disagree = D

Strongly disagree = SD

Example of a statement using Likest Scale:

I am a highly motivated & dedicated workerSA A SLA U SLD D SD

A more refined version may contain A or 5 point scale viz

Agree = A

Unsure = U

Disagree = D

A further variation could be where more close distinction is sought. For example

Agree = A

Unsure, yet might agree = UA

Unsure, yet might disagree = UD

Disagree = D

Example of this sort of question is

I can develop rapport with peopleVery easily _________ A UA UD D

How to obtain the Score:

Let us look at a set of questions on a 5 point rating scale:

1. I mind my own work without interfering with others.

2. I discuss my work with my colleagues

3. I feel happy when my colleagues are also standing by my side at the work place

4. I morually like to a share a cup of coffee with my Colleagues during the breaks and at the end of Duty


58

Rating of the above scale has been done as follows:

Always - 5

Mostly - 4

Generally - 3

Sometimes - 2

Never - 1

In the above example the scoring can be done for which let us look at theticks ( ) given by the respondent against each question

The sample questionnaire has ‘Extroversion’ on one extreme and ‘Introversion’on the other extreme. The questions have to be rated according to the scaleconstructed by the surveyor. If ‘extroversion’ is given rating of 5 then theratings would appear as under:

Question No. Always Mostly Generally Sometimes Never

1 1 2 3 4 5

2 1 2 3 4 5

3 1 2 3 4 5

4 1 2 3 4 5

So the scoring of the ‘4’ questions given above would be:

Q.1. – 1Q.2. – 1 Total score would be = 8Q.3. – 3Q.4. – 3

Rating Scales – Semantic Differential

Prepared by Osgood, Suci and Tanxenbaum (1957) bipolar scales are created toanalyze Organizations, practices, people etc. The scales can be prepared on thebasis of two extremes and can be on the basis of 2 systems (i) from 1 to 7 orII) – 3 to +3, though the first one is more in use. The scales would look likeThe Organization

7 6 5 4 3 2 1

Active Passive

Productive Unproductive

Carrying to Non Carryingpeople issues to people issues

Motivating Demotivatingculture culture

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Forces choice scales

Questions are constructed in the manner that the respondent has to choose oneof the two options provided. He/she may either choose one of the options ormay not choose any.

For example:

Instructions: choose the activity which you prefer by placing a tick in front ofthe question in the space provided. Be sure to respond to each pair.

I would prefer:

1. Lazing around in the bed on a Sunday morning Take a stroll in the citypark

2. Attend the talk by an eminent speaker on a Friday evening Watch a moviewith the family

The advantages of these scales are:

1. Since the options are already provided, the respondent does not require tothink of the possible options.

2. The options may not be restricted to 2 only. Could be more than that i.e. 3or 4. This will help in getting an answer very close to the reality.

3. When the options are 3 to 4, the respondent may nor resort to a forcedartificial response.

Disadvantages

1. With only 2 options, the respondent may have to make a forced choicewhich may give him/her a sense of unease and at times this may result inhis/her not answering the question(s).

Behaviourally Anchored Rating Scales (BARS)

These are scales constructed to measure the effectiveness of organizationalprocess with particular reference to behaviours exhibited. Once constructedthese can be used for subsequent analysis. BARS are mostly customized byorganizations for their own used.

An example can be given here. To start with a problem area to be studied isidentified by pooling in the views of the group members. There could be anumber of issues confronting the group and it may be necessary to constructnumber of such scales. However the group has to develop the scales for eachissue/problem area.

Let us consider that one prominent issue confronting the group member whenthey meet is inadequate participation of team members. This issue i.e‘Inadequate Participation’ may be one of so many viz. Lack of Cooperation,Lack of open Communication, Lack of attention to process, Lack ofContribution, Lack of Coordination, Lack of Clarity on roles etc.

A BARS Constructed for ‘Participation’ may look like.

Participation 1…2…3…4…5…6…7…8…9

The meeting dominated Member’s contribution Inputs from all These scales areby a few members. flagging comes in the members is then used by

experts only through considered before individuals to rateprovocation. arriving at decisions. their usual meetings.


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Validation of the Instruments

A test has 2 important characteristics, validity and, reliability. Validity isimportant because if one cant ascertain what really is the test measuring, itwould be of little use.

Validity: The accuracy with which a test, interview and so on measures whatit purports to measure or fulfills the function it was designed to accomplish.

Test validity means to establish evidence that the test is job related. In otherwords, it means that the performance on the test is a valid predictor ofsubsequent performance on the job.

Criteria validity: A type of validity based on showing that scores of the test,i.e. predictions are related to job performance (i.e. criterion).

Content validity: A test indicating content validity would be one consisting offair sample of tasks & skills actually required for the job being looked at.

Reliability: It is the characteristic of the test which measures the consistencyof the test. The characteristic which refers to the consistency of scoresobtained by the same person when retested with the identical or equivalenttests.

What could cause the test to be unreliable?

Suppose one takes a test say on ‘Employee Satisfaction’ and say the persontakes another equivalent test after a mouth. If the scores of the later testchange dramatically, it would indicate test unreliability.

Validation of Test: The validation process consists of 5 steps:

1. Analyze the job

2. Choose Tests

3. Administer tests

4. Relate Test Score & Criteria

5. Cross validation & Revalidation

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Appendix V

SCANNING YOUR BUSINESS ENVIRONMENT

1. Identify the major business challenges and opportunities facing yourorganization. (You will naturally focus on the market and shareholderenvironment but don’t forget other key groups such as employees andsupplier.) what are the implications for strategy, people, systems orstructure?

2. What mechanisms does your business have in place to ensure continuousfeedback from key customer groups?

3. How does your organization monitor and assess the significance of social,economic, political and technological developments?

4. Where would you place your business on the Greiner growth model?Please complete the organization development diagnostic questionnaire.

Organizational Development Diagnostic Questionnaire

Instructions for completion:

1. The organization development diagnostic consists of sixty descriptivestatements. Your task is to work through this list and to identify thosestatements you believe to be accurate in describing your company.

2. Each time you come to an apt description you should tick it on thequestionnaire. When you have looked through all sixty statements, pleasetransfer the ticks to the score sheet, recording your choice on the scoresheet by putting a tick in the box carrying the same number.

3. Add up your ticks and total them at the bottom. Around which verticalcolumns do your scores group? This would appear to be your diagnosis ofyour company’s present stage of development. What are the inherentchallenges you face?

1. The organizational structure is very informal.

2. Top management are finding themselves bombarded with manyUnwanted management responsibilities.

3. Management focus mainly on the efficiency of operations.

4. Staff lower down in the organization possess more knowledgeabout, For example, markets, products, trends, etc., than do topmanagement.

5. The main management focus is to expand markets.

6. Top management feel they are losing control of the business.

7. The main management focus is co-ordination and consolidation.

8. There is a lack of confidence between line managers andspecialist staff/head office and the field.

9. The main focus of management is on problem-solvingand innovation.

10. There is an overemphasis on teamwork.

11. The top management style is very individualistic andentrepreneurial.

12. Top management takes too long in responding to queriesand requests.


62

13. The organizational structure is centralized and functional, i.e.based on Specialism.

14. There is not enough freedom to act delegated to those capableof doing so.

15. The organization structure is decentralized and individual divisionsor Departments have a high level of autonomy.

16. Many people at lower levels have too much freedom to runtheir own show.

17. Decentralized units have been merged into product groups.

18. Line managers resent heavy staff direction.

19. The organization is a matrix of task or project teams.

20. There is dependency on group-think to the extent that somemanagers are losing the confidence to make individual decisions.

21. The main control system is whether or not the sales targetsare met.

22. Top management do not provide enough direction.

23. Top management style tends to be directive.

24. Management tends to be over-directive and could easily delegate.

25. The top management style is delegative.

26. The organization has probably become too decentralized, breedingParochial attitudes.

27. The top management style is to be a watchdog.

28. We seem to have lost the ability to respond to new situations orsolve Problems quickly.

29. The top management style is highly consultative, meeting togetherFrequently on problem issues.

30. We are directing too much energy into the functions of our internalTeams and tending to overlook what is happening in theoutside world.

31. Long hours are rewarded by modest salaries but with the promiseof Ownership benefits in the future.

32. Top management aren’t as visible as they ought to be.

33. The main control systems seem to be concerned with standardsand Costs.

34. Flexibility suffers because those who could take decisions haveto wait For management to agree.

35. The main control seems to be in the form of profit-centrereporting.

36. Power seems to have shifted away from top management.

37. Each product group is an investment centre with extensiveplanning Controls.

38. Everyone is criticizing the bureaucratic paper system that hasevolved.

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39. The main control system is for work groups to evaluate their ownPerformance through real-time information systems integratedinto daily Work.

40. There is almost too much personal feedback about behaviourat meetings, etc.

41. The management focus is mainly on making and selling.

42. Top management are very harassed; conflicts between them aregrowing.

43. The main way managers are rewarded is by salary and meritincreases.

44. People are demotivated, even leaving, because they do not haveenough personal autonomy in their jobs.

45. The way manners are rewarded is by individual bonuses.

46. More co-ordination of operations is needed if things are to improve.

47. The way mangers are rewarded is through profit-sharing and stockoptions.

48. Fun and excitement seem to be lacking in the company.

49. Rewards are geared more to team performance than to individualachievement.

50. The constant high expectation for creativity in the organization isstressful.

51. Top management are close to customers and have a goodunderstanding of what the market requires.

52. Top managers do not seem able to introducet he new businesstechniques Which are necessary.

53. To get on in this company, lower managers do not questiondecisions made By their seniors.

54. Staff have their performance appraisals from bosses who havelittle Understanding about the subordinate’s job and work problems.

55. People are told what is expected of them and then allowed to geton their jobs as they see fit. It’s management by exception.

56. Senior mangers are continually checking up to make sure that jobsare Completed – they tend to over do this.

57. There are many head office personnel who initiate company workprogrammes to review and control line mangers.

58. Too many people are working to the book.

59. Interpersonal conflicts are brought into the open and, on the whole,managed in a non-destructive way.

60. Trying always to be spontaneous and open in relationships at workis proving stressful.



64

Organization Development Diagnostic Score Sheet.

Phase I 1 Crisis Phase 2 2 Crisis Phase 3 3 Crisis Phase 4 4 Crisis Phase 5 5 CrisisGrowth of Growth of Growth of Growth of red Growth of ?through leader- through auto- through control through tape through

creativity ship direction nomy delegation ordi- collabo-

nation ration

1 2 3 4 5 6 7 8 9 10

11 12 13 14 15 16 17 18 19 20

21 22 23 24 25 26 27 28 29 30

31 32 33 34 35 36 37 38 39 40

41 42 43 44 45 46 47 48 49 50

51 52 53 54 55 56 57 58 59 60

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UNIT 10 INTERVIEW AS A DIAGNOSTICTOOL

Objectives


importance of interview as a diagnostic tool

the process of interview

Structure

10.1 Introduction

10.2 Purpose of Interview

10.3 Forms of Interviews

10.4 Group Interviews

10.5 How to Conduct Interviews for Organisational Diagnoses

10.6 How to Analyse and Use Interview Data

10.7 Variables Studied/Diagnosed

10.8 Comments on the Illustrative Example of a Diagnostic Report on theBasis of Interview Methodology

10.9 List of Commonly Asked Questions for Diagnostic Interviews

10.10 Summary


10.12 Further ReadingsAppendix 1: Air Conditioners International: A Diagnostic Study Report

10.1 INTRODUCTION

Interview methods of data collection for organisational diagnosis purposes isused mostly when an organisation engages outside consultants for diagnosticand development purposes. Sometimes interview methodology is also used byinternal teams and/or change agents. Interviews have the major advantage ofproviding an opportunity for face-to-face interaction with the participants of theorganisation. Infact in medical diagnosis interview is the first step and forms thebasis for subsequent testing. In organisational diagnosis studies, interviews mayform the first step as well as the last stage of diagnosis. They could beexploratory interviews, hypotheses testing interviews, change inducing/ideatesting interviews. There could be individual interviews or group interviews.Some details of interview methods of organisational diagnosis are presented inthis section.

10.2 PURPOSE OF INTERVIEWS

Interviews can be used the following purposes:

Sensing the organisation and identifying general areas of strengths andweaknesses for further diagnosis.

Probing for details and getting deeper insights into a given problem or issuebothering an organisation (e.g. Why team spirit is low? What are thebottlenecks in fast decision making? Why are people unhappy with aparticular policy or issue? Why absenteeism is going up? etc.).


66

Testing out the success potential of new ideas/actions/decisions andassessing organisational preparedness (e.g. what are the attitudes of peopleto an open appraisal system? How do they react to computerisation ofpersonnel information system? What are their reactions to a newly proposedreward system? etc.).

Generation of ideas for strengthening the existing systems and processes.(e.g. How to improve the suggestion scheme? How to improve workenvironment? etc.)

Assessing the general level of health and climate of the organisation usingstructured or semi-structured interviews/questionnaire.

Thus the interview data may form the beginning of organisational diagnosis orthe last step in organisational diagnosis.

10.3 FORMS OF INTERVIEWS

The interviews may range from highly structured forms to totally unstructuredform. Normally unstructured interview methodology is used for exploratorydiagnosis purposes. In exploratory diagnosis the interviewer may simply openthe interview session by saying that he is trying to identify the strengths andweaknesses of the organisation and the interviewee may talk about anything hesees as the strength or weakness. In such cases the interviewee may reveal alot of significant information about strengths and weaknesses. The issues hechooses to speak themselves may reveal the concerns of employees.Unstructured interviews also could be used for probing in relation to specificissues. In such probing every question asked by the interviewer depends on theresponses given by the interviewee earlier. Unstructured interviews requireskilled interviewers.

Semi-structured interviews may consist of a list of pre-determined set ofquestions the interviewer has with him and seeking answer to these questions.These interviews are useful for hypothesis testing and probing.

Highly structured interviews are almost like questinnaires. They may infact takethe form of verbal administration of questionnaires or asking a series of open-ended questions which are pre-determined. These forms of interviews areuseful if the respondent cannot answer questionnaire or if the respondent islikely to give better quality responses in interview settings than in writing, ideagenerating, influencing, probing for more insights etc.

Typical Questions in a structural interview are given in Table 1.

10.4 GROUP INTERVIEWS

When there are a large number of employees to be covered for diagnosticstudy, it is quite common practice to use group interviews. For group interviewsthe interviewer invites a group of people and interviews them. The groupinterviews may be conducted departmentwise or grade-wise across thedepartments. Respondents may feel inhibited to give their views in front ofothers and specially seniors or their supervising officers. Hence if groupinterviews are planned care should be taken to compose the groups in such away that the interviewees feel free to give their opinions, reactions etc.Normally respondents of the same grade/background from different departmentsare assembled for group interviews.

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Interview as aDiagnostic Tool

Table 1: Typical Questions in Structured Interview

1. Job Related :

(i) Please describe your job.

(ii) Explain various components of your job.

(iii) Give the organizational perspective – guidelines, rules concerning your job.

(iv) Who are people interfacing you job i.e. superiors, subordinates colleagues,people from other departments, consultants, vendors suppliers, clients, goutetc.

(v) What tools, tackles you use?

(vi) Resources required to accomplish your job.

(vii) The Job: How would you describe what you do?What objective are you currently working on?

(viii) What are the core activities of your job?

(ix) The Work: How is the work of your department carried out? What are themain components of your job? What is the performance level? Which areyour main contacts? What happens to the result of what you do?

2. Individual skills, capabilities related:

(i) What % you use your skill & knowledge in execution of your job.

(ii) Do you possess adequate knowledge & skill carrying out your job.

(iii) Have you identified any gaps in your capability to handle the job?

(iv) What extra inputs in terms of extra skills or managerial acumen you think yourequire.

(v) Extra inputs (if any) are in which areas? – skill related, behaviour – related,attitude-related.

3. Inter-personal Relationship :

(i) Do you think you click well with all who you interface with.

(ii) What type of relationship you maintain with others?

(iii) What kind of relation others demonstrate towards you?

(iv) Do you fall out with some of your colleagues/co-workers once in a while? Ifso why?

(v) Do you have harmonious relationship with all in the department.

4. Managerial/supervisory attributes related :

(i) Are you a good team player?

(ii) Are you a good manager/supervisor?

(iii) Are you aware of proper methodology of giving/taking instructions?

(iv) Do people listen to & execute your instructions properly.

(v) Are you able to maintain a congenial friends environment in your Dept.

(vi) What are the major problems in getting work done here?

(vii) Rewards: What measures or standards are applied to your work? How doyou get feedback on the results of your work? If you doa good job, will youberewarded for it through pay, promotion, personal praise?

(viii) Problems and Changes: What do you see as the major problems/ blockagesin doing you job?

(ix) How do you expect your job to change over the next 1-2 years and why?How do you think your job could be improved?

(x) Training: What training have you had? Was it useful? What do you thinkyou need to learn in order to do your job better or with greater satisfaction.


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For group interviews some extra effort needs to be made by the interviewer tocreate an open climate so that the interviewees give diagnostic informationfreely. The size of the group should not be too large for group interviews.About 6-8 is a good size for interviews. Normally some participants tend tospeak more in such interviews. In such cases te interviewer should occasionallyask those who are not talking, to express their points of view. Group interviewscould also be used to select a few employees for in-depth interviews.

Normally in any organisation, once it gets known that employees are beinginterviewed in groups, much of the inhibitions get removed and employees startgiving a lot of informatioin.

10.5 HOW TO CONDUCT INTERVIEWS FOR ORGANISATIONAL DIAGNOSIS

In the case of medical diagnosis the patient goes to the doctor with a problemand hence in his own interest he gives all information whereas in organisationaldiagnosis although the top management who goes to the consultant may give allinformation, the other interviewees may not have the same need as the topmanagement and hence may not be willing to volunteer information. Alternatelythey may distort data depending on their attitudes to top management, theconsultant and the study. Therefore it is very important for the interviewer toestablish credibility and build rapport.

Before interviews are conducted it is useful and even necessary for the topmanagement to legitimise the dianostic study by informing all those who are toparticipate in it. Such a legitimisation could be done either through anannouncement giving details of the study, its purposes, the consultants orinterviewing team members and the help they need from the employees etc.

After such a legitimisation, in the interview process itself the interviewersshould clarify once again the purposes and assure the confidentiality ofresponses. Aggressive postures trying to impress the interviewee by talkingabout the closeness of the interviewer to top management, lecturing, demanding,criticising others, expression of interviewers opinions even before the intervieweestarts etc. are behaviours that hinder rapport building. Starting with general andnon-threatening issues, talking about the background of the interviewer himself,getting to know each other, pleasantries etc. help in establishing rapport.

Using open ended questions, information seeking questions and suggestivequestions helps in probing and discovering many unknowns. Sometimes duringthe interview process paraphrasing the responses given by the interviewee mayhelp in improving the listening process and understanding process.

It is useful to conduct diagnostic interviews in settings which are free fromnoise and other disturbances. A peaceful atmosphere always enhances thequality of data collected. In case of probing interviews the interviewer shouldconstantly guard himself against the danger of putting ideas into the mind of theinterviewee. Normally after interviewing a few, the interviewer starts developinghypothesis. Presenting these hypothesis impatiently to the subsequentinterviewers may endanger the diagnostic process.

An example on diagnostic interview has been given in Appendix 1.

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10.6 HOW TO ANALYSE AND USE INTERVIEW DATA

Interview data are relatively more difficult to code and analyse as compared toquestionnaire data. Since interview data are qualitative data after a fewinterviews are completed it may be useful to develop a coding/analysis scheme.It is useful to categorise all responses into those coding categories. Number ofperson giving a particular response, pointing out a particular weakness, orsuggesting a particular hypothesis etc. can be indicated.

The greatest advantage of interviews is the amount of insight it can provideinto organisational processes. Many hypothesis can be generated and testedspontaneously during interviews. Interview data obtained from a small sample ofindividuals using semi-structured interviews is presented at the end as anillustration.

10.7 VARIABLES STUDIED/DIAGNOSED

Interviews can be used to study any variables/dimensions for diagnosis. All thevariables mentioned in the earlier units can be studied using interviews. Moresofter the dimensions more useful are the interviews. Organisational norms,values, management styles, communication, decision-making, job-involvement,team work etc. are the variables that are normally studied using interviewmethodology.

The illustrative example of ‘Air Conditioners International’ illustrates the varietyof variables that may come up during the diagnostic study. From among thevariables that come up during interviews, any significant variables (e.g. adhocism, insecurity, long range planning, lack of co-ordination etc.) could betaken for an in-depth analysis if necessary.

10.8 COMMENTS ON THE ILLUSTRATIVE EXAMPLE OF A DIAGNOSTIC REPORT ON THE BASIS OF INTERVIEW METHODOLOGY

The Appendix 1 presents illustrative example of a diagnostic report prepared bya consultant on the basis of 24 interviews conducted by him. The interviewswere all conducted in a few days time. They are unstructured interviews. Theconsultant took notes for each interview. By the time the consultant completedinterviewing he has gathered a good deal of diagnostic data. The interviewswere open ended to assess generally the strengths and weaknesses of theorganisation. After completing the interviews the consultant decided to includeonly those observations that are mentioned at least in 3 different interviews.The consultant also decided not to mention the number of people making aparticular comment as the interviews are unstructured and therefore thenumbers may be misleading. The report given in the appendix is intended togive a flavour of a diagnostic report that emerges out of interviews. Thefollowing points may be noted from this report.

This is a quick diagnostic study but a lot of information got generated in ashort visit of four days and 24 interviews. Which means every day about 6interviews may have been conducted.

The diagnostic study only brings out major issues but does not go intodetails of the sources of these issues. This study is therefore a first leveldiagnosis.



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No individual’s name or identity is mentioned in the report. Only generaldiagnostic statements are made.

The analysis from interviews is presented in the form of weaknesses,strengths and recommendations.

The interviews are limited to executive levels and the diagnosis does not goto lower levels.

10.9 LIST OF COMMONLY ASKED QUESTIONS FOR DIAGNOSTIC INTERVIEWS

The following is the list of questions that are commonly used in interviews:

1) What is your job? How much satisfied are you? What contributes to yoursatisfaction? What contributes to your dissatisfaction?

2) What are the strengths of this organisation? What is going on well andwhat good things exist in this place?

3) What are some of the weaknesses in this organisation? What improvementscan be made?

4) What factors provide you satisfaction?

5) What things frustrate you? What are some of the irritants or dissatisfying things?

10.10 SUMMARY

Next to questionnaire, interview is a potential tool for organisational diagnosis. Alot can be achieved in a short period of time using this method. Interview skillsare very crucial for an effective use of t his method. Ustructured interviewsare useful for general diagnosis as given in the illustrative example. Structuredinterviews are useful for in-depth explorations. Interviews are used incombination with other methods as explained in subsequent sections.


1) How interview is an useful method for Organisational Analysis?

2) What are the different forms of interview and how the interview has to beconducted?

3) How do you analyse and use interview data?

4) How do you conduct interviews for analysing your Organisation or anyother Organisation which you are familiar with?


D.A. Nadler, 1977, Feed back and Organisation Development : Using DataBased Methods, Addison Wesley Publishing Company.

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Appendix 1

AIR CONDITIONERS INTERNATIONAL :A DIAGNOSTIC STUDY REPORT

Introduction

At the request of the Chief Executive and Managing Director (MD) of the AirConditioners International (ACI) to make a quick diagnostic study and prepareproposals for assisting the company, the consultant visited ACI from May 4-7,1988. Interviews were held 24 executives including two of the GeneralManagers. The following is a diagnostic report emerging out of the discussionsand interviews with these executives. This is followed by a set ofrecommendations in the form of preliminary proposals for consideration.

Background

ACI was started in the year 1958. In the early years when it started withforeign collaboration it took pride in the products it manufactured. Till aroundthe year 1975 the company did well and maintained a considerable degree ofmarket stability. Its sales turnover ranged between Rs. 15 to 20 croresconsistently with a capital investment of about Rs. 6 crores. during 1975-76 thecompany suffered a set back due to economic recession and fall in demandsfor Air Conditioners. During 1980-81 there was a major industrial unrest forseveral months. A number of employees had to be retrenched. From 1983onwards the company started making profits again.

However, what was considered monopoly items (mixers and grinders and air-coolers) started getting made by competitors and a number of others setting upsmall scale units. 1985 onwards the compnay again started making losses. Ananalysis indicated that the Air-Coolers and mixers division of the company iscontributing greatly to the losses along with a high a demand for managerialtime and resources. As a result it was decided to close down this division in1987. By mid 1987 this was closed down and about nearly 600 employees hadto be removed in an operation to retain only those who are competent andneeded. This pruning included parting with a sizeable number of managerialstaff who were considered redundant. According to one of the SeniorManagers the company was doing around 1974 about the same amount ofwork with half the staff in 1986-87. So the pruning operation was badlyneeded.

Diagnostic Observations from Interviews

From the interviews and discussions with the 24 executives the followingobservations could be made.

The general morale of the executives appeared to be low. This is mostlytraceable to the events in the last few months where a number ofemployees were asked to leave and the Air-coolers division was closed.While several of them appear to appreciate and support the decisions toclose the Air-coolers division and removing employees some of theexecutives have a lurking fear that their turn may also come sometime. Job-insecurity seem to haunt several of them.

It appears that when decisions are taken, they are not given enough time toimplement and they get changed soon. Several executives mentioned that inthe eagerness to improve things the top management may be changingdecisions too fast without giving themselves enough time. There are seem tobe quite a bit ad hocism perceived by the executives in the way thedecisions are taken. “To-day something appears important so a decision istaken on the basis of ‘appearance’ rather than on the basis of an in-depth



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study and a professional approach. A few days later the decision appears tobe of doubtful impact and something else appears to be better, andimmediately it is changed”. This adds to the feeling of insecurity anduncertainty in the minds of employees. This also brings down theirmotivation.

The changes in decisions is aggravated by lack of communication and ahigh degree of grapevine adding to the insecurity and confusion according tosome employees. Employees do not get any information about why decisionsare changed and they are left to guessing. Executives would like to feelthat they are a part of the company and the company is theirs. As a resultof lack of communication their commitment and “we” feeling are very low.

There is no professional way of appraising the employees—particularlyexecutives. These are considered very subjective.

The top-management seem to think more of the short-term goals and thelongest term they can think of is 6 months. Such short-term goal orientationhampers organisation building and promotes ad hocism. For example,acceptance of defective raw material for fear of loss of production.

On the marketing side packaging is considered poor while the product isgood. There is no formal way in which the production department getsfeedback from branches.

Most executives resent too frequent changes at top level-particularly at theGeneral Managers level. By the time a General Manager settles down andtries to find his way he is out. The next man comes out with his ownpolicies and people down the line have to change their thinking all of asudden, not knowing for how long. As a result there is a high sense ofinstability resulting in low motivation.

The top-management and senior executives seem to spend time on smallroutines issues rather than concentrating on strategic plans. For exampleeven the finance department’s time is spent more on employee finance thancompany finances.

Tasks are assigned informally rather tha after careful thinking and planning.Accountability is not fixed.

The company has not been adding any new products. R&D’s contributionsare side tracked by asking them to concentrate on small things.

People are not at the same wavelength. Due to insecurity and personaliseddealings everyone tries to impress the top management rather than showingconcern for work. In this process openness and frankness gets eroded.Team spirit comes down and complaints against one another increase. Thereis a need to bring everyone at the same wavelength through frequentcommunications and get togethers. One of the executives remarked “weneed to generate a ‘May I help you’ feeling in staff. We need energytablets and a common goal.”

Employees are afraid to take risks for fear of failure.

Too frequent change in systems (e.g. procurement system changes withchange of hands).

No periodic meetings (monthly or weekly) to discuss various issues.

Strengths

Against all these problems and issues ACI has strengths. The executivesare more or less unanimous in identifying these strengths and feel that theyshould be cashed on. These include:

A dynamic and professional-minded chief executive who means business,and is committed to make ACI more dynamic.

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Staff with extremely good potential and competencies. These, however, needto be used rather than stagnated.

High quality of the products they make and the sense of pride theexecutives have in their product.

Good product image.

The care company takes of its people. Liberal welfare policies andincentives given to executives and other staff.

Small size of the company giving opportunity to promote family orientationand cohesiveness. This needs to be cashed on.

Capacity to take tough decisions when required.

Technical support of foreign collaborators.

Large scale operations of the company, small size of competitors, pastimage and collaborators and capability to delivery large quantities in shortperiods.

Variety of products being manufactured.

Past experience and well chalked out market which can be furtherexpanded with some imaginativeness and hard work.

Recommendations and Proposals

The above report makes it clear that there is a need to be a number ofthings to lift up ACI to its potential heights. On the organisational front itmay be useful to prepare a long term plan and follow it up. Such a planshould visualise ACI in a 5 to 10 year perspective and attempt to take itfrom 20 crores turnover to 30-50 crores or even more. It may be useful totake the help of a corporate planning expert who could work with theinternal team of General Managers and other Senior Executives.

Regarding the internal functioning of the organisation there is a need toimprove communications and turst. This cannot be done through a trainingprogramme as envisaged earlier but through establishment of a number ofsystems and processes around organisational tasks. Some of these systemsare suggested below.

Weekly Review Meetings of Production and Marketing: Every week on aspecified day all the senior managers (about 10-15) should get together andreview the progress in the week and discuss plans for the next week. Eachhead of the department or one of his managers should present a review ofthe previous week’s activities, accomplishments, difficulties as well as plansand suggestions for the next week. The Chief Executive can share anyinformation he has about the external environment and also use this meetingas a mechanism of understanding problems, solving them, fixingaccountability and reviewing progress. In subsequent years the frequency ofsuch meetings could be reduced.

Every manager/officer should have his key accountability areas identifiedand should be given full responsibility. Every manager should have a specifictask not overlapping with his boss or subordinate as far as possible and heshould be asessed for it once a year. A formal system of performanceappraisal should be introduced in the company. Each manager may beencouraged to write down his own performance and accountability areasand these could be discussed generally in a seminar form.

The present efforts to consolidate human resources has reached ameaningful stage. Before any one else is recruited it is necessary to doprepare a manpower needs and utilisation plan. This exercise may becomemeaningful if done along with recommendation.



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A number of management systems need to be introduced that can reducecosts and increase efficiency. On the basis of the interviews it is difficult topin-point what is lacking but it may be worthwhile examining the scope ofimprovements in the following areas.

i) Management Accounting and Control Systems (The finance Departmentwith its computer cell may be capable of doing it. Their time utilisationfor productive matters need an examination. Their potential is probablynot being well utilised now).

ii) Materials Management (although managers claim substantialimprovements, there are reasons to believe that this needs some attention,specifically the inventory management for raw materials).

iii) Improvements in packaging and company image.

iv) Strengthening the competencies of marketing staff. It may be useful toget them together once in a while and then promote their initiative-takingand aggressive selling qualities.

iv) Exploring new product lines. Specially the R&D efforts have to bestreamlined. Their accountability should be fixed. They should be givenfreedom and some working arrangements to test out the products evolvedby them need to be made.

It is useful to stop all further retrenchment, specially at higher levels.Identify clearly the areas where very manager has to contribute, fix up theiraccountability, given them freedom and time to demonstrate theircompetence and have trust in them till then.

The company has given enough financial and other welfare incentives,whose value is probably not seen due to job insecurity. It is time that theyare provided with job-securities.

The Chief Executive and the General Managers should spend their time onlarger issues relating to the company and its future and leave the day-to-dayoperations management largely to its managers.

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UNIT 11 WORKSHOPS, TASK-FORCES AND OTHER METHODS

Objectives


workshops in analysing the problems involved in the organisation.

task-forces, i.e., a group of employees constituted by the top managementhelp in analysing an organisation.

observation method helps in diagnosing the problems of an organisatioin.

Structure

11.1 Introduction

11.2 Diagnostic Workshop Methodology

11.3 When to Use Workshop Methodology

11.4 Task-forces and Internal Teams

11.5 Management Assessment Centres

11.6 Other Methods

11.7 Summary



Appendix 1: Sigma Engineering Consultants & Construction India Ltd.:A Diagnostic Study Report

Appendix 2: Workshop Method: An Illustrative example of a Fast FoodChain

Appendix 3: Force Field Analysis

Appendix 4: Assessment Centres at American Telephone & TelegraphCompany

11.1 INTRODUCTION

While questionnaire and Interviews are very popular and most commonly usedmethods, in the recent past workshops and internal-task forces are alsobecoming very popular. There is greater involvement and team-work involved inworkshops and task forces as compared to questionnaire. External help isminimised in task-forces and workshops and sense of purpose is high as teamsof employees are involved in diagnosis. Hence these methods are explained insome detail with illustrative examples. Observations and other unobtrusivemeasures are additional diagnostic tools. They are also described briefly here.

11.2 DIAGNOSTIC WORKSHOP METHODOLOGY

In the Workshop Methodology participants (employees) of an organisation areassembled in groups (usually ranging between 20 to 30) for purposes ofdiagnosis. They are divided further into small groups (usually with a size of 6 to 8)and are requested to discuss a particular issue and diagnose the situation.SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats) or Force FieldAnalysis (Symptoms - Sources - Solutions - Action Plans) are conducted by thesmall groups with respect to a given issue/problem/dimension needing the study.The following procedure is normally followed in the workshop methodology.


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Defining the Problem/Issue for Diagnosis: First it is important to clearlystate the problem or issue at hand before the decision to use workshopmethodology is taken. The problem may be general or specific.

Examples of General Diagnosis

a) The organisation is wanting to improve its general performance throughimproving the productivity and motivation of its employees. The present levelof motivation and efficiency of employees at all levels is considered to begood but there is a feeling expressed by several categories of people that itcan be still better. What is contributing to the present level of efficiency andwhat would help improving it.

b) The organisation is wanting to diversify. New units are expected to beadded in the same locations. Some of the existing staff may have to lookafter the new units also with appropriate rationalisation of work loads. Whatare the factors that should be taken into consideration for implementing thediversification decisions?

c) There is general feeling that the employee motivation is low andorganisational health is poor. What are the reasons? What are the criticalvariables that could be dealth with?

d) The organisation is simply interested in improving itself. What are the waysin which the organisational functioning could be improved?

Examples of Specific Issues

a) The organisation is interested in changing the performance appraisal systemand strengthen the open culture. What are the problems and possibilities?What do people feel about the existing appraisal system? What changes dothey want?

b) The absenteeism is on increase in some departments. What are thereasons? What could bed one?

c) The organisation would like to improve the team spirit and interdepartmentalcollaboration. What is contributing to team spirit to-day? How to enhanceit?

d) The organisation would like to introduce computers in several sections.What is the existing situation and what steps/variables should be consideredfor an effective implementation?

The process of defining the problem itself is important. To define theproblem itself the top management team may need to have a meeting or aseries of meetings. Some times even outside consultants could be used whomay conduct a few preliminary interviews and make an assessment of theproblem. While it is important to define the problem/issue before theworkshop is convened, the facilitator of the workshop should be openenough to go beyond the stated problem if the workshop participantsindicate the need for the same.

Preparatory Work: In addition to developing clarity about the problem it isnecessary to plan for the workshop in terms of the composition of thegroups, introducing the problem, presentations, class-room facilities etc. Theparticipants called for the workshop should be those concerned with theproblem/issue, those affected by it and those who are likely to contribute tothe diagnosis and subsequet improvements. The workshop participants shouldbe selected in such a way that there are not too many levels of hierarchypresent in the same workshop. This is because juniors may feel inhibited totalk about the problems in the presence of seniors. If the group is small andif people of different hierarchial levels get included the sub-groups in theworkshop may be so composed to take care of any inhibitions.

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Workshop Itself: The workshop may begin with an introduction by theChief Executive/Unit Head/Sponsor of the diagnostic study. However, afterthe introduction it should be left for the facilitator to conduct the session. Itis advisable if the sponsor of the study is not present during discussions inorder to facilitate free expression of views. However, he could join theworkshop at the end to listen to presentations. Some times the culture of anorganisation may not be open enough even for that. In such cases, thesponsor of the study could be given a presentation by the facilitator himself.

Thus the workshop itself would consist of four groups of activities:

i) Legitimisation by the top management in terms of introducing the study, thefacilitators, plans for use of diagnostic data etc.

ii) Rapport Building by the facilitators in the form of explaining the meaning ofdiagnosis, sharing experiences of other organisatioins, explaining importanceof the data they generate, assuring confidentiality, explaining the rationale forgroup formation, announcing the groups or forming the groups there itself onthe basis of suggestions by the members, and introducing the methodology.

iii) Group work where the groups will use Force Field Analysis, SWOTAnalysis or Source-symptoms-Action Plan Analysis.

iv) Presentation by groups consolidation of data and prioratisation of variablesfor action etc. and closing.

The atmosphere in the workshop should be free, open and informal.

The facilitator has to play a major role in creating this atmosphere.

Some examples are presented in the Appendix explaining SWOT Analysis andForce-Field Analysis, Plans Analysis. All the three are good diagnostic tools andthrow up a lot of useful diagnostic information.

11.3 WHEN TO USE WORKSHOP METHODOLOGY

Workshop methodology could be used under the following conditions:

If the problem/issue to be discussed is believed to be amenable forimprovemens, solution.

The decision-makers or the top management of the organisation arecommitted to bring about change/improvements in the situation and arewilling to invest some resources for it.

The organisation values partcipative processes and there is some amount ofopenness or willingness to participate and share organisational concerns.

Involvement of employees becomes important for solving the problem.

11.4 TASK FORCES AND INTERNAL TEAMS

In India many organisations use internal task forces for organisational change.A number of Organisational Designers and OD Consultants make it compulsoryfor the organisation to appoint an internal task force to assist the facilitator inthe change process. A task force is a group of employees of an organisationconstituted by the top management and charged with the responsibility ofworking on a specific task/assignment in additin their formally assigned jobspecific roles. The task force when constituted should have terms of reference.Normally, each task force has a convenor, a secretary and a set of resourcesto complete the task. The terms of reference should contain the details of the

Workshops, Task-Forcesand Other Methods


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purpose why the task force is constituted, the methodology they can use, theflexibility they have in reformulating or redefining the job given to them, theresources they have, the assistance they need/expect from other employees, thetime frame and office bearers. When such task forces are constituted, it iscustomary to make an announcement of the task force and its terms ofreference (at least a summary of it) to all employees (at least to all thoseconcerned with the issues) of the organisation.

The task forces may work independently or under the general direction/guidance of the Chief Executive a Top level Manager (like a Director) or aConsultant or Facilitator.

The work of the task force is time-bound. Thus an organisation can useany number of task forces depending on the problems/issues are willing totake up.

Normally, the task forces are constituted for diagnosis of spcific problems andworking on specific issues. General organisational diagnosis is not entrusted totask forces as such diagnosis can be done better through the earlier outlinedmethods. However, OD Consultants are known to use task forces as soundingbodies when they use questionnaires, interviews and the workshop method. Thetask force can be used as an overseeing mechanism, guidance mechanism foranalysis of data and presentation of the data gathered from other sources andpreparing action plans. The following steps used by a Performance Appraisaltask force are illustrative of the way the task forces function.

Appointment: The top 20 Executives including the Chief of an Engineeringcomany constitute an “Organisation Development” or OD Group. They meetevery quarter to review the progress of the organisation specially withreference to its human processes. Every time they meet, they meet for about 2full days to discuss all issues. In one of the meetings they identified a largenumber of areas needing changes, improvements for better functioning of thecompany. Of the 20 and odd issues/areas/problems identified size issues werelisted as priority items (e.g. Performance Appraisal, Rewards, MIS etc.). Theyconstituted six different task forces are drawn from these 20 the membershipof the task force went beyond the top 20. In some of the task force juniorlevel executives were also included. Each task force was given a terms ofreference and target date for completion of their diagnosis and preparation ofrecommendations. The task forces were required to keep presenting theirinterim reports to the OD Group.

Performance Appraisal Task Force: This task force consisted of threesenior executives. They were given the freedom to engage a consultant to helpthem. The task force is to evolve a open system of performance appraisal.They were also required to design a format and a manual keeping in mind theconcerns expressed by the OD Group. They are also required to assist inimplementing the system the operational aspects of which will be taken up bythe personnel department.

Initial Meetings: The task force had a few initial meetings to clarify theirown role and list various activities they need to undertake. They decided tocommission a quick study of the attitudes of employees (officers andexecutives) to the existing appraisal system and their preferences for whatshould be included in the new system. They decided to put a couple of youngMBAs to design the questionnaire administer it, analyse it and prepare a statusreport. They simultaneously decided to take the help of a consultant to helpthem design and implement the system.

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Evolving a Format and Objectives: After the survey was conducted thetask force had a series of meetings and identified the main and sub-objectivesof the appraisal system. They have also identified the components and prepareda format incorporating these objectives.

Testing out the Format: The task-force then identified a representativesample of executives and contacted them individual for testing out the format.Each member interviewed a few executives. The interview consisted ofexplaining the objectives and format to each executive and taking their viewsand reactions to it.

Preparing a Manual: On the basis of this preliminary try out the task-forceprepared an accompanying manual and also finalised the performance appraisalsystem.

Preliminary try-out: The task force then conducted a series of orientation-cum-trial workshops to introduce the new system. After such workshop againviews and opinions of executives were obtained. Six members after theworkshop another series of interviews were conducted to diagnose thedifficulties experienced by executives in implementing the system.

Reporting to OD Group: Periodically the task force went on reporting to theOD Group. After the first round of trials a decision was taken to implement thenew system and the task force was dissolved and other monitoring mechanismswere worked.

Although all details of the working of the task-force are presented here, theabove description may make it clear the way task-forces function. Since theyare drawn from the practicing world and their time is valuable, the task forcesmeans business. Their diagnosis may be continuous and forms a part of theaction plan. The task-force mentioned above went on diagnosing the mood ofthe people and the process support required to implement the new appraisalsystem. They used interviews, workshops, surveys, informal discussions andtheir own observations as diagnostic tools. They have also combined diagnosiswith continuous action.

11.5 MANAGEMENT ASSESSMENT CENTRES

A situation in which management candidates are asked to make decisions inhypothetical situations and are scored on their performance. It usually alsoinvolves testing and the use of management games.

In a two-to three day management assessment center 10 or 12 managementcandidates perform realistic management tasks (like making presentations) underthe observation of expert appraisers; each candidate’s management potential isthereby assessed or appraised. The center itself may be a plain conferenceroom; but it is often a special room with a one way mirror to facilitateunobtrusive observations. Examples of the simulated exercises included in atypical assessment center are as follows:

The in-basket. With this exercise, the candidate is faced with an accumulationof reports, memos, notes of incoming phone calls, letters, and other materialscollected in the inbasket of the simulated job he or she is to take over. Thecandidate is asked to take appropriate action on each of these materials. Forexample, he or she must write letters, notes, or agendas for meetings.The results of the candidate’s actions are then reviewed by the trainedevaluators.



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The leaderless group discussion. A leaderless group is given a discussionquestion and told to arrive at a group decision. He raters then evaluate eachgroup member’s interpersonal skills, acceptance by the group, leadership ability,and individual influence.

Management games. Participants engage in realistic problem solving, usuallyas members of two or more simulated companies that are competing in themarketplace. Decisions might have to be made about matters like how toadvertise and manufacture and how much inventory to keep in stock.

Individual presentations. A participant’s communication skills andpersuasiveness are evaluated by having the person make an oral presentation ofan assigned topic.

Objective lists. All types of paper-and-pencil tests of personality, mental ability,interests, and achievements might also be a part of an assessment center.

The interview. Most centers also require an interview between at least one ofthe expert assessors and each participant. Here the latter’s current interests,background, past performance, and motivation are assessed.

The agenda for a typical two-day assessment center is presented in Appendix 4.

11.6 OTHER METHODS

Other methods like observation and analysis of factual information records etc.could also be used for organisational analysis. However, they have seriouslimitations and are not very popular in India.

Observational Methods

This method is most useful when an outside consultant is used for diagnosis.Insiders are most often blind to the events and data that are a part of theorganisation. An outsider could observe a number of things. For example, thebehaviour of people when the work hours begin in the morning, at the time ofthe close of working hours, the notices displayed, the work organisation, thebehaviour of people in meetings, the kind of memos written to each other, teaand lunch breaks, canteen and the way it is organised, behaviour of employeesin the organisation etc. could be observed and inferences made.

The main limitations of this method are:

i) Not all processes are amenable to observation and the observer’s ownbiases get reflected in observations. Observation methods could be used aspreliminary diagnostic tools. Unless they are supplemented with interviewsor other methods a good quality diagnosis may be different, Nadler (1977).

ii) The basic strength or weakness of observation as a tool is that the observeris the data-collection instrument (as opposed to the questionnaire as theobservation instrument). A sensitive observer making use of an effectivestructure for observation can be an effective data-collection tool. Anobserver who has little sensitivity and no guiding structure may spend hoursobserving, see nothing, and report no usable data.

Secondary Data and Unobtrusive Measures

Records maintained by organisations can be very useful sources. Now-a-dayswith easy accessibility of computers most organisations collect and store a lotof data. Absenteeism rates and patterns, grievances, costs, delays, work

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performance records, attendance at meetings, circulars and other officecommunications provide ample opportunities for diagnosis.

Minutes of meetings, points of view expressed in meetings etc. also offerenough insights. These methods unfortunately are less frequently used. Forexample, analysis of performance appraisal reports can give a lot of significantdata about the problems and difficulties of employees, their competency gapsand so on. Similarly an analysis of the delays in submitting reports (MIS,budgets, appraisals, reward recommendations), leave applications complaints etc.may also provide significant insights.

11.7 SUMMARY

Every method has some advantages and some limitations. Interviews have theadvantage of studying the problems in depth and offering scope for generatingand testing many hypothesis. Task-forces are very useful in continuousdiagnosis and implementation. Questionnaire provide systematic information andcomparability with other organisatioins and of the same organisation at differentpoints of time is enhanced. Observations and secondary data provide directinsights into the existing situation and are factual. The quality of diagnosis islikely to improve if a number of methods are used simultaneously than relyingon a single method.


1) When do you use work shop method for Organisational diagnosis? Explainin detail the process of Work shop method?

2) What are task forces and internal teams?

3) Explain the method of observation and its limitations.

11.9 FURTHER READING

D.A. Nadler, Feedback and Organisation Development: Using Data BasedMethods. Addison Wesley Publishing Company, 1977.



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Appendix 1

SIGMA ENGINEERING CONSULTANTS &CONSTRUCTION INDIA LTD.: A DIAGNOSTIC STUDY REPORT

Introduction: Sigma Engineering & Construction company a well entrencheddiversified company possessing monopoly in concept to commissioning andconstruction areas into intrastructure development, steel plants, petroleumrefining and petro chemicals, highways etc. due to highly competitiveenvironment was facing acute order crunch. The chief Executive hired aconsultant to study the cause(s) of Lower productivity of employees,compromising quality of products and services and consequent low morale ofemployees.

Background: Sigma Engineering & Construction Company was started wayback in 1953 by a couple of enterprising engineers with a capital of 1 crore.The basic training of the 2 engineers had taken place abroad followed byaround 8 years experience of working in large conglomerates in U.S. & Europewith their sound knowledge of the trade, excellent and credential excellentcontacts it was not difficult to get orders form good companies. The companymade steady growth for almost 20 years by remaining profit making throughout.As company expanded its operations and ventured into newer domains, itsemployee strength increased form 150 additional employees to a staggering2343 employees as on the date when the Chief Executive hired the services ofthe Consultant. Company has come for long way form Joint OwnershipCompany to a Limited company with a Board of Directors and variousstakeholders. Company’s shares are being quoted in the Bombay StockExchange & NSE. However alongwith the growth, other aspects like pushesand pulls for acquisition of power at the Board level and various for likeofficers Association and Employees Association (Employees Union) areconstantly having a showdown with the Company’s management for garneringa bigger share of incentives for employees. Amidst these issues, the vital issuewhich are being partially side tracked and which needs urgent attention are:

i) Technological Upgradation of work processes

ii) Devising appropriate corporate strategies for remaining competitive in the face of onslaught of some MNC’s who are perpetually trying for a larger share of the pie.

iii) Carving more professional company policies and work practices.

iv) Developing a motivating work culture and environments.

The employee productivity is on the decline for various reasons and the chiefexecutive is concerned about various indicators which do not augur well for theorganization and is convinced that some immediate steps in the right directionare needed to be taken. He has worked out an Action plan alongwith hisBoard Members. One of the areas which needs looking into is the peopleissues i.e. creating a motivating and invigorating work culture. Hence the hiringof the consultant. The chief Executive has given the scope of study and iswaiting for the diagnostic study and the recommendations.

Modus operandi:

The consultant got down to work immediately and formed groups to startinterview process simultaneously at the Head office and various regionaloffices. Detailed questionnaire have been devised covering all aspects whichneed to be studied.

1. In the first round all executives were interviewed starting with TopManagement cascading down to their perception were noted, observationscollated and a draft report prepared.

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2. In the second round the Staff and workers were interviewed, theirperceptions were recorded; observations for the consultants were alsorecorded and based on this report generated.

3. Immediately thereafter the Consultant undertook a SWOT analysis for theentire company in order to make available the strategic dimension which theCorporation could adopt which would provide avenues to employees for theirgrowth. This in turn will enable the consultant to formulate appropriatestrategy for enhancing employee motivation and satisfaction.

Diagnostic observations from interviews

The outcome of interviews with 150 odd executives is summarized below:

i) General morale of employees is low because of a number of non friendlyemployee policies of company as also lack of growth avenues. There is alurking fear that with low order position, some employees may be asked toleave.

ii) Because of low order position often there is not enough work for all whichcreates a number of uneasy thoughts in the minds of employees:

a) Lack of motivation

b) Fear of being asked to leave

c) Loss of incentives/bonus

d) Erosion of authority

e) Depreciating market value

f) Lowering of image as compared to similarly placed professionals incompeting organizations

g) Diminishing sense of self worth.

iii) Suggestions for improving work practices or technical suggestions fromexecutives at Junior levels or middle levels take endlessly long before theseget approved and still longer before implementation. Many a times thedecision of top management are imposed recklessly without going into theirmerits. This makes the entire decision making process erratic and lopsidedthus not giving the desired results. This also results in lot of expenditurewith a likelihood of is being scrapped altogether at a later date andsubstitution by yet another not very well thought out decision. This creates afeeling of inadequacy and demoralization in the employees.

iv) The manner in which the decisions are implemented is yet another greyarea. Normally a systematic manner of implementation would comprise ofstep-by-step procedure laid down/documented and not an adhoc manner. Inthe instant case, one find day top management would take a decision, nextday would shoot orders and from third day it would be expected to beimplemented. A more systematic manner would have been:

– An idea/suggestion is mooted

– The idea/suggestion would get discussed in a committee like “SuggestionsCommittee” having senior functionaries from various functional disciplinesas members. Once the idea is found to have some worth, its practicalfeasibility would be studied in the context of organization.

– On the recommendations of the committee the suggestion would then getconsidered by the concerned department and its practical implementability,cost involved how it would impact the organization (whether it would beaccepted by larger population), the likely benefits to be derived, its longterm inability etc will be looked into.



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It would then be put up to the top management for their final approval. Oncethe approval is accorded then only implementation can be taken up.

As against that, the current prevalent practice in the organization is:

– Top management roots the idea

– They take decision among themselves one way or the other withoutinvolving either the concerned department representative or even theofficers/employees associations which makes the decision totally adhoc.

This has resulted in large scale frustration among the employees. Since neithertheir involvement in the decision making process is sought nor their technicalcompetence is made use of.

– There are no open channels of communication available to employees.Communication is mostly one way that is top down. Open bottoms upcommunication is neither encouraged nor tolerated.

– Organizational culture which at one time was considered excellent standsinitiated now due to infighting between the top management cadres andapproach bordering on phycophancy and one-up-manship.

– Management style is biased in a way ‘you show me the face and I willshow you the rule’.

– Though an objective performance appraisal system is existing but theprevalent culture makes it highly subjective and due to which employees donot have any turst. Donkeys and Horses appraised on the same yardstickand at times the donkeys may outsmart the horses.

– Professionalism has taken a back seat to the extent that those close to themanagement call all shots – views of the experts may not be taken intocognizance.

– Strategic planning process dealing with devising long-term and short-termgoals/objectives has been given a back seat. The strategic planning exerciseis merely a shorn and action plans display the high – handedness andwishful thinking of top management.

– Overall discipline in the organization is a all time low with people gettingaway with favouritism.

– The top management team is more into routine jobs rather than urgentcorporate Governance issues requiring their attentioin. In doing so they endup usurping the authority of their subordinates which has a cascading effect,adversely affecting the morale of employees at all levels.

– Job rotations and transfers at senior levels are too frequent at the whimsand fancies of people in authority. This leads to lack of continuity inorganizational processes with a resultant low productivity all round.

– Because of whimsical approach of senior management, employees at lowerlevels try to impress their seniors and spend more time in gaining favoursrather than doing their duty. This further hampers the flow of work.

– Lack of confrontation with the real issues by the top and seniormanagement. The problematic and time consuming issues are pushed underthe carpet and mostly remain unattended.

– Lack of leadership qualities in the top management delays decision makingand even then the decisions are taken, those are not in the best interest ofthe organization.

– Because of varius maladies mentioned above mere sustenance oforganization has become crisis–ridden. Nobody is looking at the growthinitiatives like diversifying, increasing the market share, investing in latesttechnology, meeting competition etc.

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– Lack of systems orientation leads to wastage of time, energy of employeesand infrustuous expenditure.

– There is a total lack of trust between various levels of employees andbetween employees and management in the organization.

– Employees are afraid to take risks for fear of being branded and of failure.

– No system is followed in execution of jobs.

– Quality standards and norms are flouted.

– Monthly, weekly and routine meetings are sporadically handled.

Strengths: Though the Organization has become ridden with problems thereare a number of inherent strengths as well. These strengths if properlyencashed upon can not only bring the organisation back to its glory but cantake it on a sustained growth path.

The strengths which got highlighted during the interviews are:

i) A dynamic and committed professional Chief Executive who intends takingthe organization forward.

ii) Highly competent professional cadres of employees with skills andcompetencies second to none. Organisation can build on these strengths forachieving its long term objective rather than allow these to stagnate.

iii) The brand value and image of the company is very good.

iv) The product/services image is good.

v) People are generally satisfied and it is expected that employee motivationwill increase if the Management style and practices improve.

vi) Employee Welfare practices and company policy are good.

vii) The incentive schemes and productivity linked reward schemes have beensigned well and the past track record is good.

viii) Company has sound personnel polices in place.

ix) The employees are treated as interval customers and given dueimportance.

x) The technical knowhow & technological superiority over the competitors isknown and accepted in the industry.

xi) Fellow feeling among the employees, sharing and helping attitude and afamily environment is the basic strength of the organisation.

xii) Long standing goodwill in industry and experience of operating in thechanging global scenario.

xiii) Low turnover of employees. Highly experienced employees with long termemployment in the company.

xiv) Most of the employees are having overseas experience of working onvarious projects abroad.

xv) Employees feel sense of loyalty towards the company having spent morethan 15-20 years with the company.

xvi) Highly professional work environment with freedom to experiment withinnovative ideas.

Recommendations

Looking at some of the maladies tormenting the organisation due to wronggovernance polices as well as looking at the strengths thrown up by thediagnostic study, the consultant has come up with the followingrecommendations for proposed turnaround of the corporation.



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i) Strategic Dimensions

a) It is important to devise a vision & mission statement and companyobjectives for the company by involving.

b) A consultant to undertake environmental scanning exercise to helpdevelop a corporate plan for 5 to 15 & 20 years.

c) Constitute various functional committees for developing long term & shortterm strategies in various functional areas

i) Corporate strategy

ii) Marketing strategy

iii) Operating/production strategy

iv) Financial Management Strategy

v) R & D Strategy

vi) Procurement/Materials Management Strategy

vii) Project Management/Construction Management Strategy

viii) Human Resource Strategy

All the above strategies should integrate at apex level with corporateStrategy.

d) Internal Environment Scanning – After conducting the diagnostic studythe following observations have been made by the consultant.

i) Need to improve the Trust which is low.

ii) Channels of Communication which are should be revitalized byensuring that all communication should be a two way process.

iii) Top Management to follow practice of Openness & transparency inall matters.

e) Regular Meetings to be held in all functional domains viz. DepartmentalMeetings, Divisional/zonal meetings and review meetings-in areas like-

– Production and Planning Meetings

– Marketing

– Human Resources

– Project Planning

These review meetings are essential to take stock of progress made,utilization of resources allocated, production/project various etc.

f) Individual responsibility & accountability at each level to be documented.

g) Individual roles to be clearly defined without any overlaps.

h) Systems should be put in place to ensure that various work processes aswell as people processes are executed through these systems viz.

– Production Planning & Control System

– ERP – Enterprise Resource Planning System

– Performance Appraisal System

– Manpower Planning System

– Human Resources Information System (HRIS)

– Management Accounting & Control System

– Inventory Management System

– Exist Management System

– Knowledge Management Syst.

i) To curb employee turnover by introducing more employee friendlypolicies.

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j) Introduce TQM, Just in time or six sigma quality practices for qualityproduct/service delivery.

k) Introduce Customer Proximity or Customer Relationship ManagementProgramme.

l) The Chief Executive alongwith other board members should focusattention on better governance and boundary management activities anddelegate routine activities to senior management levels.

m)Image building exercise should be undertaken organisation wide.



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Appendix II

WORKSHOP METHOD FOR ORGANISATIONAL DIAGNOSIS:AN ILLUSTRATIVE EXAMPLE OF A FAST FOOD CHAIN

The Fast Foods Chain (FFC) is located in a metropolitan city. It has over a100 outlets in the city and is planning to open at least another 200 in the next2-3 years. The FFC has become so popular in the city that there are demandsfrom other cities to open their branches. There is a master kitchen in the citywhere some of their popular items are made and distributed every day to therestaurants. Their Pizzas, Juices and Ice Creams are very popular. Their headoffice consists of about 20 officers and 30 support staff. Their employeestrength is about 100 in the master plant and about 2,000 in the restaurants.Each restaurant has an officer in-charge and reports to the area manager.There are 8 area managers in the head office looking after the variousrestaurants. The FFC is a partnership firm. The organisation is in the processof expansion but problems are already in the rise in some of its restaurants andin the master kitchen. In order to plan better for expansion the headquartersteam decided to take stock of the existing situation. An OD Consultant wasappointed to study the existing strengths and weaknesses of the organisation, itsability to cope with increasing business in the coming years and the preparationrequired for the same. For this diagnosis the consultant interviewed all theheadquarters staff individually and a sample of restaurant manager. Since hecould not get to interview all restaurant managers and at the same timeinterested in getting as many views as possible he requested for a workshop ofthe restaurant managers. 3 managers were called from each region for the firstworkshop.

After explaining the purpose of the workshop they were divided into 3 groupsdistributing the managers from each region into different groups. Some of themanagers worked earlier in the head-quarters office as their jobs aretransferable. The following is a sample of items mentioned by the 3 groups asa part of their SWOT analysis. The list is illustrative and not exhaustive.

Strengths

1. Informality and accessibility of top management. Any one can approachthem at any time.

2. Fast decision-making at the top.

3. Moderate pricing of all food items.

4. Good quality of food items supplied by them.

5. Committed managers of restaurants.

6. Good advertisements and publicity.

7. Excellent co-ordination between master kitchen and restaurants.

8. Honest and sincere top management.

9. Concern of management about the Welfare of Staff.

Weaknesses

1. Top management is conservative in financial investments.

2. Outdated kitchen machinery.

3. Lack of cleanliness in master kitchen, partly due to outdated machinery.

4. Top management is too flexible. Today’s decisions may get changedtomorrow.

5. Too low salaries for staff.

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6. Unionism setting in the employees.

7. No autonomy to Restaurant Managers. For every small decision they haveto go to top management.

8. Too much of paper work as too many daily returns are to be submitted toheadquarters office.

9. Understaffing of some restaurants.

10. No one looks after personnel development and training needs of staff.

11. Poor facilities in restaurants for staff.

12. No reward system for better performing restaurants.

13. Some of the staff are not motivated. At the same time it is difficult to getnew staff.

14. People have to work too hard. No time for relaxation for restaurantmanagers and no compensation. Head-quarters people are less burdened.

Opportunities

1. Demand from other cities to open chain.

2. Diversification into frozen foods vegetables, bakery, cool drinks and otherareas.

Threats

1. Break-up in the partners in the event of conflict. The FFC cannot afford it.

2. Competitors may enter the market and may be able to offer betterenvironment to customers.

3. Deterioration in quality of foods with expansion.

4. Unionization of staff.

5. Increasing Fast Food restaurants in number and quality.



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Appendix III

FORCE FIELD ANALYSIS AS A DIAGNOSTIC TOOL*

Force field analysis is a systematic way of analysing any given problemsituation with the objective of identifying the possible solutions to improve theexisting situation. Force field analysis is based on the assumption that any givensituation at a given point of time can be understood as a resultant of two typesof forces acting on it. The first type of forces are called the driving forces (orfacilitating forces), and the second type are called the restraining forces (orinhibiting forces). Every situation or a given problem has an objective or an endstate which is desirable. In order to reach the end-state a number of thingsmay have to bedone. At a given point of time the movement towards the goalor the end-state can be assumed as stationary. This equilibrium can beunderstood as a resultant of the two types of forces mentioned above. Drivingforces are those that push the existing situation towards the ultimate goal thatis desired. These forces facilitate the movement towards achieving the goals.The restraining forces are those which hinder the movements towards the goalor act against it.

A force field analysis of the marketing of handloom products is presented inExhibit 1. The goal the group had in mind was to increase the marketing ofhandloom products from 40 to 80 per cent in a single year. The analysis wasdone in a workshop of Managers and other Executives in charge ofHandlooms.

* Reproduced with permission from Udai Pareek. TV Rao and DM Pestonjee.Behavioural Process in Organizations, New Delhi, Oxford & IBH, 1981, Pages 262-269.

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Appendix IV

ASSESSMENT CENTRES AT AMERICAN TELEPHONE &TELEGRAPH COMPANY

Assessment centers are used increasingly as a selection tool. They werereportedly introduced at the American Telephone & Telegraph Company in the1950s and are still in use there.

Day 1:

Orientation Meeting

Management Game: “Conglomerate” Forming different types ofconglomerates is te goal with four-person teams of participants barteringcompanies to achieve their planned result. Teams set their own acquisitionobjectives and must plan and organize to meet them.

Background Interview: An 1½ hour interview conducted by an assessor.

Group Discussion: “Management Problems”. Four short cases calling forvarious forms of management judgement are presented to groups of fourparticipants. In one hour the group, acting as consultants, must resolve thecases and submit its recommendation in writing.

Individual fact-Finding and Decision-Making Exercise: “The ResearchBudget”. The participant is told that he or she has just taken over as divisionmanager. He or she is given a brief description of an incident in which his orher predecessor has recently turned down a request for funds to continue aresearch project. The research director is appealing for a reversal of thedecision. The participant is given 15 minutes to ask questions to dig outthe facts in the case. Following this fact-finding period, he or she must presentthe decision orally with supporting reasoning and defend it under challenge.

Day 2:

In-Basket Exercise: “Section Manager’s In Basket”. The contents of asection manager’s in-basket are simulated. The participant is instructed to gothought he contents, solving problems, answering questions, delegating,organizing, scheduling, and planning, just as he or she might do if he or shewere promoted suddenly to the position. An assessor reviews the contents ofthe completed in-basked and coducts a one-hour interview with the participantto gain further information.

Assigned Role Leaderless Group Discussion: “Compensation Committee.”The Compensation Committee is meeting to allocate $8,000 in discretionarysalary increases among six supervisory and managerial employees. Eachmember of the committee (participants) represents a department of thecompany and is instructed to “do the best he or she can” for the employeefrom his or her department.

Analysis, Presentation, and Group Discussion: “The Pretzel factory”. Thisfinancial analysis problem has the participant role-play a consultant called in toadvise Carl Flowers of the C.F. Pretzel Company on two problems: what to doabout a division of the company that has continually lost money, and whetherthe corporation should expand. Participants are given data on the company andare asked to recommend appropriate courss of action. They make theirrecommendation in a seven-minute presentation after which they are formedinto a group to come up with a single set of recommendations.

Final Announcements

Day 3 and 4:

Assessors meet to share their observations on each participant and to arrive atsummary evaluations relative to each dimension sought and overall potential.



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Exhibit 1

Driving and Restraining Forces Operating on the Marketing of the HandloomProducts Analysed Using Force Field Analysis.

Rating

Very Strong 5

Strong 4

Somewhat Strong 3

Weak 2

Very Weak 1

Problem : Handloom Marketing

Goal Desired : To achieve 80% marketing of the products from the presentlevel of 40% within a year and to continue it. Figureswithin the brackets indicate the strength of the force; 5represent a strong force and 1, a weak force.

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Driving Forces Restraining Forces

1. Good foreign market Lack of improved designsavailable for handlooms (4) and colours schemes (5)

2. Liking for Indian handloom (3) High cost of yarm (3)

3. Delicacy in handloom texture High price of products (4)and still in production (3)

4. Handlooms can cater to the High cost of inputs (3)needs of small requirements (4)

5. Handlooms can cater to the Exploitation by masterneed for special designs as weavers (4)per individual requirements (4)

6. Providing greater employment Lack of publicity (4)with less investment (4)

7. Local market readily Lack of appreciation ofavailable (4) handloom products (4)

8. Availability of traditional Lack of purchasing capacity (4)craftsmenship (5)

9. Use of new fabrics in hand- Competition from powerloomloom (3) mill sectors (5)

10. Flexibility and wide range Lack of good finishingof production (3) facilities (4)

11. Availability of sales Government requirement being metsubsidy (4) from powerloom and mill sector (3)

12. Availability of export Non-availability of yarn (2)incentives (3)

13. Good demand in handloom Fluctuation of yarn price (3)garments and make-ups (3)

14. Government encouragement in Outdated looms in utilisation (4)various forms (3)

15. Preferential government Lack of market research (5)purchases (3)

16. Lack of standardisation (5)

17. Lack of quality control (5)

18. Lack of quality consciousness (5)

19. Inadequate salesmanship (4)

20. Lack of window displays (4)

21. Lack of holding capacity (3)

22. Lack of incentives to salesmen (4)

23. Lack of commission agents (4)

24. Lack of sales drives and exhibitions (4)

Exhibit 2 deals with the objective of bringing as many weavers as possible intothe hold of weavers’ cooperatives. At present weavers are reluctant to joincooperatives. It is aimed at getting at least 60 per cent of the weavers intocooperatives.



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Exhibit 2

An Analysis of the Factors Influencing Weavers in Joining the Cooperative.

Driving Forces Ratings of the strengthof the force

1. More average income (4)

2. Sense of ownership (2)

3. Participation in democratic management (2)

4. Government assistance in the form of loans and subsidies (4)

5. Package of incentives for modernisation (4)

6. Continuous employment (5)

7. Provision of housing facilities (4)

8. Training and education facilities (3)

9. Sharing of surplus in the form of dividend (3)

10. Elimination of middlemen (4)

11. Collective bargaining powers in the purchase of raw material (3)

12. Supply of quality inputs which facilitates weaving (4)

13. Open and voluntary membership (1)

14. Availability of processing facilities (3)

15. Assured marketing facilities (3)

16. Financial assistance for marketing in the form of rebate (4)

17. Institutional finance at concessional rate (4)

Inhibiting Forces

1. Ignorance about the benefits of thecooperative form of organisation (5)

2. Sentimental and traditional attachment tomaster weavers (4)

3. Financial loyalty to master weavers (3)

4. Mismanagement of cooperative societies (4)

5. Dormancy of cooperative societies (4)

6. Obligation to contribute share capital (3)

7. Non-availability of consumption finance (5)

8. Weavers lured by higher wages by master weavers duringpeak season (3)

9. Strict insistence of quality control in cooperative societiesand likely discontinuance of work for substandard work (3)

10. Compulsory deduction from wages for contribution tothrift fund (2)

11. Politicisation of managements of cooperative societies (2)

12. Economic non-viability of cooperative societies (4)

13. Availability of finance under DPI scheme (4)

14. Lack of interest shown by the government in managingcooperatives (4)

15. Lack of managerial capabilities in those managing cooperatives (4)

16. Lack of personal touch (5)

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New Forces (Brainstorming)

1. Enrolment of project weavers wherever feasible.

2. Provision of consumption finance from government through cooperativesocieties.

3. Obtaining contribution by government to the thrift fund contribution byweavers.

4. Director of handlooms to be vested with all powers of Registrar ofCooperative Societies in relation to Weavers Cooperative Societies

5. Fixation of minimum wages for weavers.

6. Extension of Bonus Act to handloom weavers.

7. Extension of gratuity and old-age benefits to weavers.

8. Extension of ESI benefits to weavers.

9. Strict enforcement of reservation orders.

10. Director of Handlooms to be delegated with enforcement powers in relationto reservation orders.

11. Compulsory purchase by government and semi-government organisationsfrom cooperative societies.

12. Liberalisation of managerial subsidy and caderisation.

13. Matching contribution for rebate by centre for the duration the states give.

The above analysis was done by a group of managers employed in thehandlooms sector. After the analysis the managers decided that they can not doanything about the following forces as they are not within their control:

Driving forces: 7, 8, 9, 10, 13, 16 and 17.

Inhibiting forces: 2, 3, 6, 7, 10 and 11.

From among driving forces they chose the following forces for strengtheningfurther: 3, 11, 14 and 15.

They also chose the following inhibiting forces for weakening them:

1, 4, 8, 13, 14; 15 and 16. In addition they decided to explore the possibility ofadding some of the new forces suggested. On the basis of these further actionplan were worked out for implementation.

The forces identified in force-field analysis may have different strength. Someforces may contribute highly towards the movement in the forward orbackward direction in achieving the goal. Some forces may be very weak.Some forces may be irreversible or unchangeable. Some other forces may beeasy to change.

In using force field analysis as a technique of organisational diagnosis andproblem solving the following steps are followed:

1. Define the ultimate goal or objective or the desired end-situation.

2. Locate the existing situation diagramatically on a straight line where one endof the straight line represents the desired goal state and the other endrepresents starting point.

3. List the various forces that are blocking the movement towards its goal andthose that are acting against the movement. Brainstorming in group settingshas been found to be very useful in making an exhaustive list of restrainingforces. As many forces as possible should be listed without debate. There



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could be differences of opinion on some but it is useful to list evencontroversial forces.

4. Make an exhaustive list of driving forces as above using brainstormingtechniques. Some of the driving forces may be just opposites of therestraining forces.

5. Using brainstorming techniques add as many new forces as possible to theexisting list of driving forces. At this stage do not think of the possibilities.It is useful to suspend rationalistic thinking in brainstorming and merely listthem.

6. Quantify the strength of each forces (both restraining and driving forces) a5-point scale (where 5 indicates that the force is very strong and point 1indicates a weak force in the direction indicated).

7. Remove all the forces one by one through discussion about which theproblem-solving group has no control or can do nothing about it.

8. Select those driving forces which are very weak. Identify the mechanism ofstrengthening these forces through discussion.

9. Select new forces which could be added and identify the mechanism ofintroducing these forces through discussioin.

10. Select the strong forces among the restraining forces. Identify themechanisms of weakening these forces.

11. Identify the mechanisms of removing some of the restraining forces.

12. Work out an action plan to introduce change to bring out the desired end-state.

Force field analysis does not require any special skills for using it. It is asystematised approach towards problem solving. The use of force field analysisis groups has been found to be an effective way of bringing about change.There have been several experiments conducted in the past which indicate thatthrough a systematic analysis of this kind, change can be brought in easily.

Managers and administrators when faced with problems or when they find thatthey have not been able to achieve targets they desired, it is useful to have agroup meeting of their staff or team members and do a force field analysis ofthe situation. They should be prepared to spend at least half a day to one dayon this. Familiarisation with brainstorming techniques would help greatly inconducting such sessions effectively. Force field analysis helps in systematicallyanalysing the problems and the invovement of those who are expected toimplement change in identifying the change strategies increases commitment. Ithas other advantages of increasing morale, getting people to know to solve theirproblems at their levels, enjoyment of work and so on. A great degree ofresistance to change can be countered with this techniques.

The driving and restraining forces are diagnostic dimensions of the problem orsituation. This technique could be used for a specific situation or for generaldiagnosis of an organisation.

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Block

5ORGANISATIONAL DEVELOPMENT AND CHANGEUNIT 12

Organizational Development (OD) 5

UNIT 13

Alternative Interventions 20

UNIT 14

Process of Change 55

UNIT 15

Change Agents: Roles and Competencies 80

UNIT 16

Institution Building 117



OrganisationalDevelopment and Change

2






IGNOU, New DelhiMr. Parth SarathiAGM Course Co-ordinators:BHEL, NOIDA Dr. Srilatha



July, 2004 (Revision)


ISBN-81-266-1303-3

All rights reserved. No part of this work may be reproduced in any form, by mimeograph or anyother means, without permission in writing from the Indira Gandhi National Open University.


Printed and published on behalf of the Indira Gandhi National Open University, New Delhiby Director, School of Management Studies.




Printed at:

3

BLOCK 5 ORGANISATIONAL DESIGN,DEVELOPMENT AND CHANGE

This block consists of five units.

The first unit deals with Organisational Development (OD) in which it hasdiscussed about objectives and substances of OD.

The second unit describes different OD intevention techniques.

The third unit i.e. process of change discusses the types of change, process ofchange and resistance to change.

The fourth unit deals with various roles of change agents and theircompetencies.

The last unit of the block describes how an organisation becomes aninstitution.


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5

Introduction toMicrobesUNIT 12 ORGANIZATIONAL

DEVELOPMENT (OD)Objectives

After studying this Unit, you should be able to understand :

what is Organizational Development (OD) – its definitions,

the objectives of O.D.

stages of O.D.

Structure

12.1 Introduction

12.2 Definitions

12.3 Stages of Organisation Development

12.4 Essentials for Success of Organisational Development

12.5 Summary



12.1 INTRODUCTION

There is a lot of similarity between an organization and an organism (livingthings). All organisms take birth, survive, grow, impact the environment,stabilise after some time and the start decaying and ultimately die.Organizations also take birth and undergo similar stages as the living organismsexcept the last two stages. If appropriate steps are taken, the last two stagescan be avoided in case of organizations.

Today the vulnerability of the organizations has increased. Due to rapidknowledge and technology explosion, many organizations are becoming unviablewithin no time. A number of options and new features are available tocustomers, hence product-life has shortened. Newer approaches to costreduction, quality improvement and delivery time reduction are posing continuousthreats. Rapid changes in economic, political and social environment arebringing new types of problems. Thus, modern organizations have no optionother than continuously striving for enhancing their coping abilities. A varietyof interventions under the umbrella of ‘Organization Development’ are availableto the modern organizations for remaining effective and growing in the rapidlychanging environment.

12.2 DEFINITIONS

Organization Development has been defined differently by different people.Some of the definitions are given below.

a) Warren Bennis

"A response to change, a complex educational strategy intended to change the beliefs,attitudes, values and structure of organizations so that they can adapt to newtechnologies, markets and challenges and the dizzying rate of change itself."

b) Richard Beckhard

An effort (1) planned (2) organization-wide (3) managed from the top to (4)increase organization effectiveness and health through (5) planned interventions


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in the organizations’ ‘processes’ using behavioural science knowledge. Suchefforts are usually long term (at least 2-3years) action oriented (rather thanmerely training) focused on changing attitudes and/or behaviour throughexperience based learning activities primarily in a group setting.

c) Wendell L. French and Cecil H. Bell

OD interventions are sets of structured activities in which selectedorganizational units (target groups on individuals) engaged with a task or asequence of tasks where the task goals are reflected directly or indirectly toorganizational improvement. Interventions constitute the action thrust - of OD,they “make things happen” and also, “what‘s happening.”

d) Udai Pareek

A planned effort initiated by process specialists to help an organization develop(a) its diagnostic skills (b) coping capabilities (c) linkage strategies (in the formof temporary and semi-permanent system) and (d) a culture of mutuality.

e) Thomas G. Cummings and Edgar F. Huse

A system wide application of behavioural science knowledge to the planneddevelopment and reinforcement of organizational strategies, structures andprocesses for improving an organization’s effectiveness.

f) National Training Laboratories, U.S.A.

Using Knowledge and Techniques from the behavioural sciences, OrganizationDevelopment attempts to integrate individual needs for growth and developmentwith organizational goals and objectives in order to make more effectiveorganization.

12.3 STAGES OF ORGANIZATION DEVELOPMENT

OD efforts are made in stages. The details of activities in each stage dependon the model being followed. Three models that may be mentioned are:

i) Lewin’s Change Model having three stages: Unfreezing, Movement andRefreezing;

ii) Planning Model — with the stages: Scouting, Entry, Diagnosis, Planning,Action, Stabilization Evaluation and Termination; and

iii) Action Research Model — comprising the stages: Problem Identification,Inviting a Behavioural Science Expert, Data gathering / Preliminarydiagnosis, Feedback to groups, Joint Diagnosis of Problem, Action andData gathering after Action.

For the sake of more clarity, the stages followed in the OD efforts (a largeorganization) have been shown in Figure 1.

12.3.1 Initiation

This stage consists of the following substages.

a) Feeling the need

Organization Development efforts are mainly initiated when a top managementperson feels the need. Some times the need is felt when organization is doingvery bad and sometimes when the organization is doing very good. Forexample, in a large public sector organization, the need was felt by the headwhen there was continuous problems in quality of the products. It has beenobserved that in many organizations, felt the need when the organization wasstriving to define its vision and mission for coping with the future challenges.

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Sometimes the need is felt by seeing other organizations especially competitorsgrowing and prospering. Need has also been felt in some organizations whenthey were making strategies for turn around or when a consultant makespresentation giving success stories of other companies. If need is felt bysomebody at the lower levels, he has to make efforts for convincing the seniormanagement, because unless the CEO is convinced and assures active support,OD activities should not be initiated.

b) Inviting Consultants

Once the need is felt, consultants are invited. Consultants may be internal orexternal. Due to low knowledge level of clients, some times consultants whohave a good name in management field but are not expert in organizationdevelopment get entry. Therefore, selecting a consultant for organizationdevelopment is very important.

‘Organization Development’ is a Behavioural Science based approach, hencethe first requirement is that the consultant should possess an indepth ‘processskill’ understanding behavioural processes. ‘Accredited Behavioural ProcessFacilitator’ therefore is the most desirable requirement. This is more sobecause Organisation Development’ approaches are largely based on ‘ProcessConsultancy’.

c) Identifying and Clarifying the Need

The consultant initiates discussions for ascertaining what the client would like tochange in his organization and what help is required from the consultant.Interaction may be held with the Chief of the Organization and a few other topmanagement persons for identifying and clarifying the need. In some cases theCEO is found to be very clear on some needs and in some organizations theCEO completely depends on the consultant for identifying and clarifying theneeds. Unless and until the need is not truly felt by the CEO, it is advisablenot to initiate organization development efforts.

Figure 1: Stages in Organization Development Efforts – A General Model

Initiation

Diagnosis

Planning & Design ofInterventions

Carrying out the Plan(Making Interventions)

Evaluating Results

Termination or Going forNext Phase

OrganizationalDevelopment (OD)


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For clarifying the need a number of methodologies may be used like,environment analysis - internal and external, SWOT analysis, scenario building,developing Mission, Vision, Values and Strategies, comparison with competitorsetc. Success stories of successful organizations and Satisfaction surveys arealso some times used.

d) Exploring Readiness for Change

Inspite of the strongly felt need, it is essential to explore the readiness of theorganization to change. A process facilitator may call a meeting / workshop ofsenior people and on the basis of observations on the interaction, he can get anidea of the readiness to change. When too much fascination for the status quois sensed, fear and apprehensions are strongly expressed, case of failure arecited more than success stories, resource scarcity is repeatedly presented. ODshould not be initiated in a hurry.

Some consultants conduct a few workshops for assessing the readiness.Instruments/questionnaires are also used by some consultant. An approachdeveloped by J William Pfeiffer and John E Jones may be suggested. Thisapproach is based on 15 indicators which they have developed in the form of acheck list (instrument). The indicators are being enumerated in Table 1 underthree broad classes.

Table 1.15 Indicators for Readiness to Change

General Considerations

– Size of the organization

– Growth rate

– Crisis (situation)

– Macro economics

– OD history

– Culture

Resources

– Time commitment

– Money

– Access to people

– Labour Contract limitations

– Structural flexibility

People Variables

– Interpersonal skills

– Management development

– Flexibility at the top

– Internal change agents

Source : ‘OD readiness’ by J.W. Pfeifer and John E Jones’ in ‘The 1978 AnnualHandbook.

This instrument / check list can be served to a number of people in theorganization, including the top management and the findings should bediscussed. This will not only give an idea about the readiness, but also raisethe awareness towards some of the crucial pre-requisites.

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e) Formulate Contract

The role of the consultant and the client, and objective of the project, resourcesrequired by consultant, the outcome desired by the client — all the importantaspects are clarified and then an MOU or contract between the client andconsultant is formulated for carrying out the OD interventions. Financialimplications should also be clarified at this point.

12.3.2 Diagnosis

Diagnosis is the process of assessing the functioning of the organization ordepartments to discover sources of problems and areas of improvement(Cummings and Huse, 1989). This stage consists the following substages.

a) Problem Identification (Preliminary)

Problems may be of many types. Some may be hidden and some apparent.Usually, the symptoms are visible but not the causes or problems. A problemmay be there in any one of the organizational component – task, structure,technology, human resources or prevailing in more than one component. Manya times, the problems are experienced in the environment ( internal or/andexternal).

Problems are situations in which we experience uncertainty or difficulty in whatwe want to achieve. Problems arise when obstacles prevent us in reaching thedesired objective.

In problem identification, there is a high possibility of taking symptoms asproblems. Some managers have a strong tendency to look at problems fromone (technical / functional) view point only and thus the multi-disciplinary aspectof problem is ignored. It is also a widely prevalent fact that managers,particularly those having more experience have pre-conceived ideas about thecauses of problems but they may not be knowing the real problems. Thethings in the foreground will be fully visible only when there is a background,therefore, sometimes the study of the background helps in understanding theproblem.

How the problem is seen, experienced and perceived by different people in theorganization is very important for its solution.

The preliminary problem identification stage includes gathering and analysis ofinformation on the organization’s activities and performance. This can be doneby going through various reports including annual reports, types of grievancesraised, industrial relations related data etc. The most important data comesthrough discussions with Senior management personnel, Trade Union leaders,Workers, Middle management and supervisory levels. The Consultant at thisstage is not interested in details but is trying to understand the trends,relationships, communication, decision-making, circles of influences etc.

Consultants use a number of approach for identifying important problems. Inone organization, the Consultant first had a long discussion with the CEO askinghis perception of problems the organization was facing. He identified theproblems mainly in the background of what he wanted the organization toachieve but the organization was not achieving (i.e. gaps). When theconsultant wanted to know the causes of the gap, some of the problem areaswere identified. He subsequently talked to a few persons at different levels inthe organization and could know about various problems.

In another organization, a Top Management Workshop conducted in whichindividuals first identified problems by writing on slips (confidentially) and then



10

the slips were collected and segregated. Problem identification workshops wereheld for other levels also and then a few commonalties and trends wereidentified.

One company tried to identify problems by a SWOT Analysis. While otherspreferred to make comparison with competitors and identify problem areas, orgoing for a functional approach — function by function SWOT analysis. Theuse of sophisticated techniques like ‘FOCUS Groups’ and ‘Play Card Method’is also increasing gradually.

Thus, a variety of approaches and methods are used for initial problemidentification — the main purpose is to identify some crucial areas for furtheranalysis.

Identification of Organizational Need

Does the organization need OD interventions? At this stage, this isascertained. The commitment of the CEO is crucial; the willingness of theSenior Manager team is also crucial because OD is a ‘Top Down Approach’.In one organization, after a long discussion with the Consultant, the CEO toldto go ahead if the consultant experiences the need and the consultant did notinitiate OD efforts in the company. Why? Because he did not sense a strongneed for OD in the CEO.

The Consultant has to make sure, whether OD is the right intervention forsolving the problems of the organization. Only after making sure he shouldproceed ahead.

Identification of Areas for In-depth Analysis

OD is costly intervention. On the basis of preliminary problems identification,and resources likely to be made available, areas for in-depth analysis may beidentified. Too many problems should not be taken up in the beginning.

b) Diagnosis

In OD, organizational diagnosis is a collaborative process between organizationalmembers and OD consultant leading to collection of relevant information,analysis and drawing inferences for planning actions and interventions.

A number of diagnostic models explain the characteristics of organizationaldiagnosis. But the ‘Systems Model’ showing organization as an open system isquite fundamental. Apart from the three components (Input, Processing andOutput).

Input Processing Output Outcome

Feedback

Figure 2 : Systems Model

Feedback and interaction with boundry is also very important from diagnosispoint of view.

Indepth diagnosis can be designed for the critical problem areas identified in theprevious steps. However, normally organizational systems can be diagnosed atthree levels. The diagnosis may focus on anyone or all of the components aseach level (Table 2).

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Table 2 : Levels of Organisational Diagnosis

Organizational level :

– Goals– Policy– Strategy

Input – Environment– Resources

Processing – Task(Conversion) – Structure

– Technology/Systems– Human Resources– Culture

Outputs – Effectiveness/Efficiency– Market share– Return on Investment– Quality– Delivery (timeliness)– Cost– Satisfaction of customers– Benefits to Society or

Outcome – Impact on Ecology /Environment etc.

Group level :

Input – Organizational design– Organizational norms

Processing – Task Structure– Norms of Performance– Interpersonal relations– Other characteristics of Individuals

Output – Quality of decisions– Team effectiveness– Cohesiveness– Collaboration

Outcomes – Organizational environment– Satisfaction, pleasure in Work.– Achievement orientation– Customer satisfaction

Individual level :

Inputs – Organizational design– Workgroup design– Personal characteristics of employees.

Processing – Job content/requirement– Matching of Job and employee profile.

Task identitySkill varietyTask significanceTask identityAutonomy / Feedback

Output Personal effectivenessPerformance levelQuality of performance

Outcome Job SatisfactionMotivation / AchievementMotivationCreativity / Risk takingPersonal growth etc.



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From the above mentioned Table, or on the basis of preliminary diagnosis, areafor in depth diagnosis is identified. For example, customer satisfaction, poormorale and motivation, Quality / Delivery of Products and Services,Organizational Environment, Managerial / Leadership styles etc.

c) Design of Data Collection / Survey

A variety of data collection methods may be used for this purpose. Some areenumerated as:

Questionnaires;

Interviews; and

Observations.

Usually, a mix of these three are used

In designing a diagnosis, it is essential to collect data both in respect of contentand process aspects. Whatever method is used, it should be designed properlyand tested and validated before actual collection. It is advised to use statisticalmethods in determining the sample size. A number of organizational diagnosis -instruments are available through various sources — which may be successfullyused. A few of the approaches or organizational diagnosis have been brieflysuggested in the book “Planning, Auditing and Developing Human Resources,By Parth Sarathi.”

d) Analysing the Data, Making Inferences

The data which has been collected through various techniques are to beanalysed systematically. A number of statistical methods like frequencydiagrams, scatter diagram, run charts, correlation and regression analysis areuseful for quantitative analysis.

For qualitative analysis techniques like Force Field Analysis, Fish-bone diagrams(root cause analysis), Affinity diagram, Why-Why diagram, How-How diagramare very useful.

e) Sharing of Diagnosis and Feedback

OD differs from other interventions in one way that the data, after analysis isfeedback to the population from where it has been collected.

For this, ‘Survey Feedback’ meetings are organised where the analysis of thedata collected is presented. The audience is encouraged to give theircomments / reactions. It serves two purposes — the credibility of OD groupis established because they are showing what they have collected, analysed andinfered. It also provides opportunity for seeking clarifications andsupplementary data to test the inferences. This is a very powerful interventionbecause the persons get a picture of the organizational issues, perceptions andfeedback on individual and group behaviour.

Survey feedback intervention includes of collection of data / information aboutorganizations and giving feed back in the form of the data/information tomanagers and employees so that they can diagnose problems and developaction plans for solving them. Generally, questionnaires (standard or customdesigned) are used for data collection. The salient features of findings areshared with people in groups starting from Top Management to the lowerlevels. Both content and process observations emerging during this sharingsession are noted down and further clarity is obtained by seeking more datawhenever required.

Certain precautions are taken while interacting — mostly those which are takencare of while giving feed back to an individual. The analysis should

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(i) represent reality, (ii) raise some anxiety and (iii) be descriptive rather thanevaluative.

For example, an organizational diagnosis was carried out in an organization andthe information contained in Table no. 3 was presented. Organizational andpersonal pride, performance excellence and Team Working and Communicationwere found to be the weakest dimensions, which was readily agreed by mostof the groups, but created some anxiety considering the impact on the future ofthe organization. A few senior executives and also a few from the personnelfunction gave some defensive replies which were thoroughly discussed.

Table 3 : Organizational Norms Score and Ranking

Norm Average Score

1. Colleague & Associate Relationships VG AA + 43.692. Customer & Client Relationships G AA + 37.863. Innovativeness & Creativity G AA + 34.064. Leadership & Supervision G BA + 27.45. Profitability & Cost Effectiveness G BA + 27.396. Candor & Openness G BA + 27.157. Training & Development G BA + 26.698. Team Work & Communication G BA + 26.429. Performance & Excellence G BA + 21.46

10. Organizational & Personal Pride P BA + 17.04

12.3.4. Planning and Design of Interventions

An intervention is a set of structured activities in which selected target group(individual, groups, organizational unit) engage with a task or sequence of taskswhere the task goals are related directly or indirectly to organizationalimprovement (French & Bell, 1983).

In other words, OD interventions refer to range of planned, programmedactivities in which people participate during the cause of a formal OD effort.

The OD interventions are focused on Individual, Dyads, Triads, Teams andTotal Organization. Some of these are enumerated in Table 4.

Table 4: Levels of OD Interventions

Level of Intervention Intervention

Individual — Education, Training for improving knowledge,Skills and Attitudes.Coaching and CounselingSensitivity Training (T-Group Training)

Dyads/Triads — Interviews (for problem diagnosis, actionplanning)

Process Consultation (for interpersonalrelations, Communication) and Conflictresolution.

Group/Team — Team BuildingImproving communicationsSurvey feedbackConflict Resolution

Teams/Groups — Conflict resolutionOrganizational mirroring

Organization — MBO, QWL, TQM, Strategic Planning,Change (Values and beliefs, cultures etc.)



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OD was carried out successfully for over a decade in a large Public SectorEngineering Company. Organizational issues, which emerged, may be presentedhere for illustration:

Strategic Management Issues

Product mix - Classification of products, differential strategies for future.

Competitiveness

Customer Satisfaction

Coping with future change in environment

Organizational values / objectives

Relationship with collaborators

New products

Technical / Technological Issues

Competing on Technology front

Upgrading of machines and technology

Technology vs. Human Resource costs

Readiness for new products

R&D vs. Technology acquisition

Quality, productivity as competitive edge.

Structural

SBU / or Product Manager structure or Functional structure.

Manufacturing Companies or Project Management company.

Business Sectors - relationships

Hierarchical differentiation and interaction

Work design

HR Issues / HR Process Issues

Morale and Motivation

Retention of experts

Setting goals

Rewards

Career / Succession Planning

Leadership

Communication

Interpersonal relation

Problem Solving

Finance / Economic Issues

Unrealised funds

Huge inventory

Rejects / Return from customers

Investment vs. revenues

Resource Crunch

Unproductive assets

Delay in payments

Stores in transit

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All of these issues may not be resolved only through OD intervention, but theseissues can be brought to surface, a common understanding can be established,issues / sub issues can be prioritised and planned efforts for resolving themmay be made under OD framework. This helps in getting the commitment andinvolvement of people in resolving the issues.

Some of the typical OD interventions used in resolving the issues may beenumerated as :

Strategic Interventions

Self designing organizations, Culture change, Open system planning, Trans-OD,Strategic change.

Techno-Structural Interventions

Differentiation and integration

Structures — formal, collatral

Work design

Quality of work life

HR Process Interventions

Goal setting

Rewards system

Career Planning Development

Stress Management

T-Group

Third party intervention

Team Building

Process Consultation

Survey feed back

Organizational confrontation meeting

Normative approach

Inter-group relations

The activities under the ‘Planning Design and Intervention’ stage are brieflyenumerated as :

a) Selecting Areas of Improvement

After sharing the feed back, the working team of OD sits together andprioritizes areas for improvement. For example, after diagnosis and feed back,the following areas were identified for work in one company.

— Achievement

— Team work

— Participation

— Raising Quality Awareness

The areas are not selected randomly. Involvement of top management andsome representatives of the involved areas is essential at this stage.

b) Setting Goals

OD interventions are time bound. What output/outcomes are expected in eachof the selected areas need to be clearly identified. They should be specific,



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measurable, flexible and time bound. The criteria for understanding andassessing the accomplishment of goals and methods of assessment andmeasurement should also be developed before making the interventions.Complete clarity and agreement on the above is a must.

c) Developing Alternative Strategies / Interventions

For achieving the goals, alternative interventions are to be designed. Someinterventions may be common for all or many goals and some may be specificto one or few goals.

d) Selecting Alternative Strategies

Each of the proposed alternatives are evaluated carefully to select the mostappropriate one. Some of the appropriate interventions will be situationallydetermined, but considering the following aspects will be helpful.

The key variables in the relationship that will determine the success orfailure of the intervention.

The Behavioural Science Theories and concepts which will be used inprocess of understanding the organization.

The basic elements of the organization (health, culture, climate) andinterventions / techniques (e.g. T-Groups, team building, organizationalmirroring, confrontation sessions) to be used to help the organization solveits problems.

There should be complete agreement on the intervention selected and theresources and competencies available / to be made available should also beconsidered.

e) Develop Implementation Plan

A plan for implementation of the intervention should be chalked out earlyidentifying the activities, lead persons, facilitators, resources required, helprequired and time frame.

12.3.5 Carrying out the Plan: Making Interventions

This stage consists of the following substages.

a) Preparing the Team

For carrying out the interventions, a team of internal resource persons isprepared. Ideally, this is a multi-disciplinary team which would make theinterventions and help in its successful implementation. The internal resourcepersons should be skilled in Human Process facilitation and should haveundergone intensive training programmes.

b) Conducting the Activities

Whatever interventions have been planned, are to be implemented. In manyareas, employees would pose resistance which is to be overcome. If theapproach appears to be inadequate or inappropriate amends are to be made.The experience are to be documented highlighting both process and contentaspects. Regular interaction with the committee / task force members andConsultants is very essential.

c) Mid Course Evaluation

After interventions have been made, periodic evaluation is required forascertaining whether the interventions are bringing desired results. If yes, thenfurther follow up is required. If not, it must first be examined whetherinterventions have been made as per the plan. If interventions have been madeas per the plan but are not giving the desired results, the causes must be

17

examined and if need, alternative interventions should be designed andintroduced.

12.3.6 Evaluating the Results

After all the interventions have been made, the results should be evaluated.The criteria developed earlier should be used as the reference points. A varietyof methodologies such as comparison of the actual results (tangible) with theplanned results, interviews and survey through questionnaire and workshop etc.may be used as per the need.

The members of the OD Task Force jointly with the Top Management andConsultants should decide the future course of action.

12.3.7 Terminating

OD intervention should be terminated after achieving the desired results. Thetermination should be done in a planned manner. If the Organization decides togo for the next phase, again the cycle should be repeated.

12.4 ESSENTIALS FOR SUCCESS OFORGANIZATIONAL DEVELOPMENT

The essentials for success of OD are mentioned below:

1) Perception of organizational problems by the Top Management and Keypersons in the organization.

2) The acceptance of the fact by the Top Management / CEO that hisprimary accountability is ‘Profit’ but his primary responsibility is OD.

3) A belief in the Applied Behavioural Science profession, and willingness toinvite a consultant.

4) Active involvement and support of Top Management.

5) Willingness to do Action research: conceptualizing — implementing —evaluating.

6) Patience in waiting for results — adequate awareness of (Behavioural)Processes and emphasis on improvement of Process aspects.

7) A genuine belief in Human Resources.

8) An OCTAPACE climate (Udai Pareek, 2002)

– Openness

– Confrontation

– Trust

– Authenticity

– Pro-action

– Autonomy

– Collaboration

– Experimentation

9) Success in initial OD efforts.

10) Belief in Training and Development.

11) Involvement of Line Managers and HR Managers — company’s HRPolicies congruent with OD philosophy and values.

12) Identification and Development of Internal resource persons(Facilitators for OD)



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13) A high level committee of Top / Senior level managers who areknowledgeable in their functions, managerially competent, optimistic, havinga sense of inter-dependences and urgency, clarity and belief in the superordinate goals of the organization and a learning attitude.

14) Willingness of the members of the organization to change their thoughts andfeelings as a result of OD efforts.

15) A belief in searching for the better way of doing / managing andadaptability to change.

16) Interventions should aim at change in the organizational climate /environment as well as the social processes within the organization.

17) The interventions should be based on scientific diagnosis and parameters formeasurement of success should be clarified in advance.

18) Continuity of OD efforts even after change in Top Management.

19) No imposition of any thing — the interventions should be chosen by theclient from amongst many alternatives.

12.5 SUMMARY

To cope with the changing business scenario, a variety of interventions areavailable under the umbrella of OD for the modern organisations. In this unitnumber of definitions of OD has been discussed also general model of ODefforts having six steps has been given.


1) Define OD and what are the objectives of OD?

2) Discuss the stages of OD.

3) What are the essentials for sucess of OD?


Bennis, Warren. Organization Development, its nature, origin andprospects, Addison Wesley (1969).

Beckhard, R. Organization Development: Strategies and Models,Addison Wesley (1969).

French, Wendell L. Jr. Cecil, H Bell. Organization Development, PrenticeHall of India Pvt. Ltd., New Delhi (1983).

Pareek, Udai, “The concept and the process of organization development”,Indian Journal of Social Work (1975), 36(2).

Chattopadhyaya, Somnath & Pareek, Udai Managing OrganizationalChange, Oxford & IBH publishing Co. (1982).

Cummings, Thomas G. & Huge, Edgar F. Organization development andchange (4th Ed.) West Publishing Co. New York (1989).

Adams, J.A. Theory and Method in Organization Development: AnEvolutionary process. Va: National Training Laboratories, Institute ofApplied Behavioral Science 2,1 (1967).

Kurt Lewin. Field theory in Social Science, Harper and Row, New York(1951).

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Pfeiffer, J.W Jones, E.J. “O D Readiness,” The 1978 Annual Handbookfor Group Facilitators, University Associates, California (1978).

Sarathi, Parth Planning, Auditing and Developing Human Resources,Manak Publications, New Delhi (2002).

Alexander Mark. “Organizational Norms Opionnaire”, The 1978 AnnualHandbook for Group Facilitator (Ed. Pfeiffer, J.W John, E. Jones),University Associates California (1978).

Pareek, Udai “Organizational Culture: OCTAPACE Profile,” TrainingInstruments in HRD and OD (2002).



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UNIT 13 ALTERNATIVE INTERVENTIONSObjectives

After studying this unit, you should be able to:

understand the meaning of an OD intervention,

learn the range of OD interventions,

learn deeply a few selected HR based interventions.

Structure

13.1 Introduction

13.2 OD interventions: Nature and Rationale

13.3 Survey Feedback

13.4 Process Consultation

13.5 Confrontation Meetings

13.6 Organizational Mirroring

13.7 Team Building

13.8 T-Group Training

13.9 Role Analysis

13.10 Summary



Appendix 1 : An example of Process Consultancy

Appendix 2 : Team Building Programme - A Case Study

Appendix 3 : Formats for Role Analysis

13.1 INTRODUCTION

During the course of an OD programme there are several occasions in theorganisation to collect data, initiate action, observe processes and providefeedback. All these activities are planned and carried out jointly between thechange agent and client organisation; and in OD language are calledinterventions. Interventions are the action thrust of OD and collectivelycomprise the OD strategy in a programme of organisational renewal. Astrategy is basically aimed at developing organisational climate, ways of workand relationships that will be congruent with the future needs. Needless to say,specific interventions are designed only after the overall strategy, has beendecided based upon a systematic diagnosis.

13.2 OD INTERVENTIONS :NATURE AND RATIONALE

OD interventions are sets of structured activities in which selectedorganizational units — individuals / groups engage with a task or sequence oftasks where the task goals are related directly or indirectly to organizationalimprovement. Interventions make things happen and are “what’s happening”(Wendell L. French and Cecil H Bell Jr, 1983).

Intervention is defined as a behaviour which affects the ongoing socialprocesses of a system (Beckhard, 1969).

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Different experts have tried to classify OD interventions in their own ways andit is not possible here to present all classifications. A few approaches whichhave helped in understanding the nature and rationale of interventions aredescribed as below.

1) Robert Blake & Mouton the pioneers of Grid OD, classifyOD interventions in the following categories.

Theory Interventions

Theory and concepts especially in the area of Applied Behavioural Science areused to explain the behaviour and the underlying assumptions. This provides asuitable background for understanding some of the behavioural processesemerging during the interventions.

Discrepency Interventions

Many a times a contradiction, discrepancy or gap is observed in the behaviourand / or attitude of the people in the organization. In such situations,discrepancy interventions are used to focus attention and exhibit the matter.

Procedural Interventions

Such interventions focus on the critical appraisal of systems and proceduresindicating how something is being done. This is aimed at examining whetherthe best methods / systems have been used.

Relationship Interventions

Inter-personal relationships are crucial in the organizational processes. Suchinterventions focus on analyzing the relationships and evolving ways and meansto create conducive relationships.

Experimentation

Before taking a final decision, the proposed changes are tested for knowingtheir consequences in a small area. The decisions may be modified or retainedafter reviewing the results/ outcomes.

Dilemma Interventions

In dilemma interventions, an imposed or emergent dilemma is used to enableclose examination of the possible alternatives involved and the assumptionsunderlying them.

Perspective Interventions

These are aimed at drawing attention away from immediate actions anddemands, and allow a look at the historical background, context and futureobjectives in order to assess whether or not the actions are still functional.

OD INTERVENTIONS

Culturalintervention Theory

intervention

Discrepancyintervention

OrganizationalStructureintervention

Perspectiveintervention

Dilemmaintervention

Experimentationintervention

Relationshipintervention

Proceduralintervention

Figure 1 : OD Interventions

Alternative Interventions


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Organizational Structure Interventions

By examination and evaluation, structural causes for organizationalineffectiveness are identified and suitable interventions made under suchinterventions.

Cultural Interventions

Such interventions help in examining the traditions, precedents and practicesexisting in the organization’s culture and appropriate efforts are made to bringdesired changes.

2) Blake & Mouton further developed a typology called Consulcube, a 100-cell cube depicting all consultation situations. The three dimensions of thecube are —

What the consultant does:— the type of interventions consultants use:

– Interventions used to give client a sense of worth, value,acceptance and support - acceptant.

– Interventions for helping the client generate data and information inorder to restructure the client’s perceptions - catalytic.

– Interventions for pointing out the value / attitudinal discrepancies inthe client’s beliefs and actions - confrontation.

– The interventions telling the client what to do to solve the problem -prescription.

– Interventions used for teaching the client relevant behaviouralscience theory so that the client can learn to diagnose and solve hisor her own problems.

The focal issues causing the client’s problems.

– Power - authority

– Morale / cohesion

– Norms / Standards of conduct

– Goals and objectives etc.

The targets of change

– Individual

– Group

– Inter group

– Organization and larger social systems.

3) Another simple approach to classification is based on the focus on

i) Individual - group; and

ii) Task process.

Individual - group:– the interventions are aimed at individual learning,insight and skill building.

Task - Process:– The interventions focus on task, what is being done or

Process – How it is accomplished? How people relate to each other andwhat processes and dynamics are occurring ?

4) Another way of classification is HR based interventions, Techno- structuralInterventions and Socio-technical interventions. In the table given below allthe interventions except those in italics are HR based interventions.

5) If all the approaches are combined together, OD interventions can beclassified into the following typology may be with some overlaping.

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Table 1 : HR Based Interventions

Individual. Dyads/ Teams Inter TotalTriads Groups Group Organization

Role Analysis * *

T-Group (Sensitivity Trg) * *

Education & Training &Development * * * *

Job Enrichment * *

Grid OD * Ph I * PhI,II * Ph III * Ph IV,V,VI

Transactional Analysis * *

Process Consultation * * * * *

Third party peace making *

Team Building / (Task orProcess focused) * *

Survey Feedback * * *

Socio technical system *

Techno-structural activities *

Confrontation meetings * * *

Organizational Mirroring * *

Strategic Planning Activities *

Life planning, career planning *

OD has tremendous potential — it may encompass all change efforts andenhance the competence of the organization in facing challenges. Being aBehavioural science based approach, developing internal resource personassumes top priority. It is a medium to long term intervention, hence no magicin the short term should be expected. This enhances the self-renewing abilityof the organizations. OD efforts ideally take care of all aspects of growth anddevelopment. However, a proper balance and interrelationship betweenOD(HRD) efforts and strategic management efforts should be ensured to havea growing, developing ,healthy and dynamic organization.

OD is essentially a Behavioural Science based approach, therefore humanprocess interventions are the core OD interventions. Some of theseinterventions are quite unique but many have some overlap with others. It isvery difficult to describe the interventions, because variations are common. Inthis unit, an attempt has been made to present the salient of some of thecommonly used Human Process interventions. A few of these interventionshave been described with the help of actual examples also. The interventionsdiscussed here are:

— Survey feedback;

— Process Consultation;

— Confrontation meetings;

— Organizational mirroring;

— Team building;

— T-Group training; and

— Role analysis.

Each of the interventions have been briefly described below.



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13.3 SURVEY FEEDBACK

This is the most widely used OD intervention involving data collection (throughquestionnaire), analysis and feedback of findings to the organizational members.Through Survey feedback, the managers and employees are provided withanalysis of data collected from them for better diagnosis, prioritization of issuesand planning of further activities. The steps are described below with anexample.

i) Feeling the Need of the Survey

A feedback survey is conducted after some significant person feels the needof identifying and understanding the problem. In the present example, thePersonnel Chief at the Head Office of a large multi unit company was keen onimproving the organizational climate. He called an internal OD facilitator whoadvised to go for a preliminary diagnostic intervention to know the perceptionsof executives on certain important dimensions. It was decided to cover allexecutives working in different departments at the Head Office.

ii) Deciding Objectives (purpose of the survey) and Scope of the Survey

Before conducting the survey, it is essential to decide and clarify the objectiveof the survey. The Consultant, client and his representatives meet together anddiscuss different aspects. In this study the main objective of the Survey wasdefined as “To find out the perceptions of the executives on various dimensionsof organizational norms with the aim of identifying areas for improvement oforganizational environment.”

The study was confined to Executives working in various departments of theHead office.

iii) Selection of Instrument (Questionnaire)

Normally data is collected through questionnares (instruments which aredesigned specifically) since design and testing of a questionnare is a complextask needing high expertise, redesigned questionnaires are commonly used.

Considering the likelihood of debate on the validity of questionnaire, it wasdecided to go for a standard questionnaire (Organizational Norms Opinionnairedeveloped by Marks Alexander). Organizational norms develop gradually andinformally as the employees learn what behaviours are necessary for the groupto function more effectively. In this instrument, Alexander has tried to enablethe understanding of environment on the basis of the organizational norms.‘Norms’ (oughts of behaviour) are the behaviours which are considered to beacceptable behaviours as prescribed by groups and organizations.

Positive norms support organization’s goals and objectives and negative normshave the opposite effect. There were 42 one line statements in thequestionnaire covering the 10 dimensions of norms; the responses were scoredon the basis of the key.

The following scale was used for interpretation.

- 40 and below - Extremely negative- 40 to - 20 - Very negative- 20 to - 10 - Moderately negative- 10 to 0 - Low negative- 0 to 20 - Poor20 to 40 - Good40 to 60 - Very good60 and above - Exceptional

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The theoretical range of scores was from - 100 to + 100.

iv) Methodology of Data Collection

A variety of methods are used for data collection— interviews, Emails, semistructured questionnaires, workshops, secondary sources etc.

In this survey, it was decided to serve the questionnaire personally to allexecutives in the Head Office except the Top Management (Directors, EDs).Wherever the population is large, statistical sampling methods are used todetermine the sample size.

The questionnaires were collected back from who had responded. Theresponse was over 40%.

v) Scoring and Summary of Findings

Some questionnaires are direct and some concealed type. In the later type, it isdifficult to understand the dimensions of data collection, hence scoring key withinstruction is used. It also gives some framework for interpretation.After scoring, the data was analysed by the internal consultant to find out thestatus and patterns. The highlights of findings (at the H.O.) level are givenbelow.

a) Ranking and Relative Status

Frequency Distribution for the whole division is shown in Table 2. In actualreport the same for different departments were also shown in different tables.

Table 2 : Frequency Distributions

Norm Average Score

1. Colleague & Associate Relationships V G AA + 43.69

2. Customer & Client Relationships G AA + 37.86

3. Innovativeness & Creativity G AA + 34.06

4. Leadership & Supervision G BA + 27.4

5. Profitability & Cost Effectiveness G BA + 27.39

6. Candor & Openness G BA + 27.15

7. Training & Development G BA + 26.69

8. Team Work & Communication G BA + 26.42

9. Performance & Excellence G BA + 21.46

10. Organizational & Personal Pride P BA + 17.04

Note : VG - Very GoodG - GoodP - PoorAA- Above AverageBA - Below Average

The above table shows that all the norms perceived by the employees arepositive in nature. This means all the norms support the organization’s goalsand objectives and are able to foster behaviour directed towards achievementof the desired goals, but the range of the overall scores vary from 17.04 to43.69. The average of the two (mean) scores comes out to be 30.365, on thebasis of which the average score for individual norms have been evaluated asAA and BA. The score above 40% has been achieved only in case ofColleagues and Associate Relationship norms.



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b) Strong Norms

The ‘Colleague & Associate Relationship’, ‘Customer & ClientRelationship’ and ‘Innovativeness & Creativity’ have been perceived asstrongest positive norms in descending order.

i) The overall rating of the colleagues & associates relationships has come as‘Very Good’ and the scores are ‘Above Average’. This shows that stronginterpersonal relations exist in the organization, but the relatively low rankingof Team work raises some questions. One hypothesis may be drawn thaton a ‘personal’ level relationships are very good and cordial but when thequestion of working together comes, it is not very good. Leadership &Supervision style and Reward system may have important bearing on this.

ii) The second very positive norm has been identified as customer & clientrelationships. The high concern for customer & client satisfaction is a veryhealthy sign for the company and if sustained and increased, it will go along way in achieving corporate objectives.

iii) The third higher ranking is of ‘Innovativeness & Creativity’. It shows thatto a large extent, original activities and creative behaviour are consideredimportant in the organization. Efforts for planned change have a goodpotential of success. If somebody has the will and desire, he can do newexperiments and implement things, but since the overall score is only‘Good’ such efforts may not succeed without sufficient preparation inraising awareness & breaking the inertia.

c) Weak Norms

One of the most striking findings is the lowest position (10th) of ‘Organisational& Personal pride’. Overall rating of this norm is ‘Poor’ and ‘Below average’.This indicates a poor identification with or sense of belongingness in theorganization. This also shows the presence of ‘we-they’ attitude. This alsoindicates that the employees feel a lack of compatibility between their own andorganizational ‘needs’. For a reputed organization, it should be a matter ofconcern.

The next weak dimension is of ‘Performance and Excellence’ (9th). Thisshows that the behaviour of striving towards productivity and quality is notstrong but in other words, the quest for excellence or improvement is weak.This may have very wide ramifications. The reward system is specificallyunder question mark. In a climate, where rewards are based on objectivelyassessed performance, people value this dimension.

d) Not so Strong Norms

The remaining four dimensions i.e. ‘Leadership and Supervision’, ‘Profitability& Cost Effectiveness’, ‘Candor and Openness’ and ‘Training andDevelopment’ fall in between.

i) ‘Leadership and Supervision’ has been perceived as ‘Good’ but the score is‘below average’. This shows that supervisors are seen as helpers, trainersand developers but to a lesser (varying) degree. Therefore, there is agreat scope or need to improve the quality of Leadership & Supervision.

ii) The ‘Profitability and Cost Effectiveness’ has been evaluated as ‘Good’ butthe score is below average. The positive score shows that there is a goodclimate to encourage people to save money and reduce costs, but it needsto be further improved.

iii) The organizational norm on ‘Candor and Openness’ has also been similarlyplaced i.e. ‘Good’ and ‘Below average’. This shows that the environmentof trust does not prevail to a greater degree. People see threats in sharingthe feelings & information freely and openly.

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iv) The 7th rank has been received by ‘Training and Development’. Theoverall scoring of 26.69 shows the presence of positive norms in thedivision, and indicates that there is encouragement of training anddevelopment activities to some extent.

Department wise and level wise analysis was also carried out and findingswere also given.

v) Presentation of Feedback

A meeting of the representatives from various departments along with thesenior / top level executives was convened in the Conference Hall. TheConsultant gave a brief presentation on OD and Organizational Environment.He also talked about some of the challenges the company was facing and theneed of improvement. He gave a brief talk on ‘how to give and receiveeffective feedback’ to prepare a climate of positive listening and exploration .

This helped in creating a non-defensive (Supportive) climate before presentationof the findings.

He encouraged the participants for free and frank interaction and presented thehighlights of the findings. Many expressed their shock on ‘Organizational andPersonal Pride’ and ‘Performance Excellence’ taking the lowest rank. Theyhad a sigh of relief by observing that ‘Colleague and Associate Relationship’was at the top although the score was not very high.

Department level findings created much interaction and concern – manydefensive responses started pouring in but were nicely facilitated leading toacceptance and exploration.

After the presentations, there was a consensus to work for improvement oncertain dimensions especially those, which have been placed in the lower ranks.They selected:

Organizational and personal pride

Performance and Excellence

Team work and Communication

Training and Development

vi) Action Planning

Four Cross functional teams were constituted for preparing therecommendations and action plan to be presented in another workshop 4 weekslater: One of the suggestions was to prepare a hand book giving ‘helpful’ and‘restraining’ practices for each of the norms.

The Survey feedback workshop served as an effective intervention because theawareness of the status and implication raised a lot of interest and desire forimprovement. Some improvement would have been initiated in some cornersonly by the effect of listening the findings of the survey.

vii) Follow up

A core group of 3 Senior level managers from 3 different departments wasconstituted for follow up action.

Concluding Remarks

Designing instrument for Survey feedback is the most important task and shouldbe carried out only by trained persons. The methodology of data collection andsampling plans also need be decided professionally. The samples should bestatistically valid.



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Standard questionnaires should be used if adequate expertise for questionnairedesign is not there. The findings should be developed only after in depthanalysis of the collected data. The presentations should be designed andorganized in an effective manner. A Survey feedback session motivates thelisteners to come together and work for problem solving and improvement.

13.4 PROCESS CONSULTATION

According to Schein, Process Consultation is a set of activities on the part ofthe Consultant, which helps the client to perceive, understand, and act upon theprocess events occurring in the client’s environment. Expert help (solutions toproblems) is not directly provided to the clients, rather on the basis ofobservations of functioning of the group, they are helped to diagnose the nature,dimensions and extent of the problems and evolve their own solutions. ProcessConsultants do not give solutions (contents, subject matter, techniques etc.)themselves but emphasise on and facilitate behavioural processes to enable theclients come out with their own solutions.

Process consultancy is different from other models of consultancy and havefollowing distinguishing characteristics:

Facilitation of communication — a free and frank exchange of informationand expression of feelings, apprehensions, fears by the clients and hispersonnel. etc.

Enhancing problem solving abilities of the client so that they are able tosolve their problems.

Developing a process based relationship with the personnel involved.

Develop open and authentic relationships with clients and their people.

Generally, the organizational processes such as communication, leadership, groupnorms, problem solving and role and functions are of primary concern inProcess Consulting.

Process Consultancy is useful when (i) the client experiences the effect(symptoms) but is not aware of the problems (ii) he does not know whatspecific help is required (iii) he understands that problems are attitudinal andbehavioural but is not able to intervene and (iv) the client is motivated to learnand develop problem solving abilities in himself/his people.

According to Schein, a variety of interventions may be used in ProcessConsulting:

Interventions aimed at making the group sensitive to its processes andenhance their interest in analysing the problems.

Interventions aimed at problem identification and analysis (diagnosis).

Interventions aimed at giving feedback.

Interventions aimed at helping individuals / groups to observe and processtheir own data, learn giving and receiving feedback and solve the problems.Coaching and counseling also are frequently used.

Interventions aimed a structural measures like job allocation, role changesetc.

An example of process consultation is given in Appendix 1.

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13.5 CONFRONTATION MEETINGS

Originally developed by Beckhard, this OD intervention is used for identifyingand prioritising problems in organizations and beginning the working on thesolution of the problems by involving many people. The typically used stepshave been indicated as given below.

1) Convening a meeting of representatives of all departments in theorganization.

2) Assuring and motivating the participants to be open, free and frank incommunication, and giving a brief presentation on the need and importanceof problem identification and working for solution in groups.

3) Dividing participants in small groups (5-7) and asking them to identifyproblems which are inhibiting their own and organizational performance.

4) Convening all groups together and make presentations of the identifiedproblems.

5) Distributing copies of problems to be given to each participant and using anappropriate method. Problems are classified into different groups such asHuman, Economical, Structural, Technological etc.

6) Prioritising the problems involving the entire participants arranging andsynthesizing the problems for more meaningful understanding.

7) Facilitating the participants to collectively select a few problems for solution.

8) Dividing participants into groups according to the classification and nature ofthe problems and assigning them time to bring an approach for solution (orsolution) with an action plan.

9) Convening the groups and making presentations by each group.Incorporating modification wherever required.

10) Getting the approaches and solutions examined by the top managementand getting their decision on future course of action . Making a follow upand implementation plan and formal communication in this regard.

11) Preparing follow up plan.

This intervention is very simple and needs a good internal or external facilitator.The climate building is crucial for success because a conducive environmentwill encourage the participants to give their ideas without any fear.

Confrontation meeting can be held for Department / Function level and/ororganization problems identification and solution. Different techniques may beused for problem identification, generation of alternative solutions, prioritizationof alternative solutions and choice of appropriate solution etc. Generally suchmeetings are of 6-8 hours duration but depending upon the nature of problems,may be of longer durations having a few days gap between two meetings ifone is not adequate.

13.6 ORGANIZATIONAL MIRRORING

This is an intervention, which is used by a section (department / function etc.)of an organization to collect the perception of other relevant sections of theorganization with the aim of improving its performance, image and relationshipswith other sections.

In a large multi unit company the Corporate Personnel Department wanted toknow the perception of the unit Personnel Department and a few othersignificant departments. For this a Consultant (in this case internal) was invited



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and briefed. With the help of the Consultant and senior executives ofCorporate Personnel, a few significant clients (customers) of CorporatePersonnel Department were identified —

– Corporate Finance

– Personnel Department of Major Units

– Personnel Department of a few sites

– Shop Floor (Production) Deptt.

– Training Department

– Trade Union representatives

Representatives (2-3 from each of these departments) were invited for aWorkshop on a specified date. From Corporate Personnel, the head along withgroup leaders and a few others were the hosts. The Consultant had separatelyinterviewed some representatives of each of the client group including the hostgroup and collected relevant information regarding expectations from host groupand their perceptions about the host group.

In the beginning of the Workshop, the Head of the Corporate Personnelwelcomed all representatives and explained that the Corporate Personnelwanted to bring in improvement in their performance and satisfaction of theinternal customers. He assured that all the perceptions and impressions will betaken in a real positive way and requested to give free and frank opinion.

The Consultant divided the representatives in 7 groups and asked them todiscuss and bring out their perceptions about functioning of the CorporatePersonnel covering both the positive and negative aspects. He also emphasisedthat the perceptions should be data based, objective and should be preparedkeeping in view the requisites of effective feedback.

The host groups were also asked to bring out their perception of their ownperformance.

After 40 minutes, all groups were called in the hall and the representatives ofCorporate Personnel (group leaders) sat in the Centre and around them, themembers of other groups were made to sit. The host group requested outsidegroups to tell them their perceptions. A person was assigned the task ofnoting down the points on white board. By turns each group shared theirperception. In case of confusion, the host group was seeking clarification.Members also interacted with each other in a controlled manner.

After completion of sharing by every group, the hosts summarised and dividedthe main themes of perceptions in three parts:

a) positive perceptions (appreciation)

b) negative perceptions and

c) main expectations (from Corporate Personnel)

Once again, the total participants were divided into 4 groups by the Consultantand every group was asked to identify and prioritize issues / areas ofimprovement of the performance of Corporate Personnel.

After 30 minutes, the groups were once again convened and presentationswere made by the representatives of each group.

Thereafter, a core group was constituted which identified key issues andpresented to the whole group. Once the issues were discussed, consensus was

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arrived at and an action plan was prepared for implementation. The methodused in this exercise is a simple example of ‘Organizational Mirroring.’

‘Organizational mirroring’ intervention is very effective in improvingperformance and optimising the inter-departmental / inter-functional relationships.The facilitator (Consultant) intervenes for creating a conducive, non-threateningclimate, eliciting desired information, making process observations to make groupprocess more effective and crystallizing the issues.

13.7 TEAM BUILDING

‘Team building’ is the most commonly used OD intervention. It takes differentforms and emphasises different aspects depending on the need and expertise ofthe Consultant and Trainer.

A team is widely understood as a group of people working together toaccomplish common goals. Thus there are two important aspects in theworking of any team:

Task aspect: What is to be achieved or carrying out and the relatedaspects; and

People or Relationship aspects: How do the members feel whileinteracting and working with each other? How do they communicate witheach other? How do they respond? Who is trying to dominate anyleadership issues? Are there conflicts? How conflicts are resolved?

The ‘Task aspects’ are covered by ‘Content’ aspects and ‘People orRelationship aspects’ by ‘Process’ aspects.

Any team exists in environment and has interaction with several other teamswithin and outside the organization. Thus the teams may have different issues/processes within the organization and focus may also be different like:

Intra-team task (content) focus;

Intra team people (process) focus;

Inter team task focus – within the organization; and

Inter team people focus – within the organization

A team may have interactions with team(s) external to the organization like:

Inter-team task focus — with team(s) outside the organization;

Inter-team people focus — with team(s) outside the organization.

Team building programmes under OD efforts are carried out using interventionsfor release of pent up emotions, clarifications and strengthening perceptions,confrontations involving examination of one’s own and others’ assumptions,resolution of conflicts, problem solving and concept based approaches andstrengths for bringing synergy.

Thus, team building issues have a wider implications and all aspects should beexplored while deciding interventions.

There are a variety of approaches but generally content based approaches,process based approaches and mixed approaches are used.

Depending upon the diagnosis, the theme and competence of the facilitator,methodologies are chosen. Sometimes, ‘Problem Solving’ approach is used in



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team building intervention where the team / teams are facing some difficultproblem.

Here the design of a ‘Team building’ programme conducted for a leading2-wheeler manufacturer is being outlined briefly. The proceedings of thisprogramme presents an in-depth explanation, it is available in the book“Planning, auditing and developing Human Resources,” Parth Sarathi.

As a result of phenomenon increase in the awareness of the benefits of ‘TeamWork’ many organizations are organising training programmes on ‘TeamBuilding’. Some programmes are organised as a sequel to diagnostic exercisesor as a part of on-going OD activities and others as independent events.Various approaches are also being used to design such programmes. The useof process-based interventions in Team Building programmes is increasing. Onemajor parameter for the choice of interventions is the orientation of the HRDHead / Consultant or the faculty engaged for such programmes. Anotherimportant constraint is the duration of the programme.

It is believed that ‘Team Building’ programmes based on T-group methodologyare most effective, however, the batch-size (of maximum 10 participants) andthe programme duration (minimum 5 days ) impose a serious limitation on usingthis methodology. Another constraint is the availability of professional T-GroupTrainers; as such only accredited facilitators should facilitate programmes.

The use of process based ‘Structured experiences’ along with appropriateinstruments in Team Building programmes helps in overcoming these constraintsto a great extent. Such experiences may be designed or adapted from‘Structured experiences’ available in some books. Prior diagnostic exercises,indicating the strong or weak dimensions of team working are of great help indesigning short-duration team building workshops. The structured experiencesare able to simulate the real life situation, raise the feelings and provide suitableopportunities for making appropriate interventions at the de freezing, learningand refreezing stages. Such experiences create less hostility, give desired paceof movement to the group, create a situation where all participants are involvedand facilitate giving and receiving feedback effectively.

An experience is narrated in Appendix 2, which shows how ‘structuredexperiences’ supported by instruments and facilitated through process skills canmake the need based ‘Team Building programme’ for Engineers truly effective.

13.8 T-GROUP TRAINING

Introduction

T-Group (Training Group) is a small unstructured group in which theparticipants learn from their own inter-actions and evolving dynamics aboutissues pertaining to inter-personal relations, group dynamics and leadership.This is also primarily known as Sensitivity training and is a training approachbased on experiential learning.

In a group, around 10-12 participants assemble together and work with afacilitator to discover something about themselves — their strengths, styles,inter-personal relationships, participation in the group, how they are perceivedby others etc. The group does not have any pre-determined agenda andevolves its own agenda over the time. The participants act as a resource toeach other and help in creating a climate, which is conducive to discoverythrough the data generated in the group. The group evolves like a laboratorywhere learning takes place mainly through experiencing, reflecting,

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hypothesizing, experimenting and conceptualising rather than through lectures.The individual is encouraged to express oneself and increase one’s personal andinter-personal effectiveness in the group setting.

T-Group Training normally adopts two paths (directions):

i) To gain deeper understanding about self and personal growth(inter-personal focus); and

ii) to explore group dynamics and relationship between members. This leadsto team building interventions (Interpersonal and organizational focus).

Objectives

Every T-Group is organised with some objectives. The following are some ofthe objectives frequently set for T-Groups:

Enhance understanding about self, gain insights into one’s own behaviourand its impact on others including the ways in which these are interpretedby others.

Enhance the understanding and awareness about others’ behaviour(thoughts, feelings and actions).

Enhance the understanding and awareness of group and inter-groupprocesses; processes that facilitate and inhibit group effectiveness.

Identify and develop greater awareness of behavioural processes associatedwith one‘s life.

Increasing diagnostic skills in inter-personal and inter-group situations.

Experimentation of new behaviours initiated during the lab.

Improve one’s effectiveness in inter-personal situations so as to derivegreater satisfaction from them.

Discover one’s dormant potential to live more effectively and meaningfully.

Increase ability to transform the learning into action etc.

Benefits of T-Group Training

The benefits of T-Group training may be enumerated at individual, group andorganizational levels.

Individual Level

Many benefits of undergoing T-Group training have been reported and observedat the individual level.

With the venting out of feelings bottled since long, the person becomes morespontaneous, tension free and is able to perceive things in more unbiasedmanner. The stress level decreases and thus the physical and mental healthincreases. He becomes more sensitive to himself, and is able to own up hisfeelings. This causes decrease in defensive behaviour and clarity in perception.The hopefulness increases; the latent strengths and limitations become knownwhich result in realistic and achievement oriented goal setting. One is able tolook into and examine his self-concept realistically and takes appropriate stepsfor strengthening it. This enhances self-esteem.

The capability to explore options increases and therefore the decision-makingbecomes more effective. The internal locus of control gets strengthened and themotivation to make efforts for achieving individual and organizational goalsincreases. The willingness to change and coping abilities increase.



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Inter-personal Level

Due to increase in the insights to understand others, and enhanced self-esteem,communication with other persons becomes supportive resulting in productiverelationships. Since the self-disclosure increases, one is able to get more feedback which keeps on increasing the arena (open) resulting in creation of atrusting and open relationship with others. Aggression and defensivenessdecrease which help in developing better relationships and increased influence.People want to work together and thus the teamwork improves. Theassertiveness (concern for self) and cooperativeness (concern for others)undergo enhancement resulting in collaborative behaviour. Over dependenceand counter dependence reduce and inter-dependence increases. It becomeseasy to praise and give positive feedback to others, reduce the hostility towardsothers and receive feedback from others in a positive manner. All theseaspects facilitate personal growth and effective inter-personal relations.

Organizational Level

T-Group training increases openness, trust realisation and inter-dependencewhich helps in creation of a conducive climate where everybody strives forrealizing his potential. Hostility reduces and new and better ideas becomeavailable. The change interventions are better appreciated and if a largenumber of persons have undergone this training, the capability to cope withfuture challenges increases. Due to increase in the influencing ability, empathyand assertiveness, the leadership styles become more effective.

The T-Group Training is not beneficial to Corporate Sector alone, it has beenobserved to be equally effective for persons engaged in the areas of Education,Health Services, Social Work and Industry. There are some ManagementInstitute where the Postgraduate students compulsorily undergo T-Group trainingor Human Processes Labs or Personal Growth Lab.

It should not be misunderstood that this training is useful for Trainers/HRDProfessionals only. This is one of the most effective interventions for SelfDevelopment / Personal Growth and is useful to all persons irrespective of theireducation or level in the organizational hierarchy. The leaders in varioussectors who are instrumental in influencing and developing others will beespecially benefited. Persons who are finding it painful and difficult to copewith the inter-personal, team, family, social or organizational set-up willexperience this training as a unique opportunity.

It is essential for those who are in the role of facilitators in variousorganizational efforts such as - HRDI, Organization development, Total QualityManagement, Business Process Re-engineering, Quality Circle, ProductivityCircles etc.

A Brief Outline of Working of T-Group

There are 8-12 members (participants) in a T-Group. To start with the Trainer(called facilitator) informs the group that he is a member and a resource to thegroup and after brief introduction vanishes into silence. There may be spells ofsilence, the participant start inter-acting with each other, a leadership agendamay be created and the group keeps on struggling to work and its ownmethods for proceeding further. Whatever goes on, the group generates “hereand now data for learning experiences”. Individual members try out differentroles successfully or unsuccessfully as the group struggles with procedures.Sometimes, members become very active, involved, and aggressive andsometimes there a long patches of silence, withdrawal and sulking. Thefacilitator remains a member of the group and makes different types ofinterventions depending upon the purpose of the laboratory, his own style and

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the stages / processes within the group. The members are desired frombringing outside data and emphasizes on here and now data. The facilitator,through his interventions, encourages members to understand what is going onin the group, their feelings, behaviours and impact of the behaviour onthemselves and others.

An open, supportive and caring atmosphere where all members and facilitatorare at the same level - is created which ultimately enhances experimentation,observation, sharing of data (thoughts and feelings and actions), processing ofdata with others for driving inferences, generalising the inferences (learning)and then applying it again and again. This facilitates greater insights into theirown and others behaviour and understanding of group dynamics.

Many a times, individuals undergo tremendous emotional pressure andturbulence and the bottled feelings find a venting out in the form of intensiveemotional outbreaks. The individual gets a unique experience, which brings inclarity in their thoughts and feelings. They are able to perceive and respondmore clearly and objectively. The facilitator does not teach them and neverimposes his decisions.

Some Basic Assumptions

T-Group function under few assumptions :

a) Learning is the responsibility of participants;

b) The role of trainer is to facilitate the examination and understanding of theexperiences in the group;

c) Learning is largely a combination of experiences and conceptualisation anduses the experiential learning cycle:

“experiencing - publishing - processing - generalising - applying -experiencing ………..”;

d) People’s learning is optimised when they establish authentic relationshipswith others; and

e) The development of new skills (in working with people) is maximised asthey examine the basic values, acquire concepts and theories, practice newbehaviours and obtain feedback.

T-Group Trainer

A T-Group Trainer is called a ‘facilitator’. A facilitator is a process guide andmakes a process easier or more convenient and guides the group towards adestination. It is difficult to enumerate the roles of a facilitator. One of theinitial challenges in the role of the facilitator is his own leveling with theparticipants they should consider him a member of the group and not on ahigher pedestal. He manages group by providing opportunities, alternatives,direction, setting standards and directing the communication. He ensures thatthe members understand the contents and processes actively and encouragesthem to reflect, interpret and explain what they are thinking and feeling. Hehelps them in processing and also occasionally in inferring and in this own way,gives meaning to their experiencing.

Members get emotionally charged, become aggressive, sad, angry, excited andin the state of emotional turbulence quite often, the facilitator may also havesimilar experiences. In such situations, the role of facilitator in handling hisown and others’ feelings become critical. He may have to stimulate / managethe emotions by challenging and confronting; facilitate release of strong pent -



36

up emotions and playing a catalyst for interactions. He has to design and usea variety of interventions, which would encourage venting out of bottledfeelings, dispelling apprehensions, and facilitate a free and frank sharing.In order to ensure that all these happen, a conducive group atmosphere willhave to be created. Thus, relationship building is another important role offacilitator.

Developing Facilitators

Becoming a facilitator needs a lot of vigour and time. There is no academicqualification, which makes a facilitator; becoming facilitator is a tedious andtime-consuming project. Indian Society for Applied Behavioural Science is theonly Organization in India which develops accredited T-Group Trainers throughdifferent stages of a systematic programme.

The stages for being an accredited T-group trainer (facilitator) are:

1) Basic Human Process Laboratory (One Week)

2) Advances Human Process Laboratory (One Week)

3) Professional Development Programme - Phase A (2 Weeks)

4) Professional Development Programme - Phase B (2 Weeks)

5) Internship (2 Weeks)

A lot of inter-phase work is to be completed before progressing to the nextstage right after stage No. 2. The progression to next stages is based onevaluation and recommendation.

Concluding Remarks

T-Group training, in spite of its limitations is spreading fast. It is anindispensable intervention for Team Building and OD, HRD professionals withprocess competencies have been found to have a definite edge over otherswho have not acquired such competencies; and therefore T-Group training hasbecome one of the most important training outputs for them. Most of the LineManagers, who have undergone even one Laboratory (Basic Human ProcessLaboratory) have acquired some basic process competency and developedreasonable insights for understanding self and others, have become moreproactive, their relationship with others has increased and they have becomebetter team leaders/members.

Many of the ex-participants have reported that they are facilitating HRD / OD /TQM / BPR initiatives more successfully after undergoing these laboratories.

Increase in the coping skills, assertiveness, leadership effectiveness,persuasiveness, stress relieving etc., are some of the other benefits which havebeen reported. There are many individuals who have come out of their agonies,frustration and stagnation and are facing the challenges of life happily andsuccessfully after undergoing process training. T-Group is the basic processtraining. At the organizational level - this has contributed tremendously inmanaging change. There are many organizations who have achieved their turnaround, growth development and self renewal through process basedinterventions.

One of the severe limitation of T-Group training is availability of competent andAccredited Facilitators. ISABS has so far not produced more than 100facilitators. Conducting T-Group Labs by non-accredited facilitators maynot only jeopardize the effectiveness but also cause immense harm to theothers.

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13.9 ROLE ANALYSIS

Role analysis is a technique used for clarifying and prioritising the expectationsof significant ‘role senders’ from a ‘role occupier/holder’. A ‘role’ is thepattern of behaviour expected by others from a person occupying a certainposition in an organizational hierarchy. A ‘role holder’ is a person occupying arole, and ‘role senders’ are those persons who have some significantexpectations from the role occupier. Dr. Udai Pareek and Dr. TV Rao haveclarified a few related terms. According to them, a position or ‘office’becomes a ‘role’ when it is defined by various expectations from that position.Some terms commonly used in this context are:

Task - basic element of a job;

Job - a module of work;

Work - productive activities; and

Position - a point in an organization structure, role tasks expected(in a position) by self and others.

Thus, the role definition is different from job description, the latter is staticand impersonal but role definition is dynamic and personal. Personalqualities, growth, perceptions, motivations, ambitions, values, environmentalinstability are some of the factors determining a role. Success of anindividual in a role largely depends upon the clarity of objectives. Roleanalysis helps in establishing this clarity. An approach for conducting roleanalysis has been given in this unit. The block diagram shown in Figure 1can be referred for knowing various stages.

Decision to Carry Role Analysis

‘Role Analysis’ is a complex exercise affecting many persons and activities, andtherefore, should be initiated after ensuring the support of Top Management.Some important aspects to be divided are:

– Coverage in terms of function and level;


Decision to carryout Role Analysis Constitution of the

Core Task Force

Selection of Persons/Positions for Role Analysis Constitution of

Specific Task Forces

Identification ofRole Sender Collection of Role

expectations andpreparation of Summary

IdentifyingKey PerformanceAreas (Role Definition)

Identification ofCompetenciesrequired for the role

Identification ofGaps in capabilities Plans and activities

for development

Figure 1: Role Analysis : Block Diagram


38

– Time frame for conducting the studies;

– Engagement of consultant;

– Identification and training of internal resource persons;

– Commitment for

a) Budgets and resources;

b) Development/updating of systems/procedures, work instructions;

c) Changes in delegation of powers, if required; and

– The Core Task Force Coordinator.

Constitution of the Core Task Force

The role analysis exercise should always be carried out by a group ofmanagers, as such, it is essential to constitute a Core task force. This ‘Coretask force’ should bear the approval of the top management and consist ofmembers from different functions. For multi unit organizations, the Core taskforce will be overall responsible for role analysis exercise through out theorganization but at each unit and division, a separate core task force will beconstituted. The members of the core task force should be given adequatetraining in role analysis by some internal or external consultants if required.

Selection of Positions / Persons for Role Analysis

Role analysis exercise preferably should be conducted for top / senior levelpositions in the beginning and gradually it can come down to lower levels ofmanagement. A list of positions/managers selected for role analysis exerciseshould be made indicating their names, staff numbers and place of posting.The job descriptions of the executives / managers (positions selected as above)will be carefully prepared. This will indicate the main work areas andresponsibilities for each of the position.

Constitution of Specific Task Forces

Depending upon the coverage, specific task forces should be constituted forcarrying out the Role analysis activities in specific levels / positions. Taskforces should be constituted with some members from the Corporate TaskForce and some from the concerned area and important interfacing area.

Identification of Role Senders

For each of the positions selected for role analysis, role senders should beidentified. Role senders are those persons who have some work relatedexpectations from the position or role. A list of role senders for each of thepositions selected should be prepared.

Collection of Role Expectations

A format* (No. 01) will be prepared for each of the positions/roles to bestudied. A copy of this format should be sent to all the role senders identifiedfor that position. The role senders may be superiors, colleagues, subordinates,customers in his own department or other departments. The role senders willbe requested to send the filled up format by the specified date.

For each of the positions/roles, the formats duly filled up by the role senderswill be collected and the task force members will discuss the same. Asummary for each of the positions/roles will be prepared in format No.02 afterresolving the discrepancies and discussions with the role senders and theirsuperior. Thus, the main functions/activities required to be carried out by theconcerned role occupier will be outlined and prioritized in the format No 02.

* All the formats are appended at the end of the unit in Appendix 3.

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Defining Key Performance Areas (Role Definition)

Activities which are bearing highest priority will be identified from the abovementioned format and entered into format no. 03 in decreasing order ofimportance. These are the key performance areas for that specific role. Thiswill be done by the task force members but the concerned manager will alsobe involved. These key performance areas provide the role definition for thatparticular role.

Identification of Competencies Required for Carrying out the RolesEffectively

Effectiveness of a person in the role depends on so many factors and one ofthe major factor is the competencies possessed by the person occupying thatrole. ‘Competency’ is a word which has been used by different people withdifferent meaning. Here the term competency has been used to include all thecharacteristics which are related to effective and or superior performance of aperson in a role and includes the necessary knowledge, skills and abilities.Abilities include qualities, attributes, sets of values and beliefs and attitudeswhich would lead to effective performance in that role.

For managerial positions, the competencies can be identified in each of thefollowing aspects.

Technical/Functional requirements:

Methods, Systems, Procedures, Techniques

Managerial/Administrative requirements:

– Planning, Organizing, Coordinating, Monitoring, Controlling, Supervising.

– Strategic / Conceptual requirements.

– Envisioning, environmental understanding, analysing and prioritising,resource allocation and mobilisation, decision making, developingstrategies.

Behavioural:

Personal/inter-personal effectiveness, Leadership, Team Building, Goalsetting, Motivating, Counseling, Developing, Delegating.

Identifying the Gaps between the Capabilities Possessed and Required

After identification of the important competencies for a particular role, gap incompetencies will be identified by comparing with the competencies possessedby the role occupier. This can be done by the self analysis by the roleoccupier, use of some bench marks or instruments, assessment centres orevaluation by the superior. If there is an appropriate HRD climate, thisexercise will be quite easy, otherwise, people will experience various types ofdifficulties and differences. The HRD Department normally have experts inPersonnel assessment and their contribution would be valuable in carrying outthis activity. Gaps will be thus identified and prioritized for each roles. Aninventory of gaps for each of the roles will be prepared as shown in format no.04.

Plans and Activities for Development

After prioritising the gaps in competencies for various roles, strategies forenhancing those competencies would be prepared jointly by the role occupier,his superior and the HRD professional. Various alternatives for enhancing thecompetencies may be education, training, deputation to another activity,nominations in cross functional teams, coaching etc.



40

Conclusion

As mentioned earlier, the concept of role is dynamic. As such, periodically, therole definition should be updated. If implemented sincerely, role analysis willbecome a valuable tool for identifying suitable incumbents for placement onimportant jobs, career planning and succession planning. This will also prove tobe one of the most effective methods of identifying the training anddevelopment needs and infusing achievement orientation in the role holders.Role analysis can also trigger efforts for organizational restructuring, Jobredesign, Process re-engineering and design, outsourcing of managerial activities,review of Personnel policies, Delegation of Powers etc. This will be mostuseful for other HRD activities.

13.10 SUMMARY

At the outset of the unit, we discussed the meaning and scope of ODintervention. Subsequently a selected set of such techniques like surveyfeedback, process consultation, confrontation meetings, organisational mirroring,team building, T-Group training and role analysis have been discussed with thehelp of relevant case studies and illustrations.


1) Explain the meaning of OD Intervention.

2) Write short notes on:

a) Process consultation

b) Organisational mirroring

c) Role analysis

d) Team building


Blake R, Mouton J. The Managerial Grid, Gulf (1964).

Becknard R “The Confrontation Meeting” in Harward Business Review 45(1967).

Blake R, Mouton J. Consultation, Reading Mass, Addison Wesley (1976)

Schein E. Process Consultation: Its role in Organization Development,Addision Wesley (1969).

French, Wendell L. Jr, Cecil H Bell, Organization Development, PrenticeHall of Indian Pvt. Ltd., New Delhi (1983)

Beckhard, R. Organization Development: Strategies and Models,Addison Wesley (1969).

Alexander Mark. “Organizational Norms Opionnaire”, The 1978 AnnualHandbook for Group Facilitator (Ed. Pfeiffer, J.W John, E. Jones),University Associates California (1978).

Schmuck, R.A, Miles M.B. OD in Schools, Pfeiffer & Co. San Diego(1971).

Frohman, Mark. A. et al. Action-research as applied to OrganizationDevelopment in Organization Development and research (Ed. Wendel, L.French etal, Business Publications Inc Dallas (1978).

Pareek, Udai Rao, T. Venkateshwara. Designing and Managing HumanResource Systems, Oxford IBH Publishing Co. New Delhi (1981).

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Appendix 1

AN EXAMPLE OF PROCESS CONSULTANCY

After joining the Corporate Office, one of the Directors was not feelingcomfortable. The Director had been a dynamic Unit head in one of the largemanufacturing units of the company and in the Corporate Office, he wasresponsible for another function (Personnel). There were a good number ofpersonnel executives at different levels who had been in the office since longand had developed their own way of working and inter-acting which waslargely bureaucratic in nature. In a few formal meetings and inter-actions, thenew Director asked the executives about their problems but no response.After spending a few months, in one of the Departmental meetings, heexpressed his uneasiness and also told that he wanted the department to workdifferently. During this period, different executives had different types ofexperience with him but largely he was seen as a strong and autocratic typemanagement personnel. Some persons have been treated very harshly onoccasions and there was a fear in everybody’s mind and therefore, they werenot interacting with him openly. During the meeting, one of the executives toldthat there were problems but nobody was sharing because of fear. On this,the Director proposed to invite an external Process Consultant for identifyingthe problems and doing the needful for their solutions.

The Consultant was briefed of the situation and he preferred to interviewexecutives at all levels over a time period. After the interview, he arranged aWorkshop in which he gave some inputs like FIRO-B, Johari Window and alsointroduced the ‘Win as much as you can’ exercise for looking into thecollaborative behaviour. With the help of these inputs over the two days, theexecutives started looking into themselves, trying to understand other persons ina better way and also the value of interactions. After some gap, anotherWorkshop was organised in which the executives except the Head of Personneland Director (Personnel), everybody participated. Some behavioural sciencebased inputs were given here also followed by task of writing perceptions ofdifferent levels of executives. For example, executives were divided intodifferent groups and each group were given the task of writing :

a) How do they perceive themselves?

b) How do they perceive their superiors ?

c) How their superiors perceive themselves ? and

d) How do the superiors perceive other officers ?

The Consultant collected the perceptions of the Director and the Head abouttheir executives and also about themselves. In the next part of the Workshop,all were invited and with the permission of all present, the Consultant sharedthe responses of the previous exercise. This perception sharing identified thecommonality in perceptions and also the sharp differences. The differenceswere discussed and gradually all including the superiors started expressing theirthoughts and feelings openly. Much of the venom, which had been collectedover time was out and after some time calmness prevailed. A number ofinterventions for the future were designed jointly and one of the most effectiveinterventions was to have a morning meeting from 9.15 to 9.30 everyday whereall executives will be present and would share anything, which they considersignificant. This meeting ultimately proved to be the means of major breakthrough in the sense that there was tremendous increase in openness, trust andconcern for each other amongst the executives.

The role of the Consultant was that of a Process Consultant as he made hisprocess observations right since the stage of interview and based on his



42

observations, he chalked out future interventions and initially the interventionswere focused on enhancing the competence of the executives to understandtheir own and others behaviours, experiencing the need of an open and trustingrelationship, sharing mutual concern, empathy and moving towards collaboration.Based on the understanding of the human process, the facilitator created anenvironment which was desired by everybody and the clients evolved thenecessary interventions leading to improvement / solution of problems.

Concluding Remarks

A survey is useful only if it is prepared in an unbiased manner, the concernedpersons receive the findings in a non-defensive manner and ‘action’ followsthe diagnosis. In order to keep it perfectly unbiased a standard fully validatedquestionnaire has been used and identity of the respondents has not beendisclosed.

It is a natural tendency in human beings to first ‘deny’ the medical diagnosisreport and then get into a state of shock. The same is true in case of theorganizational diagnosis reports also. Hence a conducive climate will have to bemade before presentation. This should be seen in totality and any attempt topresent a ‘segmental view’ may be disastrous. The Process Consultationinterventions are highly helpful in achieving this. Since everything comes fromthe clients, their confidence increases gradually and they start owning up thediagnosis. Since they are actively involved in designing the interventions,implementation becomes easier and their problem solving abilities also increase.It is expected that it will be received by the top management in the rightperspective with the ultimate aim of bringing in improvement in all facets oforganizational working.

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Appendix 2

TEAM BUILDING PROGRAMME – A CASE STUDY

Background

During the course of the ongoing organizational development efforts in the twowheeler company under reference, it was diagnosed that poor team work wasone of the major problems in two main areas of the Factory. Although theproblem appeared to be more intense in the other area but considering thewillingness of the Head of the department (HOD), to participate, it was decidedto hold the programme for this area first. It was expected that by the successof this programme, the HOD of the other area will be motivated to hold theprogramme for this area.

A preliminary diagnosis based on the “Building blocks questionnaire” (TeamDevelopment Manual by Mike Wood Cock) was conducted and the followingwere identified as the comparatively weaker dimensions —

Regular reviews

Cooperation and conflict

Appropriate Leaderships

Openness and Confrontation

Support and Trust

‘Sound intergroup relations’ also was perceived as a weak dimensions butless in comparison to the above mentioned five dimensions.

Another diagnostic exercise had revealed the following aspects needingimprovement.

Inadequate team organization

Unconstructive climate

Inappropriate leadership

A few other dimensions needing attention for improvement were identified as :

Soft critiquing

Lack of creative capacity

Low achievement orientation

Insufficient group commitment

Negative intergroup relations

Discussions had also been held with the heads of departments and the ChiefProduction Executive (CPE) of the factory who had some conflictingperceptions and unanimity on the opinions appeared to be difficult.

Keeping in view the dwindling sales position, the company had drastically cutdown the production; the cash position was not satisfactory, still the CPEdecided to hold the Team Building workshop for one of the main areas.However, keeping in view the financial and operational constraints the durationwas limited to three days and one evening. The most encouraging aspect wasthat all executives in that area were requested to attend this workshop. TheCPE himself was very much keen to attend but opted out because of the fearthat his presence would inhibit others from an open participation.

Designing the Programme

Based on the diagnosis and discussions, the following broad objectives wereidentified :



44

Broad Objectives

Identification / appreciation of the factors inhibiting the performance ofexecutives.

Providing an opportunity to experience the joys, frustrations, inhibitions ofworking in group.

Sharing their concerns and feeling about each other and top management openly.

Realising the impact of their behaviour on others.

Bringing out an action plan for improving their performance as individualsand group.

Bringing in synergy in the group.

The executives had earlier been exposed to interventions in the area ofInterpersonal Relationships (FIRO - B) and a few had undergone Personalgrowth Lab based on T-group methodology etc. hence these inputs were notincluded in this programme.

Duration of the programme

The duration of the programme was 3 days full time on residential basis. Theparticipants had been asked to report on the previous day evening (7.00 PM)so that approximately 2 to 3 hrs might be utilised on the opening day also.

Broad structure of the programme

The broad structure of the programme as planned before the commencementof the programme was as given below. Some changes occurred subsequently.

Micro Lab (One Hour)

The objectives were :

To have an informal introduction, defreezing and giving a glimpse of what islikely to happen during the programme and

To get an indication of the energy level and inertia of the participants.

The methodology was planned to be — interactive consisting of shortinstructions for sharing various personal and organisational perceptions, feelings,closeness to each other— sandwitched between interesting spells of activities.

Group Status Awareness (One and a half hour)

The objective was to set the norm for group working that the wholeprogramme would be centered on data generation, collection, analysis, opensharing and inference making and future planning will be done on that basis.

It was also aimed at facilitating the awareness of the participants about thepurpose of the programme and looking into the willingness and optimism aboutsuch interventions.

The methodology included, data collection through a simple questionnaire, jointanalysis and discussion. This session was planned to be initiated with a briefintroduction to the background of organising this programme.

A questionnaire (instrument), ‘TORI’ — developed by Gibbs was also plannedto be filled up by each participant for capturing current and unbiased data to beanalysed and discussed in one of the forthcoming sessions.

Agenda Building (3 Hours)

This module was proposed with the aim of involving the participants inidentification of major issues to be dealt in the programme and also to become

45

aware of their perception of the factors inhibiting and facilitating theirperformance.

It was planned to prepare a force field diagram by groups of participantsshowing the inhibiting and facilitating factors. It was also planned to processinterpret and exhibit the outcome of the ‘TORI’ instrument to give them theindividual and group status of TRUST and its associated attributes like Trust,Openness, Realisation and inter-dependence.

Group Working Experience (3 Hours)

This session was designed to provide an opportunity to the participants to havean awareness of the content and process aspects, task and maintenancefactors, the individual’s impact on others and vice-versa, leadership roles andresource utilization, problem solving etc.

A structured experience called “STRAW & PINS” modified to make itappropriate for the theme was proposed as means to have these experiencesand emerging observations.

Decision Making Process in Group (2 Hours)

For giving further experience in group working, especially in the context ofdecision-making where achieving ‘synergy’ is very important, an exercise called‘LOST AT SEA’ similar to the famous ‘NASA’ or Desert Survival’ exercisewas planned. This exercise was expected to enable them to get a quantifiedtype of feedback regarding their performance in such situations.

Conflict Management (4 Hours)

This session was planned considering the need of increasing awareness aboutdifferent types of conflicts, strategies for conflict resolution, to get a feedbackon their predominant style of conflict handling etc. The focus was kept oninterpersonal conflict, intergroup conflict and conflict management style. Thissession was also expected to enhance their collaboration and cooperationbesides helping them to adopt the appropriate styles in conflict resolution andproblem solving.

The methodology to be used was experience through fantasy, instrumentationand lecture.

Trust Building (1.5 Hour)

In order to give them an experience of how trust builds up, a structuredexperience was planned.

Interpersonal Relationships (3-4 Hours)

Keeping in view the fact that participants had been earlier exposed tointerventions like FIRO-B earlier, the session was kept as an optional one, to betaken up only if found to be necessary. The following interventions were keptin mind.

FIRO - B

Johari Window / Giving and Receiving Feedback

Interpersonal effectiveness profile

Survey Feedback (1.5 Hour)

Since all the participants had responded to the diagnostic questionnaire asmentioned in the paragraph No. 2.0, it was planned that a brief presentationwould be made on the findings of the study.



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Image / Perception Sharing (2 Hours)

The perception of one class of employees about the others play the crucial rolein interpersonal relationship and team work. This session was included forproviding an opportunity to different groups of participants to crystalize andshare their perceptions about each other. It was also envisaged to practicegiving and receiving feedback, and also to get an idea of the learning throughthe previous sessions.

Action Planning (Three Hours)

In order to develop an individual and collective action plan for bringing in realimprovement not only in terms of “Team Work” but related matters, thissession was planned. It was also thought that it would provide a very goodopportunity to motivate them to apply the learning to their work.

The preparation and implementation of Action Plan would be accompanied by aguide document especially prepared for this programme.

Feedback / Closure

This session was planned for taking the feedback of participants on variousaspects of the programme and closing in appropriate manner.

Alternative inputs were also planned to be given depending upon the emergingneeds and direction of movement.

The Programme Deleiberations

The programme deliberations were documented thouroughly and available inthe book “Planning and Auditing Human Resources”. Here deliberations on the“Action planning” “interaction with top management” and ‘Closing’ sessionsare being briefly outlined to give a better appreciation.

Action Planning

The participants were divided into the same two groups as in the Imagesharing exercise. Each participant was asked to prepare an action plan for (i)becoming more effective individually and (ii) making the work group moreeffective.

a) Individual Action Plan for Being More Effective

The participants prepared their individual action plans in the background of theexperiences in the previous sessions, especially the session on ‘open house’ and‘image sharing’.

The format was as below:

Sl. Activity What specific support Name of theNo. (to be initiated/ is needed from others person / post

to be continued/ to expedite the from whichto be stopped) activity support is needed

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Alternative Interventionsb) Action Plan for Making the Group More Effective

The participants initially worked in the same group. They were asked to firstrespond individually in the format similar to the individual Action Plan and thentry to arrive at a consensus action plan. Then 2-3 representatives of bothgroups sat together and brought out a common Action Plan. Althoughdiscussions were held at length but the Action Plan gave only an outline. Itwas clarified that the group will further refine their action plan to make it inmore detail, explicit and workable. The senior most manager (Mr. Prabhakar)volunteered to coordinate this activity.

c) Individual Growth Goals and Support

Keeping in view the time constraint, this action plan could not be made anddiscussed. However, the exercise to identify the most important Training andDevelopment needs by the individual participants was carried out and they wereadvised to discuss with their superiors. The superiors were requested to objectivelyassess the subordinate‘s needs and do the needful to satisfy these needs. Theywere advised to do it thoroughly at the time of detailing out the Action Plan.

d) Other Actions

The participants were given another document called “for reference in courseof preparation of action plans.” Salient features of the outline are enclosed.

On the whole, the Action Planning session was quite useful, as it provided theman opportunity to quickly scan through the 3 days experiences, introspect withinthemselves and also take each others’ help. The process was quite satisfyingwhich gave a clear indication of the movement of the group on the dimensionsof cohesiveness, giving and receiving feedback, tolerance to ambiguity,recognising others resources, arriving at consensus, resolving conflicts andsensitivity to each other. All these reflected a significant improvement in theirproblem solving approach.

Interaction with Top Management

It had been planned that the CPE will be invited at the end of the programmeat about 3.30 P.M. to meet the participants and get the feedback.

The interaction was started with a brief welcome. The CPE wanted to have abrief account of the deliberations. One of the participants nicely explained in achronological order, the content as well as the process aspect, which wassupplemented by the facilitator and a few other participants. The CPE wassome times asking brief questions, otherwise he was making the notes. Thispresentation brought to the notice of the CPE many sensitive and controversialissues like—

i) Not inviting Ashok, a one senior executive (who had submitted his resignation).

ii) By passing the seniors and talking to juniors directly.

iii) Tolerating one of the heads (Mr. Prabhakar) carrying out manualproduction work instead of supervising the managers.

iv) At times being harsh on managers

v) Too much monitoring

vi) Meetings - a ritual.

The CPE first commended the participants for the hard and sincere work put inby them and also the facilitators. Then he started responding to each of theissues. Initially, he was quite humble and polite. Gradually, he becameassertive and for quite some time, when he was deeply in touch with hisfeelings, especially while describing his own and the superiors expectations andthe tough situation the company was facing. He had become ‘aggressive’ also


48

for some time which made the facilitator quite worried for some time, as itwas likely to result in an inappropriate ‘reinforcing’ at the end of theprogramme. But gradually the pent up feelings were vented out and hiscommunication became normal, friendly but assertive.

The open and frank acceptance, owning up of a few lapses on his part and theauthentic explanations of the CPE brought a number of significant issues to lightand induced a spirit of authenticity in the participants. The common perceptionof managers about the Head (Mr. Prabhakar) about the issue of his spendingtime on manual work; proved to be wrong. The CPE told that he was recruitedby him, but has consistently failed to satisfy his expectations, has remainedineffective inspite of periodic feedback, therefore, there were only two options:

i) to sack him or

ii) to put him on a job where he could contribute — and hence asked tofunction in that area where production is a bottleneck. Thus, Mr.Prabhakar was working in the shopfloor like a skilled worker in order topreserve his job and utilize his specific skills.

This statement, probably in such clear words was not desired, because it wouldhave been definitely embarrassing and having a demoralising effect on theconcerned person. (The CPE after a few days was given a feedback on thisby the consultant). The consultant and facilitator met Mr. Prabhakar alone afterthe programme and made an effort to make him comfortable.

Many of the deeply seated beliefs or value issues surfaced when he (theCPE) was speaking of the discipline and commitment issues. These were alsoreceived by the participants in the right perspective. This could happenbecause of the fact that the CPE was open, frank, data based, had a highdegree of commitment and was showing an exemplary patience in listening.This resulted in a truthful acceptance, owning up and realisation on the part ofthe participants, and many openly come out to confess their lapses and casualapproach. The CPE assured his full cooperation in further developing andimplementing the Action Plan.

End of the Programme

The programme ended with a closing intervention symbolising experiencing ofsynergy. All participants, facilitators and administrative support personnelalongwith the CPE assembled in the centre of the Hall, formed a circular chainjoining hands with each other, moved in the circle for a few rounds andstopped holding the hands of each other. Facilitator made a few statements —regarding feeling of closeness, flow of energy from one person to another, andtold the group members to experience this feeling. After a few minutes, hecoined a resolution — let our energy, feelings, competencies, learnings — to bechannelised to develop an ideal work team in organization and contributetowards progress and prosperity of the organization and the country. Then alldispersed. The joy of achievement and pain of separation could beexperienced by all while telling ‘good bye’ to each other.

Conclusion

This programme, satisfied the objectives to a very great extent. The approachof experiential learning proved to be quite effective, and it was a thrillingexperience to use a number of structured experiences and instruments. Thetheoretical input by way of lecturing was minimal. The participation andinvolvement gradually rose to the optimum level. Although no specificinterventions were planned on interpersonal relationship and self awareness,these aspects were indirectly touched upon. The group had earlier beenexposed to ‘FIRO-B’ ‘Johari Window’ concepts, perhaps, this helped in usingthe resources on other factors contributing to Team Work.

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Appendix 3

FORMATS FOR ROLE ANALYSIS

Format No. 01

ROLE EXPECTATION FORM

1. Name of the Executive :(Role Occupant or the personbeing studied)

2. Designation :

3. Deptt./Function :

4. Present responsibility/ :brief job description

5. Name of the Role Sender :

6. Expectations of Role Sender :(to be filled-up in the table givenbelow)

S.No. Functions/Activities Relative % time Remarkssuggested for the role importance (to be spent)(i.e. expectations of the rankingrole sender) (start from

1 the highestrank)

Item No. 1 to 3 to be filled up by the HRD Head’s representative

Item No. 4 to be filled up by the concerned executive (role occupant)

Item No. 5 should be filled up by the concerned executive after consultinghis superior/tasks force members or coordinator.

Item No. 6 to be filled up by the role sender.



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Format No. 02

ROLE EXPECTATIONS FORM SUMMARY

1. Name of the Executive :(Role Occupant)

2. Designation :

3. Deptt./function :

4. Present responsibility/ :brief job description

5. Summary of Expectations :(to be filled-up in the tablegiven below)

S.No. Functions/Activities Ranking (start Degree of Modifiedfor the role... from 1 the agreement/ rating

Highest rank) Disagreement

Item No. 1 to 4 will be filled up by the concerned executive.

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Alternative InterventionsFormat No. 03

KEY PERFORMANCE AREAS

(ROLE DEFINITION)

1. Name of the Executive :(or role occupant)

2. Designation :

3. Deptt./Function :

4. Present responsibility :brief job description

5. Main activities in order of :importance :(to be filled up in the tablegiven below)

S.No. Functions/Activities for the Role (KPAs) in decreasing Remarks,order of importance if any


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Format No. 04

LIST OF COMPETENCIES REQUIRED

1. Name of the Executive :(or role occupant)

2. Designation :

3. Present responsibility / :brief job description

4. Main activities :(to be filled up in the following table)

Sl.No. Key Performance Areas Competencies for the KPAsin order (in order of importance)

Knowledge / Skill / Abilities

1.

2.

3.

4.

Overall priority for next 2-3 years:

Priority No. 1 __________________

2 __________________

3 __________________

4 __________________

5 __________________

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Alternative InterventionsFormat No. 05

COMPETENCY INVENTORY FORVARIOUS ROLES (SUMMARY)

Unit ____________________________________

Deptt. ____________________________________

Section/Group ____________________________________

S.No. Title of the role & Competencies required for various rolesName of role occupant

Knowledge Skill Abilities


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Format No. 06

LIST OF COMPETENCIES TO BEDEVELOPED FOR EACH EXECUTIVE

Unit ____________________________________

Deptt./Function ____________________________________

Section/Group ____________________________________

Role No/ Name of Executive Competencies identified for DevelopmentDescription (Role Occupant)(Title of During Within WithinRole) 1999-2000 2000-01 2001-02

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UNIT 14 PROCESS OF CHANGEObjectives

After studying this Unit you should be able to understand:

what is change ?

types of change

alternative strategies of change

process of change, a few models of change

resistance to change

commonly used interventions of Managing Change.

Structure

14.1 Introduction

14.2 Drivers of Change in Business

14.3 Alternative Strategies of Change – at a Glance

14.4 Process of Change

14.5 Change Models

14.6 Phases of Planned Change

14.7 Resistance to Change

14.8 Overcoming Resistance to Change

14.9 Some Principles of Change

14.10 Reducing Resistance to Change: Few Suggestions

14.11 Commonly used Interventions for Managing Change

14.12 Summary



14.1 INTRODUCTION

The dictionary meaning of change as a noun is — ‘making or becomingdifferent, difference from previous state, substitution of one for another,variation’ etc. Change is also a verb meaning — ‘to undergo, show or subjectto change, to make or become different’. We are experiencing changes in allspheres of our lives — food, drinks, clothing, relationships, ambitions, livingstandard, work, tools, techniques. The changes are occurring so fast that peoplesay ‘in this rapidly changing world change is the only constant’.

There are numerous visible and invisible forces , which are constantly affectingchanges in organizations, a few of them may be enumerated as follows:

Technology — Tools, techniques, instruments, methods, procedures.

Work force — Knowledge, skills, ambitions, expectations, needs.

Economy — Liberalisation, globalisation, privatisation, breaking thebarriers resource imbalance.

Competition — Mergers, acquisitions, entry of new organizations, newproducts, lowering prices, better services.


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Social trends — Nuclear families, working couples, late marriages, onechild norm.

Political — Warning ideologies, new equations, transitoryrelationships, coalition Govts etc., single superpower.

Financial — New types of Finances and Financial Institutions

All changes are not similar in nature. Some changes keep on happening ontheir own and some are planned. There are three types of changes.

Evolution

Revolution

Planned change

When people are not willing or / and not prepared for facing the change,change comes gradually as a natural process, in small adjustments or shifts inresponse to emerging problems — this type of change has been calledEvolution.

When people reach a state of readiness to resolve conflicts by applying forceon others to comply through coercion or suppression, revolution takes place.

When efforts are made to make others experience the need of change anddetermine the ideal or desired situation and striving to achieve the ideal ordesired state through planned actions — planned change takes place.

Social and Behavioural scientists have made diverse approaches to understandexplain change process.

Marilyn Ferguson has described four types of change in his “Aquarian conspiracy”

Exceptional Change

A particular change is accepted as an exception; there is no change in ongoingaspects. The existing beliefs are not changed but specific change is introducedseparately, as an exception. In THE R&D division of a large organization flexitime was introduced as an exception — all other divisions were continuing theongoing system.

Incremental Change

A gradual change, those who are affected do not experience it initially.Computerisation in offices has been introduced as an incremental change inmost of the organizations.

Pendulum Change

Change from one extreme point of view to the opposite — pendulum change.In a Company elaborate procedures of open tender was in practice forengaging Consultants; suddenly they decided to go for single tender onnegotiation basis.

Paradigm change

The new information about an event, object, behaviour, image is integrated andthe ‘picture shifts’ or enlarges, emergence of a new belief — such a change iscalled paradigm change. A ‘paradigm’, in simple words may be understood asa cognitive model of how things are or a standard for how things should be.For example, the consideration for the success of a PSU today in comparisonto those in the seventies.

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Change also has been explained as a continuum — the two extremes being

No Desired ConstantChange (Productive Change) Change

No Change Position

The ‘no change’ position indicates the ‘0’ condition of ‘inertia’ — sticking totraditional view, valuing the past conservative thinking that ‘new’ is definitelybad. Any change or deviation from the past is perceived as a threat — athreat to beliefs, habits, preferences, norms and prevailing order. An example is— evolving a performance management system, constantly sticking to theprevious method — where boss does it alone.

The major benefit from this position is ‘stability’, less efforts, comfort, less riskbut it also brings no growth, boredom, dissatisfaction, conformity and stagnation.

Constant Change

The extreme ‘right’ indicates the state of ‘constant change’ and presents adynamic approach having a constant focus on future. It considers the ‘new’ asalways good. Any change is seen as positive and resistance is seen as bad —not moving with times and an opposition to the norms and values and progress.A restlessness for knowing what is new and adapting the same without ourobjective assessment of the strong and positive aspects of what is the past orthe present, not even the existing capabilities. In order to convince orimplement the changes not much regard to the affected people is given, andeffort to convince has much jargon and force and excitement. Some times, thefocus on what is important and crucial is lost. This state provides energy,excitement and a Zeal to go ahead of the traditions.

Productive (pragmatic) Change

Between the two extremes is another approach ‘the Pragmatic approach’ ofchange — which is focused on the existing state (what is happening) andchange seen as inevitable. The emphasis is on explaining the need for changeand making a conscious choice without having a fascination or inertia for thepast nor a compulsion for a rapid change.

14.2 DRIVERS OF CHANGE IN BUSINESS

There are many visible and invisible factors, which may compel a businessorganization, how to effect changes of various types. A few general changedrivers are — increased competition, Price cuts, Technology, Laws, Customer /user demand.

Change Targets

There could be a Variety of possible targets of change in an organization.A few are :

Vision, mission task, and goal

Structure

Strategy

Systems, procedures, technology

Organizational Values

Management styles

Culture

Human resource : knowledge, skills, attitudes, values

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Table 1 : Factors Effecting Change

DRIVERS CHANGES

Manufacturing : Reduced cost as a result Cost control efforts;Company of competition. Man-power cuts,

contract, employee,automation.

High manpower cost Buy (Import) rathermanufacturing,outsourcing, manpowerreduction

Cheaper imported products Setting up manufacturing/unit in other countries.

Obsolete product due to Change products,technology change materials, technology,

main equipments

Pollution Control Laws Technology import /product substitution.Putting units in areashaving lenient laws.

Retailing : Change in choice of Customer (market)Company consumers (semi-cooked research lined

food, electrical/electron retailing.kits in place of fuel basedequipments) Advertisement

Time constraint, ease Departmental stores inin shopping. place of small scattered

stores.

Health awareness -- Low Healthy products,cholestrol oils vs. traditional substitutesoils.

Time constraint Home delivery, internet /tele shopping, automation.

14.3 ALTERNATIVE STRATEGIES OF CHANGE :AT A GLANCE

Change has been a matter of great interest to the Sociologists and BehaviouralScientists. A number of theories and models have been postulated. Olmoskhas presented a comprehensive view of a number of Change strategies andcalled them ‘Seven pure strategies of change’. Each of these strategies havebeen briefly summarised and explained.

The Fellowship Strategy

The assumption underlying this strategy seems to be, “If we have good, warminter-personal relations, all other problems will be minor.” Emphasis is placed ongetting to know one another and on developing friendships. Groups that use thismodel often sponsor discussions, dinners, card parties, and other social eventsthat bring people together.

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The fellowship strategy places strong emphasis on treating everyone equally;this often is interpreted as treating everyone the same way. All people mustbe accepted; no one is turned away. When the group is making decisions, allmembers are allowed to speak, and all opinions are weighed equally. No fact,feeling, opinion, or theory is considered inherently superior to any other.Arguments are few, because conflict generally is suppressed and avoided.

The Political Strategy

Political Strategists tend to believe that “If all the really influential people agreethat something should be done, it will be done.” They emphasise a powerstructure that usually includes not only formally recognised leaders but informal,unofficial leaders as well. Much of the work done under the political strategy isthe result of the leaders’ informal relationships.

The political strategy emphasises the identification and influence of people whoseem most able to make and implement decisions. It usually focuses on thosewho are respected and have the largest constituency in a given area. One’slevel of influence is based on one‘s perceived power and ability to work withother influential people to reach goals that are valued by one‘s constituency.

The Economic Strategy

Economic strategists believe that “Money can buy anything or any change wewant.” They emphasise the acquisition of or — at the very least, influenceover — all forms of material goods, such as money, land, stocks, bonds, andany other tradable commodity. This strategy is widely used in the United Statesand the Western world and is used most often by large corporations and by thevery rich.

Inclusion in a group that espouses this approach usually is based on possessionor control of marketable resources. Influence within the group is based onperceived wealth. Most decisions are heavily, if not completely, influenced byquestions of profitability as measured by an increase in tangible assets. Thisapproach is highly rational, based on the assumption that all people act more orless rationally from economic motives. As a result, such groups often havehigh needs for control and for rationality.

The Academic Strategy

The academic strategy assumes that “People are rational. If one presentsenough facts to people, they will change.” To this end, academic strategistsundertake an unending series of studies and produce thousands of pages ofreports each year.

Inclusion in a group that plans to use the academic strategy to solve problemsor to make changes is based primarily on one’s expertise in a given area or onone’s desire to acquire such knowledge. Leadership and influence within thegroup generally depends on the degree to which the person is perceived as anexpert. Newcomers to the field are considered to have little to contribute, whilethose with advanced degrees or many years of specialized study receive agreat deal of attention.

The Engineering Strategy

Users of this strategy try to bring about behavioural change without dealingdirectly with the people involved. The underlying assumption is, “If theenvironment or the surroundings change enough, people will be forced tochange.” Therefore, engineering strategists may spend a great deal of timestudying physical layouts, patterns of interaction, and role descriptions in workplaces and classrooms without ever speaking to the employees or students.Groups that approach change in this way often recruit members based on their

Process of Change


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technical skills. Group needs often are defined in terms of technical skills,which are considered more important than interpersonal styles.

The Military Strategy

The military-style approach to change is based on the use of physical force.The name military has been given to this approach because it conveys theappropriate connotation to most people, not because the military is the sole userof this approach. Police Departments, “revolutionary” student groups, and someteachers, for example, employ the military strategy.

The basic assumption behind this approach is, “People react to genuine threats.With enough physical force, people can be made to do anything.” Therefore,considerable time is spent in learning to use weapons and to fight. Physicalconditioning, strength, and agility are valued.

Membership in military-strategy groups often is determined by one‘s physicalpower and by one‘s willingness to submit to discipline. Both within the groupand in its dealings with the external environment, influence is exerted primarilythrough the fear of authority and through the threat of punishment. Membersof military-style groups need control, status, and security. They often tend toview most problems and relationships in terms of power, authority, threat andexploitation.

The Confrontational Strategy

The confrontational approach to change is based on the assumption that if onecan mobilise enough anger in enough people and force them to look at aproblem, the required changes will follow. Although conflict is stressed, thisstrategy emphasises nonviolent conflict rather than physical force.

Membership in such a group is based on one’s ability to deal with and to useconflict in ways that benefit the group.

The Applied Behavioural Science Model

Most problems are extremely complex; a cut-and-dried approach to problemsolving is not always the most effective or thorough. This is the basicassumption of the applied behavioural science (ABS) model.

Groups that use the ABS model tend to believe that as many people who willbe affected by the decision as possible should be included in the decision-making process. Within the group, one’s level of influence is based on one’sown knowledge and the degree to which one will be affected by the decision.Ideally, the person with the most knowledge about the problem and/or theperson most affected by the decision should have the most influence.

The ABS model considers any information or theory that will shed light on thesituation and help the group to reach a decision to be valuable. Groupmembers’ emotional needs are regarded as existing primarily for emotional andintellectual integration.

14.4 PROCESS OF CHANGE

Change is process of moving from the current state to the desired state (vision)of future. Making a change involves, moving the organizations people andculture in line with the strategies, structure, processes and systems to achievedesired state (vision).

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Existing Change (Transition) VisionSituation Desired

Situation

The existing situation is the status, which is prevailing at the moment, what theorganizations looks like now. The desired situation is the status which onedesires to prevail; it is also called vision. A vision helps in clarifying—

What do we want to become?

How much needs to change?

What the Organization should look like when the change is completed?

The transition state may be defined by ascertaining the activities and processesnecessary to transform the organizations from its current state to the desiredstate — a road map — for specifying the activities, crucial interventions andevents during the transition period. For making an organization move from theexisting state to desired state some ‘force’ is to be applied.

Some forces applied by the individual(s) undergoing the change oppose theforce applied for moving to the desired state — this is called resistance. Thisalso supports Newton’s third law of motion- “Every action / force creates anopposition (resistance)”.

Successful change—the three stage model

According to Lewin’s three step model, successful change in organizationsshould follow three steps :

Unfreezing Intervening Refreezing(moving)

i) Unfreezing

Newton’s first law of motion states “Every object remains in state of rest oruniform motion in a straight line unless and until an external force is applied toit.” In the organizations also similar situations exist. When a product, serviceor profit is at a deteriorating stage but with the rapid changes there maintaininga ‘steady state’ is not possible as the situations are bringing many types offorces, usually inhibiting forces which block the pace. For example, for astagnant product, every product will remain stagnant and non-competitiveleading to decay vertically down unless and until an external, innovative andrelevant technology is proposed to cause its growth vertically upwards.

Thus for making any change some thing has to be done in a planned way todisturb the status quo: this is called de freezing (unfreezing). This stage aimsat disturbing the existing equilibrium and creates motivation to change usingmechanisms like — (a) lack of confirmation or disconfirmation (b) sharing one’sconcerns and perceptions openly, looking in to feelings, removal of barriers ofcommunications, induction of guilt and anxiety and creations of threats byreduction of psychological safety, presentation of alternative scenarios etc.

In case of any change, the effort is going to face individual resistance andgroup conformity. These change efforts for overcoming the pressures of bothindividual resistance and group conformity.

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62

Two types of forces emerge and at the status quo, both are in balance

a) Forces prompting the change — forces that direct the behaviour awayfrom the status quo — “Driving forces”

b) Forces hindering the movement away from the status quo — Restrainingforces.

Restraining forces

Driving forces

FORCE FIELD

Figure 1 : Forus and Change

For affecting the change :

The Driving forces should be identified, assessed and intensified / added.

The Restraining forces should be identified, assessed and weakened /removed.

Both strategies are followed simultaneously.

The technique described is called ‘Force field analysis’. The method includesthe following steps:

1) Identify the problem, which you want to work and describe it.

2) Define the problem clearly indicating the present situation.

3) Define the situation desired after the problem is solved.

4) Identify the forces working for the change i.e. driving force by way ofindividual listing, brainstorming or any other means.

5) Identify and list forces likely to work against the desired change(restraining forces). These forces can be related to human resource,time, money, technology, customer requirements or any other internal,external factors.

6) From the list of driving forces and restraining forces, prioritise the forcesand identify 3-4 most significant forces under each of the both categories.

7) Make a force field diagram showing both types of forces afterprioritization. The arrows should be proportional to their priority / strength.

8) Discuss and list possible action steps for reducing or eliminating theeffect of the restraining forces and add or increase the effect of thedriving forces.

9) Determine the most effective steps under both the categories of forcesand outside which once to implement.

10) Examine the resources available for carrying out each action steps.

11) Develop a comprehensive action plan, sequence of activities and assignresponsibilities for implementation.

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12) Implement the plan.

13) Evaluate.

ii) Moving / Intervening

The steps to be taken for making the desired change should be plannedconsidering all aspects — Tasks, Technology, Structure and Human Resource.Since any organization is composed of these four inter-related and inter-dependent components, the impact of the changes should be anticipated andexamined. Since the organizational environment is a resultant of three or fourcomponents — and any organization exist in environment analysis of internaland external environment is essential.

This step aims at developing new responses by providing new information.Cognitive redefinition is a mechanism, which is achieved by identification(information) through a single source and scanning (information through multiplesources).

Refreezing

The change interventions start making the desired status in due course. Theseare to be stabilised. Refreezing stabilises a change intervention by balancing theforces which have created the desired (driving forces) and those, which areinhibiting the changes to occur (restraining forces).

Here also, Newton’s Second Law is quite helpful in understanding — “The rateof change of momentum is proportional to force applied and change takes placein the direction in which the force acts”. Hence, for rapid and deep change,forces applied should be strong, direction should be clear and force applied inthe right direction.

This stage helps stabilising and integrating the changes. This is gained byintegrating new responses into persons and into significant ongoing relationshipsthrough reconfirmation.

14.5 CHANGE MODELS

1) C.D.S. Model

This is a very simple 3 stage model developed using the work of Bechhard andHorns (1987). The three stages are:

i) Assessment of current state (scenario)

ii) Developing the desired State (scenario)

iii) Formulating the strategy / plan to move the organization (or system) fromcurrent state to the desired state.

Assessment of Current State

At this stage, efforts are made to explore, analyse and identify the problemsand unused opportunities, understanding the causes visualizing the effects. Forthis, a climate is to be created where people share their views, opinionsexperiences openly and the management is willing to admit the gaps, slippages,wastages and other problems.

Normally, a long list is generated and it is essential to prioritize and identify‘points of leverages’ — problems, which have high priority.

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Developing the Desired State (Preferred Scenario)

At this stage, efforts are made to determine how the organization ororganizational unit, project or the programme would look like after making thechanges. For preparing the scenario, alternative possibilities or preferredscenario are developed by using techniques like brainstorming, fantasy or avariety of structured exercises. Efforts are made to stimulate both right braintype thinking and left-brain type of thinking so that both conventional and non-conventional ideas are captured.

A few indicators or criteria are also developed to indicate the achievement ofdesired state. These criteria would help in future to determine to what extentthe desired scenario has been arrived at.

Evaluate each of the scenarios by using different evaluation methods and select themost visible one. At this stage, left-brain type of thinking will be quite useful.

Anticipate the difficulties likely to be experienced while making action steps toreach the desired scenario. Examine if appropriate steps can be taken andresources will be adequately available. Otherwise, examine the feasibility ofimplementation of the next preference.

Re-work on the selected preferred scenario to make it more explicit and inspiring.

Getting the commitment for the change initiatives and resources, the commitmentof the key persons in the organization and outside should be assured.

Formulating the strategy action plan to move the organization from the currentstate to the desired state

These states deal with how the movement from the existing to the desiredstate would be accomplished. Thus, this stage would indicate how the resultswould be accomplished. For this, a wide range of strategies to reach the newstage or preferred scenario would be identified. Using the right brain typethinking, the alternative strategies are identified, then evaluation of each of thealternative strategies would be made and that appropriate strategy would beselected which would help in achieving the desired outcome. These strategieswould next be translated in the form of workable plans.

2. ADPI Model

This Model is based on the work of NR Jones. It consists of the followingstages.

Figure 2 : ADPI Model

Organizationalanalysis

Implementation

Planning the Change

Designing ChangeIntervention

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Organizational Analysis

This phase aims at developing an understanding about the organization, itsculture and readiness for change. Efforts are made to understand the tasks,structure, strategies, systems, procedures and management practices, morale,motivation and internal and external environment. Different researchtechniques, interviews, brainstorming and workshops are used.

Designing Change Intervention

At this stage, vision or the desired state of the organization is prepared. Activeinvolvement of Top management and a wide agreement on the interventions areessential.

The key resource persons and other team members must be identified andsome team building initiatives are taken to ensure shared vision and commitmentto change. Role of each member should be clarified.

A number of workshops, training sessions, meeting and presentations are usuallyheld at this stage.

Planning for the Change

The objective of this stage is to plan for effecting the desired changes forachieving the vision. An action plan is prepared indicating the activities,responsibilities, time frame, counting huge measures and required resources.

Implementation

This is the most crucial stage. The action plan has to be implemented. Theinvolved persons are to be educated and convinced about the gains. Extensivecommunication is required and high orders of leadership skills especiallypersuading skills are required. A number of presentations, meetings, workshopsare to be held. The success depends on the internal resource persons orfacilitates who would work in tandem with the change agent / consultant. It isdifficult to get successful implementation without Project Management skills.

3) Action Research

A change process based on systematic collection and analysis of data is calledaction research. In this approach, data is collected to diagnose the problem andaction steps are identified on the basis of the analysis of the data. It is a five-step process. These steps have been enumerated as follows.

Diagnosis

Under the guidance of a change agent / consultant, data is gathered about theproblems, perceptions, concerns and the expected changes from the employeesof the organization. Questions, interviews, secondary records and a variety oftechniques are used for collection of data.

Analysis

At this stage, analysis of the data collected in the previous step is carried outto identify the problems, patterns of behaviours etc. The change agent orconsultant draws inferences and identify the primary concerns, problem areasand expectations.

Feedback

Action research is a collaborative process and therefore emphasises deepinvolvement of the employees likely to be involved. Therefore, the highlights ofthe analysis in terms of concerns and problem areas are shared with theemployees specially those cross sections from where data had been collected.

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66

With the help of representatives of employees, action plan for bringing aboutneeded change in the specific areas is carried out.

Action

Actions planned in the action plan mentioned above are set to motion in linewith an explicitly prepared implementation plan.

Evaluation

At the planned intervals, an evaluation is carried out to know to what extentimplementation has taken place and desired changes have been arrived at.Necessary steps may be taken for collection, modification or further work.

4) OD models

As discussed in Unit 13, OD efforts are comprehensive change effortscomprising a variety of focus. The model mentioned in Unit 13 with examplesof different OD interventions may be referred.

14.6 PHASES OF PLANNED CHANGE

For getting the enduring results, change cannot be left to choice; rather plannedefforts will have to be made. Consolidating various models, a general approachof making planned change may be evolved —

– Creating awareness and disturbance.

– Feeling the need of change

– Exploring the readiness

– Diagnosis

– Designing and planning interventions

– Intervening — managing the transition

– Evaluation and

– Follow-up

Creating and Communicating Awareness

It is a well-known fact to many that frogs are amphibious creatures havingtremendous adaptability. They have survived all ages because of this — theycan survive in all climates, in all situations, all temperatures. Some experimentscarried on frogs in laboratories are highly shocking.

In a few shallow pans, frogs were kept in water at normal temperature. Thepans were kept on Bunsen burners which were heating the water in pans veryslowly. Even if the water became very hot the frogs did not jump out of thepans — quite surprising. The water started boiling — the frogs got boiled!

Pans with room temperature water once again put on the bunsen burners.When the water became quite hot (but not boiling) around 60 - 70 Degree Ctemperatures frogs were dropped in the pans. Within flash of moment frogsjumped out and save themselves.

Many of us are like the frogs — we develop tolerance and adaptability andignore the “temperature” and end up boiling. ‘Awareness’ therefore is the firststage. A process of enhancing the awareness of self by considering the aims,goals, vision, mission and the state of their achievement, future environmentalscenarios, extrapolations and forecast is useful for enhancing awareness.Bench marking and competitor intelligence are two other triggers of enhancingawareness.

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The awareness creates anxiety to create future scenarios, — likely gains andproblems — and therefore generates energy in those who become aware. Forexample, in BHEL in 1983, the HR Manager was trying to project the role ofPersonnel function in achieving the Corporate objectives (1985-90) and couldrealise that if the manpower strength and turnover/sales keeps on increasing atthe previous rate, then in 1990 the company will be in red only because ofManpower strength. He got alarmed and made a series of presentations indifferent fora. After initial reaction, the top Management also became awareand alarmed of the impeding situation. This created planned efforts ofManpower Planning in the leadership of the HR Manager. After 2 years, theManpower strength started decreasing — today the strength is 43,000 againstthe strength of 78,000 in 1983-84. The turnover during the period hasincreased from Rs. 800 crores to 8000 crores.

A variety of strategies, such as presentation, publications in Newsletters,workshops, Quiz, sessions and presentations in Management Developmentprogrammes may be used for enhancing awareness.

This awareness creates an imbalance and disturbs the status quo. Peoplebecome uncomfortable and respond in different ways. Usually energy levelincreases for denial and opposition of the issues.

Feeling the Need

Once the awareness spreads and increases, the involved people start feeling theneed of the change of elimination of the unhealthy situations. They startthinking about ways and means to avoid this undesired situation.

People start thinking about the consequences if no change is made.

When the actual / projected results are not in line with expectations, needs areintensely felt.

Any person at any level can feel the need, but sharing will help enhance theclarity.

Exploring Readiness for Change

In spite of the strongly felt need, it is essential to explore the readiness of theorganization to change. A process facilitator may call a meeting / workshop ofsenior people and on the basis of observations on the interaction, he can get anidea of the readiness to change. When too much fascination for the status quois sensed, fear and apprehensions are strongly expressed, case of failure arecited more than success stories, resource scarcity is repeatedly presented —resistance to change efforts is likely to be high. OD should not be initiated ina hurry.

Some consultants conduct a few workshops for assessing the readiness.Instruments / questionnaires are also used by some consultant. An approachdeveloped by J William Pfeiffer and John E Jones may be suggested. Thisapproach is based on 15 indicators, which they have developed in the form of acheck list (instrument). The indicators are being enumerated below under threebroad classes.

General Considerations

Size of the organization

Growth rate

Crisis (situation)

Macro economics

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OD history

Culture

Resources

Time commitment

Money

Access to people

Labour Contract limitations

Structural flexibility

People Variables

Interpersonal skills

Management development

Flexibility at the top

Internal change agents

This instrument / check list can be served to a number of people in theorganization, including the top management and the findings should bediscussed. This will not only give an idea about the readiness, but also raisethe awareness towards some of the crucial pre-requisites. For details ‘ODreadiness’ by J.W. Pfeifer and John E Jones’ in ‘The 1978 Annual Handbookfor Group Facilitators may be referred.

A few questions may be considered for examining various aspects —

Commitment / support of the Top Management for desired changes.

Sense of urgency advisable in the top management.

The perceived Power of Top management.

Clarity of vision in Top management.

Shared vision — to what extent the vision is shared by stakeholders.

Congruence of targeted change efforts with ongoing change efforts in theorganization.

Decision making style and quickness.

Hierarchy in organization — flat and flexible more conducive to change.

Super ordination — Willingness of Line Managers to sacrifice their personalinterest for the good of organization.

Customer focus of the organization.

Monitoring of competitors by the management.

Risk taking — the extent to which managers / employees are rewarded fortaking risk.

Innovativeness — the extent to which innovativeness is encouraged.

Communication channel — both directions.

History / experience of past change efforts.

Trust level between employees and management

Availability of Resource persons (change facilitators — internal / external)

Cooperation / Collaborative attitude.

Sharing the benefits of change enhances readiness of change.

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Diagnosis

This has been discussed in Unit 13.

Planning Interventions

This is also discussed in Unit 13.

One should be able to agree on defining

What are the specific goals of change?

Who are the involved people (stake holders)?

What are the restraining and driving forces?

What contingency measures to be considered for emergency situations?

What interventions will be made?

How the success will be measured? etc.

Intervening — Managing the Transition

Preparing the Team

For carrying out the interventions, a team of internal resource persons isprepared. Ideally, this is a multi-disciplinary team which would make theinterventions and help in its successful implementation. The internal resourcepersons should be skilled in Human Process facilitation and should haveundergone intensive training programmes.

Conducting the Activities

Whatever interventions have been planned, are to be implemented. In manyareas, employees would pose resistance which is to be overcome. If theapproach appears to be inadequate or inappropriate amendments are to bemade. The experiences are to be documented highlighting both process andcontent aspects. Regular interaction with the committee / task force membersand Consultants is very essential.

Mid Course Evaluation

After interventions have been made, periodic evaluation is required forascertaining whether the interventions are bringing desired results. If yes, thenfurther follow up is required. If not, it must first be examined whetherinterventions have been made as per the plan. If interventions have been madeas per the plan but are not giving the desired results, the causes must beexamined and if needed, alternative interventions should be designed andintroduced.

Before making the interventions, the management / facilitators should be clearabout.

a) What is the change going to be made?

b) What are the reasons for benefits of the organization?

c) How will change affect the individuals – who experience it?

d) What supports and tools are needed to manage transition?

While making interventions the involved persons force different types ofproblems.

The processes at the transition stage are quite important. Whenever managerssuspect that the change is likely to come — their initial reaction is that of“shock”. Their performance starts receding and they give different negativecomments. This shock starts spreading. In a multi unit public sector undertaking,

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when the Top Management decided to introduce a KRA based PerformanceManagement System, there was an initial reaction of shock. It affected theirsense of well-being and perform adversely.

Soon after, a strong tendency to deny that there is anything wrong in theprevailing system emerged and managers tried to show an enhancedcompetence (ability) to protect the existing status. They started showing thatthe present system was quite good. Very soon, there was a realisation that theaverage is imminent and they have to bear the pangs of change. Thisrealisation was spread and managed positively for enhancing the readiness ofchange by introducing planned efforts by introducing mechanisms for awarenessgeneration, training, involvement of users, interest and support of senior and toplevel managers. All these created strong emotions — at one side fear ofunknown — on the other side benefits of the new system, pressure on roles,future possibilities, benefits, losses, implications etc. The pressure for unlearningthe existing ways and learning the new ways created different types of fearsand anxieties.

The ensuring uncertainty created frustration in many leading to sliding downsense of well-being and performance level. The intensified training sessions,realization of possible losses and benefits, envisioning of future gradually ledexecutives toward acceptance of the system. The sense of confidence, wellbeing and performances started climbing upward. The desire and effort ofexperimentation started getting reinforced. They accepted the challenges andstarted efforts for adopting the new system. There were slippages andmistakes — which got rectified. Communication enhanced and people startedsharing their experiences — feelings, hopes, successes, failures. The leadershiphelped people to get a better understanding.

The evaluation of the emerging situation, feedback amendments and enhancedcommunication, helped integration of the efforts and the system gotimplemented.

Evaluation / Follow up

The results of the change initiatives should be measured periodically — the gapbetween the planned and desired. For this, a befitting feedback mechanism isto be set up — to gather information by survey, focus groups, interviews etc.Usually, it has been found that even if encouraging results are obtained in thebeginning, with the passage of time, it starts deteriorating. Managers interveneby way of providing support, appreciation and training etc. Special meetings,celebrations, support groups and certain types of reinforcements are needed forsustaining and enhancing the results.

14.7 RESISTANCE TO CHANGE

According to Newton‘s third Law of Motion “to every action there is an equaland opposite reaction.” Resistance to change, is therefore, bound to be there.Real change will be effective only when -

Driving forces > Restraining forces

Resistance is ability to avoid what one does not want from the environment.Resistance to change is a behaviour designed to discredit, delay or prevent theimplementation of a change.

Resistance is of two types — Individual resistance and Organizationalresistance. Resistance is not always harmful.

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An individual poses resistance to all those efforts, which are against his/her‘Self Concept’— a response to protect one habits, beliefs, values. Resistanceprevents from getting hurt, guards one’s effectiveness, heightens one’sawareness to oneself and keeps one from becoming distracted. It providesstability and predictability of one‘s behaviour. If there is no resistance, there willbe a ‘chaotic randomness’ in organizations. Resistance stimulates discussionsand re-examination.

In organizations resistance helps in differentiating talents, providing newinformation, producing energy and making the work environment safe (HBKarp). Resistance, thus, gives both benefits as well as problems.

Individual Resistance

Resistance in different situations has varying intensity. The idea itself generatesthe first level of intensity — it is the initial or the first response when a personcomes to know about the proposed change. This is primarily because of thenatural liking for the ‘status-quo’. This is also due to lack of awareness aboutthe desired change — its importance, impact, costs and benefits, their ownconcept and view of the changes. Some times even if the change is derived,there is a dislike for the timing, the change agent, the cost factor or the extraefforts required.

There are some issues, which are not observed or experienced initially. Theseare the deeper issues. The issues may not be found to cause resistance initially,but it is experienced and becomes visible while discussing or working on theissues. These appear in different ways:

Mistrust

Punishments

Rewards

Need for respect, reward, recognition

Fear of loss (monetary or status)

Lack of resilience.

The level 3 issues are deeply imbedded — entrenched. This is caused byconflicting values, visions, life goals, historical animosity etc. This may be as aresult of the combination of some factors described at previous two levels.

Resistance to change does not always becomes explicit or observable. Mostlythese are hidden and come out indirectly, therefore, it is not easy to observeand anticipate.

Some causes of individual resistance:

- Increased work load — loss of comfort

- Loss of security (the unknown)

- Loss of belongingness (with new people)

- Failure (loss of esteem)

- Loss of interest (boredom)

- Change in habits (loosing ease and spontaneity)

- Loss of income (economic facts)

- Loss of change in perceptions — inner disturbance and lack of communication.

The resistance of change is of different types:Logical, Attitudinal and Sociological.

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Logical resistance is based on rational gaps or disagreements with facts,reasoning and conceptual differences. Attitudinal resistance is due to emotionalor psychological reasons like fears, lack of trust etc. Sociological resistance isdue to group / social aspects like politics, vested interests, sharing of benefits ofa particular group, presentation of group‘s identity, value report etc.

To summarise, individuals resistance to change is due to one or more of thefollowing reasons as enumerated by R. Likert and others:

Selective Perception

Employees perceive same events / things differently — as such the changeobjective and outcomes are not perceived exactly in the same way. Alsopersons are more interested in seeing how they would be affected personally,rather than seeing the big picture.

Fear of Unknown

People prefer familiar actions and events; change brings in new patterns, whichdisturb the habits.

Lack of Information

Lack of knowledge or information about what is expected or why the changeis important or how change will effect and whom results in resistance.

Hostility towards Change Initiator

The image / relationships with the change initiatives causes some resistance.

Organizational Resistance

Organizations, by nature, are conservative and resist change. A few sources oforganizational resistance have been enumerated below :

InertiaThreats to Power

Group norms

Resource Threat to Limitedallocation expertise focus

Figure 3 : Organisational Resistance

Inertia

Due to the Task, Structure, Strategy, Technology, Systems, Procedures andfamiliar people, organizations get frozen or are in a steady state. The idea ofbringing in charge creates the feeling of disturbance in the equilibriam. Henceresistance.

Limited Focus

All organizational systems are inter-related, therefore change in one causesstress and strain on others. Therefore, if a change is carried out in one system/sub-system, there is a natural tendency in the other components to resist theensuing changes — as these do not want to get disturbed.

OrganizationalResistance to

change

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Group Norms

By way of the past interactions working, a group norm settles in. Changequestions these norms and seeks establishment of other norms — henceresistance.

Threat to Expertise

People have acquired a degree of expertise and specialisations which makethem comfortable and self esteem is high — due to change in organizations —there is a danger of getting some of the expertise obsolete and acquisitions ofnew expertise /specializations. This needs a lot of personal / group effort — assuch resistance.

Threat to Power

Change may bring in new structure, new technology, new systems, procedures,new delegation of powers, new relationships that may cause a threat to someof the sources of power, hence resistance

Resource Pressure

All the above-mentioned changes may create pressure on various types ofresources including manpower resources. This perception causes resistance.

Many Scholars and Professionals have conducted research for understandingcauses of resisitance in organizations. Some of the important causes ofresistance to changes have been enumerated as following :

The proposed change has not been described through documents, writtendown description not available.

Lack of clarity on the purpose of the change.

Lack of involvement of the people affected by the change.

Change efforts initiated on the basis of a personal appeal.

Group norms and organizational culture have not been considered.

Lack of information to employees about the change

Sharp increase in workload during implementation.

Non-additional and resolution of the worries and concerns and fears of theaffected persons.

Non-clarification / resolution of the issues and anxieties relating to jobsecurity, transfers redeployment etc.

14.8 OVERCOMING RESISTANCE TO CHANGE

As mentioned earlier, resistance is a positive force and provides opportunitiesfor having a thorough understanding of contextual factors as well as issuedirecting and emerging out of the interventions.

Some managers use strategies to break the resistance using coercion oremotional appeals — which prove to be dysfunctional. Some managers try toavoid or bypass the resistance by ignoring the opposition views, opinions andfeeble signals. They don‘t confront the issues or do some thing to deflect theresistance by some gimmicks and tactics — ultimately fail to deliver results andcreate a number of dysfunctional processes in the organization. Otherdysfunctional strategies used by managers for overcoming resistance are — theefforts of minimising the resistance by calling on traditions, attributing the causeof change to group or Top Management and hiding the emerging issueshighlighting some thing of the past or future.

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Overcoming resistance to change calls for a positive approach towardsresistance. One may try to agree to the assumption — Resistance is a positiveforce and needs to be honored rather than suppressed, avoided or minimised.’Another assumption is ‘encourage the free expression of resistance and capturethe key ideas’. The positive approach suggests that the Resistance should beencouraged to be brought to surface, it should be honored rather than showingreaction or defensiveness. The issues (resistance) should be explored andemotional and tangible issues should be separated. Then the issues andunderstandings should be reviewed and real issues identified and clarified. Thecause and effect diagram will be useful.

14.9 SOME PRINCIPLES OF CHANGE

Change has been one of the most interesting and intensive issues before socialand behavioural scientists. On the basis of their research and experience anumber of principles / rules have been formulated. Some of these collectedthrough various sources are:

Organization is a system comprising many inter-related / inter - dependentcomponents. Change in one component affects others.

Accepting ownership in the change process best facilitates change.

Any change upsets the equilibrium of the organizational system — hence itwill be resisted. Change interventions should be made in a planned way,otherwise the system would return back to its past patterns

People really don’t resist change; they resist the pain or threat, which theyanticipate for themselves or others out of it.

An enlightened self-interest of stakeholders helps in changing.

There is a high significance of ‘timing’ in change — time should be ripewhile making changes.

An accurate and comprehensive design diagnosis is essential for designingappropriate interventions.

Through Power, one gets what one wants to get, by posing resistance onetries to avoid what he does not want to get or do.

Change agents are required for affecting changes. They must know how toanalyze and manage the restraining and driving forces.

High adaptability helps change agents and change plans.

High self-awareness is required in change agents, which helps the planningfor change.

Honoring it, rather than suppressing, avoiding or minimising it best managesresistance.

The people affected by change should actively participate in making thechange.

A person can work best with other‘s resistance by first understanding andaccepting his own resistance.

The acceptance of organizational change will increase if the peopleaffected are invited to contribute to the change process, communicatedhonestly about all facets of change, given concrete feedback about thechange and recognized appropriately for their specific contributions.

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14.10 REDUCING RESISTANCE TO CHANGE : FEW SUGGESTIONS

To reduce resistance to change in the key steps, few suggestions are discussedbelow:

i) Initiation of Change

Resistance will be low if the persons involved perceive the change projectas their own, rather than imposed on them by others.

Resistance will be low if the whole hearted support from Top Managementis available.

ii) Type of Change

Resistance will be low if the involved persons are convinced that thedifficulties experienced in their job would come down after implementation.

Resistance will reduce if the change is likely to bring interesting andsatisfying experience, to the concerned individuals.

Resistance will be less if the change is congruent and supports the valuesand ideals of the concerned individual.

The perception that the power autonomy, and security will not be adverselyaffected.

iii) Process of Change

If the persons likely to be affected have taken part in diagnosis, and haveagreement on the basic change problems and felt its importance —resistance will be less.

Resistance will become low if the change makers (or sponsors) (i) see theopponent‘s view points empathize with them and (ii) take steps to removetheir perceived fears.

Resistance will be reduced if feedback is taken from the affected personsand they are apprised of the steps to be taken.

If there is enough change flexibility and project is kept open to revision andamendment on the basis of evaluation and feedback.

14.11 COMMONLY USED INTERVENTIONS FOR MANAGING CHANGE

It is very difficult to enumerate and explain all interventions for managingchange effectively. However, a few important techniques commonly used areenumerated below :

Communication

Authentic and complete communication on the objective, coverage, timing, costs,individual and organizational implications and change methods and theconsequences of not going for change and post change benefits is mostessential for managing change.

At the Corporate office of a large organization, as prelude to making change, itwas diagnosed that the executives numbering 15 were not communicating witheach other. The communication climate was hostile and top management wasperceived as autocratic. Enhancing Communication climate emerged as one ofthe major concerns. As one intervention, the executives were asked to sit

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together for 15 minutes in the conference hall around the round table. Initiallyexecutives resented it but gradually they started sharing some of the operationalproblems they were facing and others started responding by giving theircomments and solutions. They started opening up and sharing their feelings,concerns, agreements and disagreements etc. Within a few weeks, this meetingbecame the most liked forum of communication and sharing. Often they had toextend the timing. This forum became the initiating and facilitating platform forthe major changes the function made for next few years.

There is no standard plan for communication, but pre intervention diagnosisshould attempt to understand the communication climate, styles and barriers.Creation of a supportive communication climate is highly useful in makingchange interventions.

Education and Training

All involved persons may not have the desired environmental, organizational,functional, technical, financial, strategic, behavioural knowledge and skills.Education and training is very essential at all stages.

In the pursuit of designing and commissioning a comprehensive PerformanceManagement system in a large PSU, almost two years were spent in educatingand training the senior management personnel and users to make themunderstand the concept, realize the need, express their satisfaction anddissatisfaction from the existing system, define their expectations from theproposed system. Even the design of the proposed system was prepared intraining and developments programmes using Behavioural Science basedinterventions. After the programme was approved for implementation, a seriesof training programmes were conducted for the users. Background support wasprovided through internet and publication of literature. Over 200 PerformanceManagement Systems trained separately or ensuring smooth implementationcould multiply the efforts. Even an interactive website was installed forresolving the doubts on line. All this helped in covering a large section ofwidely prevalent executives in a short time and fear of change could be almosteliminated.

Participation and Involvement

The persons likely to be affected need to be involved right since the initialstage. Their active involvement in all stages of the processes not only willprovide valuable ideas at every stage; rather it will inculcate a sense ofownership.

In installing an incentive scheme in a medium size Engineering company, theline managers and worker representatives were involved right since beginningi.e. from the stage of feeling the need, identifying the benefits and problems,collecting and analysis of data and designing the system and developing theearning table.

Facilitation and Support

The change initiatives are to be facilitated by skilled Facilitators (changeagents). This helps in surfacing the issues, proposal — resolution of conflict,team building and development of a conducive change climate.

Facilitation is a process in which a person, acceptable to all members of thegroup, substantially neutral and having no decision making authority intervenesto help a group improve the way it defines and solves problems and makesdecisions in order to enhance the effectiveness of the group.

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To intervene, according to Chris Argrysis, means to enter in to an ongoingsystem for the purpose of helping those in the system.

The main task of a Facilitator is to help the group increase its effectiveness byimproving its processes.

A process refers to how a group works together and includes how memberstalk to each other, how they identify and solve problems, how they makedecisions and how they handle conflicts etc.

Normally in a group, without a Facilitator, members focus on contents andignore the processes. Content refers to what a group is working on, what is thesubject matter, task, methods, procedures, cost, time, controls etc.

Facilitation is of two broad types- basic facilitation and developmental facilitation.

In basic facilitation, it is expected that the Facilitator would guide the groupusing the principles of effective group processes -observing both contents andprocesses.

In developmental facilitation, group members expect the Facilitator to monitorand guide the group‘s processes and teach them how to accomplish this goal.

Negotiation

In dealing the resistance, negotiation is quite useful as the change agent has toexchange something of value for reducing the resistance. This also is usefulwhen resistance comes from a powerful person. Three basic types ofNegotiating Styles have been described — Tough battler, the SupportiveFacilitator and Cognitive Reasoner. A negotiator should understand these 3styles and should be well versed in using all the three styles as each style iseffective in a particular situation. There are a few other models alsodescribing different styles of negotiation. Although Collaboration is the mostdesirable strategy, other strategies - avoidance, accommodation, Competitionforcing and compromise also have their limitations and benefits.

Co-opting

Assigning a key individual member a desirable role is quite effective inmanaging change. The co-opted person becomes a Key Resource Person incharge of project and by way of his power base, is able to influence others.His involvement and contribution helps the change process.

Two other interventions mentioned below are not positive interventions,however, in critical situation, these interventions are also useful.

Manipulation

It is a covert influencing tactics which uses twisting and distortion of facts tomake them appear more attractive and potent. This also includes hiding orwithholding undesirable information, and creating rumours. Cooptation alsosometimes is used as manipulative tactics.

Coercion —Implicit and Explicit

This involves application of direct threats or force on those who are resisting orare likely to resist. In situation of crisis it is often successful, otherwise not soeffective.

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14.12 SUMMARY

In this rapidly changing world change is the only constant. In this unit we havetried to define change, understand the concept of change and types of change.Drivers for change and alternative strategies of change has also beendiscussed. Different models of change are described followed by the conceptof resistance to change and how to overcome resistance to change.


1) Consider your present job and indicate which benefits emerging out of aneffective change management is most important to you ?

a) Career advancement

b) Improved prospects

c) Job Security

d) Increased job satisfaction

e) Respect and recognition

2) a) Which of the changes at your work place you experienced in therecent past —

— new boss — new system / procedures

— new work group — new products / services

— new position (responsibility) — new customer

— new equipment — new location

— new suppliers

b) Which change was most difficult for you ?

c) What were your thoughts and feelings before the change? Did youhave any fears ? What were those ?

d) How did you cope with the change ?

e) What would have helped you to cope with the changes better?

3) Complete the following sentence by writing as many adjectives / phrases asyou can think of

Change is ---------------------------------------

e.g. painful, agonising --------------------------

4) Complete the following sentence by writing as many adjectives / phrases asyou can think of

Change is -------------------------------

e.g. refreshing, energetic, profitable ---------------

5) Think of a change which would be beneficial to your company /organization and respond to the following four questions --------

a) What is the change you have thought of ?

b) What are the reasons / benefits of the change ?

c) How would the change affect the involved persons ?

d) What support and tools should be provided to the involved persons formanaging the transition ?

6) A large scale company is to introduce a new Performance ManagementSystem. Presently, the company practices an annual confidential report typeof appraisal system, which is done by the superiors annually.

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Fergusan, M. The Acquarian conspiracy: Personal and SocialTransformation in the 1980s. (Ed. J.P. Tarcher) LosAngels (1980).

Olmosk, K.E, Seven. Pure Strategies of Change in The 1972 AnnualHandbook of Group Facilitators (Ed. Pfeiffer & Jones), Pfeiffer &Company San Diego(1972).

Kurt Lewin, Field theory in Social Science, Harper and Row, New York(1951).

Beckhard, R. Harris, R.T Organizational transitions: Managing ComplexChanges, Addison Wesley (1987).

Jones, Neil Russel, The Managing Change, Research Press, New Delhi(1997).

Eager G., Change Agent Skills: Assessing and Designing Excellence,University Associates California (1988).

Fohman, Mark.A. et al. Action-research as applied to Development, inOrganization Development and Research (Ed. Wendell L French et al)Business Publications Inc., Dallas (1978).

The 1978 Annual Handbook of Group Facilitators, Pfeiffer and CompanySan Diego (1978).

Lilkert, R. New Patterns of Management, McGraw Hill, New York (1961).

Likent, R, The Human Organization, McGraw Hill, New York (1967).

Retaining Professional Nurses: A planned process Vogt. et al. The C.VMosby, St. Louis (1983).

Ross, Kubler, Elizabeth., Transition Curve in Creating Culture Change :Successful Total Quality Management. Atkinson, E., Philip, ProductivityPress (India) Pvt. Ltd., Aladran (1990).

Chris Argyris, Management and Organization Development: The Path formXA to YB, McGraw Hill, New York (1971).

Chris, Argyris, Intervention theory and method: A Behavioural Science View.Reading, Mass: Addison Wesley (1970).

K. Thomas, Conflict and Negotiation process in Organizations inHandbook of Industrial and Organizational Psychology (Ed. M.DDunnette and L. M Hough), Consulting Psychologists Press Alto CA(1992).

Karp, H.B., The Change Leader, Pfeiffer & Company, San Diego (1996).

Lewin, Kurt. Field theory in Social Science, Harper & Row, New York(1951).

Beckhard, R. Harris, R.T Organization transitions: Managing ComplexChanges, Addison Wesley (1987).

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UNIT 15 CHANGE AGENTS:ROLES AND COMPETENCIES

Objectives

After going through this unit, you should be able to deeply understand:

various roles of Change agents

the competencies, especially the skills required for the effectiveness ofchange agents.

Structure

15.1 Introduction

15.2 Role of Change Agent

15.3 Competencies of Change Agents

15.4 Summary



Appendix 1. Designing and Implementing Performance Management System :The BHEL Experience

15.1 INTRODUCTION

Change is enevitable in the history of any organisations. Organisation that donot change or keep pace with the changing environment suffer from entropyand soon become defunct. Organisations have an internal environment, but existin an external environment. The internal environment is in terms of the task,structure, technology, social (people) and economic variables, while the externalenvironment is in terms of the larger social, political, economic and culturalfactors. To function effectively, organisations have to achieve an equilibriumwithin the internal variables in active interaction with each other and also withthe external environment. However this equilibrium is not static but dynamic.Hence organisations have to modify and change to adapt to the changinginternal and external environment. Thus no organisation can stand still and“tread water” for very long.

Different people have given different definitions. A few have been reproducedbelow :

“Persons who act as catalysts and assume the responsibility for managingchange activities.” — Anonymous

“People who stimulate, facilitate and co-ordinate change within a system whileremaining independent of it.” — Newstorm and Davis

“Persons who act as catalysts and assume the responsibility of managingchange activities in an organization.” — Robbins, P. Stephen.

Managers, non-managers, employees and outside consultants can bechange agents

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15.2 ROLE OF CHANGE AGENT

Change agents have diverse roles. They create a state conductive to changeand also produce desired change.Some professionals consider three main roles of change agents, of coursesomewhat overlapping and with varying focus and emphasis. These three mainor primary roles are:

Consultant;Trainer; andResearcher.

These three roles are have been briefly described below :

Consultant

A Consultant is a professional (internal or external) who applies behaviouralScience knowledge in an ongoing organization (or client system) with clearobjectives of managing change and improving effectiveness.

A consultant is a professional assisting managers and organizations in achievingorganizational purposes and objectives by solving management and businessproblems, identifying and seizing new opportunities, enhancing learning andimplementing changes.

According to Curtis Mial : “The Consultant may serve as the exhaust value,enabling the client to let off steam : as the ignition to spark action; as theaccelerator to buildup momentum; as the break for too quick action; as the radiatorabsorbing some of the heat of the controversy; as the shock absorber when thegoing is rough; or as the fog lamp when the future is hazy. The Consultantmay fulfill a variety of functions, but one thing he/she is not the driver”.

If we see the definition, we find that ‘Change agents’ and ‘Consultants’ have manyroles in common, and that’s why, these two words are used interchangeably.

The role of a Consultant may be ‘content role’, ‘process role’ or a combinationof both. In other words, a Consultant may have ‘Task orientation’, ‘Processorientation’ or a combination of both.

In the fully ‘Task oriented’ or ‘Technical expert’ role, the Consultant identifies /verifies the problem as an ‘expert’ or through an expert, helps in problemsolving by giving his/her ideas and opinions. His/her involvement is temporaryand confined to specific problem solving, relationship with client short-term andproblem focused.

In ‘Process oriented’ consultation, the Consultant is a Process facilitator not asolution (context / content) provider. He helps problem identification andverification by sensing and facilitating expression of feelings and attitudes, helpsin problem solving not by providing (solutions / contents) but by enhancingproblem identification and solving capability. The involvement, in ProcessConsultation, is with people and groups in the organization, relationship ispersonal, involved, process oriented and of long term perspective.

The Consultant’s role will merge with the role of ‘Change agent’ ultimately.

Trainer

A Change agent needs to be a trainer and educator. He has to educate peopleon the need and importance of change using a variety of methodologies —lectures, presentations, films, group discussions, role-plays and instruments, casesand experiential learning etc.

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The trainer role is most widely and intensively used at all stages of a changeproject : unfreezing, changing (intervening) and refreezing.

Training is required for enhancing knowledge, skills and change in behaviour ,attitudes and beliefs. Training is used both in ‘content orientation’ and ‘processorientation’.

The Change agent, many times has to provide instruction, information on otherkinds focused learning opportunities for the client. In many helping situations,particularly when the client is expected to acquire competence in certain areas,the ability to train and educate is indispensable. A Change agent must be ableto assess training needs, write learning objectives, design learning experiencesand educational activities and use a variety of training / learning techniques fortransfer of learning.

Researcher

A Change agent has to carry out some research activities for the purpose ofgenerating valid information prior to and during the change process. Datacollection, diagnosis, generation of new behavioural science knowledge, evolvingbest strategies for change by assessing alternatives and the important stages ina change project where the Change agent has to be a Researcher. Usefulhypothesis are to be formulated and tested. A Change agent also searches andstudies literature, new developments and experiences of past interventions.

Change agents also generate new, useful knowledge about the process ofchange, about specific change methods or techniques about specific changes ofa technical, structural, or process nature, or about the means of resolvingcertain problems.

Goodstein and Pfeiffer consider managing change as a problem solving activity,and enumerate five roles of a Change Agent :

– Catalyst;

– Process Helper - Facilitator;

– Solution provider;

– Resource Linker; and

– Stabiliser

Catalyst

‘Resistance’ is most common response to any change effort; therefore one ofthe tasks of the Change agent is to break the inertia by causing dissatisfactionwith the status quo. Change agents sense the hidden problems and getdissatisfied with the status quo; start challenging the usual status or way ofdoing things and, thus, gradually intensify the need for change. They usestatistics, facts, examples, projections, comparisons for drawing attention to theneed of change. By sensitising people, they make them move towardsystematic steps in the change process.

Process Helper

A process helper / Facilitator, is a person who is acceptable to members of thegroup, substantially neutral, with no decision-making authority, intervenes to helpthe group improve the way it defines and solves the problems and makedecisions in order to increase the group effectiveness. To intervene means —to enter within an ongoing system for the purpose of helping those in thesystem (Argryris). Their main task is to help the group increase itseffectiveness by improving the process. ‘Process Consultation’ is based on this

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role. ‘Process’ in simple words means how group works together and includeshow members talk to each other, how they identify and solve problems, howthey make decisions, how they handle conflicts etc.

‘Content’ refers to what a group is working on e.g. finding ways and means ofproviding the desired service to customers. Content is the subject matter oractivities / efforts made for completion of a task. The status of a situation,group or problem has to be observed both in terms of ‘content’ as well as‘process’. For an in-depth understanding, an article titled “What to observe in agroup” by Edgar Schein in ‘NTL Reading book of Human Relations Training’(1982) may be referred.

A Process helper / Facilitator can help the group in all the stages of Changemanagement i.e.

– Recognising and defining needs (for change)

– Analysing problems and getting change — goals.

– Augmenting required resources

– Generating alternative solutions

– Evaluating alternatives and selecting the appropriate solution

– Installing the solutions

– Carrying out evaluations to ensure that the desired changes are helping.

Problem solving skills and Process Facilitation skills are highly used in this role.

Solution Provider

In many situations, the expectation of the group facing a problem is to get anappropriate solution. The Change agent, in such situations, by way of his beingan expert (technical / functional) provides appropriate solution. But this is notenough; he has to understand the explicit and implicit need of the people(users) and have to convince them about the solution, how it will satisfy theirneeds. The Change agent has to motivate them for adopting the solution. Ifneeded, the Solution provider will make them learns how to use the newsolution and make it really effective. In most of the organizations, this is themain expectation from a Change agent.

Resource Linker

In this role, a Change agent brings out people together, helps the organization todiscover and make optimum use of the resources — inside and outside theorganization. The resources may be money, specialized knowledge and/or skills,tools, techniques, ideas, experiences etc.

Stabiliser

Although the change process is initiated by creating a disturbance in theequilibrium, after successful change process the equilibrium has to be regainedonce again — the newly learnt mechanisms and behaviours have to getstabilized and become normal. A dynamic interplay between ‘change’ and‘stability’ is required continually in any organization. The successive changeefforts, it is the experience, should be initiated only when the previous changeshave stabilized. This does not happen on its own, the Change agents have tomake this happen again by using their process and other skills.

All these roles are overlapping as mentioned earlier, the role of ‘Consultant’ isall inclusive and that is why many persons use ‘Consultants’ and ‘Changeagents’ as synonyms.

Each of the roles may have many sub roles; the role of Consultant has been of



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maximum interest. There are a variety of models but two models appear to bequite necessary for a better understanding. In a change project, the clients andConsultants (Change agents) have different influence and involvement. Thisdifference in the degree of involvement and influence of activity gives rise todifferent types of consultancy styles or models.

One model is based on the involvement / influence of the consultant vs.Influence / involvement of the client in the change project.

The different styles or models may be enumerated here by broadly dividing theinfluence / involvement in ‘low’ and ‘high’ degrees :

i) Low Influence / Involvement of Client and Low Influence /Involvement of Change Agent:

This model is known as the ‘Marking Time Model’ or “Survival Model”.The change process is a formality without much seriousness.

This model is based on low mutual influence between client and Changeagent. When a Change agent is imposed on a disinterested client, therelationship becomes that of co-existence and there is no mutuality ormeaningful inter action. The Change agent is seen as an intruder markingtime with the client system and no real change may be expected.

ii) Low Influence / Involvement of Client and High Influence/Involvement of Change agent:

This gives a ‘Clinical model’ — like a Doctor diagnosing and treating apatient.

The relationship is determined by the quality of professional expertise of theChange agent, the diagnosis and the diagnostic ability of the Change agentis a distinguished characteristic in this model. The client provides dataresponds to questions and helps the Change agent to find the way for him.The consultant diagnoses and articulates the problem, structures the situationand suggests way for solving the problem. The ‘expert power’ of theChange agent generates commitment for change in the client. Consultant ismore like a Guru.

iii) High Influence / Involvement of Client and Low Influence /Involvement of Change Agent:

The resulting model is called ‘Engineering Model’. The Change agent givesideas and broad direction when needed and the Clients on their own workfor the solution.

In this model the client determines the freedom to be given the consultantaccepts the assignment as given to him .He carries out the study, collects,analyse the data and presents a report generally comprising facts, analysisand recommendations. It is up to the client to implement therecommendations. The main assumption behind this model is that the clientneeds information and analysis and the job of the Change agent is tosatisfy it.

iv) High Influence and Involvement of the Client & High Influence /Involvement of the Change Agent:

The model is collaborative model popularly known as ‘Process Consultancy’.

In this model, relationship between the Change agent and the client is based onmutuality; there is a mutual influence and joint identification of goals. Consultingis seen as a learning experience for both. Problem solving is conducted in aspirit of enquiry where either party can terminate voluntary relationship. Thismodel encourages open exploration, which facilitates generation of valid datanot possible in other models. The interventions are to help the client, perceive,

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understand and act upon events, which occur within the organization or in itsinter-phase. The main assumption is that collaboration between client andconsultant economises the time, speeds up diagnosis and commitment to actionhelps the client to learn how to recognise the problem when they re-appear,contributes to the transfer of consulting skill to the client and knowledge oforganization to the consultant.

The second model (Lippit and Lippit, 1980) also presents a variety of rolesdepending upon the level of consultant and client activity in problem solving.The model starts as a continuum, starting from the least level of consultantactivity (corresponding to the highest level of client activity) to the highest levelof consultant activity (corresponding to the minimum level of client activity).The roles on the continuum are given in Figure 1.

High LowClient Consultantactivity activity

Objective observer

Process Counselor

Fact Finder

Identifier of alternatives / Linker to Researcher

Joint Problem Solver

Trainer / Educator

Information Specialist

Advocate

Low HighClient Consultantactivity activity

Figure 1: Roles of consultant and client

15.3 COMPETENCIES OF CHANGE AGENTS

Competency is an underlying characteristic of a person that results in effectiveand/or superior performance (Boyatzis, 1982).

After going through various roles of Change agents, it would have becomeclear that they have to be master of many competencies. It needs to clarifyhere that it is not possible for a particular Change agent to be the master of allskills / competencies, that is why, Change agents also engage other Changeagents / Consultants. It is very difficult to make an exclusive list of Changeagent competencies — the roles themselves indicate many of them. Thecompetencies include knowledge, skills, attitudes, traits, value, motives and it isdifficult to draw a line between theses. A skill is used for applications orworking for performing a task / satisfying a role, which is a result of a numberof visible and invisible competencies. In general, competencies for Changeagents may be broadly classified into :

– Cognitive Competencies;

– Functional / Technical Competencies;

– Personal (Effectiveness) Competencies(Self-control, attitudes, traits, values etc.); and

– Inter-personal Competencies.



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In addition, ‘Consulting’ / Problem solving competency comprising of all theabove mentioned competencies is also essential for Change agents. Each ofthese competencies have been briefly explained in the following paragraphs.

15.3.1 Cognitive Competencies

Cognitive competencies are required for perceiving and thinking and are again acombination of a number of competencies. For simple explanation, these can bedivided in two types of thinking :

Analytical thinking; and

Conceptual thinking.

Analytical Thinking enables a person to understand a situation by breaking itapart into smaller pieces, or tracing the implications of a situation in a step-by-step causal way. It also involves organising the parts of a problem or situationin a systematic way, making systematic comparisons of different aspects orfeatures, setting priorities on a rational basis, identifying time sequences, causalrelationships or ‘If .......... then ...........’ relationships.

According to Spencer and Spencer (1993), the main underlying dimension ofAnalytical thinking is ‘complexity’: the number of causes, reasons,consequences or action steps included in the analysis ranging from a ‘simple listmaking’ to a ‘complex multi layered analysis’. The second dimension is‘breadth’ or the size of problem analysis. This may range from the lowest level-- ‘concerns one or two people’s performances’ to the highest level - ‘concernslong term performance’ — relating to a major division or entered in a complexenvironment (economic / demographic changes and major improvements).Common behavioral indicators of ‘Analytical thinking’ dimension in a personare:

Setting priorities (for tasks) in order of importance.

Breaking down systematically a complex problem / task into manageableparts.

Identifying / recognising likely causes of events or different consequencesof actions.

Anticipating obstacles and thinking ahead about future / next steps

Using a mix of analytical techniques to identify several solutions and weighsthe value of each.

Conceptual Thinking involves understanding a situation or problem by puttingthe pieces together and seeing the large picture. It includes identifying patternsor connections between situations that are not obviously related and identifyingkey or underlying issues in a complex situation. Conceptual thinking usescreative, conceptual or inductive reasoning for applying the existing concepts ofdefining novel concepts.

According to Spencer and Spencer (1993), there are two main dimensions ofConceptual thinking :

i) The complexity of thought processes and their originality — ranging from‘using basic thumb rules’ to ‘creating new theories explaining complexsituations’.

ii) The breadth or the size of the problem analysed.

A few behavioural indicators of conceptual thinking are :

Using ‘thumb rule’, common sense and / or past experiences to identifyproblems and situations.

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Comparing the crucial differences between the existing situation andprevious happenings.

Applying and modifying complex concepts, which have been learned, andmethods in appropriate manner.

Identifying useful relationships among complex data from unrelated areas.

By the above mentioned narration, the importance of cognitive competenciesmight have been clear to a great extent.

15.3.2 Functional/Technical Competencies

These are the skills required to perform effectively in a particular discipline,functional or technical area such as — Heat Treatment, Corrosion, Investmentanalysis, Designing a wage and salary administration system, OrganizationDevelopment, Structural Design etc.

The Change agent, who is working for identifying or resolving problems, musthave the necessary knowledge particularly as Problem identifier or/and Solutionprovider. Technical / professional competencies include mastery on a body orfield of Job related Knowledge and skills and also the motivation to enhance,use and disseminate work-related knowledge/skills to others. According toSpencer and Spencer, there are four main dimensions to Functional / Technical/Professional competencies:

i) Depth of Knowledge and Skills : This is described in terms of formaleducational qualifications, training , expertise gained through informal studyor working experience.

ii) Breadth of Knowledge and Skills : It is the managerial and organizationalexpertise necessary to manage, coordinate or integrate diverse people,organizational functions and units for achieving common objectives.

iii) Expertise Acquisition Motive : The efforts to maintain and acquireexpertise ranging from simple maintenance to extensive efforts to attainmastery in new areas.

iv) Distribution / Dissemination of Expertise : This ranges from ‘no specialknowledge’ to ‘share the knowledge/skill to the highest level’ or ‘publishingnew technologies or new methods in professional/ technical journals’. A fewbehavioural indicators are :

Striving to keep abreast with emerging knowledge and skills.

Exhibiting curiosity by exploring beyond one’s immediate fields.

Readiness for helping others in resolving their problems.

Interest for studying new subjects

Volunteering to go out to share the expertise for disseminating new leanings.

Change agents / Consultants are engaged for solving problems, and all problemsapparently will emerge in one or more of functions/departments/ processes ofthe organizations. Functional / technical knowledge provides a perspective toperceive in a holistic manner and also quite essential for interacting with andconvincing the client. It adds to the confidence and credibility of the Changeagent. The author, as an interval consultant was processing the manpowerproposal of a large Engg company. While discussions one of the line managerswas insisting for additional Manpower for the newly installed 8000 Tonnespress. Knowing the designation of Dy Manager (Personnel), he thought him tobe a non-technical person and asserted quite arrogantly that only an Engineerwould understand the issue. The author challenged him to come to the pressand told that being an Industrial Engineer (and Metallurgical also), he hadassessed manpower for a similar press 10 years ago in my previous



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organization, hearing this, the manager became embarrassed and agreed what Iwas telling.

15.3.3 Personal (Effectiveness) / Self Management Competencies

These competencies help a person to be effective in achieving his goals,actions even amidst environmental difficulties and pressures. For effectivenessof Change agents / Consultants, the following personal / self management skillsare quite essential.

Self Control

It is the ability to keep emotions under control and retain / enhance one’seffectiveness even when faced with hostility and severe stress. Thiscompetency is described by the intensity, and resulting scope of the controlexerted by a person on him/herself indicating a wide range of controls rangingfrom the individuals’ minimal control of self by avoiding negative actions —controlling self in order to improve the situation to controlling or calming othersas well as one’s own reactions.

A few behavioural indicators are :

– not being impulsive;

– resisting one self from aggressive involvement;

– remaining calm even in hostile and stressful situations;

– exploring and using functional way of restraining stress; and

– responding to problems constructively even in hostility/and stressful situations.

Self Confidence

It is an individual’s belief in one’s own capability to accomplish a task. It alsoincludes the individual’s expression of confidence in highly challenging situations,in making decisions, forming opinions and handling failures constructively. Apositive self-concept perpetuates self-confidence.

Two main dimensions of Self-confidence have been enumerated as :

i) Intensity indicating how much challenge or risk the individual has confidenceto face — ranging from ‘simple independent functioning in a normal worksituation’ to ‘taking on extremely risky tasks’ or ‘challenging the boss orclients’; and

ii) Dealing with failure — ranging from ‘blaming others for failure’ to‘admitting own mistakes to others’ and ‘acting to correct problems’.

A few behaviours have been observed as :

– Making decisions / acting in spite of disagreements from others;

– Presenting oneself assertively;

– Making statements telling confidence in one’s own abilities and judgment;

– Stating one’s own positions explicitly and confidently even while inconflict with superiors;

– Taking or accepting/personal responsibility in case of failures, mistakes orslippages;

– Using mistakes as learning opportunities; and

– Analysing one’s own performance for knowing the causes of failure andwork for improvements.

A Consultant, very often has to face hostile clients or their employees, andvery uncertain and new problems, which he would not have handled earlier,

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Self confidence helps in retaining ones poise and facing the situationoptimistically and permeating confidence in others.

Flexibility

Ability to adapt to and work effectively in a variety of situations with differentindividuals or groups. Understanding and appreciating opposing and alternativeperspectives on an issue, trying to adapt to an approach in changing situationsand readiness to change or accept changes in one’s own work or organization —are crucial for flexibility. Flexibility may be assessed on two dimensions(i) Breadth of change — ranging from own opinions to adapting organizationalstrategy; and (ii) Speed of action ranging from slow to instantaneous.

A few indicators are :

– recognising the meaning in opposing view points;

– adopting easily to changes at work;

– flexibility in applying rules / procedures depending on the situations and thesuper ordinate goal; and

– changing one’s own behaviours to suit the situation.

Organizational Commitment

The individual’s ability and willingness to align one’s own behaviour with theorganizational needs, priorities and goals indicate organizational commitment.

According to Spencer and Spencer, it may be assessed on the dimension‘intensity of commitment’ indicated by the amount of sacrifices made for theorganization’s benefits.’

A few behaviours indicating organizational commitment are :

– Willingness to help colleagues to complete their tasks.

– Aligning one’s own activities, priorities, goals to meet organizational needs.

– Demonstrating cooperation to achieve larger organizational objectives.

– Meeting organizational needs rather than one’s own professional needs.

If the clients sense organizational commitment in Change agents, their credibilityshoots up and much of the resistance starts giving way.

Initiative

Initiative indicates a preference for taking action; doing more than is required orexpected in the job, doing things that no one has ordered or requested.Improving or enhancing the results and avoiding problems or finding or creatingnew opportunities on one’s own without anybody’s orders or instructions areindicative of initiative.

According to Spencer and Spencer, there are two main dimensions forunderstanding and assessing initiative (i) time dimension — ranging fromcompleting decisions made in the past to acting now on problems oropportunities that will be realized only in distant future; and (ii) Discretionaryefforts like self motivation or the extra or unrequited effort put forth tocomplete a task or goal.

Initiative is visible when a person refuses to give up after facing obstacles,recognises and seizes opportunities of improvement, performs far more than thejob requirement and anticipates and makes efforts for seizing an opportunitywhich is not visible to others.



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A few other Personal competencies may be enumerated as :

communication — written / oral presentation;

assertiveness;

visioning;

thoroughness; and

persuasion

15.3.4 Inter-Personal Competencies

These competencies are essential for dealing with other people effectively.Inter-personal competencies are a bunch of different skills largely overlappingwith each other. It is very difficult to clearly enumerate all such slots.However, some of the inter-personal skills may be enumerated as :

Inter-personal relations;

Helping a person; and

Developing and maintaining smooth, co-operative working relationshipswith colleagues, superiors, customers, clients etc.

In their behaviour, persons having such competencies show awareness of andconsideration for the opinions and feelings of others. Such skills put people atease. These skills can be interpreted, understood and assessed at differentlevels.

Some of the characteristics behaviours used for assessing the IPRcompetencies are :

Maintaining composure in interacting even under stress;

Demonstrating good judgement, poise and maturity in interactions withemployees and customers;

Interpersonal style serving to enhance rather than undermine relationshipswith others;

Treating others with respect and dignity;

Exhibiting empathy seeing things accurately from the emotional perspectiveof others, and caring about their well being;

Understanding own feelings and expressing them functionally;

Showing genuine respect for the wishes, preferences and confidentiality ofclients, and advocating for them when appropriate;

Managing conflicts constructively by searching for areas of commonagreement;

Recognising and acknowledges the feelings of others, and demonstratesrespect;

Showing empathy, sees things accurately from the emotional perspective ofothers, and cares about their well being;

Using formal networks to accomplish tasks;

Manages conflicts, dealing with others appropriately in difficult situations;

Respecting confidentiality and exercising discretion when sharinginformation;

Developing and leveraging a network of relationships / contacts with peopleand institutions capable of impacting business performance;

Using social events to improve and strengthen professional relationships;

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Using the network to identify opportunities, gather market intelligence andseek input into problem with a view to increasing the work effectiveness;

Participating actively in relevant business fora and taking steps to bestrepresent the organization positively;

Working effectively with relevant stakeholders to expand common groundand maximize buy-in into organizational priorities;

Understands unique desires and preferences of significant others / externalbodies and uses personal touch to strengthen key business relationships.

IPR competencies, as mentioned earlier are a cluster of different skills /competencies. A few important ones are briefly explained below.

Communication

There are three purposes of communication :

i) Ensuring that the message conveyed has been fully understood;

ii) Ensuring that the conveyed message has been accepted by the receiver;and

iii) Ensuring that the receiver of the message has got motivated to act fordoing what he has accepted to do.

Communication includes grasping, processing and articulating thoughts and ideasto convey and use information in a meaningful manner. These skills also can beunderstood and interpreted at different levels. A few of the importantcommunication skills are :

— Speaking;

— Writing;

— Asserting;

— Listening;

— Questioning;

— Paraphrasing;

— Giving feedback;

— Receiving feedback; and

— Empathising.

Inter-Personal Understanding

For having effective inter-personal relations, a desire and capability tounderstand other person is essential. The ability to listen accurately andunderstand is not only for the spoken words but also for unspoken or partlyexpressed thoughts, feelings and concerns of others. Inter-personalunderstanding is often expressed by understanding the moods and feelings ofothers, developing an understanding based on listening and observation to predictand prepare one self for others response. The IPU includes (i) Understandingthe interests, attitudes, needs and perspectives of other people and(ii) Understanding the cause of others behaviour or patterns of behaviour,attitudes etc.

There are two key dimensions for assessing the inter-personal understanding(Spencer & Spencer, 1993):

a) Depth or complexity of understanding others ranging from — understandingmeanings of the statements and actions / feelings of the communication tounderstanding complex hidden reasons of the behaviours; and



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b) Listening and responding to others. This also has a very wide range ofbehaviours beginning from simple listing to going out of the way to helppeople with personal or inter personal problems.

Help / Service Orientation

These competencies are oriented towards a desire to help or serve others tomeet their needs. By these skills, a person is able to focus his / her efforts ondiscovering, understanding and meeting the other person’s customers’ or clients’needs.

Some of the indicative behaviours of this skill are :

a) Seeking information for understanding the explicit or underlying needs ofother persons beyond those expressed superficially by the person.

b) Taking personal responsibility for solving others problems promptly andundefensively.

This competency also can be deeply analysed and assesses on two dimensions-(i) focus on others’/clients’ needs behaviours ranging from expressing negativeexpectation of clients to acting as a trusted advisor or advocate of the clientsand (ii) taking initiative to help others / clients; behaviours ranging fromblocking others actions to taking extraordinary efforts.

Influence and Impact

These skills help in expressing an intention to persuade, convince influence orimpress others in order to get what one wants to get from them or gettingthem support one‘s agenda or the desire to have a specific effect on others.A few of commonly observed indicators are :

Anticipating the effect of action on others.

Making efforts to give reason, data, facts and figures for convincing others.

Using examples, experience, demonstrations, audio-visual aids for betterunderstanding.

Building behind the scenes support for the ideas.

Using strategy in giving or withholding information for having the desired effect.

Using group process skills for leading or directing the group.

This competency may also be assessed on two dimensions : (i) number(frequency) and complexity of the actions taken to influence others; (ii) breadthof the impact starting from one person to the whole organization and evenoutside organizations.

Understanding and Using Power Dynamics

For developing effective inter-personal relationships, the understanding of theprevailing power relationships in the organization or between people is essential.It means the ability to identify who are the key decision makers and centers ofinfluence. Also predicting who will be able to influence the situation better andhow.

The capabilities range from an awareness and impact within the individuals ownsection / department to that on outside organization, customers, clients, suppliers,government etc.

Common behaviours indicating the competency may be described along a scalefor the lowest to the highest levels :

Misunderstanding organizational hierarchy/ structure.

Concerned only with one’s own work, and ignores others signals or needs.

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Understanding formal structure.

Understanding informal structure.

Understanding organizational policies.

Understanding organizational issues.

Understanding longer underlying issues.

The breadth of understanding ranges from one or two parts to the internationalorganizations as enumerated in the previous competencies.

Relationship Building

With the help of this competency, a person is able to build and maintainfriendly, warm and trusting relationship with people and need work within andoutside one’s organization for achieving work related goals. Some of thebehaviours indicating this competency are :

Regularly and consciously working for building rapport and extending oneself to build rapport with others.

Establishing rapport with others easily.

Sharing personal information to others for creating a common ground forwidening the arena.

Establishing friendly relationships with many people who may be useful infuture.

This competency has two main dimensions :

i) Closeness of relationships; and

ii) Spread or the extent of relationships / network.

Closeness of relationships building have a number of behavioural characteristicsand levels :

Avoiding contact with others

Accepting invitations

Making formal contacts for expediting tasks or work activity

Making informal contacts occasional

Building rapport

Making social contacts

Making firmly level

Making close personal friendships.

The spread of relationships also has different levels :

One or two persons

Work Team / group

Department

Division

Entire organization

Other organizations in similar to other business

Political / Governmental, organizations.

Relationship building is one of the most valuable skills as much of theformalities in selection and identification of Change agents are eliminated due toa feeling of trust and mutuality. The diagnosis also becomes easy and perfectdue to openness.



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Negotiation

This competency also is referred as a cluster of traits and competencies andenables an individual or groups with differing / opposing wishes or views toreach a mutually satisfactory agreement. This skill can be observed in wide-ranging behaviours as indicated below :

Being aware of the importance of negotiation and understanding theprinciples behind it.

Realising that winning at all costs is not important and a win-win solution ismost effective in the long run.

Arguing persuasively for getting what one should get.

Preparing well for every negotiation .

Researching the interests of the other side and uses own understanding tomake position stronger.

Finding ways of gaining commercial intelligence in respect of leadingcompetitors, and getting complete relevant information both about theorganization and the individual that he will be negotiating with.

Using different approaches and styles (i.e. avoidance, forcing, accommodating,collaborating and compromising) - to achieve the desired objectives.

Demonstrating the need to plan for all major areas of the deal in the preparationphase, so that it is possible and plan the use of possible concessions.

Using existing or new documentation to accompany the negotiations, andusing an agenda as a positive aid to negotiations.

Gathering as much information as possible during the negotiation processand tries to assess the other sides negotiating style and level of conviction.

Using informal and formal networks to accomplish tasks or objectives.

Understanding what is meant by carefully analysing what is said, and theimportance of identifying the other side‘s non-negotiable items.

Communicating the potential loss to both parties due to failure of negotiationprocess and ensures that the discussion does not end in a deadlock.

Creating a win-win situation and influencing others to make sincere effortsfor this.

15.3.5 Consulting Competency

Although Change agents are also considered to be Consultants, however, in thissection, this is being taken as a specific competency of Change agents. Theseare needed to complete the various phases of a change project and adaptingthe consulting role as needed for a variety of situations.

General Skills

These skills are necessary for selecting and expediting different roles as aconsultant. These include :

– Self awareness about critical traits / competencies possessed,

– Understanding one’s own motivations in assessing need for change and thedrive to bring out the change.

– Understanding philosophy and ethics and process of change.

– Anticipating and predicting the relation of one possible change to otherpossible changes.

– Understanding the desired (coverage, character, structure of changes /group of changes.

– Determining the barriers, resistance and readiness to change.

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Determining the resources a valuable for change.

Ability to determine his own role in changing situations.

Understanding group processes.

Distinguishing work and personal issues.

Active Listening

Handling Emotions, Emotional Intelligence

Conflict Resolution

Building a conducive climate — trust and openness.

Contracting Skills

It is the skill needed for building a verbal agreement with a client and includes :

Communicating the understanding of problem — what problem has beenperceived by the consultant.

Clarifying the client’s needs

Expressing one’s own needs

Documenting main decisions and commitments

Obtaining clear agreement on the tasks (problems), scope, objectives, timeframe and financial implications

A few other contracting skills may be enumerated as :

Promising only what can be delivered.

Saying ‘no’ without guilt and fear.

Setting realistic goals for self and client

Working comfortably with authority figures.

Letting some one else take the glory.

Working with people one does not like

Assessing personal needs that affect acceptance of the contractor.

Sensing and Diagnosing Skills

These skills may be split up into :

Helping the client to discover and clearly understand the problem.

Questioning — putting appropriate questions for explicit understanding.

Helping in finding answers to questions.

Inspiring trust of the client in the abilities of consultant

Helping client generate solutions

Skills to diagnose problems

Determining the methods, which the clients believe, should be used for thechange.

Creating awareness of the need for diagnosis and change in clients.

Creating a perception of the potentialities for change expectations.

Understand the values and cultures of the organization.

Assessing readiness for change.

Obtaining multiple perspectives on the problem / situation.

Ability to gather and summarize huge volumes of complex data and toinvolve the client in understanding and interpretation.



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Problem Solving and Decision-Making Skills

Involving others in problem solving and goal setting.

Understanding the business environment and operative and the effect ofproblems thereon.

Stating the problems and objectives explicitly.

Setting one’s ideas effectively.

Enclosing clients to generate alternative solutions — summing discussions.

Evaluating alternatives — considering effects of various alternatives on thederived outcome and effect on other organizational components.

Making sound timely decisions using appropriate styles — even amidstuncertainty and risk.

Challenging ineffective solutions

Seeking help from others

Using a variety of techniques for creative problem solving.

Implementing Skills

These skills are essential for successfully carrying out a project of plannedchange.

Conceptualisation and articulation of the activities required for implementingthe plan.

Defining objectives in such a way that it needs to easy definition ofmethods.

Attending to details

Taking responsibility

Helping clients use their strengths and resources optimally.

Changing plans in case of emergency

Controlling one’s anxiety while performing

Intervening at appropriate time

Admitting mistakes and working for rectification

Building and maintaining morale and motivation of clients and users andproject team.

Prioritisation of activities / use of resources.

Time management

Project management

Team working / Team building

Understanding the impact of change activities

Deciding upon the amount of action to be made before making anassessment of the progress.

Evaluating Skills

For determining the success or failure of a change initiative / project, evaluatingskills are necessary.

Diagnosis of cases when group action becomes inefficient using differenttechniques — instrument, interiors, focus groups etc.

Assessing one’s own contributions.

Project Evaluation.

Soliciting formal / informal feedback from appropriate persons.

Measure the success / status in comparison to the stated objectives.

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Evaluate content (what was done) and process (how the work was done).

Acknowledging / accepting failures in a decent manner.

Feeling comfortable in receiving the feedback / evaluation of the client.

Ability to deal with unprecedented changes.

Devising / using evaluation tools.

Use of score cards, rating scales and other means.

Rapport preparation.

Leave the project gracefully after the task is finished.

Attributing reasons of failures.

Motivating the client / Team for rectifications / improvements.

Maintenance Skills

Creating a sense of responsibility, passion for the new system, proceduresetc., after change.

Motivating for active participation.

A sense of collective responsibility for ensuring continuity and spread of thechange initiative.

Developing a strong support for the change initiatives.

Acknowledgements, recognition, rewards, reinforcements.

Menzel has interacted with a large number of consultants and Change agentsand has summarised the following list of Change agent skills.

Educating

Researcher

Writer

Designer

Teacher

Instructor

Trainer

Advocate

Conference Leader

Life / Career Planner

Diagnosing

Action Researcher

Diagnoser

Survey Designer

Data Analyst

Evaluator

Consulting

Role Model

Relater

Expert in Processes

Confronter

System Analyst



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Inventor

Designer / Planner

Adaptor

Linking

Resource Linker

Internal Linker

External Linker

Theorist - Experts for action research

Referrer

15.4 SUMMARY

This section provides a good exposure to the roles of Change agents andvarious competencies. Most of the competencies are not very unique to theChange agents, rather they are required for any manager because today themanagers are expected to be Change agents. Many organizations have madeplanned efforts for developing internal Change agents, Bharat Heavy ElectricalsLtd. is one of them who have as, a part of their OD efforts succeeded indeveloping a few Change agents of national and international repute. TheseChange agents have not confined themselves to only specific OD activities,rather they have contributed in identification of change opportunities andfacilitation in many organizational, technical, functional and personal andinterpersonal areas. They are also contributing in HRD policy formulation,introduction of new mechanisms and of course, as valuable trainers. There aremutual benefits and limitations of internal and external Change agents, but theroles and competencies are mostly identical. The internal Change agents haveto face additional problems for getting recognition and working within thehierarchy of power sector of the organization making their task more difficult.

In order to get an outline of a real life change initiative highlighting the changeprocess as well as various role Change agents are to play, paper entitled“Designing and Implementing Performance Management system : The BHELExperience” is enclosed in the Appendix 1.


1) Write an essay on role of change agent citing suitable examples.

2) What are the skills required for becoming a successful cahnge agent.


The author gratefully acknowledge the following authors and sources :

Spencer, Lyle M.Jr., Spencer Signe M, Competence at Work, John Wiley &Son, Inc. (1993).

Sarathi, Parth, Planning, Auditing and Developing Human Resource,Manak Book, New Delhi.

Sinha, Dharni, P, Consultants and Consulting Styles (Unpublished paper),COSMODE, Hyderabad.

Robbhins Stephen P, Organizational Behaviour, Prentice Hall of India, NewDelhi.

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Shein, E, H, Process Consultation: Its Role in Organization Development,Addison Wesley.

Schein, E, H, ‘What to observe in a group’ (paper) in NTL Reading book ofHuman Relations Training, NTL, Bethel.

Lippit, G, Lippit R, The Consulting Process in Action, University Associates,Dan Diago.

Boyatzis, R.E, ‘Competence at Work’, in Motivation and Society, Jossey-Bass,San Francisco.

Rees, Fran, ‘Consultant Effectiveness Pyramid,’ in The 1998 Annual: Volume1, Training, Jossey-Bass.

Garavaglia, Paul L, ‘Change Agent Gap Analysis’ in The 2000 Annual, Vol. 1,Training; Jossey Bass.

Saskein, Marshall, ‘Models and Roles of Change Agents’ in The 1974, AnnualHandbook for Group Facilitators, University Associates, San Diego.

Block, Peter, Flawless Consulting, Pfeiffer & Company, San Francisco.

Sarathi, Parth ‘Designing and Implementing Performance Management Systems- The BHEL experience’ (unpublished paper).

Timothy, M. Nolan, ‘Consulting - Style Inventory : A Tool for Consultants andothers in Helping Roles’, in The 1003 Annual: Developing HumanResources, Pfeiffer & Company.

Newstrom, J.W, Davis, Keith, Organisational Behaviour

- Human Behaviour at Work, Tata McGraw Hill - publication.

Chartier, M.R. ‘Functional roles for facilitating organizational change,’ The 1985annual : Developing Human Resources’, Pfeiffer & Company, San Diego.

Sarathi, Parth. ‘Preparing Job description’ in Annual Handbook of HumanResource Initiatives 2003, Initiatives and Interventions, Manak (Pub), NewDelhi.



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Appendix I

DESIGNING AND IMPLEMENTING PERFORMANCEMANAGEMENT SYSTEM : THE BHEL EXPERIENCE

1.0 BACKGROUND

BHEL is the largest Engineering Company of India having over 47000employees in 14 manufacturing and a dozen services divisions catering to theneeds of Power, Industry, Defense and Transportation sectors. It is one of theleading Navaratna PSUs of Govt. of India and has been giving profitscontinuously since over 30 years. In 2001-2002, the company registered a netprofit of Rs 4679 Million ( equivalent to 98 Million US $s) on a Turnover of Rs72866 Million(equivalent to 1518 Million US$s). BHEL to day has its exportpresence in over 50 countries.

BHEL was the first organization to start Corporate Planning in a systematicmanner in 1973 and has been pioneer in formulation and implementation ofHRM / HRD policies. Developing Human Resource has been the key concernright since inception. Performance Appraisal System has been in use for allcategories of employees. For Corporate Cadre executives (E5 to E7 level i.e.for Sr. Managers, DGMs, Sr. DGMs and AGMs), there was a uniformPerformance Appraisal System throughout the Company, managed centrally byCorporate

Personnel. For General Managers, EDs and Board Members, Appraisal Systemissued for Govt. of India was in vogue. The author has played a key role indeveloping new Appraisal systems for Board level positions in Navaratna PSUswhich have already been implemented since 2000. For Executive levels (E1-E4)also, the Appraisal systems in most of the units / divisions was uniform. A newcomprehensive Performance Management System has been developed andimplemented for all levels of executives w.e.f. 2000-2001. This paper discussessome of the experiences of designing and implementing this System.

2.0 MAJOR AREAS OF SATISFACTION AND DISSATISFACTION WITH THE PREVIOUS SYSTEM

The previous system continued for many years in spite of a mixed feeling ofsatisfaction and dissatisfaction. The salient features of the positive and negativeaspects of the previous System (Performance Appraisal System) areenumerated below :

2.1 Satisfaction, Positive Aspects

Very simple, takes very less time to fill up.

Non-threatening to both Appraiser and Appraisee.

Able to fulfil the administrative requirements.

Does not lead to confrontation between Appraiser and Appraisee.

Could sustain for a long time.

Personnel Deptt. was the sole custodian of formats.

Able to maintain a high degree of confidentiality about appraisal ratings.

Provides opportunity to Appraisee to indicate his achievements and Trainingneeds, help required.

2.2 Dissatisfaction, Negative Aspects

A Performance appraisal system only.

A passive system having no involvement of subordinates.

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No feedback either on performance or on training needs, helps solicited etc.

Performance goals, parameters, expectations never clarified to Appraisee.

Absence of performance standards.

No dimensions / parameters for assessing performance.

Appraisal of attributes / behaviours - main basis of appraisal.

No feedback, counseling, coaching or improvement efforts.

Appraisal ratings / outcomes not known to Appraisee.

High degree of perceived subjectivity and bias.

No linkage between Performance and Rewards.

No appraisal of potential.

Since only five grades of evaluation, many persons fall in the same grade -difficult to distinguish between them.

3.0 STIMULATING THE NEED FOR A NEW SYSTEM

3.1 Initial Efforts

The initial efforts for stimulating the need can be traced back to the year1986-87 when as a member of the Corporate Personnel, the author madeinitiatives to widen the HRD activities, which were at the time largely confinedto Training in most of the divisions and OD in a few. A one / two day trainingmodule on “Performance Feedback — a tool for HRD” was designed andconducted to encourage the involvement of Appraisee in Appraisal process andalso to make executives adopt Performance Feedback & Counseling forSubordinate Development. Six such Programmes / Workshops were held atCorporate Office and other divisions. This increased the awareness andmotivation for adoption of this intervention to a great extent. Since the ongoingAppraisal System did not have provision for this mechanism, it could not catchup.

A booklet titled ‘Performance Feedback - a Tool for HRD, was published in1988 and distributed to executives to adopt some of the practices ofPerformance Management. Another effort made after a few years could not gomuch ahead.

In various diagnostic exercises, Workshops, syndicate group discussions —dissatisfaction with Performance Appraisal System was often emerging sharplyand some of the HRD efforts also were constrained due to the existing system.

3.2 Training Programme on Performance Management

In 1996 at Human Resource Development Institute (BHEL), a six-day trainingprogramme on “Performance Management” was designed and conducted by theauthor with the hope of creating a critical mass that could stimulate the need invarious units. Personnel / HRD Heads from various divisions includingCorporate Office and some Line managers at senior levels were invited toparticipate in this programme. The expectations / requirements of a goodPerformance Management System could strongly emerge during the programmeand the limitation of existing system also surfaced. A number of structuredexperiences, instruments and cases were used in addition to experience sharingby a few other organizations.

As an outcome of the workshop, a strongly felt need of a comprehensivePerformance Management System emerged along with the main expectationsand motivation to influence others to contribute in evolving the PerformanceManagement System for BHEL.



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3.3 A Survey on Human Resource Practices in BHEL

Based on a survey in 1996-97, conducted by the author using a questionnairedeveloped by Dr. Udai Pareek and Dr. TV Rao, the average score for theIdeal Performance appraisal system was found to be 72.76% and that forExisting one was 37.6%, leaving a huge gap of 35.16%. Table enclosed atAnnexure I may be referred for further details.

This indicated dissatisfaction of respondents with the existing Appraisal systembut also indicated an excellent appreciation of the requirements of a goodappraisal system. The findings thus, served two valuable purposes :(i) convincing others about the need to revise the system and (ii) thehopefulness that people would be able to develop and appreciate a goodPerformance management system. On the basis of the findings, it also becameclear that mere new Performance appraisal system would not be adequate: acomprehensive Performance management system was the need of theOrganization. The Survey findings proved to be highly useful in future efforts.

3.4 One Day Training Module on Performance Management in all General Management Programmes

Encouraged by the responses of this programme, a one-day session onPerformance Management was introduced in all General ManagementProgrammes to be conducted by HRDI.

Normally, 10-12 such programmes were conducted every year for the BHELexecutives at the level of Senior Managers (E5) and above. After conducting afew programmes, a pattern emerged and this became attain our module.Highlights of the coverage are given below :

i) Where are You, Where do you want to go- defreezing. In order to stimulatethe need of Performance Management efforts, agreed indicating five stagesof organizational health developed by Robert Camp were projected andresponses of participants were asked indicating where did they find thecompany.

The grid was as follows :

World Class : A company recognized as the best in its area offunction, bench-marked by other organizations.

Best in Class : A company which usually exceeds customers’expectations, out performs all direct competition,provides a clear competitive edge.

Satisfactory : A company which meets all customer requirementsand internal requirements in respect of cost, margins,asset utilization and cycle time.

Unsatisfactory : A company which is a\not able to satisfy allcustomer requirements or internal requirements.

Unhealthy : An ineffective, inefficient Company which is at therisk of falling. Needs major redesign.

They were encouraged to share their perceptions and asked whether theorganization should remain at the same status for achieving BHEL Mission,Vision or something else should be done. Most of them got somewhatsensitised and expressed the need of concerted efforts to enhancingperformance of the organization. It would be further explained that the grid had

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been prepared consisting both efficiency and effectiveness aspects and furtherexplanation was given whenever required.

ii) Expectations from an Effective Performance Management System

Through brainstorming, the expectations from an effective PerformanceManagement System were collected. Some of the commonly statedexpectations are :

Beneficial to the appraisee, appraiser, company and customer

Objectivity in appraisal

Able to provide information on what is to be done, what is to beaccomplished?

Enable role and goal clarity

Provide clarity on standards of performance

Ensure adequate support to the performer

Able to make distinction between performance of employees

Provide opportunities for performance dialogue and periodic feedback

Able to motivate for achievement oriented target setting

Periodic monitoring and evaluation of Performance

Enable the Performer and his superior to know the extent to which thetasks / targets have been completed

Facilitate identification of Training and development needs

Able to improve performance in future

Creation and development of trust and openness between boss andsubordinate

Provide feed back to the Boss also

Active involvement of Boss and Subordinate at all stages

Provide rewards for superlative performance

Provide valuable inputs for Career and Succession planning.

Apart from building an inventory of expectations, it stimulated the groupprocess, enhanced participation and helped in creating a risk free environment.This also proved to be the foundation for identifying and designing thecomponents of the system and convincing the participants at later stages whenthey experienced discomfort or difficulty in carrying out certain activities.

iii) Clarifying the Understanding of ‘Performance Management’

It was also found essential to arrive at a common Understanding on term‘Performance’. Taking the help of available literature and our own perceptions,a definition was evolved after presentation of a number of definitions —“Performance is a definition of what is to be accomplished or carried out.” It isalso a process that leads to results. Performance Management, therefore, maybe conceived as a continuous process of working with people to accomplishdesired results. This process should aim at :

a) Establishing a shared understanding about what is to be achieved, how is tobe achieved and

b) Encourage involved persons to work in such a way that possibility ofachieving results is maximised.

Some research findings indicating requisites of getting good performance werealso discussed.



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The group by this time would become able to enumerate important componentsof a Performance Management System.

iv) Achievement Oriented Goal Setting

Experiential learning has been extensively used in this module and a few gamesand exercises commonly used in behavioural science have been used with awide perspective. For example, a ‘Ring Toss’ exercise was used for clarifyingsome of the basic assumptions of achievement orientation and goal setting atindividual level. The exercise of ‘Tower Building’ was also used some timesalong with ‘Ring Toss’ and sometimes independently for stimulatingachievement oriented target setting, understanding the process of joint decisionmaking (consensus) and activities to be undertaken by supervisor and boss forenabling the worker perform better. These exercises were also used forinternalizing achievement imageries given by McClelland and examining thestatus of one-self and providing insights. The ‘achievement syndrome’ modelwas used to independently emphasise the strong need, positive goal anticipation,strong positive feelings, urge to identify the blockages and minimizing orremoving the blockages by the self initiated efforts and help of others. Thisproved to be very relevant at the later stages of system implementation.

v) Power of Expectations

The concept of Pygmalion effect (Power expectations) was very helpful inmotivating the participants. On the basis of the experience gathered in theprevious exercises, the concept was very effectively driven in. It is expected tovitalize the process of goal setting and subordinate development.

vi) Giving and Receiving Feedback

The felt need of Feed back also emerged during the exercises.

This exercise along with the Job Diagnostic Survey (developed by Hackmanand Oldham) helped the participants to understand the role of ‘autonomy’ and‘feedback’ in enhancing the performance of subordinates. Also the need of jobrotation for optimizing ‘skill variety’, ‘task identity’ and ‘task significance’ wasalso demonstrated vividly through their own scores on the above mentionedsurvey. This exercise, in turn, crystallized thoughts regarding the role ofsuperiors in enabling the superlative performance of subordinates.

The three cases on Performance Counseling (Gupta…, Punjabi…, andWelsh…) developed by TV Rao also helped the participants to understandsome of the factors, which facilitated the effects of Performance Feedback andCounseling. The group work and presentation were highly effective andinternalizing some of the important requirements of Feedback and Counseling.

Input on ‘Giving and Receiving Feedback’ was given adding some otherfeatures on the basis of experiential learning.

vii) Inter-personal Factors Affecting Performance

In order to experience some of the very simple but fundamental factorsaffecting performance, an exercise was carried out in which 9 volunteers wereinvited and given separate head bands on which different types of designationsand messages were written in such a way that others could read it but not theperson concerned. They were given a small task of arriving at a consensusdecision on certain controversial issues with the instructions that they have tobehave with each other according to the other person‘s head band whileinteracting with each other. This exercise within a short time made very seriousimpact on the behaviour of the participants. For example, those who hadpositive headbands got energized and their performance went on increasingwhile others who had negative ones felt ignored in the discussions and their

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performance dropped drastically. By sharing their feelings and responses ofsome questions demonstrated that for positive performance, positive feed back,involvement and participation of the incumbent is essential. It also demonstratedthat if they were ignored, their performance fell down. This helped inhighlighting vulnerability of Appraisee / appraisers in real life work situation.Many got an insight that in order to remain effective, one has to develop theattitudes and competencies, which would help them, remain energetic andperforming even at adverse situations. The explanation of Self-concept provedvery effective.

viii) Developing an Outline of Good Performance Management System

On the basis of the entire days work, the sketch of a good performancemanagement system emerged every time along with the cautions which are tobe taken every time. In the one day module in the later programmes, formatswere also given to the participants for performance planning etc. for beingtested.

ix) Performance Management - Key Elements

In the background on the experience, insights, andexpectations, the participants were able to visualise (in linewith Vroom’s theory) that the Performance of a person dependsat least on three factors :

Ability (Knowledge and skill) of the person to do the specific job.

Willingness (Motivation) of the person to do that job

Support (resources, guidance, feedback) provided by the organization.

Some Indian insights were also quite helpful at this stage, especially a quotationfrom ‘Chandagya Upanisada’ –

“Whatever is done with Vidya, Shradha and Upanisada; that alone becomesefficient.”

Vidya – (Science of) Knowledge and Skill.

Shradha – Faith (and Conviction); faith in oneself, the impulse from within.Totality of positive attitudes.

Upanisada – deep thinking, meditative thinking on the subject concerned.

Superior efficiency will come when we combine knowledge with the energiesof Shradha and Upanisada.

Knowledge

Doing - behaviour (outer world)

Skills

Shradha

Being - attitude, values (inner world)

Upanisada


PERSONALEFFECTIVENESS


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3.4 Testing the Formats

In some of the GMPs and Strategic Management Programmes, the newlydeveloped PMS formats got filled up by the participants and this exercisehelped us in testing the formats and validating the provisions.

3.5 Other Interventions

For stimulating the need of a new system of Performance Management andbringing in clarity of expectations and approaches a few Workshops had beenconducted by us at Units and HRDI. In addition, this has also been a topic forSyndicate discussions in General Management Programmes and otherprogrammes. Some Summer trainees (MBA) also conducted surveys / studiesin Delhi based Divisions and Units which have been quite useful.

3.6 Corporate Personnel Exercise on Identification of Thrust areas in HRM

BHEL evolved its Vision, Mission and Values in 1996 and as a part of theimplementation efforts, it was decided to identify thrust areas for the HRMfunction in line with Vision 2001 / Perspectives 2002. A Corporate task forcewith the author of this paper as Leader was set up drawing 9 other membersfrom various units / divisions of Corporate Office. Some of the task forcemembers had earlier (1996) undergone the first six day programme (mentionedearlier) on ‘Performance Management’ which was designed and conducted bythe author. A weeklong intensive exercise was conducted by the task force,which brought out 17 thrust areas. Broad objectives for each were alsodefined. After presentation to top management, 5 thrust areas were selectedfor further work. Performance Management was one of them. Theidentification of this area as a thrust area gave a big fillip to the earlier effortsof developing a new PMS.

4.0 DEVELOPING PERFORMANCE MANAGEMENT SYSTEM

4.1 Constitution of Cross Functional Teams

A cross functional team with 4 executives including one from CorporatePersonnel and 2 from major units, with the author as the leader was constitutedby Corporate Personnel. After a few days of discussions, consolidation of thedata of surveys and experiences of all the training programmes, syndicate worketc. an outline (sketch) of a Performance Management System was created.This was presented to ED(P&A), Corporate Office who gave the green signalfor further development.

4.2 Preparing an Approach Paper - Presentation to Director (Personnel), Preparing Draft System

The system was developed around the seven components identified earlier.

Five formats covered in 8 pages were also designed. The New System wasquite different from the old one. The highlights of the system were :

Shift of focus from ‘Performance Appraisal’ to ComprehensivePerformance Management.

Increased involvement of subordinates in Performance Managementactivities.

Introduction of individual level goal setting.

Increased objectivity in appraisal.

Emphasis on development not on control.

Introduction of Potential Appraisal.

Introduction of Performance based Reward system.

Shift from ‘grade’ based to ‘mark’ based appraisal.

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Introduction of appraisal discussions (twice a year) but marking to remainconfidential.

Introduction of Performance Improvement plans for individuals.

The System was presented to ED(P&A), Corporate Office and Director(Personnel) and a few changes were made thereafter.

4.3 Presentation to Personnel Heads

The system was presented to Personnel Heads who reacted sharply on someaspects. A copy of the document was later on sent to them for presentation atunits and getting comments of other executives in Personnel Department andLine Managers. Presentation was also made to the Members of ExecutiveAssociation. Comments were received and studied by the CFT Members.

4.4 Examination of Issues Raised and Testing of Assumptions

In training programmes of HRDI, the issues emerging out of the variouspresentations and comments received were specifically raised directly andindirectly and assumptions were tested. This helped in retention and change ofsome of the provisions.

4.5 Presentation in Management Committee Meeting

The author at the Management Committee Meeting made a presentation. Thisevoked a mixed reaction — welcome, appreciation, criticism etc. A committeeof EDs was set up for in-depth examination of the system. The committeeafter detailed examination asked for simplification.

4.6 Simplification of System and Formats

Simplification of the system was not an easy task for the CFT as it was at thecost of some compromise on the expectations. It was a question of a very tightropewalk - at one side quality of the system on the other acceptance - strikingthe balance was a really difficult task. There were sharp and hot discussionsamongst the CFT members on specific issue a number of times. Some amountof ‘Quality’ had to be sacrificed for ‘Acceptance’.

After simplification - again a series of presentations were made - to HRDIparticipants and top management including Director (Personnel) and others forknowing their responses.

5.0 SELLING THE SYSTEM TO USERS

5.1 Presentation of the Draft System at Units / Divisions

As advised by the Director (Personnel), full presentations at all major units /divisions were made by two of the CFT members. Around 100-120 senior levelmanagers at a time attended presentation sessions of 4 hours duration at everyunit. Two such sessions were held at every unit. These sessions were reallystormy as strong emotions emerged everywhere. All the pent up dissatisfaction,anger and hostility to power erupted severely and a very high degree ofprocess facilitation skills were required for facilitating such interactions. Snapsurveys, to get their perception on a few critical and controversial issues wereconducted through a semi-structured questionnaire in a few of the units.

5.2 Amendment of the System and Simplification

A few major changes into the draft system were made subsequently. One suchexample is making the appraisal completely open; even the final points wouldbe allotted in presence of the Appraisee. The simplification also had createdsome problems.



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5.3 Presentation to Full Time Directors

The system was presented to full time Directors including CMD and commentswere very valuable.

5.4 Presentation to Management Committee

Finally presentation was made to the Management Committee, which is theapex decision making body (having CMD, Directors, Executive Director andUnit / Division Head as Members. Discussions were very lively, analytical andprobing. One senior member of the committee wanted to introduce 360 degreefeedback system. It was clarified that ultimately 360 degree feedback would beintroduced but after running the system for 1-2 years. In the meantime, plannedefforts would be made to enhance the readiness of the users. The system wasissued by Director (Personnel) for implementation giving an implementationplan.

6.0 HIGHLIGHT OF THE NEW PERFORMANCE MANAGEMENT SYSTEM

On the basis of extensive work of developing Performance ManagementSystem in the above-mentioned Company, the following seven components havebeen found to be essential in any Performance Management System.

a) Performance Planning

b) Performance Appraisal

c) Performance Feedback and Counseling

d) Performance Enabling

e) Rewards

f) Performance Improvement

g) Potential Appraisal

Highlights of each of the systems have been given below :

6.1 Performance Planning

Performance plans will be made by every executive at the beginning of theyear identifying the activities to be performed during the year and thecompetencies required for accomplishing these activities. The activities to beperformed will be identified primarily on the basis of the “Performance budget”of the unit / division but other activities to be accomplished during the year willalso be included. Performance plan will form the basis of appraisal and shall beprepared jointly by the Appraiser and Appraisee.

6.2 Performance Appraisal

The Appraisee and Appraiser will do appraisals twice a year - once in Octoberand again in April both. The financial year starts on 1st April and ends on 30thMarch. Appraisal will be done on a 100 point scale, a maximum of 70 pointswill be available for Appraisal of Performance (i.e. activities and tasksexpedited during the year) and 30 points for appraisal of the competencies.Every time, appraisal will be initiated by the Appraisee, and would be carriedout by the Appraiser subsequently after discussions with Appraisee. TheAppraiser in the presence of the Appraisee will award marks.

6.3 Performance Feedback and Counseling

In order to provide an opportunity to know the areas of performance up to thedesired level, areas of further development and to motivate the Appraisee forimprovement, Feedback and Counseling will be carried out along with everyappraisal. Training and development needs for the year will be identified jointlyby the Appraiser and Appraisee.

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6.4 Performance Enabling

The appraiser will take necessary steps to ensure that the Appraisee is able tocarry out the desired activities to the best of his ability. A few guidelinesincluding using appropriate Leadership style, Feedback and Power ofExpectations have been given in the system.

6.5 Reward and Reinforcement

A reward scheme linked to Performance has also been proposed in two slabsfor those getting Appraisal points of 85 and above and those who obtainperformance appraisal rating of 91 and above. This is initially equivalent to oneincrement and two increment for an year Relative weightage of differentfactors in promotion decisions has also been indicated.

6.6 Performance Improvement

Planned efforts will be made to identify the gaps in expected and actualperformance, and Appraiser and Appraisee would jointly involve a plan forimproving Performance.

6.7 Potential Appraisal

Potential appraisal will be conducted once a year for lateral as well as verticalmovements of executives. For vertical movement, Potential will be apprised ontwo parameters : (i) knowledge and skills (on 10 points) and (ii) criticalattributes (40 points). The Potential appraisal System is supposed to nowprovide valuable inputs for the newly developed ‘Career and SuccessionPlanning and Job Rotation System’, therefore is being modified. (Consideringthe importance of Potential Appraisal in the forthcoming system on Career andSuccession Planning, this system was not implemented. It was decided tointroduce Competency mapping and assessment techniques and then bring out amore effective Potential Appraisal System.

7.0 IMPLEMENTATION EFFORTS

The implementation of this system has been the prime concern at all levels ofthe activities and one of the reasons of depending totally on Internal resourcepersons was to ensure elimination of gaps , if any, in this direction. Salientfeatures of the implementation efforts are briefly described below :

7.1 Corporate Level Steering Committee

Much of the work had been done before the formal issue of the system.A steering committee at Corporate level was set up with GM (Personnel),Corporate Office as its leader. The author was also a team member but hismain responsibility thereafter was to provide professional guidance and supportto ensure effective implementation. Units were asked to constitute suchcommittees for monitoring the efforts at Unit level.

7.2 Developing Facilitators

It was proposed to train adequate number of Facilitators who would conducttraining programmes at all Units / Divisions for in depth exposure of users ofthe system. Nomination of specified nos. of Facilitators for being trained wasinvited by HRDI - 50% from Personnel / HRD and 50% from Line Managers.Over 80 such facilitators were trained in 4 nos. of 2 day intensive trainingprogramme designed and conducted by the author supported by Shri KK Seth,DGM(Personnel), Corporate Office and Shri MP Jayakjumar, DGM(HRDC),BHEL Trichy.



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7.3 Training of Users

There are around 10,000 users.

The Facilitators did a commendable job by training all users in the Units. Thefacilitators would ensure smooth implementation of the system and would nowtraining the remaining executives. Their motivation is at a very high level andthey have accepted this mammoth task voluntarily in addition to their normalwork.

7.4 Pilot run of System

A real life pilot run of the system was conducted in one of the medium sizeunits (Jhansi) where the system was really operated for trial. Only a few minormodifications in format and procedure were made subsequently.

7.5 Implementation Directives, Distribution of the Manual of Performance Management

The system document was printed and a copy with the formats was sent to allusers along with the Implementation Order. Additional copies of formats insufficient nos. were sent to all Units / Divisions.

7.6 Training in Giving and Receiving Feedback

While conducting the Training programme for facilitators, it was strongly feltthat every user will have to undergo an intensive training programme of in‘Giving and Receiving Feedback’. A few such programmes (2 days duration)have already been held at a few small divisions by HRDI. There are very fewtrainers who can conduct in depth programme in Performance Feedback andCounseling and over 9,000 users are to be trained by October, 2001. Therefore,again 100 Trainers, in four batches, were being developed internally by makingthem undergo a 4 day intensive training module designed and conducted byauthor. A model design of one day programme on ‘Giving and ReceivingFeedback’ has been designed and given to all trainers along with a training kitcomprising Floppy, CDs having three small films, cases and instruments etc.This kit also has been prepared by the author.

This is going to be a very powerful intervention and these internal resourcepersons are going to contribute tremendously on various dimensions.

7.7 Constitution of Performance Planning and Review Committee

PPRCs at all Divisions have been constituted at all units in 2 tiers for smaller /medium size units and in 3 tiers for major units and guidelines have beenprepared.

8.0 BEHAVIOURAL IMPLICATIONS

Designing and implementing Performance Management Systems has very wideand intensive Behavioural implications. Some of the issues which the Leader ofthe Project (the author) experienced may be enumerated as :

Pains, dilemmas while initiating proposal.

Coping with ambiguity

Risk taking in new proposals.

Creativity, pressure for bringing something new and innovative.

Envy of others

Listening, make others listen

Influencing others, getting influenced by others.

Frustration - of not being able to convince.

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Hostility of Superiors, colleagues, users.

Team working - with his own team and other temporary teams.

Asserting - to Superiors and Peers.

Encouragement, appreciation, receiving and giving.

Achieving involvement and co-operation of others.

Conflicts - coping and resolving.

Outburst of feelings

During various interactions with Top / Senior level Executives also a fewcritical behavioural issues surfaced. A few are enumerated below:

Fear of getting exposed - lack of work load, tasks, excess manpower etc.

Fear of getting questioned by subordinates regarding assignment of task,allocation and award of points

Fear of committing help, guidance and resources to subordinates

Fear of loosing autonomy

Pressure for making more comprehensive annual plans

Discomfort due to the requirement of giving Performance feedback andCounseling

Discomfort due to perceived need of changing management style fromcontrol to facilitation

Fear of transparency, even disclosing the points awarded.

Rigidity - old dog syndrome.

Jealousy, envy with other Top management Personnel

Fear of ambiguity

Locus of Control (external)

Poor motivation for excellence

Self concept (poor) related issues.

All this resulted in resistance to change.

However during discussions in many Top/ Senior level Executives very positivebehavioural characteristics were observed which at times helped in raising themotivation of CFT members. A few may be enumerated as:

Encouraging creativity and risk taking

Internal locus of control

Willingness to change

Balance between quality of the system and acceptance of users

Consensus building

Use of appropriate Power bases for influencing users

Belief in Human capabilities and convincing others for the same

Setting higher expectation on the CFT leader (the author) and the team(Pygmalion effect)

Collaborative approach in conflict resolution, some times Power strategyalso, it generally proved to be functional.

Eliciting support of opposing / neutral Top management personnel

Encouraging Confrontation

Tremendous confidence in internal resource persons.



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Some of the behavioural issues / dimensions characteristic of each system arealso enumerated below :

8.1 Performance Planning

Trust and openness between Appraiser and Appraisee.

Achievement motivation of both

Motivation of Appraisee to set higher goals.

Expectancy of getting help, guidance, socio emotional support.

Assertiveness of both

Trust and openness between group members,

Hope success vs fear of failure

Locus of control.

8.2 Performance Appraisal

Trust and openness

Objectivity

Distinguishing content and Process

Willingness to know others opinions, perceptions to be evaluated.

Clear, supportive communication.

Self-concept - match between self and others perceptions - significance,competence and lovability.

Coping with fear, anger

Interpersonal needs - Inclusion, Control, Affection (Openness)

Power perception (Self & others) of Appraiser and Appraisee.

Listening.

8.3 Performance Feedback and Counseling

Perceptual process

Perception of Care and Concern

Openness, trust

Power perception (Self and others)

Coping with feelings

Inter-personal needs (Self and others)

Credibility (of source and recipient)

Perceived intentions

Supportive Vs. Defensive communication.

Assertiveness

Empathy

Willingness to improve.

8.4 Performance Enabling

Sense of responsibility (ownership)

Locus of control (internal vs. external)

Manager vs. Leadership, Leadership style effectiveness

Persuasion, influencing

Giving and receiving feedback

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Understanding the maturity level of Subordinate.

Use of appropriate leadership styles and Power bases.

Supportive vs Defensive communication.

Result vs. Process emphasis.

Interpersonal relations

Resourcefulness

Helping behaviour (attitude)

Need to own success / failure Self vs Subordinate

8.5 Rewards and Reinforcements

Motivational Style and process

Care, Concern, Sensitivity

Self esteem

Achievement orientation

Recognition

Coping with failures

Affection/ Openness needs

8.6 Performance Improvement

Desire to achieve, error correction

Trust, openness

Cause - effect analysis

Reward, recognition

Motivation style.

8.7 Potential Appraisal

Objectivity, overcoming biases

Confidence in Human capabilities

Understanding competencies

Visualisation, Imaginativeness

Tolerance to ambiguity,

9.0 PROBLEMS BEING FACED IN IMPLEMENTATION

Fear of getting exposed — Subordinates demand more work load fromSuperiors hence they feel threatened, as they would get exposed if not ableto provide enough job.

Uncertainty of orders creates problem in planning.

Quantum of Job

What could be the optimum workload - in spite of the ‘Standard workload’concept, there is confusion.

Aversion to giving ‘time frame’ and ‘Performance Indicators’

Perceived difficulty in identifying ‘tasks’ and estimating the ‘work content’

At senior levels (Sr. DGMs and above), lukewarm response due tostagnation (low prospect) of promotion to higher levels.

Potential appraisal included in PMS is inadequate hence need of newPotential Appraisal System.



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Initial fears and apprehensions in giving and receiving feedback(especially negative).

Target population is very large and scattered - difficulty in monitoringimplementation.

In spite of all efforts taken fear of subjectivity.

Lack of support to PMS Coordinators / Facilitators.

Monitoring efforts not up to the mark.

Time pressure (compulsion) for both sides for meeting the requirement.

10.0 BENEFITS PERCEIVED BY USERS

Message that everybody would have to work has gone deeper and deeper.

Ineffective Managers are getting exposed.

Demand of more workload by Superiors.

Role clarity will increase , people will learn goalsetting.

Beginning of a culture of individual level planning, evaluation and monitoringleading to Performance oriented climate.

Availability of an objective base for rewards.

Very distinct identification of Performance (levels and targets).

Linkage with Top managements goals, perceptions and orientations.

Enhancement Credibility of Appraisers and Appraisal system.

Efforts to understand and enhance competencies.

Creation of openness and trust.

Enhancement of Achievement Orientation.

Opportunity for development.

Identification of appropriate training programmes.

Pressure for understanding

i) Work content estimation

ii) Identification of value addition activities

iii) Competencies of subordinate and

iv) Learning strategies of subordinate development

Training efforts linked to competency

Initiation of competency based HRD efforts

Appreciation of joint responsibility for Performing

Projecting lack of work load or excessive work load at thebeginning of the year, hence proactive efforts

Encouragement of healthy competition

Some linkage between Performance and Rewards

Facilitating reduction of cycle time

Excess / surplus manpower getting exposed

Providing objective data for career/ succession plans etc.

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11.0 FUTURE STEPS

After having an years experience and feedback efforts will be made to reviewthe system where ever essential. The following new initiatives would also bemade for strengthening the system further :

– Performance Plans for the Head of units would be made using theBalanced score card approach. This would encompass Long-range plans,MOUs and Revenue budget. Scorecards for other senior executives wouldbe prepared on the basis of the above and Performance plans will beprepared accordingly. At least 6 Training programmes will be conductedfollowed by a number of workshops at the unit level.

– Identification and development of competencies for each role / position isvery essential for PMS. Planned efforts will be initiated for Competencymapping and assessment. Training will be made competency based.

– Efforts would also be made to computerize the system to the extentpossible once the system stabilizes.

– Rewards based on Performance would be further strengthened.

– Utmost effort would be made to use the System for developing themanagers , interventions like Coaching and Mentoring would be encouraged.

12.0 CONCLUDING REMARKS

This project, right since the beginning, has been exciting to many persons. Thisis a major change effort and large system intervention.

How the Top Managements’ support, learning attitude, clarity, conviction andconfidence in internal resources can help in introducing such major change —this system is a living example. Although many leading consultants ofinternational level were considered but ultimately the top management reposedconfidence in internal resources. The inspiration, openness, future orientationand spirit of confrontation of the Director (Personnel) of BHEL not onlystimulated the thinking process but also provided a big challenge before theteam. The blending of Behavioural Process skills, Quantitative techniques, Workstudy and Business Systems processes - proved to be very effective. Rightsince beginning an induction process (learning then doing) was used and this isthe best example of using Training interventions for design and implementationof PMS. The cohesion of the task force members, their openness and mutualtrust and their dedication to bring out something new and effective not onlypaid dividends but also provided a memorable experience. The patience andperseverance are a few other factors responsible for success. It is a trueexample of collaboration.

The amount of interactions generated in development of the system is anexample in itself. This system is going to streamline many of the businessprocesses and contribute very significantly in achieving the organizational goals.One year of experience of running this system has established a strong needfor Performance Management System. It is now widely recognized as aneffective HR intervention in which the line managers and top management hasto play the pivotal role. These experiences and realizations have resulted inengaging an International consultancy organization to further enrich the systemand make it e-enabled.

Subsequent to the implementation of the System an evaluation exercise wasconducted and suitable modifications made., The system has been furthermodified and implemented with the title” MAP–Moving ahead withPerformance’ and at this stage external Consultants were used. The activitieshave been e-enabled for fastness and transparency with the help of. Theactivities and ratings have been made fully transparent. Continuous efforts arebeing made to get the feedback of users and update the system wheneveressential.



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Annexure 1

PERFORMANCE APPRAISAL OBJECTIVES

S.No. Objectives Ideal Existing Diff.% RankScore % Score % Diff.

1. Role clarity 80.0 45.5 34.5 8

2. Work Planning/Task Planning 75.5 43.0 32.5 10

3. Gain insight into Strength &Weakness of self 72.5 40.5 32.0 11of subordinates. 66.5 33.0 33.5 9

4. Identify developmental needs, 73.5 45.5 28.0 12of self of subordinates 64.5 38.1 26.5 14

5. Increase Mutuality between 66.5 38.5 28.0 12self and subordinates.

6. Increase communication. 79.5 38.5 41.0 2

7. Preparation for higher level of job 81.0 41.5 39.5 4by recognition of qualities neededfor them.

8. Promoting reflection and 76.5 40.0 36.5 5motivation through self appraisal.

9. Internalize organizational norms, 66.0 30.5 35.5 6values, culture.

10. Creating a positive, collaborative, 73.5 33.0 40.5 3and problem solving andhealthy culture.

11. Ensure optimal performance and 76.5 28.5 48.0 1accountability through rewardsand punishments.

12. Control employees behaviour 66.5 31.0 35.5 6and output through ratings.Any others.

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UNIT 16 INSTITUTION BUILDINGObjectives

After studying this unit, you should be able to understand :

the concept of ‘organization’, ‘institution’, ‘institution building’ and thecharacteristics of institution

the factors which influence institution building

the process aspects of institution building

significant dimensions of institute building: self-renewal and innovation

the role of the chief executive in institutional building.

Structure

16.1 Organization Vs. Institution

16.2 What is an Institution

16.3 Factors Influencing Institution Building

16.4 Institution Building : The Process

16.5 Significant Dimensions of Institution Building:Self-Renewal and Innovation

16.6 Institutional Building: The Role of Chief Executive

16.7 Summary



Appendix 1. Organisation Crises and Outcomes

Appendix 2. Checks to Measure the Extent of Institutionality

16.1 ORGANIZATION Vs. INSTITUTION

An organization comes into existence in order to achieve a goal or a set ofgoals. Since no one individual can achieve the goal or set of goals by himself, anumber of individuals come together. Hence there tends to be a division ofwork where in the overall goal or objective is broken down into sub-goals andthey in turn into activities to be performed by each of the individuals thus,giving rise to differentiation in power, authority, role and responsibilities. Thesedifferentiated functions are coordinated, in terms of rationally conceived rolerelationships, and a normative order.

This rationally conceived hierarchisation has to be maintained over time toachieve the overall objective. Hence maintenance of the normative order is animportant sub-goal of the organization.

While organizations aim at maintenance of internal order and efficiency in goalrealisation, institutions extend beyond these goals. Institutions have relativelymore permanance than organisations. Organizations are organic, they have abirth, growth and finally, decay. Institutions are more enduring, have capacity ofcontinuous growth, ability to cope and adopt under diverse pressures and pullsto make thrust into the future, in addition to having an impact on the society orcommunity in which they exist. They perform services and functions which arevalued in the community or society and also play the roles of a changeinducing, a change-protecting agent within the community. While all institutionsbasically start as organisations, it is only a few organizations that can survive,grow and adopt to achieve finally an institution status.


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16.2 WHAT IS AN INSTITUTION ?

Institution may be defined as a responsive, adaptive organisation which is aproduct of social needs and pressures. It is a part of the larger system i.e. thecommunity or the soceity and is a forward looking, adaptive and proactive partof the community. Esman and Blaise (1966) idefine institutions ‘as organisationswhich incorporate, foster and protect normative relationships and action patternsand perform functions and services which are valued in the environment.’

What Characterises an Institution?

1) An institution is an organisation which is relatively more enduring and isperceived as an indispensable part of the community.

2) Its functions and services are related to society’s commonly agreedrequirements.

3) It has the ability to adopt overtime to changing needs and values in thesociety and contribute to the community needs.

4) Its internal structures embody and protect commonly held norms and valuesof the society.

5) Its achievements overtime include influencing the environment in positiveways through the values it creates, (where such necessity arises).

6) Its influence extends to other similar institutions which are linked to it.

7) It is a change protecting and change inducing format organisation. It tendsto protect positive values within the community or create new beliefs andvalues that are necessary for the sustenance of the community or to bringsocial order at times where negative forces are likely to affect thecommunity.

8) It has permanence that extends beyond the role incumbents who may comeand go.

Activity A

Define the concepts ‘organisation’, ‘institution’.

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What are the characteristics of an institution? Can we differentiate between theterms ‘organisation’ and ‘institution’?

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What is Institution Building?

Institution building referts to transforming an organisation into an integratedorganic part of the community, so that the organisation can effectively play therole of projecting new values and become an agent of change in thecommunity. Hence institution building refers to the process aspects of:

a) establishing or transforming an organization;

b) making an organisation an integrated or organic part of the community;

c) the maintenance role of adopting or adjusting to the existing values;

d) projecting new values through its own efforts of self growth andorganisational renewal, and thus; and

e) the proactive role of bringing change contributing to change in the existingvalues of needs of the society.

Activity C

What is Institution Building? Explain.

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16.3 FACTORS INFLUENCING INSTITUTIONBUILDING

There are several factors that influence institutional building:

1) Goals or Objectives: Clarity or specificity of the goals is basic toinstitution building. The goals should also be perceived as important andjustify the need for the organization both with respect to expectations of themembers within and society outside the organization. When the goals areseen as challenging and interesting and widely accepted among members ofthe organization and the activities of the members are focused around thesegoals, institution building is possible. Superordinate goals like commitment,loyalty and patriotic fervour among employees generally tend to facilitateinstitution building.

2) A Second Variable that Contributes to Institutional Building is the‘People’: Selection of the people for positions in the organization should bein terms of a right fit between the individual and the job. Two aspects areimportant in this context: task maturity and psychological maturity. Taskmaturity refers to the extent to which the role incumbent has the necessaryjob knowledge and skills required on the job. Psychological maturity refersto zeal and enthusiasm to work, commitment to the job and the organization,confidence in ones’ own abilities to accomplish tasks and responsibility forones’ job. It is the people, who finally make an institution. Developing trustamong one another, generating team spirit and positive interaction among the

Institution Building


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role set members and providing sufficient autonomy which is commensuratewith responsibilities on the job, are essential for institution building. Trust isan important dimension for effective interpersonal relationship and it is oftensaid that trust begets more trust.

Organizations should provide opportunities for upward growth anddevelopment for those who are competent and have potentialities for growthand development. Otherwise, institutional development is jeopardised.

3) A Third Variable of Importance is Organisational Structure andDesign: Organisation is basically a system of input process and output sub-systems. Men, money, raw-material and machinery form the inputs. Theprocess aspect is concerned with the optimum utilisation of these inputs toproduce certain outputs. The output can be the goods produced or servicesrendered that serve the needs and interests of the society.

The organization design and structure is the basic frame work around withformal interactions take place within and in between the different sub-systems(departments). The structure influences

the extent to which the different resources may be optimally utilised.

the work culture that is created and sustained within the institution

the relations with systems outside the institution

the ability to adopt to changing demands and requirements arising fromthe external environment.

Too rigid structure stifles individual autonomy, creativity and ability of theorganization to meet changing demands. At the same time, too loose a structureresults in sub-optimisation of resources, lack of appropriate direction and workculture. In such an environment organizations may soon become defunct.

The structure should not be static but dynamic and have the necessarymechanisms to foster and stabilise appropriate traditions and work culture andalso establish linkages with its customers and major client systems. It should beable to provide a leadership role to similar organizations. Such a structure formsthe basis for institution building.

4) A Fourth Aspect that Fosters Institution Building is theOrganisational Culture: Organizations should strive at developing greatercooperation among the members. This can be achieved by better integrationof departmental functions and developing homogeneity of thinking among themembers. Commonality in the goals of the organization and those of theemployees, and recognition and understanding of the symbiotic relationshipthat exist between one employee and the other, or one department andanother result in better accommodation and cooperation. Conflicts are to beviewed positively as providing opportunities for innovativeness andunderstanding other’s position in addition to one’s own. Mechanisms ofestablishing a balance between the autonomy of individual members andcoordination for common goals help in institution building. In its relationshipwith outside organisation, the institution should seek collaborativerelationships at the same time maintaining its own identity.

5) A Fifth Factor Contributing to Institutional Building is Leadership atthe Top Management Level. The leadership style should be anamalgamation of the roles of a ‘developer’s and an ‘executive’. A developerplaces trust in his subordinates, provides them opportunities to take upresponsibilities, motivates them to the peak of their performance and providesa creative work atmosphere. He is supportive in his relationships with othersand provides opportunities for growth, self-direction and self-control for hissubordinates. An executive as a team-builder, inspires participation among

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the members and thereby ensures their commitment to organisational goals,builds loyalty among his subordinates and also a keen sense of self-respect,and resolves conflicts strategically and creatively.

The leader ought to devote his full attention and time for institution building andtake pride in the development of his people. He has to establish effectivelinkage with outside organizations and project the image of the institution as acompetent entity to serve the needs of the society. He needs to gear up theorganization to meet changing needs and demands effectively. At the same timehe is not enamoured of his position, but is willing to develop others to step intohis whenever required.

6) Ability to Establish Effective, Operative Linkages with ExternalEnvironment is Necessary for Institution Building: Such a liaison helpsin understanding the needs and expectations of the external sub-system suchas clients, customers, suppliers, other organizations etc., to which theinstitution has to finally cater to carve a niche for itself in the environment.The linkages are:

enabling linkages with other organizations or social groups which arelikely to control the allocation of resources and authority (e.g. forgovernment) needed the organisation to function.

functional linkage with those external sub-systems that provide theinputs for the organization and utilise the product or service outputs ofthe oganisation (e.g. suppliers, customers or client group).

associative linkages with other institutions of a similar nature forpossible collaborative relationships (eg. sister institutions).

contingent linkages, depending upon the situational necessities withcertain other sub-systems that may become relevant or important at agiven time (for e.g. a legal system, a consultancy unit).

Activity D

How the following factors influence institution building:

organizational goals.

organizational structure and design.

organization culture.

relationship with external environment.

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16.4 INSTITUTION BUILDING : THE PROCESS

Institution building refers to two aspects :

1) Development of an institution by an outside expert (which may be anindividual or an organization) including development of relevant norms andvalues, and

2) Internal development of an institute to be able to play its role effectively(i.e. the self-renewal process).

In terms of either of these definitions, institution building refers to the processof birth, development, renewal and institutionalisation.

All organizations are organic i.e. they have birth, development, growth andfinally, decay if the organization does not invigorate and renew itself.Invigoration and renewal extend the longevity and performance of theorganization where it stabilises as an institution. While many organizations dieaborning, it is only a few that seem to live forever.

Warren Schmidt (1967) has suggested that organizations have stages ofpotential growth in their life cycels. At each of the stages, the organization issubject to certain crises that make demands on the managerial or organizationalactivities. If the organisation is able to cope effectively with the crisis it willenter the next stage of growth. The crisis is generated either because ofinternal factors or external factors in the environment or both. The stage ofdevelopment at which an organization is, is more in terms of the crisis factorsrather than its financial status or number of employees or its share in themarket etc.

The first stage is birth of an organization. Organizations originate at first, in theminds of individuals, as an idea. An operative model with necessary resourcesand support mobilisation characterises the earliest stage.

The second stage is survival and sacrifice. An organization is born in a climateof a new idea, hope and excitement, but has to struggle to survive in the worldof competition and challenge. The need to survive, makes heavy demands onthe entrepreneur’s money, confidence, commitment, effort, personal time andeven family life. If this crisis is adequately resolved the organization gains afirm foot-hold, accepts realities and learns from experience. If unable to meetthe challenges, demands and competition, the organization may become defunctor exist marginally with still heavier demands made on the entreprenuer.

If the organization survives, then it should seek for stability which is the thirdstage. Organization should strive for an efficient work culture based ondiscipline, reorganization or role relationships, adequate employee compensationstructure, team-spirit and appropriate balance between short-term and long-termperspectives. It should also strive to stabilise its resources, customers, clienteleetc. Resolving the crisis of achieving stability makes the organization efficient,strong and flexible; while inability to do so results in the organization returningback to the survival stage and stagnation.

The fourth stage is self-examination regarding where the organization stands inthe eyes of the public, customers, competitors and others. The organizationshould be prepared to look critically at its products and services and its internaland external operations. Thus it should be open to criticism and strive tomonitor, review, evaluate and improve its performance from time to time.Resolving crisis at this stage successfully enhances the reputation of theorganization and results in the improvement of its quality of goods and services.

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Failure to resolve the crisis leads to living on past laurels and ‘image-creation’or ‘image-boosting’ which may be at variance with its actual performance thegreater the variance the greater is the likelihood of returning to instability.

The next issue that concerns the organization is to actualise its potentialities andto achieve uniqueness (characteristic of its activities). Such a goal can not berealised until the organisation is willing to bring the necessary changes thatinvolve certain amount of risk. Successfully overcoming a crisis providesopportunities for growth and development to its personnel. Unsuccessfulresolution leads to specialisation in a narrow field, conservatism and resistancethat inhabits further development. The organization may not be able to realiseits uniqueness.

The sixth issue of concern involves the organization’s responsibility to society, adesire to gain soceity’s respect and appreciation and to improve the quality oflife of its own employees. The crisis generated by efforts to be respected andappreciated depends upon the felt-needs for such an endeavour, organization’sfinancial status, investment opportunities elsewhere and the present self-image.By resolving this crisis correctly the organisation gains public respect andappreciation for itself as an institution contributing to society. Incorrectresolution leads to castigation by the public as ‘heedless barons’ or ‘heedlesstycoons.’

The different crisis discussed so far need not operate in the same consecutiveorder. Depending upon the environmental forces acting on the organization, amature organization may revert back to crisis of the earlier stages. When thenature of the crisis is not correctly understood, organisations are unable toresolve it adequately resulting in confusion and intolerance. However, byresolving the crisis at each of the stages successfully, an organiation growsfrom strength to strength. Resolution of crisis makes demands on themanagement’s knowledge, skills, experience and attitudes and it is quite possiblethat at different stages of growth, the managerial and leadership skills requiredare different.

Activity E

What are the different stages of growth of institutions?

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16.5 SIGNIFICANT DIMENSIONS OF INSTITUTION–BUILDING: SELF-RENEWAL AND INNOVATION

Earlier we have described the growth stages and crises experienced ininstitution building. Two of the significant dimensions of institution building areself-renewal and innovation.

Self-renewal refers to concentrated and continuing efforts on the part of theorganization to relate its technology, structure and people to problemsconfronting it from political, economic and social changes. The act of self-examination from time to time forms the basis of organization renewal. Thedifferent stage in self-renewal process are :

1) Sensing of change: Organizations should be ware of changes in theirinternal and external environment. Unable to perceive these changes, theorganization fails to cope adequately with its environment.

2) Identification of the implication of these changes. The question is how thesechanging forces are going to affect the ongoing system.

3) Deciding an appropriate plan of action. A suitable course of action isconceived on the basis of :

obtaining necessary information with regard to 1 and 2 based onsurveys, reports, statistical data and such other fact findingmethods.

accurate evaluation of the obtained information.

deciding at what sub-system level (i.e. organisational structure or taskor technology or individual/group) the neessary changes are to bebrought about.

implications of change in a sub-system for the other sub-systems.

weighing the different alternatives for their probabilities for effectivelycoping with external forces.

4) Introducing the change. The intended changes are implemented. Timelyaction is important.

5) Stabilising the change, enough system support is to be given to freeze thechange i.e. consolidate the new equilibrium.

6) Obtaining feedback on the outcome of change for further sensing of thestate of the external environment and the degree of integration of theinternal environment.

Failure at any of these stages results in unsuccessful resolution. Successfulresolution also depends upon certain conditions within the organisationsuch as:

effective information processing and communication.

flexibility within the sub-system for introducing relevant changes or remedialmeasures.

willingness to change among the people and commitment to organizationalgoals.

supportive climate at the top management level. Involvement of top-policymaking group gives legitimacy to the change process.

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The present day organizations are at a nexus of various external andinternal forces. Organizational renewal, hence, is of high priority so thatorganizations can do a self-analysis of their growth and their problems. Theorganizational leadership should look for new paths, new methods andinnovative approaches so that the organization can cope with changingdemands and forces.

Innovation

Innovation may be defined as a new idea or practice or approach that helpsthe system or the individual to deal effectively with a problem or change.Innovation is possible if the organization has a conducive environment for it tooccur such as openness flexibility, decentralisation etc. Some characteristicfeatures of innovation are :

It does not function in isolation or vacuum. Innovative changes should bethought of in a system perspective i.e. the likely changes in the internalsub-systems.

It thrives in a collaborative rather than a competitive environment.

Acceptablity of innovative change depends upon: 1. Its relative advantageover the existing ideas or approahces or other suggested ideas orapproaches. 2. Compatibility with existing norms, values and workbehaviours. 3. Simplicity both in concept and practice. 4. Utilitarianvalue for either coping with external demands or obtaining the desiredresults and the stakes involved. 5. Compatibility with existing skills. Ifinnovative changes require new skills, people should be trained sufficientlyin advance. Otherwise, resistance may be built inspite of the functionalvalue.

Innovative planning is an organizational necessity for self-renewal andinstitutional building.

16.6 INSTITUTIONAL BUILDING:THE ROLE OF CHIEF EXECUTIVE

Certainly the chief executive is a crucial figure in institutional building. Probably,it may be in your experience that a sinking organization not only comes out ofthe red but also stabilises and makes considerable amount of profit because ofchange at the top management level. There are certain chief executive whohave been very successful despite the nature of the organization they wereasked to manage.

The role of chief executive involves:

optimum utilisation of resources which is a basic ingredient of organizationalsuccess.

creation of team spirit and work commitment, thus providing a synergiceffect for optimum utilisation of human resources (where the contribution ofthe group is much more than a summation of the efforts of each of theindividuals, it refers to synergy).

achieving a positive balance between individual expectations andorganizational goals and demands. For example, there is absolute necessityfor formalisation (i.e. rules, regulations and procedures determining workbehaviour) but at the same time the individual should have autonomy andflexibility in work behaviour. Centralisation in decision-making is importantbut at the same time people at lower levels should be involved in decisionmaking.



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An institutional image is in terms of not only how it perceives its own statusbut also how it is perceived by similar organizations in the environment. A chiefexecutive is not only a spokesman for his organization but also a liaison builder.It is in terms of his efforts that the institution can play the role of a leader,trend-setter and a collaborator.

The chief executive should have the basic discipline, devotion and commitmentto work, a sense of vision, a futuristic perspective and above all adetermination to build the organisation to reach its maximum potentiality.

He should allow others to grow and should not be threatened by theachievements of his colleagues. When the time comes he should give way forhis successor without being highly possessive about the organization.

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INSTITUTION BUILDING:LESSONS FROM VIKRAM SARABHAI’S LEADERSHIP

Institutions are social areas where unique strategies are pursued forinducing and maintaining values which satisfy societal needs. Organizationsare formal, social mechanisms which facilitate constant transmission ofvalues, for example, a business enterprise or the church. Leaders are keyactors in these arenas embodying the values. The process of institutionbuilding is the energizing of people so that not only they internalize valuesthat transcent narrow self-interests but they also become infused with asense of mission in their total life. What distinguishes an economicorganization from an institutional organization is the intensity and the depthwith which individual members of an institutional organization hold the corevalues which seem to suffuse their total being.

Leaders and Institution Building

Peters and Waterman (14) in their recent research on “excellentorganizations” focus on the role of leadership in institution building. Theyemphasise the role of leadership in shaping the values of organizationalmembers as well as in developing distinctive organizational cultures.

Sarabhai was a prolific institution builder. He set up an institution everyyear beginning from 1947 till his death in 1971.

List of Institutions with which Vikram Sarabhai was Associated

Scientific Research : Physical Research Laboratory, Ahmedabad

Communications : Vikram Earth Station, Arvi, Poona

Atomic Energy : Fast Breeder Reactor, KalpakkamNuclear Centre for Agriculture, New DelhiVariable Energy CyclotronProject, Calcutta

Electronics : Electronics Corporation of India Ltd.HyderabadElectronics Prototype Engineering Laboratory,Bombay

Space Research : Thuma Equatorial Rocket Launching Station,TrivandrumVikram Sarabhai Space Centre, TrivandrumSpace Applications Centre, AhmedabadSriharikota Range, SriharikotaISRO Satellite Instructional Television Experiment

Textile Research : Ahmedabad Textile Industries ResearchAssociation, Ahmedabad

Development and Nehru Foundation for Development,Educational Research : Ahmedabad

Vikram A. Sarabhai Community ScienceCentre, Ahmedabad

Management and Indian Institute of Management, AhmedabadOperations Research : Operations Research Group, Baroda

Performing Arts : Darpana Academy for performing Arts,Ahmedabad



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He was also associated Indian National Committee for Spacewith Research Indian Space Research,

Organisation, Atomic Energy,Commission, Electronics Committee.Department of Atomic Energy,International Atomic Energy Agency,

andCommittee for Space Research of the UnitedNations

One of the ways of understanding the impact of leadership actions oninstitution building is by presenting the three guiding strategies he hadintuitively used. These three strategies rest on a single pivotal value whichis the primacy and centrality of an individual.’

The three guiding ‘strategies’ he used to build institutions are:

‘Networking strategy’ or creating interacting and overlapping clustersinternally as well as externally both to produce a vision for the institutionand to translate the vision into actions in terms of research programmesand projects.

‘Trusting strategy’ or creating a climate of trust providing freedom ofaction to the individuals, ensuring autonomy, and emphasising horizontalcontrol; and caring strategy or creating a climate of caring by the leaderremaining approachable through open channels of communication andemphasising the role of administration as a support system to the coretasks of the insitution.

The lessons that emerge from the study of Sarabhai as an Institutionbuilder can be summed up as follows :

In order to develop institutions it is important to place an individual atthe centre of institution building efforts. The task of a transforming andtransactional leadership is to present a vision which will inspire manyand to provide meaningful exchange relationships.

Leadership actions have to nurture trust constantly, creating inter-actingand overlapping clusters both within and outside the organization.Failure to do so is likely to lead to the breakdown of the ‘institutional’aspects of the organization resulting in its decline and decay.

It is important for an institution builder to identify and play multiple(formal and Psycho-Social roles within and without the institution.Decline in the performance of institutions could be traced to inadequateroles (both formal and Psycho-Social) to translate externally oriented,interface, and internally oriented leadership strategies for institutionbuilding.

While the criticality of organisational culture to the development ofinstitutions has always been emphasised, the importance of building intrust and caring has not been adequately emphasised in the literature.

Source: Adapted from ‘Institution building’ : Lessons from Vikram Sarabhai’sLeadership, S.R. Ganesh & Padmanath Joshi, Vikalpa Vol. 10. No. 4, Oct-Dec.1985. p. 399-414.

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Activity F

What is the role of the Chief Executive in institution building? Describe.

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16.7 SUMMARY

In this unit, we have seen that an organization, over a period of time, dependingon it’s stability becomes an institution. The factors which influence institutionbuilding, process and dimensions of institution building have been discussed. Therole of the Chief Executive in institution building has also been dealt with.


1) Keeping in view, a number of organizations that you know, can you identifyat what stages of development they are?

2) Identify an organization that is regarded as an institution. Collect informationabout various aspects such as: its objectives, internal culture and leadershipstyle at the top management.

3) Interview any of the chief executive who is regarded to have built up anorganization. Based on his experiences prepare a case study on institutionbuilding.

4) Analyse in terms of your own experiences whether organisational demandsare effecting your need satisfaction, suggest what changes you expect tomake in your work situation so that both organisational and your personalgoals can be satisfied.

5) To what extent you think there is team spirit in your work-group? Whatsteps would you suggest to enhance the team spirit?

6) In your environment there might be an organisation which is labelled as‘sinking’ or ‘losing’. Interview some of the managers and describe itsinternal environment. Make a list of the reasons that have caused thefailure.


Lawrence, P.R. & J.W. Lorsch 1967. Organisation and Environment:Managing differentiation and integration, Harvard Business Review 1967.

Lippit, G.L. 1969. Appleton. Organisation Renewal. Achieving Viability in aChanging World Century — Crafts Educational Division Meredith Corporation:New York.

Pareek, Udai, 1981. Beyond Management. Essays on the Process ofInstitution Building. Oxford & IBH Publishing Co.: New Delhi.



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Appendix-1

ORGANISATION CRISES AND OUTCOMES

Stage Critical Issue

Birth : Creation

Development : SurvivalStability

Renewal : Pride and ReputationInstitutionalisation Uniqueness and adaptability

Contribution

ORGANIZATIONAL CRISIS AND OUTCOMES

Outcome if issue is correctly resolved:

New Organization comes into being and starts functioning

Organization becomes viable. Learns from experiences. Understands reality.

Organization is strong, efficient and flexible enough to respond to changes

Reputation motivates to improve quality of goods and services.

Takes advantage of its unique capability and provides growth opportunities to itspeople

Gains appreciation as an institution contributing to society.

Outcome if issue is incorrectly resolved :

Idea remains abstract. Organization cannot adequately develop.

Organization fails or exists marginally as it fails to adjust to realities of thesituation

Organization is likely to retun back to survival stage or becomes inflexible forchanges.

Organizations more bothered about building its’ image than improve performance.Greater discrepancy likely to arise between projected image and actualperformance.

Fails to develop its uniqueness, concentrates on narrow areas for better security.Develops a paternalistic stance which inhabits growth.

Organization may be accused of lack of any social responsibility and botheredabout its profits and nothing else.

Source: Lippit, G.L. and Schnidt, W.H. Crisis in a developing organisation,Harvard Business Review, 45 (6), 1967, p. 109.

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Appendix 2

CHECKS TO MEASURE THE EXTENT OF INSTITUTIONALITY

1. Has the institution grown beyond the needs of survival and stability ?

2. To what extent it can be considered replete with regard to goals, tasks,missions, resources etc ?

3. How effectively does it relate to the external environment? Has itlinkages with relevant external sub-systems to an adequate degree ?

4. Does it stand by its intrinsic value? In other words, how is it rated forits functional value in the soceity: excellent, average or poor ?

5. How pervasive is its influence on other systems? Is it a trend setter orjust one among the rest? Can it Generate a new need or positivevalues in the community or suggest novel methods for the resolution ofcurrent problems ?
