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Organizational Structure & Development

© Ramakrishna Kongalla, Assistant Professor

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organizational structure• Consists of activities such as task allocation, coordination and

supervision, which are directed towards the achievement of organizational aims.

• It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment.

• Organizations are clustered entities of the branch, department, workgroup and individual.

• it provides the foundation on which standard operating procedures and routines rest.

• it determines which individuals get to participate in which decision-making processes, and thus to what extent their views shape the organization’s actions

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OrganisationsInformal organization• The interlocking social structure that governs how people work

together in practice.• It is the aggregate of , norms, personal and professional

connections through which work gets done and relationships are built among people who share a common organizational affiliation

• It consists of a dynamic set of personal relationships, social networks, communities of common interest, and emotional sources of motivation.

• The informal organization complements the more explicit structures, plans, and processes of the formal organization: it can accelerate and enhance responses to unanticipated events, foster innovation, enable people to solve problems that require collaboration across boundaries, and create footpaths showing where the formal organization may someday need to pave a way.

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Formal organization• fixed set of rules of intra-organization procedures and structures. In some such

rules may be strictly followed; in others, they may be little more than an empty formalism.

• To facilitate the accomplishment of the goals of the organization: In a formal organization the work is delegated to each individual of the organization for the attainment of definite goals, which are in compliance with the goals of the organization.

• To facilitate the co-ordination of various activities: The authority, responsibility and accountability of individuals in the organization is very well defined.

• To aid the establishment of logical authority relationship: The responsibilities of the individuals in the organisation are well defined.

• concept of specialization and division of Labour, division of work amongst individuals according to their capabilities

• Create more group cohesiveness

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Hierarchical organization• Every entity in the organization, except one, is subordinate to

a single other entity. This arrangement is a form of a hierarchy.• consists of a singular/group of power at the top with

subsequent levels of power beneath them.• This is the dominant mode of organization among large

organizations; most corporations, governments, and organized religions are hierarchical organizations with different levels of management, power or authority.

• Members of hierarchical organizational structures chiefly communicate with their immediate superior and with their immediate subordinates.

• Structuring organizations in this way is useful partly because it can reduce the communication overhead by limiting information flow; this is also its major limitation

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Flat organization• Flat organization (also known as horizontal organization) refers to an

organizational structure with few or no levels of intervening management between staff and managers.

• well-trained workers will be more productive when they are more directly involved in the decision making process, rather than closely supervised by many layers of management.

• possible only in smaller organizations or individual units within larger organizations.

• Some theorize that flat organizations become more traditionally hierarchical when they begin to be geared towards productivity.

• promotes employee involvement through a decentralized decision-making process. By elevating the level of responsibility of baseline employees and eliminating layers of middle management, comments and feedback reach all personnel involved in decisions more quickly. Expected response to customer feedback becomes more rapid.

• referred to as an industry-independent association or organization such as the Manufacturers' Agents National Association or MANA which focuses on the general principles of sales reps, not a specific industry.

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Organizational structure typesPre-bureaucratic structures(entrepreneurial) • structures lack standardization of tasks. • most common in smaller organizations and is best used to solve simple

tasks. The structure is totally centralized. • The strategic leader makes all key decisions and most communication is

done by one on one conversations. • It is particularly useful for new (entrepreneurial) business as it enables

the founder to control growth and development.• They are usually based on traditional domination or charismatic

domination in the sense of Max Weber's tripartite classification of authority

• Max Weber distinguished three ideal types of legitimate political leadership, domination and authority:– charismatic authority (familial and religious),– traditional authority (patriarchs, patrimonalism, feudalism) and– legal authority (modern law and state, bureaucracy).

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Bureaucratic structures• Weber (1948, p. 214) gives the analogy that “the fully developed

bureaucratic mechanism compares with other organizations exactly as does the machine compare with the non-mechanical modes of production.

• Precision, speed, unambiguity, … strict subordination, reduction of friction and of material and personal costs- these are raised to the optimum point in the strictly bureaucratic administration.”

• have a certain degree of standardization. They are better suited for more complex or larger scale organizations, usually adopting a tall structure.

• The tension between bureaucratic structures and non-bureaucratic is echoed in Burns and Stalker's distinction between mechanistic and organic structures.– The Weberian characteristics of bureaucracy are:• Clear defined roles and responsibilities• A hierarchical structure• Respect for merit.

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Post-bureaucratic• Two senses in the organizational literature: – one generic and – one much more specific.

• In the generic sense the term post bureaucratic is often used to describe a range of ideas developed since the 1980s that specifically contrast themselves with Weber's ideal type bureaucracy. – may include

• total quality management, • culture management and • matrix management

• Charles Heckscher has developed, in which decisions are based on dialogue and consensus rather than authority and command, the organization is a network rather than a hierarchy, open at the boundaries (in direct contrast to culture management); there is an emphasis on meta-decision making rules rather than decision making rules.

• This sort of horizontal decision making by consensus model is often used in housing cooperatives, other cooperatives and when running a non-profit or community organization.

• It is used in order to encourage participation and help to empower people who normally experience oppression in groups.

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Functional structure• Employees perform a specialized set of tasks

– for instance the engineering department would be staffed only with software engineers. This leads to operational efficiencies within that group.

• also lead to a lack of communication between the functional groups within an organization, making the organization slow and inflexible.

• best suited as a producer of standardized goods and services at large volume and low cost.

• Coordination and specialization of tasks are centralized in a functional structure, which makes producing a limited amount of products or services efficient and predictable

• integrate their activities vertically so that products are sold and distributed quickly and at low cost.– For instance, a small business could make components used in

production of its products instead of buying them.

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Divisional structure• "product structure", the divisional structure groups

each organizational function into a division. • Each division within a divisional structure contains all

the necessary resources and functions within it.• Divisions can be categorized – geographical basis – product/service basis

• Each division may have its own sales, engineering and marketing departments.

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Matrix structure• The matrix structure groups employees by both function and

product. • This structure can combine the best of both separate structures. • A matrix organization frequently uses teams of employees to

accomplish work, in order to take advantage of the strengths, as well as make up for the weaknesses, of functional and decentralized forms. An example would be a company that produces two products, "product a" and "product b".

• Using the matrix structure, this company would organize functions within the company as follows: "product a" sales department, "product a" customer service department, "product a" accounting, "product b" sales department, "product b" customer service department, "product b" accounting department.

• Matrix structure is amongst the purest of organizational structures

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– Weak/Functional Matrix: A project manager with only limited authority is assigned to oversee the cross- functional aspects of the project. The functional managers maintain control over their resources and project areas.

– Balanced/Functional Matrix: A project manager is assigned to oversee the project. Power is shared equally between the project manager and the functional managers. It brings the best aspects of functional and projectized organizations. However, this is the most difficult system to maintain as the sharing power is delicate proposition.

– Strong/Project Matrix: A project manager is primarily responsible for the project. Functional managers provide technical expertise and assign resources as needed.

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Organizational circle: moving back to flat• The flat structure is common in small companies (entrepreneurial start-

ups, university spin offs). As the company grows it becomes more complex and hierarchical, which leads to an expanded structure, with more levels and departments.

• Shell Group used to represent the typical bureaucracy: top-heavy and hierarchical. It featured multiple levels of command and duplicate service companies existing in different regions. The failure of this structure became the main reason for the company restructuring into a matrix.– Starbucks is one of the numerous large organizations that successfully

developed the matrix structure supporting their focused strategy. Its design combines functional and product based divisions, with employees reporting to two heads. Creating a team spirit, the company empowers employees to make their own decisions and train them to develop both hard and soft skills. That makes Starbucks one of the best at customer service

• the multinational design, common in global companies, such as Procter & Gamble, Toyota and Unilever. This structure can be seen as a complex form of the matrix, as it maintains coordination among products, functions and geographic areas.

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Team• One of the newest organizational structures developed in the 20th

century is team.• In small businesses, the team structure can define the entire

organization. Teams can be both horizontal and vertical.• While an organization is constituted as a set of people who

synergize individual competencies to achieve newer dimensions, the quality of organizational structure revolves around the competencies of teams in totality.

• For example, every one of the Whole Foods Market stores, the largest natural-foods grocer in the US developing a focused strategy, is an autonomous profit centre composed of an average of 10 self-managed teams, while team leaders in each store and each region are also a team.

• Larger bureaucratic organizations can benefit from the flexibility of teams as well. Xerox, Motorola, and DaimlerChrysler are all among the companies that actively use teams to perform tasks.

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Network• While business giants risk becoming too clumsy to proact (such

as), act and react efficiently, the new network organizations contract out any business function, that can be done better or more cheaply.

• In essence, managers in network structures spend most of their time coordinating and controlling external relations, usually by electronic means.

• H&M is outsourcing its clothing to a network of 700 suppliers, more than two-thirds of which are based in low-cost Asian countries. Not owning any factories, H&M can be more flexible than many other retailers in lowering its costs, which aligns with its low-cost strategy.

• The potential management opportunities offered by recent advances in complex networks theory have been demonstrated including applications to product design and development and innovation problem in markets and industries.

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Virtual• A special form of boundaryless organization is virtual.

Hedberg, Dahlgren, Hansson, and Olve (1999) consider the virtual organization as not physically existing as such, but enabled by software to exist.

• The virtual organization exists within a network of alliances, using the Internet.

• This means while the core of the organization can be small but still the company can operate globally be a market leader in its niche.

• According to Anderson, because of the unlimited shelf space of the Web, the cost of reaching niche goods is falling dramatically. Although none sell in huge numbers, there are so many niche products that collectively they make a significant profit, and that is what made highly innovative Amazon.com so successful.

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Hierarchy-Community Phenotype Model of Organizational Structure• The business firm is no longer just a place where people come to

work. For most of the employees, the firm confers on them that sense of belonging and identity- the firm has become their “village”, their community.

• The business firm of the 21st century is not just a hierarchy which ensures maximum efficiency and profit; it is also the community where people belong to and grow together- where their affective and innovative needs are met.

• Lim, Griffiths, and Sambrook (2010) developed the Hierarchy-Community Phenotype Model of Organizational Structure borrowing from the concept of Phenotype from genetics. "A phenotype refers to the observable characteristics of an organism. It results from the expression of an organism’s genes and the influence of the environment. The expression of an organism’s genes is usually determined by pairs of alleles. Alleles are different forms of a gene.

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• In our model, each employee’s formal, hierarchical participation and informal, community participation within the organization, as influenced by his or her environment, contributes to the overall observable characteristics (phenotype) of the organization.

• In other words, just as all the pair of alleles within the genetic material of an organism determines the physical characteristics of the organism, the combined expressions of all the employees’ formal hierarchical and informal community participation within an organization give rise to the organizational structure.

• Due to the vast potentially different combination of the employees’ formal hierarchical and informal community participation, each organization is therefore a unique phenotype along a spectrum between a pure hierarchy and a pure community (flat) organizational structure

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Organization development• Organization development (OD) is a deliberately planned effort

to increase an organization's relevance and viability.• Vasudevan has referred to OD as, future readiness to meet

change, thus a systemic learning and development strategy intended to change the basics of beliefs, attitudes and relevance of values, and structure of the current organization to better absorb disruptive technologies, shrinking or exploding market opportunities and ensuing challenges and chaos.

• OD is the framework for a change process designed to lead to desirable positive impact to all stakeholders and the environment.

• OD can design interventions with application of several multidisciplinary methods and research besides traditional OD approaches.

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• Organization development is an ongoing, systematic process of implementing effective organizational change.

• Organization development is known as both a field of applied behavioral science focused on understanding and managing organizational change and as a field of scientific study and inquiry.

• It is interdisciplinary in nature and draws on sociology, psychology, and theories of motivation, learning, and personality.

• Organization development is a growing field that is responsive to many new approaches including Positive Adult Development.

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Core Values• Underlying Organizational Development are humanistic values.

Margulies and Raia (1972) articulated the humanistic values of OD as follows:– Providing opportunities for people to function as human beings

rather than as resources in the productive process.– Providing opportunities for each organization member, as well as for

the organization itself, to develop to his full potential.– Seeking to increase the effectiveness of the organization in terms of

all of its goals.– Attempting to create an environment in which it is possible to find

exciting and challenging work.– Providing opportunities for people in organizations to influence the

way in which they relate to work, the organization, and the environment.

– Treating each human being as a person with a complex set of needs, all of which are important in his work and in his life

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Change agent• A change agent in the sense used here is not a technical expert

skilled in such functional areas as accounting, production, or finance.

• The change agent is a behavioral scientist who knows how to get people in an organization involved in solving their own problems.

• A change agent's main strength is a comprehensive knowledge of human behavior, supported by a number of intervention techniques (to be discussed later). The change agent can be either external or internal to the organization.

• An internal change agent is usually a staff person who has expertise in the behavioral sciences and in the intervention technology of OD.

• Beckhard reports several cases in which line people have been trained in OD and have returned to their organizations to engage in successful change assignments.

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• In the natural evolution of change mechanisms in organizations, this would seem to approach the ideal arrangement.

• Qualified change agents can be found on some university faculties, or they may be private consultants associated with such organizations as the National Training Laboratories Institute for Applied Behavioral Science (Washington, D.C.) University Associates (San Diego, California), the Human Systems Intervention graduate program in the Department of Applied Human Sciences (Concordia University, Montreal, Canada), Navitus (Pvt) Ltd (Pakistan), and similar organizations.

• The change agent may be a staff or line member of the organization who is schooled in OD theory and technique. In such a case, the "contractual relationship" is an in-house agreement that should probably be explicit with respect to all of the conditions involved except the fee.

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Sponsoring organization• The initiative for OD programs comes from an

organization that has a problem. This means that top management or someone authorized by top management is aware that a problem exists and has decided to seek help in solving it.

• There is a direct analogy here to the practice of psychotherapy: – The client or patient must actively seek help in finding

a solution to his problems. This indicates a willingness on the part of the client organization to accept help and assures the organization that management is actively concerned

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Applied behavioral science• One of the outstanding characteristics of OD

that distinguishes it from most other improvement programs is that it is based on a "helping relationship."

• Some believe that the change agent is not a physician to the organization's ills; that s/he does not examine the "patient," make a diagnosis, and write a prescription.

• Nor does she try to teach organizational members a new inventory of knowledge which they then transfer to the job situation.

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• Using theory and methods drawn from such behavioral sciences as industrial/organizational psychology, industrial sociology, communication, cultural anthropology, administrative theory, organizational behavior, economics, and political science, the change agent's main function is to help the organization define and solve its own problems.

• The basic method used is known as action research. This approach, which is described in detail later, consists of a preliminary diagnosis, collecting data, feedback of the data to the client, data exploration by the client group, action planning based on the data, and taking action

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Systems context• OD deals with a total system — the organization as a

whole, including its relevant environment — or with a subsystem or systems — departments or work groups — in the context of the total system.

• Parts of systems, for example, individuals, cliques, structures, norms, values, and products are not considered in isolation; the principle of interdependency, that is, that change in one part of a system affects the other parts, is fully recognized.

• Thus, OD interventions focus on the total culture and cultural processes of organizations. The focus is also on groups, since the relevant behavior of individuals in organizations and groups is generally a product of group influences rather than personality

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Improved organizational performance• The objective of OD is to improve the organization's capacity to

handle its internal and external functioning and relationships.• This would include such things as improved interpersonal and

group processes, more effective communication, enhanced ability to cope with organizational problems of all kinds, more effective decision processes, more appropriate leadership style, improved skill in dealing with destructive conflict, and higher levels of trust and cooperation among organizational members.

• These objectives stem from a value system based on an optimistic view of the nature of man — that man in a supportive environment is capable of achieving higher levels of development and accomplishment.

• Essential to organization development and effectiveness is the scientific method — inquiry, a rigorous search for causes, experimental testing of hypotheses, and review of results.

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Organizational self-renewal• The ultimate aim of OD practitioners is to "work

themselves out of a job" by leaving the client organization with a set of tools, behaviors, attitudes, and an action plan with which to monitor its own state of health and to take corrective steps toward its own renewal and development.

• This is consistent with the systems concept of feedback as a regulatory and corrective mechanism

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Understanding organizations• Weisbord presents a six-box model for understanding organization:• Purposes: The organization members are clear about the organization's

mission and purpose and goal agreements, whether people support the organization' purpose.

• Structure: How is the organization's work divided up? The question is whether there is an adequate fit between the purpose and the internal structure.

• Relationship: Between individuals, between units or departments that perform different tasks, and between the people and requirements of their jobs.

• Rewards: The consultant should diagnose the similarities between what the organization formally rewarded or punished members for.

• Leadership: Is to watch for blips among the other boxes and maintain balance among them.

• Helpful mechanism: Is a helpful organization that must attend to in order to survive which as planning, control, budgeting, and other information systems that help organization member accomplish.

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Modern development• In recent years, serious questioning has emerged about the

relevance of OD to managing change in modern organizations. • The need for "reinventing" the field has become a topic that

even some of its "founding fathers" are discussing critically.• With this call for reinvention and change, scholars have begun

to examine organizational development from an emotion-based standpoint.

• For example, deKlerk (2007) writes about how emotional trauma can negatively affect performance.

• Due to downsizing, outsourcing, mergers, restructuring, continual changes, invasions of privacy, harassment, and abuses of power, many employees experience the emotions of aggression, anxiety, apprehension, cynicism, and fear, which can lead to performance decreases.

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• deKlerk (2007) suggests that in order to heal the trauma and increase performance, O.D. practitioners must acknowledge the existence of the trauma, provide a safe place for employees to discuss their feelings, symbolize the trauma and put it into perspective, and then allow for and deal with the emotional responses.

• One method of achieving this is by having employees draw pictures of what they feel about the situation, and then having them explain their drawings with each other.

• Drawing pictures is beneficial because it allows employees to express emotions they normally would not be able to put into words. Also, drawings often prompt active participation in the activity, as everyone is required to draw a picture and then discuss its meaning.

• The use of new technologies combined with globalization has also shifted the field of organization development.

• Roland Sullivan (2005) defined Organization Development with participants at the 1st Organization Development Conference for Asia in Dubai-2005 as "Organization Development is a transformative leap to a desired vision where strategies and systems align, in the light of local culture with an innovative and authentic leadership style using the support of high tech tools.

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Improved organizational performance• The objective of OD is to improve the organization's capacity to

handle its internal and external functioning and relationships. • This would include such things as improved interpersonal and

group processes, more effective communication, enhanced ability to cope with organizational problems of all kinds, more effective decision processes, more appropriate leadership style, improved skill in dealing with destructive conflict, and higher levels of trust and cooperation among organizational members.

• These objectives stem from a value system based on an optimistic view of the nature of man — that man in a supportive environment is capable of achieving higher levels of development and accomplishment. Essential to organization development and effectiveness is the scientific method — inquiry, a rigorous search for causes, experimental testing of hypotheses, and review of results.

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Organizational self-renewal• The ultimate aim of OD practitioners is to "work

themselves out of a job" by leaving the client organization with a set of tools, behaviors, attitudes, and an action plan with which to monitor its own state of health and to take corrective steps toward its own renewal and development.

• This is consistent with the systems concept of feedback as a regulatory and corrective mechanism

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Action research• Wendell L French and Cecil Bell defined organization

development (OD) at one point as "organization improvement through action research".

• If one idea can be said to summarize OD's underlying philosophy, it would be action research as it was conceptualized by Kurt Lewin and later elaborated and expanded on by other behavioral scientists.

• Concerned with social change and, more particularly, with effective, permanent social change, Lewin believed that the motivation to change was strongly related to action: – If people are active in decisions affecting them, they are more

likely to adopt new ways. "Rational social management", he said, "proceeds in a spiral of steps, each of which is composed of a circle of planning, action, and fact-finding about the result of action".

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• Lewin's description of the process of change involves three steps:– "Unfreezing": Faced with a dilemma or

disconfirmation, the individual or group becomes aware of a need to change.

– "Changing": The situation is diagnosed and new models of behavior are explored and tested.

– "Refreezing": Application of new behavior is evaluated, and if reinforcing, adopted.

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Perspectives, Assumptions & Values • A set of values, assumptions, and beliefs constitutes an integral part of OD,

shaping the goals and methods of the field and distinguishing OD from other improvement strategies.

• Most of these beliefs were formulated early in the development of the field, and they continue to evolve as the field itself evolves.

• A belief is- a proposition about how the world works that the individual accepts as true;- a cognitive fact for the person.

• Values are also beliefs, and are defined as “Beliefs about what is a desirable or a good (e.g., free speech) and what is an undesirable or a bad (e.g., dishonesty) values”.

• Assumptions are beliefs that are regarded as- so valuable and obviously correct,- that they are taken for granted, and - rarely examined or questioned.

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• Thus, values, assumptions, and beliefs are all:

- cognitive facts or propositions, with

- values being beliefs about being good and bad, and

- assumptions being strongly held, relatively unexamined

beliefs accepted as the truth.

• Values, assumptions, and beliefs provide structure and

stability for people as they attempt to understand the world

around them.– OD values and assumptions developed from:

• research and theory by behavioral scientists, and

• from the experiences and observations of practicing managers.

• OD values tend to be humanistic, optimistic, and democratic.

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• Humanistic values proclaim the importance of the individual:

– respect the whole person,

– treat people with respect and dignity,

– assume that everyone has intrinsic worth,

– view all people as having the potential for growth and

development,

- these beliefs flow from humanistic values.

• Optimistic values post that:

– people are basically good,

– that progress is possible and desirable in human affairs, and

– that rationality, reason, and goodwill are the tools for making

progress.

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• Democratic values - the sanctity of the individual,– the right of people to be free from arbitrary misuse of power,– fair and equitable treatment for all, and– justice through the rule of law and due process.

• Evidence for the validity of these values and their supporting assumptions came from many sources:– the Hawthorne studies,– the human relations movement,– the laboratory training movement,– the clash between fascism and democracy in World War II,– increasing awareness of the dysfunctions of bureaucracies,– research on the effects of different leadership styles, and– greater understanding of individual motivation and group

dynamics.

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Chronology of Events in Management and Organisation Thought:• Values and assumptions do not spring full grown form

individuals or societies.• They are formed from the collective beliefs of an era – the

zeitgist or spirit of time. Major ingredients of the zeigist are:Taylor’s Scientific Management:

• emphasis on time and motion studies and breaking jobs into small, repetitive tasks in an attempt to find “the one best way”.

• expert engineers and supervisors designed each task and ensured it was done correctly.

• piece-rate pay systems were designed to increase motivation and to prevent “soldiering”or slacking off.

• simple, repetitive tasks minimised the skills required to do the job.• Taylor’s movement quickly swept the country and the world as the way to

organise work in early 1900s.

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• “Bureaucracy” of German Sociologist Max Weber: – Introduced bureaucracy as the best, most efficient way to

organise people– To create a well-oiled human machine called the organisation

would require:• a strong hierarchy of authority,• extensive division of labor,• impersonal rules, and• rigid procedures.

– Scientific Management as the way to organise work and bureaucracy as the way to organise people were the prevailing paradigms for organisations in 1900s.

– These approaches possessed many desirable features, but also contained serious flaws that led to unintended consequences.

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• Mary Parker Follett’s – “The Giving Orders”:– a management theorist and an astute observer of labor-management

relations, she advocated participative leadership and joint problem solving by labor and management.

– much of her career was devoted to finding ways to reduce adversarial relationship between workers and management.

• Hawthorne Studies:– conducted at the Hawthorne plant of Western Electric Company.– the research demonstrated the primacy of social factors on

productivity and morale.– people came to work as whole people; their feelings and attitudes

about the work, the work environment and the supervisor determined their performance.

– their simple, repetitive jobs left them feeling alienated and dispirited and group norms had more powerful effect on productivity than economic incentives – people were not cogs; organisations were not machine.

•

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• Chester I. Bernard – The Functions of the Executive:• Bernard views organisations as social systems that must be

effective (achieve goals) and efficient (satisfy the needs of the employees).

• his acceptance theory of authority proposed that authority derives from the willingness of subordinates to comply with directions rather than from position power.

• Affiliative Culture – Lewin, Lippitt, and White:• Demonstrated the superiority of democratic leadership compared

to authoritarian leadership and laissez-faire leadership in terms of effects on group climate and group performance.

• Democratic leadership seemed to bring out the best in the groups; while authoritarian leadership caused dependency, apathy, aggressiveness, and poor performance.

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• Group Dynamics – Kurt Lewin:• the scientific study of groups using experimental research methods was

launched by Kurt Lewin and his students in the late 1930s.

• Human Relation Movement: • the Hawthorne studies spawned the human relation movement that

was in full flower from the 1930s to the 1960s.

• the human relations movement advocated

- participative management,

- greater attention to workers’ social needs,

- training in interpersonal skills for supervisors,

and

- a general “humanising”of the workplace.

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• Laboratory Training Movement:• 1946 and 1947 witnessed the beginning of the laboratory training

movement, a direct precursor of OD.

• Lessons learned from the laboratory training are:

- improved interpersonal relations,

- increased self understanding, and

- awareness of group dynamics.• Humanistic and democratic values suffused the movement.

• Leadership functions of a group should be shared between the

leader and group members, emphasises the laboratory training,

and showed how that could be done.

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• Carl Roger’s Client-Central Therapy –• demonstrated the efficacy of nondirective psychotherapy

• which holds that individuals have within themselves the capacity to assume responsibility for their behavior and mental health when provided with,

• a supportive, caring social climate.

• Roger’s focus on effective interpersonal communications was applicable to superior – subordinate relations.

• Tavistock School introduced the concept of:• organisations as social systems, which postulates that

– organisations are comprised of a social system and a technological system and

– change in one system will produce changes in the other system.

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• Motivation and Personality By Abraham Maslow (1954)• presented a new view of human motivation.

• human motivation is arranged in a hierarchy of needs from

• a lower-level needs such as physiological and survival needs to

• higher-level needs such as esteem and self actualisation.

• theory postulated that when lower-level needs are satisfied, higher-

level needs become dominant.

• Personality and Organisation by Chris Argyris (1957)• states that there is an inherent conflict between the needs of the

organisations and the needs of mature, healthy adults.

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• Human Side of Enterprise – Douglas McGregor (1960) describes the famous Theory X and Theory Y.

• theory X assumes that:

- people are lazy, - lack ambition,- dislike responsibility, - are self-centered,- indifferent to organisation’s needs,- resist change, and - need to be led.

• theory Y assumes that:

- people have potential to develop,- to assume responsibility, and- and to pursue organisational goals if given the

chance and the social environment to do so.

the task of the management is to change organisational structures, management practices, and human resource practices to allow individual potential to be released.

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Mechanic and Organic Organisations by Burns and Stalker (1961):described two different organisation structures – mechanic and organic.in an environment of slow change, a mechanistic organisation structure

may be appropriate;in an environment of high change, an organic structure is preferred.organic structures encourage decentralised decision making authority,

open communications, and greater individual autonomy.

New Patterns of Management – Rensis Likert (1961):presented data and theory showing the overwhelming superiority of a

democratic leadership style in which the leader is:

- group oriented - goal oriented, and - shares decision making with the work group.

this leadership style is compared to an authoritarian, one-on-one leadership style.

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• Most of the significant influences from research, theory, and observations utilised by OD practitioners are captured in the above chronology.

• To summarise the intellectual of this period,• The initial enthusiasm for scientific management, bureaucracy,

and authoritarian leadership giving way to,• Increasing doubts about these organisational practices as theory

and research pointed up their limitations, dysfunctions, and negative consequences.

• Out of this zeitgist, organisation development practitioners formulated a set of values and assumptions regarding;- people,- groups, and- organisations that was humanistic, optimistic, and democratic.

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OD Values and Assumptions – Early Statements:

• OD practitioners share a set of normative goals based based on their humanitarian/democratic philosophy:

– Improvement in interpersonal competence.– A shift in values so that human factors and feelings come to be

considered legitimate.– Development of increased understanding between and within

groups in order to reduce tensions.– Development of more effective “team management”,that is, the

capacity for functional groups to work more competently.– Development of better methods of conflict resolution. Rather

than the usual bureaucratic methods which rely mainly on suppression, compromise, and unprincipled power, and more rational and open methods of conflict resolution are sought.

– Development of organic rather than mechanical systems. This is a strong reaction against the idea of organisations as mechanisms in which managers “work on”, like push buttons.

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Some of the salient differences between mechanical and organic systems:

Mechanical Systems Organic Systems

Rely on “authority-obedience relationships”.

Rely on “mutual confidence and trust.

Insist on “strict division of labor and hierarchical supervision”.

Foster “multi-group membership and responsibility”.

Encourage “centralised decision making”.

Encourage “wide sharing of responsibility and control”.

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Richard Bechard in his book described “several assumptions about the nature and functioning of organisations”held by OD practitioners:

– The basic building blocks of an organisation are groups (teams). Therefore, the basic unit of change is are groups, not individuals.

– An always relevant change goal is the reduction of inappropriate competition between parts of the organisation and the development of a more collaborative condition.

– Decision making in a healthy organisation is located where the information sources are, rather than in a particular role or level.

– Organisations, subunits of organisations, and individuals continuously manage their affairs against goals. Control are interim measurements, not the base of managerial strategy.

– One goal of healthy organisation is to develop generally open communication, mutual trust, and confidence between and across levels.

– “People support what they help to create”. People affected by a change must be allowed active participation and a sense of ownership in the planning and conduct of the change.

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Robert Tannenbaum listed these values in transition:• Away from a view of people as essentially bad toward a view

of people as basically good.• Away from avoidance of negative evaluation of individuals

toward confirming them as human beings.• Away from a view of individuals as fixed, toward seeing them

as being in process.• Away from resisting and fearing individual differences toward

accepting and utilising them.• Away from utilising an individual primarily with reference to

his or her job description toward viewing an individual as a whole person.

• Away from walling off the expression of feelings toward making possible both appropriate expression and effective use.

• Away from maskmanship and game playing toward authentic behavior.

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• Away from use of status for maintaining power and personal prestige toward use of status for organisationally relevant purposes.

• Away from distrusting people toward trusting them.

• Away from avoiding facing others with relevant data toward making appropriate confrontation.

• Away from avoidance of risk taking toward willingness to risk.

• Away from a view of process work as being unproductive effort towards seeing it as essential to effective task accomplishment.

• Away from a primary emphasis on competition toward a much greater emphasis on collaboration.

These values and assumptions may not seem profound today, but in 1950s and 1960s they presented a radical departure from the accepted beliefs and assumptions at that time.

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Beliefs such as:- trust and respect for individuals, - the legitimacy of feelings,- open communication, - decentralised decision making,- participation and contribution by all organisational members,- collaboration and cooperation, - appropriate use of power,- authentic interpersonal relations

• were seldom espoused and rarely implemented in many organisations.• Many OD practitioners held these humanistic and democratic values

with their implications for different and better way to run organisations and deal with people.

• The democratic values prompted a critique of authoritarian, autocratic, and arbitrary management practices as well as the dysfunctions of bureaucracies.

• The humanistic values prompted a search for better ways to run organisations and develop people in them.

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OD Values and Assumptions – Implications:Implications for dealing with Individuals –Two basic assumptions:

- most individual have drive toward personal growth and development if provided an environment that is both supportive and challenging.- most people desire to make, and are capable of making, a higher level of contribution to the attainment of organisation goals than most organisational environment permit.

A tremendous amount of constructive energy can be tapped if organisations realise and act on these assumptions.

The people doing the work are generally experts on how to do it – and how to do it better.

The implications of these two assumptions are straightforward:- ask, - listen, - support, - challenge,- encourage risk taking, - permit failure,- remove obstacles and barriers, - give autonomy,- give responsibility, - set high standards, - reward success.

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Implications for Dealing with Groups –

Several assumptions relate to the importance of work teams and the collaborative management of team culture.• One of the most psychologically relevant reference groups for

most people is the work group, including peers and boss. What occurs in the work group, at both formal and informal levels, greatly influences feelings of satisfaction and competence.

• Most people wish to be accepted and to interact cooperatively with at least one small reference group, and usually with more than one group.

• Most people are capable of making greater contributions to a group’s effectiveness and development.

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The implications of these assumptions are several:

Let the teams flourish because they are often the best way to get work

done and, in addition, are the best way satisfy social and emotional

needs at work.

Leaders should invest in groups –

- invest the time required for group development,

- invest in training time and money to increase group members skills,

- invest energy and intelligence in creating positive climate.

Adopt team leadership style – not one-on-one leadership style. To do

this leaders need to give important work to teams, and not

individuals.

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• Another assumption is that formal leaders cannot perform all the leadership and maintenance functions required for a group to optimise its effectiveness.

• Hence the group members should assist the leader in performing multiple roles required for group’s effectiveness.

• One implication is to train group members in team effectiveness skills such as group problem solving and decision making, conflict management, facilitation and interpersonal communication.

• Since suppressed feelings and attitudes adversely affect problem solving, personal growth, and job satisfaction, group members should be encouraged to learn to deal effectively with positive (functional) and negative (dysfunctional) feelings.

• Dealing appropriately with feelings and attitudes increases the level of interpersonal trust, support, and cooperation within the group.

• Finally it is assumed that many attitudinal and motivational problems in organisations require interactive and transactional solutions.

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Implications for Designing and Running Organisations:

• It is becoming increasingly clear that traditional hierarchical forms of organisation –- fairly steep pyramid,- emphasis on top-down directives,- grouping by specialised function,- adherence to the chain of command,- formalised cross-functional communication, and so on are obsolete in terms of meeting the demands of the market place.

• Implication is that experimenting with new organisation structures with and new forms of authority is imperative.

• There is growing awareness that “win-lose” organisational situations are dysfunctional in the long run and need to be replaced by “win-win” situations.

• Creating cooperative organisational dynamics rather than competitive ones is a primary task of the leaders.

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• Key assumptions in OD is that the needs and aspirations of human beings are the reasons for organised efforts in society.

• Suggests that it is good to have a developmental outlook and seek opportunities in which people can experience personal and professional growth.

• An optimistic, developmental set of assumptions about people is likely to reap rewards beneficial to both organisation and its members.

• It is possible to create organisations that:- on the one hand are humane, developmental, and empowering, and- on the other hand are high performing in terms of productivity, quality of outputs, and profitability.

• The implication is that the people are an organisation’s most important resource; they are the source of productivity and profits and should be treated with care.

• Much of the practice of OD is concerned with designing organisational practices to incorporate the implications of these assumptions and values.

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Concluding Comments:

• The field of OD rests on foundation of values and assumptions about people and organisations.

• These beliefs help to define what OD is and guide its implementation.

• These OD values are considered revolutionary in the 1950s but are widely accepted today.

• Values are never static; they change over time.• The rapid technological, societal, and organisational changes taking

place virtually assure that - tomorrow will bring new definitions of what is “true”and new beliefs about what is “good”,- as behavioral scientists and managers continue to develop better understanding of authority structures, organising structures, and ways to optimise human potential.

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Thank You…!!!©Ramakrishna Kongallae-mail: artist.ramakrishna@gmail.com