BA 4102 MANAGEMENT CONCEPTS AND

ORGANIZATIONAL BEHAVIOR

Unit – IV

GROUP BEHAVIOUR
GROUP DYNAMICS are the interactions and forces among group members in social situation.

Types of Groups

➢ Formal- hierarchical.These groups are formed by the organizations to carry out

specific tasks.

➢ Informal-interest groups or cliques-horizontal, vertical or random. These are the

groups formed by employees themselves.
➢ Virtual Groups- facilitated through I. T.
(a) Information Sharing
(b) Decision Making
(c ) Solving Complex Problems
➢ Psychological Group-‟we‟ feeling, sensitivity, affinity, understanding of individual
strengths and personalities, sense of belonging and loyalty

➢ Other types of Groups

1. (a)Interacting- assembly-line
(b) Co-acting- work independently
(c ) Counter-acting- union/ management
2. (a)Open-Matrix
(b) Closed- Fixed Roles
3. (a)Membership- belongs
(b)Referent-Would like to belong
4. (a)In and Out groups- Gang Wars, rivalry, competition,politics

Stages of Small Group Development

• FORMING
• STORMING
• NORMING
• PERFORMING
• ADJOURNING
Group Structure:

1) Formal leadership

2) Roles

3) Norms

4) Status

5) Size

6) Composition

Differences between Work Groups and Teams

S. No. Aspect Work Groups Teams

1. Roles& Respon. Set of behaviours Understands roles

2. Identity No identity Norms & values

3. Cohesion „me‟ feeling „we” feeling

4 Communication self-centered member-centered

5. Flexibility Rigid flexible

6. Morale Maybe Enthusiasm/pride

7. Idea generation Old ways New/creative ways

TEAM GROUP

Work Group: A group interacts primarily to share information and to make decision
to help each group member perform within his or her area of responsibility.

Work Team: A group whose individual efforts result in performance that is greater
than the sum of the individual inputs.

Difference between Groups and Teams.

Characteristics of Effective Work Teams
1. Commitment and inspiring goals
2. Role Clarity
3. Self- disclosure (incl.confrontation)
4. Openness to feedback
5. Competence
6. Creativity with constructive confrontation
7. Collaboration /Support/Trust
8. Congruence between individual and group goals
9. Supportive leadership
10. Management of power
Team Functioning
1. a)Cohesion- amongst team members

2. b)Confrontation-solving problems

3. c)Collaboration-working together

Team Empowerment
1. a)Clarity of Roles

2. b)Autonomy

3. c)Resources provn.

4. d)Accountable-goals

TEAM EFFECTIVENESS MODEL

Context Work Design

-Adequate resources -Autonomy

-Leadership and structure -Skill variety

-Climate of trust -Task identity

-Performance evaluation & -Task significance

Reward systems

TEAM EFFECTIVENESS
Composition Process

-Abilities of members -Common purpose

-Personality -Specific goals

-Allocating roles -Team efficacy

-Diversity -Conflict levels

-Size of teams -Social loafing

-Member flexibility

Organisational structure

Defined “as framework of tasks reporting & authority relationships within which as
organisation functions”.
Robbins – an organisational structure defines how job tasks are formally divided grouped &
co- ordinated.
 Classical organisation theory
Bureaucratic model: - → Formulated max weber.

Characteristics of ideal org. structure:-

Work specialization & division of labours:-

➢ Duties & responsible of all employee should be defined clearly.
➢ Area in which expected to perform duties & responsibilities should be clarified to
avoid confusion.

Division of labour:-
➢ Gives slope for employee to obtain expect in particular skill. Productivity &
efficiency.
➢ Same task gives boredom stress in employees.
➢ Divide people blue collar & white collar & gap b/w them both in org & society.

Abstract rules:-
➢ Defined rulers & regulation.
➢ Coming to office on time meeting project deadlines.
Impersonality of managers:-
Manager should take rational decisions & judgement based purely on facts.

Hierarchy:-
➢ Each member in the organisation is accountable for his actions in his superior.

Modification of bureaucratic centralization decentralization.

➢ Tall structure, flat structure, departmentalisation, centralisation. Decentralisation.

Work specialization: -Division of labour.

➢ The degree to which tasks in an organization are subdivided into separate jobs.

Departmentalization:-
➢ Basis by which jobs in an organization are grouped together engineering,
accounting personnel.

By product:-
Varity of product under a single manager

➢ By function ( HR, Marketing)

➢ By geography (North, West, South, East)
➢ By process (alloys, Hot rolling, Cold rolling, casting pressing etc.
➢ By customers (Corporate customer, Individual, overseas customers)

Chain of command:-
➢ Unbroken line of authority that extends from top to lowest level & clarifies who reports to
whom.
 Unity of command:-
➢ Should have only one superior to who he or she is directly responsible.

Span of control:-
➢ The number of subordinates a manager can efficiently & effectively direct.

Leadership

Definition: “as the ability to influence a group toward the achievement of a vision or
set of goals”. Sources of this influence may be formal based on the managerial rank in
an organisation. Leadership role simply because of position he/she hold in organisation.
Not all leaders are managers, all managers are leaders. Organisation needs strong
leadership and strong management for optimal effectiveness. Leader is a personal and
active interest in achieve goals.
Leader Manager
Leader take personal and active interest in Managers tend to play a relatively passive role
achieve goals. in accomplishing goal
Leaders have power within themselves and the Managers need power to be entrusted to them
required drive the head people and motivate by organisation to deal with people.
them to work enthusiastically towards
achieving objectives.
Leader can act confidently even, if they need to If managers are require to work alone without
work independently. assistance from people. They become tense.

Leaders interact with people frequently and in Managers limit their interaction with people to
more natural way. They inspire people the minimum extent required to carry out their
motivate them and lead them. managerial responsibility.
Leaders focus on developing a vision for the Managers concentrate on developing plans,
future. Communicating the vision to people, organisational structure, controlling deviations
integrating their efforts, helping them from plans.
overcome hurdles and developing their abilities
to realise the vision.
Leaders often arise from a group without any Managers drive their power from their position
formal appointment and outside the purview of in the organisation and formal authority that
the organisation structure. comes with the position.
Traits of effective leaders.
- Cognitive and psychological factors like intelligence ambition and aggressiveness are the traits
commonly found in leaders.

- Others believe physical characteristics like height (more than average), weight large body
structure and personal attractiveness are important.

- Leaders traits Initiative, desire to lead, integrity, self confidence, analytical ability, and
knowledge of the specific company industry and technology.

- Factors are supplemented with traits such as charisma. Power to inspire / enthuse in other people
creative and flexibility.
LEADERDHIP SKILLS:
Technical, Human, Conceptual skills.

THEORIES

➢ Traits theories
➢ Behavioural theories
I) Ohio Theory
II) Leadership Grid.
➢ Contingency approach
➢ Situational theory
➢ Leadership – Member Exchange theory
➢ Path- Goal Theory

TRAIT THEORIES OF LEADERSHIP

- Theories that consider personal qualities and characteristics that differentiate deader
from non-leaders.
- Big Five Model- it support to trait theory.
For example. Ambition energy, sociable, dominate, heredity, appearance,
personality, experience

BEHAVIOURAL THEORIES
- Theories proposing that specific behaviours differentiate leaders from leaders from
non- leader.

OHIO STATE STUDIES

Leader‟s behaviour is described by employees.
• Initiating structure
• Consideration

INITIATING STRUCTURE
It is extent to which a leader is likely to define and structure his or her role and
those of subordinates in the search for goal attainment. Assign group members to
particular tasks, expected workers to maintain definite STD of performance and
emphasizes the meeting of deadlines.
CONSIDERATION
Giving importance to human relationship in another way the leader has an
empathetic (see others problem in their point of view) attitude. Friendly with
followers.

University of Michigan Studies.

• Employee Oriented
• Production Oriented

EMPLOYEE ORIENTED:
It emphasis interpersonal relationship they look a personal interest in the need of
their employee and accepted individual difference among members.

PRODUCTION ORIENTED:
It emphasizes the technical on task aspects of the job, main concern to accomplishing
their group‟s tasks and the group members.
MANAGERIAL GRID/ LEADERSHIP GRID

CONTINGENCY THEORIES:

Author - Fiedler
The theory that effective groups depends on a proper match between a leader‟s
styles of interacting with subordinate‟s situation gives control and influence to the leader.

Leadership style:

LEAST PREFERRED CO-WORKER (LPC).

To measure whether the person is task or performance oriented.
 SITUATION:

Match leader with situation there are 3 contingency dimensions.

➢ Leader-Member Relations
➢ Task Structure
➢ Position power

LEADER- MEMBER RELATION:

It is the degree of confidence, trust and respect members have in their leader. Leader
is accepted by his subordinates. For Ex PAYROLL Manager. Respected and
employees have confident with boss / superior

TASK STRUCTURE
It is the degree to which the job assignments are procedurized (structure or
unstructured).degree of task on hand. For example. Tasks for payroll manager are
wage computation, check writing, and report filing.

POSITION POWER:
It is the degree of influence a leader has power variables such as hiring, firing,
discipline, promotions and salary increases. He is in position to decide the rewards
and incentives for his followers.

COGNITIVE RESOURCE THEORY

Leadership that states that stress unfavourably affect a situation and that intelligence
and experience can reduce the influence of stress on the leader. Due to the stress,
leadership style affect by situation.

PATH – GOAL Theory:

It states that it is the leader‟s job to assist followers in attaining their goals and to
provide the necessary direction and / or support to ensure that their goals are
compatible with the overall objectives of the group or organisation.

Clarify the path to help their followers get from where they are to the achievement of
their work goals and make the journey along the path easier by reducing road blocks.

Environment Contingency Factor

• task structure
• formal authority system
• work group
Leader Behaviour
• Directive
• Achievement oriented
• Participative
• Supportive

Outcome
• Performance
• satisfaction
Person Character
• Locus of control
• Experience
• Perceived Ability

LEADER-MEMBER EXCHANGE THEORY (LMX)

It is that supports leaders‟ creation of in-groups and out –groups; subordinates with in-group
status will have higher performance ratings, less turnover and greater job satisfaction, because of
time pressure , leaders establish special relationship with small group of their followers.
Individual‟s makeup in-groups. They are trusted, get disproportionate amount of the leader‟s
attention more likely to receive special privileges.

Charismatic Leadership

- It is states that followers make attribution of heroic/ extra ordinary leadership

abilities when they observe certain behaviour.
KEY Characteristics

Vision – long term strategy

Personal Risk- incurs high cost and engages self-sacrifice

Sensitivity to follow needs- Ability and response to their needs and feeling.

Unconventional behaviour-engage in behaviour perceived as novel (new counter to norms

against)

TRANSACTIONAL LEADERS
Leaders who guide or motivate their followers in the direction of established goals by
clarifying role and taks requirement.

Ohio, Fiedler, Path-Goal theory are transactional leadership type.

TRANSFORMATIONAL LEADERS:

A leader who inspire followers to transcend their own self-interest and who are capable of
having a profound and extraordinary affect on followers is called transformational leaders.
TRANSACTIONAL LEADERS TRANSFORMATIONAL LEADERS

Management by exception (active) Charisma

Leader constantly monitors organdisational Leaders have a vision which they are easily
activities. If there is any deviation from the communicate with others. They establish a
established rules and stds take necessary steps to mission for their followers and make them take
bring condition back to normal pride in working towards that mission. They
gain respect and trust of their follower

Management by exception (positive) Inspiration

Leaders involve in day to day operations only if They inspire their followers by communicating
the required std a not is met. to them the high expectations of the organisation
has often and assume them of their capacity to
met those expectations. They are good at
expressing complicating goals and objectives

Laissez-faire Intellectual Stimulation

Leader tries to escape responsibilities and avoids They appreciate and encourage rationality and
making decision. careful problem solving among their followers.

Preference for contingent rewards:

Leaders believe that people can be motivated by

recognizing their accomplishments and
designing rewards appropriate for their level of
efforts and performance.

POWER AND POLITICS

Power

• A capacity that “A” has to influence the behaviour of “B” so that B acts in
accordance with A‟s Wishes.

Dependency:

“B”s relationship to “A” when „A‟ possesses something that B

requires. Bases of Power:

1. Formal power 2. Informal Power

FORMAL POWER

• Based on individual‟s position in an organization. It can come from formal authority.

➢ Coercive Power

Base that is dependent on fear. E.g. „A‟ can dismiss, suspend

 ➢ Reward Power

Compliance achieved based on the ability to distribute rewards that others view as valuable.

E.g. Promotion bonuses, pay rates raises.

Formal Power

• LEGITIMATE POWER
The power a person receive as a result of his/her position in the formal hierarchy of an
organization.It represent the formal authority to control and use organisational resources.

E.g. Production Manager can control the wastage for the material from the production

Personal Power

Power comes from an individual‟s unique characteristics.

EXPERT POWER

Influence based on special skills and knowledge.

E.g. Accountants, Economists

REFERENT POWER

Influence based on possession by an individual of desirable resources or personal traits.

E.g. Brand Ambassador. They have a power to influence your choice of chocolates and credit
cards. Sachin

WHICH BASES OF POWER MORE EFFECTIVE

Personal sources of power.

Expert and reference power are positively related to employees‟ satisfaction with
supervision, their organisation commitment and their performance, where an reward and
legitimate power seem to be unrelated to these outcomes.

THE KEY OF POWER-DEPENDENCY FACTOR

• IMPORTANCE

To create dependency, the things you control must be perceived as important.

• SCARCITY

Opposite-abundance. This not create power / dependency. When things come

scarcity it create dependency and power.

• NON-SUBSTITUTABILITY.

When particular resource have no proper substitute then that person control that resource
will have power over those who require that resource.
POWER Positive Negative

1. Positive motivation primitive in nature

2. Social power lose- win situation

Loyalty &commitments negative consequence

EXCHANGE THEORY AND CONTROL

Motivation is outcome, when individual tries to bring about parity between the cost he
incurs and the reward he gets.

1. Person possess expert /reference power that position determine and control profit
and loss of an another person

2. Expert power- compliance with expert‟s wishes lead to positive outcomes

3. Legitimate power- incurs profit by confirming to accepted std and

procedures. Non compliance with legitimate power

Lead to a loss in form of punishment or non-acceptance by colleagues.

POWER STRUCTURE

• High ranking persons have more power.

Power relationship may be direct or indirect

POWER PROCESS- ELEMENTS

❖ Dependency

❖ Balancing Power relationship

❖ Reaction to imbalance

❖ Power ploys

Note: Dependency we already discussed

earlier. Nature of powerr in organization:

Some individuals always seek power to influence benefits in favors for him. Some give more
important and some not give important to get power. Individual

Difference too.

POWER BALANCE
If Degree of dependency is equal to degree of power exercise.

Dependency = power exercise.

If the above is not equal that is called power imbalance.

Dependency = power exercise.

 ORGANISATIONAL CULTURE AND CLIMATE

CULTURE:

“A system of shared meaning held by members that distinguishes the organisation

from other organisations”. (Set of values and key characteristics)
Organisational culture is the set of assumptions, beliefs, values, norms that are
shared by an organisation‟s members.

Organisational Assumptions, values, norms which are known as abstract elements

of the culture. Externally oriented characteristics like products, dresses, buildings
etch, are called material Element.

ORGANISATIONAL CULTURE:
A set of attributes specific to an organisation that may be inducing from the way the
organisation deals with its members. It is current situation in an organisation and
linkage among individuals, work groups and work performance.

CHARACTERISTICS

Innovation
Degree to which employees are encouraged to be innovative and task risk.

Attention to details
Degree to which employee are expected to exhibit to precision analysis and attention to detail.

Outcome orientation:
Degree to which management focuses on results/ outcomes rather than on the techniques
and processes used to achieve those outcomes

People orientation:

The Degree to which management decisions take into consideration the effect of outcomes on
people within the organisation.

Team Orientation:
The degree to which work activities are organised around teams rather than individuals.

Aggressiveness:
The Degree to which peoples are aggressive and competitive rather than easygoing.

Stability:
The degrees to which organisational activities are emphasize maintaining the status quo in
contrast to growth.

Based on these characteristics, organisation culture should be identified

CULTURE CLIMATE

Based on anthropology and sociology Study of climate base on psychology.

Culture is a means through which members learn Climate does not deal with values and norms it is
and communicate what is accepted and concerned with the current atmosphere in the
unaccepted in an organisation on the light of its organization
values and norms

Culture is more difficult to change in short period Climate is subject to manipulation by managerial
of time actions even in short-term.

CULTURE IS A DESCRIPTIVE TERM

Organisational culture is concerned with how employees perceive the characteristics of
organisation. It is a descriptive term, it is important because differentiate the concept of job
satisfaction.

Job satisfaction seeks to measure of affective response to work environment. It concern

with how employees feel about the organisation‟s expectation, rewards, policies and etc...

DOES ORGANISATION HAVE UNIFORM CULTURE?

Many organisation have dominant culture and many number of sub culture.

DOMINANT CULTURE:
It expresses the core values that are shared by a majority of the organisation‟s members.
Macro view of culture that gives an organisation its distinct personality.

SUB-CULTURE
This is mini culture within an organisation, typically defined by department designations
and geographical separation.It includes core values of dominant culture plus additional
values unique to members or the concerned department.
STRONG Vs WEAK CULTURE
Strong culture impact on employee behaviour and or more directly related to reduced
turnover. Primary and dominant values that are accepted throughout the organisation.

It influence on the behaviour of its members because the high degree of sharedness and
intensity creates an internal climate of high behavioural control. Builds cohesiveness loyalty
and commitment less opportunity to leave organisation.

CULTURE Vs FORMALIZATION
Cultures increase behavioural consistency. Strong culture can act as a substitute for
formalization. Formalization refers to the degree to which the organisations are
standardized. Both are two different roads but common designation

Strong organisational culture less management need to concern rate on rules and regulations
to guide employee‟s behaviours

ORGANISATIONAL CULTURE Vs NATIONAL CULTURE:

National culture is greater impact on employees than organisational culture .National
culture strongly shaped this company‟s organisational culture.

WHAT DOES CULTURE DO? (Or)FUNCTIONS OF CULTURE IN

ORGANISATION:
Boundary defining roles: it relates distinction between one organisations from another.
Represent a sense of identity for organisation culture: culture facilitate the generation of
commitment of something larger than one‟s self-interest.

It enhance the stability of social system: culture is the social glue that helps the organisation
together by providing appropriate stds for what employees should say and do. Serve as
sense-making and control mechanism that guides and shapes attitude and behaviour of
employees.

For example: Disney theme park- attractive, clean wholesome looking with smile face.
Image of Disney Strong culture support by formal rules and regulations that Disney theme
park employees will act in uniform and predictable way.

CULTURE AS A LIABILITY:
Culture should match with environment. In many organisations with strong culture practice
that led to previous success can lead to failure when those practices no longer match up
well with environment needs .consistency of behaviour is an asset to an organisation.

FACTORS INFLUENCE PERFORMANCE AND SATISFACTION OR

HOW ORGANISATION CULTURE INFLUENCE PERFORMANCE AND

SATISFACTION?

Environment, Gender, Values of individual, rules and regulations of organisation,

timing, level of respect to employees, personality of individuals. These factors also
can influence performance and job satisfaction.
CREATING AND SUSTAINING CULTURE:
Origin of a culture: Organisation current customs traditional and formal way of doing things.

Characteristics of founder: personality aggressive, competitive, highly discipline traits,

personality, values, attitudes, past work experience, good bad experience from his own life,
family culture and customs, learning‟s from varies personalities and situations.

HOW TO KEEP A CULTURE ACTIVE? OR

PROCESS OF CREATION OF ORGANISATIONAL CULTURE

Establishing Values:
Define values- value is define as what is right and what is wrong what is desirable and what is
undesirable and so on.

It depends upon the founders and other key personnel‟s values.

Bajaj auto limited is an example. He is Gandhi ideology. More opportunity in business he

selected trading in auto parts. Expect liquor and mill cloth.

Values also determine how organisational activities will be carried out.

CREATING VISION:
Vision represents imagination of future event and prepares the organisation for the same.
Visionary companies hold distinct set of values. Vision derived from values. A good vision
helps several ways to organisational members.
It inspires and exhilarates them. It helps in the creation of a common identity and a shared
sense of purpose. It creates competitiveness originality uniqueness.

It fosters risk-taking and experimentation. It fosters long term thinking.

Operational sing values & vision:-

These are not put into action. For putting values & vision in action, the organisation can
unfertile full activities.

Organisation prepares a written statement containing its value & vision & communicates
these two organisation members land books.

Take care should be takes while selecting an employees, that their values match

organisational values. Reward system put enough provisions in the reward system.

Socialization of employees:-
It means process that adopts employees to the organisation cultures. For that 5 month
training programme where they learn way of doing everything. From how to speak to
superiors to proper grooming & dress. Company considered it is entered for transforming
young employee‟s fresh out of school into dedicated corporate warriors.
Socialization process:-

Pre-Arrival:-
Before join the organisation he understands what is organisation from kerning friend &
family. At the recruitment stage most of the org give job previews which help the
prospective employees to learn more about the job & the organisation.

Encounter:-
Expectation true with realities he adopt org culture quickly.

➔ Expectation & realities is different →

Expectation abt the person her boss, co-workers.

The new employee must undergo socialization that will detach him from her previous
assumptions & replace them with another set that org deems desirable.

A new member become totally disillusioned with the actualities (disappointed) of her job.
Proper selection should significantly reduce the probability of latter encounter or occurrence.

Metamorphosis stage:-
New employee adjusts to his/her work groups values & norms.
Methods of socialization with organisation

Or
How employees learn culture.

Stories, rituals, material symbols, language.

Stories:-
Learning org norms & values through stories include circulation of informal & oral
narration of events abt the organisation.

Rituals:-
Rituals repetitive sequence of activities that express & re-in force the key values of the
organisation. What goal is most important who is important?

Corporation rituals.
May – Kay cosmetics annual award meeting. Miss American pageants wear.

This show act as a motivator by publicly recognising outstanding sales performance.

In convey to sales persons that reaching their quote is important & that through hard work &
encouragement they too can achieve success.

Material symbols:-
Various materials symbols used by org convey specific means high status people can be
distribution the bases of various facilities provided to him equality.
Language:-
Many organisations & units within organisation use language as a way to identify members
of a culture or sub culture by learning these language members at least to their acceptance
of the culture & in so doing help to preserve it.

It acts as common denominator that unties members of an organisational culture.

Changing the org culture:-

Predict the current culture set unique goals.
Recruit personnel with previous experience so that they are able to interact
well.
Make changes from top to bottom so that consistent message is delivered.
Include employees in this process of change when making changes in rules
& policies.

Stay the course of being persistent.

ORGANISATIONAL CHANGES (Making things different).

Change refers to alternation in the total work environment. People should adopt
themselves to the changing situations. i.e. the change towards the growing trend.

Factors:

❖ Internal changes (changes in managerial personal)

❖ External changes. (deficiency in existing organisation)

CAUSES OF CHANGES OR FORCES FOR CHANGES:

- Stimulates changes in organisation.

Work Force
The educational level of work force seems to be cause for organisational changes. Human
resource policy and practices must be changed as to concentrate in an effective work force.
Organisation spends a lot of money in development skills of the employees.

Technology:
It is changing jobs and organisation speed /fast technology change.
Economic Shocks:
Boom, recession these two factors influence financial decision, investment decisions,
dividend decision, capital structure.

Competition:
It is changing capable of new product development rapidly and getting them to market
quickly.
Social trend
We used post cards to communicate to some people but now we communicate through
internet chat room and mobiles.

Baby boomers – future generation adjust organisation product and marketing strategy to be
sensitive to changing social trends.

Chain Effect of Change:

Change touches a sequence of related and supporting changes. It is known as Domino Effect.
For example: organisation is not able to face competition in the market because of old
techniques of production and competitors. New technique only alternative is to only
change. If Organisation acquiring new technology change job content, it completely the
recruitment new employee or training given to existing employee. Environment constrain –
job structure change, internal relationship change.

Reactive and Proactive changes:

Reactive change is undertaken when it is pressed by some factors. Either internal or
external to the organisation most of organisation believe in traditional pattern of working
often go for reactive changes. Organisation introduces certain methods or systems when
they are forced for that. For example: population control devices they did when they are
forced by government.

Proactive change is brought out of the likely behaviour of the forces having impact on the
organisation. Organisation known as prospectors which constantly interact with their
environment to identify new opportunity and threats.

Regularly basis changes in order to avoid developing inertia of inflexible.

Planned Changes
- Planned changes are change activities that are intentional and goal oriented.

- Planned change aims to prepare the total organisation or a major portion of it to adapt to
significant changes in the organisation‟s goals and direction.
- Implementation of a structural innovation a new policy or goal or a change in operating
philosophy climate or style.
First order change: said to be continuous that there will be no fundamental shift in the
assumptions regarding the improvement to be made in the functioning of the
organisation.(moderate changes/ adjustments. It can easily reversible)

Second order change/ fundamental / quantum.

It is said to be a discontinuous one that the assumptions are to be reframed by the
organisation.(completely different nature from old state )

RESISTANCE to CHANGE:
Whenever an idea is proposed, i. e to make some changes in the organisation, there will be
resistance to adapt those changes. When there is resistance, then the merits and demerits of
that idea will be discussed and it is good for organisation. The resistance may fall under 4
types. They are

• Overt (explicit )

• Implicit (covert)

• Immediate

• Deferred

Explicit and immediate resistance that occurs after implementation of a certain changes
initiative is rather easier to manage than implicit or deferred resistance.

Implicit and deferred are more complicated. When resistance is not open, the management
does not even have inkling of the resistance of its actions by employees.
CAUSES OF RESISTANCE TO CHANGE:
• Individual resistance

• Organisational resistance

INDIVIDUAL RESISTANCE
It is related to human characteristics. They are

❖ Habit. The habits developed by an individual are difficult to change.

❖ Security. Individual resist change if ti is likely to decrease their income or sources of

earning.

❖ Economic factors. People tend to resist change that threatens their safety and security.

❖ Fear of the unknown. People fear the unknown and uncertainty associated with it
and hence resists change.

❖ Selective information processing. Individuals process information selectively to

make it compatible with their perceptions.
ORGANISATIONAL RESISTANCE:
❖ Limited focus of change.

❖ Group inertia

❖ Threat to expertise

❖ Threat to established power relationship

❖ Threat to established resource allocations.

HOW TO OVERCOME RESISTANCE TO CHANGE?

❖ Education and communication. Employees should be educated on the logic of
changes by explaining the full facts and all doubts must be cleared in order to
reduce the resistance.

❖ Participation. It becomes difficult for the individuals to resist a change decision in

which they take active participation.

❖ Facilitation and support. Change agents can offer a range of supportive efforts like
counselling, training, paid leave, etc.

❖ Use of group force. Group can exert more pressure on attitude, values and
behaviour. By identifying strong cohesive groups and making them involve and
participate in the decision making process, the resistance is reduced.
❖ Leadership for change. A strong leader /manager can use personal reasons for
change without resistance. He brings a climate for psychological support from the
subordinates.

❖ Negotiation. A few powerful individual can be offered a specific reward package

and negotiated.

❖ Manipulation. Twisting information, creation of false rumours, with-holding

undesirable information are some of the tactics of manipulation to decrease the
intensity of resistance to change.

❖ Coercion. This is the application of force or direct threats of transfers, loss of

promotions, negative performance evaluation. Here the change agents‟ credibility
will be zero.

APPROACHES:
LEWIN‟s Three steps Model:
Unfreezing:
Employees are educated about external and internal factors that make change important.
Movement of changes:
Employees convinced on prepared for change, the actual change process begins doing a
way of practices and adopting new methods. Job duties are redefined.

Refreezing:
It is an implemented stage. Reforming changes so that organisation does not revert to old
state of things. New skills are adopted with the help of training and management ask to
demonstrate new skills like Role play.

ACTION RESEARCH MODEL

According to Robbins, action research is “a change process based on the systematic
collection of data and then selection of a change action based on what the analyzed data
indicate” .

Action research follows a scientific methodology for managing changes. There are 5 steps.

❖ Diagnosis- In this step, change agents attempts determine the underlying causes of
an organisation‟s problems.

❖ Analysis. Change agent analysis the information collected in the diagnostic stage.

❖ Feedback. Change agent shares his observations and conclusions from diagnosis
and analysis information.

❖ Action. Employees and change agents work together to implement the measures
that they consider solutions to the organisation‟s problems.

❖ Evaluation. The change agents evaluates the effectiveness of the actions taken by
measuring the outcomes of those actions.
 ORGANISATIONAL DEVELOPMENT

OD is a unique organisational improvement strategy.

Objective- is to improve performance of individuals and groups in organisations. It deals

with “people problem” such as poor morale, low productivity, poor quality, interpersonal
conflict, intergroup conflict, poor team performance, poor customer relations, poor designed
task etc.

Definition
„A system wide application of behavioural science knowledge to the planned development
and reinforcement of organisational strategy, structure, and processes of improving an
organisation‟s effectiveness”.

Meaning for definition

OD is a system of planned change. OD takes a holistic or system wide approach to change.
OD targets organisational processes, rather than content. OD is problem oriented. OD
focuses on relationship, human, social as well as structure.

Techniques of OD
It attempts to improve the fit between individual and the organisation and its environment
and among the different organisation components like strategy structure and processes.

Participants not give importance to power, control, and conflict. They give importance to
collaboration, confrontation, participation.

Sensitivity training
- It is also called T-group training

- Trainer is called facilitators.

- To sensitize people to the perceptions and behaviour related aspects of themselves and others.

- Unstructured and no proper agenda.

- give opportunity to express their opinion, belief, ideas.

- Facilitator take notes related to expression, reactions of participant during interaction.

- provide feedback on their behaviour.

It helps to improve listening skills, learn to talk, openly and accept individual differences.
It reduces interpersonal conflicts, and improves organisational productivity and efficiency,
interpersonal and leadership skills.

Survey Feedback
Use of questionnaires to identify discrepancies among member‟s perceptions, discussion
follows, and remedies re suggested. Identity the area that need change.
Process consultation intervention:
Reason for ineffectiveness is dysfunctional interpersonal conflict.

It specifies to improve a particular process of the organisation. It includes flow of work,

flow of communication, roles and responsibility, group problem solving, decision making,
co-operation, competition among groups. Here they set agenda, present feedback on
observation and give suggestions.

Team Interventions:
- High interaction among team members to increase trust and openness. To improve
the performance of work team. It covers 4 substantive areas.

1. Problem Diagnosis

2. Task accomplishment

3. Maintaining team relationship

4. Improving team and organisation process

Activities consider that goal setting, development of interpersonal relations among the
members, role analysis, to clarify each member‟s, roles and responsibility and team process
analysis.

Intergroup development
Again same reason for ineffectiveness is dysfunctional interpersonal conflict. Demerits of
this training program are stereotype. (Take a sample for group performance)

Appreciative inquiry: AI
Problem centred

Identify the unique qualities and special strengths of an organisation which can be build to
improve performance.

AI agrees that problem solving approaches always ask people to look backward at yesterday.

Four steps

Discover:
Idea is to find at what people think are the strength of the organisation.

Dreaming
From discover stage, used to speculate on possible future for the organisation
Design:
Based on dream, participants focus on finding a common vision of how the organisation will
look and agree on its unique qualities.

Destiny
Participants discuss how the organisation is going to fulfil its dream. It includes the writing of
action plans and development of implementation strategies.